[Congressional Record (Bound Edition), Volume 147 (2001), Part 7]
[House]
[Pages 8850-9001]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    NO CHILD LEFT BEHIND ACT OF 2001

  The SPEAKER pro tempore. Pursuant to House Resolution 143 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the further consideration of the bill, 
H.R. 1.

                              {time}  1048


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the further consideration of 
the bill (H.R. 1) to close the achievement gap with accountability, 
flexibility, and choice, so that no child is left behind, with Mr. 
Hastings of Washington in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. When the Committee of the Whole House rose on Thursday, 
May 17, 2001, 1 hour and 46 minutes remained in general debate.
  The gentleman from Ohio (Mr. Boehner) has 55 minutes remaining and 
the gentleman from California (Mr. George Miller) has 51 minutes 
remaining.
  The Chair recognizes the gentleman from Ohio (Mr. Boehner).
  Mr. BOEHNER. Mr. Chairman, I am happy to yield 3 minutes to the 
gentleman from Georgia (Mr. Isakson).
  Mr. ISAKSON. Mr. Chairman, I thank the gentleman from Ohio for 
yielding me this time. I am delighted to rise today in support of the 
number one campaign issue of President George Bush, the number one 
focus of the House Committee on Education and the Workforce, and a bill 
to which any number of Members of this House have contributed 
tremendous time and effort in the interest of improving the education 
of all America's children, but in particular our most disadvantaged.
  I want to particularly thank the gentleman from Ohio (Chairman 
Boehner) for his tireless work over the last 4 months and the gentleman 
from California (Mr. George Miller), ranking member for his tireless 
effort as well.
  The results of the working group and the House Committee on Education 
and the Workforce is a bipartisan bill that ensures this country has 
accountability in the expenditure of title I funds, I might add for the 
first time.
  It ensures more flexibility than has ever been allowed with Federal 
funds to every single one of the 6,000 public school systems in the 
United States of America.
  Most importantly of all, it informs parents and children on an 
individual basis of their progress, how their schools are doing, and it 
provides work and money to allow schools that are failing to come up in 
their performance and ultimately to meet the success that schools that 
are succeeding are in fact doing.
  I want to particularly address myself to the accountability portion 
this morning, which in later amendments will receive a good certain 
amount of debate.
  Since the inception of title I, there has not been a mechanism for 
accountability of the progress of America's most disadvantaged 
students. For the benefit of this Chamber, it is important to 
understand that title I students are America's poorest students, those 
on free and reduced lunch, those who most likely have come from an 
environment that is less than conducive to learning, and those, that 
after they enter the public school system, more often than other 
students, that will find themselves dropping out before they ever get a 
high school diploma.
  The important part of the President's initiative is as follows: First 
we will have an early reading first program that ensures that children 
will learn to read and comprehend to the third grade level by the time 
they reach that level. Second, it ensures that, in reading and in 
arithmetic, children will be tested annually by the local system and by 
the State on a test approved by the State to ensure that they are 
progressing at normal levels.
  In addition, there is a $675 million increase to a total of $975 
million to ensure that reading instruction is the very first and most 
important and paramount instruction that every child gets.
  There are options in this bill, options for the children for the 
first time and their parents. If a title I child attends a public 
school that is ranked as failing, then where consistent with State law, 
that child will have the opportunity to transfer to a public school 
that is succeeding. For the first time, title I funds will be used to 
allow transportation of that student to ensure their biggest problem, 
which is mobility, is overcome; and they can attend the school that is 
public that is best performing to meet their needs.
  In addition, this program focuses on flexibility. Historically, for 
years, flexibility has been something local systems have not had. As 
this debate goes on, we will learn local systems will now have up to 50 
percent of their own flexibility, flexibility at their own volition.
  The CHAIRMAN. Without objection, the gentleman from Michigan (Mr. 
Kildee) will control the time on the Democrat side.
  There was no objection.
  Mr. KILDEE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, today's consideration of H.R. 1 marks the end of many 
busy and work-filled nights and weekends over the past 4 months. I 
strongly believe that this bill enacts meaningful bipartisan education 
reform by striking the right balance. Clearly from the final resolution 
of issues in the reported bill, we all gave some, and some probably 
feel they gave too much. But the result is a bipartisan bill.
  Several provisions in the bill are especially worthy of mention. With 
regard to title I, I am pleased that the amendment protects and 
preserves

[[Page 8851]]

many of the core advances that the last reauthorization of ESEA in 1994 
instituted, and maintains our existing requirements to develop and 
implement challenging standards and aligned assessments.
  Preserved are title I's targeting of resources to high-poverty school 
districts and schools. Also maintained are vital national priorities 
such as the 21st Century Community Learning Centers and the Civic and 
International Education Programs which are key priorities of mine.
  Most importantly, I believe the strong accountability requirements we 
have added to ESEA greatly improve the bill. These include a 
requirement to ensure that all children reach a proficient level of 
performance. Increased teacher quality requirements and a focus on 
turning around failing schools through the investment of additional 
help and resources are indeed critical.
  In a time when we are in an increasingly competitive world, we can no 
longer tolerate low-performing schools that place the education of our 
children at risk. Very simply, this means providing additional 
resources and intervention to help students in those low-performing 
schools reach high standards. If schools are still failing after 
substantive intervention, then consequences must indeed exist.
  Fortunately, this bill does not include divisive issues that would 
distract us from our efforts to gain a bipartisan consensus. H.R. 1, as 
introduced, did contain many of these provisions including private 
school vouchers, Straight A's, and cessation of educational services. 
The inclusion of these provisions could undo the careful bipartisan 
compromise that this bill represents.
  I do not question the motivation of Members who have sought or will 
seek to offer and support these issues, but I am positive that the 
passage of such amendments will jeopardize bipartisan support of this 
bill. I want to thank the gentleman from California (Mr. George 
Miller), my ranking member, for his leadership and many hours of hard 
work on what is a major piece of legislation.
  I also want to thank the gentleman from Ohio (Chairman Boehner), he 
did yeoman's service; and the gentlewoman from Hawaii (Mrs. Mink); the 
gentleman from Indiana (Mr. Roemer); the gentleman from Delaware (Mr. 
Castle); the gentleman from Georgia (Mr. Isakson); and the gentleman 
from California (Mr. McKeon) for their hard work on this bill. They and 
their staffs, along with Sandy Kress from the White House, deserve a 
tremendous amount of credit for this truly bipartisan bill.
  I am proud of this bill. I am pleased with having worked with those 
on both sides of the aisle. I think all of us share that pride, and the 
children of this country will be better for it.
  Mr. Chairman, I reserve the balance of my time.
  Mr. BOEHNER. Mr. Chairman, I am happy to yield 4 minutes to the 
gentleman from California (Mr. McKeon), the chairman of the 
Subcommittee on 21st Century Competitiveness of the Committee on 
Education and the Workforce.
  Mr. McKEON. Mr. Chairman, I rise in strong support of H.R. 1, the 
President's number one priority, the Leave No Child Behind Act, because 
we cannot let this opportunity pass us by.
  This bill was a long time coming. We started the reauthorization of 
the Elementary and Secondary Education Act in the last Congress under 
the previous administration. After 2 years of debate and several pieces 
of legislation, we were unable to put a package together.
  So today, under the leadership of President Bush, the gentleman from 
Ohio (Chairman Boehner); the gentleman from California (Mr. George 
Miller), ranking member; the gentleman from Delaware (Mr. Castle), the 
subcommittee chairman; the gentleman from Michigan (Mr. Kildee), the 
ranking member; and several other members of the Committee on Education 
and the Workforce, we bring H.R. 1 to the floor to begin the process of 
instituting historic changes to our schools and new opportunities for 
our Nation's children.
  Throughout the legislation, H.R. 1 maintains the four pillars of 
President Bush's education reform plan: accountability, flexibility and 
local control, research-based reform, and expanded parental options.
  Specifically, I would like to talk about two issues which fall under 
my jurisdiction as chairman of the Subcommittee on 21st Century 
Competitiveness, teacher training, and education technology.
  First, the teacher title builds upon legislation that I, along with 
the gentleman from California (Mr. George Miller), current ranking 
member, authored in the last Congress, the Teacher Empowerment Act. 
This title provides school districts with the flexibility to decide 
whether to spend funds on hiring new teachers or improving the skills 
of the teachers already in the classroom.
  In my home State of California, they have already reduced class sizes 
in the early grades, which is good news. The bad news is that, as a 
result, there are over 35,000 uncertified teachers now serving in the 
classroom.

                              {time}  1100

  Under H.R. 1, we leave it up to the local school districts to decide 
what their needs are, while at the same time, calling on them to work 
toward ensuring that there is a fully qualified teaching force in our 
classrooms.
  Second, in regards to technology, the bill consolidates a number of 
technology programs into a single stream of funding to our local school 
districts. This is another important element of expanded local control 
and flexibility.
  Further, we call on recipients to work to fully integrate technology 
into the curriculum by increasing access to the highest quality 
teachers and courses possible, regardless of where in the State the 
students live.
  One of my local school districts is already doing this. The Los 
Angeles County Office of Education has instituted the NCITE program, 
which stands for National Center for the Improvement of Tools for 
Educators, California. NCITE is a Web-based learning environment which 
helps children meet or exceed grade level standards in reading and 
mathematics. It also assists teachers in the use of research-based 
assessments, media resources and technology tools. We need to encourage 
other communities to use these type of tools to educate their children. 
I believe H.R. 1 does just that.
  I wish I had more time to talk about the many other provisions in 
this bill that will make a real difference in our education system and 
the work that has gone into making this happen.
  But in closing, I would like to say to all of my colleagues that this 
bill gives us an opportunity; an opportunity to support our President, 
an opportunity to show bipartisanship, and, most importantly, an 
opportunity to improve the lives of our Nation's schoolchildren.
  Mr. KILDEE. Mr. Chairman, I yield 4 minutes to the gentleman from 
Indiana (Mr. Roemer), a member of the core group that helped put 
together this bill.
  Mr. ROEMER. Mr. Chairman, I thank my good friend, the gentleman from 
Michigan, for yielding me this time.
  I want to start off by saying that there are many slogans, many 
mantras, many shibboleths that many people use to try to describe their 
concern for our children and trying to improve our public schools in 
this Nation. A number of us on both sides of the aisle have come 
together in a bipartisan way to put a bill together; that the gentleman 
from Ohio (Mr. Boehner), the gentleman from California (Mr. George 
Miller), the gentleman from Michigan (Mr. Kildee), the gentlewoman from 
Hawaii (Mrs. Mink), myself, the gentleman from Georgia (Mr. Isakson), 
the gentleman from Delaware (Mr. Castle), the gentleman from California 
(Mr. McKeon), and others have fragilely put together a delicate balance 
that puts together new ideas, new reforms, new vision to help our 
children get a better education.
  Those core ideas revolve around three concepts: One is 
accountability;

[[Page 8852]]

that we cannot continue to do things the same old way in this country 
and expect great vast new improvements from our teachers and our 
children and in their performances together. We must attach these 
requirements to new ideas and new accountability, and that means, yes, 
some standards and some tests.
  Now, those tests should be devised by our local schools and our 
States, but making sure we do not socially promote; making sure that 
children are learning from one grade to the next and that a degree 
means something when they get out of high school. These are important 
standards.
  Second, flexibility, that local schools get the dollars and they 
decide how the dollars are spent. In this bill, H.R. 1, the base bill, 
we send the dollars directly to the classroom, not to a governor, not 
to a bureaucracy, not to administration, but to the classroom.
  Now, we are going to have a straight A's proposal that wants to 
divert the dollars to the governors. We will argue adamantly that those 
dollars should go to the teachers and the classrooms and the kids.
  The third component of this is resources. We have doubled the funding 
for title I, for the poorest children in this Nation to get good access 
to a good solid education. These resources and investments are 
important because some of these children will not pass tests, so we 
need to remediate those children with after-school programs, summer-
school programs and, yes, with tutoring.
  Accountability, flexibility, resources for remediation, all good 
ideas coming together to support a bill that the President of the 
United States has encouraged bipartisanship on; that he has encouraged 
that we work together in a civil manner, where Democrats and 
Republicans can reach across the aisle, as we have done with this core 
group, to bring this bill to the floor.
  I would hope accountability, flexibility, new resources, new 
investments for remediation and tutoring will bring together bipartisan 
support on this floor to truly bring ideas together, to give our 
children a better chance, to get a top-notch, first-rate education in 
our public schools in this country.
  I encourage this body to look at these amendments on testing and not 
support the Hoekstra-Frank amendment; to look at the amendment, the 
DeMint amendment on straight A's, that would take money to the 
governors and bureaucracy at the State level, and let us keep the way 
we deliver the money to the kids and the classrooms. I urge bipartisan 
support for this bill.
  The CHAIRMAN. Without objection, the gentleman from Georgia (Mr. 
Isakson) will control time on the majority side.
  There was no objection.
  Mr. ISAKSON. Mr. Chairman, I am pleased to yield 2 minutes to the 
gentleman from North Carolina (Mr. Ballenger), a distinguished member 
of the House Committee on Education and the Workforce.
  Mr. BALLENGER. Mr. Chairman, I thank the gentleman for yielding me 
this time, and I would also like to thank the gentleman from Ohio (Mr. 
Boehner) and the gentleman from California (Mr. George Miller) for all 
their hard work. Their leadership and willingness to work in 
cooperation is to be commended.
  When I look at H.R. 1, I see a bill which will truly reform the way 
Federal dollars are spent on education. This legislation puts the 
decision-making in the hands of local teachers and parents, not 
Washington bureaucrats.
  Often, we in Congress let the perfect be the enemy of the good. Does 
this bill have everything we conservatives want? No. Does this bill 
have everything liberals want? No. Does H.R. 1 have concrete reforms 
which will give States and local schools the resources they need to 
better educate our youth? Absolutely.
  H.R. 1 is the President's plan. It allows for local flexibility with 
greater accountability. It also provides a safety valve for children 
trapped in failing schools by providing immediate public school choice. 
We should also note that public school choice would be the option after 
just 1 year in a failing school and not 3 years, as originally 
proposed.
  Now, I know many of my colleagues on this side of the aisle believe 
H.R. 1 does not live up to the President's plan. I understand that 
private school choice is an issue which is a sticking point, and I also 
support private school choice. However, I ask that we look at the 
reforms this bill does provide and not what it does not. Do not throw 
the baby out with the bathwater.
  H.R. 1 allows public school choice. It allows children in failing 
schools to obtain tutoring by private or religiously-affiliated 
educators. It allows local schools to transfer up to 50 percent of 
their Federal funding to programs that they believe are best for their 
needs. These are major reforms which cannot be overlooked. These are 
the most sweeping changes in the Elementary and Secondary Education Act 
since its enactment, and we cannot forget this.
  Also, just a few minutes ago, the Assistant Secretary told me that my 
conservative friends should remember that the management of the 
Department has changed, and their ideas will have some influence there.
  I strongly urge my colleagues to support H.R. 1.
  Mr. KILDEE. Mr. Chairman, I yield 3 minutes to the gentleman from 
Texas (Mr. Hinojosa).
  Mr. HINOJOSA. Mr. Chairman, I thank the gentleman for yielding me 
this time, and I rise in support of this extremely important bill. 
Nothing we do in the 107th Congress will be more significant than this 
reauthorization of the Elementary and Secondary Education Act of 1965 
as amended.
  First, I want to recognize the gentleman from Ohio (Mr. Boehner) and 
the ranking member, the gentleman from California (Mr. George Miller) 
for their outstanding leadership in crafting a bipartisan committee 
bill. I also commend the Members who worked on the committee 
negotiating groups for their efforts. We have accomplished much with 
our committee, but much more work needs to be done.
  While I am in agreement with the core bill approach, I have grave 
policy concerns and I continue to believe that our children and the 
teachers deserve more fiscal resources than are authorized in H.R. 1. 
High stakes testing is going to hurt limited English proficient 
children the most. NAEP, or the National Assessment for Education 
Progress, does not include migrant students in their national sample, 
and the administration intends to use NAEP as a barometer to show how 
students are doing. Limited English proficient children should be 
assessed in a language they understand.
  We should provide positive alternatives for the students in the 
gifted and talented programs as well as advanced placement for the 
college bound. Let us increase our investment in our country's K-16 
students.
  Our Nation needs 50,000 bilingual teachers to keep up with the 
demand, and this bill does not provide anywhere near the resources to 
meet this crisis. Look at the 2000 Census results and you will see the 
Latino population growth of 60 percent or more during the last decade. 
We need more funds to get the job done.
  Title III consolidates bilingual education, immigrant education, and 
foreign language assistance programs and delegates these functions and 
funds to the States. The bill changes from a well-respected competitive 
grant to a poorly-funded formula grant program that at present does not 
count all the eligible population. The elimination of the National 
Bilingual Clearinghouse makes no sense fiscally or policy-wise.
  H.R. 1 does not provide adequate funds nor strong policy support for 
dropout prevention. I remind my colleagues that already Hispanics 
suffer from the Nation's highest dropout rate. These students will 
certainly be neglected and left behind.
  Education Committee conferees are urged to protect and save the 
clearinghouse for all States to utilize the wealth of information such 
as exemplary programs to serve all eligible students.
  Even if title 3 were funded at the maximum level authorized by the 
committee, we would only reach one-fourth of the children.
  We hope that our colleagues in the other Chamber can help us reach 
the 5 million children seeking our support.

[[Page 8853]]

  The most egregious provision found both within title 1 and title 3 
singles out the parents of limited-English-proficient children and 
treats them differently from all other parents.
  Even if a child is deemed to need special language services under the 
act, the school may put them in English-only programs without bothering 
to inform the parents. However, if a parent wants their child in a 
bilingual program the school must receive parental permission to 
include the children.
  Let us fix this bill so that only those who mistreat our children are 
left behind.
  I am urging my colleagues to vote for H.R. 1 because the core bill is 
there and because I think we can improve it with the help of our 
colleagues in the other body.
  I am also urging our President as well as the Secretary of Education 
to support us as we try to improve the bill so that children all over 
this country may truly benefit. This is the time for leadership and 
substance over rhetoric.
  I have tried to be bipartisan in my approach; however, if vouchers 
and block grants are added to our core bill on the floor, then I would 
be forced to urge my colleagues to reject this bill.
  Finally, Mr. Chairman, I am including for the Record a copy of a 
letter from the National Education Association in support of my 
remarks.

                               National Education Association,

                                     Washington, DC, May 16, 2001.
     Representative Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Representative Hinojosa: On behalf of the National 
     Education Association's (NEA) 2.6 million members, we would 
     like to thank you for your efforts to address the issue of 
     parental consent for participation in bilingual education 
     programs. Specifically, NEA agrees with your opposition to 
     requirements for written parental consent for the provision 
     of non-English education services to limited-English-
     proficient students.
       NEA strongly supports the provision of information to 
     parents and efforts to increase parental involvement in their 
     children's education. However, we oppose parental opt-in 
     requirements, such as those contained in the No Child Left 
     Behind Act (H.R. 1). We believe the proposed opt-in 
     requirements will create unnecessary roadblocks to providing 
     students with needed instructional services. Such 
     requirements would result in increased bureaucracy, while 
     intruding on local school districts' ability to tailor 
     educational programs to serve the needs of their limited-
     English-proficient students. In addition, students could be 
     placed in educational limbo while schools seek the necessary 
     consent.
       Thank you again for your leadership in addressing this 
     important issue.
           Sincerely,
                                           Mary Elizabeth Teasley,
                                 Director of Government Relations.

  Mr. ISAKSON. Mr. Chairman, I yield 2 minutes to the gentleman from 
Michigan (Mr. Hoekstra), the chairman of the Subcommittee on Select 
Education.
  Mr. HOEKSTRA. Mr. Chairman, I thank the gentleman from Georgia for 
yielding me this time.
  Regrettably, today, I come to the floor to voice my opposition to 
H.R. 1. At the beginning of his presidency, President Bush outlined a 
bold vision for education that would move power and authority back to 
parents and back to States; a vision that included flexibility in how 
States and local schools would spend their money; a vision that would 
empower parents to make more educational decisions for their kids; and 
a change in process in how we would measure the results that Federal 
investments resulted in; a change in process where today we measure how 
we spend our dollars to a reform that said we are going to measure 
whether our children are learning or not.
  The flexibility for States has been eliminated. The parental 
empowerment has been weakened. The results accountability has been 
added to the bill, but the red tape, where local school districts and 
States have to report back to Washington on how they spend their money, 
has been maintained. We are now going to tell States and local school 
districts how to spend their money as well as the results they are 
going to get. What we are left with is Goals 2001, after we fought 
Goals 2000; and accountability putting us on the road to national 
testing and spending that only President Clinton could have dreamed of.
  It is time to rework parts of H.R. 1. I agree with Sandy Kress, the 
President's education adviser, in his comments yesterday. H.R. 1 is 
likely ``going to require further weeks of thought and deliberation to 
fix.'' It is time to move back to the President's vision of education, 
not the bill that is working its way through the House today. It is 
time to send this bill back to committee and let the further weeks of 
thought and deliberation happen in committee and not in a conference 
committee.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
California (Ms. Woolsey).

                              {time}  1115

  Ms. WOOLSEY. Mr. Chairman, let me add my compliments to the gentleman 
from Ohio (Mr. Boehner) and the gentleman from California (Mr. George 
Miller), the ranking member, and the staffs on both sides who have 
worked so hard on this bill.
  Mr. Chairman, as it stands now, H.R. 1 is good enough. It is not 
great, mainly for what it leaves out. It would be a better bill if it 
included my amendment to keep coordinated services as part of the act. 
That way, children and their families would have a safe place, at or 
near their school site, in order to have access to services, the 
services that they need when their lives are so very, very busy.
  It is also too bad that my ``Go Girl'' amendment to bring more 
females into the math, science, engineering, and technology workforce 
was not included. When women, who are one-half of our population make 
up only 19 percent of our science, engineering, and technology 
workforce, we must encourage more girls to study these subjects. ``Go 
Girl'' would have done that.
  On the other hand, H.R. 1 includes testing provisions, provisions 
that must be removed from this bill.
  Two good things about H.R. 1 are what have been excluded in the bill; 
that are not in the bill. These good things are no private school 
vouchers and no block grants. Block grants would take education funds 
from students and schools which need them the most. But if these 
amendments pass, adding vouchers or block grants, then I would suggest 
that we defeat H.R. 1.
  Mr. Chairman, I encourage my colleagues, keep H.R. 1 clean so we can 
pass it. Otherwise, H.R. 1 is good enough to vote for. It would be 
better, however, with coordinated services, ``Go Girl'' programs, 
school construction, and smaller class size.
  Mr. ISAKSON. Mr. Chairman, I yield 3\1/2\ minutes to the gentlewoman 
from New Jersey (Mrs. Roukema).
  Mrs. ROUKEMA. Mr. Chairman, I rise in strong support of this 
legislation. It is truly an example of bipartisanship, and it is an 
example of the way that the system is supposed to work.
  This process has not been about politics, it has been about children 
and their educational standards. Yes, I have heard what others have 
said, and I am pleased to assert that without question this bill is 
reflective of President Bush's vision for education reform; and the 
President has indicated his support. So let there be no mistake about 
that for the people on my side of the aisle.
  I also want to point out some of the good parts of this bill. It 
gives flexibility and local control and maintains it; and that was very 
important to me and very important on a bipartisan basis. I think the 
flexibility allows school districts in this bill the ability to target 
Federal resources where they are needed the most, and that will ensure 
that State and local officials can meet the unique needs of their 
students.
  It also enhances accountability and demands results through high 
standards and assessments. Grades three through eight will have student 
testing. This is a provision that has not been clearly understood; and 
as a member of the Committee on Education and the Workforce, I want to 
explain this to everyone here.
  It is important to emphasize that the States will develop their own 
standards and assessment. This bill does not dictate a national test. 
However, what the bill does say, if you are going to accept Federal 
education funding, then you are going to be held accountable for the 
results. State test results will be confirmed through the National 
Assessment of Educational Progress or a

[[Page 8854]]

similar test. If a State improves on the NAEP, and their State 
assessments each year show a forward movement, they will be eligible 
for rewards. Those who do not improve will undergo corrective action.
  Striking a balance between State and Federal responsibility is the 
right approach, and it is the way that we have done it and what the 
President has approved. I think that is awfully important.
  I took leadership in terms of the question of safe schools, and I do 
not know how much of this has been emphasized in this debate, but 
namely we put into it mental health screening and services that are 
available to young people through the schools. Whether we are talking 
about violence in the schools or aggressiveness in schools, we want to 
deal with those tragedies and those growing symptoms of problems within 
the school system, and so we have school-based mental health services. 
And I was proud of being part of putting that in the bill.
  Finally, is this a good bill? Yes. Does it reflect the President's 
priorities? Absolutely.
  Mr. Chairman, those areas where there are continuing disagreements 
will be taken up in the debate on the amendments. So this is a full 
process. We can discuss the voucher question yet again. It is one on 
which I disagree. Vouchers should be out of this legislation, but it 
will be voted on as an amendment. In the end, we will be passing an 
historic education bill for our children and for the future of our 
country.
  Mr. Chairman, I rise in strong support of this bill. First and 
foremost, I would like to commend the Education and Workforce Committee 
Chairman Boehner and Ranking Member George Miller for their leadership, 
hard work, and diligence.
  This bill is truly an example of bipartisanship. But make no 
mistake--this was not an easy process. There were many hurdles along 
the way--and many times we all thought an impasse had been reached. No 
one on either side ever lost sight of the goal--to ensure that every 
child, regardless of situation, in every public school in America 
received a quality education.
  This is the way the process is supposed to work--partisan politics 
have been set aside to make way for a meaningful debate on the issues 
that matter to America and our children. This process has not been 
about politics--this process has been about children.


                               bush plan

  Yes, I am pleased that the bill before us today is bipartisan. But I 
am also pleased that this bill is reflective of President Bush's vision 
for education reform--to have the best education system possible to 
leave no child behind. And President Bush supports this bill--That's 
what this bill accomplishes. We all won on some issues and we all lost 
on some issues. But, in the best spirit of compromise, America's 
children win.
  For instance:
  H.R. 1 provides unprecedented flexibility and local control.
  It is vitally important to cut federal education regulations and 
provide more flexibility to states and local school districts. We 
should give our educators the flexibility to shape federal education 
programs in ways that work best for our teachers and our students.
  Flexibility allows school districts the ability to target federal 
resources where they are needed the most. This will ensure that state 
and local officials can meet the unique needs of their students.
  H.R. 1 dramatically enhances flexibility for local school districts 
in two ways: (1) through allowing school districts to transfer a 
portion of their funds among an assortment of ESEA programs as long as 
they demonstrate results and through the consolidation of overlapping 
federal programs.
  H.R. 1 enhances accountability and demands results.
  As we provide more flexibility, we must also ensure that federal 
education programs produce real, accountable results. Too many federal 
education programs have failed. For example, even though the federal 
government has spent more than $120 billion on the Elementary and 
Secondary Act (ESEA) since its inception in 1965, it is not clear that 
ESEA has led to higher academic achievement. Federal education programs 
must contain mechanisms that make it possible for the American people 
to evaluate whether they work.
  This bill provides accountability and demands results through high 
standards and assessments. And it provides appropriate responses to 
address failure. States will be required to test students in grades 3-
8.
  This provision has not been clearly understood.
  It is important to emphasize that the states will develop their own 
standards and assessments. This bill does not dictate a national test. 
What the bill does is say that if you are going to accept federal 
education funding, then you are going to be held accountable for 
results. State test results are confirmed through the National 
Assessment of Educational Progress (NAEP) or similar test, which would 
be required annually for grades 4 and 8 in reading and math. If a state 
improves on NAEP and their state assessments each year they will be 
eligible for rewards, and if it does not, there will be sanctions. We 
reward states and schools that improve. Those that do not improve will 
undergo corrective actions. Striking a balance between state and 
federal responsibility is the right approach to accountability.
  H.R. 1 ensures that our schools are safe.
  I am pleased that H.R. 1 includes provisions to ensure that schools 
have the resources they need to combat substance abuse and violence. An 
important element included here relates to work that I have done on the 
Committee, during both negotiations and markup. Namely, this bill 
provides resources to ensure that mental health screening and services 
are made available to young people. In addressing school safety, we 
must ensure that children with mental health needs are identified early 
and provided with the services they so desperately need. Many youth who 
may be headed toward school violence or other tragedies can be helped 
if we address their early symptoms. I am pleased that this bill 
includes school-based mental health services language to ensure school 
safety and combat substance abuse.
  H.R. 1 Promotes Reading First.
  The bill also includes the President's Reading First Initiative, 
which awards grants to states that establish comprehensive reading 
programs anchored in scientific research. Obviously, in order to 
improve education we must start by ensuring that every American child 
can learn to read. States must be given both the funds and the tools 
they need to eliminate the reading deficit. Unfortunately, our schools 
have been failing our students on this basic aspect of learning. 
According to the National Center for Educational Statistics, thirty-
eight percent of fourth graders cannot read at a basic level--that is, 
they cannot read and understand a short paragraph that one would find 
in a simple children's book. Reading failure has devastating 
consequences on self-esteem, social development, and opportunities for 
advanced education and meaningful employment.
  By funding effective reading instruction programs, this bill ensures 
that more children will receive the help they need before they fall too 
far behind. Better reading programs mean fewer children in special 
education and fewer children dropping out of high school.


                           vote for this bill

  Mr. Chairman, this bill represents true bipartisan compromise--a true 
compromise. Had I written this bill, it would look significantly 
different. But, I recognize that we cannot allow the perfect be the 
enemy of the good.
  Is this a good bill? Yes.
  Does it reflect the President's priorities? Absolutely.
  Will it improve education in America today? No doubt about that.
  There are issue areas where we genuinely disagree and will have the 
opportunity to debate in the coming days.
  For example, I strongly oppose any efforts to eliminate the testing 
provisions of the bill, as this is the centerpiece of the President's 
plan for accountability. In addition, I strongly oppose the re-
insertion of vouchers. Instead, I support this bipartisan compromise in 
its current form: it makes real strides towards improving education for 
ALL of our nation's children. As such, I oppose any amendments that 
would erode this compromise or divert us from our goal: to leave no 
child behind.
  This bill takes a meaningful step towards leaving no child behind. I 
encourage all of my colleagues to support the bill.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Hawaii (Mrs. Mink).
  Mrs. MINK of Hawaii. Mr. Chairman, I said the other day I deeply 
appreciated the opportunity to be on the working group and commend the 
gentleman from Ohio (Chairman Boehner) and the gentleman from 
California (Mr. George Miller) for the outstanding work that they did 
in pulling together the essentials for this legislation.
  Mr. Chairman, this is a core bill. As we said in the debate on the 
rule, there were many things on our side that we

[[Page 8855]]

wanted to have included: The construction provision and the reduction 
of class size were two paramount things that we will not be able to 
debate even during the amendment stage.
  The reason that I support this bill, notwithstanding the many 
omissions, is because the compromise that was struck provided for a 
doubling of the title I funds. It seems to me that this is a crucial 
test of whether we are serious about this legislation. Let us not 
forget that title I is premised on the fact that it is to be targeted 
to poor children. The formula is based upon counting poor children.
  So when we hear speeches to the effect that the States ought to be 
allowed to have the discretion to spend their money any way they see 
fit, it is a complete annihilation of the process that got us to the 
formulation of title I back in 1965, and that is to bring specific aid 
to the poorest schools that cannot finance their educational systems; 
and, therefore, every year fall further back.
  School financing is based upon real property values, and there are 
many, many places in the country where property values are so low that 
they cannot fund education adequately compared to the rich and 
wealthier districts. Let us not destroy that principle by talking about 
taking the money and letting the States have the opportunity to spend 
it any way they wish.
  Mr. Chairman, there are many other facets to this bill with which I 
believe improvements can be made; but fundamentally, if we are not able 
to fund it, we do not have a core agreement.
  Mr. Chairman, I rise in support of H.R. 1, which reauthorizes the 
Elementary and Secondary Education Act for 5 additional years.
  ESEA was passed in 1965 to help America's most disadvantaged 
children. These are our poorest children, who go to school in crumbling 
buildings, with outdated textbooks, few if any computers, little access 
to challenging, up-to-date curriculum, and a teaching force that is 
often overburdened, inexperienced, underpaid, and undertrained. These 
are children who have been left behind by the way we fund our schools--
through local property taxes. The communities these children live in 
are often unable to raise sufficient funds to provide for the same 
high-quality education as in wealthier communities. States also provide 
resources for education, but don't do enough to eliminate this 
disparity and ensure every child in the State has equal access to the 
same, high-quality education. ESEA exists to close the gap in resources 
to the poorest schools, to provide them with the funds to build a 
foundation for a solid, high-quality education.
  The bill we are considering today, H.R. 1 continues the efforts of 
ESEA. For one, recognizing that highly qualified teachers are crucial 
to ensuring that the most disadvantaged students have access to the 
best education possible, H.R. 1 provides additional resources to help 
train teachers to improve their skills. Funding under title II is 
significantly increased, by almost $3 billion. Though almost $2 billion 
come from consolidating class size reduction funds with other teacher 
training funds, this represents a significant increase for teacher 
quality programs.
  Unlike children in wealthier communities, children in the poorest 
schools more often do not come to school ready to learn, not in the 
first grade, not in any grade. These are the children that have to deal 
with distractions at home. They face dangerous surroundings, both in 
and out of school. And they go to schools that are falling apart, have 
the largest classes, and may not have enough classroom space, forcing 
some to take place in hallways, cafeterias, gymnasiums, or worse. These 
children face many obstacles to getting a solid education, and need the 
best teachers.
  Another major improvement included in H.R. 1 is the doubling of title 
I funds within 5 years. These funds are the main Federal resources that 
are intended to fill in the gaps between poor schools and wealthier 
ones and are very much needed. While these funds are doing a great deal 
of good in many schools, we know the program is currently underfunded 
and that we need to help many more students. Doubling title I funds 
over the life of this authorization is a good start toward providing 
disadvantaged students with the best educational opportunities 
available, improving teacher quality, and helping struggling schools 
help themselves.
  But there are major problems with this bill. Chief among these is the 
new annual testing provisions in grades three through eight. These 
tests simply point out failure, and in many cases are used 
inappropriately for high-stakes decisions. H.R. 1 fails to provide 
enough resources to either help students or schools succeed.
  H.R. 1 is written with the premise that if we test children enough, 
we'll know which students are failing, and thus, which teachers and 
schools are failing. This legislation promotes the idea that if a child 
fails, the solution is to take away the teacher, or move the child to a 
different school. And it perpetuates this notion by providing some 
funds to some schools that fail, but does little to ensure the school 
has enough resources to succeed in the first place. The annual tests 
contained in this bill will not be a vehicle for success, but rather a 
harbinger of punishment for children, teachers, principals, and 
schools. In the end, it will be communities that suffer from the 
misplaced emphasis on these tests.
  H.R. 1 makes some resources available to failing schools, but not 
enough. In the 1998-1999 school year, States identified 8,800 schools 
as needing improvement. Since different States use different standards, 
this may understate the number of failing schools. And with the new 
annual tests under H.R. 1, it's likely even more schools will fail. 
However, this bill authorizes only $500 million to help these schools. 
While this builds on President Clinton's effort over the last 2 years 
to provide additional funds for low-performing schools, it does not go 
nearly far enough to provide the kind of intensive, high-quality 
support failing schools still need.
  H.R. 1 is grievously flawed if it passes the House without sufficient 
resources to help failing schools. Of the schools identified by States 
as needing improvement in 1998-1999, only 47 percent of these 
principals said they got any additional help from their district, from 
their State, or from the Federal Government. That's less than half. And 
while these schools are more likely to get help the longer they've been 
identified as needing improvement, the help isn't likely to come 
anytime soon. 70 percent of principals in a school that's been 
struggling for 3 years saw no additional help, and even 38 percent who 
ran a school that's been struggling for 4 years saw no additional help. 
Almost a third of principals in struggling schools had no idea what 
their districts considered to be ``adequate yearly progress'', the 
State's benchmark for what constitutes success.
  Almost half the title I schools identified as low-performing in 1998-
1999 were 75 percent or more minority and eligible for free and reduced 
price lunch. These schools simply cannot turn themselves around without 
real help.
  This issue is not just a national one, but a very local one for me 
and many of my colleagues. In many of my communities in Hawaii, three-
quarters or more schools have been identified as low-performing. Part 
of this has to do with our State strengthening its education system, 
but much of it is also a direct result of these schools not having the 
resources in the first place to provide a high-quality education. 
Without the necessary additional resources, these schools will continue 
to fail, and the annual testing provisions in H.R. 1 will only serve as 
a vehicle for punishing these schools and disrupting communities rather 
than making a sincere effort to provide help.
  Linked to this flaw is the potential havoc public school choice may 
wreak. The public school choice provisions in H.R. 1 take a backward 
approach to providing resources to the children that need them most. 
The intent of ESEA has always been to help poor schools give kids the 
best education possible by providing them with more resources. H.R. 1 
turns this on its head by dictating that, instead of bringing the 
resources to the student, bring the student to the resources. That 
logic is inherently backward.
  We should not be focusing time, effort, and money on disrupting and 
dismantling children's base of security, the neighborhood school. 
Instead, we should be sending in reinforcements: adequate funding, so 
poor schools have the same chance to succeed as wealthier schools; 
qualified, strong, and experienced teaching staff, so they form a 
crucial foundation and get to know students and their individual 
problems; and the kind of learning atmosphere that voucher proponents 
endorse private schools for: smaller class sizes, extended learning 
time and tutoring before and after school, schools that aren't 
crumbling, schools with computers and modern wiring and infrastructure. 
We need to turn this debate right-side-up again. Instead of forcing the 
child to go where the resources are, we should be doing what we should 
have done all along--bring the resources to the child.
  There are other significant problems with H.R. 1. One of the most 
significant is the various ways it undermines education for students 
with limited English speaking skills, and

[[Page 8856]]

those who are recent immigrants. The most important issue is that H.R. 
1 blockgrants all of the existing programs for these children into one 
formula program, but provides too little overall to be distributed in 
sufficient quantities to be effective. These programs currently are 
competitive grants and thus are more targeted to students that need 
them. By turning all these programs into a block-grant, H.R. 1 dilutes 
these funds, providing less services to the students that most need 
them. H.R. 1 should keep these programs competitive at least until 
funding reaches $1 billion.
  H.R. 1 also contains a dangerous provision for limited English 
proficient students, requiring schools to get approval from their 
parents prior to giving these students access to bilingual education 
services. This provision could cause significant delays in schools 
providing these children with an education. These are the most 
vulnerable of our students--they may have little understanding of our 
systems, little capacity to understand directions people are giving 
them, and little chance of becoming dedicated to a system they can't 
comprehend. By inserting this onerous provision in ESEA, the bill will 
simply disrupt or even deny to our neediest children educational 
opportunities on an equal basis, as required by Brown versus Board of 
Education.
  In the end, this bill tries hard to retain some of the best things in 
ESEA, and even adds some good new ideas, such as the Reading First 
program. But one good idea cannot disguise many bad ideas. In an 
apparent fervor to block-grant programs with no consideration for 
effectiveness, H.R. 1, for example, eviscerates the Class-Size 
Reduction Program. This is the one program that will really help with 
reading. It is research-based and scientifically proven to work, as is 
required of all other programs in the bill, and flexible enough to be 
used for improving teacher quality. Combined with a genuine effort to 
help communities repair and build new schools, the Reading First 
Program and the Class-Size Reduction Program might have actually driven 
change in education for disadvantaged students.
  Mr. ISAKSON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Florida (Mr. Keller), a member of the Committee on Education and the 
Workforce.
  Mr. KELLER. Mr. Chairman, I rise today as an original cosponsor and 
strong supporter of the President's No Child Left Behind Act. Why do I 
support this meaningful education reform legislation? Because, for the 
first time, more children are going to be able to read in this country. 
Parents are going to get a report card as to how their children's 
school is performing, and children now trapped in a failing school will 
have a safety valve to get out.
  Mr. Chairman, we do these goals by three key measures. First, we will 
invest an additional $5 billion over the next 5 years in reading for 
children in grades K-2. This is critical since currently approximately 
70 percent of our fourth graders in inner-city schools cannot read. We 
must address this issue head on.
  Second, we will require that States annually test our children in 
grades three through eight in reading and mathematics. It is critical 
to measure their performance on an annual basis to ensure that no child 
falls through the cracks.
  How many times have we turned on the television to see a college 
athlete explain he is not able to read, yet he was able to graduate 
from high school. He has fallen through the cracks, and by measuring 
the performance each year, we are going to put an end to this problem 
right here in this Congress.
  Third, there will be a safety valve for children trapped in failing 
schools. Specifically this bill provides for immediate public choice, 
as well as providing tutoring, including those provided by faith-based 
providers.
  I have heard two criticisms of this bill raised by some of my 
conservative colleagues, and as a conservative myself, I would like to 
address both of those criticisms head on.
  First, they say, ``The President's reforms have been left behind in 
this bill.'' Let us look at the facts. The President called for more 
money for reading, testing, and school choice. This bill provides for 
reading, testing, and immediate school choice that takes place even 
sooner than the President proposed. It is true that we did not have the 
votes for private school choice at the committee level.
  Mr. Chairman, I support private school vouchers. I argued for them at 
the committee level, and will support them as an amendment on the floor 
later today. But even if we do not have the votes for private school 
vouchers, it is important to realize that public school choice provides 
a nice safety valve for children trapped in these public schools. It 
gets them immediate relief, and I believe 90 percent of a loaf of bread 
is better than none at all. That is why the President himself supports 
this bill. Do not allow the perfect to be the enemy of the good.
  The second criticism is that the Federal Government should not be 
involved in testing. H.R. 1 explicitly prohibits federally sponsored 
national tests, prohibits federally controlled curricula criteria, as 
well as any mandatory national teacher test or certification.
  Mr. Chairman, I urge my colleagues to vote ``yes'' on H.R. 1.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Minnesota (Ms. McCollum).
  Ms. McCOLLUM. Mr. Chairman, I am very proud of the bipartisan work 
the Committee on Education and the Workforce has done on this bill. 
Members have worked together with the White House; and I thank the 
gentleman from Ohio (Mr. Boehner), our chairman, and the gentleman from 
California (Mr. George Miller), my ranking member, for leading this 
bipartisan effort.
  Mr. Chairman, I want to vote for an education bill that demonstrates 
leadership and accountability to parents and students; and I want to 
support a bill that prepares today's students to be active citizens in 
our democracy and contributing to our economy and our communities. But 
I will not support a bill where vouchers are included. Vouchers take 
away scarce resources from our children and provide no accountability 
for our tax dollars.
  Mr. Chairman, I want to support a bill that involves parent and 
community control at a local level, but I will not support a bill if it 
takes decisions away from parents and local school districts and 
creates a new block grant program. I want to support a bill that holds 
schools accountable for the success of our children's education. We 
have more work to do on this bill.
  When our school districts, teachers, parents, and students look at 
this bill, will we have passed their test? Special education remains 
underfunded. Title I remains underfunded, and this bill includes a new, 
unfunded Federal mandate for our school districts, six more tests for 
our children.
  Mr. Chairman, this bill is not perfect; but I am here to work with 
all of my colleagues today to pass a bipartisan education bill that is 
accountable to our communities and our children.
  Mr. ISAKSON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Nebraska (Mr. Osborne), a member of the Committee on Education and the 
Workforce and the principal author of the mentoring provisions of H.R. 
1.
  Mr. OSBORNE. Mr. Chairman, I would like to thank the gentleman from 
Georgia for yielding me this time.
  Mr. Chairman, I rise today in strong support of H.R. 1. I would like 
to thank the gentleman from Ohio (Chairman Boehner) and the gentleman 
from California (Mr. George Miller), the ranking member, for their 
work.
  Mr. Chairman, I was formerly in the coaching profession; and each 
year we evaluated hundreds of transcripts from all across the country. 
We found over time that even though someone was a high school graduate, 
and even though their grades were reasonably good on the transcript, we 
could not determine from their transcripts that they could adequately 
read, write, do basic math or perform. So we had to rely heavily on SAT 
and ACT tests.
  We have a national crisis in education because so many students are 
simply passed along. Roughly 68 percent of all fourth graders in the 
Nation cannot read at a functional level.

                              {time}  1130

  So I think H.R. 1 really addresses most of these problems and will 
alleviate much of the crisis that we see before us.
  I would like to mention very quickly two elements of H.R. 1 that may 
go relatively unnoticed in the discussion

[[Page 8857]]

today. First is the rural education initiative. Sometimes rural schools 
are just as distressed as inner-city schools, and I think this element 
will be addressed in the bill. Small rural schools, 600 students or 
less, receive very few Federal dollars. They have no grant riders, and 
many times the funds really that they might receive are not worth the 
paperwork. So this particular bill will provide a minimum of $20,000 to 
those schools. This will reach thousands of schools across the country, 
400 in my State of Nebraska; and I think it is something that will 
really help the smaller school because it will enable them to hire a 
teacher, buy four or five computers, do something meaningful with the 
grant money that they are currently foregoing.
  The second aspect of the bill I would like to mention is that of 
mentoring. Over the last 10 years, we have spent 80 billion Federal 
dollars and we have seen absolutely no improvement on test scores or 
dropout rates. We do not know what return we have gotten for our money.
  In the city of Kansas City, over the last 15 years they have spent $2 
billion on education; and they spend $8,000 per student, more than 
$8,000 per student. They have excellent facilities, great teacher 
salaries and excellent curriculum; and yet they lost their academic 
accreditation last year, first major city ever to lose accreditation. 
They flunked every State performance standard.
  So one says, well, what is happening here? Why, if they have been 
given all these tools, would this happen?
  I would like to read very quickly a statement from Gary Orfield, a 
Harvard sociologist who has studied the school system in Kansas City. 
He said, ``When students come to class hungry, exhausted or afraid, 
when they bounce from school to school as their families face eviction, 
when they have no one at home to wake them up for the bus, much less 
look over their homework, not even the snazziest facilities, the 
strongest curriculum and the best paid teachers can ensure success.''
  So I think that mentoring is something that will address this because 
it does cut absenteeism, drug abuse, teenage pregnancy, violence, and 
lowers drop-out rates.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Georgia (Mr. Bishop).
  Mr. BISHOP. Mr. Chairman, I thank the gentleman from Michigan (Mr. 
Kildee) for yielding me this time.
  Mr. Chairman, I would like to take this opportunity to thank the 
gentleman from Ohio (Mr. Boehner) and the ranking member, the gentleman 
from California (Mr. George Miller), for the hard work that they have 
done in pulling this bipartisan bill together.
  Mr. Chairman, when we ask our fellow House Members how Congress can 
best help fix our schools, we get as many different answers as we have 
Members. We all feel strongly about education, and we all have our own 
ideas about what needs to be done; and many of these ideas have merit. 
That is why I rise today in support of H.R. 1, a bill that offers a 
balanced, thoughtful, bipartisan course of action for helping achieve 
the educational results that most of us seek; a bill offering more 
accountability without undue Federal influence; more flexibility while 
still targeting many special needs; options for children who are 
trapped in underperforming schools while retaining public funds for 
public education and without vouchers; and provisions I strongly pushed 
to update technology in rural schools and to double title I funding.
  We should ask not whether the bill achieves perfection but whether it 
is a fair, constructive compromise that can move the country closer to 
achieving better schools and a brighter future. And without question, 
the answer is yes. I urge my colleagues to join in supporting this 
legislation. It is a good bill. A lot of people have worked hard on it. 
It is a bipartisan consensus of what we need to do to move forward on 
education, and I think that it will make a difference.
  Mr. ISAKSON. Mr. Chairman, I yield 2 minutes to the gentleman from 
New Hampshire (Mr. Bass).
  Mr. BASS. Mr. Chairman, I thank the gentleman from Georgia (Mr. 
Isakson) for yielding me a couple of minutes to talk about this 
wonderful bipartisan bill.
  Mr. Chairman, I commend the ranking member, the gentleman from 
California (Mr. George Miller), and the chairman, the gentleman from 
Ohio (Mr. Boehner), for their working together and also the rest of the 
committee for a very good product, because this bill provides 
accountability which will improve educational quality. It provides 
local school administrators and school boards with more flexibility. It 
consolidates 34 out of 66 programs. It provides accountability with 
more funding for title I, which is significant. Lastly, it provides 
relief for children trapped in failing schools.
  Now, although H.R. 1 is a good bill, the single greatest change that 
we could bring to every elementary and secondary school everywhere in 
the country is to fulfill the Federal Government's obligation to fully 
fund its share of the cost of education for the disabled. Now, I bring 
this up because the Senate incorporated an amendment to make IDEA 
funding mandatory, but this language was left out of the House bill; 
and I regret the fact that I was unable to offer an amendment of my own 
to phase in full funding over the next 10 years as a mandatory program.
  Now, mandatory phase-in is good for the program if it is done on a 
percentage basis. It is good because local school boards can plan 
financially from year to year how much money they are going to have. It 
is good for education most importantly because we need to meet that 
unfunded mandate; but lastly and probably even more importantly, it is 
important for the program to have it funded on a mandatory basis 
because then the Congress will be forced to address the programmatic 
side of IDEA and reconcile the program to a budget.
  There are two problems with IDEA, the unfunded mandate and the 
programmatic side. I hope that the House will consider ceding to the 
Senate's position on IDEA because it is for responsible government, 
smart tax policy, and good for education. I commend the chairman and 
the ranking member for a job well done on H.R. 1.
  The CHAIRMAN. Without objection, the gentleman from California (Mr. 
George Miller) will control the time on the Democratic side.
  There was no objection.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentlewoman from New York (Mrs. McCarthy), a member of the 
committee.
  Mrs. McCARTHY of New York. Mr. Chairman, I want to thank certainly 
the gentleman from California (Mr. George Miller) for the work that he 
has done, as well as the gentleman from Ohio (Mr. Boehner).
  Mr. Chairman, I have been hearing that there are some people that are 
unhappy with this bill, and I am sorry to say that is too bad. This is 
a good bipartisan bill. Both sides gave up a lot, and they did. There 
are certain things in this bill that I would like to have seen in it, 
but anyway working on bipartisan, that means each person has to give a 
little bit. Let us get down to what this bill really does. It is going 
to help our schools that need the most help, with accountability and 
flexibility.
  Mr. Chairman, I come from Long Island. I have some very wealthy 
suburban schools. They are doing very well, but I also have schools 
that are failing terribly because they do not have the resources to do 
what they have to do.
  This bill, through title I, is going to help them. We will be helping 
all the children across this Nation, and that is what the Committee on 
Education and the Workforce is supposed to do. With that, I would like 
to say we on the committee are on that committee because we care about 
education. So I am hoping that all the Members will listen to us and 
say this is a good bill, accept it and let us help the children of 
America. That is why we are here. That is why we sit on all the 
different committees. We can disagree and we can disagree, but when a 
bill like this comes out of our committee with good bipartisan support, 
each of us giving up a little bit of something that we wanted, this 
bill will help the American people.

[[Page 8858]]

  President Bush accepts this bill, and we should work with him to make 
sure it goes flying through this House.
  Mr. ISAKSON. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Georgia (Mr. Chambliss).
  Mr. CHAMBLISS. Mr. Chairman, I thank the gentleman from the Sixth 
District of Georgia (Mr. Isakson) for his leadership on this issue. He 
is certainly one of the most knowledgeable Members of this House when 
it comes to education.
  Mr. Chairman, I want to take the opportunity to commend the President 
for ensuring that his administration makes education of our children 
its number one priority. While this bill is not a perfect bill, I think 
we owe a great debt of gratitude to the gentleman from Ohio (Mr. 
Boehner) and the ranking member, the gentleman from California (Mr. 
George Miller), for the great leadership that they have provided here; 
and I commend them for bringing both sides together and bringing issues 
that are important to both sides more towards the middle.
  While there are a number of provisions in this bill that I think are 
very critical, the most important provision, in my opinion, is the 
Reading First Initiative that we have in this bill that is going to 
provide flexibility to our States and is going to make reading a number 
one priority.
  My wife is a fifth grade teacher. Her number one frustration with her 
fifth graders is the fact that too many of them are reading on a first 
or second grade level and some of them even below that. This bill makes 
sure that every child in America becomes more proficient in reading by 
the time they leave the third grade.
  As one can imagine, it is frustrating to a teacher not to have 
children that can read, but imagine the frustration of those children 
who want to learn but simply are handicapped because they do not have 
the basic skills.
  I commend the administration, and I commend the leadership on the 
Committee on Education and the Workforce for ensuring that we give 
priority to the issue of reading and making sure that all of our 
children learn to read and that we put accountability back on the State 
and local governments to ensure that they are doing the things 
necessary to make sure that all of our children are reading much more 
proficiently and at the early grade level.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from Massachusetts (Mr. Tierney), a member of the 
committee.
  Mr. TIERNEY. Mr. Chairman, I thank the gentleman from California (Mr. 
George Miller) for yielding me this time.
  Mr. Chairman, this bill has many good features to it, and I am sure 
that if we manage to maintain or keep out of it some of the problems 
that we have run into in the past it will probably pass this body. We 
have managed to keep out vouchers. We have managed to keep out block 
grants, things that in the past administration caused this bill to stop 
dead in its tracks.
  If the President continues to maintain the position that he will not 
insist on those things, the bill will move forward. We still have to 
work on modernizing schools. We still have to work on having smaller 
class sizes. There is much more to be done, but I do want to call some 
attention to one feature of this bill that I think merits some 
consideration, and that is the high degree of testing that is being 
asked for.
  We have to keep in mind that there already is testing being done in 
the States. Virtually every State has a significant amount of testing 
being done and the Federal Government already requires testing three 
times in math and reading throughout an elementary school career.
  We have to be concerned that the testing that is in this bill does 
not amount to just quantity over quality, and my fear is that we have 
not allowed or provided for in this bill a ramping up to scale the 
capabilities of the testing community to be able to put those 260 
additional tests that are now going to be required throughout this 
country in an appropriate way. We have not allowed time for them to be 
developed and implemented. We have not allowed enough resources for 
them to be done. The estimates are that it is $30 per test for the 
administration and much more for the development. The Congressional 
Budget Office estimates $650 million a year for these tests. Yet the 
President is only asking for $350 million.
  If we continue in this path, States may feel forced to go to off-the-
shelf tests, the lowest common denominator here; and the problem with 
that is we are going to run into all sorts of difficulties about 
whether or not this testing procedure then really does measure the 
progress of our students or is it just putting on them yet an 
additional burden of still another test in which teachers have to 
prepare; it has to be developed; they have to take time out of the 
classroom and away from other subjects that probably should be taught.
  So I caution our Members to hopefully go back to the drawing board on 
the testing provisions and make this truly a good bill, provide the 
resources that are there, make those tests not something that is 
required until and unless we do the background work that needs to be 
done.
  Mr. ISAKSON. Mr. Chairman, I yield 3 minutes to the distinguished 
gentlewoman from Illinois (Mrs. Biggert), a member of the House 
Committee on Education and the Workforce.
  Mrs. BIGGERT. Mr. Chairman, I thank the gentleman from Georgia (Mr. 
Isakson) for yielding me this time.
  Mr. Chairman, I rise today to express my strong support for H.R. 1, 
the No Child Left Behind Act of 2001.
  As a member of the Committee on Education and the Workforce, I am 
pleased to say that H.R. 1 encompasses President Bush's vision for 
education in America. The bill empowers parents, helps children learn 
to read at an early age, and grants unprecedented new flexibility to 
local school districts while demanding results in public education 
through strict accountability measures.
  I know that many of my colleagues have and will speak in more detail 
about these provisions, so let me turn to a section of the bill that 
will not receive as much attention but is important because of the 
direct and positive impact it will have on the estimated 1 million 
homeless children and youth in our country.

                              {time}  1145

  Mr. Chairman, being without a home should not mean being without an 
education. Yet, that is what homelessness means for far too many of our 
children and youth today. Congress recognized the importance of 
education to homeless youth when it enacted in 1987 the McKinney 
Education Program. But, despite the progress made by this Act over the 
last decade, we know that homeless children continue to miss out on 
what is the only source of stability and promise in their lives: school 
attendance.
  Mr. Chairman, H.R. 1 strengthens the McKinney program by 
incorporating the provisions contained in the McKinney-Vento Homeless 
Education Act of 2001. This bill ensures that a homeless child is 
immediately enrolled in school. That means no red tape, no waiting for 
paperwork, no bureaucratic delays. It limits the disruption caused by 
homelessness by requiring schools to make every effort to keep homeless 
children in the school they attended before becoming homeless. It also 
creates a mechanism to quickly and fairly resolve enrollment disputes, 
ensuring that such process burdens neither the school nor the 
children's education. Last, it assists overlooked and underserved 
homeless children and youth by raising the program's authorizing level 
to $60 million in fiscal year 2002 and reauthorizing the McKinney-Vento 
program for another 5 years.
  As a former school board and PTA president, I believe H.R. 1 and its 
homeless education provisions meet our commitment to local control, 
while making the best use of Federal education dollars. I commend the 
gentleman from Ohio (Mr. Boehner), the chairman of the committee, as 
well as the gentleman from California (Mr. George Miller), the ranking 
member, for understanding that being homeless

[[Page 8859]]

should not limit a child's opportunity to learn and for addressing in 
the bill before us the needs of homeless children.
  Mr. Chairman, I urge my colleagues on both sides of the aisle to 
support the No Child Left Behind Act. This education reform legislation 
is what America deserves and what America's children need.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentlewoman from Michigan (Ms. Rivers), a member of the committee.
  Ms. RIVERS. Mr. Chairman, I rise in opposition to H.R. 1. Less bad is 
not good. It is not legitimate to argue for passage of a flawed 
proposal on the basis that it could be worse.
  What we have before us is a huge Federal intrusion into the 
jurisdiction of State legislatures and local school boards. What we 
have is a poll-driven illusion of reform through standardized testing, 
a vehicle that has come under recent scrutiny. Lastly, what we have 
here is a largely unfunded Federal mandate to further burden local 
school districts.
  This is a power grab by the Federal Government, pure and simple. It 
represents an attempt to leverage only 7 percent of the funding for 
American schools into control of the entire K-12 system. Such action 
flies in the face of our long-standing tradition of local control of 
education. It also exacerbates an already grave problem in this 
country. Americans do not participate in school board elections. They 
do not know their board members, when the board meets or how to raise 
concerns about the schools. We should not encourage the public to turn 
their eyes to Washington regarding educational matters; we should, 
instead, direct them back to their own communities and their local 
boards of education.
  But even if this power grab succeeds, Congress cannot deliver on the 
promises this bill makes. Testing is not the panacea its advocates 
claim. Polling shows some 70 percent of the public supports school 
accountability, and that would seem to show support for this proposal, 
but we have not asked the follow up question: do you favor a larger 
Federal role in the operation of your local school district? I dare say 
the opposition to that would be as high as accountability.
  While the Federal Government will help with the costs associated in 
giving these tests, no dollars are available for the very real costs of 
scoring the tests nor for any response to what the tests may uncover. 
This creates a largely unfunded mandate, something we, the Congress, 
have condemned since 1995.
  There is another polling question that might be asked: do you favor 
requiring local schools to spend more money to comply with Federal 
requirements?
  This bill is a mirage. It is not what it seems to be, and it makes a 
terrible trade. It stands a two-century tradition of community-
controlled schools on its head in exchange for the mere illusion of 
reform. Vote ``no.''
  Mr. ISAKSON. Mr. Chairman, I am pleased to yield 2 minutes to the 
gentleman from Pennsylvania (Mr. Platts), a distinguished member of the 
Committee on Education and the Workforce and the gentleman who replaced 
the former chairman of that committee, Mr. Goodling.
  Mr. PLATTS. Mr. Chairman, I thank the gentleman from Georgia for 
yielding me this time.
  As a member of the committee, I rise in full support of H.R. 1. I 
would like to commend the chairman of the committee, the gentleman from 
Ohio (Mr. Boehner), and the ranking member, the gentleman from 
California (Mr. George Miller) for working so diligently with each 
other, as well as with other members from both sides of the aisle, to 
help craft a bipartisan bill that I believe all of us can 
enthusiastically support. I certainly want to also commend President 
Bush for his efforts in this area.
  He has brought the issue of education reform to the forefront through 
the depth of his commitment to improving America's schools. I have had 
the honor to speak with the President regarding this issue on a number 
of occasions now. Each time, he has demonstrated to me his genuine, 
heart-felt belief in the importance of closing the achievement gap in 
America's education system.
  The bill we are about to consider is numbered H.R. 1 for a reason. It 
is considered by the administration and appropriately by Members of 
this House as the top priority for our Nation. There is no more 
important challenge before our Nation than ensuring that the next 
generation of schoolchildren is fully equipped with the skills and 
knowledge that they will need to succeed in work and life. Books and 
chalk boards, good teachers, and a safe learning environment, these are 
the ingredients to a better future.
  Mr. Chairman, H.R. 1 consolidates education programs. It increases 
flexibility for local schools and, most importantly, and a corner stone 
of the President's plan, it requires accountability through annual 
testing. It treats literacy as a new civil right by proposing an 
investment of $5 billion in literacy programs to guarantee every 
student can read by grade 3.
  An area I have particular interest in is preschool education, and the 
Early Reading First program proposed by H.R. 1 will help to advance the 
debate in this area. Too many children, because they come from broken 
families and shattered communities, first arrive at the schoolhouse 
already at a tremendous disadvantage. Quality pre-K programs, such as 
those envisioned in Early Reading First, can do much to ensure that 
these kids will not have to spend their entire elementary years merely 
trying to catch up.
  I look forward to these and other considerations of the provisions in 
the bill, and I certainly join with the chairman of the committee and 
with other Members of the House in fully supporting the President's 
education plan so that we leave no child behind.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentlewoman from California (Ms. Solis).
  Ms. SOLIS. Mr. Chairman, I would like to thank my colleagues as well, 
the gentleman from Ohio (Mr. Boehner), the chair of the committee, and 
the gentleman from California (Mr. George Miller), our ranking member.
  As a freshman Member of Congress, it has been an exciting time for me 
and a challenge to serve on the House Committee on Education and the 
Workforce, working to draft a bipartisan education bill which truly 
will help students in California and throughout the country. I have 
been touring the schools in my district to find out exactly what our 
teachers, administrators, parents and students really need in terms of 
help from the Federal Government. I think the bill that was reported 
out of our Committee on Education and the Workforce makes an excellent 
start towards helping our students achieve success. I am pleased with 
the increased funding levels of title I, and the increase targeting of 
funds to low-income and at-risk students. I am also extremely happy 
with what was not in the bill, and that is, private vouchers.
  Although I am happy with the bill, I do have some concerns. I had 
hoped that the Republican leadership would have allowed Democrats the 
opportunity to improve the bill through amendments. I had hoped that 
school construction, an amendment that was offered by the gentleman 
from New York (Mr. Owens) would have had some consideration today. 
Likewise, I also wanted to offer an amendment to allow community 
learning centers to use their funds to implement programs which would 
help immigrant students with language and life skills. Unfortunately, 
we were not allowed to offer these amendments.
  I have several concerns with portions of the bill dealing with 
bilingual and immigrant education. I believe we must dramatically 
increase funding for bilingual and migrant education in order to meet 
the needs of States which are experiencing a large influx of immigrant 
and bilingual students. Also, the bill recommends that students be 
moved out of bilingual classrooms and into English-only programs within 
a matter of 3 years. I believe this provision is overly restrictive and 
has no basis in academic research.

[[Page 8860]]

  I am also unhappy that the bill requires school districts to try and 
receive a parent's permission before putting a child into a bilingual 
education program. Requiring parents to ``opt-in'' in order to place 
their children in bilingual education is truly unfair.
  Mr. Chairman, I think we have a very good education bill before us, 
given that we did work in a bipartisan effort. I know that some of my 
Republican colleagues will be offering amendments to add private school 
vouchers and to also continue the block grant effort. I would urge my 
colleagues to oppose those amendments and to stay with the base of the 
bill.
  Mr. ISAKSON. Mr. Chairman, I am pleased to yield 2 minutes to the 
gentleman from Colorado (Mr. Schaffer), a member of the Committee on 
Education and the Workforce.
  Mr. SCHAFFER. Mr. Chairman, I thank the gentleman for yielding me 
this time.
  I am a cosponsor of H.R. 1, and the reason I am is because the 
President proposed an ambitious plan, a good plan, called No Child Left 
Behind. This plan was adopted in terms of its vision by the Congress 
and translated into a bill titled H.R. 1, and that is the version of 
which I became a cosponsor.
  This is an ambitious plan, and it is one that is balanced in its 
approach to education reform. This is a topic, Mr. Chairman, I take 
quite personally. I have 5 children; 3 of them have been in school, in 
public school in Colorado for about 3 hours, and it is them and their 
peers and children just like them that I think ought to be our primary 
vision and motivation in considering education issues in this bill in 
particular. What the President has proposed was a vision for education 
that spoke directly to them.
  Key provisions of the bill, however, have been ripped out of the 
President's plan by the Committee on Education and the Workforce here 
in the House and elsewhere. For example, on the policy page of the 
President's plan, the President outlined the following: ``If schools 
fail to make adequate yearly progress for 3 consecutive years, 
disadvantaged students may use title I funds to transfer to a higher 
performing public or private school.'' This provision, the core 
provision of the President's plan, has been taken out of his proposal.
  The President goes on with respect to flexibility: ``Under this 
program, charter States and districts would be freed from categorical 
program requirements in return for submitting a 5-year performance 
agreement to the Secretary of Education.'' This provision has been 
stripped from the bill.
  Fortunately, today here on the floor, there are a number of 
amendments that were made in order that allow the President's vision to 
be restored to, in fact, secure for the President a victory out of the 
jaws of what appeared to be imminent defeat. We will have, for example, 
an opportunity to vote on a limited Straight A's provision which allows 
flexibility to seven States. This is a watered-down provision from what 
the President proposed, but important, nonetheless, for us to adopt.
  Our failure to adopt these important amendments would be a betrayal 
to our President and I am hopeful, Mr. Chairman, that we will honor the 
President's vision to leave no child behind by restoring his bill here 
on the House Floor.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentlewoman from California (Mrs. Davis), a member of the 
committee.
  Mrs. DAVIS of California. Mr. Chairman, I want to thank the 
leadership on both sides, because they have worked diligently to create 
a document that would focus Federal funds on those students who are 
most needy.
  While each of us would like to see changes in language or additions 
to the program, it is important to respect the restraints of these 
compromises and reject attempts to commit major surgery that would kill 
the patient. Studies small classes with high quality teachers. One of 
the most critical focuses of this bill is to infuse significant funding 
into professional development for educators.
  I want to speak in support of one such program that I believe has the 
potential to dramatically raise the overall performance of teachers, 
inspiring good teachers to become excellent teachers.

                              {time}  1200

  While it is not contained in the House bill, it is part of the Senate 
bill and will be before the conference committee.
  This is the authorization of funding for the National Board for 
Professional Teaching Standards, which would support a portion of the 
application fees so teachers can engage in the demanding year-long 
demonstration of their accomplishment in the act of teaching.
  I particularly support funding to conduct outreach for the program 
because I believe it is a program that can uniquely energize increasing 
professional expertise for all teachers, and improve the culture of 
teaching in schools.
  Teachers seeking this certification have to justify the decisions 
they make every day on how they teach and respond to children of 
diverse backgrounds, learning styles, and achievement levels. They 
answer these questions in writing and through videotape portfolios of 
their own interaction with students. One of the most critical elements 
is the follow-up self-reflection critiquing their own performance. 
Teachers who have survived this rigorous process repeatedly tell me 
that just doing it has made them better teachers.
  Mr. Chairman, we need to give incentives to those teachers, 
especially in the very schools targeted in this bill, so that they will 
have the opportunity to demonstrate their accomplished teaching skills.
  Mr. ISAKSON. Mr. Chairman, I yield 2 minutes to the gentleman from 
Arkansas (Mr. Hutchinson).
  Mr. HUTCHINSON. Mr. Chairman, I thank the gentleman for yielding time 
to me.
  Mr. Chairman, I support the education initiative that is before us 
because it provides more funds for education, provides assessments of 
the progress of students, and it provides more flexibility to the 
States. But it does more, in my judgment, than justify support. It does 
something for teachers.
  My son, Seth, this week is graduating from the public schools in Fort 
Smith. He has done well, but he has done well to a large extent because 
of one teacher who went the extra mile to help him out. He provided a 
difference. His name is Mr. Larry Jones. He gave extra hours, and was a 
career-minded, student-oriented teacher who made a difference in 
someone's life. Yet, he received no more pay for his extra ability and 
devotion.
  Quality teachers in my judgment should be paid well, encouraged, and 
rewarded for their success. This bill includes a provision in title II 
that I worked on with the committee that allows States and school 
districts to obtain funding for professional development of teachers; 
pay differentiation, which rewards teachers' individual efforts based 
upon leadership, student achievement, and peer review; and it also 
provides new approaches, funding for new approaches to provide teachers 
with optional career paths, such as career, mentor, and master teacher 
designations.
  Mr. Chairman, I support this legislation because it acknowledges that 
teachers are the heart and soul of our education system and should be 
rewarded and encouraged for their efforts. I hope we can keep teachers 
in the teaching profession making a difference in the lives of 
students. I believe this legislation does that. I ask my colleagues to 
support it.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentlewoman from California (Ms. Eshoo).
  Ms. ESHOO. Mr. Chairman, I thank the gentleman for yielding time to 
me.
  First, I want to salute the leadership of the committee, both the 
gentleman from Ohio (Chairman Boehner), and the gentleman from 
California (Mr. George Miller) on our side of the aisle. I do not think 
there is a Member of the House of Representatives that has the passion 
and the eloquence and

[[Page 8861]]

is such a virtuoso as the gentleman from California (Mr. George 
Miller), so we thank him for his work. We are all grateful to him.
  Mr. Chairman, this last Saturday in my congressional district in Palo 
Alto, California, the Board, the Student Advisory Board for 
California's 14th Congressional District, presented their annual report 
to the community.
  This year, the 25 exceptional high school students on the Board 
decided to focus on one of the most critical issues of our time, 
education. They specifically analyzed recruitment and retention of 
teachers.
  Their proposal included a number of important initiatives, including 
loan forgiveness, integrated housing and transportation for teachers, 
scholarships for college students who agree to teach after their 
graduation, a national teacher academy, Federal grants for continued 
learning, and skill-based bonuses.
  I bring their ideas to the floor of the House today because it is not 
only important to heed their voices, but because I believe this bill 
represents a beginning of what we can do for education, and some of 
their ideas are in this bill.
  The underlying bill is a good bill, it is a balanced bill, and it is 
a bipartisan bill. It includes a 66 percent increase in teacher 
training and class size reduction. It includes $1 billion for 
technology programs, a $128 million increase from current law, and $55 
million more than the President's plan.
  I am pleased that it does not include vouchers. Seventy-one percent 
of California voters last year chose not to have a State voucher plan 
because they siphon off some of the most important funding for 90 
percent of our students in our country that are in the public education 
system.
  The bill does have its shortcomings. We should fully fund IDEA. We 
should have school construction. We should take that up after this 
bill.
  I support the underlying bill. I thank the leadership of the 
Committee, especially our magnificent gentleman from California (Mr. 
George Miller), and I urge our colleagues to vote for it.
  Mr. ISAKSON. Mr. Chairman, I am pleased to yield 4 minutes to the 
gentleman from Delaware (Mr. Castle), the chairman of the Subcommittee 
on Education Reform and a tireless worker on behalf of President Bush's 
desire to leave no child behind.
  Mr. CASTLE. Mr. Chairman, I thank the gentleman from Georgia for his 
kind introduction, and I thank everyone who worked on this bill; of 
course, the gentleman from Ohio (Mr. Boehner) and the gentleman from 
California (Mr. George Miller), but also including the staff. They have 
done tremendous work here.
  This week, the House takes the next step toward the enactment of H.R. 
1, the No Child Left Behind Act of 2001, our best effort to navigate 
the philosophical differences between our parties and realize our 
shared vision of a better future for all children.
  Prior to 1965, many poor and minority students were denied access to 
a quality education. In effect, this country had a two-tiered 
educational system, one with low expectations for poor and minority 
students and high expectations for others.
  Then Washington got involved. Now, after 35 years and more than $130 
billion of well-intentioned Washington spending, we have yet to close 
the achievement gap between disadvantaged students and their more 
affluent peers. We have allowed ourselves to believe that some children 
are simply beyond our reach. As a result, this Nation has suffered.
  Today, with the consideration of H.R. 1, we have rededicated 
ourselves to the notion that all children can learn, and we begin the 
reforms to ensure that no child is limited by a high school education 
that does not provide him or her with the necessary skills to read and 
write well. The No Child Left Behind Act of 2001 fundamentally changes 
our system of education to enhance accountability and focus on student 
achievement. It increases flexibility, expands options for parents, and 
ensures that all reforms are tested by scientific research.
  Specifically, H.R. 1 builds on the 1994 authorization, focusing on 
what will be taught and what should be learned at the State and local 
levels, and it asks schools to demonstrate their ability to drive 
student results by measuring how well or poorly students perform from 
one year to the next in reading and math.
  Although the bill is careful to preserve a State's ability to design 
or select its own standards and assessments, the data required by H.R. 
1 will help parents, teachers, and other school personnel intervene as 
soon as a student begins to falter, not after several years of failure.
  This is essential. As Lisa Graham Keegan, superintendent of Arizona 
Public Schools, testified before my subcommittee, these tests are not a 
punishment for students, teachers, or even the school, they are 
assessment tools. Without them, we simply cannot measure progress and 
we cannot have accountability.
  Yet, some have raised concerns about the tests in their own States. 
To the extent there are problems such as low standards and cheating, 
they should be addressed.
  That said, I firmly believe that these concerns should not call into 
question the need to measure progress. I hope we will focus on our 
attention on how best to use these tests to enhance student 
achievement.
  H.R. 1 also requires each State to sample students in fourth and 
eighth grade with the National Assessment for Education Progress, or 
another independent test of the State's choosing, to confirm the 
results of the State's assessments. Since the standards and assessments 
are developed at the State level, I believe a national measure is 
critical to help the public monitor the quality of standards and 
assessments in various States.
  Currently, NAEP is the only test that will allow comparison between 
States and student groups, and is the best barometer of student 
achievement. Most Members of Congress use NAEP data to demonstrate our 
Nation's education failures. While I feel the need to preserve the 
balance of the agreement, I hope to work with my colleagues to better 
inform them about NAEP and to ensure that we do not inadvertently 
promote low standards students with other independent assessments.
  Let me state unequivocally that any effort to strike or weaken the 
test provisions of the H.R. 1 would play into the hands of the keepers 
of the status quo, effectively preserving a failed system that does not 
ask if children are learning. A vote against testing would strike at 
the heart of President Bush's accountability system. I urge all Members 
to oppose any such amendment.
  H.R. 1 also seeks to address the current lack of accountability for 
education failure. For our public schools, wherein 90 percent of our 
children are educated, we provide Federal dollars and technical support 
as soon as they begin to fail. Yet, after time and assistance, H.R. 1 
recognizes that some schools, by virtue of mismanagement or chronic 
neglect, have not only failed to increase student achievement but have 
actually retarded educational progress. For these schools, we require a 
substantial restructuring.
  More importantly, we give the children a chance to learn by allowing 
them to immediately transfer to another, better-performing public or 
charter school. In addition, we allow students to take their share of 
Title I dollars to a private entity for tutoring or remediation 
services to ensure that they get the help that they need.
  Finally, H.R. 1 grants new flexibility to States and local school 
districts, and vests additional power in the hands of practitioners, 
not bureaucrats.
  I urge everyone to support this legislation and to oppose the testing 
amendment.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from Oregon (Mr. Wu), a member of the Committee.
  Mr. WU. Mr. Chairman, I would like to speak for a moment about H.R. 
1, which I consider to be a good bill, but one which could be even 
better.
  There are two notable omissions from this bill: a freestanding effort 
to

[[Page 8862]]

reduce class size, and a freestanding effort to build new schools or to 
repair crumbling schools.
  Class size reduction efforts are included in this bill, but they 
compete, they compete with teacher quality and teacher training 
programs. I submit to the Members that no school, no parent, should 
have to choose between having a quality teacher and a small class size, 
which promotes learning and teaching. This is the only way that we can 
truly leave no child left behind.
  Many Members know that many parents choose to send their children to 
private school substantially in part to get the benefits of smaller 
class size. But all children should have the benefit of this kind of 
education, a small class and a quality teacher.
  Small class size, reducing class size, was a freestanding effort lost 
in the Senate by 50 to 48, and we were not permitted to bring that 
amendment to this floor. I urge the conferees to restore the 
freestanding program in the conference committee.
  This program has fallen victim to politics associated with the 
Clinton administration. I think that is extremely unfortunate, because 
this is not a Clinton idea, this is a commonsense idea, one which 
benefits all children across America, and we should restore it to this 
bill any way we can.
  The CHAIRMAN. Without objection, the gentleman from Ohio (Mr. 
Boehner) will reclaim his time.
  There was no objection.
  Mr. BOEHNER. Mr. Chairman, I am pleased to yield 4\1/2\ minutes to 
the gentleman from Michigan (Mr. Ehlers), a member of the committee.
  Mr. EHLERS. Mr. Chairman, I thank the gentleman for yielding time to 
me. I also thank him for good service as the chairman of the committee 
on a very difficult bill.
  Mr. Chairman, I am not only thankful for his service, and that of the 
gentleman from California (Mr. George Miller), the ranking member, but 
I am also thankful that we have a good President who supports improving 
education, and supports it not just because it is a major campaign 
issue, but supports it from his heart. He also understands the 
appropriate Federal role, and his work on this reflects that.
  We need flexibility and accountability. We need respect for local and 
State rights and responsibilities. Again, I say that from my heart, 
because I have served in local, State, and Federal government. This 
bill provides that flexibility. It also provides that accountability. I 
urge this body to vote for that bill.
  Mr. Chairman, my interest in education extends back many years. I 
served for 22 years as a professor at the University of California at 
Berkeley and at Calvin College. My interest in this bill's particular 
aspect of education developed some 36 years ago when I became involved 
in working with teachers in elementary schools, trying to improve 
science education.
  This arose very naturally from my background as a scientist. I have 
taught National Science Foundation summer institutes for elementary 
school teachers. I have worked in schools with the teachers and the 
students. I believe I have a good understanding of the issue.
  I think it is extremely important that we improve our science 
education in this Nation, not just because I am a scientist, but 
because that is where the jobs of the future are. We currently have 
over 300,000 open jobs in this Nation for scientists, engineers, 
technicians, and those jobs are not being filled because we are not 
training the people.
  This bill will help to train our children so they will qualify for 
those jobs in the future. I think that is an extremely important aspect 
of the bill. But we do have to strengthen the bill a bit because, 
although the bill asks States to set standards for science, it does not 
require assessments of student's learning of science.
  We hope to take care of that problem in a colloquy which the 
gentleman from Ohio (Mr. Boehner) and I will engage in in just a 
moment. The Senate has included science assessments in their bill. We 
had it in the original bill. It unfortunately is not in the current 
bill before us, but we are hoping through the colloquy to make sure 
that is in the bill when it reaches the House for consideration of the 
conference report.
  Let me also make one last comment about ``Leaving no child behind.'' 
I believe that it is very important to apply that principle to all 
those who have learning difficulties but are still learning-able. I am 
referring specifically to dyslexia, in which I have a deep interest 
because I have a grandchild who has dyslexia. This tie I am wearing 
today came from a private institution which offers training in 
dyslexia. My grandson is also in a private school which specializes in 
dyslexia. We are simply not doing the job in public education to take 
care of these students, and we must in the future.

                              {time}  1215

  Mr. Chairman, I would like to enter into a colloquy with the 
gentleman from Ohio (Mr. Boehner), chairman of the Committee on 
Education and the Workforce.
  As the gentleman from Ohio knows, I had filed an amendment to restore 
the science assessment provisions that were included in H.R. 1, as 
introduced, that would essentially mirror the science assessment 
language in the Senate bill.
  Specifically, my amendment would have required States to assess 
student performance in science by the 2007-2008 school year. A similar 
amendment was offered in the last Congress to H.R. 2, where it passed 
with a vote of 360-62.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. EHLERS. I yield to the gentleman from Ohio.
  Mr. BOEHNER. That is correct. I am very familiar with the gentleman's 
amendment.
  Mr. EHLERS. Mr. Chairman, reclaiming my time, I understand the 
gentleman supported making this amendment in order and that it was left 
out in the amendments that we are considering in this bill.
  Mr. BOEHNER. If the gentleman will continue to yield, the gentleman 
has been a leader in improving science education in our Nation's 
schools, and I was looking forward to working with the gentleman to 
debate this issue on the floor. Unfortunately, the amendment was not 
made in order.
  Mr. EHLERS. Would the gentleman agree to include the science 
assessment amendment in the conference committee to H.R. 1?
  Mr. BOEHNER. As the gentleman noted, similar language is in the 
Senate bill, and I would pledge to work with the gentleman from 
Michigan (Mr. Ehlers) when we get to conference to ensure ESEA 
legislation reflects our Nation's dire need for closing the 
international achievement gap in math and science.
  Mr. Chairman, I pledge to work to develop concrete strategies to 
address this important need.
  Mr. EHLERS. Mr. Chairman, I thank the gentleman from Ohio for 
yielding the time, and I thank him for his leadership. I look forward 
to continuing our work together, not only on this amendment, but also 
on the entire bill.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from North Carolina (Mr. Price).
  Mr. PRICE of North Carolina. Mr. Chairman, this education bill 
represents the first real bipartisan effort of this Congress. I commend 
the leaders from both sides of the aisle who have put it together. I 
just hope it stays bipartisan for the sake of our children and our home 
communities.
  The bill will help local school districts meet some of our most 
pressing education challenges. There is a strong emphasis on early 
reading and a commitment to title I and special education funding. The 
bill expands public school choice, which is welcome news in my district 
where magnet schools have been especially successful. The bill also 
provides resources and specific remedies to turn around low-performing 
schools.
  In these next hours of debate, we are going to face amendments that 
could derail this bipartisan success. We will face an amendment to 
provide public funding for private school vouchers,

[[Page 8863]]

which would siphon money away from public education, not strengthen it.
  We will face amendments to weaken the link between dollars and 
results. We must maintain accountability to ensure that our children 
are learning.
  Of course, when you have a truly bipartisan piece of legislation, no 
one gets everything he or she wants. I would have liked to have seen 
more attention paid to reducing class size. We know that smaller class 
size improves student learning, especially in the early years. We need 
to build more schools and hire more teachers to get class size down and 
to improve the quality of what is going on in the classroom.
  Schools in my area are bursting at the seams with thousands of 
students going to school in hundreds of trailers. We have crumbling 
classrooms and outdated facilities. Over 90 percent of children in 
kindergarten through third grade in my district are learning in 
overcrowded classrooms. There are 24,000 children trying to learn in 
classrooms with 25 or more students.
  So we need local school districts to build more schools; and when new 
classrooms are built, we need quality teachers to teach in them.
  In my State, we have a staggering need to hire 80,000 new teachers in 
the next 10 years. I actually think that the teacher shortage is the 
education issue of the next decade, and neither party has paid 
sufficient attention to it. Without quality teachers in the classroom, 
no other education reforms we talk about are going to work.
  But today, Mr. Chairman, we have a chance to take an important first 
step, a bipartisan step in the right direction. We can improve American 
public education in this country together. Vote for the bill and 
against crippling amendments.
  Mr. BOEHNER. Mr. Chairman, I yield 2 minutes to the gentleman from 
Mississippi (Mr. Wicker).
  Mr. WICKER. Mr. Chairman, I rise to enter into a colloquy with the 
gentleman from Ohio (Mr. Boehner), chairman of the Committee on 
Education and the Workforce.
  The current language of H.R. 1 requires that a school identified for 
improvement must provide all students enrolled in that school with the 
option to transfer to another public school within the same local 
educational agency.
  I am concerned that this language may not provide public school 
choice to students in many rural areas. For example, in my mostly rural 
congressional district, a school district is often comprised of a 
limited number of schools, sometimes including only a few elementary 
schools and one high school.
  With few schools from which to choose, there is little or no choice 
within the same school district and, therefore, no relief for those 
students.
  Mr. Chairman, I am hopeful that as the legislative process continues, 
the bill can include language such as I proposed to the Committee on 
Rules which will allow a student trapped in a failing school to 
transfer to another public school, regardless of the school district.
  Will the chairman continue to examine this issue during the 
conference with the Senate?
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. WICKER. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I would be happy to work with the 
gentleman from Mississippi (Mr. Wicker) to address this issue in 
conference. H.R. 1, as we know, provides for within district school 
choice and then allows for the establishment of cooperative agreements 
with neighboring school districts, to the extent practical, if there 
are no higher-performing schools in the original district.
  I understand the gentleman's concerns about meaningful public school 
choice in rural areas where choices are limited, and I can assure the 
gentleman that I will work in conference towards giving students at 
low-performing schools the option of transferring to another public 
school outside of their current school district.
  Mr. WICKER. Reclaiming my time, I thank the gentleman for this 
assurance.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
California (Ms. Sanchez).
  Ms. SANCHEZ. Mr. Chairman, I am pleased to speak in support of this 
legislation. This bill is proof that friends on both sides of the 
aisle, even those who may not agree often, can come together in a 
bipartisanship way to accomplish a goal.
  We cannot hold public schools accountable for improving education 
unless we give them the funds to ensure that they can meet those goals. 
I believe that this bill does both.
  Mr. Chairman, H.R. 1 authorizes $24 billion in funding for our 
national kindergarten through 12th grade education programs, a 29 
percent increase over the current fiscal year, much more than the 
funding levels provided by President Bush's own budget.
  The bill doubles title I funds over the next 5 years to $17.2 
billion, and it includes real support for teacher training.
  I am reminded, 2 years ago when then-Vice President Al Gore was in my 
district and we were talking about school construction, we asked a 
young student about 12 years old what was the most important thing she 
was looking forward to in her classroom and she said, well, everybody 
knows, Congresswoman, that the quality of the teacher is the most 
important thing for a child to learn.
  I am excited that we are doing something about teacher training. This 
bill also removes provisions diverting funds from public schools, 
whatever the newest name for them are, including private school choice. 
Vouchers do not support the vast majority of the students in the United 
States.
  I am reluctant to support some parts of this legislation, but, 
overall, I am very proud of the work that my fellow members of the 
Committee on Education and the Workforce have done. And I commend both 
the gentleman from Ohio (Mr. Boehner) and the gentleman from California 
(Mr. George Miller) for having made this bill possible, because truly 
without both gentlemen, this would not have gotten done.
  Today, the House has a rare opportunity to get some real work done, 
and I urge my colleagues to support H.R. 1.
  Mr. BOEHNER. Mr. Chairman, I yield 3 minutes to the gentleman from 
Washington (Mr. Nethercutt).
  Mr. NETHERCUTT. Mr. Chairman, I thank the gentleman from Ohio (Mr. 
Boehner) for yielding the time.
  Let me first thank the gentleman for all the hard work he has done in 
putting together a truly bipartisan education bill.
  Mr. Chairman, I would request that the gentleman from Ohio (Mr. 
Boehner) enter into a colloquy with me.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. NETHERCUTT. I yield to the gentleman from Ohio.
  Mr. BOEHNER. I would be happy to do so.
  Mr. NETHERCUTT. Mr. Chairman, reclaiming my time. I come before the 
House today to draw the gentleman's attention and the attention of the 
Committee on Education and the Workforce to the Star Schools program. I 
believe the Star Schools program has served students in my district and 
throughout the country very well.
  The Star Schools program is a distance-learning network which gives 
students the opportunity to take classes they have never had before.
  As many of my colleagues know, many small, rural and underserved 
urban school districts cannot afford to hire teachers to offer a wide 
variety of classes.
  In small school districts, distance-learning programs are often the 
only opportunity students have to take advanced math and science or 
foreign language classes necessary to apply to college. Underserved 
urban school districts are often unable to find or afford qualified 
teachers to offer students unique and upper level courses.
  The distance-learning programs offer a cost-effective way to level 
the playing field for all students, offering them the opportunity to 
take the same classes as their peers in larger and better-funded 
schools.

[[Page 8864]]


  Mr. BOEHNER. Mr. Chairman, if the gentleman will continue to yield, I 
want to thank the gentleman from Washington (Mr. Nethercutt) for 
bringing this to my attention and talking about the importance of 
distance learning.
  I believe strongly that distance learning is an important tool for 
many local school districts and students. And for this reason, this 
legislation places strong emphasis on distance-learning programs in the 
education technology grant program.
  Mr. NETHERCUTT. Mr. Chairman, I thank the gentleman for his comments.
  Mr. Chairman, I visited STEP Star, which is the distance-learning 
program operated by Educational Service District 101 in my own 5th 
District of Washington. Their program is very impressive. STEP Star and 
all Star Schools programs provide an irreplaceable education resource 
to our rural school districts. STEP Star, which is partially funded 
through the Star Schools program, has made it possible for students in 
rural school districts, in my district and around the country, to take 
a variety of classes from a live teacher, whom they can interact with 
and ask questions of.
  Outside of the class hour, programs like STEP Star allow students to 
talk with teaching staff. Online resources provide for instant exchange 
of electronic paperwork. Students can communicate with teachers and 
tutors through e-mail or participate in discussions with fellow 
classmates through bulletin boards.
  So, once again, I thank the gentleman from Ohio for his support of 
distance-learning programs; and I just ask that as he moves forward 
with this legislation, to keep in mind the importance of ensuring that 
distance-learning programs remain affordable to the most vulnerable 
students and school districts, rural, small, and underserved urban 
districts.
  Mr. BOEHNER. Mr. Chairman, I thank the gentleman for his comments and 
pledge to work with the gentleman on this and other programs as we get 
into the conference.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from New 
Jersey (Mr. Holt).
  Mr. HOLT. Mr. Chairman, I thank the gentleman from Michigan (Mr. 
Kildee) for yielding the time to me, and I commend him and the 
distinguished Members from California and Michigan, as well as the 
gentleman from Ohio (Mr. Boehner), chairman of the Committee on 
Education and the Workforce, for their sincere effort to put together a 
bipartisan bill.
  We are looking back now over the years of the Elementary and 
Secondary Education Act. Congress has amended, expanded, streamlined, 
revised the ESEA eight times creating programs to help migrant 
children, neglected and delinquent youngsters, limited English 
proficient students, and other special children.
  Programs have been launched to enhance math and science instruction 
and rid the schools of drugs and violence. Smaller ESEA programs have 
been created to advance school desegregation, stimulate educational 
innovation and achieve other important purposes.
  However, the face of American education has changed in many ways over 
the past 30 years. One way it is changing right now that has been 
addressed earlier but cannot be emphasized too much is that over the 
next 10 years, we will need to recruit, train and hire 2.2 million new 
teachers, 2.2 million, just to keep up with attrition and retirement.
  Mr. Chairman, I would also say that success in the information age 
depends not just on how well we educate our children generally, but how 
well we educate them in math and science specifically.
  The majority of these new teachers will be called on to teach math 
and science. I am proud to have served on the National Commission on 
Mathematics and Science Teaching chaired by former astronaut and 
Senator John Glenn.
  The Glenn Commission calls for major changes in the quality, 
quantity, and professional work environment of our math and science 
teachers.
  Although not on the same scale as in the bill that the gentlewoman 
from Maryland (Mrs. Morella) and I produced from the Glenn Commission, 
this bill includes new math and science partnerships that mirror what 
we set out to do in the Glenn Commission. It is an excellent start on 
focusing the attention on math and science education.
  The gentlewoman from Illinois (Mrs. Biggert) and I, also in 
committee, put together a bipartisan amendment to strengthen math and 
science partnerships.
  Going farther, one of the main recommendations of the Glenn 
Commission was to establish regional academies that would recruit 
talented, mid-career professional and recent graduates in math and 
science teaching. Unfortunately, that recommendation is not in this 
bill, and the rule did not allow that and many other important areas to 
come for debate.
  Mr. BOEHNER. Mr. Chairman, I yield 2 minutes to the gentleman from 
Indiana (Mr. Souder), a member of the Committee on Education and the 
Workforce.

                              {time}  1230

  Mr. SOUDER. Mr. Chairman, I want to make it clear at the beginning of 
my remarks that I strongly support our President. I think he is doing a 
great job. I strongly support the gentleman from Ohio (Mr. Boehner), 
our committee chairman. I think he has done a great job in a very 
difficult situation. But I rise to oppose this education bill, Goals 
2001.
  I remember as a kid, I heard President Nixon say we are all 
Keynesians now. Right now I kind of feel like what we are saying is we 
are all liberals now in education. The fact is, in this Goals 2001, 
this current bill, unlike Goals 2000 where we were supposed to have the 
States evolve towards a national plan, we have a national plan.
  Unlike the spending in education under former President Clinton, this 
bill spends more. Unlike the education bills under President Clinton 
where there was a proposal to just develop and look at a national test, 
this has national testing; and it has it for 6 years in a row, mandated 
by a backup of the Federal Government that, if one's State test does 
not meet the national standards, one can have one's money jerked.
  Furthermore, it will lead to, in my belief, a national curriculum. 
There are more new programs in this bill than there were under 
President Clinton. At some point, one says when is it a bipartisan bill 
and when is it just taking two-thirds or more of what the Democrats had 
proposed in the past?
  Now, there are some amendments here that could change the bill. The 
amendment of the gentleman from Michigan (Mr. Hoekstra) would wipe out 
the testing and put us back to where we were under President Clinton. 
The amendment of the gentleman from California (Mr. Cox) would have the 
spending be only a little bit more than under President Clinton. The 
bill of the gentleman from Texas (Mr. Armey) would take us back to 
where we were as Republicans last year on school choice. The bill of 
the gentleman from South Carolina (Mr. DeMint) would take us, not quite 
back to where we were last year, but at least to the Kennedy position 
in the Senate.
  I know there are not going to be very many conservatives who are 
going to stand up under the pressures that we are under, and against 
the polls, and oppose this bill. I do not know whether there will be 
five of us, whether there will be 10 of us, or whether there are 20 of 
us; but there are some of us who are going to say that there are still 
Republicans who are conservative on the education issue, as on other 
issues.
  Mr. KILDEE. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Wisconsin (Mr. Kind).
  Mr. KIND. Mr. Chairman, I thank the gentleman from Michigan for 
yielding me this time.
  Mr. Chairman, as a member of the Committee on Education and the 
Workforce, I rise in strong support of the underlying core bill, H.R. 
1, the Elementary and Secondary Education Reauthorization Act.
  Let me be clear though, we have a lot of good schools, a lot of good 
school

[[Page 8865]]

districts, a lot of good students doing incredibly well in the public 
education system throughout our country. I am particularly proud of the 
education system we have in the State of Wisconsin and my district that 
I represent in western Wisconsin. But there are also a lot of students 
in need, a lot of schools and school districts in need. That is what 
this bill is meant to address.
  The underlying provisions of this bill, I believe, are very good and 
receiving wide bipartisan support for good reason. It does retain 
targeting for the most disadvantaged students throughout the country. 
It increases resources in key programs. It does consolidate a lot of 
the programs that exist at the Federal level, but consolidates it with 
added flexibility to local school districts.
  It has an emphasis on early childhood reading programs. It recognizes 
the importance of professional development programs for our teachers, 
but also an area that is of particular concern for me, professional 
development of the leadership of our schools, principals and 
superintendents.
  It recognizes the need for research-based education programming and 
the important role that technology brings in educating our children 
today. It also contains measurements, measurements which will hopefully 
be used for diagnostic purposes with enough remediation resources in 
order to lift students who are underperforming in our school districts, 
rather than as a means to just punish schools and our students.
  But there is still work that needs to be done. There are some glaring 
absences in this education bill, not least of which is pre-K education 
programming. There was an excellent study that came out of the 
University of Wisconsin just a couple of weeks ago that was published 
in the Journal of American Medical Association that I would reference 
my colleagues to, talking about the advantages and the benefits of a 
good focused pre-K education program. We also need to do a better job 
and a more efficient job of the education research programs that exist 
right now.
  But perhaps the most glaring weakness of the bill is that we are not 
living up to our responsibility for special education funding in this 
country. The gentlewoman from Oregon (Ms. Hooley) and I offered an 
amendment to get the Federal Government to live up to our 40 percent 
responsibility of special education funding for local school districts. 
That amendment was not made in order.
  We hope to be able to work as the appropriation process moves forward 
this year in getting enough of our colleagues to recognize the 
importance of the Federal Government to live up to our cost share for 
special education expenses.
  If we can do one thing that will free up more resources, increase 
flexibility to local school districts, it is for us to live up to that 
40 percent cost share rather than the slightly less than 15 percent 
that we currently have today. So we have more work to do this year, but 
H.R. 1 is a good start.
  Mr. BOEHNER. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Kentucky (Mr. Fletcher), a member of the committee.
  Mr. FLETCHER. Mr. Chairman, I appreciate the opportunity to speak on 
this very important subject. I think we all would probably agree that 
the education of our children is one of our greatest responsibilities.
  Let me say thanks to the gentleman from Ohio (Chairman Boehner) for 
all of his work, an amazing accomplishment as we pass this bipartisan 
bill out of the House Committee on Education and the Workforce.
  Folks have said, well, it is not perfect. Of course it is not. But it 
is a very, very good product and a great step in the right direction. 
Does it please everyone? No, but I think it does an outstanding job to 
change the direction of education in this country, the first change we 
have had in probably about 30 years.
  The President has established the principles, and I think this bill 
meets those principles. There are a few things that we might work on as 
we amend it to try to give students more choice. But right now, the 
focus that I think we need to look at, too, is particularly on the 
educational gap that we have in this country.
  When I look at minorities and look at only 36 percent of minorities 
being able to read on grade level by the fourth grade, we have a 
problem, a serious problem, an unacceptable problem. I believe this 
legislation, this initiative by the President, will help address that 
problem, a problem that I would say has been largely ignored over the 
last several decades.
  The gap has not decreased. We have not offered the kind of help in 
education to empower minorities in this country that we should. I think 
it is a reflection of some soft discrimination that lowers 
expectations, that we need to make sure that that is stopped and that 
we raise expectations, the accountability, the focus on literacy which 
is needed in this country greatly to make sure that the minorities 
close that gap.
  We have seen that happen in Texas under the President's leadership. I 
believe it can happen nationally, and I think that is one of the 
strengths of this bill is to say let us stop that soft discrimination. 
Let us provide the kind of educational opportunities we need to provide 
to the minorities in this country so that we give them the kind of 
freedom for those children to be all that they can be.
  Let me say this, with the flexibility it offers, it is the very thing 
we heard on our education hearing we had in Lexington, Kentucky. We had 
a hearing on minority education in Lexington, Kentucky, at Booker T. 
Washington. One of the things we heard from a teacher, Richard Greene, 
was that give us the flexibility locally that we need to take these 
children to mentor them, to provide the kind of education that they 
need, because he does that. He has seen lives turned around.
  I believe this education bill will give greater opportunities to make 
real differences in the lives of those students and allow that teacher, 
Richard Greene, to provide that mentoring and opportunity to those 
students to give them the opportunity again to reach their full 
potential and be all they can be.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from New 
Jersey (Mr. Andrews).
  Mr. ANDREWS. Mr. Chairman, this Congress, led by the gentleman from 
Ohio (Chairman Boehner) and the gentleman from California (Mr. George 
Miller), has come together to produce an agreement that I believe will 
make America's public schools better, and I am pleased to support it.
  This bill introduces a new principle into Federal education policy; 
and that is, as we increase resources to public schools, we also 
increase responsibility. We require schools that have not measured up 
to figure out how to measure up, and we make a promise that the 
resources will be provided to make that measurement happen.
  I am particularly pleased that, with the cooperation of the majority, 
we have made efforts in this bill to expand opportunities to use 
Federal resources for pre-kindergarten education. Under a provision of 
the manager's amendment, which I worked on with the gentleman from Ohio 
(Mr. Boehner), schools will be able to use monies under title IV of 
this bill to provide quality pre-kindergarten education.
  Also, under title I of this bill, the bill clarifies that, in whole 
school reform, pre-K monies may also be used. I also appreciate the 
fact that the majority worked with my efforts to provide funding for 
peer mediation programs so that school violence can be curtailed.
  We are going to work together to pass this bill, Republican and 
Democrat. We will work together and send it to the President's desk. I 
believe that schools and students all across the country will be better 
for it. I urge my colleagues to support this bill.
  Mr. KILDEE. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Tennessee (Mr. Ford).
  Mr. FORD. Mr. Chairman, I thank the gentleman from Michigan (Mr. 
Kildee) for yielding me this time.
  Mr. Chairman, I thank the gentleman from Ohio (Mr. Boehner) and the 
gentleman from California (Mr. George

[[Page 8866]]

Miller) for all the hard work that was expended in crafting a 
compromise between the two parties.
  I will say that I plan to support this legislation for many of the 
reasons enumerated already, particularly by the gentleman from New 
Jersey (Mr. Andrews) and the gentleman from Wisconsin (Mr. Kind).
  I will add that I am a little disturbed and concerned about three 
issues, Mr. Speaker. One is the enormous gap between the funding levels 
provided in the authorization, and we all use all this terminology 
here, meaning, for those who are watching at home, if there is anyone 
watching at home, the amount of money that we said we would spend and 
the amount of money that we intend to spend.
  The amount of money that we said we want to spend, we indicated in 
the committee. The amount of money that we intend to spend was decided 
on the floor not long ago when we passed the budget resolution offered 
by the majority. The problem is there is an enormous gap between what 
we said we want to spend and what we actually intend to spend.
  So all of this sounds great, but until the appropriators come to meet 
and decide on what that level of funding would be, we face a problem.
  Two, we constantly complain in this body about how the Federal 
Government is not living up to its responsibility with local 
governments in terms of providing dollars for special education, or 
IDEA as we call it.
  I hear from educators all across my district, Democrats, Republicans, 
those who teach in schools where one has a large swath of poor kids and 
those who teach in districts where one has middle-class or upper-income 
students.
  The former chairman of our committee from Pennsylvania, who was a 
good man, often complained that before we moved as a Congress to enact 
new programs, we ought to live up to our commitment; we the Federal 
Government should live up to our commitment to provide up to 40 percent 
of funding for IDEA. We are not doing that. Not only are we not doing 
that, but amendments were blocked by the majority.
  The last two points: the most urgent challenge we face in the great 
State I am from, Tennessee, and the area I am from, Memphis, is 
building new schools. No money is provided for that and no opportunity 
to bring an amendment for that.
  Lastly, class size reduction. I had the opportunity to speak at one 
of the finest schools in my district's graduations. Thirty-six students 
graduated. Wonderful class. The kids are all going to go on to college. 
I will speak at a few other graduations in the coming days.
  As I hear fourth and fifth grade teachers complain about teaching 25 
to 30 students, I cannot help but think why the majority would not 
allow an amendment to deal with class size reduction.
  Again, I intend to support this bill; but I submit to this Congress, 
if 5- and 6- and 7-, 8-, 9-, 10-, 11-, 12-year-olds could vote, they 
would vote us all out of the place. Because not one of them would 
support learning in a school that was 40 to 50 years old, where water 
does not run, where roofs are falling in. We would not subject 
ourselves to that, and we certainly should not subject our kids to 
that.
  We will pass this bill in the coming days, but I hope we come back 
and do what is right and build schools for kids all across this Nation.
  Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Maryland (Mr. Wynn).
  Mr. WYNN. Mr. Chairman, I thank the gentleman from Michigan for 
yielding me this time.
  Mr. Chairman, we may be actually watching Congress at its best; that 
is to say, that we have managed to, number one, address one of the 
Nation's most pressing concerns, improving our education system; and, 
two, we have done it in a very bipartisan method.
  To that extent, I want to begin by offering congratulations to the 
gentleman from Ohio (Chairman Boehner) for his hard work and also to 
the gentleman from California (Mr. George Miller), a Democratic 
chairman. I think this is a great example of what happens when we work 
together. We deal with the Nation's business. This is not a perfect 
product, however; but it certainly is a very good product.
  The administration, many of my Republican colleagues want to talk 
about accountability. We need to ensure the students perform and the 
schools perform. Those are very good things. My State of Maryland has 
been a leader on the question of accountability. The additional tests 
will help us measure whether our students are achieving or whether we 
are passing them through.
  But in addition to accountability, we also need resources; and that 
is why I am very pleased that additional resources are in this bill for 
title I to help disadvantaged students, also for teacher training and 
class size reduction. I would like a little more for class size 
reduction, but clearly there has been a substantial improvement led by 
the Democrats saying we need resources in addition to accountability.

                              {time}  1245

  Reading, the foundation for educational achievement, is funded 
adequately, and I am very pleased with that. And my personal issue, 
after- school programs, received a substantial increase. We need to 
provide opportunities for young people to have constructive after-
school activities to provide a total environment.
  Let me add that we also have in this bill something called public 
school choice, which is part of the accountability mechanism, and I 
think that is a good idea. Now, we will hear later about private school 
vouchers. I think that is a very bad idea. But giving students the 
opportunity to attend other public magnet schools or charter schools or 
schools that are performing helps enforce accountability. I think that 
is very good.
  Now, this is not a perfect bill, and there are serious concerns on 
the question of school construction and school modernization. We have 
talked a lot about technology. We need more money to modernize our 
schools to utilize the latest technology. But some things are very 
basic in terms of school modernization.
  Some fourth graders standing out on the steps taking a photo-op with 
their Congressman said to me, ``Congressman, we need air-conditioning. 
Because when it gets hot, our teacher gets grouchy.'' And I think that 
is a real good advertisement for school construction. I hope we pass 
this bill.
  Mr. BOEHNER. Mr. Chairman, I yield 1 minute to the gentleman from 
Maryland (Mr. Gilchrest).
  Mr. GILCHREST. Mr. Chairman, I thank the gentleman for yielding me 
this time, and I do want to compliment the President on his efforts to 
make education a high priority in this country. The pillars of the next 
generation rests upon teachers giving knowledge to this new and young 
and curious, inquisitive generation of Americans.
  I want to compliment the gentleman from Ohio (Mr. Boehner), his staff 
and the committee on the struggle that they went through to bring this 
bill to the floor, and there are many good things in this legislation. 
But this legislation is going to be the quintessential example of the 
principle of unintended consequences, and I am referring to the 
accountability part.
  People keep talking about accountability and they use the word 
``accountability.'' That means piling on of tests. And when the 
educational system, especially in local areas, know that there are high 
stakes involved and they know that they are going to get more money for 
a particular school because they pass a particular test, then the focus 
is on the test. When the focus is on the test, we do not observe 
teachers teaching the broad range of knowledge, we observe teachers 
teaching techniques to the test, and then the children are left out.
  So I would urge my colleagues to vote for an amendment when it comes 
up to deal with this issue.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2\1/2\ minutes 
to the gentlewoman from Ohio (Ms. Kaptur).
  Ms. KAPTUR. Mr. Chairman, the relationship between student mobility,

[[Page 8867]]

or transiency, and academic performance warrants significant national 
attention. In certain neighborhoods, especially in our inner cities and 
migrant family situations, rates of family mobility bear a direct 
correlation to student underachievement. According to a 1994 GAO study 
on student transiency, 41 percent of all third graders from low-income 
families in America have attended at least two schools. Nearly one-
fifth of all third graders, nearly one-half million students, have 
attended three or more schools since the first grade.
  Lacking permanent shelter of their own, these children and their 
parents, oftentimes single heads of household, move from place to place 
throughout the school year. Forced to migrate between the homes of kind 
relatives and friends, the children of these families are uprooted from 
the neighborhood elementary school with every move, until the next move 
to yet another temporary location, usually in another nearby 
neighborhood. Our Nation's migrant farm workers know too well the 
constant stress of moving from community to community and taking their 
children out of school multiple times during the school year. Transient 
and migrant families need stability for their children to succeed in 
school.
  Mr. Chairman, I will be placing in the Record key findings from the 
GAO study that documented this phenomenon, Elementary School Children: 
Many Change Schools Frequently, Harming Their Education, and also key 
articles from the Catalyst for Cleveland Schools. Both support the 
findings that residential instability is the key corollary to poor 
student performance.
  The revolving door for mobile students, many experts say, has been 
ignored for too long by educators who accept the notion that there is 
little they can do about it. But with rising consciousness of these 
disruptive patterns, local school systems have begun to focus on how to 
address mobility with specific programs targeted to help these 
multiple-move families.
  As we take H.R. 1 to conference with the Senate, it is my hope we can 
work together to address this issue. During committee markup, the 
gentleman from Ohio (Mr. Kucinich) offered an amendment to deal with 
this problem. The gentlewoman from Cleveland, Ohio (Mrs. Jones) knows 
the critical need for attention to this destabilizing pattern. I look 
forward to working with the chairman, the gentleman from Ohio (Mr. 
Boehner), and the ranking member, the gentleman from California (Mr. 
George Miller), who have been so kind, to offer any assistance I might 
provide.
  The CHAIRMAN. The time of the gentlewoman from Ohio (Ms. Kaptur) has 
expired.
  Mr. BOEHNER. Mr. Chairman, I yield 30 seconds to the gentlewoman from 
Ohio (Ms. Kaptur) to complete her dialogue.
  Ms. KAPTUR. I thank the gentleman.
  Mr. BOEHNER. Mr. Chairman, will the gentlewoman yield?
  Ms. KAPTUR. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I would like to thank the gentlewoman from 
Ohio for her deep interest in this issue and her desire to meet the 
needs of these specific families.
  The gentleman from Ohio (Mr. Kucinich) and the gentlewoman from Ohio 
(Mrs. Jones) have also expressed their concern regarding this issue and 
have asked that I work with them to address the problems associated 
with student transiency.
  I think we can focus on the problem in a bipartisan manner and seek 
solutions that will have broad support in the Congress. I will work 
with the ranking member, the gentleman from California (Mr. George 
Miller) and our counterparts in the Senate to address the issue of 
transient students and the effects that multiple-family moves have on 
those children's education.
  Mr. GEORGE MILLER of California. Mr. Chairman, will the gentlewoman 
yield?
  Ms. KAPTUR. I yield to the gentleman from California.
  Mr. GEORGE MILLER of California. Mr. Chairman, I want to thank the 
chairman for his comments, and I look forward to working with him and 
others in the conference committee to help these families advance their 
children's academic performance, especially by encouraging a range of 
solutions to stabilize their residential situation during the early 
years of learning for their children.
  Ms. KAPTUR. Mr. Chairman, I thank the chairman and the ranking 
member, and I submit for the Record the material I referred to earlier.

              Letter Report from General Accounting Office

                                                 February 4, 1994.
     Hon. Marcy Kaptur,
     House of Representatives.
       Dear Ms. Kaptur: The United States has one of the highest 
     mobility rates of all developed countries; annually, about 
     one-fifth of all Americans move. Elementary school children 
     who move frequently face disruption to their lives, including 
     their schooling. And, sadly, these children are often not 
     helped to adjust to the disruption of a new school--new 
     children, teachers, and principal--and to make sense of the 
     variations in curriculum between the old school and the new. 
     The success of children who change schools frequently may 
     therefore be jeopardized. In addition, as the schools pay 
     greater attention to high academic standards, advocated by 
     national and state leaders, these children may face increased 
     difficulty in achieving success.
       In response to these concerns, you asked us to obtain 
     information on children who change schools frequently: (1) 
     their number and characteristics, (2) their success in school 
     relative to children who have never changed schools, (3) the 
     help that federal educational programs, such as Migrant 
     Education and Chapter 1, provide, and (4) the help that 
     improved student record systems could provide.
                                  ____


  Elementary School Children: Many Change Schools Frequently, Harming 
                            Their Education

       One-sixth of the nation's third graders--more than half a 
     million children--have attended at least three different 
     schools since starting first grade. Unless policymakers focus 
     more on the needs of the children who are changing schools 
     frequently--often poor, inner city, and with limited English 
     skills--these children may continue to do poorly in math and 
     reading and risk having to repeat grades. Local school 
     districts typically provide little additional assistance to 
     these children. The Education Department could help by 
     developing strategies to provide all eligible children, 
     including those who have switched schools frequently, access 
     to federally funded Migrant Education and Chapter 1 services. 
     Timely and comparable record systems are one way to help 
     mobile children receive services. For example, a child's 
     school records often take up to 6 weeks to arrive in a new 
     school, and student records often differ from states and 
     districts.


                            results in brief

       One in six of the nation's children who are third-graders--
     over a half million--have changed schools frequently, 
     attending at least three different schools since the 
     beginning of first grade. Unless policymakers focus greater 
     attention on the needs of children who have changed schools 
     frequently--often low-income, inner city, migrant, and 
     limited English proficient (LEP)--these children may continue 
     to be low achieving in math and reading, as well as to repeat 
     a grade. Local school districts generally provide little 
     additional help to assist mobile children.
       The Department of Education can play a role in helping 
     mobile children to receive appropriate educational services 
     in a timely manner. Specifically, the Department can develop 
     strategies so that all eligible children, including those who 
     have changed schools frequently, will have access to 
     federally funded Migrant Education and Chapter 1 services. 
     Children who have changed schools frequently are not as 
     likely to receive services provided by the federal Migrant 
     Education and Chapter 1 programs as children who have never 
     changed schools.
       Timely and comparable record systems could be one way to 
     help mobile children receive services. A child's records 
     often take 2 to 6 weeks to arrive in a new school, according 
     to data collected by the California State Department of 
     Education and others. Moreover, student records often are not 
     comparable across states and districts. The federal Migrant 
     Student Record Transfer System (MSRTS), established to 
     transfer information from a migrant child's former school 
     district to a new school district, also does not provide 
     timely and complete information. However, other systems, such 
     as one currently being piloted in a few states, may in the 
     future provide comparable and more timely transfer of student 
     records for all children, including migrants.


                              conclusions

       Children who change schools frequently face many challenges 
     to their success in school. Such change can cause disruption 
     and add to the other challenges--low-income, limited English 
     proficiency, and migrant

[[Page 8868]]

     status--that make learning and achievement difficult for 
     them. Nevertheless, many of the children who change schools 
     frequently may be less likely to receive Migrant Education 
     and Chapter 1 programs services than other children meeting 
     program eligibility standards.


 low-income, inner city, migrant, and lep children are more likely to 
                    have changed schools frequently

       Children who are from low-income families or attend inner 
     city schools are more likely than others to have changed 
     schools frequently. Overall, about 17 percent of all third-
     graders--more than a half million--have changed schools 
     frequently, attending three or more schools since first 
     grade. Of third-graders from low-income families--that is, 
     with incomes below $10,000--30 percent have changed schools 
     frequently, compared with about 10 percent from families with 
     incomes of $25,000 and above. About 25 percent of third-
     graders in inner city schools have changed schools 
     frequently, compared with about 15 percent of third-graders 
     in rural or suburban schools.
       An inner city child, compared with one in a suburban or 
     rural school, may be more likely to change schools 
     frequently, in part, because he or she is more likely to come 
     from a low-income family. Another factor that could 
     contribute to an inner city child changing schools is that 
     such a child may move only a short distance, yet move into a 
     new school attendance area; however, a child in a larger, 
     less densely populated school attendance area--for example, 
     in a suburban or rural school district--may move several 
     miles and still attend the same school.
       Migrant and LEP children also are much more likely than 
     others to have changed schools frequently: about 40 percent 
     of migrant children have changed schools frequently, compared 
     with about 17 percent of all children. Among LEP children, 
     about 34 percent have changed schools frequently.


children who have changed schools frequently are more likely to be low 
                    achievers and to repeat a grade

       Of the nation's third-graders who have changed schools 
     frequently, 41 percent are low achievers, that is, below 
     grade level, in reading, compared with 26 percent of third-
     graders who have never changed schools. Results are similar 
     for math--33 percent of children who have changed schools 
     frequently are below grade level, compared with 17 percent of 
     those who have never changed schools. In grouping the 
     children who have changed schools frequently into four income 
     categories, we found that within each category, these 
     children are more likely to be below grade level in reading 
     and math than those who have never changed schools. Children 
     who have moved often were also more likely to have behavioral 
     problems, according to a recent study.
       Overall, third-graders who have changed schools frequently 
     are two-and-a-half times as likely to repeat a grade as 
     third-graders who have never changed schools (20 versus 8 
     percent). For all income groups, children who have changed 
     schools frequently are more likely to repeat a grade than 
     children who have never changed schools.
       Children who have changed schools frequently, compared with 
     children who have never changed schools, are more than twice 
     as likely to have nutrition and health or hygiene problems, 
     according to teachers.
       When children changed schools four or more times, both a 
     Department of Education and a Denver Public Schools study 
     found, they were more likely to drop out of school. Children 
     who changed schools four or more times by eighth grade were 
     at least four times more likely to drop out than those who 
     remained in the same school; this is true even after taking 
     into account the socio-economic status of a child's family, 
     according to the Department study. Children who transferred 
     within the district five or more times dropped out of school 
     at similarly high rates, regardless of reading achievement 
     scores, the Denver study found.
       Except for migrant children, little is currently done to 
     help children whose frequent school changes affect the 
     continuity of their schooling. It may be difficult for 
     teachers to focus on the needs of these children, 
     particularly those who enter after school has started, rather 
     than on maintaining continuity for the rest of the class. 
     When children enter classrooms after the beginning of the 
     year, teachers may prejudge them unfavorably. Teachers in 
     schools with high proportions of children who change schools 
     after the beginning of the year indicated that these school 
     changes disrupt classroom instruction, and teachers must 
     spend additional time on noninstructional tasks. Teachers may 
     therefore not have the time to identify gaps in such a 
     child's knowledge; moreover, these gaps may grow as the child 
     is left on his or her own to make sense of the new curriculum 
     and its relation to the one at the previous school. Children 
     who changed schools often, except for migrant children, did 
     not receive specialized educational services, researchers 
     have noted.


 migrant children who have changed schools frequently are less likely 
 than those not changing schools to receive migrant education program 
                                services

       Of migrant third-graders who have attended three or more 
     schools since first grade, 21 percent receive migrant 
     services, compared with 54 percent of migrants who have not 
     changed schools at all. These results are surprising since 
     the Migrant Education Act is intended to address, to a large 
     degree, the problems mobility creates for migrant children. 
     Migrant children who have changed schools frequently are less 
     likely to attend schools with migrant education programs than 
     those who have never changed schools.


CHAPTER 1 PARTICIPATION RATES LOWER FOR LOW-ACHIEVING CHILDREN WHO HAVE 
  CHANGED SCHOOLS FREQUENTLY THAN FOR LOW-ACHIEVING CHILDREN WHO HAVE 
                         NEVER CHANGED SCHOOLS

       Low-achieving children who have changed schools frequently 
     are less likely to receive Chapter 1 services than low-
     achieving children who have never changed schools. Of third-
     graders who have never changed schools and read below grade 
     level, 25 percent receive Chapter 1 reading services. In 
     contrast, 20 percent of third-graders who have changed 
     schools frequently and read below grade level receive these 
     services. In grades kindergarten through 6, approximately 
     90,000 additional low-achieving children who have changed 
     schools frequently could receive Chapter 1 reading services 
     if the program provided these services at the same rates to 
     these children as to low-achieving children who have never 
     changed schools.


  LACK OF CHAPTER 1 DATA TO EXPLAIN THE LOWER CHAPTER 1 PARTICIPATION 
         RATES OF CHILDREN WHO HAVE CHANGED SCHOOLS FREQUENTLY

       The Department of Education has little information on 
     children who change schools frequently and their 
     participation in the Chapter 1 program, as well as the 
     effects that children moving frequently from school to school 
     have had on Chapter 1 services. Therefore, we were unable to 
     explain why low-achieving children who have changed schools 
     frequently may be less likely to be served by Chapter 1 than 
     low-achieving children who have never changed schools. A 1992 
     Department of Education policy instructs districts to reserve 
     adequate funds so that migrant children who are eligible for 
     Chapter 1 services--even if they arrive late in the school 
     year--will receive them. But nonmigrant children who change 
     schools frequently and are also eligible for Chapter 1 
     services are omitted in this policy.
       We found that about 17 percent of third-graders have 
     changed schools frequently, that is, have attended three or 
     more schools since the beginning of first grade. About one-
     quarter, or 24 percent, of third-graders have attended two 
     schools; the remaining 59 percent of third-graders have 
     remained in the same school since first grade.


 INNER CITY AND LOW-INCOME CHILDREN MUCH MORE LIKELY TO CHANGE SCHOOLS 
                               FREQUENTLY

       Inner city children are much more likely to change schools 
     frequently, on average, than those in rural or suburban areas 
     or in small cities or towns. One-fourth of third-graders in 
     inner city schools have changed schools frequently, that is, 
     have attended three or more schools since first grade. In 
     comparison, only about one-seventh of children from rural or 
     suburban areas or from small cities or towns have changed 
     schools frequently.
       Children from low-income families are more likely to change 
     schools frequently than those from higher income families. 
     Among children in families with annual incomes below $10,000, 
     30 percent have changed schools frequently, compared with 8 
     percent of children in families with incomes of $50,000 or 
     more. Overall, the percentage of children who change schools 
     frequently decreases as income increases.


NATIVE AMERICAN, BLACK, HISPANIC, MIGRANT, AND LEP CHILDREN MORE LIKELY 
                      TO CHANGE SCHOOLS FREQUENTLY

       Native American, black, and Hispanic children are more 
     likely to change schools frequently than Asian or white 
     children. However, these differences are less related to race 
     or ethnicity than to differences in income and, consequently, 
     homeownership versus renter status: renters tend to move much 
     more frequently than homeowners. When we examined 1990 
     Current Population Survey data reported by the Bureau of the 
     Census, race or ethnic differences in mobility largely 
     disappeared after considering homeownership versus renter 
     status.
       Migrant and limited English proficient (LEP) children are 
     much more likely to change schools frequently than all 
     children. About 40 percent of migrant children and 34 percent 
     of LEP children change schools frequently, in comparison with 
     17 percent of all children. In addition, compared with 59 
     percent of all children, a smaller percentage of migrant and 
     LEP children have never changed schools--28 and 38 percent, 
     respectively.
       Teachers reported that children who change schools 
     frequently, compared with those who have never changed 
     schools, are much more likely to have problems related to 
     nutrition or health and hygiene. Among children who change 
     schools frequently, 10

[[Page 8869]]

     percent are reported to have nutrition problems, compared 
     with about 3 percent of children who have never changed 
     schools. Similarly, teachers report that 20 percent of 
     children who change schools frequently have health and 
     hygiene problems, compared with 8 percent of children who 
     have never changed schools.
       For all children, those who have changed schools frequently 
     are more than twice as likely to repeat a grade as those who 
     have never changed schools. Among children who change schools 
     frequently, about 20 percent repeat a grade; in contrast, 
     among children who have never changed schools, about 8 
     percent repeat a grade.
       Children who change schools frequently are less likely to 
     receive educational support from federal programs than those 
     who have never changed schools. For example, migrant children 
     who change schools frequently are less likely to receive 
     migrant education services than those who have never changed 
     schools. In addition, low-achieving children who change 
     schools frequently are less likely to get Chapter 1 services 
     than those low-achieving children who have never changed 
     schools; this is true for children achieving below grade 
     level in math as well as reading.
                                  ____


             [From the CATALYST, Cleveland, Mar./Apr. 2001]

               Mobile Students Score Lower on State Test

                           (By Sandra Clark)

       Cleveland 4th-graders who changed schools one or more times 
     during the school year scored lower than their stable 
     classmates on all five sections of the Ohio Proficiency Test, 
     according to a CATALYST analysis of test scores from 1997 to 
     1999.
       On average, mobile students scored 5.12 points below their 
     more stable counterparts. The largest spread between the two 
     was in math and science. The smallest gap was in reading.
       The analysis of test scores of 16,278 students, 1,914 of 
     whom changed schools at least once during the school year, 
     was conducted for CATALYST by Joshua G. Bagaka's, assistant 
     professor of educational research and statistics at Cleveland 
     State University.
       ``Across all five parts of the Ohio 4th- and 6th-grade 
     proficiency test, mobile students consistently received lower 
     scores than their stable counterparts,'' Bagaka's says.
       ``I don't think we need to down play the role of mobility 
     here,'' Bagaka's says. ``Schools should find ways of giving 
     mobile kids special attention because they are at risk of 
     failing.''
       Bagaka's analysis also showed that the test scores of 
     mobile students suffered regardless of the students' family 
     income or whether they live with one or both parents.
       The analysis also shows: The achievement gap between stable 
     and mobile students by income is often widest for mobile 
     students who pay full price for lunch and smallest for 
     students on free lunch. In many areas, poor mobile students 
     do better than well-off mobile students. (See chart page 5.)
       Similar conclusions can be drawn when comparing students 
     from single-parent and two-parent homes. Mobile students from 
     single-parent homes often do just as well as mobile students 
     from two-parent homes. (See chart page 5.)
       Mobility refers to students who change schools one or more 
     times during an academic year. Students change schools 
     frequently due to school choice, family moves, poverty, 
     hopelessness, changes in child custody and other problems.
       Cleveland's mobility rate has fallen from 19.5 percent in 
     1998 and 1999 to 15.8 percent in 1999 due in part to the end 
     of desegregation, says Peter A. Robertson, Cleveland 
     Municipal School District's executive director of Research, 
     Evaluation and Assessment.
       Individually, however, high-poverty elementary schools such 
     as Willow, East Clark, Bolton and George Washington Carver 
     reported rates nearing 30 percent during the period.
       Based on student demographics and test scores from 1997 
     through 1999, the analysis indicated an achievement gap that 
     varied little even as the test changed in difficulty during 
     the period.
       The highest achievement gaps in math and science were 7.5 
     points and 9.2 points, respectively. The average gap in 
     reading was 3.5 points. Reading is something children can 
     learn at home, says Russell W. Rumberger, education professor 
     at University of California, Santa Barbara. Families rely on 
     schools to teach math and science, which is why the 
     achievement gap in those subjects is largest, Rumberger says.
       CATALYST's findings come as no surprise to Robertson. The 
     district has not targeted mobile students for any special 
     help, Robertson says. However, he adds that districtwide 
     initiatives such as establishing standards and periodically 
     assessing students' strengths and weaknesses should help 
     them. (See story page 9.)
       ``Beyond that,'' Robertson says, ``we are trying to make 
     sure they have access to good teaching and what we need to do 
     for all kids.''
       Cleveland findings reflect studies done elsewhere that 
     linked student mobility to lower achievement.
       For example, the Minneapolis Public Schools, the Family 
     Housing Fund and other groups studied mobile students in the 
     city. The year-long study, called the Kids Mobility Project, 
     found that students who moved three or more times earned 
     reading scores that were half that of students who stayed 
     put.
       David Kerbow, a University of Chicago researcher who has 
     studied mobility in Chicago Public Schools, says constant 
     movement slows the learning pace for not only mobile students 
     but also their stable classmates. An analysis of math in 
     highly mobile classrooms shows teachers frequently stop and 
     start to integrate new students with varying achievement 
     levels into the class, Kerbow says. Introduction of new 
     material slows as the teacher begins keeping lessons basic. 
     And, over time, students in highly mobile schools get 
     instruction that is about a year behind that of students in 
     more stable schools, Kerbow reports.
                                  ____


                        Miles Park Finds Answers

                           (By Sandra Clark)

       A tour of Miles Park Elementary School offers a snapshot of 
     mobility--its causes, its impact and even a way to minimize 
     its harm.
       Any staff member can guide the tour. They all have stories.
       Clerk Ella Kirtley can explain what a task it is to keep 
     pace with the rapid student turnover. Librarian Jeanne Irvin 
     says she spends countless hours and dollars retrieving books 
     from students who leave. Second-grade teacher Jane E. Rodgers 
     can demonstrate how she tries to teach an ever-changing 
     class.
       The Cleveland Municipal School District, like most in the 
     country, has no official policy for mitigating the impact of 
     mobility. The district has been pushing schools to improve 
     proficiency test scores without taking mobility and its drag 
     on achievement into account, Miles Park Principal William J. 
     Bauer says. So the school struck out on its own, making the 
     needs of mobile students a schoolwide focus.
       ``The area superintendent says `You did good [with 
     proficiencies] last year. How much are you going to improve 
     this year?' '' Bauer says. ``There's a new student, there's a 
     new student, there's a new student with grades lower than an 
     LD [Learning Disabled] student. You're a teacher and you're 
     responsible for increasing scores every year.''
       The staff is fluent in mobility because enrollment shifts 
     dramatically here. The school's 1999 mobility rate, the most 
     recent available, of 14.7 percent is below the district 
     average for elementary schools, about 16 percent.
       Yet, staff sees a constant churning of students in and out 
     of the school. To date, the school's enrollment shifted from 
     530 students, to 510 and then 571 for a total change of 81. 
     That means about four whole classrooms full of kids have come 
     and gone this school year. The impact the movement has on 
     learning at the school is huge, Bauer says.
       Mobility's influence on behavior and achievement becomes 
     clear one day when Kenneth returns from speech lessons to 
     Rodgers' 2nd-grade class. The tenor of the class shifts. A 
     slight rumble of discord replaces the chatter of children 
     constructing a picture graph.
       Kenneth, not his real name, is the most recent of eight new 
     students in Rodgers' class this school year. Kenneth rarely 
     follows school rules and is functioning below grade level, 
     Rodgers says. His classmates know this and give him grief. 
     Little shoves are sent his way, to which he responds by 
     glaring at the tallest kid in class.
       He stands out, Rodgers says. Kenneth is the only student 
     not wearing the school's blue and white uniform.
       ``My students are starting to write paragraphs, and he 
     can't write a sentence,'' Rodgers says. ``I don't have time 
     to work with him.
       ``I move quicker,'' Rodgers says. ``I'm a 25-year teacher. 
     He had a first-year teacher.''
       Students like Kenneth are in danger of failing. A 1994 
     General Accounting Office report on mobility said 3rd-graders 
     who have changed schools frequently are 2\1/2\ times as 
     likely to repeat a grade as 3rd-graders who have never 
     changed schools.
       A CATALYST analysis of mobility in Cleveland schools also 
     showed a link between mobility and retention.
       The analysis also showed average proficiency test scores of 
     mobile students are about 5 points below scores of stable 
     students.
       Janice Smallwood's 4th-grade class at Miles Park has 24 
     students. Seven are new. When Smallwood tested reading and 
     math levels, students scored between 4.66 and 1.68. Six of 
     the mobile students are at the bottom of the list, scoring 
     below those labeled Learning Disabled. Tianna scored 3.84, 
     the highest of all new students, to rank 11th in the class.


                              bad behavior

       Behavior is high on the list of areas affected by mobility. 
     The GAO report said that children who move frequently are 77 
     percent more likely to have four or more behavioral problems 
     than those with no or infrequent moves.
       This constant movement, loss of friends and the effort it 
     takes to make new ones can be ``a social nightmare,'' says 
     Ted Feinberg,

[[Page 8870]]

     assistant executive director of the National Association of 
     School Psychologists.
       Some mobile students are content to quietly scope out the 
     class before inserting themselves into the mix. Some use 
     humor to cope, Feinberg explains. The antics of a 4th-grader 
     who had attended about five schools constantly pulled the 
     class off task, says Miles Park teacher Teresa Goetz. She 
     telephoned the boy's previous school to get his history and 
     found that he had jumped on one child's out-stretched leg, 
     breaking it. In November, the boy transferred to another 
     school.
       A move from family to foster care sent a Cleveland student 
     to Hawthorne Elementary School in Lorain. This boy was so 
     desperate to make friends, he stole money from a teacher's 
     purse and passed it out to fellow students, Hawthorne 
     Principal Loretta Jones says.
       ``What we see are kids who are depressed because they don't 
     have a social network,'' Feinberg says. ``Kids feel awkward 
     and uncomfortable. They try to prove themselves through 
     strength and coolness.''


                               no records

       In addition to behavioral and academic problems, mobile 
     students frustrate administrators because the children seldom 
     arrive with records, grades and immunization forms.
       Clerk Ella Kirtley spends half her day enrolling new 
     students, withdrawing them and searching for records from 
     their old schools.
       Kirtley is retired but Bauer has convinced her to stay on 
     because he doesn't think he can find another clerk who can 
     keep up.
       What's scary to Kirtley is how difficult it is to get vital 
     information on students and now quickly that information 
     changes.
       Addresses change, telephone numbers change and pagers are 
     cut off so frequently that ``You can't be up to date with 
     emergency cards,'' Principal Bauer says. Sick children have 
     been sent back to class because the school could not find an 
     emergency contact Kirtley says.


                        testing mobile students

       Neither Cleveland schools nor the Ohio Department of 
     Education have official strategies to mitigate the impact of 
     mobility. Academic standards are surfacing as a way to be 
     sure all kids are exposed to the same information and tests 
     even though they change schools. (See story page 9.) The 
     state department also plans to create a system of exchanging 
     student records using Education Management Information 
     Systems. The system should be completed in two years, says 
     department spokeswoman Dorothea Howe.
       But for the most part, teachers and principals individually 
     hammer out solutions. Some start by finding out the student's 
     performance level so they can be placed in the appropriate 
     class. This is an informal process at most schools.
       For example, at Willow Elementary School, Tannesha 
     Saunders' 4th-grade teacher casually quizzed her when she 
     joined the class in October.
       ``I think she wanted to see what I knew,'' says Tannesha, 
     who attended four schools in three years. ``She'd teach some 
     stuff then she'd ask some people some questions. Then she'd 
     ask me a question and I answered it.''
       Tannesha says the teacher also gave her a buddy, 
     ``Brittany, to help me with my work and show me around like 
     where the lunchroom was.''
       Testing for placement of new students is serious business 
     at Miles Park. New students are given the Star Test for 
     reading and Computer Curriculum Corp. math, says Miles Park's 
     Assistant Principal Kelley A. Dudley. Both tests assign a 
     grade equivalent based on the student's score and prescribe 
     what students should study to close any achievement gaps, 
     Dudley says.
       Star Test scores correspond with grade-appropriate books in 
     Accelerated Reader. Computer Curriculum aligns math with 
     grade levels and allows students to work on problems during 
     math lab and after school. Students work independently or get 
     tutoring from retired professionals who volunteer.
       Paris, a new student in Smallwood's 4th-grade class, moved 
     up a grade level to 3.6, Dudley says. ``He's still behind, 
     but look where he came from,'' she says.
                                  ____


                           Managing Mobility

                           (By Sandra Clark)


                the causes: poverty and family break-ups

       Miles Park Principal William J. Bauer and other heads of 
     Cleveland elementary schools that experience mobility can 
     only guess why students frequently transfer in and out of 
     their schools.
       In most cases, the district does not keep records on why 
     students are withdrawn from school.
       School leaders point to income and family instability as 
     primary culprits. Loss of income often means families must 
     move from their houses or apartments. Changes in child 
     custody or guardianship also can cause movement. Some 
     children transfer schools after being placed in foster care.
       Then there's homelessness. For example, Kentucky and Case 
     elementary schools serve students in nearby homeless and 
     battered women's shelters.
       Families living at the Zelma George Homeless Shelter attend 
     Miles Park, A.B. Hart Middle and South High School. Families 
     can stay only 14 days unless they receive an extension from 
     the shelter, shelter officials say. (See story page 12.)
       Welfare reform also plays an increasingly important role in 
     homelessness and school instability. Mobility for families 
     recently cut from welfare is four times higher than that of 
     other families, reports Claudia Coulton, social welfare 
     professor at Case's Mandel School of Applied Social Sciences. 
     About 42 percent of Cuyahoga County families leaving welfare 
     moved within six-months of leaving cash assistance, compared 
     to the national average of 8 percent of families not on 
     welfare moving during the period, Coulton says.
       That's not entirely bad news. Many parents now have jobs 
     and can afford to move to better neighborhoods, says Rasool 
     Jackson, Cleveland school's director of Student 
     Administrative Services.
       Bauer disagrees, saying welfare reform portends more 
     instability. Bauer says he believes more Miles Park students 
     are losing their homes and moving in with family members 
     since welfare reform took hold.
       Another major cause of movement is discomfort with the 
     school. For example, results of a survey of students in 
     Chicago Public Schools showed one reason students transferred 
     was school-related, not that the family changed homes, says 
     David Kerbow, education researcher at the University of 
     Chicago. When conflict with school staff or students 
     occurred, parents chose to leave rather than solve the 
     problem, Kerbow explains.

       Margaret V. Alberty was so uncomfortable with teachers 
     handling of her special-needs 4th-grader that she changed 
     schools six times before settling on Willow Elementary 
     School.
       Alberty is guardian of 10-year-old Damien Lightfoot, who 
     has Attention Deficit Hyperactivity Disorder.
       Alberty says many teachers are unprepared to teach a child 
     with his condition and do not know how to handle Damien when 
     he's upset. He's been grabbed and jerked about by teachers, 
     Alberty says. ``They aggravate you so much you have to take 
     them out of the school.''
       It's not unusual for parents like Alberty to change schools 
     because they disagree with a school's academic practices or 
     front-office manners. ``A rude clerk can really damage your 
     school,'' says Doug Clay, a former district researcher now 
     with the Urban School Collaborative at Cleveland State 
     University.
       Finally, Peter A. Robertson, Cleveland Municipal School's 
     executive director of Research, Evaluation and Assessment, 
     says a number of Cleveland students transfer to escape poor 
     grades or a special education diagnosis.
       Districts and communities across the country are using a 
     variety of strategies to lessen the negative effects of 
     mobility or to limit mobility itself. Some schools have 
     created programs to welcome students and place them in the 
     most suitable classroom. Others go outside the school walls 
     to address housing issues. Here is a list of tactics 
     principals, districts and states have used to manage 
     mobility.


                          Placing new students

       When Jo Ann Isken, principal of Moffett Elementary School 
     in Los Angeles County, learned about a kindergartner who was 
     having trouble learning to read, she did a little checking. 
     She found he had attended three different schools, with 
     lengthy absences in between. His lessons had been in English, 
     some in Spanish.
       Because of frequent movement among students, Isken set up 
     welcoming procedures for new students. When the new student 
     and parent or guardian arrive, they are asked about the 
     child's school and medical history. ``Immediately, we had an 
     academic, health and family history and we knew what the 
     support needs would be.''
       Students are tested and assigned to classes based on 
     achievement levels. Then, measures such as one-to-one 
     tutoring are prescribed, Isken says.
       When students leave, they are given transfer forms with 
     immunization data, enrollment dates and names and telephone 
     numbers or contact people at the school. ``Our children 
     (leave) with more information than we got when they came,'' 
     Isken says.


                            Record exchange

       A program designed to serve the children of migrant workers 
     has provided a way to help ensure that student records follow 
     them. New Generation System is a student-record exchange 
     program established in 1995. It is operated by a consortium 
     of 11 states, including Ohio and Texas. Health, academic and 
     demographic information is available to consortium members 
     via the Internet, says Patricia Meyertholen, programs 
     director for the Texas Migrant Information Program.
       To protect student privacy, the site is encrypted and 
     requires a password: Only consortium members have access, 
     Meyertholen says.
       New Generation System maintains data on about 200,000 of an 
     estimated 784,000 migrant children nationwide, Meyerholen 
     says.


                            Low-cost housing

       Minneapolis Public Schools attacked mobility at one of its 
     root causes--a lack of low-cost housing.

[[Page 8871]]

       ``It's the 1 percent vacancy rate that wreaks such havoc on 
     family stability,'' says Elizabeth E. Hinz, policy and 
     planning director. ``Housing isn't here, period. Or the 
     housing that's available people can't afford.''
       The district joined with groups such as the Family Housing 
     Fund and launched the Kids Mobility Project. The research 
     project explored the effect of constant residential moves on 
     student achievement. It produced a report in 1998 that linked 
     inadequate housing to student mobility, poor attendance and 
     lower reading scores, says Shawna Tobechukwu, spokeswoman for 
     the Family Housing Fund.
       Tobechukwu says results were used to lobby the state 
     legislature to increase the budget for low-cost housing. 
     Lawmakers responded to the data and raised the budget by 
     about $96 million in the last two years, says Angie Bernhard, 
     research and policy director at Family Housing Fund. ``The 
     report was a big part of the information we used to make our 
     case,'' Bernhard says. ``It was very persuasive to 
     legislators on both sides of the aisle.''


                            Extra resources

       In 1994, Montgomery County Public Schools in Maryland began 
     allocating extra staff to schools based on mobility rates, 
     poverty rates and the number of students speaking limited 
     English, says Susan F. Marks, the district's executive 
     assistant for School Performance. Lean budgets meant the 
     district, headquartered in Rockville, Md., simply sent an 
     extra teacher or two to high-mobility schools.
       Last year, the county revamped the program. For one, it 
     took mobility and language out of the equation and focused on 
     reducing class size at high-mobility schools, says Frank H. 
     Stetson, Community Superintendent for the school system.
       In an area where international professionals come and go 
     regularly, mobility and language are not the best indicators 
     of need, Stetson says. Poverty is. And poorer schools tend to 
     have the ``churn'' that chills attendance and achievement, 
     Stetson adds.
       ``If we used mobility we'd be sending resources to schools 
     that didn't need them,'' Stetson says.
       To add resources, the system ranked schools by poverty. 
     Then it gave funds for such items as all-day kindergarten, 
     extra staff to achieve a 15-1 teacher-student ratio and 
     programs like Reading Recovery in the primary grades, Mark 
     says. It also plans to add 41 positions to reduce class size 
     at high-poverty high schools, Marks says.


                             Transportation

       A coalition of community organizations has taken steps to 
     reduce school mobility among children in Baltimore County, 
     Md., by providing bus service so that students who move can 
     remain in the same school.
       The area has neighborhoods containing hundreds of 
     apartments in low-rise buildings where families constantly 
     move in and out. A move from one apartment to another 10 
     minutes away could send children to a different school, says 
     Julie J. Gaynor, a Baltimore county teacher and chairwoman of 
     the Stay Put committee.
       The Stay Put program was founded in 1992 to cut school 
     mobility. It is a non-profit project of the education 
     committee of the Essex-Middle River-White Marsh Chamber of 
     Commerce.
       The group runs several programs such as shuttle buses 
     supplied by the district to transport children who move back 
     to their old school.
       Families often move because landlords offer free rent for 
     one month. Stay Put encourages landlords to put the freebie 
     at the end of the lease, increasing the likelihood that kids 
     will finish a school year in one place. At the group's 
     urging, landlords also have donated an apartment which serves 
     as a community center where students who live in the complex 
     can receive after-school tutoring and adults can prepare for 
     the General Education Development Certificate (GED).
       Gaynor says a new focus is on opening a conflict mediation 
     center so families can resolve differences rather than move 
     away.
       Funding for the community center's staff comes from various 
     sources, including school district grants, Gaynor says.


                             Accountability

       The California accountability system addresses a common 
     complaint of schools that suffer high mobility: They say they 
     shouldn't be held accountable for the performance of students 
     who entered their schools months, weeks or even days before 
     the high-stakes tests are given.
       The California Department of Education figures mobility 
     into its accountability system. Districts are required to 
     report mobility. The state uses the rate to decide which 
     scores will or will not be used in the system.
       ``If you're not in the district a year, your scores don't 
     count for rewards and interventions for schools,'' says 
     Patrick J. McCabe, in the Department's Office of Policy and 
     Evaluation.
       California schools report two types of mobility, students 
     who have not been in a district a full year and students who 
     have not been in a school a full year. Schools do not report 
     ``churn,'' the frequent in-and-out movement of students, 
     McCabe says. And scores of students who change schools within 
     the same district are not exempt from the accountability 
     system, McCabe says.
       Districts failing to meet targets are given three years and 
     extra money to improve. If no improvement occurs, penalties 
     such as removing the principal, staff or closing the school 
     kick in.
       Successful districts receive $70 for every child, McCabe 
     says.

  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself the 
balance of my time, and I want to thank all the members of our 
committee on both sides of the aisle that have participated in this 
debate and to the other Members that have joined us during this general 
debate. They were very generous in their congratulating both the 
chairman and myself, and I want to extend that to the chairman again 
for the manner in which this bill has been handled.
  We have an opportunity here today to change the direction of the 
Federal role in education, to provide additional resources to local 
educational agencies with greater flexibility than they have had at any 
time in the life of this program. They can apply these resources to 
those needs they think need them the most, that need the attention, 
that can benefit from the application of those resources to try to get 
the results that all of us want with the passage of this legislation, 
but more importantly, to get the results the parents want for children 
and the children want for themselves.
  Our children in America have that potential, they have that ability, 
and they have that talent. But far too often, far too often, they lose 
the opportunity to capitalize on their talents, to capitalize on their 
ability, because they are ignored in the school district or the school 
district is without resources, or children are mischaracterized. A lot 
of things happen during the educational year. This legislation is to 
try to make sure we put the emphasis on the child; that we have a 
means, as the President said, to assess a child on an annual basis so 
that we can determine what are the additional resources that that child 
needs; what kind of help should be focused on that child.
  In these annual assessments, it is more than just a test, it is about 
seeing whether or not the child needs a Saturday class, do they need a 
tutor, do they need a mentor, both of which are allowed under this 
legislation. Do they need to go to summer school? Do they need some 
additional testing? Do they need eyeglasses? Those are the kinds of 
things we want to be able to focus on the child so that every child has 
that real opportunity. We have the opportunity if, in fact, we provide 
those resources. We focus on the child and we can start to close that 
gap between rich and poor children, between majority and minority 
children in the school.
  The other tools that are available is the resources we put into 
teacher quality, to professional development, to training, to lower 
class sizes in those areas that have not done it and still need to do 
that. Those are decisions that the local school district can make. It 
is very important. We know now that a well-qualified teacher is one of 
the most important ingredients in that child's education in the school 
setting.
  Obviously, we believe the most important ingredient is the family. If 
there is one thing this bill cannot do, that would greatly help us all, 
is if we could just get every parent to spend time with their child, or 
grandchild, reading to those children and telling them that it is 
important. This education would complement that, and we would be well 
on the way to the goal the President has had, that so many Members of 
this Congress have had, and that is to make sure that each and every 
child has that opportunity.
  Mr. Chairman, I look forward to the amendment process.
  Mr. BOEHNER. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, let me first thank all of the Members for all their 
kind comments and their support of the bill that we have before us. I 
think that, as the gentleman from California (Mr. George Miller) just 
pointed out, we have a very sound piece of legislation

[[Page 8872]]

that will improve the educational prospects for millions of American 
children. All we need to do is to have the courage to stand up and to 
vote for it.
  There are Members with different views and different visions of what 
the Federal Government's role in education should be. I have 
conservative friends who are a little hesitant about this. We have some 
liberal friends who are just as hesitant. And as the gentleman from 
California pointed out, this is the most major change in the Federal 
Government's role in education in the 35 years that the Federal 
Government has been involved. This is a big step. This will take 
courage on the part of Members and take courage on the part of this 
institution to forge our way down a new path. But I think today is the 
day to do it, and I think this is the bill that will put us on the 
right path.
  This bill did not get here by itself, though. All the Members worked 
hard but there are a select group of people who deserve to get our 
thanks: Sally Lovejoy, who heads up the education group on our staff; 
members of her staff, Kent Talbert, Christy Wolfe, Rich Stombres, Ben 
Peltier, Cindy Herrle, Pam Davidson, George Conant, JoMarie St. Martin, 
Bob Sweet, Doug Mesecar, Dave Schnittger and his team, and Paula 
Nowakowski, staff director.
  Let me also thank the Democrat staff who worked very closely with us: 
Charlie Barone, Alex Nock, Denise Forte, John Lawrence, Brendan O'Neil 
with the office of the gentlewoman from Hawaii (Mrs. Mink); Maggie 
McDow with the office of the gentleman from Indiana (Mr. Roemer); Kara 
Haas, a staffer in the office of the gentleman from Delaware (Mr. 
Castle); Karen Weiss with the office of the gentleman from California 
(Mr. McKeon); and Glee Smith of the office of the gentleman from 
Georgia (Mr. Isakson).
  They spent as many hours or more than the Members in terms of helping 
to craft this bill, to put it together, and to put us on the track 
where we are today, and I want to thank them for their work.
  Mr. DAVIS of Illinois. Mr. Chairman, I rise to express my concern 
about the legislative language of H.R. 1--The No Child Left Behind Act 
of 2001, that contains a ``grandfather'' clause permitting school 
districts that currently segregate homeless children to continue to do 
so. The McKinney Act has prohibited this form of segregation. Since 
1990, the McKinney Act has required States and school districts to 
integrate homeless students into the mainstream school environment, and 
to remove barriers to their enrollment, attendance, and success in 
school.
  As a practical matter, segregation of homeless children who are 
disproportionately Black and Latino means racial re-segregation. In 
Chicago, for example, 92% of homeless families that use shelter 
facilities are African American. To the poor students throughout this 
nation, this is a crucial issue. Separate is not now, and has never 
been ``equal.'' National educational policy must not now in the 21st 
Century embrace this insidious notion: that children should be sent to 
schools based on their housing or economic status. There is no sound 
teaching rationale for educating homeless children separately. Homeless 
children are like all other children and represent an array of 
educational strengths and needs. Some emerge as valedictorians or 
above-average achievers, others as special education students, and some 
simply average achievers.
  Putting children in schools with a label of ``homelessness'' is 
stigmatizing and demeaning. In many years of work in my district, I 
have never met a single family that asked for a segregated school. In 
fact, the parents along with the Chicago Coalition for the Homeless in 
Chicago fought and closed a segregated facility.
  I have a letter from a homeless child name Junior Brewer who is ten 
years of age, he wrote ``I think no matter what, if you are homeless or 
rich this does not mean that you have to be separated from your friends 
because we are all created equal inside.'' What do I tell Junior about 
the hypocrisy and lies that is being portrayed in H.R. 1. After all 
Junior, if you are poor and Black or Latino or some other ethnic group 
being created equal in the inside among men, women, and children is 
just a dream. Our Republicans say we will leave no child behind but 
their actions say otherwise. We must show through deeds not words that 
no child is left behind.
  Mr. PAUL. Mr. Chairman, thirty-six years ago Congress blatantly 
disregarded all constitutional limitations on its power over K-12 
education by passing the Elementary and Secondary Education Act (ESEA). 
This act of massive federal involvement in education was sold to the 
American people with promises that federal bureaucrats had it within 
their power to usher in a golden age of education. Yet, instead of the 
promised nirvana, federal control over education contributed to a 
decline in education quality. Congress has periodically responded to 
the American people's concerns over education by embracing education 
``reforms,'' which it promises are the silver bullet to fixing American 
schools. ``Trust us,'' proponents of new federal edcation programs say, 
we have learned from the mistakes of the past and all we need are a few 
billion more dollars and some new federal programs and we will produce 
the educational utopia in which ``all children are above average.'' Of 
course, those reforms only result in increasing the education 
bureaucracy, reducing parental control, increasing federal 
expenditures, continuing decline in education and an inevitable round 
of new ``reforms.''
  Congress is now considering whether to continue this cycle by passing 
the national five-year plan contained in H.R. 1, the so-called ``No 
Child Left Behind Act.'' A better title for this bill is ``No 
Bureaucrat Left Behind'' because, even though it's proponents claim 
H.R. 1 restores power over education to states and local communities, 
this bill represents a massive increase in federal control over 
education. H.R. 1 contains the word ``ensure'' 150 times, ``require'' 
477 times, ``shall'' 1,537 and ``shall not'' 123 times. These words are 
usually used to signify federal orders to states and localities. Only 
in a town where a decrease in the rate of spending increases is 
considered a cut could a bill laden with federal mandates be considered 
an increase in local control!
  H.R. 1 increases federal control over education through increases in 
education spending. Because ``he who pays the piper calls the tune,'' 
it is inevitable that increased federal expenditures on education will 
increase federal control. However, Mr. Chairman, as much as I object to 
the new federal expenditures in H.R. 1, my biggest concern is with the 
new mandate that states test children and compare the test with a 
national normed test such as the National Assessment of Education 
Progress (NAEP). While proponents of this approach claim that the bill 
respects state autonomy as states' can draw up their own tests, these 
claims fail under close observation. First of all, the very act of 
imposing a testing mandate on states is a violation of states' and 
local communities' authority, protected by the 10th Amendment to the 
United States Constitution, to control education free from federal 
interference.
  Some will claim that this does not violate states' control because 
states are free to not accept federal funds. However, every member here 
knows that it is the rare state administrator who will decline federal 
funds to avoid compliance with federal mandates. It is time Congress 
stopped trying to circumvent the constitutional limitations on its 
authority by using the people's own money to bribe them into complying 
with unconstitutional federal dictates.
  Mr. Chairman, H.R. 1 will lead to de facto, if not de jure, national 
testing. States will inevitably fashion their test to match the 
``nationally-normed'' test so as to relieve their students and teachers 
of having to prepare for two different tests. Furthermore, states will 
feel pressure from employers, colleges, and perhaps even future 
Congresses to conform their standards with other national tests ``for 
the children's sake.'' After all, what state superintendent wants his 
state's top students denied admission to the top colleges, or the best 
jobs, or even student loans, because their state's test is considered 
inferior to the ``assessments'' used by the other 49 states?
  National testing will inevitably lead to a national curriculum as 
teachers will teach what their students need to know in order to pass 
their mandated ``assessment.'' After all, federal funding depends on 
how students perform on these tests! Proponents of this approach 
dismiss these concerns by saying ``there is only one way to read and do 
math.'' Well then what are the battles about phonics versus whole 
language or new math versus old math about? There are continuing 
disputes about teaching all subjects as well as how to measure mastery 
of a subject matter. Once federal mandatory testing is in place 
however, those arguments will be settled by the beliefs of whatever 
regime currently holds sway in DC. Mr. Chairman, I would like my 
colleagues to consider how comfortable they would feel supporting this 
bill if they knew that in five years proponents of fuzzy math and whole 
language could be writing the NAEP?

[[Page 8873]]

  Proponents of H.R. 1 justify the mandatory testing by claiming it 
holds schools ``accountable.'' Of course, everyone is in favor of 
holding schools accountable but accountable to whom? Under this bill, 
schools remain accountable to federal bureaucrats and those who develop 
the state tests upon which participating schools performance is judged. 
Even under the much touted Straight ``A''s proposal, schools which fail 
to live up to their bureaucratically-determined ``performance goals'' 
will lose the flexibility granted to them under this act. Federal and 
state bureaucrats will determine if the schools are to be allowed to 
participate in the Straight ``A''s programs and bureaucrats will judge 
whether the states are living up to the standards set in the state's 
education plan--yet this is the only part of the bill which even 
attempts to debureaucratize and decentralize education!
  Under the United States Constitution, the federal government has no 
authority to hold states ``accountable'' for their education 
performance. In the free society envisioned by the founders, schools 
are held accountable to parents, not federal bureaucrats. However, the 
current system of imposing oppressive taxes on America's families and 
using those taxes to fund federal education programs denies parental 
control of education by denying them control over their education 
dollars.
  As a constitutional means to provide parents with the means to hold 
schools accountable, I have introduced the Family Education Freedom Act 
(H.R. 368). The Family Education Freedom Act restores parental control 
over the classroom by providing American parents a tax credit of up to 
$3,000 for the expenses incurred in sending their child to private, 
public, parochial, other religious school, or for home schooling their 
children.
  The Family Education Freedom Act returns the fundamental principle of 
a truly free economy to America's education system: what the great 
economist Ludwig von Mises called ``consumer sovereignty.'' Consumer 
sovereignty simply means consumers decide who succeeds or fails in the 
market. Businesses that best satisfy consumer demand will be the most 
successful. Consumer sovereignty is the means by which the free society 
maximizes human happiness.
  When parents control the education dollar, schools must be responsive 
to parental demands that their children receive first-class educations, 
otherwise, parents will find alternative means to educate their 
children. Furthermore, parents whose children are in public schools may 
use their credit to improve their schools by purchasing of educational 
tools such as computers or extracurricular activities such as music 
programs. Parents of public school students may also wish to use the 
credit to pay for special services for their children.
  According to a recent Manhattan Institute study of the effects of 
state policies promoting parental control over education, a minimal 
increase in parental control boosts the average SAT verbal score by 21 
points and the student's SAT math score by 22 points! The Manhattan 
Institute study also found that increasing parental control of 
education is the best way to improve student performance on the NAEP 
tests.
  I have also introduced the Education Quality Tax Cut Act (H.R. 369), 
which provides a $3,000 tax deduction for contributions to K-12 
education scholarships as well as for cash or in-kind donations to 
private or public schools. The Education Quality Tax Cut Act will allow 
concerned citizens to become actively involved in improving their local 
public schools as well as help underprivileged children receive the 
type of education necessary to help them reach their full potential. I 
ask my colleagues: ``Who is better suited to lead the education reform 
effort: parents and other community leaders or DC-based bureaucrats and 
politicians?''
  If, after the experience of the past thirty years, you believe that 
federal bureaucrats are better able to meet children's unique 
educational needs than parents and communities then vote for H.R. 1. 
However, if you believe that the failures of the past shows expanding 
federal control over the classroom is a recipe for leaving every child 
behind then do not settle for some limited state flexibility in the 
context of a massive expansion of federal power: Reject H.R. 1 and 
instead help put education resources back into the hands of parents by 
supporting my Family Education Freedom Act and Education Improvement 
Tax Cut Act.
  Mr. CLEMENT. Mr. Chairman, I rise today in support of this bill as it 
was reported out of committee. I believe that the underlying bill is a 
good piece of legislation that will go a long ways in making our 
schools better places of learning and our students more successful. I 
commend the chairman, Mr. Boehner, the ranking member, Mr. George 
Miller of California, and my fellow New Democrat, Mr. Roemer, for the 
bipartisan way in which this bill has been crafted.
  I am pleased to see H.R. 1 include language supporting both music and 
arts education as well as character education. I am a strong supporter 
of both. We must ensure that our children receive a well rounded 
education which includes music and the arts. Society is growing 
increasingly concerned about the steady decline of our nation's core 
ethical values, especially in our children. Although parents should be 
the primary developers of character, the role of schools in character-
building has become increasingly important.
  I am pleased to see the increased emphasis H.R. 1 has placed on low-
performing Title I schools. If we are to demand that our schools meet 
high standards of achievement, we must also ensure that schools serving 
low-income students receive sufficient funds to meet these students' 
needs. These much needed Title I funds will make a real difference in 
the academic lives of many of my young constituents.
  I also support several other provisions of the bill including 
accountability measures, student mentoring and the retention of the 
Safe Schools and 21st Century Learning Centers programs as separate 
initiatives.
  I am extremely pleased to see that neither vouchers nor the 
``Straight A's'' provision are included in the reported bill and am 
hopeful that they will not be attached as amendments. We have a 
remarkable consensus on this bill, but it is a fragile one. I urge my 
colleagues to protect this delicate balance by rejecting voucher or 
``Straight A's'' proposals that would jeopardize passage of the bill.
  While H.R. 1 substantially increases local flexibility, a ``Straight 
A's'' proposal only increases control at the state level. It will 
result in less funding to many local school districts, particularly 
those with low-income children.
  Every child deserves the opportunity to succeed in our public school 
system. This bill takes a positive step forward toward helping students 
achieve academically and strengthening public schools.
  Mrs. LOWEY. Mr. Chairman, this bill makes some pretty big promises. 
It has the potential to dramatically change the public education system 
in this country. It authorizes significant levels of funding. It says 
to parents that Congress thinks education is a priority, and that we 
will make good on our goal--that every child in America should get a 
quality education.
  But, Mr. Chairman, I sit on the Appropriations Subcommittee that 
funds education, and my experience tells me that we are a long way from 
being able to keep these promises. The budget we passed two weeks ago 
does not provide the funds to do everything we promise in this bill. At 
the end of the year, when push comes to shove, we will do what we've 
done for the past few years--we will short education.
  Tonight and tomorrow we will talk about how we are going to provide 
more funding than ever for our most disadvantaged students through 
Title I, about how we will give states flexibility to determine their 
fiscal needs in the areas of teacher recruitment, teacher development 
and school renovation, and about how we will demand results for our 
efforts. These are all worthy goals, and I support them.
  But without funding, this new flexibility becomes a gilded prison. 
States will have to decide whether to spend their money on facilities, 
teachers or testing. The bill does not provide any additional funds for 
school construction, and does not provide enough to help states develop 
the new mandated tests or recruit more teachers to reduce class sizes. 
In fact, the rule will not even allow these issues to be discussed on 
the floor.
  Unless we work to ensure that sufficient money is included for 
education in the appropriations process, then all we are doing today is 
making empty promises.
  When the annual appropriations melee begins toward the end of the 
year, I hope the American people will remind every member who votes for 
this bill that they have a promise to keep. Every member who holds a 
press conference to tout their commitment to education after their vote 
for this bill should be prepared to follow through.
  Mr. Chairman, we have an opportunity to do great things for 
education. But this legislation is only a down payment. I hope we 
remember to pay the rest of the bill.
  Ms. SOLIS. Mr. Chairman, as a freshman Member of Congress it has been 
exciting to be a part of the House Education and Workforce Committee, 
working to draft a bipartisan education bill which truly will help 
students in California and throughout the country. I have been touring 
the schools in my district to find out from teachers, administrators, 
parents, and students what they need from the Federal Government when 
it comes to education policy.

[[Page 8874]]

  I think the bill that was reported from the Education Committee makes 
an excellent start toward helping our students achieve success. I am 
pleased with the increased funding levels for title I, the education 
program for disadvantaged students, and the increased targeting of 
funds to low-income areas and at-risk students.
  I am also extremely happy with what is not in the bill--private 
school vouchers. The Education Committee voted to eliminate the voucher 
provisions and I hope the House will vote to keep vouchers out of the 
bill as well. We should be focusing on improving our public schools, 
rather than using public funds to send students to private schools. 
Vouchers don't make sense for Los Angeles area students. The $1,500 
voucher proposed by President Bush wouldn't be enough money to send a 
child to a private school in Los Angeles. And we simply don't have 
enough private schools willing to accept students with vouchers.
  Although I am happy with the bill, I do have some concerns. I had 
hoped that the Republican leadership would have allowed Democrats the 
opportunity to improve this bill through amendments. Unfortunately, we 
were not offered that opportunity. I wanted to offer an amendment to 
allow community learning centers to use their funds to implement 
programs which would help immigrant students with language and life 
skills. A similar amendment passed the other body by a 96-0 vote, and I 
had hoped the House would have the opportunity to vote on the 
amendment. Unfortunately, we were denied that opportunity.
  Also, I had hoped that a school construction amendment offered by my 
colleague from New York, Mr. Owens, would have been made in order for 
consideration today. California's efforts to reduce class size and our 
dramatic population increases have combined to make school construction 
essential. I am very disappointed that the House won't have the 
opportunity to vote on school construction today.
  I also have concerns with portions of the bill dealing with bilingual 
and immigrant education, and hope they can be improved as the bill 
moves through the legislative process. As our recent census numbers 
show us, bilingual and immigrant students are no longer solely the 
responsibility of States like California, Texas, Florida, and New York. 
We must be prepared to dramatically increase the funding for this 
program in order to meet the needs of states like Arkansas and Georgia, 
which are experiencing a large influx of immigrant and bilingual 
children.
  This bill also recommends that students be moved out of bilingual 
classrooms into English-only programs within three years. This 
provision is overly restrictive and has no basis in academic research. 
There is no evidence that students can learn a new language within 3 
years. Mandating a time limit on bilingual education impedes the 
ability of school districts to tailor their instruction to children's 
individual needs.
  I am also unhappy with the provision in H.R. 1 which require schools 
districts to try and receive a parent's permission before putting a 
child into a bilingual education program. Requiring parents to ``opt-
in'' in order to place their children in bilingual education is unfair. 
It places the burden of educating an English-learning student on the 
parent, rather than the school. In addition, there could also be a 
significant delay in a child's access to appropriate educational 
services as the parent and school deal with the administrative 
paperwork required to place a child in a bilingual education program.
  I think we have a very good education bill before us today. I know 
that some of my Republican colleagues will offer amendments to add 
private school vouchers or to block grant important education programs. 
I urge my colleagues to oppose these efforts and keep the important 
reforms made in the base bill.
  Mrs. MEEK of Florida. Mr. Chairman, there are some good things in 
this bill, but it has some very serious flaws, particularly the failure 
to fund school modernization and the tremendously damaging changes 
proposed in the permissible uses of funds under the title I program.
  The distinctive characteristic of Federal participation in elementary 
and secondary education has always been that Federal funding is 
targeted to reach the needs of students who come from low-income 
families. I firmly believe that we must continue this targeting. 
Unfortunately, by diluting the targeting of title I funds, H.R. 1 fails 
our students from low-income families and continues the movement toward 
abandoning our commitment to them.
  The title I program and the law were designed to reach those American 
children who come from low-income families. The formula for title I is 
driven by individual poverty; the number of children who qualify for 
free lunches determines the amount of money that goes to a school 
district.
  Currently, under title I, local education agencies target funds to 
schools with the highest percentage of children from low-income 
families. Unless a participating school is operating a ``schoolwide'' 
program, the school must target Title I services to children who are 
failing, or most at risk of failing, to meet State academic standards.
  When the program was created in 1965, the eligibility threshold for 
using title I funds to operate ``schoolwide'' programs was 75 percent. 
Let me repeat that again. Originally, 75 percent of students in a given 
school had to be poor in order for a school to be able to use title I 
funds in schoolwide programs.
  H.R. 1, as reported, lowers the poverty eligibility threshold for 
schoolwide programs from 50 percent to 40 percent. This change means 
that 60 percent of the students in that school do not have to qualify 
as poor; yet they will reap the benefits of title I funds.
  I am for helping all students in our public schools, but not by 
lowering the poverty threshold to 40 percent, and diluting the 
program's focus on poor children. Simply put, we are taking from the 
poor to give to those who are more fortunate. This is not the way to 
bridge the so-called achievement gap.
  The proposed change in the poverty eligibility threshhold is just the 
latest installment in the Congress' abandonment of students from low-
income families, the very students who historically have been the 
focus, and the intended beneficiaries of the title I program. If H.R. 1 
passes in this form, we will have gone from targeting the Federal 
Government's primary program in education to help the poor from schools 
with poverty levels of 75 percent to schools with poverty levels of 40 
percent. This seems to me very radical and very unwise.
  Education is the number one issue for all Americans, in large part 
because a good education is critical to achieving the American dream. 
We should focus our Federal investment on those that need it the most. 
The proposed change to title I is misguided and wrong. We should take a 
fresh look at this critical issue.
  Mr. GILMAN. Mr. Chairman, I rise today in support of H.R. 1 I am 
pleased that we are working on this education legislation so early in 
the 107th Congress and that this legislation will provide more funding 
for all of our Nation's schools.
  The basics of this bill include developing and implementing high 
academic standards, helping students achieve these standards with 
local, State, and Federal funding and requiring some level of 
accountability for student achievement.
  With a strong focus on improving reading skills and literacy, this 
legislation will help strengthen the foundation that all children need 
in order to succeed in school. Coupled with increased funding for title 
I programs which focus on helping disadvantaged students achieve high 
standards, this reading initiative will make a significant impact in 
children's lives.
  As cochair of the Congressional Child Care Caucus, I am particularly 
pleased with the Reading First Initiative with its funds targeting 
children ages three through five. These competitive grants will aid in 
the development of verbal skills, phonetic awareness, prereading 
development and assistance training for the professional development of 
teachers in child care centers or Head Start centers. If we are to 
expect our children to achieve great academic success in elementary and 
secondary school, it is vitally important that their teachers are ready 
and able to meet the challenges of everyday instruction in the 
classroom.
  Moreover, our Nation's teachers are called upon to act as surrogate 
parents, counselors, confidants, and security officers, in addition to 
their basic responsibilities of educating students on a daily basis. 
With many teachers choosing to leave the profession, we need to help 
retain them and by providing the necessary funding for training and 
professional development, as well as a teacher mentoring program, 
hopefully we can retain the best and brightest in their profession and 
prevent a massive shortage which is anticipated in New York State.
  Accordingly, I urge my colleagues to support this bill, as well as 
the Dunn amendment for school security program funding, the Meek 
amendment for student mentoring programs and the Mink amendment for new 
teacher mentoring. This legislation is a right first step towards 
strengthening and improving our Nation's public education system.
  Mrs. CHRISTENSEN. Mr. Chairman, I rise in support of H.R. 1--the 
Leave No Child Behind Act of 2001, in large measure because the members 
of the Education and Workforce Committee were able to come together on 
a bipartisan basis to forge an agreement on a

[[Page 8875]]

major education reform bill which would hold public schools accountable 
for improving the education of our children while offering substantial 
increases in Federal funds to help accomplish that goal.
  I applaud my colleagues the ranking Democrat on the Education and 
Workforce Committee, Mr. George Miller of California, for his work with 
Chairman Boehner and officials of the White House to reach a consensus 
on a bipartisan school improvement bill.
  As passed by the committee H.R. 1 authorizes $24 billion in funding 
on ESEA programs, representing a 29-percent increase over the current 
fiscal year and well above the funding levels provided for in President 
Bush's own budget.
  While these badly needed increase makes this is a good bill there 
still remain a number of political obstacles--such as the misguided 
budget reconciliation bill which this body passed last week--which must 
be overcome before we can have a sound bill. It is important to point 
out, that in their budget, the Republican leadership cut funding for 
education below even the President's request in order to pay for tax 
breaks for the wealthy.
  I would like to urge my colleagues on both sides of the isle not to 
forget to need for funding for school construction and modernization. 
Across the country, thousands of school buildings no longer function as 
effective places of learning, or even as decent places of shelter. Too 
many of our children are being left behind in schools with moldy walls, 
peeling paint, inadequate heat, poor ventilation, broken plumbing, 
leaky roofs, substandard electrical service, and rodent and insert 
infestations. School repairs are a massive and expensive problem that 
school districts cannot face along. They need Federal help.
  For this reason, Mr. Chairman, I would oppose any amendment to 
restore the President's choice proposal and I am disappointed at the 
adopted rule to block any amendment on school construction and 
modernization. My dear colleague Congressman Major Owens introduced one 
of those amendments. Congressman's Owen's amendment proposed $20 
billion for school construction, renovation and repair, provide schools 
located in underserved communities with funding to repair leaking roofs 
and faulty plumbing; ensure that schools built before WWII do not 
continue to contribute to childhood illnesses; and modernize more than 
150,000 schools nationwide.
  I would like to acknowledge and express my gratitude to Congressman 
Underwood for offering an amendment to title IV of the Elementary and 
Secondary Education Act of 1965 to include general assistance for 
certain outlying areas. The General Assistance Grant was established by 
section 4501 of the Elementary Act 1965, as amended, and provided for 
general assistance to improve education in, my district, the U.S. 
Virgin Islands. No appropriations have been provided fro this program 
since FY 1994, thus slowing almost to a halt, the incipient progress we 
were beginning to make in our education system. Mr. Chairman, while we 
fully recognize that it takes more than just money to make an 
educational system work well, this grant would give the Virgin Islands 
Department of Education, a tremendous and needed boost, in its ongoing 
efforts to improve the education it provides to our children. I am 
disappointed that the Rules Committee did not make Mr. Underwood's 
amendment in order amendment.
  This notwithstanding, the bill before us today is a big improvement 
over what the committee began considering. It provides substantial new 
resources, including $4 billion more for elementary and secondary 
education for next year compared to this year, in exchange for higher 
standards and tough accountability rules, which all of us want and 
support.
  I applaud the committee's Democrats as well as the Republicans who 
voted in committee to eliminate private school vouchers from this bill. 
Mr. Chairman, our public schools are plagued with enough problems 
already. We don't need to add to those problems by taking funding away 
from our schools in the form of vouchers.
  The bill we are considering today, Mr. Chairman, represents a 
compromise, which is what being a member of this body is all about. No 
side, neither Republican nor Democrat gets what they want all the time. 
That is what the Framers of our country intended when they created the 
principle of separation of powers. My constituents and the children of 
the Virgin Islands will benefit from the increased funding represented 
in this bipartisan bill. I urge my colleagues to support its passage.
  Mr. CRENSHAW. Mr. Chairman, I rise today to address this important 
measure to reform and improve our public education system.
  As an original cosponsor of H.R. 1, I, like many of my colleagues, 
was disappointed at some of the changes that the bill underwent during 
committee consideration. For instance, I believe that the school choice 
provisions that the President outlined in his education reform package 
represented a reasonable compromise. He provided a graduated series of 
steps that bolstered a failing school's efforts to improve without 
jeopardizing the students who attend that school awaiting improvement. 
His three-year program recognized that every year a child is in school 
is a precious opportunity to instill knowledge in her mind and a love 
of learning in her soul.
  I intend to support amendments that will be offered on the floor to 
restore these school choice provisions to the bill, and I am hopeful 
that these efforts will succeed. But, in the event that a majority of 
my colleagues do not share my belief in empowering parents through 
school choice, I am likely to still support this legislation.
  Mr. Chairman, we cannot allow the perfect to be the enemy of the 
good. There are many innovative and important proposals included in 
H.R. 1. It consolidates federal programs, cutting their number by half. 
It gives local school districts flexibility to transfer up to 50% of 
federal funding between programs--that is 10 times more flexibility 
than they are now afforded. It helps all parents--rich and poor alike--
to get their children the after-school, tutoring, or remedial 
assistance they need if they are in low-performing schools.
  While it may not include everything I would like, it represents a 
positive step forward. I commend Chairman Boehner and the Republicans 
and Democrats of the House Education and Workforce Committee for their 
hard work in crafting a compromise that keeps the dialogue open and 
keeps education reform moving forward.
  Mr. REYES. Mr. Chairman, today the House is taking up extremely 
important legislation, H.R. 1, a bill to reauthorize the Elementary and 
Secondary Education Act (ESEA). Although the bipartisan support for 
this bill is encouraging, just two weeks ago the republicans passed a 
budget resolution that committed no new resources for education. In 
fact, the budget resolution provided less than the amount the President 
requested by $900 million for fiscal year 2002 and by $21.4 billion 
over ten years. Instead of providing new resources for education, the 
conference report set funding levels equal to the amount needed, 
according the Congressional Budget Office (CBO), just to keep up with 
inflation. by contrast, H.R. 1 as reported authorizes approximately 
$5.5 billion more for elementary and secondary education programs for 
fiscal year 2002 than the $18.5 billion appropriated in fiscal year 
2001.
  This difference between the funding levels authorized in H.R. 1 and 
the funds committed to education in the budget conference report 
confirms my concern about the Republican budget. Although Republicans 
claim to support investments in priorities such as education, their 
budget did not commit the necessary resources. Furthermore, last week 
we voted on an unfair rule for H.R. 1 which prevented Democrats from 
offering key education priorities as amendments. There is nothing in 
the bill addressing class-size reduction, school modernization or the 
need to provide adequate funding authorizations for bilingual and 
migrant education.
  The absence of a specific class size reduction program in the bill is 
unfortunate. H.R. 1 combines professional development and class size. 
In my opinion, schools should not be forced to chose between reducing 
class size and providing high quality professional development. 
Research clearly shows that reducing class size, particularly in the 
early grades, improves student achievement.
  This bill also falls short of providing enough resources for migrant 
students. In just the past two years, the average number of dollars 
spent per migrant student has declined by 11 percent. This bill's 
proposed increase in migrant education funding does not go nearly far 
enough to reverse that decline.
  The bill further fails migrant students by omitting strong provisions 
to create a migrant student records transfer system. Such a system 
would eliminate two serious problems faced by migrant students: the 
health risks caused by multiple unnecessary vaccinations and the denial 
of high school graduation because of missing records of earned credits. 
H.R. 1 instead contains weak language that has already been in place 
for years and produced no results. We should not forgo the opportunity 
to ensure that migrant children are not left behind.
  In addition, this country faces a dramatic challenge in bringing 
schools up to minimally acceptable conditions as well as meeting school 
construction and modernization needs for the 21st century. In my 
district there are schools that finally have access to computers and 
technology, but don't have enough electrical outlets to run the 
technology. I am sure

[[Page 8876]]

that this is the case in school districts across the country where the 
average school building is 42 years old. States and localities cannot 
reasonably be expected to carry the incredible financial burden of 
building and repairing our schools. Well-maintained schools are 
critically important for the health and safety of our students. Federal 
help is not only appropriate, it is essential.
  Mr. Chairman, the nation's priorities in education will not be met 
within the confines of the budget resolution that was passed on May 
9th. We need to address issues such as class size reduction, school 
modernization, bilingual education and migrant student needs before we 
give massive tax cuts to the wealthiest Americans.
  I also want to share my grave concern about the ``parental 
notification and consent'' requirements contained in H.R.1. If enacted, 
these requirements will serve as a barrier to implementing bilingual 
education programs. According to this bill, schools will be required to 
``make reasonable and substantial efforts'' to gain informed parental 
consent prior to placing children in an instructional program that is 
not taught primarily in English. This provision places an undue 
bureaucratic burden on local schools that will deter them from offering 
bilingual education classes.
  These parental notification and consent measures have also been 
inserted into Title I--the section of the bill dedicated to assistance 
for low-income students. Schools that want to use some of their Title I 
funds for specialized services aimed at assisting limited English 
proficient children will be burdened with these requirements. No other 
group of students with special needs is singled out in this way. These 
provisions are a step back to the days when limited English proficient 
students were barred from Title I-funded education. These parental 
notification provisions are therefore inherently unfair and should be 
removed when this bill reaches the conference committee.
  Mr. BOEHNER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute printed in the bill shall be considered as an original bill 
for the purpose of amendment under the 5-minute rule and shall be 
considered read.
  The text of the committee amendment in the nature of a substitute is 
as follows:

                                 H.R. 1

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 2. REFERENCES.

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

     SEC. 3. TRANSITION.

       Except as otherwise specifically provided in this Act, or 
     any amendment made by this Act, any person or agency that was 
     awarded a grant under the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6301 et seq.) prior to the date of the 
     enactment of this Act shall continue to receive funds in 
     accordance with the terms of such award, except that such 
     funds may not be provided after the date that is one year 
     after the effective date of this Act.

     SEC. 4. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

    TITLE I--IMPROVING THE ACADEMIC PERFORMANCE OF THE DISADVANTAGED

                         Part A--Basic Program

Sec. 101. Disadvantaged children meet high academic standards.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation for school improvement.
Sec. 104. Basic programs.
Sec. 105. School choice.
Sec. 106. Academic assessment and local educational agency and school 
              improvement.
Sec. 107. State assistance for school support and improvement.
Sec. 108. Academic achievement awards program.

           Part B--Student Reading Skills Improvement Grants

Sec. 111. Reading first; early reading first.
Sec. 112. Amendments to Even Start.
Sec. 113. Inexpensive book distribution program.

                Part C--Education of Migratory Children

Sec. 121. State allocations.
Sec. 122. State applications; services.
Sec. 123. Authorized activities.
Sec. 124. Coordination of migrant education activities.

                 Part D--Neglected or Delinquent Youth

Sec. 131. Neglected or delinquent youth.
Sec. 132. Findings.
Sec. 133. Allocation of funds.
Sec. 134. State plan and State agency applications.
Sec. 135. Use of funds.
Sec. 136. Transition services.
Sec. 137. Purpose.
Sec. 138. Programs operated by local educational agencies.
Sec. 139. Local educational agency applications.
Sec. 140. Uses of funds.
Sec. 141. Program requirements.
Sec. 142. Program evaluations.

             Part E--Federal Evaluations and Demonstrations

Sec. 151. Evaluations.
Sec. 152. Demonstrations of innovative practices.
Sec. 153. Ellender-close up fellowship program; dropout reporting.

                  Part F--Comprehensive School Reform

Sec. 161. School reform.

           Part G--Rural Education Flexibility and Assistance

Sec. 171. Rural education.

                 Part H--General Provisions of Title I

Sec. 181. General provisions.

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

Sec. 201. Teacher quality training and recruiting fund.
Sec. 202. National writing project.
Sec. 203. Civic education; teacher liability protection.

   TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
              CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION

 Part A--Education of Limited English Proficient and Immigrant Children

Sec. 301. Programs authorized.
Sec. 302. Conforming amendment to Department of Education Organization 
              Act.

               Part B--Indian and Alaska Native Education

Sec. 311. Elementary and Secondary Education Act of 1965.
Sec. 312. Alaska Native education.
Sec. 313. Amendments to the education amendments of 1978.
Sec. 314. Tribally Controlled Schools Act of 1988.

  TITLE IV--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      Part A--Innovative Programs

Sec. 401. Promoting informed parental choice and innovative programs.
Sec. 402. Continuation of awards.

                     Part B--Public Charter Schools

Sec. 411. Public charter schools.
Sec. 412. Continuation of awards.

     Part C--Magnet Schools Assistance; Women's Educational Equity

Sec. 421. Magnet schools assistance.
Sec. 422. Women's educational equity.
Sec. 423. Continuation of awards.

                     TITLE V--21st CENTURY SCHOOLS

Sec. 501. Safe schools.

                      TITLE VI--IMPACT AID PROGRAM

Sec. 601. Payments under section 8002 with respect to fiscal years in 
              which insufficient funds are appropriated.
Sec. 602. Calculation of payment under section 8003 for small local 
              educational agencies.
Sec. 603. Construction.
Sec. 604. State consideration of payments in providing State aid.
Sec. 605. Authorization of appropriations.
Sec. 606. Redesignation of program.

                       TITLE VII--ACCOUNTABILITY

Sec. 701. Flexibility and accountability.

                     TITLE VIII--GENERAL PROVISIONS

Sec. 801. General provisions.
Sec. 802. Comprehensive regional assistance centers.
Sec. 803. National diffusion network.
Sec. 804. Eisenhower regional mathematics and science education 
              consortia.
Sec. 805. Technology-based technical assistance.
Sec. 806. Regional technical support and professional development.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                    Part A--Amendments to Other Acts


               SUBPART 1--NATIONAL EDUCATION STATISTICS ACT

Sec. 901. Amendment to NESA.


                      SUBPART 2--HOMELESS EDUCATION

Sec. 911. Short title.
Sec. 912. Findings.
Sec. 913. Purpose.
Sec. 914. Education for homeless children and youth.
Sec. 915. Technical amendment.

                            Part B--Repeals

Sec. 921. Repeals.

     SEC. 5. EFFECTIVE DATE.

       Except as otherwise specifically provided in this Act, this 
     Act, and the amendments made by this Act, shall take effect 
     on October 1, 2001, or on the date of the enactment of this 
     Act, whichever occurs later.

[[Page 8877]]



    TITLE I--IMPROVING THE ACADEMIC PERFORMANCE OF THE DISADVANTAGED

                         PART A--BASIC PROGRAM

     SEC. 101. DISADVANTAGED CHILDREN MEET HIGH ACADEMIC 
                   STANDARDS.

       Section 1001 is amended to read as follows:

     ``SEC. 1001. FINDINGS; STATEMENT OF PURPOSE; AND RECOGNITION 
                   OF NEED.

       ``(a) Findings.--Congress finds the following:
       ``(1) The Constitution of the United States reserves to the 
     States and to the people the responsibility for the general 
     supervision of public education in kindergarten through the 
     twelfth grade.
       ``(2) States, local educational agencies and schools should 
     be given maximum flexibility in exchange for greater academic 
     accountability, and be given greater freedom to build upon 
     existing innovative approaches for education reform.
       ``(3) The best education decisions are made by those who 
     know the students and who are responsible for implementing 
     the decisions.
       ``(4) Educators and parents should retain the right and 
     responsibility to educate their pupils and children free of 
     excessive regulation by the Federal Government.
       ``(5) The Supreme Court has regarded the right of parents 
     to direct the upbringing of their children as a fundamental 
     right implicit in the concept of ordered liberty within the 
     14th Amendment to the Constitution, as specified in Meyer v. 
     Nebraska, 262 U.S. 390 (1923), and Pierce v. Society of 
     Sisters, 268 U.S. 510 (1925).
       ``(6) Schools that enroll high concentrations of children 
     living in poverty face the greatest challenges, but effective 
     educational strategies based on scientifically based research 
     can succeed in educating children to high academic standards.
       ``(7) High-poverty schools are much more likely to be 
     identified as failing to meet State academic standards for 
     satisfactory progress. As a result, these schools are 
     generally the most in need of additional resources and 
     technical assistance to build the capacity of these schools 
     to address the many needs of their students.
       ``(8) The educational progress of children participating in 
     programs under this title is closely associated with their 
     being taught by a highly qualified staff, particularly in 
     schools with the highest concentrations of poverty, where 
     paraprofessionals, uncertified teachers, and teachers 
     teaching out of field frequently provide instructional 
     services.
       ``(9) Congress and the public would benefit from additional 
     data evaluating the efficacy of the Elementary and Secondary 
     Education Act of 1965.
       ``(10) Schools operating programs assisted under this part 
     must be held accountable for the educational achievement of 
     their students, when those students fail to demonstrate 
     progress in achieving high academic standards, local 
     educational agencies and States must take significant actions 
     to improve the educational opportunities available to them.
       ``(b) Purpose and Intent.--The purpose and intent of this 
     title are to ensure that all children have a fair and equal 
     opportunity to obtain a high-quality education.
       ``(c) Recognition of Need.--The Congress recognizes the 
     following:
       ``(1) Educational needs are particularly great for low-
     achieving children in our Nation's highest-poverty schools, 
     children with limited English proficiency, children of 
     migrant workers, children with disabilities, Indian children, 
     children who are neglected or delinquent, and young children 
     who are in need of reading assistance and family literacy 
     assistance.
       ``(2) Despite more than 3 decades of Federal assistance, a 
     sizable achievement gap remains between minority and 
     nonminority students, and between disadvantaged students and 
     their more advantaged peers.
       ``(3) Too many students attend local schools that fail to 
     provide them with a quality education, and are given no 
     alternatives to enable them to receive a quality education.
       ``(4) States, local educational agencies, and schools need 
     to be held accountable for improving the academic achievement 
     of all students, and for identifying and turning around low-
     performing schools.
       ``(5) States and local educational agencies need to ensure 
     that high quality academic assessments, accountability 
     systems, teacher preparation and training, curriculum, and 
     instructional materials are aligned with challenging State 
     academic standards so that students, teachers, parents, and 
     administrators can measure progress against common 
     expectations for student academic achievement.
       ``(6) Federal education assistance is intended not only to 
     increase pupil achievement overall, but also more 
     specifically and importantly, to help ensure that all 
     students, especially the disadvantaged, meet challenging 
     academic achievement standards. It can only be determined if 
     schools, local educational agencies, and States are reaching 
     this goal if student achievement results are reported 
     specifically by disadvantaged and minority status.''.

     SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

       Section 1002 is amended to read as follows:

     ``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Local Educational Agency Grants.--For the purpose of 
     carrying out part A, other than section 1120(e), there are 
     authorized to be appropriated $11,500,000,000 for fiscal year 
     2002, $13,000,000,000 for fiscal year 2003, $14,500,000,000 
     for fiscal year 2004, $16,000,000,000 for fiscal year 2005, 
     and $17,200,000,000 for fiscal year 2006.
       ``(b) Student Reading Skills Improvement Grants.--
       ``(1) Reading first.--For the purpose of carrying out 
     subpart 1 of part B, there are authorized to be appropriated 
     $900,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(2) Early reading first.--For the purpose of carrying out 
     subpart 2 of part B, there are authorized to be appropriated 
     $75,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(3) Even start.--For the purpose of carrying out subpart 
     3 of part B, there are authorized to be appropriated 
     $275,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(4) Inexpensive book distribution program.--For the 
     purpose of carrying out subpart 4 of part B, there are 
     authorized to be appropriated such sums as may be necessary 
     for fiscal year 2002 and each of the 4 succeeding fiscal 
     years.
       ``(c) Education of Migratory Children.--For the purpose of 
     carrying out part C, there are authorized to be appropriated 
     $420,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(d) Prevention and Intervention Programs for Youth Who 
     Are Neglected, Delinquent, or at Risk of Dropping Out.--For 
     the purpose of carrying out part D, there are authorized to 
     be appropriated $50,000,000 for fiscal year 2002 and such 
     sums as may be necessary for each of the 4 succeeding fiscal 
     years.
       ``(e) Comprehensive School Reform.--For the purpose of 
     carrying out part F, there are authorized to be appropriated 
     $260,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(f) Rural Education.--For the purpose of carrying out 
     part G, there are authorized to be appropriated $300,000,000 
     for fiscal year 2002 and such sums as may be necessary for 
     each of 4 succeeding fiscal years to be distributed equally 
     between subparts 1 and 2.
       ``(g) Capital Expenses.--For the purpose of carrying out 
     section 1120(e), there are authorized to be appropriated 
     $6,000,000 for fiscal year 2002, and such sums as may be 
     necessary for fiscal year 2003.
       ``(h) Federal Activities.--
       ``(1) Sections 1501 and 1502.--(A) For the purpose of 
     carrying out section 1501, there are authorized to be 
     appropriated $9,000,000 for fiscal year 2002 and such sums as 
     may be necessary for each of the 4 succeeding fiscal years.
       ``(B) For the purpose of carrying out section 1502, there 
     are authorized to be appropriated such sums as may be 
     necessary for fiscal year 2002 and for each of the 4 
     succeeding fiscal years.
       ``(2) Section 1503.--For the purpose of carrying out 
     section 1503, there are authorized to be appropriated such 
     sums as may be necessary for fiscal year 2002 and for each of 
     the 4 succeeding fiscal years.
       ``(i) State Administration.--
       ``(1) State reservation.--Each State may reserve, from the 
     sum of the amounts it receives under parts A, C, and D of 
     this title, an amount equal to the greater of 1 percent of 
     the amount it received under such parts for fiscal year 2001, 
     or $400,000 ($50,000 for each outlying area), including any 
     funds it receives under paragraph (2), to carry out 
     administrative duties assigned under parts A, C, and D.
       ``(2) Authorization of appropriations.--There are 
     authorized to be appropriated $10,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 4 
     succeeding fiscal years for additional State administration 
     grants. Any such additional grants shall be allocated among 
     the States in proportion to the sum of the amounts received 
     by each State for that fiscal year under parts A, C, and D of 
     this title.
       ``(3) Special rule.--The amount received by each State 
     under paragraphs (1) and (2) may not exceed the amount of 
     State funds expended by the State educational agency to 
     administer elementary and secondary education programs in 
     such State.
       ``(j) Assistance for Local School Improvement.--
       ``(1) Program authorized.--The Secretary shall award grants 
     to States to provide subgrants to local educational agencies 
     for the purpose of providing assistance for school 
     improvement consistent with section 1116. Such grants shall 
     be allocated among States, the Bureau of Indian Affairs, and 
     the outlying areas, in proportion to the grants received by 
     the State, the Bureau of Indian Affairs, and the outlying 
     areas for the fiscal year under parts A, C, and D of this 
     title. The Secretary shall expeditiously allocate a portion 
     of such funds to States for the purpose of assisting local 
     educational agencies and schools that were in school 
     improvement status on the date preceding the date of the 
     enactment of the No Child Left Behind Act of 2001.
       ``(2) Reallocations.--If a State does not apply for funds 
     under this subsection, the Secretary shall reallocate such 
     funds to other States in the same proportion funds are 
     allocated under paragraph (1).
       ``(3) State applications.--Each State educational agency 
     that desires to receive funds under this subsection shall 
     submit an application to the Secretary at such time, and 
     containing such information as the Secretary shall reasonably 
     require, except that such requirement shall be waived if a 
     State educational agency has submitted such information as 
     part of its State plan under this part. Each State plan shall 
     describe how such funds will be allocated to ensure that the 
     State educational agency and local educational agencies 
     comply with

[[Page 8878]]

     school improvement, corrective action, and restructuring 
     requirements of section 1116.
       ``(4) Local educational agency grants.--A grant to a local 
     educational agency under this subsection shall be--
       ``(A) of sufficient size and scope to support the 
     activities required under sections 1116 and 1117, but not 
     less than $50,000 and not more than $500,000 to each 
     participating school;
       ``(B) integrated with funds awarded by the State under this 
     Act; and
       ``(C) renewable for 2 additional 1-year periods if schools 
     are making yearly progress consistent with State and local 
     educational agency plans developed under section 1116.
       ``(5) Priority.--The State, in awarding such grants, shall 
     give priority to local educational agencies with the lowest 
     achieving schools, that demonstrate the greatest need for 
     such funds, and that demonstrate the strongest commitment to 
     making sure such funds are used to provide adequate resources 
     to enable the lowest achieving schools to meet the yearly 
     progress goals under State and local school improvement, 
     corrective action, and restructuring plans under section 
     1116.
       ``(6) Administrative costs.--A State educational agency 
     that receives a grant award under this subsection may reserve 
     not more than 5 percent of such award for administration, 
     evaluation, and technical assistance expenses.
       ``(7) Local awards.--Each local educational agency that 
     applies for assistance under this subsection shall describe 
     how it will provide the lowest achieving schools the 
     resources necessary to meet yearly progress goals under State 
     and local school improvement, corrective action, and 
     restructuring plans under section 1116.
       ``(8) Authorization of appropriations.--For the purpose of 
     carrying out this subsection, there are authorized to be 
     appropriated $500,000,000 for fiscal year 2002 and such sums 
     as may be necessary for each of the 4 succeeding fiscal 
     years.''.

     SEC. 103. RESERVATION FOR SCHOOL IMPROVEMENT.

       Section 1003 is amended to read as follows:

     ``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

       ``(a) State Reservations.--Each State shall reserve 1 
     percent of the amount it receives under subpart 2 of part A 
     for fiscal years 2002 and 2003, and 3 percent of the amount 
     received under such subpart for fiscal years 2004 through 
     2006, to carry out subsection (b) and to carry out the 
     State's responsibilities under sections 1116 and 1117, 
     including carrying out the State educational agency's 
     statewide system of technical assistance and support for 
     local educational agencies.
       ``(b) Uses.--Of the amount reserved under subsection (a) 
     for any fiscal year, the State educational agency shall 
     allocate at least 95 percent of that amount directly to local 
     educational agencies for schools identified for school 
     improvement, corrective action, and restructuring under 
     section 1116(c) that have the greatest need for that 
     assistance in amounts sufficient to have a significant impact 
     in improving those schools.
       ``(c) Priority.--The State educational agency, in 
     allocating funds to local educational agencies under this 
     section, shall give priority to local educational agencies 
     that--
       ``(1) have the lowest achieving schools;
       ``(2) demonstrate the greatest need for such funds; and
       ``(3) demonstrate the strongest commitment to ensuring that 
     such funds are used to enable the lowest achieving schools to 
     meet the yearly progress goals under section 
     1116(b)(3)(A)(v).
       ``(d) Unused Funds.--If, after consultation with local 
     educational agencies in the State, the State educational 
     agency determines that the amount of funds reserved to carry 
     out subsection (b) is greater than the amount needed to 
     provide the assistance described in that subsection, it may 
     allocate the excess amount to local educational agencies in 
     accordance with either or both--
       ``(1) the relative allocations it made to those agencies 
     for that fiscal year under subpart 2 of part A; or
       ``(2) section 1126(c).
       ``(e) Special Rule.--Notwithstanding any other provision of 
     this section, the amount of funds reserved by the State under 
     subsection (a) in any given fiscal year shall not decrease 
     the amount of State funds each local educational agency 
     receives below the amount received by such agency under 
     subpart 2 in the preceding fiscal year.''.

     SEC. 104. BASIC PROGRAMS.

       The heading for part A of title I and sections 1111 through 
     1115 are amended to read as follows:

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

                ``Subpart 1--Basic Program Requirements

     ``SEC. 1111. STATE PLANS.

       ``(a) Plans Required.--
       ``(1) In general.--Any State desiring to receive a grant 
     under this part shall submit to the Secretary, by March 1, 
     2002, a plan, developed in consultation with local 
     educational agencies, teachers, principals, pupil services 
     personnel, administrators (including administrators of 
     programs described in other parts of this title), other 
     staff, and parents, that satisfies the requirements of this 
     section and that is coordinated with other programs under 
     this Act, the Individuals with Disabilities Education Act (20 
     U.S.C. 1400 et seq.), the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2301 et seq.), the 
     Head Start Act (42 U.S.C. 9831 et seq.), and the McKinney-
     Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.).
       ``(2) Consolidated plan.--A State plan submitted under 
     paragraph (1) may be submitted as part of a consolidated plan 
     under section 8302.
       ``(b) Academic Standards, Academic Assessments, and 
     Accountability.--
       ``(1) Challenging academic standards.--
       ``(A) Each State plan shall demonstrate that the State has 
     adopted challenging academic content standards and 
     challenging student academic achievement standards that will 
     be used by the State, its local educational agencies, and its 
     schools to carry out this part, except that a State shall not 
     be required to submit such standards to the Secretary.
       ``(B) The academic standards required by subparagraph (A) 
     shall be the same academic standards that the State applies 
     to all schools and children in the State.
       ``(C) The State shall have such academic standards for all 
     public elementary and secondary school children, including 
     children served under this part, in subjects determined by 
     the State, but including at least mathematics, reading or 
     language arts, and science (beginning in the 2005-2006 school 
     year), which shall include the same knowledge, skills, and 
     levels of achievement expected of all children.
       ``(D) Academic standards under this paragraph shall 
     include--
       ``(i) challenging academic content standards in academic 
     subjects that--

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

       ``(ii) challenging student academic achievement standards 
     that--

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

       ``(E) For the subjects in which students will be served 
     under this part, but for which a State is not required by 
     subparagraphs (A), (B), and (C) to develop, and has not 
     otherwise developed such academic standards, the State plan 
     shall describe a strategy for ensuring that students are 
     taught the same knowledge and skills in such subjects and 
     held to the same expectations as are all children.
       ``(F) Nothing in this part shall prohibit a State from 
     revising any standard adopted under this part before or after 
     the date of enactment of the No Child Left Behind Act of 
     2001.
       ``(2) Accountability.--
       ``(A) In general.--Each State plan shall demonstrate that 
     the State has developed and is implementing a statewide State 
     accountability system that has been or will be effective in 
     ensuring that all local educational agencies, public 
     elementary schools, and public secondary schools make 
     adequate yearly progress as defined under subparagraph (B). 
     Each State accountability system shall--
       ``(i) be based on the academic standards and academic 
     assessments adopted under paragraphs (1) and (4) and take 
     into account the performance of all public school students;
       ``(ii) be the same as the accountability system the State 
     uses for all public schools or all local educational agencies 
     in the State, except that public schools and local 
     educational agencies not participating under this part are 
     not subject to the requirements of section 1116; and
       ``(iii) include rewards and sanctions the State will use to 
     hold local educational agencies and public schools 
     accountable for student achievement and for ensuring that 
     they make adequate yearly progress in accordance with the 
     State's definition under subparagraph (B).
       ``(B) Adequate yearly progress.--Each State plan shall 
     demonstrate, based on academic assessments described under 
     paragraph (4), what constitutes adequate yearly progress of 
     the State, and of public schools and local educational 
     agencies in the State, toward enabling all public school 
     students to meet the State's student academic achievement 
     standards, while working toward the goal of narrowing the 
     achievement gaps in the State, local educational agency, and 
     school.
       ``(C) Definition.--`Adequate yearly progress' shall be 
     defined by the State in a manner that--
       ``(i) applies the same high academic standards of academic 
     performance to all public school students in the State;
       ``(ii) measures the progress of public schools and local 
     educational agencies based primarily on the academic 
     assessments described in paragraph (4);
       ``(iii) measures the student dropout rate, as defined for 
     the Common Core of Data maintained by the National Center for 
     Education Statistics established under section 403 of the 
     National Education Statistics Act of 1994 (20 U.S.C. 9002);
       ``(iv) includes separate annual numerical objectives for 
     continuing and significant improvement in each of the 
     following (except that disaggregation of data under 
     subclauses (II) and (III) shall not be required in a case in 
     which the number of students in a category is insufficient to 
     yield statistically reliable information or the results would 
     reveal individually

[[Page 8879]]

     identifiable information about an individual student):
       ``(I) The achievement of all public school students.
       ``(II) The achievement of--
       ``(aa) economically disadvantaged students;
       ``(bb) students from major racial and ethnic groups;
       ``(cc) students with disabilities; and
       ``(dd) students with limited English proficiency;
       ``(III) solely for the purpose of determining adequate 
     yearly progress of the State, the acquisition of English 
     language proficiency by children with limited English 
     proficiency;
       ``(v) at the State's discretion, may also include other 
     academic measures such as promotion, completion of college 
     preparatory courses, and high school completion (and for 
     individual local educational agencies and schools, the 
     acquisition of English language proficiency by children with 
     limited English proficiency), except that inclusion of such 
     other measures may not change which schools or local 
     educational agencies would otherwise be subject to 
     improvement or corrective action under section 1116 if the 
     discretionary indicators were not included; and
       ``(vi) includes a timeline that--

       ``(I) uses as a baseline year the year following the date 
     of enactment of the No Child Left Behind Act of 2001;
       ``(II) establishes a target year by which all members of 
     each group of students described in subclauses (I) and (II) 
     of clause (iii) shall meet or exceed the State's proficient 
     level of academic performance on the State academic 
     assessment used for the purposes of this section and section 
     1116, except that the target year shall not be more than 12 
     years from the baseline year; and
       ``(III) for each year until and including the target year, 
     establishes annual goals for the academic performance of each 
     group of students described in subclauses (I) and (II) of 
     clause (iii) on the State academic assessment that--

       ``(aa) indicates a minimum percentage of students who must 
     meet the proficient level on the academic assessment, such 
     that the minimum percentage is the same for each group of 
     students described in subclauses (I) and (II) of clause 
     (iii); or
       ``(bb) indicates an annual minimum amount by which the 
     percentage of students who meet the proficient level among 
     each group of students described in subclauses (I) and (II) 
     of clause (iii) shall increase, such that the minimum 
     increase for each group is equal to or greater than 100 
     percent minus the percentage of the group meeting the 
     proficient level in the baseline year divided by the number 
     of years from the baseline year to the target year 
     established under clause (I).
       ``(D) Annual improvement for schools.--For a school to make 
     adequate yearly progress under subparagraph (A), not less 
     than 95 percent of each group of students described in 
     subparagraph (C)(iii)(II) who are enrolled in the school are 
     required to take the academic assessments, consistent with 
     section 612(a)(17)(A) of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1412(a)(17)(A)) and paragraph 
     (4)(G)(ii), on which adequate yearly progress is based.
       ``(E) Public notice and comment.--Each State shall ensure 
     that in developing its plan, it diligently seeks public 
     comment from a range of institutions and individuals in the 
     State with an interest in improved student achievement and 
     that the State makes and will continue to make a substantial 
     effort to ensure that information under this part is widely 
     known and understood by the public, parents, teachers, and 
     school administrators throughout the State. Such efforts 
     shall include, at a minimum, publication of such information 
     and explanatory text, broadly to the public through such 
     means as the Internet, the media, and public agencies.
       ``(3) State authority.--If a State educational agency 
     provides evidence, which is satisfactory to the Secretary, 
     that neither the State educational agency nor any other State 
     government official, agency, or entity has sufficient 
     authority, under State law, to adopt curriculum content and 
     student academic achievement standards, and academic 
     assessments aligned with such academic standards, which will 
     be applicable to all students enrolled in the State's public 
     schools, then the State educational agency may meet the 
     requirements of this subsection by--
       ``(A) adopting academic standards and academic assessments 
     that meet the requirements of this subsection, on a statewide 
     basis, limiting their applicability to students served under 
     this part; or
       ``(B) adopting and implementing policies that ensure that 
     each local educational agency in the State which receives 
     grants under this part will adopt curriculum content and 
     student academic achievement standards, and academic 
     assessments aligned with such standards, which meet all of 
     the criteria in this subsection and any regulations regarding 
     such standards and assessments which the Secretary may 
     publish, and which are applicable to all students served by 
     each such local educational agency.
       ``(4) Academic Assessments.--Each State plan shall 
     demonstrate that the State has implemented a set of high-
     quality, yearly student academic assessments that include, at 
     a minimum, academic assessments in mathematics, and reading 
     or language arts, that will be used as the primary means of 
     determining the yearly performance of the State and of each 
     local educational agency and school in enabling all children 
     to meet the State's challenging student academic achievement 
     standards. Such assessments shall--
       ``(A) be the same academic assessments used to measure the 
     performance of all children;
       ``(B) be aligned with the State's challenging content and 
     student academic achievement standards and provide coherent 
     information about student attainment of such standards;
       ``(C) be used for purposes for which such assessments are 
     valid and reliable, and be consistent with relevant, 
     recognized professional and technical standards for such 
     assessments;
       ``(D) for the purposes of this part, be scored to ensure 
     the performance of each student is evaluated solely against 
     the State's challenging academic content standards and not 
     relative to the score of other students;
       ``(E) except as otherwise provided for grades 3 through 8 
     under subparagraph (G), measure the proficiency of students 
     in, at a minimum, mathematics and reading or language arts, 
     and be administered not less than once during--
       ``(i) grades 3 through 5;
       ``(ii) grades 6 through 9; and
       ``(iii) grades 10 through 12;
       ``(F) involve multiple up-to-date measures of student 
     achievement, including measures that assess critical thinking 
     skills and understanding;
       ``(G) beginning not later than school year 2004-2005, 
     measure the performance of students against the challenging 
     State content and student academic achievement standards in 
     each of grades 3 through 8 in, at a minimum, mathematics, and 
     reading or language arts, except that the Secretary may 
     provide the State 1 additional year if the State demonstrates 
     that exceptional or uncontrollable circumstances, such as a 
     natural disaster or a precipitous and unforeseen decline in 
     the financial resources of the State, prevented full 
     implementation of the academic assessments by that deadline 
     and that it will complete implementation within the 
     additional 1-year period;
       ``(H) provide for--
       ``(i) the participation in such assessments of all 
     students;
       ``(ii) the reasonable adaptations and accommodations for 
     students with disabilities defined under 602(3) of the 
     Individuals with Disabilities Education Act (20 U.S.C. 
     1401(3)) necessary to measure the achievement of such 
     students relative to State content and State student academic 
     achievement standards;
       ``(iii) the inclusion of limited English proficient 
     students who shall be assessed, to the extent practicable, in 
     the language and form most likely to yield accurate and 
     reliable information on what such students know and can do in 
     content areas;
       ``(iv) notwithstanding clause (iii), the academic 
     assessment (using tests written in English) of reading or 
     language arts of any student who has attended school in the 
     United States (not including Puerto Rico) for 3 or more 
     consecutive school years, except if the local educational 
     agency determines, on a case-by-case individual basis, that 
     academic assessments in another language and form would 
     likely yield more accurate and reliable information on what 
     such students know and can do, the local educational agency 
     may assess such students in the appropriate language other 
     than English for 1 additional year;
       ``(I) include students who have attended schools in a local 
     educational agency for a full academic year but have not 
     attended a single school for a full academic year, except 
     that the performance of students who have attended more than 
     1 school in the local educational agency in any academic year 
     shall be used only in determining the progress of the local 
     educational agency;
       ``(J) produce individual student reports to be provided to 
     parents, which include academic assessment scores, or other 
     information on the attainment of student academic achievement 
     standards; and
       ``(K) enable results to be disaggregated within each State, 
     local educational agency, and school by gender, by each major 
     racial and ethnic group, by English proficiency status, by 
     migrant status, by students with disabilities as compared to 
     nondisabled students, and by economically disadvantaged 
     students as compared to students who are not economically 
     disadvantaged.
       ``(5) Special rule.--Academic assessment measures in 
     addition to those in paragraph (4) that do not meet the 
     requirements of such paragraph may be included as additional 
     measures, but may not be used in lieu of the academic 
     assessments required in paragraph (4). Results on any 
     additional measures under this paragraph shall not change 
     which schools or local educational agencies would otherwise 
     be subject to improvement or corrective action under section 
     1116 if the additional measures were not included.
       ``(6) Language assessments.--Each State plan shall identify 
     the languages other than English that are present in the 
     participating student population and indicate the languages 
     for which yearly student academic assessments are not 
     available and are needed. The State shall make every effort 
     to develop such assessments and may request assistance from 
     the Secretary if linguistically accessible academic 
     assessment measures are needed. Upon request, the Secretary 
     shall assist with the identification of appropriate academic 
     assessment measures in the needed languages, but shall not 
     mandate a specific academic assessment or mode of 
     instruction.
       ``(7) Academic assessments of english language 
     proficiency.--Each State plan shall demonstrate that local 
     educational agencies in the State will, beginning no later 
     than school

[[Page 8880]]

     year 2002-2003, annually assess the English proficiency of 
     all students with limited English proficiency in their 
     schools.
       ``(8) Requirement.--Each State plan shall describe--
       ``(A) how the State educational agency will assist each 
     local educational agency and school affected by the State 
     plan to develop the capacity to comply with each of the 
     requirements of sections 1112(c)(1)(D), 1114(c), and 1115(c) 
     that is applicable to such agency or school;
       ``(B) how the State educational agency will assist each 
     local educational agency and school affected by the State 
     plan to provide additional educational assistance to 
     individual students assessed as needing help to achieve the 
     State's challenging academic standards.
       ``(C) such other factors as the State considers appropriate 
     to provide students an opportunity to achieve the knowledge 
     and skills described in the challenging academic content 
     standards adopted by the State.
       ``(9) Use of academic assessment results to improve student 
     achievement.--Each State plan shall describe how the State 
     will ensure that the results of the State assessments 
     described in paragraph (4)--
       ``(A) will be provided promptly, but not later than the end 
     of the school year (consistent with 1116, to local 
     educational agencies, schools, and teachers in a manner that 
     is clear and easy to understand; and
       ``(B) be used by those local educational agencies, schools, 
     and teachers to improve the educational achievement of 
     individual students.
       ``(10) Technical assistance on academic assessment 
     requirements.--The Secretary shall provide technical 
     assistance to interested States regarding how to meet the 
     requirements of paragraph (4).
       ``(c) Other Provisions To Support Teaching and Learning.--
     Each State plan shall contain assurances that--
       ``(1) the State shall produce, beginning with the 2003-2004 
     school year, the annual State report cards described in 
     subsection (h)(1);
       ``(2) the State will participate, beginning in school year 
     2002-2003, in annual academic assessments of 4th and 8th 
     grade reading and mathematics under--
       ``(A) the State National Assessment of Educational Progress 
     carried out under section 411(b)(2) of the National Education 
     Statistics Act of 1994 (20 U.S.C. 9010(b)(2)); or
       ``(B) another academic assessment selected by the State 
     which meets the criteria of section 7101(b)(1)(B)(ii) of this 
     Act;
       ``(3) the State educational agency shall work with other 
     agencies, including educational service agencies or other 
     local consortia, and institutions to provide technical 
     assistance to local educational agencies and schools to carry 
     out the State educational agency's responsibilities under 
     this part, including technical assistance in providing 
     professional development under section 1119A and technical 
     assistance under section 1117; and
       ``(4)(A) where educational service agencies exist, the 
     State educational agency shall consider providing 
     professional development and technical assistance through 
     such agencies; and
       ``(B) where educational service agencies do not exist, the 
     State educational agency shall consider providing 
     professional development and technical assistance through 
     other cooperative agreements such as through a consortium of 
     local educational agencies;
       ``(5) the State educational agency shall notify local 
     educational agencies and the public of the content and 
     student academic achievement standards and academic 
     assessments developed under this section, and of the 
     authority to operate schoolwide programs, and will fulfill 
     the State educational agency's responsibilities regarding 
     local educational agency improvement and school improvement 
     under section 1116, including such corrective actions as are 
     necessary;
       ``(6) the State educational agency shall provide the least 
     restrictive and burdensome regulations for local educational 
     agencies and individual schools participating in a program 
     assisted under this part;
       ``(7) the State educational agency shall inform the 
     Secretary and the public of how Federal laws, if at all, 
     hinder the ability of States to hold local educational 
     agencies and schools accountable for student academic 
     performance;
       ``(8) the State educational agency will encourage schools 
     to consolidate funds from other Federal, State, and local 
     sources for schoolwide reform in schoolwide programs under 
     section 1114;
       ``(9) the State educational agency shall modify or 
     eliminate State fiscal and accounting barriers so that 
     schools can easily consolidate funds from other Federal, 
     State, and local sources for schoolwide programs under 
     section 1114;
       ``(10) the State educational agency has involved the 
     committee of practitioners established under section 1603(b) 
     in developing the plan and monitoring its implementation;
       ``(11) the State educational agency shall inform local 
     educational agencies of the local educational agency's 
     authority to transfer funds under title VII, to obtain 
     waivers under title VIII and, if the State is an Ed-Flex 
     Partnership State, to obtain waivers under the Education 
     Flexibility Partnership Act of 1999 (20 U.S.C. 5891a et 
     seq.); and
       ``(12) the State educational agency shall encourage local 
     educational agencies and individual schools participating in 
     a program assisted under this part to offer family literacy 
     services (using funds under this part), if the agency or 
     school determines that a substantial number of students 
     served under this part by the agency or school have parents 
     who do not have a high school diploma or its recognized 
     equivalent or who have low levels of literacy.
       ``(d) Peer Review and Secretarial Approval.--The Secretary 
     shall--
       ``(1) establish a peer review process to assist in the 
     review of State plans;
       ``(2) approve a State plan within 120 days of its 
     submission unless the Secretary determines that the plan does 
     not meet the requirements of this section;
       ``(3) if the Secretary determines that the State plan does 
     not meet the requirements of subsection (a), (b), or (c), 
     immediately notify the State of such determination and the 
     reasons for such determination;
       ``(4) not decline to approve a State's plan before--
       ``(A) offering the State an opportunity to revise its plan;
       ``(B) providing technical assistance in order to assist the 
     State to meet the requirements under subsections (a), (b), 
     and (c); and
       ``(C) providing a hearing; and
       ``(5) have the authority to disapprove a State plan for not 
     meeting the requirements of this part, but shall not have the 
     authority to require a State, as a condition of approval of 
     the State plan, to include in, or delete from, such plan 1 or 
     more specific elements of the State's academic content 
     standards or to use specific academic assessment instruments 
     or items.
       ``(e) Duration of the Plan.--
       ``(1) In general.--Each State plan shall--
       ``(A) be submitted for the first year for which this part 
     is in effect after the date of the enactment of the No Child 
     Left Behind Act of 2001;
       ``(B) remain in effect for the duration of the State's 
     participation under this part; and
       ``(C) be periodically reviewed and revised by the State, as 
     necessary, to reflect changes in the State's strategies and 
     programs under this part.
       ``(2) Additional information.--If the State makes 
     significant changes in its plan, such as the adoption of new 
     or revised State academic content standards and State student 
     achievement standards, new academic assessments, or a new 
     definition of adequate yearly progress, the State shall 
     submit such information to the Secretary.
       ``(f) Limitation on Conditions.--Officers and employees of 
     the Federal Government are prohibited from mandating, 
     directing, or controlling a State, local educational agency, 
     or school's specific instructional content or student 
     academic achievement standards and academic assessments, 
     curriculum, or program of instruction, as a condition of 
     eligibility to receive funds under this part.
       ``(g) Penalties.--
       ``(1) Failure to meet deadlines enacted in 1994.--
       ``(A) In general.--If a State fails to meet the deadlines 
     established by the Improving America's Schools Act of 1994 
     (or under any waiver granted by the Secretary or under any 
     compliance agreement with the Secretary) for demonstrating 
     that it has in place challenging academic content standards 
     and student achievement standards, and a system for measuring 
     and monitoring adequate yearly progress, the Secretary shall 
     withhold 25 percent of the funds that would otherwise be 
     available for State administration and activities in each 
     year until the Secretary determines that the State meets 
     those requirements;
       ``(B) No extension.--The Secretary shall not grant any 
     additional waivers of, or enter into any additional 
     compliance agreements to extend, the deadlines described in 
     subparagraph (A) for any State.
       ``(2) Failure to meet requirements enacted in 2001.--If a 
     State fails to meet any of the requirements of this section, 
     other than the requirements described in paragraph (1), the 
     Secretary may withhold funds for State administration until 
     the Secretary determines that the State has fulfilled those 
     requirements.
       ``(h) Reports.--
       ``(1) Annual state report card.--
       ``(A) In general.--Not later than the beginning of the 
     2003-2004 school year, a State that receives assistance under 
     this Act shall prepare and disseminate an annual State report 
     card.
       ``(B) Implementation.--The State report card shall be--
       ``(i) concise; and
       ``(ii) presented in a format and manner that parents can 
     understand, and which, to the extent practicable, shall be in 
     a language the parents can understand.
       ``(C) Public dissemination.--The State shall widely 
     disseminate the information described in subparagraph (D) to 
     all schools and local educational agencies in the State and 
     make the information broadly available through public means, 
     such as posting on the Internet, distribution to the media, 
     and distribution through public agencies.
       ``(D) Required information.--The State shall include in its 
     annual State report card--
       ``(i) information, in the aggregate, on student achievement 
     at each proficiency level on the State academic assessments 
     described in subsection (b)(4)(F) (disaggregated by race, 
     ethnicity, gender, disability status, migrant status, English 
     proficiency, and status as economically disadvantaged, except 
     that such disaggregation shall not be required in a case in 
     which the number of students in a category is insufficient to 
     yield statistically reliable information or the results would 
     reveal individually identifiable information about an 
     individual student);
       ``(ii) the percentage of students not tested (disaggregated 
     by the same categories and subject to the same exception 
     described in clause (i));

[[Page 8881]]

       ``(iii) the percentage of students who graduate from high 
     school within 4 years of starting high school;
       ``(iv) the percentage of students who take and complete 
     advanced placement courses as compared to the population of 
     the students eligible to take such courses, and the rate of 
     passing of advanced placement tests;
       ``(v) the professional qualifications of teachers in the 
     aggregate, including the percentage of teachers teaching with 
     emergency or provisional qualifications, and the percentage 
     of class sections not taught by fully qualified teachers; and
       ``(vi) such other information (such as dropout and school 
     attendance rates; and average class size by grade level) as 
     the State believes will best provide parents, students, and 
     other members of the public with information on the progress 
     of each of the State's public schools.
       ``(2) Content of local educational agency report cards.--
       ``(A) Minimum requirements.--The State shall ensure that 
     each local educational agency collects appropriate data and 
     includes in its annual report for each of its schools, at a 
     minimum--
       ``(i) the information described in paragraph (1)(D) for 
     each local educational agency and school; and
       ``(ii)(I) in the case of a local educational agency--

       ``(aa) the number and percentage of schools identified for 
     school improvement and how long they have been so identified, 
     including schools identified under section 1116(c) of this 
     Act; and
       ``(bb) information that shows how students in its schools 
     perform on the statewide academic assessment compared to 
     students in the State as a whole; and

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

       ``(aa) whether it has been identified for school 
     improvement; and
       ``(bb) information that shows how its students performed on 
     the statewide academic assessment compared to students in the 
     local educational agency and the State as a whole.

       ``(B) Other information.--A local educational agency may 
     include in its annual reports any other appropriate 
     information whether or not such information is included in 
     the annual State report.
       ``(C) Public dissemination.--The local educational agency 
     shall, not later than the beginning of the 2003-2004 school 
     year, publicly disseminate the information described in this 
     paragraph to all schools in the district and to all parents 
     of students attending those schools (to the extent 
     practicable, in a language they can understand), and make the 
     information broadly available through public means, such as 
     posting on the Internet, distribution to the media, and 
     distribution through public agencies.
       ``(3) Pre-existing report cards.--A State or local 
     educational agency that was providing public report cards on 
     the performance of students, schools, local educational 
     agencies, or the State prior to the enactment of the No Child 
     Left Behind Act of 2001 may use those reports for the purpose 
     of this subsection, so long as any such report is modified, 
     as may be needed, to contain the information required by this 
     subsection.
       ``(4) Annual state report to the secretary.--Each State 
     receiving assistance under this Act shall report annually to 
     the Secretary, and make widely available within the State--
       ``(A) beginning with school year 2001-2002, information on 
     the State's progress in developing and implementing the 
     academic assessment system described in subsection (b)(4);
       ``(B) beginning not later than school year 2004-2005, 
     information on the achievement of students on the academic 
     assessments required by that subsection, including the 
     disaggregated results for the categories of students 
     identified in subsection (b)(2)(C)(iii)(II);
       ``(C) beginning not later than school year 2002-2003, 
     information on the acquisition of English proficiency by 
     children with limited English proficiency; and
       ``(D) in any year before the State begins to provide the 
     information described in subparagraph (B), information on the 
     results of student academic assessments (including 
     disaggregated results) required under this section.
       ``(5) Parents right-to-know.--
       ``(A) Qualifications.--At the beginning of each school 
     year, a local educational agency that receives funds under 
     this part shall notify the parents of each student attending 
     any school receiving funds under this part that they may 
     request, and shall provide the parents upon request (and in a 
     timely manner), information regarding the professional 
     qualifications of the student's classroom teachers, 
     including, at a minimum, the following:
       ``(i) Whether the teacher has met State qualification and 
     licensing criteria for the grade levels and subject areas in 
     which the teacher provides instruction.
       ``(ii) Whether the teacher is teaching under emergency or 
     other provisional status through which State qualification or 
     licensing criteria have been waived.
       ``(iii) The baccalaureate degree major of the teacher and 
     any other graduate certification or degree held by the 
     teacher, and the field of discipline of the certification or 
     degree.
       ``(iv) Whether the child is provided services by 
     paraprofessionals and if so, their qualifications.
       ``(B) Additional information.--In addition to the 
     information which parents may request under subparagraph (A), 
     a school which receives funds under this part shall provide 
     to each individual parent--
       ``(i) information on the level of performance of the 
     individual student for whom they are the parent in each of 
     the State academic assessments as required under this part; 
     and
       ``(ii) timely notice that the student for whom they are the 
     parent has been assigned, or has been taught for 4 or more 
     consecutive weeks by, a teacher who is not fully qualified.
       ``(C) Format.--The notice and information provided to 
     parents under this paragraph shall be in an understandable 
     and uniform format and, to the extent practicable, provided 
     in a language that the parents can understand.
       ``(6) Plan content.--A State shall include in its plan 
     under subsection (b) an assurance that it has in effect a 
     policy that meets the requirements of this section.
       ``(i) Privacy.--Information collected under this section 
     shall be collected and disseminated in a manner that protects 
     the privacy of individuals.

     ``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

       ``(a) Plans Required.--
       ``(1) Subgrants.--A local educational agency may receive a 
     subgrant under this part for any fiscal year only if such 
     agency has on file with the State educational agency a plan, 
     approved by the State educational agency, that is coordinated 
     with other programs under this Act, the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.), the Carl 
     D. Perkins Vocational and Technical Education Act of 1998 (20 
     U.S.C. 2301 et seq.), the Head Start Act (42 U.S.C. 9831 et 
     seq.), the McKinney-Vento Homeless Assistance Act, and other 
     Acts, as appropriate.
       ``(2) Consolidated application.--The plan may be submitted 
     as part of a consolidated application under section 8305.
       ``(b) Plan Provisions.--In order to help low achieving 
     children achieve high academic standards, each local 
     educational agency plan shall include--
       ``(1) a description of additional high-quality student 
     academic assessments, if any, other than the academic 
     assessments described in the State plan under section 1111, 
     that the local educational agency and schools served under 
     this part will use to--
       ``(A) determine the success of children served under this 
     part in meeting the State's student academic achievement 
     standards and provide information to teachers, parents, and 
     students on the progress being made toward meeting the State 
     student academic achievement standards described in section 
     1111(b)(1)(D)(ii);
       ``(B) assist in diagnosis, teaching, and learning in the 
     classroom in ways that best enable low-achieving children 
     served under this title to meet State academic standards and 
     do well in the local curriculum; and
       ``(C) determine what revisions are needed to projects under 
     this title so that such children meet the State's student 
     academic achievement standards;
       ``(2) at the local educational agency's discretion, a 
     description of any other indicators that will be used in 
     addition to the academic assessments described in paragraph 
     (1) for the uses described in such paragraph, except that 
     results on any discretionary indicators shall not change 
     which schools would otherwise be subject to improvement of 
     corrective action under section 1118 if the additional 
     measures are not included;
       ``(3) a description of how the local educational agency 
     will provide additional educational assistance to individual 
     students assessed as needing help to achieve the State's 
     challenging academic standards;
       ``(4) a description of the strategy the local educational 
     agency will use to provide professional development for 
     teachers, and, if appropriate, pupil services personnel, 
     administrators, parents and other staff, including local 
     educational agency level staff in accordance with section 
     1119A;
       ``(5) a description of how the local educational agency 
     will coordinate and integrate services provided under this 
     part with other educational services at the local educational 
     agency or individual school level, such as--
       ``(A) Even Start, Head Start, Reading First, Early Reading 
     First, and other preschool programs, including plans for the 
     transition of participants in such programs to local 
     elementary school programs; and
       ``(B) services for children with limited English 
     proficiency or with disabilities, migratory children served 
     under part C, neglected or delinquent youth, Indian children 
     served under part B of title III, homeless children, and 
     immigrant children in order to increase program 
     effectiveness, eliminate duplication, and reduce 
     fragmentation of the instructional program;
       ``(6) an assurance that the local educational agency will 
     participate, if selected, in the State National Assessment of 
     Educational Progress in 4th and 8th grade reading and 
     mathematics carried out under section 411(b)(2) of the 
     Education Statistics Act of 1994 (20 U.S.C. 9010(b)(2)), or 
     in another academic assessment pursuant to the State decision 
     under section 7101(b)(1)(B)(ii);
       ``(7) a description of the poverty criteria that will be 
     used to select school attendance areas under section 1113;
       ``(8) a description of how teachers, in consultation with 
     parents, administrators, and pupil services personnel, in 
     targeted assistance schools under section 1115, will identify 
     the eligible children most in need of services under this 
     part;
       ``(9) a general description of the nature of the programs 
     to be conducted by such agency's schools under sections 1114 
     and 1115 and, where appropriate, educational services outside 
     such schools for children living in local institutions

[[Page 8882]]

     for neglected or delinquent children, for neglected and 
     delinquent children in community day school programs, and for 
     homeless children;
       ``(10) a description of how the local educational agency 
     will ensure that migratory children and formerly migratory 
     children who are eligible to receive services under this part 
     are selected to receive such services on the same basis as 
     other children who are selected to receive services under 
     this part;
       ``(11) if appropriate, a description of how the local 
     educational agency will use funds under this part to support 
     preschool programs for children, particularly children 
     participating in Early Reading First, or in a Head Start or 
     Even Start program, which services may be provided directly 
     by the local educational agency or through a subcontract with 
     the local Head Start agency designated by the Secretary of 
     Health and Human Services under section 641 of the Head Start 
     Act (42 U.S.C. 9836), agencies operating Even Start programs, 
     Early Reading First, or another comparable public early 
     childhood development program;
       ``(12) a description of the actions the local educational 
     agency will take to assist its low-performing schools, 
     including schools identified under section 1116 as in need of 
     improvement;
       ``(13) a description of the actions the local educational 
     agency will take to implement public school choice, 
     consistent with the requirements of section 1116;
       ``(14) a description of how the local educational agency 
     will meet the requirements of section 1119(b)(1); and
       ``(15) a description of the services the local educational 
     agency will provide homeless children, including services 
     provided with funds reserved under section 1113(f)(3)(A).
       ``(c) Assurances.--
       ``(1) In general.--Each local educational agency plan shall 
     provide assurances that the local educational agency will--
       ``(A) inform eligible schools and parents of schoolwide 
     program authority and the ability of such schools to 
     consolidate funds from Federal, State, and local sources;
       ``(B) provide technical assistance and support to 
     schoolwide programs;
       ``(C) work in consultation with schools as the schools 
     develop the schools' plans pursuant to section 1114 and 
     assist schools as the schools implement such plans or 
     undertake activities pursuant to section 1115 so that each 
     school can make adequate yearly progress toward meeting the 
     State student academic achievement standards;
       ``(D) fulfill such agency's school improvement 
     responsibilities under section 1116, including taking 
     corrective actions under paragraphs (6) and (7) of section 
     1116(b);
       ``(E) provide services to eligible children attending 
     private elementary and secondary schools in accordance with 
     section 1120, and timely and meaningful consultation with 
     private school officials regarding such services;
       ``(F) take into account the experience of model programs 
     for the educationally disadvantaged, and the findings of 
     relevant scientifically based research indicating that 
     services may be most effective if focused on students in the 
     earliest grades at schools that receive funds under this 
     part;
       ``(G) in the case of a local educational agency that 
     chooses to use funds under this part to provide early 
     childhood development services to low-income children below 
     the age of compulsory school attendance, ensure that such 
     services comply with the academic achievement standards 
     established under section 641A(a) of the Head Start Act (42 
     U.S.C. 9836a(a));
       ``(H) comply with the requirements of section 1119 
     regarding the qualifications of teachers and 
     paraprofessionals;
       ``(I) inform eligible schools of the local educational 
     agency's authority to obtain waivers on the school's behalf 
     under title VIII of this Act, and if the State is an Ed-Flex 
     Partnership State, to obtain waivers under the Education 
     Flexibility Partnership Act of 1999; and
       ``(J) coordinate and collaborate, to the extent feasible 
     and necessary as determined by the local educational agency, 
     with other agencies providing services to children, youth, 
     and families.
       ``(2) Special rule.--In carrying out subparagraph (G) of 
     paragraph (1), the Secretary--
       ``(A) shall consult with the Secretary of Health and Human 
     Services on the implementation of such subparagraph and shall 
     establish procedures (taking into consideration existing 
     State and local laws, and local teacher contracts) to assist 
     local educational agencies to comply with such subparagraph; 
     and
       ``(B) shall disseminate to local educational agencies the 
     Head Start academic achievement standards as in effect under 
     section 641A(a) of the Head Start Act (42 U.S.C. 9836a(a)), 
     and such agencies affected by such subparagraph shall plan 
     for the implementation of such subparagraph (taking into 
     consideration existing State and local laws, and local 
     teacher contracts), including pursuing the availability of 
     other Federal, State, and local funding sources to assist in 
     compliance with such subparagraph.
       ``(3) Inapplicability.--The provisions of this subsection 
     shall not apply to preschool programs using the Even Start 
     model or to Even Start programs which are expanded through 
     the use of funds under this part.
       ``(d) Plan Development and Duration.--
       ``(1) Consultation.--Each local educational agency plan 
     shall be developed in consultation with teachers, principals, 
     administrators (including administrators of programs 
     described in other parts of this title), and other 
     appropriate school personnel, and with parents of children in 
     schools served under this part.
       ``(2) Duration.--Each such plan shall be submitted for the 
     first year for which this part is in effect following the 
     date of the enactment of the No Child Left Behind Act of 2001 
     and shall remain in effect for the duration of the agency's 
     participation under this part.
       ``(3) Review.--Each local educational agency shall 
     periodically review, and as necessary, revise its plan.
       ``(e) State Approval.--
       ``(1) In general.--Each local educational agency plan shall 
     be filed according to a schedule established by the State 
     educational agency.
       ``(2) Approval.--The State educational agency shall approve 
     a local educational agency's plan only if the State 
     educational agency determines that the local educational 
     agency's plan--
       ``(A) enables schools served under this part to 
     substantially help children served under this part meet the 
     academic standards expected of all children described in 
     section 1111(b)(1); and
       ``(B) meets the requirements of this section.
       ``(f) Program Responsibility.--The local educational agency 
     plan shall reflect the shared responsibility of schools, 
     teachers, and the local educational agency in making 
     decisions regarding activities under sections 1114 and 1115.
       ``(g) Parental Notification and Consent for English 
     Language Instruction.--
       ``(1) Notification.--If a local educational agency uses 
     funds under this part to provide English language instruction 
     to limited English proficient children, the agency shall 
     inform a parent or the parents of a child participating in an 
     English language instruction program for limited English 
     proficient children assisted under this part of--
       ``(A) the reasons for the identification of the child as 
     being in need of English language instruction;
       ``(B) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(C) how the English language instruction program will 
     specifically help the child acquire English and meet age-
     appropriate academic standards for grade promotion and 
     graduation;
       ``(D) what the specific exit requirements are for the 
     program;
       ``(E) the expected rate of transition from the program into 
     a classroom that is not tailored for limited English 
     proficient children; and
       ``(F) the expected rate of graduation from high school for 
     students in the program if funds under this part are used for 
     children in secondary schools.
       ``(2) Consent.--
       ``(A) Agency requirements.--
       ``(i) Informed consent.--For a child who has been 
     identified as limited English proficient prior to the 
     beginning of a school year, each local educational agency 
     that receives funds under this part shall make a reasonable 
     and substantial effort to obtain informed parental consent 
     prior to the placement of a child in an English language 
     instruction program for limited English proficient children 
     funded under this part if the program does not include 
     classes which exclusively or almost exclusively use the 
     English language in instruction.
       ``(ii) Written consent not obtained.--If written consent is 
     not obtained, the local educational agency shall maintain a 
     written record that includes the date and the manner in which 
     such informed consent was sought, including the specific 
     efforts made to obtain such consent.
       ``(iii) Proof of effort.--Notice, in an understandable 
     form, of specific efforts made to obtain written consent and 
     a copy of the written record required in clause (ii) shall be 
     mailed or delivered in writing to a parent, parents, or 
     guardian of a child prior to placing the child in a program 
     described in clause (i) and shall include a final request for 
     parental consent for such services. After such notice has 
     been mailed or delivered in writing, the local educational 
     agency shall provide appropriate educational services.
       ``(iv) Special rule applicable during school year.--For 
     those children who have not been identified as limited 
     English proficient prior to the beginning of the school year, 
     the local educational agency shall make a reasonable and 
     substantial effort to obtain parental consent under this 
     clause. For such children, the agency shall document, in 
     writing, its specific efforts made to obtain such consent 
     prior to placing the child in a program described in clause 
     (i). After such documentation has been made, the local 
     educational agency shall provide appropriate educational 
     services to such child. The proof of documentation shall be 
     mailed or delivered in writing to a parent or parents of the 
     child in a timely manner and shall include information on how 
     to have their child immediately removed from the program upon 
     their request. Nothing in this clause shall be construed as 
     exempting a local educational agency from complying with the 
     notification requirements of subsection (g)(1) and the 
     consent requirements of this paragraph.
       ``(3) Parental rights.--A parent or the parents of a child 
     participating in an English language instruction program for 
     limited English proficient children assisted under this part 
     shall--
       ``(A) select among methods of instruction, if more than one 
     method is offered in the program; and
       ``(B) have the right to have their child immediately 
     removed from the program upon their request.
       ``(4) Receipt of information.--A parent or the parents of a 
     limited English proficient child

[[Page 8883]]

     who is identified for participation in an English language 
     instruction program for limited English proficient children 
     assisted under this part shall receive, in a manner and form 
     understandable to the parent or parents, the information 
     required by this subsection. At a minimum, the parent or 
     parents shall receive--
       ``(A) timely information about English language instruction 
     programs for limited English proficient children assisted 
     under this part;
       ``(B) if a parent or parents of a participating child so 
     desires, notice of opportunities for regular meetings for the 
     purpose of formulating and responding to recommendations from 
     the parent or parents; and
       ``(C) procedural information for removing a child from a 
     program for limited English proficient children.
       ``(5) Basis for admission or exclusion.--Students shall not 
     be admitted to, or excluded from, any federally-assisted 
     education program on the basis of a surname or language-
     minority status.

     ``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

       ``(a) Determination.--
       ``(1) In general.--A local educational agency shall use 
     funds received under this part only in eligible school 
     attendance areas.
       ``(2) Eligible school attendance areas.--For the purposes 
     of this part--
       ``(A) the term `school attendance area' means, in relation 
     to a particular school, the geographical area in which the 
     children who are normally served by that school reside; and
       ``(B) the term `eligible school attendance area' means a 
     school attendance area in which the percentage of children 
     from low-income families is at least as high as the 
     percentage of children from low-income families in the local 
     educational agency as a whole.
       ``(3) Local educational agency discretion.--
       ``(A) In general.--Notwithstanding paragraph (2), a local 
     educational agency may--
       ``(i) designate as eligible any school attendance area or 
     school in which at least 35 percent of the children are from 
     low-income families;
       ``(ii) use funds received under this part in a school that 
     is not in an eligible school attendance area, if the 
     percentage of children from low-income families enrolled in 
     the school is equal to or greater than the percentage of such 
     children in a participating school attendance area of such 
     agency;
       ``(iii) designate and serve a school attendance area or 
     school that is not eligible under subsection (b), but that 
     was eligible and that was served in the preceding fiscal 
     year, but only for 1 additional fiscal year; and
       ``(iv) elect not to serve an eligible school attendance 
     area or eligible school that has a higher percentage of 
     children from low-income families if--

       ``(I) the school meets the comparability requirements of 
     section 1120A(c);
       ``(II) the school is receiving supplemental funds from 
     other State or local sources that are spent according to the 
     requirements of section 1114 or 1115; and
       ``(III) the funds expended from such other sources equal or 
     exceed the amount that would be provided under this part.

       ``(B) Special rule.--Notwithstanding subparagraph (A)(iv), 
     the number of children attending private elementary and 
     secondary schools who are to receive services, and the 
     assistance such children are to receive under this part, 
     shall be determined without regard to whether the public 
     school attendance area in which such children reside is 
     assisted under subparagraph (A).
       ``(b) Ranking Order.--If funds allocated in accordance with 
     subsection (f) are insufficient to serve all eligible school 
     attendance areas, a local educational agency--
       ``(1) shall annually rank from highest to lowest according 
     to the percentage of children from low-income families in 
     each agency's eligible school attendance areas in the 
     following order--
       ``(A) eligible school attendance areas in which the 
     concentration of children from low-income families exceeds 75 
     percent; and
       ``(B) all remaining eligible school attendance areas in 
     which the concentration of children from low-income families 
     is 75 percent or lower either by grade span or for the entire 
     local educational agency;
       ``(2) shall, within each category listed in paragraph (1), 
     serve schools in rank order from highest to lowest according 
     to the ranking assigned under paragraph (1);
       ``(3) notwithstanding paragraph (2), may give priority, 
     within each such category and in rank order from highest to 
     lowest subject to paragraph (4), to eligible school 
     attendance areas that serve children in elementary schools; 
     and
       ``(4) not serve a school described in paragraph (1)(B) 
     before serving a school described in paragraph (1)(A).
       ``(c) Low-Income Measures.--In determining the number of 
     children ages 5 through 17 who are from low-income families, 
     the local educational agency shall apply the measures 
     described in paragraphs (1) and (2) of this subsection:
       ``(1) Allocation to public school attendance areas.--The 
     local educational agency shall use the same measure of 
     poverty, which measure shall be the number of children ages 5 
     through 17 in poverty counted in the most recent census data 
     approved by the Secretary, the number of children eligible 
     for free and reduced priced lunches under the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1751 et seq.), 
     the number of children in families receiving assistance under 
     the State program funded under part A of title IV of the 
     Social Security Act, or the number of children eligible to 
     receive medical assistance under the Medicaid program, or a 
     composite of such indicators, with respect to all school 
     attendance areas in the local educational agency--
       ``(A) to identify eligible school attendance areas;
       ``(B) to determine the ranking of each area; and
       ``(C) to determine allocations under subsection (f).
       ``(2) Allocation for equitable service to private school 
     students.--
       ``(A) Calculation.--A local educational agency shall have 
     the final authority, consistent with section 1120 to 
     calculate the number of private school children, ages 5 
     through 17, who are low-income by--
       ``(i) using the same measure of low-income used to count 
     public school children;
       ``(ii) using the results of a survey that, to the extent 
     possible, protects the identity of families of private school 
     students and allowing such survey results to be extrapolated 
     if complete actual data are not available; or
       ``(iii) applying the low-income percentage of each 
     participating public school attendance area, determined 
     pursuant to this section, to the number of private school 
     children who reside in that attendance area.
       ``(B) Complaint process.--Any dispute regarding low-income 
     data on private school students shall be subject to the 
     complaint process authorized in section 8505.
       ``(d) Exception.--This section (other than subsections 
     (a)(3) and (f)) shall not apply to a local educational agency 
     with a total enrollment of less than 1,500 children.
       ``(e) Waiver for Desegregation Plans.--The Secretary may 
     approve a local educational agency's written request for a 
     waiver of the requirements of subsections (a) and (f), and 
     permit such agency to treat as eligible, and serve, any 
     school that children attend under a desegregation plan 
     ordered by a State or court or approved by the Secretary, or 
     such a plan that the agency continues to implement after it 
     has expired, if--
       ``(1) the number of economically disadvantaged children 
     enrolled in the school is not less than 25 percent of the 
     school's total enrollment; and
       ``(2) the Secretary determines on the basis of a written 
     request from such agency and in accordance with such criteria 
     as the Secretary establishes, that approval of that request 
     would further the purposes of this part.
       ``(f) Allocations.--
       ``(1) In general.--A local educational agency shall 
     allocate funds received under this part to eligible school 
     attendance areas or eligible schools, identified under 
     subsection (b) in rank order on the basis of the total number 
     of children from low-income families in each area or school.
       ``(2) Special rule.--(A) Except as provided in subparagraph 
     (B), the per-pupil amount of funds allocated to each school 
     attendance area or school under paragraph (1) shall be at 
     least 125 percent of the per-pupil amount of funds a local 
     educational agency received for that year under the poverty 
     criteria described by the local educational agency in the 
     plan submitted under section 1112, except that this paragraph 
     shall not apply to a local educational agency that only 
     serves schools in which the percentage of such children is 35 
     percent or greater.
       ``(B) A local educational agency may reduce the amount of 
     funds allocated under subparagraph (A) for a school 
     attendance area or school by the amount of any supplemental 
     State and local funds expended in that school attendance area 
     or school for programs that meet the requirements of section 
     1114 or 1115.
       ``(3) Reservation.--A local educational agency shall 
     reserve such funds as are necessary under this part to 
     provide services comparable to those provided to children in 
     schools funded under this part to serve--
       ``(A) homeless children who do not attend participating 
     schools, including providing educationally related support 
     services to children in shelters and other locations where 
     children may live;
       ``(B) children in local institutions for neglected 
     children; and
       ``(C) if appropriate, children in local institutions for 
     delinquent children and neglected or delinquent children in 
     community day school programs.
       ``(4) School improvement reservation.--In addition to the 
     funding a local educational agency receives under section 
     1003(b), a local educational agency may reserve such funds as 
     are necessary under this part to meet such agency's school 
     improvement responsibilities under section 1116, including 
     taking corrective actions under paragraphs (6) and (7) of 
     section 1116(b).
       ``(5) Financial incentives and rewards reservation.--A 
     local educational agency may reserve such funds as are 
     necessary under this part to provide financial incentives and 
     rewards to teachers who serve in schools eligible under 
     subsection (b)(1)(A) and identified for improvement under 
     section 1116(b)(1) for the purpose of attracting and 
     retaining qualified and effective teachers.

     ``SEC. 1114. SCHOOLWIDE PROGRAMS.

       ``(a) Purpose.--The purpose of a schoolwide program under 
     this section is--
       ``(1) to enable a local educational agency to consolidate 
     funds under this part with other Federal, State, and local 
     funds, to upgrade the entire educational program in a high 
     poverty school; and

[[Page 8884]]

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

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

       ``(iii)(I) address the needs of all children in the school, 
     but particularly the needs of low-achieving children and 
     those at risk of not meeting the State student academic 
     achievement standards who are members of the target 
     population of any program that is included in the schoolwide 
     program; and
       ``(II) address how the school will determine if such needs 
     have been met; and
       ``(iv) are consistent with, and are designed to implement, 
     the State and local improvement plans, if any.
       ``(C) Instruction by fully qualified (as defined in section 
     8101) teachers.
       ``(D) In accordance with section 1119A and subsection 
     (b)(4), high quality and ongoing professional development for 
     teachers and paraprofessionals, and, where appropriate, pupil 
     services personnel, parents, principals, and other staff to 
     enable all children in the school to meet the State's student 
     academic achievement standards.
       ``(E) Strategies to attract high quality teachers to high 
     need schools, such as differential pay systems or performance 
     based pay.
       ``(F) Strategies to increase parental involvement in 
     accordance with section 1118, such as family literary 
     services.
       ``(G) Plans for assisting preschool children in the 
     transition from early childhood programs, such as Head Start, 
     Even Start, Early Reading First, or a State-run preschool 
     program, to local elementary school programs.
       ``(H) Measures to include teachers in the decisions 
     regarding the use of academic assessments described in 
     section 1111(b)(4) in order to provide information on, and to 
     improve, the performance of individual students and the 
     overall instructional program.
       ``(I) Activities to ensure that students who experience 
     difficulty mastering the proficient or advanced levels of 
     academic achievement standards required by section 1111(b) 
     shall be provided with effective, timely additional 
     assistance which shall include measures to ensure that 
     students' difficulties are identified on a timely basis and 
     to provide sufficient information on which to base effective 
     assistance.
       ``(2) Plan.--Any eligible school that desires to operate a 
     schoolwide program shall first develop (or amend a plan for 
     such a program that was in existence on the day before the 
     effective date of the No Child Left Behind Act of 2001), a 
     comprehensive plan for reforming the total instructional 
     program in the school that--
       ``(A) incorporates the components described in paragraph 
     (1);
       ``(B) describes how the school will use resources under 
     this part and from other sources to implement those 
     components; and
       ``(C) includes a list of State and local educational agency 
     programs and other Federal programs under subsection (b)(3) 
     that will be consolidated in the schoolwide program.
       ``(3) Plan development.--The comprehensive plan shall be--
       ``(A) developed during a 1-year period, unless--
       ``(i) the local educational agency determines that less 
     time is needed to develop and implement the schoolwide 
     program; or
       ``(ii) the school operated a schoolwide program on the day 
     preceding the effective date of the No Child Left Behind Act 
     of 2001, in which case such school may continue to operate 
     such program, but shall develop amendments to its existing 
     plan during the first year of assistance after that date to 
     reflect the provisions of this section;
       ``(B) developed with the involvement of parents and other 
     members of the community to be served and individuals who 
     will carry out such plan, including teachers, principals, and 
     administrators (including administrators of programs 
     described in other parts of this title), and, if appropriate, 
     pupil services personnel, technical assistance providers, 
     school staff, and, if the plan relates to a secondary school, 
     students from such school;
       ``(C) in effect for the duration of the school's 
     participation under this part and reviewed and revised, as 
     necessary, by the school;
       ``(D) available to the local educational agency, parents, 
     and the public, and the information contained in such plan 
     shall be provided in a format, and to the extent practicable, 
     in a language that they can understand; and
       ``(E) if appropriate, developed in coordination with 
     programs under Reading First, Early Reading First, Even 
     Start, Carl D. Perkins Vocational and Technical Education Act 
     of 1998, and the Head Start Act.
       ``(d) Accountability.--A schoolwide program under this 
     section shall be subject to the school improvement provisions 
     of section 1116.
       ``(e) Prekindergarten Program.--A school that is eligible 
     for a schoolwide program under this section may use funds 
     made available under this title to establish or enhance 
     prekindergarten programs for 3-, 4-, and 5-year-old children, 
     such as Even Start programs or Early Reading First programs.

     ``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

       ``(a) In General.--In all schools selected to receive funds 
     under section 1113(f) that are ineligible for a schoolwide 
     program under section 1114, or that choose not to operate 
     such a schoolwide program, a local educational agency may use 
     funds received under this part only for programs that provide 
     services to eligible children under subsection (b) identified 
     as having the greatest need for special assistance.
       ``(b) Eligible Children.--
       ``(1) Eligible population.--(A) The eligible population for 
     services under this section is--
       ``(i) children not older than age 21 who are entitled to a 
     free public education through grade 12; and
       ``(ii) children who are not yet at a grade level at which 
     the local educational agency provides a free public 
     education.
       ``(B) From the population described in subparagraph (A), 
     eligible children are children identified by the school as 
     failing, or most at risk of failing, to meet the State's 
     challenging student academic achievement standards on the 
     basis of academic assessments under this part, and, as 
     appropriate, on the basis of multiple, educationally related, 
     objective criteria established by the local educational 
     agency and supplemented by the school, except that children 
     from preschool through grade 2 may be selected solely on the 
     basis of such criteria as teacher judgment, interviews with 
     parents, and other appropriate measures.

[[Page 8885]]

       ``(2) Children included.--(A)(i) Children with 
     disabilities, migrant children, and children with limited 
     English proficiency are eligible for services under this part 
     on the same basis as other children.
       ``(ii) Funds received under this part may not be used to 
     provide services that are otherwise required by law to be 
     made available to such children but may be used to coordinate 
     or supplement such services.
       ``(B) A child who, at any time in the 2 years preceding the 
     year for which the determination is made, participated in a 
     Head Start, Even Start, or Early Reading First program, or in 
     preschool services under this title, is eligible for services 
     under this part.
       ``(C)(i) A child who, at any time in the 2 years preceding 
     the year for which the determination is made, received 
     services under part C is eligible for services under this 
     part.
       ``(ii) A child in a local institution for neglected or 
     delinquent children or attending a community day program for 
     such children is eligible for services under this part.
       ``(D) A child who is homeless and attending any school in 
     the local educational agency is eligible for services under 
     this part.
       ``(c) Components of a Targeted Assistance School Program.--
       ``(1) In general.--To assist targeted assistance schools 
     and local educational agencies to meet their responsibility 
     to provide for all their students served under this title the 
     opportunity to meet the State's challenging student academic 
     achievement standards in subjects as determined by the State, 
     each targeted assistance program under this section shall--
       ``(A) use such program's resources under this part to help 
     participating children meet such State's challenging student 
     academic achievement standards expected for all children;
       ``(B) ensure that planning for students served under this 
     part is incorporated into existing school planning;
       ``(C) use effective methods and instructional strategies 
     that are based upon scientifically based research that 
     strengthens the core academic program of the school and 
     that--
       ``(i) give primary consideration to providing extended 
     learning time such as an extended school year, before- and 
     after-school, and summer programs and opportunities;
       ``(ii) help provide an accelerated, high-quality 
     curriculum, including applied learning; and
       ``(iii) minimize removing children from the regular 
     classroom during regular school hours for instruction 
     provided under this part;
       ``(D) coordinate with and support the regular education 
     program, which may include services to assist preschool 
     children in the transition from early childhood programs such 
     as Head Start, Even Start, Early Reading First or State-run 
     preschool programs to elementary school programs;
       ``(E) provide instruction by fully qualified teachers as 
     defined in section 8101;
       ``(F) in accordance with subsection (e)(3) and section 
     1119A, provide opportunities for professional development 
     with resources provided under this part, and, to the extent 
     practicable, from other sources, for teachers, principals, 
     and administrators and other school staff, including, if 
     appropriate, pupil services personnel, who work with 
     participating children in programs under this section or in 
     the regular education program; and
       ``(G) provide strategies to increase parental involvement 
     in accordance with section 1118, such as family literacy 
     services.
       ``(2) Requirements.--Each school conducting a program under 
     this section shall assist participating children selected in 
     accordance with subsection (b) to meet the State's proficient 
     and advanced levels of achievement by--
       ``(A) the coordination of resources provided under this 
     part with other resources; and
       ``(B) reviewing, on an ongoing basis, the progress of 
     participating children and revising the targeted assistance 
     program, if necessary, to provide additional assistance to 
     enable such children to meet the State's challenging student 
     academic achievement standards, such as an extended school 
     year, before- and after-school, and summer programs and 
     opportunities, training for teachers regarding how to 
     identify students that require additional assistance, and 
     training for teachers regarding how to implement student 
     academic achievement standards in the classroom.
       ``(d) Integration of Professional Development.--To promote 
     the integration of staff supported with funds under this 
     part, public school personnel who are paid with funds 
     received under this part may participate in general 
     professional development and school planning activities.
       ``(e) Special Rules.--
       ``(1) Simultaneous service.--Nothing in this section shall 
     be construed to prohibit a school from serving students 
     served under this section simultaneously with students with 
     similar educational needs, in the same educational settings 
     where appropriate.
       ``(2) Comprehensive services.--If medical, nutrition, and 
     other social services are not otherwise available to eligible 
     children in a targeted assistance school and such school, if 
     appropriate, has engaged in a comprehensive needs assessment 
     and established a collaborative partnership with local 
     service providers, and if funds are not reasonably available 
     from other public or private sources to provide such 
     services, then a portion of the funds provided under this 
     part may be used as a last resort to provide such services, 
     including--
       ``(A) the provision of basic medical equipment, such as 
     eyeglasses and hearing aids; and
       ``(B) professional development necessary to assist 
     teachers, pupil services personnel, other staff, and parents 
     in identifying and meeting the comprehensive needs of 
     eligible children.
       ``(3) Professional development.--Each school receiving 
     funds under this part for any fiscal year shall devote 
     sufficient resources to carry out effectively the 
     professional development activities described in subparagraph 
     (F) of subsection (c)(1) in accordance with section 1119A for 
     such fiscal year, except that a school may enter into a 
     consortium with another school to carry out such 
     activities.''.

     SEC. 105. SCHOOL CHOICE.

       Section 1115A is amended to read as follows:

     ``SEC. 1115A. SCHOOL CHOICE.

       ``(a) Choice Programs.--A local educational agency may use 
     funds under this part, in combination with State, local, and 
     private funds, to develop and implement public school choice 
     programs, for children eligible for assistance under this 
     part, which permit parents to select the public school that 
     their child will attend.
       ``(b) Choice Plan.--A local educational agency that chooses 
     to implement a public school choice program shall first 
     develop a plan that includes a description of how the local 
     educational agency will use resources under this part and 
     from other resources to implement the plan, and assurances 
     that--
       ``(1) all eligible students across grade levels served 
     under this part will have equal access to the program;
       ``(2) the plan will be developed with the involvement of 
     parents and others in the community to be served and 
     individuals who will carry out the plan, including 
     administrators, teachers, principals, and other staff;
       ``(3) parents of eligible students in the local educational 
     agency will be given prompt notice of the existence of the 
     public school choice program and its availability to them, 
     and a clear explanation of how the program will operate;
       ``(4) the program will include charter schools and any 
     other public school and shall not include a school that is or 
     has been identified as a school in school improvement or is 
     or has been in corrective action for the past 2 consecutive 
     years; and
       ``(5) such local educational agency will comply with the 
     other requirements of this part.
       ``(c) Transportation.--Transportation services or the costs 
     of transportation may be provided by the local educational 
     agency, except that such agency may not use more than a total 
     of 15 percent of its allocation under this part for such 
     purposes.''.

     SEC. 106. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL AGENCY 
                   AND SCHOOL IMPROVEMENT.

       The section heading and subsections (a) through (d) of 
     section 1116 are amended to read as follows:

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

       ``(a) Local Review.--Each local educational agency 
     receiving funds under this part shall--
       ``(1) use the State academic assessments described in the 
     State plan to review annually the progress of each school 
     served under this part to determine whether the school is 
     making adequate yearly progress as defined in section 
     1111(b)(2)(B);
       ``(2) publicize and disseminate to teachers and other 
     staff, parents, students, and the community, the results of 
     the annual review under paragraph (2);
       ``(3) review the effectiveness of the actions and 
     activities the schools are carrying out under this part with 
     respect to parental involvement assisted under this Act.
       ``(b) School Improvement.--
       ``(1) In general.--
       ``(A) Identification.--A local educational agency shall 
     identify for school improvement any elementary or secondary 
     school served under this part that--
       ``(i) fails, for any year, to make adequate yearly progress 
     as defined in the State's plan under section 1111(b)(2); or
       ``(ii) was in school improvement status under this section 
     immediately before the effective date of the No Child Left 
     Behind Act of 2001.
       ``(B) Deadline.--The identification described in 
     subparagraph (A) shall take place not later than the first 
     day of the school year following such failure to make 
     adequate yearly progress.
       ``(C) Application.--This paragraph does not apply to a 
     school if almost every student in the school is meeting the 
     State's advanced level of performance.
       ``(D) Review.--To determine if an elementary school or a 
     secondary school that is conducting a targeted assistance 
     program under section 1115 should be identified for school 
     improvement under this subsection, a local educational agency 
     may choose to review the progress of only the students in the 
     school who are served, or are eligible for services, under 
     this part.
       ``(E) Public school choice.--In the case of a school 
     identified for school improvement under subparagraph (A), the 
     local educational agency shall, not later than the first day 
     of the school year following identification, 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 subparagraph (A), 
     unless such an option is prohibited by State law.
       ``(F) Transfer.--Students who use the option to transfer 
     under subparagraph (E) shall be enrolled in classes and other 
     activities in the public school to which they transfer in the 
     same

[[Page 8886]]

     manner as all other children at the public school.
       ``(2) Opportunity to review and present evidence; time 
     limit.--
       ``(A) Before identifying an elementary school or a 
     secondary school for school improvement under paragraph (1), 
     for corrective action under paragraph (6), or for 
     restructuring under paragraph (7), the local educational 
     agency shall provide the school with an opportunity to review 
     the school-level data, including academic assessment data, on 
     which the proposed identification is based.
       ``(B) Evidence.--If the principal of a school proposed for 
     identification under paragraph (1), (6), or (7) believes, or 
     a majority of the parents of the students enrolled in such 
     school believe, that the proposed identification is in error 
     for statistical or other substantive reasons, the principal 
     may provide supporting evidence to the local educational 
     agency, which shall consider that evidence before making a 
     final determination.
       ``(C) Final determination.--Not later than 30 days after a 
     local educational agency provides the school with the 
     opportunity to review such school level data, the local 
     educational agency shall make public a final determination on 
     the status of the school.
       ``(3) School plan.--
       ``(A) Revised plan.--After the resolution of a review under 
     paragraph (2), each school identified under paragraph (1) for 
     school improvement shall, not later than 3 months after being 
     so identified, develop or revise a school plan, in 
     consultation with parents, school staff, the local 
     educational agency serving the school, the local school 
     board, and other outside experts, for approval by such local 
     educational agency. The school plan shall cover a 2-year 
     period and--
       ``(i) incorporate scientifically based research strategies 
     that strengthen the core academic subjects in the school and 
     address the specific academic issues that caused the school 
     to be identified for school improvement;
       ``(ii) adopt policies and practices concerning the school's 
     core academic subjects that have the greatest likelihood of 
     ensuring that all groups of students specified in section 
     1111(b)(2)(C)(iii)(I) and (II) and enrolled in the school 
     will meet the State's proficient level of achievement on the 
     State academic assessment described in section 1111(b)(4) not 
     later than 10 years after the date of enactment of the No 
     Child Left Behind Act of 2001;
       ``(iii) provide an assurance that the school shall reserve 
     not less than 10 percent of the funds made available to the 
     school under this part for each fiscal year that the school 
     is in school improvement status, for the purpose of providing 
     to the school's teachers and principal high-quality 
     professional development that--

       ``(I) directly addresses the academic performance problem 
     that caused the school to be identified for school 
     improvement;
       ``(II) meets the requirements for professional development 
     activities under section 1119A; and
       ``(III) is provided in a manner that affords greater 
     opportunity for participating in such professional 
     development;

       ``(iv) specify how the funds described in clause (iii) will 
     be used to remove the school from school improvement status;
       ``(v) establish specific annual, measurable goals for 
     continuous and significant progress by each group of students 
     specified in section 1111(b)(2)(C)(iii)(I) and (II) and 
     enrolled in the school that will ensure that all such groups 
     of students shall meet the State's proficient level of 
     achievement on the State academic assessment described in 
     section 1111(b)(4) not later than 10 years after the date of 
     enactment of the No Child Left Behind Act of 2001;
       ``(vi) identify how the school will provide written 
     notification about the identification to parents of each 
     student enrolled in such school, in a format and, to the 
     extent practicable, in a language the parents can understand;
       ``(vii) specify the responsibilities of the school, the 
     local educational agency, and the State educational agency 
     serving the school under the plan, including the technical 
     assistance to be provided by the local educational agency 
     under paragraph (4); and
       ``(viii) incorporate, as appropriate, extended learning 
     time for students, such as before school, after school, 
     during the summer and extension of the school year.
       ``(B) Conditional approval.--The local educational agency 
     may condition approval of a school plan on--
       ``(i) inclusion of 1 or more of the corrective actions 
     specified in paragraph (6)(D)(ii); or
       ``(ii) feedback on the school improvement plan from parents 
     and community leaders.
       ``(C) Plan implementation.--Except as provided in 
     subparagraph (D), a school shall implement the school plan 
     (including a revised plan) expeditiously, but not later than 
     the beginning of the school year following the school year in 
     which the failure to make adequate yearly progress took 
     place.
       ``(D) Notwithstanding subparagraph (C), in a case in which 
     a plan is not approved prior to the beginning of a school 
     year, such plan shall be implemented immediately upon 
     approval.
       ``(E) Local educational agency approval.--The local 
     educational agency shall--
       ``(i) establish a peer-review process to assist with review 
     of a school plan prepared by a school served by the local 
     educational agency; and
       ``(ii) promptly review the school plan, work with the 
     school as necessary, and approve the school plan if it meets 
     the requirements of this paragraph.
       ``(4) Technical assistance.--
       ``(A) In general.--For each school identified for school 
     improvement under paragraph (1), the local educational agency 
     serving the school shall provide technical assistance as the 
     school develops and implements the school plan throughout the 
     duration of such plan.
       ``(B) Specific assistance.--Such technical assistance--
       ``(i) shall include assistance in analyzing data from the 
     academic assessments required under section 1111(b)(4), and 
     other samples of student work, to identify and address 
     instructional problems and solutions;
       ``(ii) shall include assistance in identifying and 
     implementing professional development, instructional 
     strategies, and methods of instruction that are based upon 
     scientifically based research and that have proven effective 
     in addressing the specific instructional issues that caused 
     the school to be identified for school improvement;
       ``(iii) shall include assistance in analyzing and revising 
     the school's budget so that the school resources are more 
     effectively allocated for the activities most likely to 
     increase student achievement and to remove the school from 
     school improvement status; and
       ``(iv) may be provided--

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

       ``(C) Scientifically based research.--Technical assistance 
     provided under this section by a local educational agency or 
     an entity approved by that agency shall be based on 
     scientifically based research.
       ``(5) Notification to parents.--A local educational agency 
     shall promptly provide parents (in a format and, to the 
     extent practicable, in a language they can understand) of 
     each student in an elementary school or a secondary school 
     identified for school improvement--
       ``(A) an explanation of what the school improvement 
     identification means, and how the school identified for 
     school improvement compares in terms of academic achievement 
     to other elementary schools or secondary schools served by 
     the local educational agency and the State educational agency 
     involved;
       ``(B) the reasons for the identification;
       ``(C) an explanation of what the school identified for 
     school improvement is doing to address the problem of low 
     achievement;
       ``(D) an explanation of what the local educational agency 
     or State educational agency is doing to help the school 
     address the achievement problem;
       ``(E) an explanation of how parents described in this 
     paragraph can become involved in addressing the academic 
     issues that caused the school to be identified for school 
     improvement; and
       ``(F) an explanation regarding the option of their child to 
     transfer to another public school, including a public charter 
     school.
       ``(6) Corrective action.--
       ``(A) In general.--In this subsection, the term `corrective 
     action' means action, consistent with State law, that--
       ``(i) substantially and directly responds to--

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

       ``(ii) is designed to increase substantially the likelihood 
     that students enrolled in the school identified for 
     corrective action will perform at the State's proficient and 
     advanced levels of achievement on the State academic 
     assessment described in section 1111(b)(4).
       ``(B) System.--In order to help students served under this 
     part meet challenging State academic standards, each local 
     educational agency shall implement a system of corrective 
     action in accordance with subparagraphs (C) through (F) and 
     paragraphs (7) through (9).
       ``(C) Role of local educational agency.--The local 
     educational agency--
       ``(i) after providing public school choice under paragraph 
     (1)(E) and technical assistance under paragraph (4), shall 
     identify for corrective action and take corrective action 
     with respect to any school served by the local educational 
     agency under this part that--

       ``(I) fails to make adequate yearly progress, as defined by 
     the State under section 1111(b)(2), at the end of the first 
     full school year following identification under paragraph 
     (1); or
       ``(II) was in school-improvement status for 2 years or in 
     corrective-action status under this subsection immediately 
     before the effective date of the No Child Left Behind Act of 
     2001; and

       ``(ii) shall continue to provide technical assistance 
     consistent with paragraph (4) while instituting any 
     corrective action under clause (i); and
       ``(D) Requirements.--In the case of a school described in 
     subparagraph (C)(i), the local educational agency shall 
     both--
       ``(i) continue to provide all students enrolled in the 
     school with the option to transfer to another public school 
     within the local educational agency, including a public 
     charter school, that has not been identified for school 
     improvement under paragraph (1), unless such an option is 
     prohibited by State law; and
       ``(ii) take at least 1 of the following corrective actions:

       ``(I) Replace the school staff which are relevant to the 
     failure to make adequate yearly progress.

[[Page 8887]]

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

       ``(E) Delay.--A local educational agency may delay, for a 
     period not to exceed 1 year, implementation of corrective 
     action only if the school's failure to make adequate yearly 
     progress was justified due to exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     local educational agency or school.
       ``(F) Publication and dissemination.--The local educational 
     agency shall publish and disseminate information regarding 
     any corrective action the local educational agency takes 
     under this paragraph at a school--
       ``(i) to the public and to the parents of each student 
     enrolled in the school subject to corrective action;
       ``(ii) in a format and, to the extent practicable, in a 
     language that the parents can understand; and
       ``(iii) through such means as the Internet, the media, and 
     public agencies.
       ``(7) Restructuring.--
       ``(A) Failure to make adequate yearly progress.--If--
       ``(i) a school is subject to corrective action under 
     paragraph (6) for one full school year, and at the end of 
     such year continues to fail to make adequate yearly progress 
     and students in the school who are from economically 
     disadvantaged families are not making statistically 
     significant progress in the subjects included in the State's 
     definition of adequate yearly progress; or
       ``(ii) for 2 additional years a school subject to 
     corrective action under paragraph (6) fails to make adequate 
     yearly progress, the local educational agency shall--

       ``(I) provide all students enrolled in the school with the 
     option to transfer to another public school within the local 
     educational agency, including a public charter school, that 
     has not been identified for school improvement under 
     paragraph (1), unless prohibited by State law;
       ``(II) make supplemental instructional services available, 
     consistent with subsection (d)(1); and
       ``(III) prepare a plan and make necessary arrangements to 
     carry out subparagraph (B).

       ``(B) Alternative governance.--Not later than the beginning 
     of the school year following the year in which the local 
     educational agency implements subparagraph (A), the local 
     educational agency shall implement 1 of the following 
     alternative governance arrangements for the school consistent 
     with State law:
       ``(i) Reopening the school as a public charter school.
       ``(ii) Replacing the principal and all or most of the 
     school staff that are relevant to the failure to make 
     adequate yearly progress.
       ``(iii) Entering into a contract with an entity, such as a 
     private management company, to operate the public school.
       ``(iv) Turning the operation of the school over to the 
     State, if permitted under State law and agreed to by the 
     State.
       ``(C) Available results.--The State educational agency 
     shall ensure that, for any school year in which a school is 
     subject to school improvement under this subsection, the 
     results of State academic assessments for that school are 
     available to the local educational agency by the end of the 
     school year in which the academic assessments are 
     administered.
       ``(D) Prompt notice.--The local educational agency shall 
     provide prompt notice to teachers and parents whenever 
     subparagraph (A) or (B) applies, shall provide them adequate 
     opportunity to comment before taking any action under those 
     subparagraphs and to participate in developing any plan under 
     subparagraph (A)(iii), and shall provide parents an 
     explanation of the options under subparagraph (A)(i) and 
     (ii).
       ``(8) Transportation.--In any case described in paragraph 
     (6)(D)(i) and (7)(A)(ii)(I) the local educational agency--
       ``(A) shall provide, or shall pay for the provision of, 
     transportation for the student to the public school the child 
     attends; and
       ``(B) may use not more than a total of 15 percent of its 
     allocation under this part for that purpose.
       ``(9) Cooperative agreement.--In any case described in 
     paragraph (6)(D)(i) or (7)(A)(ii)(I), if all public schools 
     in the local educational agency to which a child may transfer 
     to, are identified for school improvement, the agency shall, 
     to the extent practicable, establish a cooperative agreement 
     with other local educational agencies in the area for a 
     transfer.
       ``(10) Duration.--If any school identified for corrective 
     action or restructuring--
       ``(A) makes adequate yearly progress for 2 consecutive 
     years, the local educational agency need no longer subject it 
     to corrective action or restructuring nor identify it as in 
     need of improvement; or
       ``(B) fails to make adequate yearly progress, but children 
     from low-income families in the school make statistically 
     significant educational progress for 1 year, the local 
     educational agency shall place or continue as appropriate the 
     school in corrective action under paragraph (6).
       ``(11) State responsibilities.--The State shall--
       ``(A) make technical assistance under section 1117 
     available to all schools identified for school improvement 
     and restructuring under this subsection;
       ``(B) if it determines that a local educational agency has 
     failed to carry out its responsibilities under this 
     subsection, take such corrective actions as the State finds 
     appropriate and in compliance with State law; and
       ``(C) ensure that academic assessment results under this 
     part are provided to schools within the same school year in 
     which the assessment was given.
       ``(c) State Review and Local Educational Agency 
     Improvement.--
       ``(1) In general.--A State shall--
       ``(A) annually review the progress of each local 
     educational agency receiving funds under this part to 
     determine whether schools receiving assistance under this 
     part are making adequate yearly progress as defined in 
     section 1111(b)(2) toward meeting the State's student 
     academic achievement standards; and
       ``(B) publicize and disseminate to local educational 
     agencies, teachers and other staff, parents, students, and 
     the community the results of the State review consistent with 
     section 1111, including statistically sound disaggregated 
     results, as required by section 1111(b)(2).
       ``(2) Identification of local educational agency for 
     improvement.--A State shall identify for improvement any 
     local educational agency that--
       ``(A) for 2 consecutive years failed to make adequate 
     yearly progress as defined in the State's plan under section 
     1111(b)(2); or
       ``(B) was in improvement status under this section as this 
     section was in effect on the day preceding the date of the 
     enactment of the No Child Left Behind Act of 2001.
       ``(3) Transition.--The 2-year period described in paragraph 
     (2)(A) shall include any continuous period of time 
     immediately preceding the date of the enactment of the No 
     Child Left Behind Act of 2001, during which a local 
     educational agency did not make adequate yearly progress as 
     defined in the State's plan, as such plan was in effect on 
     the day preceding the date of such enactment.
       ``(4) Targeted assistance schools.--For purposes of 
     targeted assistance schools in a local educational agency, a 
     State educational agency may choose to review the progress of 
     only the students in such schools who are served or are 
     eligible for services under this part.
       ``(5) Opportunity to review and present evidence.--
       ``(A) Review.--Before identifying a local educational 
     agency for improvement under paragraph (2), a State 
     educational agency shall provide the local educational agency 
     with an opportunity to review the local educational agency 
     data, including academic assessment data, on which that 
     proposed identification is based.
       ``(B) Supporting evidence.--If the local educational agency 
     believes that the proposed identification is in error for 
     statistical or other substantive reasons, it may provide 
     supporting evidence to the State educational agency, which 
     such agency shall consider before making a final 
     determination not later than 30 days after the State 
     educational agency provides the local educational agency with 
     the opportunity to review such data under subparagraph (A).
       ``(6) Notification to parents.--The State educational 
     agency shall promptly notify parents in a format, and to the 
     extent practicable in a language they can understand, of each 
     student enrolled in a school in a local educational agency 
     identified for improvement, of the results of the review 
     under paragraph (1) and, if the agency is identified as in 
     need of improvement, the reasons for that identification and 
     how parents can participate in upgrading the quality of the 
     local educational agency.
       ``(7) Local educational agency revisions.--
       ``(A) Plan.--Each local educational agency identified under 
     paragraph (2) shall, not later than 3 months after being so 
     identified, develop or revise a local educational agency 
     plan, in consultation with parents, school staff, and others. 
     Such plan shall--
       ``(i) incorporate scientifically based research strategies 
     that strengthen the core academic program in the local 
     educational agency;
       ``(ii) identify specific goals and objectives the local 
     educational agency will undertake to make adequate yearly 
     progress and which--

       ``(I) have the greatest likelihood of improving the 
     performance of participating children in meeting the State's 
     student academic achievement standards;
       ``(II) address the professional development needs of staff; 
     and
       ``(III) include specific measurable achievement goals and 
     targets for each of the groups of students identified in the 
     disaggregated data pursuant to section 1111(b)(2)(C)(iii)(I) 
     and (II);

       ``(iii) incorporate, as appropriate, extended learning time 
     for students such as before school, after school, during the 
     summer, and extension of the school year.
       ``(iv) identify how the local educational agency will 
     provide written notification to parents in a format, and to 
     the extent practicable in a language, that they can 
     understand, pursuant to paragraph (6); and
       ``(v) specify the responsibilities of the State educational 
     agency and the local educational agency under the plan.

[[Page 8888]]

       ``(B) Implementation.--The local educational agency shall 
     implement its plan or revised plan expeditiously, but not 
     later than the beginning of the school year after which the 
     school has been identified for improvement.
       ``(8) State responsibility.--
       ``(A) In general.--For each local educational agency 
     identified under paragraph (2), the State shall provide 
     technical or other assistance, if requested, as authorized 
     under section 1117, to better enable the local educational 
     agency--
       ``(i) to develop and implement its revised plan as approved 
     by the State educational agency consistent with the 
     requirements of this section; and
       ``(ii) to work with schools needing improvement.
       ``(B) Technical assistance.--Technical assistance provided 
     under this section by the State educational agency or an 
     entity authorized by such agency shall be based upon 
     scientifically based research.
       ``(9) Corrective action.--In order to help students served 
     under this part meet challenging State academic standards, 
     each State shall implement a system of corrective action in 
     accordance with the following:
       ``(A) In general.--After providing technical assistance 
     under paragraph (8) and subject to subparagraph (D), the 
     State--
       ``(i) may take corrective action at any time with respect 
     to a local educational agency that has been identified under 
     paragraph (2);
       ``(ii) shall take corrective action with respect to any 
     local educational agency that fails to make adequate yearly 
     progress, as defined by the State, after the end of the 
     second year following its identification under paragraph (2); 
     and
       ``(iii) shall continue to provide technical assistance 
     while instituting any corrective action under clause (i) or 
     (ii).
       ``(B) Definition.--As used in this paragraph, the term 
     `corrective action' means action, consistent with State law, 
     that--
       ``(i) substantially and directly responds to the consistent 
     academic failure that caused the State to take such action 
     and to any underlying staffing, curricular, or other problems 
     in the school; and
       ``(ii) is designed to meet the goal of having all students 
     served under this part perform at the proficient and advanced 
     performance levels.
       ``(C) Certain local educational agencies.--In the case of a 
     local educational agency described in this paragraph, the 
     State educational agency shall take not less than 1 of the 
     following corrective actions:
       ``(i) Withhold funds from the local educational agency.
       ``(ii) Replace the school district personnel who are 
     relevant to the failure to make adequate year progress.
       ``(iii) Remove particular schools from the jurisdiction of 
     the local educational agency and establish alternative 
     arrangements for public governance and supervision of such 
     schools.
       ``(iv) Appoint, through the State educational agency, a 
     receiver or trustee to administer the affairs of the local 
     educational agency in place of the superintendent and school 
     board.
       ``(v) Abolish or restructure the local educational agency.
       ``(vi) Authorize students to transfer from a school 
     operated by a local educational agency to a higher performing 
     public school operated by another local educational agency, 
     or to a public charter school and provide such students 
     transportation (or the costs of transportation to such 
     schools), in conjunction with not less than 1 additional 
     action described under this paragraph.
       ``(D) Hearing.--Prior to implementing any corrective 
     action, the State educational agency shall provide due 
     process and a hearing to the affected local educational 
     agency, if State law provides for such process and hearing.
       ``(E) Publication.--The State educational agency shall 
     publish, and disseminate to parents and the public any 
     corrective action it takes under this paragraph through such 
     means as the Internet, the media, and public agencies.
       ``(F) Delay.--A local educational agency may delay, for a 
     period not to exceed 1 year, implementation of corrective 
     action if the failure to make adequate yearly progress was 
     justified due to exceptional or uncontrollable circumstances 
     such as a natural disaster or a precipitous and unforeseen 
     decline in the financial resources of the local educational 
     agency or school.
       ``(10) Special rule.--A local educational agency, that, for 
     at least 2 of the 3 years following identification under 
     paragraph (2), makes adequate yearly progress shall no longer 
     be identified for improvement.
       ``(d) Parental Options.--
       ``(1) In any case described in subsection 
     (b)(7)(A)(ii)(II), the local educational agency shall permit 
     the parents of each eligible child to obtain supplemental 
     educational services for such child from a provider, as 
     approved by the State educational agency in accordance with 
     reasonable criteria that it shall adopt. Such criteria shall 
     require a provider to demonstrate a record of effectiveness, 
     or the potential of effectiveness, in providing supplemental 
     instructional services to children, consistent with the 
     instructional program of the local educational agency and the 
     academic standards described under section 1111.
       ``(2) Selection.--In obtaining services under this 
     paragraph, a parent shall select a provider that meets the 
     criteria described under paragraph (1). The local educational 
     agency shall provide assistance, upon request, to parents in 
     the selection of a provider to provide supplemental 
     instructional services.
       ``(3) Contract.--In the case of the selection of a provider 
     under paragraph (2) by a parent, the local educational agency 
     shall enter into a contract with such provider. Such contract 
     shall--
       ``(A) require the local educational agency to develop, with 
     parents (and the provider they have chosen), a statement of 
     specific performance goals for the student, how the student's 
     progress will be measured, and a timetable for improving 
     achievement;
       ``(B) provide for the termination of such contract with a 
     provider that is unable to meet such goals and timetables; 
     and
       ``(C) contain provisions with respect to the making of 
     payments to the provider by the local educational agency.
       ``(4) Additional local educational agency 
     responsibilities.--Each local educational agency subject to 
     this paragraph shall provide annual notice to parents (if 
     feasible, in the parents' language) of the availability of 
     services under this paragraph and the eligible providers of 
     those services.
       ``(5) State educational agency responsibilities.--Each 
     State educational agency shall--
       ``(A) consult with local educational agencies and promote 
     maximum participation by providers to ensure, to the extent 
     practicable, that parents have as many choices of those 
     providers as possible;
       ``(B) develop criteria consistent with paragraph (6) and 
     apply such criteria to potential providers to determine 
     which, based on the quality and effectiveness of their 
     services, are eligible to participate;
       ``(C) maintain an updated list of approved providers across 
     the State, from which parents may select;
       ``(D) develop and implement standards and techniques for 
     monitoring the quality and effectiveness of the services 
     offered by providers, and withdraw approval from those that 
     fail to meet those standards for two consecutive years;
       ``(E) provide annual notice to potential providers of 
     supplemental services of the opportunity to provide services 
     under this paragraph and of the applicable procedures for 
     obtaining approval from the State educational agency to be a 
     provider of those services.
       ``(6) Criteria for providers.--In order for a provider to 
     be included on the State list under paragraph (5)(c), a 
     provider shall agree to the following:
       ``(A) Provide parents of children receiving supplemental 
     instructional services under this paragraph and the 
     appropriate local educational agency with information on the 
     progress of their children in increasing achievement, in a 
     format and, to the extent practicable, a language such 
     parents can understand.
       ``(B) Ensure that instruction and content used by the 
     provider is consistent with the instruction and content used 
     by the local educational agency and State.
       ``(C) Require a provider to meet all applicable Federal, 
     State, and local health, safety and civil rights laws.
       ``(D) Ensure that all instruction and content under this 
     paragraph shall be secular, neutral, and nonideological.
       ``(7) Costs.--
       ``(A) The costs of administration of this paragraph and the 
     costs of providing such supplemental instructional services 
     shall be limited to the total of 40 percent of the per child 
     allocation under subpart 2 of each school identified under 
     subsection (b)(7)(A)(ii)(II);
       ``(B) Additional funds.--If the allocation under 
     subparagraph (A) is insufficient to provide services for all 
     eligible students that have selected a provider, a local 
     educational agency may use funds under subpart 1 of part A of 
     title IV to pay for additional costs;
       ``(C) Transportation costs.--A local educational agency may 
     use up to 15 percent of its allocation under subpart 2 for 
     transportation costs.
       ``(8) Funds provided by state educational agency.--Each 
     State educational agency may use funds that it reserves under 
     this part, and subpart 1 of part A of title IV to provide 
     local educational agencies that do not have sufficient funds 
     to provide services under this paragraph for all eligible 
     students requesting such services.
       ``(9) Duration.--The local educational agency shall 
     continue to provide supplemental instructional services to 
     enrolled children receiving such services under this 
     paragraph until the child completes the grade corresponding 
     to the highest grade offered at the public school which was 
     identified for restructuring under subsection (b)(7), or 
     until such school, so long as the child attends such school, 
     is not identified under subsection (b)(1), (b)(6), or (b)(7), 
     whichever comes earlier.
       ``(10) Definitions.--As used in this subsection, the term--
       ``(A) `eligible child' means a child from a low-income 
     family, as determined by the local educational agency for 
     purposes of allocating funds to schools under section 
     1113(c)(1);
       ``(B) `supplemental instructional services' means tutoring 
     and other supplemental academic enrichment services that are 
     in addition to instruction provided during the school day and 
     are specifically designed to increase the academic 
     achievement of eligible children on the academic assessments 
     required under section 1111; and
       ``(C) `provider' means a non-profit or a for-profit entity 
     which has a demonstrated record of effectiveness or the 
     potential of effectiveness--
       ``(i) in providing supplemental instructional services that 
     are consistent with the instructional program of the local 
     educational agency

[[Page 8889]]

     and the academic standards described under section 1111; and
       ``(ii) in sound fiscal management;
       ``(D) `per child allocation' means an amount that is equal 
     to at least--
       ``(i) the amount of the school's allocation under subpart 
     2; divided by
       ``(ii) the number of children from low-income families 
     enrolled in the school.
       ``(11) Prohibition.--Nothing contained in this paragraph 
     shall permit the making of any payment under this paragraph 
     for religious worship or instruction.''.

     SEC. 107. STATE ASSISTANCE FOR SCHOOL SUPPORT AND 
                   IMPROVEMENT.

       Section 1117 is amended to read as follows:

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

       ``(a) System for Support.--Each State shall establish a 
     statewide system of intensive and sustained support and 
     improvement for local educational agencies and schools 
     receiving funds under this part, in order to increase the 
     opportunity for all students in those agencies and schools to 
     meet the State's academic content standards and student 
     academic achievement standards.
       ``(b) Priorities.--In carrying out this section, a State 
     shall--
       ``(1) first, provide support and assistance to local 
     educational agencies subject to corrective action under 
     section 1116 and assist schools, in accordance with section 
     1116(b)(10), for which a local educational agency has failed 
     to carry out its responsibilities under paragraphs (6) and 
     (7) of section 1116(b);
       ``(2) second, provide support and assistance to other local 
     educational agencies identified as in need of improvement 
     under section 1116(b); and
       ``(3) third, provide support and assistance to other local 
     educational agencies and schools participating under this 
     part that need that support and assistance in order to 
     achieve the purpose of this part.
       ``(c) Approaches.--In order to achieve the purpose 
     described in subsection (a), each such system shall provide 
     technical assistance and support through such approaches as--
       ``(1) school support teams, composed of individuals who are 
     knowledgeable about scientifically based research and 
     practice on teaching and learning, particularly about 
     strategies for improving educational results for low-
     achieving children; and
       ``(2) the designation and use of ``Distinguished 
     Educators'', chosen from schools served under this part that 
     have been especially successful in improving academic 
     achievement.
       ``(d) Funds.--Each State--
       ``(1) shall use funds reserved under section 1003(a); and
       ``(2) may use State administrative funds authorized under 
     section 1002(i) for such purpose to establish a Statewide 
     system of support.
       ``(e) Alternatives.--The State may devise additional 
     approaches to providing the assistance described in 
     paragraphs (1) and (2) of subsection (c), such as providing 
     assistance through institutions of higher education and 
     educational service agencies or other local consortia, and 
     private providers of scientifically based technical 
     assistance and the State may seek approval from the Secretary 
     to use funds made available under section 1002(j) for such 
     approaches as part of the State plan.''.

     SEC. 108. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

       Sections 1118 through 1127 are amended to read as follows:

     ``SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

       ``(a) Establishment of Academic Achievement Awards 
     Program.--
       ``(1) In general.--Each State receiving a grant under this 
     part may establish a program for making academic achievement 
     awards to recognize and financially reward schools served 
     under this part that have--
       ``(A) significantly closed the achievement gap between the 
     groups of students defined in section 1111(b)(2); or
       ``(B) exceeded their adequate yearly progress goals, 
     consistent with section 1111(b)(2), for 2 or more consecutive 
     years.
       ``(2) Awards to teachers.--A State program under paragraph 
     (1) may also recognize and provide financial awards to 
     teachers teaching in a school described in such paragraph 
     whose students consistently make significant gains in 
     academic achievement in the areas in which the teacher 
     provides instruction.
       ``(b) Funding.--
       ``(1) Reservation of funds by state.--For the purpose of 
     carrying out this section, each State receiving a grant under 
     this part may reserve, from the amount (if any) by which the 
     funds received by the State under this part for a fiscal year 
     exceed the amount received by the State under this part for 
     the preceding fiscal year, not more than 30 percent of such 
     excess amount.
       ``(2) Use within 3 years.--Notwithstanding any other 
     provision of law, the amount reserved under paragraph (1) by 
     a State for each fiscal year shall remain available to the 
     State until expended for a period not exceeding 3 years.
       ``(3) Special allocation rule for schools in high-poverty 
     areas.--
       ``(A) In general.--Each State receiving a grant under this 
     part shall distribute at least 75 percent of the amount 
     reserved under paragraph (1) for each fiscal year to schools 
     described in subparagraph (B), or to teachers teaching in 
     such schools.
       ``(B) School described.--A school described in subparagraph 
     (A) is a school whose student population is in the highest 
     quartile of schools statewide in terms of the percentage of 
     children from low income families.

     ``SEC. 1118. PARENTAL INVOLVEMENT.

       ``(a) Local Educational Agency Policy.--
       ``(1) In general.--A local educational agency may receive 
     funds under this part only if such agency implements 
     programs, activities, and procedures for the involvement of 
     parents in programs assisted under this part consistent with 
     the provisions of this section. Such activities shall be 
     planned and implemented with meaningful consultation with 
     parents of participating children.
       ``(2) Written policy.--Each local educational agency that 
     receives funds under this part shall develop jointly with, 
     agree upon with, and distribute to, parents of participating 
     children a written parent involvement policy that is 
     incorporated into the local educational agency's plan 
     developed under section 1112, establishes the expectations 
     for parent involvement, and describes how the local 
     educational agency will--
       ``(A) involve parents in the joint development of the plan 
     under section 1112, and the process of school review and 
     improvement under section 1116;
       ``(B) provide the coordination, technical assistance, and 
     other support necessary to assist participating schools in 
     planning and implementing effective parent involvement;
       ``(C) build the schools' and parents' capacity for strong 
     parent involvement as described in subsection (e);
       ``(D) coordinate and integrate parental involvement 
     strategies under this part with parental involvement 
     strategies under other programs, such as Head Start, Early 
     Reading First, Reading First, Even Start, the Parents as 
     Teachers Program, the Home Instruction Program for Preschool 
     Youngsters, and State-run preschool programs;
       ``(E) conduct, with the involvement of parents, an annual 
     evaluation of the content and effectiveness of the parental 
     involvement policy in improving the academic quality of the 
     schools served under this part; and
       ``(F) involve parents in the activities of the schools 
     served under this part.
       ``(3) Reservation.--
       ``(A) In general.--Each local educational agency shall 
     reserve not less than 1 percent of such agency's allocation 
     under this part to carry out this section, including family 
     literacy and parenting skills, except that this paragraph 
     shall not apply if 1 percent of such agency's allocation 
     under this part (other than funds allocated under section 
     1002(g) for the fiscal year for which the determination is 
     made is $5,000 or less.
       ``(B) Parental input.--Parents of children receiving 
     services under this part shall be involved in the decisions 
     regarding how funds reserved under subparagraph (A) are 
     allotted for parental involvement activities.
       ``(C) Distribution of funds.--Not less than 95 percent of 
     the funds reserved under subparagraph (A) shall be 
     distributed to schools served under this part.
       ``(b) School Parental Involvement Policy.--
       ``(1) In general.--Each school served under this part shall 
     jointly develop with, and distribute to, parents of 
     participating children a written parental involvement policy, 
     agreed upon by such parents, that shall describe the means 
     for carrying out the requirements of subsections (c) through 
     (f). Parents shall be notified of the policy in a format, and 
     to the extent practicable in a language they can understand. 
     Such policy shall be updated periodically to meet the 
     changing needs of parents and the school.
       ``(2) Special rule.--If the school has a parental 
     involvement policy that applies to all parents, such school 
     may amend that policy, if necessary, to meet the requirements 
     of this subsection.
       ``(3) Amendment.--If the local educational agency has a 
     school district-level parental involvement policy that 
     applies to all parents, such agency may amend that policy, if 
     necessary, to meet the requirements of this subsection.
       ``(4) Parental comments.--If the plan under section 1112 is 
     not satisfactory to the parents of participating children, 
     the local educational agency shall submit any parent comments 
     with such plan when such local educational agency submits the 
     plan to the State.
       ``(c) Policy Involvement.--Each school served under this 
     part shall--
       ``(1) convene an annual meeting, at a convenient time, to 
     which all parents of participating children shall be invited 
     and encouraged to attend, to inform parents of their school's 
     participation under this part and to explain this part, its 
     requirements, and their right to be involved;
       ``(2) offer a flexible number of meetings, such as meetings 
     in the morning or evening, and may provide, with funds 
     provided under this part, transportation, child care, or home 
     visits, as such services relate to parental involvement;
       ``(3) involve parents, in an organized, ongoing, and timely 
     way, in the planning, review, and improvement of programs 
     under this part, including the school parental involvement 
     policy and the joint development of the schoolwide program 
     plan under section 1114(c)(2) and (c)(3), except that if a 
     school has in place a process for involving parents in the 
     joint planning and design of its programs, the school may use 
     that process, if such process includes an adequate 
     representation of parents of participating children;
       ``(4) provide parents of participating children--
       ``(A) timely information about programs under this part;

[[Page 8890]]

       ``(B) a description and explanation of the curriculum in 
     use at the school, the forms of academic assessment used to 
     measure student progress, and the proficiency levels students 
     are expected to meet; and
       ``(5) if the schoolwide program plan under section 
     1114(c)(2) and (c)(3) is not satisfactory to the parents of 
     participating children, submit any parent comments on the 
     plan when the school makes the plan available to the local 
     educational agency.
       ``(d) Shared Responsibilities for High Student 
     Performance.--As a component of the school-level parental 
     involvement policy developed under subsection (b), each 
     school served under this part shall agree with parents of 
     children served under this part regarding how parents, the 
     entire school staff, and students will share the 
     responsibility for improved student achievement and the means 
     by which the school and parents will build and develop a 
     partnership to help children achieve the State's high 
     academic standards.
       ``(e) Building Capacity for Involvement.--To ensure 
     effective involvement of parents and to support a partnership 
     among the school, parents, and the community to improve 
     student achievement, each school and local educational 
     agency--
       ``(1) shall provide assistance to participating parents in 
     such areas as understanding the State's academic content 
     standards and State student academic achievement standards, 
     State and local academic assessments, the requirements of 
     this part, and how to monitor a child's progress and work 
     with educators to improve the performance of their children;
       ``(2) shall provide materials and training to help parents 
     to work with their children to improve their children's 
     achievement;
       ``(3) shall educate teachers, pupil services personnel, 
     principals and other staff, with the assistance of parents, 
     in the value and utility of contributions of parents, and in 
     how to reach out to, communicate with, and work with parents 
     as equal partners, implement and coordinate parent programs, 
     and build ties between parents and the school;
       ``(4) shall coordinate and integrate parent involvement 
     programs and activities with Head Start, Reading First, Early 
     Reading First, Even Start, the Home Instruction Programs for 
     Preschool Youngsters, the Parents as Teachers Program, and 
     public preschool programs and other programs, to the extent 
     feasible and appropriate;
       ``(5) shall ensure, to the extent possible, that 
     information related to school and parent programs, meetings, 
     and other activities is sent to the parents of participating 
     children in the language used by such parents;
       ``(6) may involve parents in the development of training 
     for teachers, principals, and other educators to improve the 
     effectiveness of such training in improving instruction and 
     services to the children of such parents in a format, and to 
     the extent practicable, in a language the parent can 
     understand;
       ``(7) may provide necessary literacy training from funds 
     received under this part if the local educational agency has 
     exhausted all other reasonably available sources of funding 
     for such activities;
       ``(8) may pay reasonable and necessary expenses associated 
     with local parental involvement activities, including 
     transportation and child care costs, to enable parents to 
     participate in school-related meetings and training sessions;
       ``(9) may train parents to enhance the involvement of other 
     parents;
       ``(10) may arrange for teachers or other educators, who 
     work directly with participating children, to conduct in-home 
     conferences with parents who are unable to attend such 
     conferences at school;
       ``(11) may adopt and implement model approaches to 
     improving parental involvement;
       ``(12) may establish a districtwide parent advisory council 
     to provide advice on all matters related to parental 
     involvement in programs supported under this part;
       ``(13) may develop appropriate roles for community-based 
     organizations and businesses in parent involvement 
     activities; and
       ``(14) may arrange for teachers or other educators, who 
     work directly with participating children, to conduct in-home 
     conferences with parents who are unable to attend such 
     conferences at school.
       ``(f) Accessibility.--In carrying out the parental 
     involvement requirements of this part, local educational 
     agencies and schools, to the extent practicable, shall 
     provide full opportunities for the participation of parents 
     with limited English proficiency or with disabilities and 
     parents of migratory children, including providing 
     information and school reports required under section 1111 in 
     a format, and to the extent practicable, in a language such 
     parents understand.

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

       ``(a) Teachers.--
       ``(1) In general.--Each local educational agency receiving 
     assistance under this part shall ensure that all teachers 
     hired on or after the effective date of the No Child Left 
     Behind Act of 2001 and teaching in a program supported with 
     funds under this part are fully qualified.
       ``(2) Plan.--Each State receiving assistance under this 
     part shall develop and submit to the Secretary a plan to 
     ensure that all teachers teaching within the State are fully 
     qualified not later than December 31, 2005. Such plan shall 
     include an assurance that the State will require each local 
     educational agency and school receiving funds under this part 
     publicly to report their annual progress on the agency's and 
     the school's performance in increasing the percentage of 
     classes in core academic areas taught by fully qualified 
     teachers.
       ``(b) New Paraprofessionals.--
       ``(1) In general.--Each local educational agency receiving 
     assistance under this part shall ensure that all 
     paraprofessionals hired 1 year or more after the effective 
     date of the No Child Left Behind Act of 2001 and working in a 
     program supported with funds under this part shall--
       ``(A) have completed at least 2 years of study at an 
     institution of higher education;
       ``(B) have obtained an associate's (or higher) degree; or
       ``(C) have met a rigorous standard of quality that 
     demonstrates, through a formal academic assessment--
       ``(i) knowledge of, and the ability to assist in 
     instructing reading, writing, and math; or
       ``(ii) knowledge of, and the ability to assist in 
     instructing reading readiness, writing readiness, and math 
     readiness, as appropriate.
       ``(2) Clarification.--For purposes of paragraph (1)(C), the 
     receipt of a high school diploma (or its recognized 
     equivalent) shall be necessary but not by itself sufficient 
     to satisfy the requirements of such paragraph.
       ``(c) Existing Paraprofessionals.--Each local educational 
     agency receiving assistance under this part shall ensure that 
     all paraprofessionals hired before the date that is 1 year 
     after the effective date of the No Child Left Behind Act of 
     2001 and working in a program supported with funds under this 
     part shall, not later than 3 years after such effective date, 
     satisfy the requirements of subsection (b).
       ``(d) Exceptions for Translation and Parental Involvement 
     Activities.--Subsections (b) and (c) shall not apply to a 
     paraprofessional--
       ``(1) who is proficient in English and a language other 
     than English and who provides services primarily to enhance 
     the participation of children in programs under this part by 
     acting as a translator; or
       ``(2) whose duties consist solely of conducting parental 
     involvement activities consistent with section 1118.
       ``(e) General Requirement for All Paraprofessionals.--Each 
     local educational agency receiving assistance under this part 
     shall ensure that all paraprofessionals working in a program 
     supported with funds under this part, regardless of the 
     paraprofessional's hiring date, possess a high school diploma 
     or its recognized equivalent.
       ``(f) Duties of Paraprofessionals.--
       ``(1) In general.--Each local educational agency receiving 
     assistance under this part shall ensure that a 
     paraprofessional working in a program supported with funds 
     under this part is not assigned a duty inconsistent with this 
     subsection.
       ``(2) Responsibilities paraprofessionals may be assigned.--
     A paraprofessional described in paragraph (1) may only be 
     assigned--
       ``(A) to provide one-on-one tutoring for eligible students, 
     if the tutoring is scheduled at a time when a student would 
     not otherwise receive instruction from a teacher;
       ``(B) to assist with classroom management, such as 
     organizing instructional and other materials;
       ``(C) to provide assistance in a computer laboratory;
       ``(D) to conduct parental involvement activities;
       ``(E) to provide support in a library or media center;
       ``(F) to act as a translator; or
       ``(G) to provide instructional services to students.
       ``(3) Additional limitations.--A paraprofessional described 
     in paragraph (1)--
       ``(A) may not provide any instructional service to a 
     student unless the paraprofessional is working under the 
     direct supervision of a fully qualified teacher; and
       ``(B) may not provide instructional services to students in 
     the area of reading, writing, or math unless the 
     paraprofessional has demonstrated, through a State or local 
     academic assessment, the ability to effectively carry out 
     reading, writing, or math instruction.
       ``(g) Use of Funds.--
       ``(1) Professional development.--A local educational agency 
     receiving funds under this part may use such funds to support 
     ongoing training and professional development to assist 
     teachers and paraprofessionals in satisfying the requirements 
     of this section.
       ``(2) Limitation on use of funds for paraprofessionals.--
       ``(A) In general.--Beginning on and after the effective 
     date of the No Child Left Behind Act of 2001, a local 
     educational agency may not use funds received under this part 
     to fund any paraprofessional hired after such date unless the 
     hiring is to fill a vacancy created by the departure of 
     another paraprofessional funded under this part and such new 
     paraprofessional satisfies the requirements of subsection 
     (b), except as provided in subsection (d).
       ``(B) Exception.--Subparagraph (A) shall not apply for a 
     fiscal year to a local educational agency that can 
     demonstrate to the State that all teachers under the 
     jurisdiction of the agency are fully qualified.
       ``(h) Verification of Compliance.--
       ``(1) In general.--In verifying compliance with this 
     section, each local educational agency at a minimum shall 
     require that the principal of each school operating a program 
     under section 1114 or 1115 annually attest in writing as to 
     whether such school is in compliance with the requirements of 
     this section.

[[Page 8891]]

       ``(2) Availability of information.--Copies of attestations 
     under paragraph (1)--
       ``(A) shall be maintained at each school operating a 
     program under section 1114 or 1115 and at the main office of 
     the local educational agency; and
       ``(B) shall be available to any member of the general 
     public upon request.

     ``SEC. 1119A. PROFESSIONAL DEVELOPMENT.

       ``(a) Purpose.--The purpose of this section is to assist 
     each local educational agency receiving assistance under this 
     part in increasing the academic achievement of children 
     served under this part through improved teacher quality.
       ``(b) Professional Development Activities.--Professional 
     development activities under this section shall--
       ``(1) give teachers, principals, and administrators the 
     knowledge and skills to provide students with the opportunity 
     to meet challenging State or local academic content standards 
     and student academic achievement standards;
       ``(2) support the recruiting, hiring, and training of fully 
     qualified teachers, including teachers fully qualified 
     through State and local alternative routes;
       ``(3) advance teacher understanding of effective 
     instructional strategies based on scientifically based 
     research for improving student achievement, at a minimum, in 
     reading or language arts and mathematics;
       ``(4) be directly related to the curriculum and content 
     areas in which the teacher provides instruction, except this 
     requirement does not apply to activities that instruct in 
     methods of improving student behavior;
       ``(5) be designed to enhance the ability of a teacher to 
     understand and use the State's academic standards for the 
     subject area in which the teacher provides instruction;
       ``(6) be tied to scientifically based research 
     demonstrating the effectiveness of such professional 
     development activities or programs in increasing student 
     achievement or substantially increasing the knowledge and 
     teaching skills of teachers;
       ``(7) be of sufficient intensity and duration (not to 
     include 1-day or short-term workshops and conferences) to 
     have a positive and lasting impact on the teacher's 
     performance in the classroom;
       ``(8) be developed with extensive participation of 
     teachers, principals, parents, and administrators of schools 
     to be served under this part;
       ``(9) be designed to give teachers of limited English 
     proficient children, other teachers, and instructional staff 
     the knowledge and skills to provide instruction and 
     appropriate language and academic support services to such 
     children, including the appropriate use of curriculum and 
     academic assessments;
       ``(10) to the extent appropriate, provide training for 
     teachers in the use of technology so that technology and its 
     applications are effectively used in the classroom to improve 
     teaching and learning in the curriculum and academic content 
     areas in which the teachers provide instruction; and
       ``(11) as a whole, be regularly evaluated for their impact 
     on increased teacher effectiveness and improved student 
     achievement, with the findings of such evaluations used to 
     improve the quality of professional development.
       ``(c) Additional Professional Development Activities.--Such 
     professional development activities may include--
       ``(1) instruction in the use of data and academic 
     assessments to inform and instruct classroom practice;
       ``(2) instruction in ways that teachers, principals, pupil 
     services personnel, and school administrators may work more 
     effectively with parents;
       ``(3) the forming of partnerships with institutions of 
     higher education to establish school-based teacher training 
     programs that provide prospective teachers and novice 
     teachers with an opportunity to work under the guidance of 
     experienced teachers and college faculty;
       ``(4) the creation of career ladder programs for 
     paraprofessionals (assisting teachers under this part) to 
     obtain the education necessary for such paraprofessionals to 
     become licensed and certified teachers; and
       ``(5) instruction in ways to teach special needs children.
       ``(d) Program Participation.--Each local educational agency 
     receiving assistance under this part may design professional 
     development programs so that--
       ``(1) all school staff in schools participating in a 
     schoolwide program under section 1114 can participate in 
     professional development activities; and
       ``(2) all school staff in targeted assistance schools may 
     participate in professional development activities if such 
     participation will result in better addressing the needs of 
     students served under this part.
       ``(e) Parental Participation.--Parents may participate in 
     professional development activities under this part if the 
     school determines that parental participation is appropriate.
       ``(f) Consortia.--In carrying out such professional 
     development programs, local educational agencies may provide 
     services through consortia arrangements with other local 
     educational agencies, educational service agencies or other 
     local consortia, institutions of higher education, or other 
     public or private institutions or organizations.
       ``(g) Consolidation of Funds.--Funds provided under this 
     part that are used for professional development purposes may 
     be consolidated with funds provided under title II of this 
     Act and other sources.
       ``(h) Special Rule.--No State educational agency shall 
     require a school or a local educational agency to expend a 
     specific amount of funds for professional development 
     activities under this part, except that this paragraph shall 
     not apply with respect to requirements under section 
     1116(b)(3)(A)(iii).

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

       ``(a) General Requirement.--
       ``(1) In general.--To the extent consistent with the number 
     of eligible children identified under section 1115(b) in a 
     local educational agency who are enrolled in private 
     elementary and secondary schools, a local educational agency 
     shall, after timely and meaningful consultation with 
     appropriate private school officials, provide such children, 
     on an equitable basis, special educational services or other 
     benefits under this part (such as dual enrollment, 
     educational radio and television, computer equipment and 
     materials, other technology, and mobile educational services 
     and equipment) that address their needs, and shall ensure 
     that teachers and families of these students participate, on 
     an equitable basis, in services and activities developed 
     pursuant to sections 1118 and 1119A.
       ``(2) Secular, neutral, nonideological.--Such educational 
     services or other benefits, including materials and 
     equipment, shall be secular, neutral, and nonideological.
       ``(3) Equity.--Educational services and other benefits for 
     such private school children shall be equitable in comparison 
     to services and other benefits for public school children 
     participating under this part, and shall be provided in a 
     timely manner.
       ``(4) Expenditures.--Expenditures for educational services 
     and other benefits to eligible private school children shall 
     be equal to the proportion of funds allocated to 
     participating school attendance areas based on the number of 
     children from low-income families who attend private schools, 
     which the local educational agency may determine each year or 
     every 2 years.
       ``(5) Provision of services.--The local educational agency 
     shall provide services under this section directly or through 
     contracts with public and private agencies, organizations, 
     and institutions.
       ``(b) Consultation.--
       ``(1) In general.--To ensure timely and meaningful 
     consultation, a local educational agency shall consult with 
     appropriate private school officials during the design and 
     development of such agency's programs under this part, on 
     issues such as--
       ``(A) how the children's needs will be identified;
       ``(B) what services will be offered;
       ``(C) how, where, and by whom the services will be 
     provided;
       ``(D) how the services will be academically assessed and 
     how the results of that assessment will be used to improve 
     those services;
       ``(E) the size and scope of the equitable services to be 
     provided to the eligible private school children, and the 
     amount of funds generated by low-income private school 
     children in each participating attendance area;
       ``(F) the method or sources of data that are used under 
     subsection (a)(4) and section 1113(c)(2) to determine the 
     number of children from low-income families in participating 
     school attendance areas who attend private schools; and
       ``(G) how and when the agency will make decisions about the 
     delivery of services to such children, including a thorough 
     consideration and analysis of the views of the private school 
     officials on the provision of contract services through 
     potential third party providers.

     If the local educational agency disagrees with the views of 
     the private school officials on the provision of services, 
     through a contract, the local educational agency shall 
     provide in writing to such private school officials, an 
     analysis of the reasons why the local educational agency has 
     chosen not to use a contractor.
       ``(2) Timing.--Such consultation shall include meetings of 
     agency and private school officials and shall occur before 
     the local educational agency makes any decision that affects 
     the opportunities of eligible private school children to 
     participate in programs under this part. Such meetings shall 
     continue throughout implementation and assessment of services 
     provided under this section.
       ``(3) Discussion.--Such consultation shall include a 
     discussion of service delivery mechanisms a local educational 
     agency can use to provide equitable services to eligible 
     private school children.
       ``(4) Documentation.--Each local educational agency shall 
     maintain in its records and provide to the State educational 
     agency a written affirmation signed by officials of each 
     participating private school that the consultation required 
     by this section has occurred.
       ``(5) Compliance.--Private school officials shall have the 
     right to appeal to the State as to whether the consultation 
     provided for in this section was meaningful and timely, and 
     that due consideration was given to the views of private 
     school officials. If the private school wishes to appeal, the 
     basis of the claim of noncompliance with this section by a 
     local educational agency shall be provided to the State, and 
     the local educational agency shall forward the documentation 
     provided in subsection (b)(4) to the State.
       ``(c) Public Control of Funds.--
       ``(1) In general.--The control of funds provided under this 
     part, and title to materials, equipment, and property 
     purchased with such

[[Page 8892]]

     funds, shall be in a public agency, and a public agency shall 
     administer such funds and property.
       ``(2) Provision of services.--(A) The provision of services 
     under this section shall be provided--
       ``(i) by employees of a public agency; or
       ``(ii) through contract by such public agency with an 
     individual, association, agency, or organization.
       ``(B) In the provision of such services, such employee, 
     person, association, agency, or organization shall be 
     independent of such private school and of any religious 
     organization, and such employment or contract shall be under 
     the control and supervision of such public agency.
       ``(d) Standards for a Bypass.--If a local educational 
     agency is prohibited by law from providing for the 
     participation on an equitable basis of eligible children 
     enrolled in private elementary and secondary schools or if 
     the Secretary determines that a local educational agency has 
     substantially failed or is unwilling to provide for such 
     participation, as required by this section, the Secretary 
     shall--
       ``(1) waive the requirements of this section for such local 
     educational agency;
       ``(2) arrange for the provision of services to such 
     children through arrangements that shall be subject to the 
     requirements of this section and sections 8505 and 8506; and
       ``(3) in making the determination, consider 1 or more 
     factors, including the quality, size, scope, and location of 
     the program and the opportunity of eligible children to 
     participate.
       ``(e) Capital Expenses.--
       ``(1) In general.--(A) From the amount appropriated for 
     this subsection under section 1002(g) for any fiscal year, 
     each State is eligible to receive an amount that bears the 
     same ratio to the amount so appropriated as the number of 
     private school children who received services under this part 
     in the State in the most recent year for which data 
     satisfactory to the Secretary are available bears to the 
     number of such children in all States in that same year.
       ``(B) The Secretary shall reallocate any amounts allocated 
     under subparagraph (A) that are not used by a State for the 
     purpose of this subsection to other States on the basis of 
     their respective needs, as determined by the Secretary.
       ``(2) Capital expenses.--(A) A local educational agency may 
     apply to the State educational agency for payments for 
     capital expenses consistent with this subsection.
       ``(B) State educational agencies shall distribute such 
     funds under this subsection to local educational agencies 
     based on the degree of need set forth in their respective 
     applications for assistance under this subsection.
       ``(3) Uses of funds.--Any funds appropriated to carry out 
     this subsection shall be used only for capital expenses 
     incurred to provide equitable services for private school 
     children under this section.

     ``SEC. 1120A. FISCAL REQUIREMENTS.

       ``(a) Maintenance of Effort.--A local educational agency 
     may receive funds under this part for any fiscal year only if 
     the State educational agency finds that the local educational 
     agency has maintained its fiscal effort in accordance with 
     section 8501 of this Act.
       ``(b) Federal Funds To Supplement, Not Supplant, Non-
     Federal Funds.--
       ``(1) In general.--A State or local educational agency 
     shall use funds received under this part 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 education of pupils participating in programs assisted 
     under this part, and not to supplant such funds.
       ``(2) Special rule.--No local educational agency shall be 
     required to provide services under this part through a 
     particular instructional method or in a particular 
     instructional setting in order to demonstrate such agency's 
     compliance with paragraph (1).
       ``(c) Comparability of Services.--
       ``(1) In general.--(A) Except as provided in paragraphs (4) 
     and (5), a local educational agency may receive funds under 
     this part only if State and local funds will be used in 
     schools served under this part to provide services that, 
     taken as a whole, are at least comparable to services in 
     schools that are not receiving funds under this part.
       ``(B) If the local educational agency is serving all of 
     such agency's schools under this part, such agency may 
     receive funds under this part only if such agency will use 
     State and local funds to provide services that, taken as a 
     whole, are substantially comparable in each school.
       ``(C) A local educational agency may meet the requirements 
     of subparagraphs (A) and (B) on a grade-span by grade-span 
     basis or a school-by-school basis.
       ``(2) Written assurance.--(A) A local educational agency 
     shall be considered to have met the requirements of paragraph 
     (1) if such agency has filed with the State educational 
     agency a written assurance that such agency has established 
     and implemented--
       ``(i) a local educational agency-wide salary schedule;
       ``(ii) a policy to ensure equivalence among schools in 
     teachers, administrators, and other staff; and
       ``(iii) a policy to ensure equivalence among schools in the 
     provision of curriculum materials and instructional supplies.
       ``(B) For the purpose of subparagraph (A), in the 
     determination of expenditures per pupil from State and local 
     funds, or instructional salaries per pupil from State and 
     local funds, staff salary differentials for years of 
     employment shall not be included in such determinations.
       ``(C) A local educational agency need not include 
     unpredictable changes in student enrollment or personnel 
     assignments that occur after the beginning of a school year 
     in determining comparability of services under this 
     subsection.
       ``(3) Procedures and records.--Each local educational 
     agency assisted under this part shall--
       ``(A) develop procedures for compliance with this 
     subsection; and
       ``(B) maintain records that are updated biennially 
     documenting such agency's compliance with this subsection.
       ``(4) Inapplicability.--This subsection shall not apply to 
     a local educational agency that does not have more than 1 
     building for each grade span.
       ``(5) Compliance.--For the purpose of determining 
     compliance with paragraph (1), a local educational agency may 
     exclude State and local funds expended for--
       ``(A) English language instruction for children of limited 
     English proficiency; and
       ``(B) excess costs of providing services to children with 
     disabilities as determined by the local educational agency.
         ``(d) Exclusion of Funds.--For the purpose of complying 
     with subsections (b) and (c), a State or local educational 
     agency may exclude supplemental State or local funds expended 
     in any school attendance area or school for programs that 
     meet the intent and purposes of this part.

     ``SEC. 1120B. COORDINATION REQUIREMENTS.

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

                        ``Subpart 2--Allocations

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

       ``(a) Reservation of Funds.--From the amount appropriated 
     for payments to States for any fiscal year under section 
     1002(a), the Secretary shall reserve a total of 1 percent to 
     provide assistance to--
       ``(1) the outlying areas in the amount determined in 
     accordance with subsection (b); and
       ``(2) the Secretary of the Interior in the amount necessary 
     to make payments pursuant to subsection (d).
       ``(b) Assistance to Outlying Areas.--
       ``(1) Funds reserved.--From the amount made available for 
     any fiscal year under subsection (a), the Secretary shall 
     award grants to the outlying areas.
       ``(2) Competitive grants.--For each of fiscal years 2002 
     and 2003, the Secretary shall carry out the competition 
     described in paragraph (3), except that the amount reserved 
     to carry out such competition shall not exceed the amount 
     reserved under this section for the freely associated states 
     for fiscal year 1999.
       ``(3) Limitation for competitive grants.--
       ``(A) Competitive grants.--The Secretary shall use funds 
     described in paragraph (2) to award grants, on a competitive 
     basis, to the outlying areas and freely associated States to 
     carry out the purposes of this part.
       ``(B) Award basis.--The Secretary shall award grants under 
     subparagraph (A) on a competitive basis, pursuant to the 
     recommendations of the Pacific Region Educational Laboratory 
     in Honolulu, Hawaii.
       ``(C) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the amount reserved for grants under 
     this paragraph to pay the administrative costs of the Pacific 
     Region Educational Laboratory under subparagraph (B).
       ``(4) Special rule.--The provisions of Public Law 95-134, 
     permitting the consolidation of grants by the outlying areas, 
     shall not apply to

[[Page 8893]]

     funds provided to the freely associated States under this 
     section.
       ``(c) Definitions.--For the purposes of subsections (a) and 
     (b)--
       ``(1) the term `freely associated States' means the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau; and
       ``(2) the term `outlying area' means the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands.
       ``(d) Allotment to the Secretary of the Interior.--
       ``(1) In general.--The amount allotted for payments to the 
     Secretary of the Interior under subsection (a)(2) for any 
     fiscal year shall be, as determined pursuant to criteria 
     established by the Secretary, the amount necessary to meet 
     the special educational needs of--
       ``(A) Indian children on reservations served by elementary 
     and secondary schools for Indian children operated or 
     supported by the Department of the Interior; and
       ``(B) out-of-State Indian children in elementary and 
     secondary schools in local educational agencies under special 
     contracts with the Department of the Interior.
       ``(2) Payments.--From the amount allotted for payments to 
     the Secretary of the Interior under subsection (a)(2), the 
     Secretary of the Interior shall make payments to local 
     educational agencies, upon such terms as the Secretary 
     determines will best carry out the purposes of this part, 
     with respect to out-of-State Indian children described in 
     paragraph (1). The amount of such payment may not exceed, for 
     each such child, the greater of--
       ``(A) 40 percent of the average per-pupil expenditure in 
     the State in which the agency is located; or
       ``(B) 48 percent of such expenditure in the United States.

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

       ``(a) Allocation Formula.--Of the amount appropriated to 
     carry out this part for each of fiscal years 2002 through 
     2006 (referred to in this subsection as the current fiscal 
     year)--
       ``(1) an amount equal to the amount appropriated to carry 
     out section 1124 for fiscal year 2001 shall be allocated in 
     accordance with section 1124;
       ``(2) an amount equal to the amount appropriated to carry 
     out section 1124A for fiscal year 2001 shall be allocated in 
     accordance with section 1124A; and
       ``(3) an amount equal to 100 percent of the amount, if any, 
     by which the amount appropriated under section 1002(a) for 
     the current fiscal year exceeds the amount appropriated under 
     such section for fiscal year 2001 shall be allocated in 
     accordance with section 1125.
       ``(b) Adjustments Where Necessitated by Appropriations.--
       ``(1) In general.--If the sums available under this part 
     for any fiscal year are insufficient to pay the full amounts 
     that all local educational agencies in States are eligible to 
     receive under sections 1124, 1124A, and 1125 for such year, 
     the Secretary shall ratably reduce the allocations to such 
     local educational agencies, subject to subsections (c) and 
     (d) of this section.
       ``(2) Additional funds.--If additional funds become 
     available for making payments under sections 1124, 1124A, and 
     1125 for such fiscal year, allocations that were reduced 
     under paragraph (1) shall be increased on the same basis as 
     they were reduced.
       ``(c) Hold-Harmless Amounts.--
       ``(1) Amounts for sections 1124 and 1125.--For each fiscal 
     year, the amount made available to each local educational 
     agency under each of sections 1124 and 1125 shall be--
       ``(A) not less than 95 percent of the amount made available 
     in the preceding fiscal year if the number of children 
     counted for grants under section 1124 is not less than 30 
     percent of the total number of children aged 5 to 17 years, 
     inclusive, in the local educational agency;
       ``(B) not less than 90 percent of the amount made available 
     in the preceding fiscal year if the percentage described in 
     subparagraph (A) is between 15 percent and 30 percent; and
       ``(C) not less than 85 percent of the amount made available 
     in the preceding fiscal year if the percentage described in 
     subparagraph (A) is below 15 percent.
       ``(2) Amount for section 1124a.--The amount made available 
     to each local educational agency under section 1124A shall be 
     not less than 85 percent of the amount made available in the 
     preceding fiscal year.
       ``(3) Payments.--If sufficient funds are appropriated, the 
     amounts described in paragraph (2) shall be paid to all local 
     educational agencies that received grants under section 1124A 
     for the preceding fiscal year, regardless of whether the 
     local educational agency meets the minimum eligibility 
     criteria for that fiscal year provided in section 
     1124A(a)(1)(A) except that a local educational agency that 
     does not meet such minimum eligibility criteria for 4 
     consecutive years shall no longer be eligible to receive a 
     hold harmless amount referred to in paragraph (2).
       ``(4) Population data.--In any fiscal year for which the 
     Secretary calculates grants on the basis of population data 
     for counties, the Secretary shall apply the hold harmless 
     percentages in paragraphs (1) and (2) to counties, and if the 
     Secretary's allocation for a county is not sufficient to meet 
     the hold-harmless requirements of this subsection for every 
     local educational agency within that county, the State 
     educational agency shall reallocate funds proportionately 
     from all other local educational agencies in the State that 
     are receiving funds in excess of the hold harmless amounts 
     specified in this subsection.
       ``(d) Ratable Reductions.--
       ``(1) In general.--If the sums made available under this 
     part for any fiscal year are insufficient to pay the full 
     amounts that all States are eligible to receive under 
     subsection (c) for such year, the Secretary shall ratably 
     reduce such amounts for such year.
       ``(2) Additional funds.--If additional funds become 
     available for making payments under subsection (c) for such 
     fiscal year, amounts that were reduced under paragraph (1) 
     shall be increased on the same basis as such amounts were 
     reduced.
       ``(e) Definition.--For the purpose of this section and 
     sections 1124, 1124A, and 1125, the term `State' means each 
     of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.

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

       ``(a) Amount of Grants.--
       ``(1) Grants for local educational agencies and puerto 
     rico.--Except as provided in paragraph (4) and in section 
     1126, the grant that a local educational agency is eligible 
     to receive under this section for a fiscal year is the amount 
     determined by multiplying--
       ``(A) the number of children counted under subsection (c); 
     and
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     subparagraph shall not be less than 32 percent or more than 
     48 percent, of the average per-pupil expenditure in the 
     United States.
       ``(2) Calculation of grants.--
       ``(A) Allocations to local educational agencies.--The 
     Secretary shall calculate grants under this section on the 
     basis of the number of children counted under subsection (c) 
     for local educational agencies, unless the Secretary and the 
     Secretary of Commerce determine that some or all of those 
     data are unreliable or that their use would be otherwise 
     inappropriate, in which case--
       ``(i) the 2 Secretaries shall publicly disclose the reasons 
     for their determination in detail; and
       ``(ii) paragraph (3) shall apply.
       ``(B) Allocations to large and small local educational 
     agencies.--(i) For any fiscal year in which this paragraph 
     applies, the Secretary shall calculate grants under this 
     section for each local educational agency.
       ``(ii) The amount of a grant under this section for each 
     large local educational agency shall be the amount determined 
     under clause (i).
       ``(iii) For small local educational agencies, the State 
     educational agency may either--
       ``(I) distribute grants under this section in amounts 
     determined by the Secretary under clause (i); or
       ``(II) use an alternative method approved by the Secretary 
     to distribute the portion of the State's total grants under 
     this section that is based on those small agencies.
       ``(iv) An alternative method under clause (iii)(II) shall 
     be based on population data that the State educational agency 
     determines best reflect the current distribution of children 
     in poor families among the State's small local educational 
     agencies that meet the eligibility criteria of subsection 
     (b).
       ``(v) If a small local educational agency is dissatisfied 
     with the determination of its grant by the State educational 
     agency under clause (iii)(II), it may appeal that 
     determination to the Secretary, who shall respond not later 
     than 45 days after receipt of such appeal.
       ``(vi) As used in this subparagraph--
       ``(I) the term `large local educational agency' means a 
     local educational agency serving an area with a total 
     population of 20,000 or more; and
       ``(II) the term `small local educational agency' means a 
     local educational agency serving an area with a total 
     population of less than 20,000.
       ``(3) Allocations to counties.--
       ``(A) Calculation.--For any fiscal year to which this 
     paragraph applies, the Secretary shall calculate grants under 
     this section on the basis of the number of children counted 
     under section 1124(c) for counties, and State educational 
     agencies shall suballocate county amounts to local 
     educational agencies, in accordance with regulations issued 
     by the Secretary.
       ``(B) Direct allocations.--In any State in which a large 
     number of local educational agencies overlap county 
     boundaries, or for which the State believes it has data that 
     would better target funds than allocating them by county, the 
     State educational agency may apply to the Secretary for 
     authority to make the allocations under this part for a 
     particular fiscal year directly to local educational agencies 
     without regard to counties.
       ``(C) Assurances.--If the Secretary approves the State 
     educational agency's application under subparagraph (B), the 
     State educational agency shall provide the Secretary an 
     assurance that such allocations shall be made--
       ``(i) using precisely the same factors for determining a 
     grant as are used under this part; or
       ``(ii) using data that the State educational agency submits 
     to the Secretary for approval that more accurately target 
     poverty.
       ``(D) Appeal.--The State educational agency shall provide 
     the Secretary an assurance that it shall establish a 
     procedure through which a local educational agency that is 
     dissatisfied with its determinations under subparagraph (B) 
     may appeal directly to the Secretary for a final 
     determination.

[[Page 8894]]

       ``(4) Puerto Rico.--
       ``(A) In general.--For each fiscal year, the grant which 
     the Commonwealth of Puerto Rico shall be eligible to receive 
     under this section shall be the amount determined by 
     multiplying the number of children counted under subsection 
     (c) for the Commonwealth of Puerto Rico by the product of--
       ``(i) the percentage which the average per-pupil 
     expenditure in the Commonwealth of Puerto Rico is of the 
     lowest average per-pupil expenditure of any of the 50 States; 
     and
       ``(ii) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(B) Minimum percentage.--The percentage in subparagraph 
     (A)(i) shall not be less than--
       ``(i) for fiscal year 2002, 77.5 percent;
       ``(ii) for fiscal year 2003, 80.0 percent;
       ``(iii) for fiscal year 2004, 82.5 percent; and
       ``(iv) for fiscal year 2005 and succeeding fiscal years, 
     85.0 percent.
       ``(C) Limitation.--If the application of subparagraph (B) 
     would result in any of the 50 States or the District of 
     Columbia receiving less under this part than it received 
     under this part for the preceding fiscal year, the percentage 
     in subparagraph (A) shall be the greater of the percentage in 
     subparagraph (A)(i) or the percentage used for the preceding 
     fiscal year.
       ``(5) Definition.--For purposes of this subsection, the 
     term `State' does not include Guam, American Samoa, the 
     Virgin Islands, and the Northern Mariana Islands.
       ``(b) Minimum Number of Children To Qualify.--A local 
     educational agency is eligible for a basic grant under this 
     section for any fiscal year only if the number of children 
     counted under subsection (c) for that agency is both--
       ``(1) 10 or more; and
       ``(2) more than 2 percent of the total school-age 
     population in the agency's jurisdiction.
       ``(c) Children To Be Counted.--
       ``(1) Categories of children.--The number of children to be 
     counted for purposes of this section is the aggregate of--
       ``(A) the number of children aged 5 to 17, inclusive, in 
     the school district of the local educational agency from 
     families below the poverty level as determined under 
     paragraph (2);
       ``(B) the number of children (determined under paragraph 
     (4) for either the preceding year as described in that 
     paragraph, or for the second preceding year, as the Secretary 
     finds appropriate) aged 5 to 17, inclusive, in the school 
     district of such agency in institutions for neglected and 
     delinquent children (other than such institutions operated by 
     the United States), but not counted pursuant to subpart 1 of 
     part D for the purposes of a grant to a State agency, or 
     being supported in foster homes with public funds; and
       ``(C) the number of children aged 5 to 17, inclusive, in 
     the school district of such agency from families above the 
     poverty level as determined under paragraph (4).
       ``(2) Determination of number of children.--For the 
     purposes of this section, the Secretary shall determine the 
     number of children aged 5 to 17, inclusive, from families 
     below the poverty level on the basis of the most recent 
     satisfactory data, described in paragraph (3), available from 
     the Department of Commerce. The District of Columbia and the 
     Commonwealth of Puerto Rico shall be treated as individual 
     local educational agencies. If a local educational agency 
     contains 2 or more counties in their entirety, then each 
     county will be treated as if such county were a separate 
     local educational agency for purposes of calculating grants 
     under this part. The total of grants for such counties shall 
     be allocated to such a local educational agency, which local 
     educational agency shall distribute to schools in each county 
     within such agency a share of the local educational agency's 
     total grant that is no less than the county's share of the 
     population counts used to calculate the local educational 
     agency's grant.
       ``(3) Population updates.--In fiscal year 2001 and every 2 
     years thereafter, the Secretary shall use updated data on the 
     number of children, aged 5 to 17, inclusive, from families 
     below the poverty level for local educational agencies or 
     counties, published by the Department of Commerce, unless the 
     Secretary and the Secretary of Commerce determine that use of 
     the updated population data would be inappropriate or 
     unreliable. If the Secretary and the Secretary of Commerce 
     determine that some or all of the data referred to in this 
     paragraph are inappropriate or unreliable, they shall 
     publicly disclose their reasons. In determining the families 
     which are below the poverty level, the Secretary shall 
     utilize the criteria of poverty used by the Bureau of the 
     Census in compiling the most recent decennial census, in such 
     form as those criteria have been updated by increases in the 
     Consumer Price Index for all urban consumers, published by 
     the Bureau of Labor Statistics.
       ``(4) Other children to be counted.--For the purposes of 
     this section, the Secretary shall determine the number of 
     children aged 5 to 17, inclusive, from families above the 
     poverty level on the basis of the number of such children 
     from families receiving an annual income, in excess of the 
     current criteria of poverty, from payments under a State 
     program funded under part A of title IV of the Social 
     Security Act; and in making such determinations the Secretary 
     shall utilize the criteria of poverty used by the Bureau of 
     the Census in compiling the most recent decennial census for 
     a family of 4 in such form as those criteria have been 
     updated by increases in the Consumer Price Index for all 
     urban consumers, published by the Bureau of Labor Statistics. 
     The Secretary shall determine the number of such children and 
     the number of children aged 5 through 17 living in 
     institutions for neglected or delinquent children, or being 
     supported in foster homes with public funds, on the basis of 
     the caseload data for the month of October of the preceding 
     fiscal year (using, in the case of children described in the 
     preceding sentence, the criteria of poverty and the form of 
     such criteria required by such sentence which were determined 
     for the calendar year preceding such month of October) or, to 
     the extent that such data are not available to the Secretary 
     before January of the calendar year in which the Secretary's 
     determination is made, then on the basis of the most recent 
     reliable data available to the Secretary at the time of such 
     determination. The Secretary of Health and Human Services 
     shall collect and transmit the information required by this 
     subparagraph to the Secretary not later than January 1 of 
     each year. For the purpose of this section, the Secretary 
     shall consider all children who are in correctional 
     institutions to be living in institutions for delinquent 
     children.
       ``(5) Estimate.--When requested by the Secretary, the 
     Secretary of Commerce shall make a special updated estimate 
     of the number of children of such ages who are from families 
     below the poverty level (as determined under subparagraph (A) 
     of this paragraph) in each school district, and the Secretary 
     is authorized to pay (either in advance or by way of 
     reimbursement) the Secretary of Commerce the cost of making 
     this special estimate. The Secretary of Commerce shall give 
     consideration to any request of the chief executive of a 
     State for the collection of additional census information.
       ``(d) State Minimum.--Notwithstanding section 1122, the 
     aggregate amount allotted for all local educational agencies 
     within a State may not be less than the lesser of--
       ``(1) 0.25 percent of total grants under this section; or
       ``(2) the average of--
       ``(A) one-quarter of 1 percent of the total amount 
     available for such fiscal year under this section; and
       ``(B) the number of children in such State counted under 
     subsection (c) in the fiscal year multiplied by 150 percent 
     of the national average per-pupil payment made with funds 
     available under this section for that year.

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

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

       ``(aa) $340,000; or
       ``(bb) the number of children in such State counted for 
     purposes of this section in that fiscal year multiplied by 
     150 percent of the national average per-pupil payment made 
     with funds available under this section for that year.

       ``(2) Special rule.--For each county or local educational 
     agency eligible to receive an additional grant under this 
     section for any fiscal year the Secretary shall determine the 
     product of--
       ``(A) the number of children counted under section 1124(c) 
     for that fiscal year; and
       ``(B) the quotient resulting from the division of the 
     amount determined for those agencies under section 1124(a)(1) 
     for the fiscal year for which the determination is being made 
     divided by the total number of children counted under section 
     1124(c) for that agency for that fiscal year.
       ``(3) Amount.--The amount of the additional grant for which 
     an eligible local educational agency or county is eligible 
     under this section for any fiscal year shall be an amount 
     which bears the same ratio to the amount available to carry 
     out this section for that fiscal year as the product 
     determined under paragraph (2) for such local educational 
     agency for that fiscal year bears to the sum of such products 
     for all local educational agencies in the United States for 
     that fiscal year.
       ``(4) Local allocations.--(A) Grant amounts under this 
     section shall be determined in accordance with section 
     1124(a)(2) and (3).
       ``(B) For any fiscal year for which the Secretary allocates 
     funds under this section on the basis of counties, a State 
     may reserve not more than 2 percent of its allocation under 
     this section to make grants to local educational agencies 
     that meet the criteria of paragraph (1)(A)(i) or (ii) and are 
     in ineligible counties that do not meet these criteria.
       ``(b) States Receiving Minimum Grants.--In States that 
     receive the minimum grant under subsection (a)(1)(B), the 
     State educational agency shall allocate such funds among the 
     local educational agencies in each State either--

[[Page 8895]]

       ``(1) in accordance with paragraphs (2) and (4) of 
     subsection (a); or
       ``(2) based on their respective concentrations and numbers 
     of children counted under section 1124(c), except that only 
     those local educational agencies with concentrations or 
     numbers of children counted under section 1124(c) that exceed 
     the statewide average percentage of such children or the 
     statewide average number of such children shall receive any 
     funds on the basis of this paragraph.

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

       ``(a) Eligibility of Local Educational Agencies.--A local 
     educational agency in a State is eligible to receive a 
     targeted grant under this section for any fiscal year if the 
     number of children in the local educational agency counted 
     under subsection 1124(c), before application of the weighting 
     factor described in subsection (c), is at least 10, and if 
     the number of children counted for grants under section 1124 
     is at least 5 percent of the total population aged 5 to 17 
     years, inclusive, in the local educational agency. For each 
     fiscal year for which the Secretary uses county population 
     data to calculate grants, funds made available as a result of 
     applying this subsection shall be reallocated by the State 
     educational agency to other eligible local educational 
     agencies in the State in proportion to the distribution of 
     other funds under this section.
       ``(b) Grants for Local Educational Agencies, the District 
     of Columbia, and Puerto Rico.--
       ``(1) In general.--The amount of the grant that a local 
     educational agency in a State or that the District of 
     Columbia is eligible to receive under this section for any 
     fiscal year shall be the product of--
       ``(A) the weighted child count determined under subsection 
     (c); and
       ``(B) the amount in paragraph 1124(a)(1)(B).
       ``(2) Puerto rico.--For each fiscal year, the amount of the 
     grant for which the Commonwealth of Puerto Rico is eligible 
     under this section shall be equal to the number of children 
     counted under subsection (c) for Puerto Rico, multiplied by 
     the amount determined in subparagraph 1124(a)(4).
       ``(c) Weighted Child Count.--
       ``(1) Weights for allocations to counties.--
       ``(A) In general.--For each fiscal year for which the 
     Secretary uses county population data to calculate grants, 
     the weighted child count used to determine a county's 
     allocation under this section is the larger of the 2 amounts 
     determined under clause (i) or (ii), as follows:
       ``(i) By percentage of children.--This amount is determined 
     by adding--

       ``(I) the number of children determined under section 
     1124(c) for that county constituting up to 15 percent, 
     inclusive, of the county's total population aged 5 to 17, 
     inclusive, multiplied by 1.0;
       ``(II) the number of such children constituting more than 
     15 percent, but not more than 19 percent, of such population, 
     multiplied by 1.75;
       ``(III) the number of such children constituting more than 
     19 percent, but not more than 24.20 percent, of such 
     population, multiplied by 2.5;
       ``(IV) the number of such children constituting more than 
     24.20 percent, but not more than 29.20 percent, of such 
     population, multiplied by 3.25; and
       ``(V) the number of such children constituting more than 
     29.20 percent of such population, multiplied by 4.0.

       ``(ii) By number of children.--This amount is determined by 
     adding--

       ``(I) the number of children determined under section 
     1124(c) constituting up to 2,311, inclusive, of the county's 
     total population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children between 2,312 and 7,913, 
     inclusive, in such population, multiplied by 1.5;
       ``(III) the number of such children between 7,914 and 
     23,917, inclusive, in such population, multiplied by 2.0;
       ``(IV) the number of such children between 23,918 and 
     93,810, inclusive, in such population, multiplied by 2.5; and
       ``(V) the number of such children in excess of 93,811 in 
     such population, multiplied by 3.0.

       ``(B) Puerto rico.--Notwithstanding subparagraph (A), the 
     weighted child count for Puerto Rico under this paragraph 
     shall not be greater than the total number of children 
     counted under subsection 1124(c) multiplied by 1.72.
       ``(2) Weights for allocations to local educational 
     agencies.--
       ``(A) In general.--For each fiscal year for which the 
     Secretary uses local educational agency data, the weighted 
     child count used to determine a local educational agency's 
     grant under this section is the larger of the 2 amounts 
     determined under clauses (i) and (ii), as follows:
       ``(i) By percentage of children.--This amount is determined 
     by adding--

       ``(I) the number of children determined under section 
     1124(c) for that local educational agency constituting up to 
     15.233 percent, inclusive, of the agency's total population 
     aged 5 to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children constituting more than 
     15.233 percent, but not more than 22.706 percent, of such 
     population, multiplied by 1.75;
       ``(III) the number of such children constituting more than 
     22.706 percent, but not more than 32.213 percent, of such 
     population, multiplied by 2.5;
       ``(IV) the number of such children constituting more than 
     32.213 percent, but not more than 41.452 percent, of such 
     population, multiplied by 3.25; and
       ``(V) the number of such children constituting more than 
     41.452 percent of such population, multiplied by 4.0.

       ``(ii) By number of children.--This amount is determined by 
     adding--

       ``(I) the number of children determined under section 
     1124(c) constituting up to 710, inclusive, of the agency's 
     total population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children between 711 and 2,384, 
     inclusive, in such population, multiplied by 1.5;
       ``(III) the number of such children between 2,385 and 
     9,645, inclusive, in such population, multiplied by 2.0;
       ``(IV) the number of such children between 9,646 and 
     54,600, inclusive, in such population, multiplied by 2.5; and
       ``(V) the number of such children in excess of 54,601 in 
     such population, multiplied by 3.0.

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

     ``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

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

     ``SEC. 1127. CARRYOVER AND WAIVER.

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

     ``SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.

       ``Any school that receives funds under this part shall 
     ensure that educational services or other benefits provided 
     under this part, including materials and equipment, shall be 
     secular, neutral, and nonideological.''.

           PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

     SEC. 111. READING FIRST; EARLY READING FIRST.

       Part B of title I (20 U.S.C. 6361 et seq.) is amended--

[[Page 8896]]

       (1) by striking the part heading and inserting the 
     following:

         ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS'';

       (2) by redesignating sections 1201 through 1212 as sections 
     1231 through 1242, respectively; and
       (3) by inserting after the part heading the following:

                       ``Subpart 1--Reading First

     ``SEC. 1201. FINDINGS.

       ``The Congress finds as follows:
       ``(1) The 2000 National Assessment of Educational Progress 
     found that 68 percent of fourth grade students in the United 
     States are reading below the proficient level.
       ``(2) According to the 2000 National Assessment of 
     Educational Progress report on reading, 63 percent of African 
     Americans, 58 percent of Hispanic Americans, 60 percent of 
     children living in poverty, and 47 percent of children in 
     urban schools scored `below basic' in reading.
       ``(3) More than \1/2\ of the students placed in special 
     education classes are identified as learning disabled and, 
     for as many as 80 percent of the students so identified, 
     reading is the primary difficulty.
       ``(4) It is estimated that, at a minimum, 10,000,000 
     children have difficulty learning to read. 10 to 15 percent 
     of those children eventually drop out of high school, and 
     only 2 percent complete a 4-year program at an institution of 
     higher education.
       ``(5) It is estimated that the number of children who are 
     typically identified as poor readers can be significantly 
     reduced through the implementation of early identification 
     and prevention programs that are based on scientifically 
     based reading research.
       ``(6) The report issued by the National Reading Panel in 
     2000 found that the course of reading instruction that 
     obtains maximum benefits for students includes explicit and 
     systematic instruction in phonemic awareness, phonics, 
     vocabulary development, reading fluency, and reading 
     comprehension strategies.

     ``SEC. 1202. PURPOSES.

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

     ``SEC. 1203. FORMULA GRANTS TO STATES.

       ``(a) In General.--
       ``(1) Authorization to make grants.--In the case of each 
     State that in accordance with section 1204 submits to the 
     Secretary an application for a 5-year period, the Secretary, 
     subject to the application's approval, shall make a grant to 
     the State for the uses specified in subsections (c) and (d). 
     For each fiscal year, the funds provided under the grant 
     shall equal the allotment determined for the State under 
     subsection (b).
       ``(2) Duration of grants.--
       ``(A) In general.--Subject to subparagraph (B), a grant 
     under this section shall be awarded for a period of not more 
     than 5 years.
       ``(B) Interim review.--
       ``(i) Progress report.--

       ``(I) Submission.--Not later than 60 days after the 
     termination of the third year of the grant period, each State 
     receiving a grant under this section shall submit a progress 
     report to the Secretary.
       ``(II) Information included.--The progress report shall 
     include information on the progress the State, and local 
     educational agencies within the State, are making in reducing 
     the number of students served under this subpart in the first 
     and second grades who are reading below grade level, as 
     demonstrated by such information as teacher reports and 
     school evaluations of mastery of the essential components of 
     reading instruction. The report shall also include evidence 
     from the State and its local educational agencies that they 
     have significantly increased the number of students reading 
     at grade level or above, significantly increased the 
     percentages of students in ethnic, racial, and low-income 
     populations who are reading at grade level or above, and 
     successfully implemented this subpart.

       ``(ii) Peer review.--The progress report described in 
     clause (i) shall be reviewed by the peer review panel 
     convened under section 1204(c)(2).
       ``(iii) Consequences of insufficient progress.--After the 
     submission of the progress report described in clause (i), if 
     the Secretary determines that the State is not making 
     significant progress in meeting the purposes of this subpart, 
     the Secretary may withhold from the State, in whole or in 
     part, further payments under this section in accordance with 
     section 455 of the General Education Provisions Act (20 
     U.S.C. 1234d) or take such other action authorized by law as 
     the Secretary deems necessary, including providing technical 
     assistance upon request of the State.
       ``(b) Determination of Amount of Allotments.--
       ``(1) Reservations from appropriations.--From the total 
     amount made available under section 1002(b)(1) to carry out 
     this subpart for a fiscal year, the Secretary--
       ``(A) shall 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;
       ``(B) shall reserve \1/2\ of 1 percent for the Secretary of 
     the Interior for programs under this subpart in schools 
     operated or funded by the Bureau of Indian Affairs;
       ``(C) shall reserve not more than 3 percent or $30,000,000, 
     whichever is less, to carry out section 1206;
       ``(D) may reserve not more than 1 percent to carry out 
     section 1207; and
       ``(E) shall reserve $5,000,000 to carry out section 1208.
       ``(2) State allotments.--From the total amount made 
     available under section 1002(b)(1) to carry out this subpart 
     for a fiscal year and not reserved under paragraph (1), the 
     Secretary shall allot 80 percent under this section among 
     each of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.
       ``(3) Determination of state allotment amounts.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall allot the amount made available under 
     paragraph (2) for a fiscal year among the States described in 
     such paragraph in proportion to the number of children, aged 
     5 to 17, who reside within the State from families with 
     incomes below the poverty line (as defined by the Office of 
     Management and Budget and revised annually in accordance with 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2)) applicable to a family of the size involved 
     for the most recent fiscal year for which satisfactory data 
     are available, compared to the number of such individuals who 
     reside in all such States for that fiscal year.
       ``(B) Exceptions.--
       ``(i) In general.--Subject to clause (ii), no State 
     receiving an allotment under subparagraph (A) may receive 
     less than \1/4\ of 1 percent of the total amount allotted 
     under such subparagraph.
       ``(ii) Puerto rico.--The percentage of the amount allotted 
     under subparagraph (A) that is allotted to the Commonwealth 
     of Puerto Rico for a fiscal year may not exceed the 
     percentage that was received by the Commonwealth of Puerto 
     Rico of the funds allocated to all States under subpart 2 of 
     part A for the preceding fiscal year.
       ``(4) Reallotment.--If a State described in paragraph (2) 
     does not apply for an allotment under this section for any 
     fiscal year, or if the State's application is not approved, 
     the Secretary shall reallot such amount to the remaining 
     States in accordance with paragraph (3).
       ``(c) Subgrants to Local Educational Agencies.--
       ``(1) Distribution of subgrants.--The Secretary may make a 
     grant to a State under this section only if the State agrees 
     to expend at least 80 percent of the amount of the funds 
     provided under the grant for the purpose of making, in 
     accordance with this subsection, competitive subgrants to 
     local educational agencies.
       ``(2) Notice.--A State receiving a grant under this section 
     shall provide notice to all local educational agencies in the 
     State of the availability of competitive subgrants under this 
     subsection and of the requirements for applying for the 
     subgrants.
       ``(3) Local applications.--To be eligible to receive a 
     subgrant under this subsection, a local educational agency 
     shall submit an application to the State at such time, in 
     such manner, and containing such information as the State may 
     reasonably require.
       ``(4) Limitation to certain local agencies.--A State 
     receiving a grant under this section may award subgrants 
     under this subsection only to local educational agencies--
       ``(A) that have the highest percentages of students in 
     grades kindergarten through 3 reading below grade level; and
       ``(B) that--
       ``(i) have jurisdiction over--

       ``(I) a geographic area that includes an area designated as 
     an empowerment zone, or an enterprise community, under part I 
     of subchapter U of chapter 1 of the Internal Revenue Code of 
     1986; or
       ``(II) a significant number of schools that are identified 
     for school improvement under section 1116(b); or

       ``(ii) are located in areas having the greatest numbers or 
     percentages of children aged 5 through 17 from low-income 
     families.
       ``(5) State requirement.--In distributing subgrant funds to 
     local educational agencies under this subsection, a State 
     shall provide funds in sufficient size and scope to enable 
     local educational agencies to improve reading instruction, as 
     determined by rigorous diagnostic reading and screening 
     assessment tools.
       ``(6) Limitation to certain schools.--In distributing 
     subgrant funds under this subsection,

[[Page 8897]]

     a local educational agency may provide funds only to 
     schools--
       ``(A) that have the highest percentages of students in 
     grades kindergarten through 3 reading below grade level; and
       ``(B) that--
       ``(i) are identified for school improvement under section 
     1116(b); or
       ``(ii) have the greatest numbers or percentages of children 
     aged 5 through 17 from low-income families.
       ``(7) Local uses of funds.--
       ``(A) Required uses.--Subject to paragraph (8), a local 
     educational agency that receives a subgrant under this 
     subsection shall use the funds provided under the subgrant to 
     carry out the following activities:
       ``(i) Selecting and administering rigorous diagnostic 
     reading and screening assessment tools.
       ``(ii) Selecting and implementing a program or programs of 
     classroom reading instruction based on scientifically based 
     reading research that--

       ``(I) includes the essential components of reading 
     instruction; and
       ``(II) provides such instruction to all children, including 
     children who--

       ``(aa) may have reading difficulties;
       ``(bb) are at risk of being referred to special education 
     based on these difficulties;
       ``(cc) have been evaluated under section 614 of the 
     Individuals with Disabilities Education Act but, in 
     accordance with section 614(b)(5) of such Act, have not been 
     identified as being a child with a disability (as defined in 
     section 602 of such Act);
       ``(dd) are being served under such Act primarily due to 
     being identified as being a child with a specific learning 
     disability (as defined in section 602 of such Act) related to 
     reading;
       ``(ee) are deficient in their phonemic awareness, phonics 
     skills, vocabulary development, oral reading fluency, or 
     comprehension strategies; or
       ``(ff) are identified as having limited English 
     proficiency.
       ``(iii) Procuring classroom instructional materials based 
     on scientifically based reading research.
       ``(iv) Providing professional development for teachers of 
     grades kindergarten through 3, and special education teachers 
     of grades kindergarten through 12, that--

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

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

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

       ``(B) Optional uses.--Subject to paragraph (8), a local 
     educational agency that receives a subgrant under this 
     subsection may use the funds provided under the subgrant to 
     carry out the following activities:
       ``(i) Providing training to parents and other individuals 
     who volunteer to be reading tutors in the essential 
     components of reading instruction.
       ``(ii) Providing family literacy services, especially to 
     parents enrolled in participating schools, through the use of 
     library materials and reading programs, strategies, and 
     approaches that are based on scientifically based reading 
     research, to encourage reading and support their children's 
     reading development.
       ``(8) Local planning and administration.--A local 
     educational agency that receives a subgrant under this 
     subsection may use not more than 2 percent of the funds 
     provided under the subgrant for planning and administration.
       ``(d) Other State Uses of Funds.--
       ``(1) Professional development.--
       ``(A) In general.--A State that receives a grant under this 
     section may expend not more than 15 percent of the amount of 
     the funds provided under the grant--
       ``(i) to develop and implement a program of in-service 
     professional development for teachers of kindergarten through 
     third grade, and special education teachers of grades 
     kindergarten through 12, that--

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

       ``(aa) information on interventions, instructional 
     materials, programs, and approaches based on scientifically 
     based reading research, including early intervention and 
     reading remediation materials, programs, and approaches; and
       ``(bb) instruction in the use of rigorous diagnostic 
     reading and screening assessment tools and other procedures 
     to improve instruction and effectively identify students who 
     may be at risk for reading failure or who are having 
     difficulty reading; and

       ``(III) shall be provided by eligible professional 
     development providers;

       ``(ii) to strengthen and enhance professional development 
     courses for students preparing, at all public institutions of 
     higher education in the State, to teach kindergarten through 
     third grades by--

       ``(I) reviewing such courses to determine whether their 
     content is consistent with the findings of the most current 
     scientifically based reading research, including findings on 
     the essential components of reading instruction;
       ``(II) following up such reviews with recommendations to 
     ensure that such institutions offer courses that meet the 
     highest standards; and
       ``(III) preparing a report on the results of such reviews, 
     submitting it to the reading and literacy partnership for the 
     State established under section 1204(d), and making it 
     available for public review via the Internet; and

       ``(iii) to make recommendations on how the State's 
     licensure and certification standards in the area of reading 
     might be improved.
       ``(B) Funds not used for professional development.--Any 
     portion of the funds described in subparagraph (A) that a 
     State does not expend in accordance with such subparagraph 
     shall be expended for the purpose of making subgrants in 
     accordance with subsection (c).
       ``(2) Other state-level activities.--A State that receives 
     a grant under this section may expend not more than 3 percent 
     of the amount of the funds provided under the grant for one 
     or more of the following authorized State activities:
       ``(A) Assisting local educational agencies in accomplishing 
     the tasks required to design and implement a classroom 
     reading program under this subpart, including--
       ``(i) selecting and implementing a program or programs of 
     classroom reading instruction based on scientifically based 
     reading research;
       ``(ii) selecting rigorous diagnostic reading and screening 
     assessment tools; and
       ``(iii) identifying eligible professional development 
     providers to help prepare reading teachers to teach students 
     using the programs and assessments described in clauses (i) 
     and (ii);
       ``(B) Providing to students in kindergarten through third 
     grades, through appropriate providers, reading instruction 
     that includes--
       ``(i) rigorous diagnostic reading and screening assessment 
     tools; and
       ``(ii) as need is indicated by such assessments, 
     instruction based on scientifically based reading research 
     that includes the essential components of reading 
     instruction.
       ``(3) Planning, administration, and reporting.--
       ``(A) In general.--A State that receives a grant under this 
     section shall expend not more than 2 percent of the amount of 
     the funds provided under the grant for the activities 
     described in this paragraph.
       ``(B) Planning and administration.--A State that receives a 
     grant under this section may expend funds described in 
     subparagraph (A) for--
       ``(i) planning and administration relating to the State 
     uses of funds authorized under this subpart, including 
     administering the distribution of competitive subgrants to 
     local educational agencies under this section and section 
     1205; and
       ``(ii) assessing and evaluating, on a regular basis, local 
     educational agency activities assisted under this subpart, 
     with respect to whether they have been effective in 
     increasing the number of children in first and second grades 
     served under this subpart who can read at or above grade 
     level.
       ``(C) Annual reporting.--
       ``(i) In general.--A State that receives a grant under this 
     section shall expend funds provided under the grant to 
     provide the Secretary annually with a report on the 
     implementation of this subpart. The report shall include 
     evidence that the State is fulfilling its obligations under 
     this subpart. The report shall include a specific 
     identification of those schools and local educational 
     agencies that report the largest gains in reading 
     achievement.
       ``(ii) Privacy protection.--Data in the report shall be set 
     forth in a manner that protects the privacy of individuals.
       ``(iii) Contract.--To the extent practicable, a State shall 
     enter into a contract with an entity that conducts 
     scientifically based reading research, under which contract 
     the entity will produce the reports required to be submitted 
     under this subparagraph.

     ``SEC. 1204. STATE FORMULA GRANT APPLICATIONS.

       ``(a) In General.--A State that desires to receive a grant 
     under section 1203 shall submit an application to the 
     Secretary at such time and in such form as the Secretary may 
     require. The application shall contain the information 
     described in subsection (b).
       ``(b) Contents.--An application under this section shall 
     contain the following:
       ``(1) An assurance that the Governor of the State, in 
     consultation with the State educational agency, has 
     established a reading and literacy partnership described in 
     subsection (d), and a description of how such partnership--
       ``(A) coordinated the development of the application; and
       ``(B) will assist in the oversight and evaluation of the 
     State's activities under this subpart.
       ``(2) An assurance that the State will submit to the 
     Secretary, at such time and in such manner as the Secretary 
     may reasonably require, a State plan containing a description 
     of a process--
       ``(A) to evaluate programs carried out by local educational 
     agencies under this subpart;
       ``(B) to assist local educational agencies in identifying 
     rigorous diagnostic reading and screening assessment tools; 
     and
       ``(C) to assist local educational agencies in identifying 
     interventions, and instructional materials, programs and 
     approaches, based on scientifically based reading research, 
     including early intervention and classroom reading materials 
     and remedial programs and approaches.

[[Page 8898]]

       ``(3) An assurance that the State, and local educational 
     agencies in the State, will participate in all national 
     evaluations under this subpart.
       ``(c) Approval of Applications.--
       ``(1) In general.--The Secretary, in consultation with the 
     peer review panel convened under paragraph (2), shall approve 
     an application of a State under this section if such 
     application meets the requirements of this section.
       ``(2) Peer review.--
       ``(A) In general.--The Secretary, in consultation with the 
     National Institute for Literacy, shall convene a panel to 
     evaluate applications under this section. At a minimum, the 
     panel shall include--
       ``(i) 3 individuals selected by the Secretary;
       ``(ii) 3 individuals selected by the National Institute for 
     Literacy;
       ``(iii) 3 individuals selected by the National Research 
     Council of the National Academy of Sciences; and
       ``(iv) 3 individuals selected by the National Institute of 
     Child Health and Human Development.
       ``(B) Experts.--The panel shall include experts who are 
     competent, by virtue of their training, expertise, or 
     experience, to evaluate applications under this section, and 
     experts who provide professional development to teachers of 
     reading to children and adults, and experts who provide 
     professional development to other instructional staff, based 
     on scientifically based reading research.
       ``(C) Recommendations.--The panel shall recommend grant 
     applications from States under this section to the Secretary 
     for funding or for disapproval.
       ``(d) Reading and Literacy Partnerships.--
       ``(1) In general.--In order for a State to receive a grant 
     under section 1203, the Governor of the State, in 
     consultation with the State educational agency, shall 
     establish a reading and literacy partnership.
       ``(2) Required participants.--The reading and literacy 
     partnership shall include the following participants:
       ``(A) The Governor of the State.
       ``(B) The chief State school officer.
       ``(C) The chairman and the ranking member of each committee 
     of the State legislature that is responsible for education 
     policy.
       ``(D) A representative, selected jointly by the Governor 
     and the chief State school officer, of at least one local 
     educational agency that is eligible to receive a subgrant 
     under section 1203.
       ``(E) A representative, selected jointly by the Governor 
     and the chief State school officer, of a community-based 
     organization working with children to improve their reading 
     skills, particularly a community-based organization using 
     tutors and scientifically based reading research.
       ``(F) State directors of appropriate Federal or State 
     programs with a strong reading component.
       ``(G) A parent of a public or private school student or a 
     parent who educates their child or children in their home, 
     selected jointly by the Governor and the chief State school 
     officer.
       ``(H) A teacher, who may be a special education teacher, 
     who successfully teaches reading and an instructional staff 
     member, selected jointly by the Governor and the chief State 
     school officer.
       ``(I) A family literacy service provider selected jointly 
     by the Governor and the chief state school officer.
       ``(3) Optional participants.--The reading and literacy 
     partnership may include additional participants, who shall be 
     selected jointly by the Governor and the chief State school 
     officer, and who may include a representative of--
       ``(A) an institution of higher education operating a 
     program of teacher preparation based on scientifically based 
     reading research in the State;
       ``(B) a local educational agency;
       ``(C) a private nonprofit or for-profit eligible 
     professional development provider providing instruction based 
     on scientifically based reading research;
       ``(D) an adult education provider;
       ``(E) a volunteer organization that is involved in reading 
     programs; or
       ``(F) a school library or a public library that offers 
     reading or literacy programs for children or families.

     ``SEC. 1205. DISCRETIONARY GRANTS TO STATES.

       ``(a) In General.--In the case of a State that, in 
     accordance with sections 1203 and 1204, has received approval 
     of an application for a 5-year formula grant, the Secretary 
     may make additional 2-year discretionary grants to the State 
     for the use specified in (d). For each fiscal year, the funds 
     provided under the discretionary grant shall equal the 
     allotment determined for the State under subsection (b).
       ``(b) Determination of Amount of Allotments.--From the 
     total amount made available under section 1002(b)(1) to carry 
     out this subpart for a fiscal year and not reserved under 
     paragraph (1), the Secretary, upon the recommendation of the 
     peer review panel convened under section 1204(c)(2), shall 
     allot 20 percent under this section among the States 
     described in subsection (a)--
       ``(1) for fiscal years 2002 and 2003, based upon a 
     determination of such States' relative likelihood of 
     effectively implementing a program under this subpart; and
       ``(2) for fiscal year 2004 and subsequent fiscal years, 
     based upon such States' applications under subsection (c).
       ``(c) State Discretionary Grant Applications.--
       ``(1) In general.--A State that desires to receive a grant 
     under this section for a grant period that includes any 
     fiscal year after fiscal year 2003 shall submit the 
     information described in paragraph (3) to the Secretary at 
     such time and in such form as the Secretary may require.
       ``(2) Peer review.--The peer review panel convened under 
     section 1204(c)(2) shall review the information submitted 
     under this subsection. The panel shall recommend such 
     applications to the Secretary for funding or for disapproval.
       ``(3) Information.--The information described in this 
     paragraph is the following:
       ``(A) An assurance that the State will award competitive 
     subgrants to local educational agencies consistent with 
     subsection (d)(4).
       ``(B) An assurance that the State will ensure that local 
     educational agencies that receive a subgrant under subsection 
     (d) use the funds provided under the subgrant in accordance 
     with subsection (d)(5).
       ``(C) Evidence that the State has increased significantly 
     the percentage of students reading at grade level or above.
       ``(D) Evidence that the State has been successful in 
     increasing the percentage of students in ethnic, racial, and 
     low-income populations who are reading at grade level or 
     above.
       ``(E) Any additional evidence that demonstrates success in 
     the implementation of this subpart.
       ``(d) Subgrants to Local Educational Agencies.--
       ``(1) In general.--The Secretary may make a grant to a 
     State under this section only if the State agrees to expend 
     100 percent of the amount of the funds provided under the 
     grant for the purpose of making competitive subgrants in 
     accordance with this subsection to local educational 
     agencies.
       ``(2) Notice.--A State receiving a grant under this section 
     shall provide notice to all local educational agencies in the 
     State of the availability of competitive subgrants under this 
     subsection and of the requirements for applying for the 
     subgrants.
       ``(3) Application.--To be eligible to receive a subgrant 
     under this subsection, a local educational agency shall 
     submit an application to the State at such time, in such 
     manner, and containing such information as the State may 
     reasonably require.
       ``(4) Distribution.--
       ``(A) In general.--A State shall distribute subgrants under 
     this section through a competitive process based on relative 
     need and the evidence described in this paragraph.
       ``(B) Evidence used in all years.--For all fiscal years, a 
     State shall distribute subgrants under this section based on 
     evidence that a local educational agency--
       ``(i) satisfies the requirements of section 1203(c)(4);
       ``(ii) will carry out its obligations under this subpart, 
     particularly paragraph (5); and
       ``(iii) will work with other local educational agencies in 
     the State that have not received a subgrant under this 
     subsection to assist such non-receiving agencies in 
     increasing the reading achievement of students.
       ``(C) Evidence used in fiscal years after 2003.--For fiscal 
     year 2004 and subsequent fiscal years, a State shall 
     distribute subgrants under this section based on the evidence 
     described in subparagraph (B) and, in addition, evidence that 
     a local educational agency--
       ``(i) has significantly increased the percentage of all 
     students reading at grade level or above;
       ``(ii) has significantly increased the percentage of 
     students in ethnic, racial, and low-income populations who 
     are reading at grade level or above; and
       ``(iii) has demonstrated success in the implementation of 
     this subpart.
       ``(5) Local uses of funds.--A local educational agency that 
     receives a subgrant under this subsection--
       ``(A) shall use the funds provided under the subgrant to 
     carry out the activities described in section 1203(c)(7)(A); 
     and
       ``(B) may use such funds to carry out the activities 
     described in section 1203(c)(7)(B).
       ``(e) Definition.--For purposes of this section, the term 
     `State' means each of the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico.

     ``SEC. 1206. EXTERNAL EVALUATION.

       ``(a) In General.--From funds reserved under section 
     1203(b)(1)(C), 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 section 1205 results in

[[Page 8899]]

     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.

     ``SEC. 1207. NATIONAL ACTIVITIES.

       ``From funds reserved under section 1203(b)(1)(D), the 
     Secretary may provide technical assistance in achieving the 
     purposes of this subpart to States, local educational 
     agencies, and schools requesting such assistance.

     ``SEC. 1208. INFORMATION DISSEMINATION.

       ``(a) In General.--From funds reserved under section 
     1203(b)(1)(E), the National Institute for Literacy, in 
     collaboration with the Secretary of Education, the Secretary 
     of Health and Human Services, and the Director of the 
     National Institute for Child Health and Human Development--
       ``(1) shall disseminate information on scientifically based 
     reading research pertaining to children, youth, and adults;
       ``(2) shall identify and disseminate information about 
     schools, local educational agencies, and States that 
     effectively developed and implemented classroom reading 
     programs that meet the requirements of this subpart, 
     including those effective States, local educational agencies, 
     and schools identified through the evaluation and peer review 
     provisions of this subpart; and
       ``(3) shall support the continued identification and 
     dissemination of information on reading programs that contain 
     the essential components of reading instruction as supported 
     by scientifically based reading research, that can lead to 
     improved reading outcomes for children, youth, and adults.
       ``(b) Dissemination.--
       ``(1) In general.--At a minimum, the National Institute for 
     Literacy shall disseminate such information to--
       ``(A) recipients of Federal financial assistance under part 
     A of this title, part A of title III, the Head Start Act, the 
     Individuals with Disabilities Education Act, and the Adult 
     Education and Family Literacy Act; and
       ``(B) each Bureau funded school (as defined in section 
     1141(3) of the Education Amendments of 1978).
       ``(2) Use of existing networks.--In carrying out this 
     section, the National Institute for Literacy shall, to the 
     extent practicable, utilize existing information and 
     dissemination networks developed and maintained through other 
     public and private entities.

     ``SEC. 1209. DEFINITIONS.

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

                    ``Subpart 2--Early Reading First

     ``SEC. 1221. PURPOSES.

       ``The purposes of this subpart are as follows:
       ``(1) To improve prereading skills in children aged 3 
     through 5, particularly children from low-income families, in 
     high-quality oral language and literature-rich environments.
       ``(2) To provide professional development for early 
     childhood teachers that prepares them with scientific 
     research-based knowledge of early reading development to 
     assist in developing the children's--
       ``(A) automatic recognition of the letters of the alphabet;
       ``(B) understanding that spoken words are made up of small 
     segments of speech sounds and that certain letters regularly 
     represent such speech sounds;
       ``(C) spoken vocabulary and oral comprehension abilities; 
     and
       ``(D) understanding of semiotic concepts.
       ``(3) To use scientific research-based screening tools or 
     other appropriate measures to determine whether preschool 
     children are developing the skills identified in this 
     section.
       ``(4) To identify and provide scientific research-based 
     prereading language and literacy activities and instructional 
     materials that can be used to assist in the development of 
     prereading skills in children.
       ``(5) To integrate such scientific research-based 
     instructional materials and literacy activities with existing 
     programs of preschools, child care agencies, and Head Start 
     centers, and with family literacy services.

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

       ``(a) Program Authorized.--From amounts appropriated under 
     section 1002(b)(2), the Secretary shall make awards, on a 
     competitive basis and for periods of not more than 5 years, 
     to eligible applicants to enable such applicants to carry out 
     activities that are consistent with the purposes of this 
     subpart.
       ``(b) Definition of Eligible Applicant.--In this subpart, 
     the term `eligible applicant' means--
       ``(1) a local educational agency;
       ``(2) one or more public or private organizations, acting 
     on behalf of one or more programs that serve children aged 3 
     through 5 (such as a program at a child care agency or Head 
     Start center or a family literacy program), which 
     organizations shall be located in a community served by a 
     local educational agency; or
       ``(3) one or more local educational agencies in 
     collaboration with one or more organizations described in 
     paragraph (2).
       ``(c) Applications.--An eligible applicant that desires to 
     receive a grant under this subpart shall submit an 
     application to the Secretary, which shall include a 
     description of--
       ``(1) the programs to be served by the proposed project, 
     including general demographic and socioeconomic information 
     on the communities in which the proposed project will be 
     administered;
       ``(2) how the proposed project will enhance the school 
     readiness of children aged 3 through 5 in high-quality oral 
     language and literature-rich environments;
       ``(3) how the proposed project will provide early childhood 
     teachers with scientific research-based knowledge of early 
     reading development and assist such teachers in developing 
     the children's prereading skills;
       ``(4) how the proposed project will provide services and 
     utilize instructional materials that are based on 
     scientifically based reading research on early language 
     acquisition, prereading activities, and the development of 
     spoken vocabulary skills;
       ``(5) how the proposed project will integrate such 
     instructional materials and literacy activities with existing 
     preschool programs and family literacy services;
       ``(6) how the proposed project will help staff in the 
     programs to meet the diverse needs of children in the 
     community, including children with limited English 
     proficiency and children with learning disabilities;
       ``(7) how the proposed project will help children, 
     particularly children experiencing difficulty with spoken 
     language, prereading, and early reading skills, to make the 
     transition from preschool to formal classroom instruction in 
     school;

[[Page 8900]]

       ``(8) how the activities conducted under this subpart will 
     be coordinated with the eligible applicant's activities under 
     subpart 1, if the applicant has received a subgrant under 
     such subpart, at the kindergarten through third grade levels;
       ``(9) how the proposed project will evaluate the success of 
     the activities supported under this subpart in enhancing the 
     early language and reading development of children served by 
     the project; and
       ``(10) such other information as the Secretary may require.
       ``(d) Approval of Local Applications.--The Secretary shall 
     select applicants for funding under this subpart based on the 
     quality of the applications and the recommendations of the 
     peer review panel convened under section 1204(c)(2).
       ``(e) Local Uses of Funds.--
       ``(1) Required 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 children aged 3 through 5 with high-quality 
     oral language and literature-rich environments in which to 
     acquire prereading skills.
       ``(B) Providing professional development for early 
     childhood teachers that prepares them with scientific 
     research-based knowledge of early reading development to 
     assist in developing the children's--
       ``(i) automatic recognition of the letters of the alphabet;
       ``(ii) understanding that spoken words are made up of small 
     segments of speech sounds and that certain letters regularly 
     represent such speech sounds;
       ``(iii) spoken vocabulary and oral comprehension abilities; 
     and
       ``(iv) understanding of semiotic concepts.
       ``(C) Identifying and providing scientific research-based 
     prereading language and literacy activities and instructional 
     materials for use in developing the children's--
       ``(i) automatic recognition of the letters of the alphabet;
       ``(ii) understanding that spoken words are made up of small 
     segments of speech sounds and that certain letters regularly 
     represent such speech sounds;
       ``(iii) spoken vocabulary and oral comprehension abilities; 
     and
       ``(iv) understanding of semiotic concepts.
       ``(2) Optional activities.--An eligible applicant that 
     receives a grant under this subpart may use the funds 
     provided under the grant to carry out the following 
     activities:
       ``(A) Using scientific research-based screening tools or 
     other appropriate measures to determine whether preschool 
     children are developing the skills identified in this 
     subsection.
       ``(B) Integrating such instructional materials and literacy 
     activities with programs of existing child care agencies, 
     preschools, and Head Start centers, and with family literacy 
     services.
       ``(f) Award Amounts.--The Secretary may establish a maximum 
     award amount, or ranges of award amounts, for grants under 
     this subpart.

     ``SEC. 1223. FEDERAL ADMINISTRATION.

       ``The Secretary shall consult with the Secretary of Health 
     and Human Services in order to coordinate the activities 
     undertaken under this subpart with programs under the Head 
     Start Act (42 U.S.C. 9831 et seq.).

     ``SEC. 1224. REPORTING REQUIREMENTS.

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

     ``SEC. 1225. EVALUATION.

       ``From the total amount made available under section 
     1002(b)(2) for the period beginning October 1, 2002, and 
     ending September 30, 2006, the Secretary shall reserve not 
     more than $1,000,000 to conduct an independent evaluation of 
     the effectiveness of this subpart.

     ``SEC. 1226. ADDITIONAL RESEARCH.

       ``From the amount made available under section 1002(b)(2) 
     for each of the fiscal years 2002 through 2006, the Secretary 
     shall reserve not more than $3,000,000 to conduct, in 
     consultation with the National Institute for Child Health and 
     Human Development, the National Institute for Literacy, and 
     the Department of Health and Human Services, additional 
     research on language and literacy development for children 
     aged 3 through 5.''.

     SEC. 112. AMENDMENTS TO EVEN START.

       Part B of title I (20 U.S.C. 6361 et seq.), as amended by 
     section 111, is further amended--
       (1) by inserting before section 1231 (as so redesignated by 
     section 111) the following:

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

       (2) in each of sections 1231 through 1242 (as so 
     redesignated by section 111)--
       (A) by striking ``this part'' each place such term appears 
     and inserting ``this subpart''; and
       (B) by striking ``1002(b)'' each place such term appears 
     and inserting ``1002(b)(3)'';
       (3) in section 1231(4), by striking ``2252)'' and inserting 
     ``1209)'';
       (4) in section 1232--
       (A) in subsection (b)--
       (i) in paragraph (1)(A), by striking ``1209;'' and 
     inserting ``1239;''; and
       (ii) in paragraph (2), by striking ``1211(b)'' each place 
     such term appears and inserting ``1241(b)''; and
       (B) in subsection (c)--
       (i) by amending paragraph (2)(C) to read as follows:
       ``(C) Coordination with subpart 1.--The consortium shall 
     coordinate its activities with the activities of the reading 
     and literacy partnership for the State established under 
     section 1204(d), if the State receives a grant under section 
     1203.''; and
       (ii) in paragraph (3), by striking ``2252).'' and inserting 
     ``1209).'';
       (5) in section 1233--
       (A) by striking ``1202(d)(1)'' each place such term appears 
     and inserting ``1232(d)(1)''; and
       (B) by striking ``1210.'' and inserting ``1240.'';
       (6) in section 1234--
       (A) in subsection (b)--
       (i) in paragraph (1)(A), by moving the margins of clauses 
     (v) and (vi) 2 ems to the right; and
       (ii) in paragraph (3), by striking ``1202(a)(1)(C)'' and 
     inserting ``1232(a)(1)(C)''; and
       (B) in subsection (c)--
       (i) in paragraph (1)--

       (I) by striking ``1203(a),'' and inserting ``1233(a),''; 
     and
       (II) by striking ``1203(b)'' and inserting ``1233(b)''; and

       (ii) in paragraph (2), by striking ``1210.'' and inserting 
     ``1240.'';
       (7) in section 1235--
       (A) in paragraph (10), by striking ``2252)'' and inserting 
     ``1209)'';
       (B) in paragraph (12), by striking ``2252),'' and inserting 
     ``1209),''; and
       (C) in paragraph (15), by striking ``program.'' and 
     inserting ``program to be used for program improvement.'';
       (8) in section 1237--
       (A) in subsection (c)(1)--
       (i) in subparagraph (B), by striking ``1205;'' and 
     inserting ``1235;''; and
       (ii) in subparagraph (F), by striking ``14306;'' and 
     inserting ``8306;''; and
       (B) in subsection (d), by striking ``14302.'' and inserting 
     ``8302.'';
       (9) in section 1238--
       (A) in subsection (a)(1)--
       (i) in subparagraph (A)(ii), by striking ``1205;'' and 
     inserting ``1235;''; and
       (ii) in subparagraph (F), by striking ``1204(b);'' and 
     inserting ``1234(b);''; and
       (B) in subsection (b)--
       (i) in paragraph (3)--

       (I) by striking ``1207(c)(1)(A)'' and inserting 
     ``1237(c)(1)(A)''; and
       (II) by striking ``1210.'' and inserting ``1240.'';

       (ii) in paragraph (4), by striking ``1210,'' and inserting 
     ``1240,''; and
       (iii) in paragraph (5)(B), by striking ``1204(b).'' and 
     inserting ``1234(b).'';
       (10) in section 1239--
       (A) by striking ``1202(b)(1),'' and inserting 
     ``1232(b)(1),''; and
       (B) by striking ``1205(10)'' and inserting ``1235(10)''; 
     and
       (11) in section 1241--
       (A) in subsection (b)(1)--
       (i) by striking ``1202(b)(2),'' and inserting 
     ``1232(b)(2),''; and
       (ii) by striking ``2252);'' and inserting ``1209);''; and
       (B) in subsection (c), by striking ``2258,'' and inserting 
     ``1208,''.

     SEC. 113. INEXPENSIVE BOOK DISTRIBUTION PROGRAM.

       (a) Transfer and Redesignation.--Part E of title X (20 
     U.S.C. 8131) is transferred and redesignated as subpart 4 of 
     part B of title I. Section 10501 is redesignated as section 
     1251.
       (b) Purpose.--Section 1251 (as so redesignated) is 
     amended--
       (1) by striking subsection (e);
       (2) by redesignating subsection (d) as subsection (g);
       (3) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively; and
       (4) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Purpose.--The purpose of this program is to establish 
     and implement a model partnership between a governmental 
     entity and a private entity, to help prepare young children 
     for reading, and motivate older children to read, through the 
     distribution of inexpensive books. Local reading motivation 
     programs assisted under this section shall use such 
     assistance to provide books, training for volunteers, 
     motivational activities, and other essential literacy 
     resources, and shall assign the highest priority to serving 
     the youngest and neediest children in the United States.''.
       (c) Authorization.--Section 1251(b) (as so redesignated) is 
     amended by striking ``books to students, that motivate 
     children to read.'' and inserting ``books to young and 
     school-aged children that motivate them to read.''.
       (d) Requirements of Contract.--Section 1251(c) (as so 
     redesignated) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``subsection (a)'' and inserting ``subsection (b)''; and
       (2) in paragraph (4), by inserting ``training and'' before 
     ``technical''.
       (e) Special Rules for Certain Subcontractors; Multi-year 
     Contracts.--Section 1251 (as so redesignated) is amended by 
     inserting after subsection (d) the following:
       ``(e) Special Rules for Certain Subcontractors.--
       ``(1) Funds from other federal sources.--Subcontractors 
     operating programs under this section in low-income 
     communities with a substantial number or percentage of 
     children with special needs, as described in subsection 
     (c)(3), may use funds from other Federal sources to pay the 
     non-Federal share of the cost of the program, if those funds 
     do not comprise more than 50 percent of the non-Federal share 
     of the

[[Page 8901]]

     funds used for the cost of acquiring and distributing books.
       ``(2) Waiver Authority.--Notwithstanding subsection (c), 
     the contractor may waive, in whole or in part, the 
     requirement in subsection (c)(1) for a subcontractor, if the 
     subcontractor demonstrates that it would otherwise not be 
     able to participate in the program, and enters into an 
     agreement with the contractor with respect to the amount of 
     the non-Federal share to which the waiver will apply. In a 
     case in which such a waiver is granted, the requirement in 
     subsection (c)(2) shall not apply.
       ``(f) Multi-year Contracts.--The contractor may enter into 
     a multi-year subcontract under this section, if--
       ``(1) the contractor believes that such subcontract will 
     provide the subcontractor with additional leverage in seeking 
     local commitments; and
       ``(2) the subcontract does not undermine the finances of 
     the national program.''.
       (f) Continuation of Awards.--Notwithstanding any other 
     provision of this Act, any person or agency that was awarded 
     a contract under part E of title X (20 U.S.C. 8131) prior to 
     the date of the enactment of this Act shall continue to 
     receive funds in accordance with the terms of such contract 
     until the date on which the contract period terminates under 
     such terms.

                PART C--EDUCATION OF MIGRATORY CHILDREN

     SEC. 121. STATE ALLOCATIONS.

       Section 1303 (20 U.S.C. 6393) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) State Allocations.--
       ``(1) Fiscal year 2002.--For fiscal year 2002, each State 
     (other than the Commonwealth of Puerto Rico) is entitled to 
     receive under this part an amount equal to--
       ``(A) the sum of the estimated number of migratory children 
     aged three through 21 who reside in the State full time and 
     the full-time equivalent of the estimated number of migratory 
     children aged three through 21 who reside in the State part 
     time, as determined in accordance with subsection (d); 
     multiplied by
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     paragraph shall not be less than 32 percent, nor more than 48 
     percent, of the average expenditure per pupil in the United 
     States.
       ``(2) Subsequent years.--
       ``(A) Base amount.--
       ``(i) In general.--Except as provided in subsection (b) and 
     clause (ii), each State (other than the Commonwealth of 
     Puerto Rico) is entitled to receive under this part, for 
     fiscal year 2003 and succeeding fiscal years, an amount equal 
     to--

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

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

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

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

       ``(I) the number of identified eligible migratory children, 
     aged 3 through 21, residing in the State during the previous 
     year; and

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

       ``(ii) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     clause may not be less than 32 percent, or more than 48 
     percent, of the average per-pupil expenditure in the United 
     States.'';
       (2) by amending subsection (b) to read as follows:
       ``(b) Allocation to Puerto Rico.--
       ``(1) In general.--For each fiscal year, the grant which 
     the Commonwealth of Puerto Rico shall be eligible to receive 
     under this part shall be the amount determined by multiplying 
     the number of children counted under subsection (a)(1)(A) for 
     the Commonwealth of Puerto Rico by the product of--
       ``(A) the percentage which the average per pupil 
     expenditure in the Commonwealth of Puerto Rico is of the 
     lowest average per pupil expenditure of any of the 50 States; 
     and
       ``(B) 32 percent of the average per pupil expenditure in 
     the United States.
       ``(2) Minimum percentage.--The percentage in paragraph 
     (1)(A) shall not be less than--
       ``(A) for fiscal year 2002, 77.5 percent;
       ``(B) for fiscal year 2003, 80.0 percent;
       ``(C) for fiscal year 2004, 82.5 percent; and
       ``(D) for fiscal year 2005 and succeeding fiscal years, 
     85.0 percent.
       ``(3) Limitation.--If the application of paragraph (2) 
     would result in any of the 50 States or the District of 
     Columbia receiving less under this part than it received 
     under this part for the preceding fiscal year, the percentage 
     in paragraph (1) shall be the greater of the percentage in 
     paragraph (1)(A) or the percentage used for the preceding 
     fiscal year.''; and
       (3) by striking subsection (d) and redesignating subsection 
     (e) as subsection (d).

     SEC. 122. STATE APPLICATIONS; SERVICES.

       (a) Program Information.--Section 1304(b) (20 U.S.C. 
     6394(b)) is amended--
       (1) in paragraph (1), by striking ``addressed through'' and 
     all that follows through the semicolon at the end and 
     inserting the following:
     ``addressed through--
       ``(A) the full range of services that are available for 
     migratory children from appropriate local, State, and Federal 
     educational programs;
       ``(B) joint planning among local, State, and Federal 
     educational programs serving migrant children, including 
     programs under part A of title III;
       ``(C) the integration of services available under this part 
     with services provided by those other programs; and
       ``(D) measurable program goals and outcomes;''; and
       (2) in paragraph (5), by striking ``the requirements of 
     paragraph (1);'' and inserting ``the numbers and needs of 
     migratory children, the requirements of subsection (d), and 
     the availability of funds from other Federal, State, and 
     local programs;''.
       (b) Assurances.--Section 1304(c) (20 U.S.C. 6394(c)) is 
     amended--
       (1) in paragraph (1), by striking ``1306(b)(1);'' and 
     inserting ``1306(a);'';
       (2) in paragraph (2), by striking ``part F;'' and inserting 
     ``part H;''
       (3) in paragraph (3)--
       (A) by striking ``appropriate'';
       (B) by striking ``out, to the extent feasible,'' and 
     inserting ``out''; and
       (C) by striking ``1118;'' and inserting ``1118, unless 
     extraordinary circumstances make implementation consistent 
     with such section impractical;''; and
       (4) in paragraph (7), by striking ``section 1303(e)'' and 
     inserting ``paragraphs (1)(A) and (2)(B)(i) of section 
     1303(a)''.

     SEC. 123. AUTHORIZED ACTIVITIES.

       Section 1306 (20 U.S.C. 6396) is amended to read as 
     follows:

     ``SEC. 1306. AUTHORIZED ACTIVITIES.

       ``(a) In General.--
       ``(1) Flexibility.--Each State educational agency, through 
     its local educational agencies, shall have the flexibility to 
     determine the activities to be provided with funds made 
     available under this part, except that such funds shall first 
     be used to meet the identified needs of migratory children 
     that result from their migratory lifestyle, and to permit 
     these children to participate effectively in school.
       ``(2) Unaddressed needs.--Funds provided under this part 
     shall be used to address the needs of migratory children that 
     are not addressed by services available from other Federal or 
     non-Federal programs, except that migratory children who are 
     eligible to receive services under part A of this title may 
     receive those services through funds provided under that 
     part, or through funds under this part that remain after the 
     agency addresses the needs described in paragraph (1).
       ``(b) Construction.--Nothing in this part shall be 
     construed to prohibit a local educational agency from serving 
     migratory children simultaneously with students with similar 
     educational needs in the same educational settings, where 
     appropriate.
       ``(c) Special Rule.--Notwithstanding section 1114, a school 
     that receives funds under this part shall continue to address 
     the identified needs described in subsection (a)(1).''.

     SEC. 124. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

       (a) Duration.--Section 1308(a)(2) (20 U.S.C. 6398(a)(2)) is 
     amended by striking ``subpart'' and inserting ``subsection''.
       (b) Student Records.--Section 1308(b) (20 U.S.C. 6398(b)) 
     is amended to read as follows:
       ``(b) Student Records.--
       ``(1) Assistance.--The Secretary shall assist States in 
     developing effective methods for the transfer of student 
     records and in determining the number of migratory children 
     in each State. The Secretary, in consultation with the 
     States, shall determine the minimum data elements that each 
     State receiving funds under this part shall collect and 
     maintain. The Secretary shall assist States to implement a 
     system of linking their student record transfer systems for 
     the purpose of electronic records maintenance and transfer 
     for migrant students.
       ``(2) No cost for certain transfers.--A State educational 
     agency or local educational agency receiving assistance under 
     this part shall make student records available to another 
     State or local educational agency that requests the records 
     at no cost to the requesting agency, if the request is made 
     in order to meet the needs of a migratory child.''.
       (c) Availability of Funds.--Section 1308(c) (20 U.S.C. 
     6398(c)) is amended by striking ``$6,000,000'' and inserting 
     ``$10,000,000''.
       (d) Incentive Grants.--Section 1308(d) (20 U.S.C. 6398(d)) 
     is amended to read as follows:
       ``(d) Incentive Grants.--From the amounts made available to 
     carry out this section for any fiscal year, the Secretary may 
     reserve not more than $3,000,000 to award grants of not more 
     than $250,000 on a competitive basis to State educational 
     agencies that propose a consortium

[[Page 8902]]

     arrangement with another State or other appropriate entity 
     that the Secretary determines, pursuant to criteria that the 
     Secretary shall establish, will improve the delivery of 
     services to migratory children whose education is 
     interrupted.''.

                 PART D--NEGLECTED OR DELINQUENT YOUTH

     SEC. 131. NEGLECTED OR DELINQUENT YOUTH.

       The heading for part D of title I is amended to read as 
     follows:

    ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR NEGLECTED OR 
                    DELINQUENT CHILDREN AND YOUTH''.

     SEC. 132. FINDINGS.

       Section 1401(a) (20 U.S.C. 6421(a)) is amended by striking 
     paragraphs (6) through (9) and inserting the following:
       ``(6) Youth returning from correctional facilities need to 
     be involved in programs that provide them with high-level 
     skills and other support to help them stay in school and 
     complete their education.
       ``(7) Pregnant and parenting teenagers are a high-at-risk 
     group for dropping out of school and should be targeted by 
     dropout prevention programs.''.

     SEC. 133. ALLOCATION OF FUNDS.

       Section 1412(b) (20 U.S.C. 6432(b)) is amended to read as 
     follows:
       ``(b) Subgrants to State Agencies in Puerto Rico.--
       ``(1) In general.--For each fiscal year, the amount of the 
     subgrant which a State agency in the Commonwealth of Puerto 
     Rico shall be eligible to receive under this part shall be 
     the amount determined by multiplying the number of children 
     counted under subparagraph (a)(1)(A) for the Commonwealth of 
     Puerto Rico by the product of--
       ``(A) the percentage which the average per-pupil 
     expenditure in the Commonwealth of Puerto Rico is of the 
     lowest average per-pupil expenditure of any of the 50 States; 
     and
       ``(B) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(2) Minimum percentage.--The percentage in paragraph 
     (1)(A) shall not be less than--
       ``(A) for fiscal year 2002, 77.5 percent;
       ``(B) for fiscal year 2003, 80.0 percent;
       ``(C) for fiscal year 2004, 82.5 percent; and
       ``(D) for fiscal year 2005 and succeeding fiscal years, 
     85.0 percent.
       ``(3) Limitation.--If the application of paragraph (2) 
     would result in any of the 50 States or the District of 
     Columbia receiving less under this part than it received 
     under this part for the preceding fiscal year, the percentage 
     in paragraph (1) shall be the greater of the percentage in 
     paragraph (1)(A) or the percentage used for the preceding 
     fiscal year.''.

     SEC. 134. STATE PLAN AND STATE AGENCY APPLICATIONS.

       Section 1414 (20 U.S.C. 6434) is amended to read as 
     follows:

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

       ``(a) State Plan.--
       ``(1) In general.--Each State educational agency that 
     desires to receive a grant under this part shall submit, for 
     approval by the Secretary, a plan for meeting the educational 
     needs of neglected and delinquent youth, for assisting in 
     their transition from institutions to locally operated 
     programs, and which is integrated with other programs under 
     this Act or other Acts, as appropriate, consistent with 
     section 8306.
       ``(2) Contents.--Each such State plan shall--
       ``(A) describe the program goals, objectives, and 
     performance measures established by the State that will be 
     used to assess the effectiveness of the program in improving 
     academic and vocational and technical skills of children in 
     the program;
       ``(B) provide that, to the extent feasible, such children 
     will have the same opportunities to learn as such children 
     would have if such children were in the schools of local 
     educational agencies in the State; and
       ``(C) contain assurances that the State educational agency 
     will--
       ``(i) ensure that programs assisted under this part will be 
     carried out in accordance with the State plan described in 
     this subsection;
       ``(ii) carry out the evaluation requirements of section 
     1416;
       ``(iii) ensure that the State agencies receiving subgrants 
     under this subpart comply with all applicable statutory and 
     regulatory requirements; and
       ``(iv) provide such other information as the Secretary may 
     reasonably require.
       ``(3) Duration of the plan.--Each such State plan shall--
       ``(A) remain in effect for the duration of the State's 
     participation under this part; and
       ``(B) be periodically reviewed and revised by the State, as 
     necessary, to reflect changes in the State's strategies and 
     programs under this part.
       ``(b) Secretarial Approval and Peer Review.--
       ``(1) Secretarial approval.--The Secretary shall approve 
     each State plan that meets the requirements of this part.
       ``(2) Peer review.--The Secretary may review any State plan 
     with the assistance and advice of individuals with relevant 
     expertise.
       ``(c) State Agency Applications.--Any State agency that 
     desires to receive funds to carry out a program under this 
     part shall submit an application to the State educational 
     agency that--
       ``(1) describes the procedures to be used, consistent with 
     the State plan under section 1111, to assess the educational 
     needs of the children to be served;
       ``(2) provides assurances that in making services available 
     to youth in adult correctional facilities, priority will be 
     given to such youth who are likely to complete incarceration 
     within a 2-year period;
       ``(3) describes the program, including a budget for the 
     first year of the program, with annual updates to be provided 
     to the State educational agency;
       ``(4) describes how the program will meet the goals and 
     objectives of the State plan under this subpart;
       ``(5) describes how the State agency will consult with 
     experts and provide the necessary training for appropriate 
     staff, to ensure that the planning and operation of 
     institution-wide projects under section 1416 are of high 
     quality;
       ``(6) describes how the agency will carry out the 
     evaluation requirements of section 8651 and how the results 
     of the most recent evaluation are used to plan and improve 
     the program;
       ``(7) includes data showing that the agency has maintained 
     fiscal effort required of a local educational agency, in 
     accordance with section 8501;
       ``(8) describes how the programs will be coordinated with 
     other appropriate State and Federal programs, such as job 
     training programs, vocational and technical education 
     programs, State and local dropout prevention programs, and 
     special education programs;
       ``(9) describes how States will encourage correctional 
     facilities receiving funds under this subpart to coordinate 
     with local educational agencies or alternative education 
     programs attended by incarcerated youth prior to their 
     incarceration to ensure that student assessments and 
     appropriate academic records are shared jointly between the 
     correctional facility and the local educational agency or 
     alternative education program;
       ``(10) describes how appropriate professional development 
     will be provided to teachers and other staff;
       ``(11) designates an individual in each affected 
     institution to be responsible for issues relating to the 
     transition of children and youth from the institution to 
     locally operated programs;
       ``(12) describes how the agency will endeavor to coordinate 
     with businesses for training and mentoring for participating 
     youth;
       ``(13) provides assurances that the agency will assist in 
     locating alternative programs through which students can 
     continue their education if students are not returning to 
     school after leaving the correctional facility;
       ``(14) provides assurances that the agency will work with 
     parents to secure parents' assistance in improving the 
     educational achievement of their children and preventing 
     their children's further involvement in delinquent 
     activities;
       ``(15) provides assurances that the agency works with 
     special education youth in order to meet an existing 
     individualized education program and an assurance that the 
     agency will notify the youth's local school if such youth--
       ``(A) is identified as in need of special education 
     services while the youth is in the facility; and
       ``(B) intends to return to the local school;
       ``(16) provides assurances that the agency will work with 
     youth who dropped out of school before entering the facility 
     to encourage the youth to reenter school once the term of 
     incarceration has been completed or provide the youth with 
     the skills necessary to gain employment, continue the 
     education of the youth, or achieve a secondary school diploma 
     or the recognized equivalent if the youth does not intend to 
     return to school;
       ``(17) provides assurances that teachers and other 
     qualified staff are also trained to work with children with 
     disabilities and other students with special needs, taking 
     into consideration the unique needs of such students;
       ``(18) describes any additional services to be provided to 
     youth, such as career counseling, distance learning, and 
     assistance in securing student loans and grants; and
       ``(19) provides assurances that the program under this 
     subpart will be coordinated with any programs operated under 
     the Juvenile Justice and Delinquency Prevention Act of 1974 
     (42 U.S.C. 5601 et seq.) or other comparable programs, if 
     applicable.''.

     SEC. 135. USE OF FUNDS.

       Section 1415(a) (20 U.S.C. 6435(a)) is amended--
       (1) in paragraph (1)(B), by inserting ``, vocational and 
     technical training'' after ``secondary school completion'';
       (2) in paragraph (2)(B)--
       (A) in clause (i), by inserting ``and'' after the 
     semicolon;
       (B) in clause (ii), by striking ``; and'' and inserting a 
     semicolon; and
       (C) by striking clause (iii);
       (3) in paragraph (2)(C), by striking ``part F of this 
     title'' and inserting ``part H''; and
       (4) in paragraph (2)(D), by striking ``section 14701'' and 
     inserting ``section 8651''.

     SEC. 136. TRANSITION SERVICES.

       Section 1418(a) (20 U.S.C. 6438(a)) is amended by striking 
     ``10 percent'' and inserting ``15 percent''.

     SEC. 137. PURPOSE.

       Section 1421(3) (20 U.S.C. 6451(3)) is amended to read as 
     follows:
       ``(3) operate programs in local schools for youth returning 
     from correctional facilities and programs which may also 
     serve youth at risk of dropping out of school.''.

     SEC. 138. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

       Section 1422 (20 U.S.C. 6452) is amended--
       (1) in subsection (a), by striking ``retained'';
       (2) by amending subsection (b) to read as follows:

[[Page 8903]]

       ``(b) Special Rule.--A local educational agency which 
     includes a correctional facility that operates a school is 
     not required to operate a program of support for children 
     returning from such school to a school not operated by a 
     correctional agency but served by such local educational 
     agency if more than 30 percent of the youth attending the 
     school operated by the correctional facility will reside 
     outside the boundaries of the local educational agency after 
     leaving such facility.''; and
       (3) by adding at the end the following:
       ``(d) Transitional and Academic Services.--Transitional and 
     supportive programs operated in local educational agencies 
     under this subpart shall be designed primarily to meet the 
     transitional and academic needs of students returning to 
     local educational agencies or alternative education programs 
     from correctional facilities. Services to students at risk of 
     dropping out of school shall not have a negative impact on 
     meeting the transitional and academic needs of the students 
     returning from correctional facilities.''.

     SEC. 139. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

       Section 1423 (20 U.S.C. 6453) is amended by striking 
     paragraphs (4) through (9) and inserting the following:
       ``(4) a description of the program operated by 
     participating schools for children returning from 
     correctional facilities and the types of services that such 
     schools will provide such youth and other at-risk youth;
       ``(5) a description of the characteristics (including 
     learning difficulties, substance abuse problems, and other 
     special needs) of the youth who will be returning from 
     correctional facilities and, as appropriate, other at-risk 
     youth expected to be served by the program and how the school 
     will coordinate existing educational programs to meet the 
     unique educational needs of such youth;
       ``(6) as appropriate, a description of how schools will 
     coordinate with existing social, health, and other services 
     to meet the needs of students returning from correctional 
     facilities, students at risk of dropping out of school, and 
     other participating students, including prenatal health care 
     and nutrition services related to the health of the parent 
     and child, parenting and child development classes, child 
     care, targeted reentry and outreach programs, referrals to 
     community resources, and scheduling flexibility;
       ``(7) as appropriate, a description of any partnerships 
     with local businesses to develop training, curriculum-based 
     youth entrepreneurship education, and mentoring services for 
     participating students;
       ``(8) as appropriate, a description of how programs will 
     involve parents in efforts to improve the educational 
     achievement of their children, prevent the involvement of 
     their children in delinquent activities, and encourage their 
     children to remain in school and complete their education;
       ``(9) a description of how the program under this subpart 
     will be coordinated with other Federal, State, and local 
     programs, such as job training programs and vocational and 
     technical education programs serving this at-risk population 
     of youth.''.

     SEC. 140. USES OF FUNDS.

       Section 1424 (20 U.S.C. 6454) is amended by striking 
     paragraphs (1) through (3) and inserting the following:
       ``(1) programs that serve youth returning from correctional 
     facilities to local schools, to assist in the transition of 
     such youth to the school environment and help them remain in 
     school in order to complete their education;
       ``(2) providing assistance to other youth at risk of 
     dropping out of school, including pregnant and parenting 
     teenagers;
       ``(3) the coordination of social, health, and other 
     services, including day care, for participating youth, if the 
     provision of such services will improve the likelihood that 
     such youth will complete their education;
       ``(4) special programs to meet the unique academic needs of 
     participating youth, including vocational and technical 
     education, special education, career counseling, curriculum-
     based youth entrepreneurship education, and assistance in 
     securing student loans or grants for postsecondary education; 
     and
       ``(5) programs providing mentoring and peer mediation.''.

     SEC. 141. PROGRAM REQUIREMENTS.

       Section 1425 (20 U.S.C. 6455) is amended--
       (1) in the section heading, by striking ``THIS SECTION'' 
     and inserting ``this subpart'';
       (2) in the matter preceding paragraph (1), by striking 
     ``this section'' and inserting ``this subpart'';
       (3) in paragraph (1), by striking ``where feasible, ensure 
     educational programs'' and inserting ``to the extent 
     practicable, ensure that educational programs'';
       (4) in paragraphs (3) and (8), by striking ``where 
     feasible,'' and inserting ``to the extent practicable,'';
       (5) in paragraph (9)--
       (A) by striking ``this program'' and inserting ``this 
     subpart'';
       (B) by inserting ``and technical'' after ``vocational''; 
     and
       (C) by striking ``title I of the Workforce Investment Act 
     of 1998'' and inserting ``other job training programs'';
       (6) in paragraph (10), by inserting ``(42 U.S.C. 5601 et 
     seq.)'' after ``Juvenile Justice and Delinquency Prevention 
     Act of 1974''; and
       (7) by amending paragraph (11) to read as follows:
       ``(11) if appropriate, work with local businesses to 
     develop training, curriculum-based youth entrepreneurship 
     education, and mentoring programs for youth.''.

     SEC. 142. PROGRAM EVALUATIONS.

       Section 1431(a) (20 U.S.C. 6471(a)) is amended by striking 
     ``sex, and if feasible,'' and inserting ``gender,''.

             PART E--FEDERAL EVALUATIONS AND DEMONSTRATIONS

     SEC. 151. EVALUATIONS.

       Section 1501 (20 U.S.C. 6491) is amended to read as 
     follows:

     ``SEC. 1501. EVALUATIONS.

       ``(a) National Assessment.--
       ``(1) In general.--In accordance with this section, the 
     Secretary shall conduct a national assessment of programs 
     assisted under this title.
       ``(2) Issues to be examined.--In conducting the assessment 
     under this subsection, the Secretary shall examine--
       ``(A) the implementation of programs assisted under this 
     title and the impact of such implementation on increasing 
     student academic achievement, particularly schools with high 
     concentrations of children living in poverty;
       ``(B) the implementation of State standards, assessments, 
     and accountability systems developed under this title and the 
     impact of such implementation on educational programs and 
     instruction at the local level;
       ``(C) the impact of schoolwide programs and targeted 
     assistance programs under this title on improving student 
     academic achievement;
       ``(D) the extent to which varying models of comprehensive 
     school reform are funded under this title, and the effect of 
     the implementation of such models on improving achievement of 
     disadvantaged students;
       ``(E) the costs as compared to the benefits of the 
     activities assisted under this title;
       ``(F) the impact of school choice options under section 
     1116 on the academic achievement of disadvantaged students, 
     on schools in school improvement, and on schools from which 
     students have transferred under such options;
       ``(G) the extent to which actions authorized under section 
     1116 of this title are employed by State and local 
     educational agencies to improve the academic achievement of 
     students in low-performing schools, and the effectiveness of 
     the implementation of such actions;
       ``(H) the extent to which technical assistance made 
     available under this title is used to improve the achievement 
     of students in low-performing schools, and the impact of such 
     assistance on such achievement;
       ``(I) the extent to which State and local fiscal accounting 
     requirements under this title limit the flexibility of 
     schoolwide programs;
       ``(J) the impact of the professional development activities 
     assisted under this title on instruction and student 
     performance;
       ``(K) the extent to which the assistance made available 
     under this title is targeted to disadvantaged students and 
     schools that need them the most;
       ``(L) the effectiveness of Federal administration 
     assistance made available under this title, including 
     monitoring and technical assistance; and
       ``(M) such other issues as the Secretary considers 
     appropriate.
       ``(3) Sources of information.--In conducting the assessment 
     under this subsection, the Secretary shall use information 
     from a variety of sources, including the National Assessment 
     of Educational Progress (carried out under section 411 of the 
     National Education Statistics Act of 1994 (20 U.S.C. 9010)), 
     state evaluations, and other research studies.
       ``(4) Coordination.--In carrying out this subsection, the 
     Secretary shall--
       ``(A) coordinate conducting the national assessment with 
     conducting the longitudinal study described in subsection 
     (c); and
       ``(B) ensure that the independent review panel described in 
     subsection (d) participates in conducting the national 
     assessment, including planning for and reviewing the 
     assessment.
       ``(5) Reports.--
       ``(A) Interim report.--Not later than 3 years after the 
     date of enactment of the Leave No Child Behind Act of 2001, 
     the Secretary shall transmit to the President and the 
     Congress an interim report on the national assessment 
     conducted under this subsection.
       ``(B) Final report.--Not later than 4 years after the date 
     of enactment of the Leave No Child Behind Act of 2001, the 
     Secretary shall transmit to the President and the Congress a 
     final report on the national assessment conducted under this 
     subsection.
       ``(b) Studies and Data Collection.--
       ``(1) In general.--In addition to other activities 
     described in this section, the Secretary may, directly or 
     through the making of grants to or contracts with appropriate 
     entities--
       ``(A) conduct studies and evaluations of the need for, and 
     effectiveness of, each program authorized under this title;
       ``(B) collect the data necessary to comply with the 
     Government Performance and Results Act of 1993; and
       ``(C) provide guidance and technical assistance to State 
     educational agencies and local educational agencies in 
     developing and maintaining management information systems 
     through which such agencies can develop program performance 
     indicators in order to improve services and performance.
       ``(2) Minimum information.--Under this subsection, the 
     Secretary shall collect, at a minimum, trend information on 
     the effect of each program authorized under this title, which 
     shall complement the data collected and reported under 
     subsections (a) and (c).
       ``(c) National Longitudinal Study.--

[[Page 8904]]

       ``(1) In general.--The Secretary shall conduct a 
     longitudinal study of schools receiving assistance under this 
     title.
       ``(2) Issues to be examined.--In carrying out this 
     subsection, the Secretary shall ensure that the study 
     referred to in paragraph (1) provides the Congress and 
     educators with each of the following:
       ``(A) An accurate description and analysis of short-term 
     and long-term effectiveness of the assistance made available 
     under this title upon academic performance.
       ``(B) Information that can be used to improve the 
     effectiveness of the assistance made available under this 
     title in enabling students to meet challenging achievement 
     standards.
       ``(C) An analysis of educational practices or model 
     programs that are effective in improving the achievement of 
     disadvantaged children.
       ``(D) An analysis of the costs as compared to the benefits 
     of the assistance made available under this title in 
     improving the achievement of disadvantaged children.
       ``(E) An analysis of the effects of the availability of 
     school choice options under section 1116 on the academic 
     achievement of disadvantaged students, on schools in school 
     improvement, and on schools from which students have 
     transferred under such options.
       ``(F) Such other information as the Secretary considers 
     appropriate.
       ``(3) Scope.--In conducting the study referred to in 
     paragraph (1), the Secretary shall ensure that the study--
       ``(A) bases its analysis on a nationally representative 
     sample of schools participating in programs under this part;
       ``(B) to the extent practicable, includes in its analysis 
     students who transfer to different schools during the course 
     of the study; and
       ``(C) analyzes varying models or strategies for delivering 
     school services, including--
       ``(i) schoolwide and targeted services; and
       ``(ii) comprehensive school reform models.
       ``(d) Independent Review Panel.--
       ``(1) In general.--The Secretary shall establish an 
     independent review panel (in this subsection referred to as 
     the `Review Panel') to advise the Secretary on methodological 
     and other issues that arise in carrying out subsections (a) 
     and (c).
       ``(2) Appointment of members.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall appoint members of the Review Panel from 
     among qualified individuals who are--
       ``(i) specialists in statistics, evaluation, research, and 
     assessment;
       ``(ii) education practitioners, including teachers, 
     principals, and local and State superintendents; and
       ``(iii) other individuals with technical expertise who 
     would contribute to the overall rigor and quality of the 
     program evaluation.
       ``(B) Limitations.--In appointing members of the Review 
     Panel under this subparagraph (A), the Secretary shall ensure 
     that--
       ``(i) in order to ensure diversity, a majority of the 
     number of individuals appointed under subparagraph (A)(i) 
     represent disciplines or programs outside the field of 
     education; and
       ``(ii) the total number of the individuals appointed under 
     subparagraph (A)(ii) or (A)(iii) does not exceed \1/3\ of the 
     total number of the individuals appointed under this 
     paragraph.
       ``(3) Functions.--The Review Panel shall consult with and 
     advise the Secretary--
       ``(A) to ensure that the assessment conducted under 
     subsection (a) and the study conducted under subsection (c)--
       ``(i) adhere to the highest possible standards of quality 
     with respect to research design, statistical analysis, and 
     the dissemination of findings; and
       ``(ii) use valid and reliable measures to document program 
     implementation and impacts; and
       ``(B) to ensure--
       ``(i) that the final report described in subsection 
     (a)(5)(B) is reviewed not later than 120 days after its 
     completion by not less than 2 independent experts in program 
     evaluation;
       ``(ii) that such experts evaluate and comment on the degree 
     to which the report complies with subsection (a); and
       ``(iii) that the comments of such experts are transmitted 
     with the report under subsection (a)(5)(B).''.

     SEC. 152. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

       (a) In General.--Section 1502 (20 U.S.C. 6492) is amended--
       (1) by redesignating subsection (b) as subsection (c);
       (2) by striking in subsection (a) ``(2) Evaluation.--The 
     Secretary'' and inserting ``(b) Evaluation.--The Secretary'' 
     and by moving such subsection (b) 2 ems to the left;
       (3) by striking in subsection (a) ``Such projects shall 
     include promising'' and all that follows through ``career 
     guidance opportunities.'';
       (4) by striking ``student performance standards'' and 
     inserting ``student achievement standards'';
       (5) by inserting ``academic'' after ``to meet challenging 
     State''; and
       (6) by striking ``(a) Demonstration Programs'' and all that 
     follows through ``In general.--From the'' and inserting ``(a) 
     In General.--From the''.

     SEC. 153. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM; DROPOUT 
                   REPORTING.

       (a) In General.--Part E of title I (20 U.S.C. 6491 et seq.) 
     is further amended by adding at the end the following:

     ``SEC. 1503. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM

       ``(a) Findings.--Congress finds the following:
       ``(1) It is a worthwhile goal to ensure that all students 
     in America are prepared for responsible citizenship and that 
     all students should have the opportunity to be involved in 
     activities that promote and demonstrate good citizenship.
       ``(2) It is a worthwhile goal to ensure that America's 
     educators have access to programs for the continued 
     improvement of their professional skills.
       ``(3) Allen J. Ellender, a Senator from Louisiana and 
     President pro tempore of the United States Senate, had a 
     distinguished career in public service characterized by 
     extraordinary energy and real concern for young people. 
     Senator Ellender provided valuable support and encouragement 
     to the Close Up Foundation, a nonpartisan, nonprofit 
     foundation promoting knowledge and understanding of the 
     Federal Government among young people and educators. 
     Therefore, it is a fitting and appropriate tribute to Senator 
     Ellender to provide fellowships in his name to students of 
     limited economic means and the teachers who work with such 
     students, so that such students and teachers may participate 
     in the programs supported by the Close Up Foundation.
       ``(4) The Close Up Foundation is a nonpartisan, nonprofit, 
     education foundation promoting civic responsibility and 
     knowledge and understanding of the Federal Government among 
     young people and educators. The Congress has consistently 
     supported the Close Up Foundation's work with disadvantaged 
     young people and their educators through the Allen J. 
     Ellender Fellowship Program. Therefore, it is fitting and 
     appropriate to continue support under the successor Ellender-
     Close Up Fellowship Program to students of limited economic 
     means and the teachers who work with such students, so that 
     such students and teachers may participate in the programs 
     supported by the Close Up Foundation.
       ``(b) Program for Middle and Secondary School Students.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing civic responsibility and understanding 
     of the Federal Government among middle and secondary school 
     students.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to economically 
     disadvantaged students who participate in the program 
     described in subparagraph (A). Financial assistance received 
     pursuant to this subsection by such students shall be known 
     as Ellender-Close Up fellowships.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain provisions to assure--
       ``(i) that fellowship grants are made to economically 
     disadvantaged middle and secondary school students;
       ``(ii) that every effort will 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, 
     ethnic minority students, recent immigrants, and gifted and 
     talented students; and
       ``(iii) the proper disbursement of the funds received under 
     this subsection.
       ``(c) Program for Middle and Secondary School Teachers.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of professional development for middle and secondary 
     school teachers and to promote greater civic understanding 
     and responsibility among the students of such teachers.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used only for financial assistance to teachers who 
     participate in the program described in subparagraph (A). 
     Financial assistance received pursuant to this subpart by 
     such individuals shall be known as Ellender-Close Up 
     fellowships.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain provisions to assure--
       ``(i) 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 programs described in 
     subsection (b);
       ``(ii) that no teacher in each school participating in the 
     programs assisted under subsection (b) may receive more than 
     one fellowship in any fiscal year; and
       ``(iii) the proper disbursement of the funds received under 
     this subsection.

[[Page 8905]]

       ``(d) Programs for Recent Immigrants and Students of 
     Migrant Parents.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing understanding of the Federal 
     Government among economically disadvantaged recent immigrants 
     and students of migrant parents.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used for financial assistance to economically disadvantaged 
     older Americans, recent immigrants and students of migrant 
     parents who participate in the program described in 
     subsection (a). Financial assistance received pursuant to 
     this subpart by such individuals shall be known as Ellender-
     Close Up fellowships.
       ``(2) Applications.--
       ``(A) Application Required.--No grant under this subsection 
     may be made except upon application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of Application.--Each application submitted 
     under this paragraph shall contain provisions--
       ``(i) to assure that fellowship grants are made to 
     economically disadvantaged recent immigrants and students of 
     migrant parents;
       ``(ii) to assure that every effort will be made to ensure 
     the participation of recent immigrants and students of 
     migrant parents from rural and small town areas, as well as 
     from urban areas, and that in awarding fellowships, special 
     consideration will be given to the participation of recent 
     immigrants and students of migrant parents with special 
     needs, including individuals with disabilities, ethnic 
     minorities, and gifted and talented students;
       ``(iii) that fully describe the activities to be carried 
     out with the proceeds of the grant; and
       ``(iv) to assure the proper disbursement of the funds 
     received under this subsection.
       ``(e) General Provisions.--
       ``(1) Administrative provisions.--
       ``(A) General rule.--Payments under this section may be 
     made in installments, in advance, or by way of reimbursement, 
     with necessary adjustments on account of underpayment or 
     overpayment.
       ``(B) Audit Rule.--The Comptroller General of the United 
     States or any of the Comptroller General's duly authorized 
     representatives shall have access for the purpose of audit 
     and examination to any books, documents, papers, and records 
     that are pertinent to any grant under this section.
       ``(f) Limitation.--Of the funds appropriated to carry out 
     this section under section 1002, the Secretary may use not 
     more than 30 percent to carry out subsection (c) of this 
     section.

     ``SEC. 1504. DROPOUT REPORTING.

       ``State educational agencies receiving funds under this 
     title shall annually report to the National Center on 
     Education Statistics (established under section 403 of the 
     National Education Statistics Act of 1994 (20 U.S.C. 9002)) 
     on the dropout rate of students in the State, as defined for 
     the Center's Common Core of Data.''.
       (b) Continuation of Awards.--Notwithstanding any other 
     provision of this Act, any person or agency that was awarded 
     a grant under part G of title X (20 U.S.C. 8161 et seq.) 
     prior to the date of the enactment of this Act shall continue 
     to receive funds in accordance with the terms of such award 
     until the date on which the award period terminates under 
     such terms.

                  PART F--COMPREHENSIVE SCHOOL REFORM

     SEC. 161. SCHOOL REFORM.

       Part F of title I is amended to read as follows:

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

     ``SEC. 1601. COMPREHENSIVE SCHOOL REFORM.

       ``(a) Findings and Purpose.--
       ``(1) Findings.--Congress finds the following:
       ``(A) A number of schools across the country have shown 
     impressive gains in student performance through the use of 
     comprehensive models for schoolwide change that incorporate 
     virtually all aspects of school operations.
       ``(B) No single comprehensive school reform model may be 
     suitable for every school, however, schools should be 
     encouraged to examine successful, externally developed 
     comprehensive school reform approaches as they undertake 
     comprehensive school reform.
       ``(C) Comprehensive school reform is an important means by 
     which children are assisted in meeting challenging State 
     student academic achievement standards.
       ``(2) Purpose.--The purpose of this section is to provide 
     financial incentives for schools to develop comprehensive 
     school reforms, based upon scientifically-based research and 
     effective practices that include an emphasis on basic 
     academics and parental involvement so that all children can 
     meet challenging State content and academic achievement 
     standards.
       ``(b) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to provide 
     grants to State educational agencies to provide subgrants to 
     local educational agencies to carry out the purpose described 
     in subsection (a)(2).
       ``(2) Allocation.--
       ``(A) Reservation.--Of the amount appropriated under this 
     section, the Secretary may reserve--
       ``(i) not more than 1 percent for schools supported by the 
     Bureau of Indian Affairs and in the United States Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands;
       ``(ii) not more than 1 percent to conduct national 
     evaluation activities described under subsection (e); and
       ``(iii) not more than 2 percent of the amount appropriated 
     in fiscal year 2002 to carry out this part, for quality 
     initiatives described under subsection (f).
       ``(B) In general.--Of the amount of funds remaining after 
     the reservation under subparagraph (A), the Secretary shall 
     allocate to each State for a fiscal year, an amount that 
     bears the same ratio to the remainder for that fiscal year as 
     the amount made available under section 1124 to the State for 
     the preceding fiscal year bears to the total amount allocated 
     under section 1124 to all States for that year.
       ``(C) Reallocation.--If a State does not apply for funds 
     under this section, the Secretary shall reallocate such funds 
     to other States that do apply in proportion to the amount 
     allocated to such States under subparagraph (B).
       ``(c) State Awards.--
       ``(1) State application.--
       ``(A) In general.--Each State educational agency that 
     desires to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner and 
     containing such other information as the Secretary may 
     reasonably require.
       ``(B) Contents.--Each State application shall also 
     describe--
       ``(i) the process and selection criteria by which the State 
     educational agency, using expert review, will select local 
     educational agencies to receive subgrants under this section;
       ``(ii) how the agency will ensure that funds under this 
     part are used only for comprehensive school reform programs 
     that--

       ``(I) include each of the components described in 
     subsection (d)(2);
       ``(II) have the capacity to improve the academic 
     achievement of all students in core academic subjects within 
     participating schools; and
       ``(III) are supported by technical assistance providers 
     that have a successful track record, financial stability, and 
     the capacity to deliver high-quality materials and 
     professional development for school personnel.

       ``(iii) how the agency will disseminate materials regarding 
     information on comprehensive school reforms that are based on 
     scientifically-based research and effective practices;
       ``(iv) how the agency will evaluate annually the 
     implementation of such reforms and measure the extent to 
     which the reforms resulted in increased student academic 
     performance; and
       ``(v) how the agency will provide, technical assistance to 
     the local educational agency or consortia of local 
     educational agencies, and to participating schools, in 
     evaluating, developing, and implementing comprehensive school 
     reform.
       ``(2) Uses of funds.--
       ``(A) In general.--Except as provided in subparagraph (E), 
     a State educational agency that receives an award under this 
     section shall use such funds to provide competitive grants to 
     local educational agencies or consortia of local educational 
     agencies in the State receiving funds under part A to support 
     comprehensive school reforms in schools eligible for funds 
     under such part.
       ``(B) Grant requirements.--A grant to a local educational 
     agency or consortium shall be--
       ``(i) of sufficient size and scope to support the initial 
     costs of the comprehensive school reforms selected or 
     designed by each school identified in the application of the 
     local educational agency or consortium;
       ``(ii) in an amount not less than $50,000 to each 
     participating school; and
       ``(iii) renewable for two additional 1-year periods after 
     the initial 1-year grant is made if schools are making 
     substantial progress in the implementation of their reforms.
       ``(C) Priority.--The State, in awarding grants under this 
     paragraph, shall give priority to local educational agencies 
     that--
       ``(i) plan to use the funds in schools identified as being 
     in need of improvement or corrective action under section 
     1116(c); or
       ``(ii) demonstrate a commitment to assist schools with 
     budget allocation, professional development, and other 
     strategies necessary to ensure the comprehensive school 
     reforms are properly implemented and are sustained in the 
     future.
       ``(D) Grant consideration.--In making subgrant awards under 
     this part, the State educational agency shall take into 
     account the equitable distribution of awards to different 
     geographic regions within the State, including urban and 
     rural areas, and to schools serving elementary and secondary 
     students.
       ``(E) Administrative costs.--A State educational agency 
     that receives a grant award under this section may reserve 
     not more than 5 percent of such award for administrative, 
     evaluation, and technical assistance expenses.
       ``(F) Supplement.--Funds made available under this section 
     shall be used to supplement, not supplant, any other Federal, 
     State, or local funds that would otherwise be available to 
     carry out this section.
       ``(3) Reporting.--Each State educational agency that 
     receives an award under this section shall provide to the 
     Secretary such information as the Secretary may require, 
     including the names of local educational agencies and schools 
     selected to receive subgrant awards under this

[[Page 8906]]

     section, the amount of such award, a description of the 
     comprehensive school reforms selected and in use and a copy 
     of the State's annual evaluation of the implementation of 
     comprehensive school reforms supported under this part and 
     student achievement results.
       ``(d) Local Awards.--
       ``(1) In general.--Each local educational agency or 
     consortium that applies for a subgrant under this section 
     shall--
       ``(A) identify which schools eligible for funds under part 
     A plan to implement a comprehensive school reform program, 
     including the projected costs of such a program;
       ``(B) describe the comprehensive school reforms based on 
     scientifically-based research and effective practices that 
     such schools will implement;
       ``(C) describe how the agency or consortium will provide 
     technical assistance and support for the effective 
     implementation of the school reforms based on scientifically-
     based research and effective practices selected by such 
     schools; and
       ``(D) describe how the agency or consortium will evaluate 
     the implementation of such reforms and measure the results 
     achieved in improving student academic performance.
       ``(2) Components of the program.--A local educational 
     agency that receives a subgrant award under this section 
     shall provide such funds to schools that implement a 
     comprehensive school reform program that--
       ``(A) employs proven strategies and proven methods for 
     student learning, teaching, and school management that are 
     based on scientifically-based research and effective 
     practices and have been replicated successfully in similar 
     schools;
       ``(B) integrates a comprehensive design for effective 
     school functioning, including instruction, assessment, 
     classroom management, professional development, parental 
     involvement, and school management, that aligns the school's 
     curriculum, technology, and professional development into a 
     comprehensive reform plan for schoolwide change designed to 
     enable all students to meet challenging State content and 
     challenging student performance standards and addresses needs 
     identified through a school needs assessment;
       ``(C) provides high-quality and continuous teacher and 
     staff professional development;
       ``(D) includes measurable goals for student performance and 
     benchmarks for meeting such goals;
       ``(E) is supported by teachers, principals, administrators, 
     and other professional staff;
       ``(F) provides for the meaningful involvement of parents 
     and the local community in planning and implementing school 
     improvement activities;
       ``(G) uses high quality external technical support and 
     assistance from an entity, which may be an institution of 
     higher education, with experience and expertise in schoolwide 
     reform and improvement;
       ``(H) includes a plan for the annual evaluation of the 
     implementation of school reforms and the student results 
     achieved;
       ``(I) identifies how other resources, including Federal, 
     State, local, and private resources, available to the school 
     will be used to coordinate services to support and sustain 
     the school reform effort; and
       ``(J)(i) has been found, through rigorous field experiments 
     in multiple sites, to significantly improve the academic 
     performance of students participating in such activity or 
     program as compared to similar students in similar schools, 
     who have not participated in such activity or program; or
       ``(ii) has been found to have strong evidence that such 
     model will significantly improve the performance of 
     participating children.
       ``(3) Special rule.--A school that receives funds to 
     develop a comprehensive school reform program shall not be 
     limited to using nationally available approaches, but may 
     develop its own comprehensive school reform program for 
     schoolwide change that complies with paragraph (2).
       ``(e) Evaluation and Report.--
       ``(1) In general.--The Secretary shall develop a plan for a 
     national evaluation of the programs developed pursuant to 
     this section.
       ``(2) Evaluation.--This national evaluation shall evaluate 
     the implementation and results achieved by schools after 3 
     years of implementing comprehensive school reforms, and 
     assess the effectiveness of comprehensive school reforms in 
     schools with diverse characteristics.
       ``(3) Reports.--Prior to the completion of a national 
     evaluation, the Secretary shall submit an interim report 
     outlining first year implementation activities to the 
     Committees on Education and the Workforce and Appropriations 
     of the House of Representatives and the Committees on Health, 
     Education, Labor, and Pensions and Appropriations of the 
     Senate.
       ``(f) Quality Initiatives.--The Secretary, through grants 
     or contracts, shall provide funds for the following 
     activities:
       ``(1) Technical assistance.--A joint public and private 
     partnership that receives matching funds from private 
     organizations, in order to assist States, local educational 
     agencies, and schools in making informed decisions when 
     approving or selecting providers of comprehensive school 
     reform, consistent with the requirements described in 
     subsection (d)(3).
       ``(2) Other activities.--Other activities that--
       ``(A) encourage the development of comprehensive reform 
     models;
       ``(B) build the capacity of comprehensive school reform 
     providers to increase the number of schools the providers can 
     serve; and
       ``(C) ensure that schools served receive high quality 
     services that meet the needs of their teachers and 
     students.''.

           PART G--RURAL EDUCATION FLEXIBILITY AND ASSISTANCE

     SEC. 171. RURAL EDUCATION.

       Title I is amended by adding at the end the following new 
     part:

          ``PART G--RURAL EDUCATION FLEXIBILITY AND ASSISTANCE

     ``SEC. 1701. SHORT TITLE.

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

     ``SEC. 1702. FINDINGS.

       ``Congress finds the following:
       ``(1) While there are rural education initiatives 
     identified at the State and local level, no Federal education 
     policy focuses on the specific and unique needs of rural 
     school districts and schools.
       ``(2) Small school districts often cannot use Federal grant 
     funds distributed by formula because the formula allocation 
     does not provide enough revenue to carry out the program the 
     grant is intended to fund.
       ``(3) Rural schools often cannot compete for Federal 
     funding distributed by competitive grants because the schools 
     lack the personnel needed to prepare grant applications and 
     the resources to hire specialists in the writing of Federal 
     grant proposals.
       ``(4) A critical problem for rural school districts 
     involves the hiring and retention of qualified administrators 
     and certified teachers (especially in reading, science, and 
     mathematics). As a result, teachers in rural schools are 
     almost twice as likely to provide instruction in three or 
     more subject areas than teachers in urban schools. Rural 
     schools also face other tough challenges, such as shrinking 
     local tax bases, high transportation costs, aging buildings, 
     limited course offerings, and limited resources.

                ``Subpart 1--Rural Education Flexibility

     ``SEC. 1711. FORMULA GRANT PROGRAM AUTHORIZED.

       ``(a) Alternative Uses.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, an eligible local educational agency may use the 
     applicable funding, that the agency is eligible to receive 
     from the State educational agency for a fiscal year, to carry 
     out local activities authorized in part A of title I, part A 
     of title II, part A of title III, part A of title IV, or part 
     A or B of title V.
       ``(2) Notification.--An eligible local educational agency 
     shall notify the State educational agency of the local 
     educational agency's intention to use the applicable funding 
     in accordance with paragraph (1) not later than a date that 
     is established by the State educational agency for the 
     notification.
       ``(b) Eligibility.--
       ``(1) In general.--A local educational agency shall be 
     eligible to use the applicable funding in accordance with 
     subsection (a) if--
       ``(A)(i) the total number of students in average daily 
     attendance at all of the schools served by the local 
     educational agency is less than 600; and
       ``(ii) all of the schools served by the local educational 
     agency are designated with a school locale code of 7 or 8 as 
     determined by the Secretary of Education; or
       ``(B) the agency meets the criteria established in 
     subparagraph (A)(i) and the Secretary, in accordance with 
     paragraph (2), grants the local educational agency's request 
     to waive the criteria described in subparagraph (A)(ii).
       ``(2) Certification.--The Secretary shall determine whether 
     or not to waive the criteria described in paragraph 
     (1)(A)(ii) based on a demonstration by a local educational 
     agency and concurrence by the State educational agency that 
     the local educational agency is located in an area defined as 
     rural by a governmental agency of the State.
       ``(c) Applicable Funding.--In this section, the term 
     `applicable funding' means funds provided under part A of 
     title II, section 3106, part A of title IV, part A of title 
     V, and section 5212(2)(A).
       ``(d) Disbursement.--Each State educational agency that 
     receives applicable funding for a fiscal year shall disburse 
     the applicable funding to local educational agencies for 
     alternative uses under this section for the fiscal year at 
     the same time that the State educational agency disburses the 
     applicable funding to local educational agencies that do not 
     intend to use the applicable funding for such alternative 
     uses for the fiscal year.
       ``(e) Supplement Not Supplant.--Funds used under this 
     section shall be used to supplement and not supplant any 
     other Federal, State, or local education funds that would 
     otherwise be available for the purpose of this subpart.
       ``(f) Applicable Rule.--Except as otherwise provided in 
     this subpart, funds transferred under this subpart 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.

     ``SEC. 1712. PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary is authorized to award 
     grants to eligible local educational agencies under section 
     1711(b) to enable the local educational agencies to support 
     local or statewide education reform efforts intended to 
     improve the academic achievement of elementary school and 
     secondary school students and the quality of instruction 
     provided for the students.
       ``(b) Allocation.--
       ``(1) In general.--Except as provided in paragraph (3), the 
     Secretary shall award a grant to an eligible local 
     educational agency under section 1711(b) for a fiscal year in 
     an amount equal

[[Page 8907]]

     to the initial amount determined under paragraph (2) for the 
     fiscal year minus the total amount received under the 
     provisions of law described under section 1711(c) for the 
     preceding fiscal year.
       ``(2) Determination of the initial amount.--The initial 
     amount referred to in paragraph (1) is equal to $100 
     multiplied by the total number of students, over 50 students, 
     in average daily attendance in such eligible agency plus 
     $20,000, except that the initial amount may not exceed 
     $60,000.
       ``(3) Ratable adjustment.--
       ``(A) In general.--If the amount made available for this 
     subpart for any fiscal year is not sufficient to pay in full 
     the amounts that local educational agencies are eligible to 
     receive under paragraph (1) for such year, the Secretary 
     shall ratably reduce such amounts for such year.
       ``(B) Additional amounts.--If additional funds become 
     available for making payments under paragraph (1) for such 
     fiscal year, payments that were reduced under subparagraph 
     (A) shall be increased on the same basis as such payments 
     were reduced.
       ``(4) Census determination.--
       ``(A) In general.--Each local educational agency desiring a 
     grant under this section shall conduct a census not later 
     than December 1 of each year to determine the number of 
     kindergarten through grade 12 students in average daily 
     attendance at the schools served by the local educational 
     agency.
       ``(B) Submission.--Each local educational agency shall 
     submit the number described in subparagraph (A) to the 
     Secretary not later than March 1 of each year.
       ``(c) Disbursal.--The Secretary shall disburse the funds 
     awarded to a local educational agency under this section for 
     a fiscal year not later than July 1 of that year.
       ``(d) Special Rule.--A local educational agency that is 
     eligible to receive a grant under this subpart for a fiscal 
     year shall be ineligible to receive funds for such fiscal 
     year under subpart 2.
       ``(e) Supplement Not Supplant.--Funds made available under 
     this section shall be used to supplement and not supplant any 
     other Federal, State, or local education funds.

     ``SEC. 1713. ACCOUNTABILITY.

       ``(a) Academic Achievement.--
       ``(1) In general.--Each local educational agency that uses 
     or receives funds under section 1711 or 1712 for a fiscal 
     year shall administer an assessment consistent with section 
     1111.
       ``(2) Special rule.--Each local educational agency that 
     uses or receives funds under section 1711 or 1712 shall use 
     the same assessment described in paragraph (1) for each year 
     of participation in the program under such section.
       ``(b) State Educational Agency Determination Regarding 
     Continuing Participation.--Each State educational agency that 
     receives funding under the provisions of law described in 
     section 1711(c) shall--
       ``(1) after the second year that a local educational agency 
     participates in a program under section 1711 or 1712 and on 
     the basis of the results of the assessments described in 
     subsection (a), determine whether the schools served by the 
     local educational agency participating in the program 
     performed in accordance with section 1111; and
       ``(2) only permit those local educational agencies that so 
     participated and make adequate yearly progress, as described 
     in section 1111(b)(2), to continue to so participate.

                ``Subpart 2--Rural Education Assistance

     ``SEC. 1721. PROGRAM AUTHORIZED.

       ``(a) Reservations.--From amounts appropriated under 
     section 1002(f) for this subpart for a fiscal year, the 
     Secretary shall reserve \1/2\ of 1 percent to make awards to 
     elementary or secondary schools operated or supported by the 
     Bureau of Indian Affairs to carry out the purpose of this 
     subpart.
       ``(b) Grants to States.--
       ``(1) In general.--From amounts appropriated under section 
     1002(f) for this subpart that are not reserved under 
     subsection (a), the Secretary shall award grants for a fiscal 
     year to State educational agencies that have applications 
     approved under section 1723 to enable the State educational 
     agencies to award subgrants to eligible local educational 
     agencies for local authorized activities described in 
     subsection (c)(2).
       ``(2) Allocation.--From amounts appropriated for this 
     subpart, the Secretary shall allocate to each State 
     educational agency for a fiscal year an amount that bears the 
     same ratio to the amount of funds appropriated under section 
     1002(f) for this subpart that are not reserved under 
     subsection (a) as the number of students in average daily 
     attendance served by eligible local educational agencies in 
     the State bears to the number of all such students served by 
     eligible local educational agencies in all States for that 
     fiscal year.
       ``(3) Direct awards to specially qualified agencies.--
       ``(A) Nonparticipating state.--If a State educational 
     agency elects not to participate in the program under this 
     subpart or does not have an application approved under 
     section 1723 a specially qualified agency in such State 
     desiring a grant under this subpart shall submit an 
     application under such section directly to the Secretary to 
     receive an award under this subpart.
       ``(B) Direct awards to specially qualified agencies.--The 
     Secretary may award, on a competitive basis, the amount the 
     State educational agency is eligible to receive under 
     paragraph (2) directly to specially qualified agencies in the 
     State.
       ``(c) Local Awards.--
       ``(1) Eligibility.--A local educational agency shall be 
     eligible to receive funds under this subpart if--
       ``(A) 20 percent or more of the children aged 5 to 17, 
     inclusive, served by the local educational agency are from 
     families with incomes below the poverty line; and
       ``(B) all of the schools served by the agency are 
     designated with a school code of 6, 7, or 8 as determined by 
     the Secretary of Education.
       ``(2) Uses of funds.--Grant funds awarded to local 
     educational agencies or made available to schools under this 
     subpart shall be used for--
       ``(A) teacher recruitment and retention, including the use 
     of signing bonuses and other financial incentives;
       ``(B) teacher professional development, including programs 
     that train teachers to utilize technology to improve teaching 
     and to train special needs teachers;
       ``(C) educational technology, including software and 
     hardware as described in part B of title V;
       ``(D) parental involvement activities; or
       ``(E) programs to improve student academic achievement.

     ``SEC. 1722. STATE DISTRIBUTION OF FUNDS.

       ``(a) Award Basis.--A State educational agency shall award 
     grants to eligible local educational agencies--
       ``(1) on a competitive basis; or
       ``(2) according to a formula based on the number of 
     students in average daily attendance served by the eligible 
     local educational agencies or schools (as appropriate) in the 
     State, as determined by the State.
       ``(b) Administrative Costs.--A State educational agency 
     receiving a grant under this subpart may not use more than 5 
     percent of the amount of the grant for State administrative 
     costs.

     ``SEC. 1723. APPLICATIONS.

       ``Each State educational agency and specially qualified 
     agency desiring to receive a grant under this subpart shall 
     submit an application to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may require. Such application shall include specific 
     measurable goals and objectives relating to increased student 
     academic achievement, decreased student dropout rates, or 
     such other factors that the State educational agency or 
     specially qualified agency may choose to measure.

     ``SEC. 1724. REPORTS.

       ``(a) State Reports.--Each State educational agency that 
     receives a grant under this subpart shall provide an annual 
     report to the Secretary. The report shall describe--
       ``(1) the method the State educational agency used to award 
     grants to eligible local educational agencies and to provide 
     assistance to schools under this subpart;
       ``(2) how local educational agencies and schools used funds 
     provided under this subpart; and
       ``(3) the degree to which progress has been made toward 
     meeting the goals and objectives described in the application 
     submitted under section 1723.
       ``(b) Specially Qualified Agency Report.--Each specially 
     qualified agency that receives a grant under this subpart 
     shall provide an annual report to the Secretary. Such report 
     shall describe--
       ``(1) how such agency uses funds provided under this 
     subpart; and
       ``(2) the degree to which progress has been made toward 
     meeting the goals and objectives described in the application 
     submitted under section 1723.
       ``(c) Report to Congress.--The Secretary shall prepare and 
     submit to the Committee on Education and the Workforce for 
     the House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions for the Senate an annual 
     report. The report shall describe--
       ``(1) the methods the State educational agency used to 
     award grants to eligible local educational agencies and to 
     provide assistance to schools under this subpart;
       ``(2) how eligible local educational agencies and schools 
     used funds provided under this subpart; and
       ``(3) progress made in meeting specific measurable 
     educational goals and objectives.

     ``SEC. 1725. PERFORMANCE REVIEW.

       ``Three years after a State educational agency or specially 
     qualified agency receives funds under this part, the 
     Secretary shall review the progress of such agency toward 
     achieving the goals and objectives included in its 
     application, to determine whether the agency has made 
     progress toward meeting such goals and objectives. To review 
     the performance of each agency, the Secretary shall--
       ``(1) review the use of funds of such agency under section 
     1721(c)(2); and
       ``(2) deny the provision of additional funds in subsequent 
     fiscal years to an agency only if the Secretary determines, 
     after notice and an opportunity for a hearing, that the 
     agency's use of funds has been inadequate to justify 
     continuation of such funding.

     ``SEC. 1726. DEFINITIONS.

       ``In this subpart--
       ``(1) The term `poverty line' means the poverty line (as 
     defined by the Office of Management and Budget, and revised 
     annually in accordance with section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a 
     family of the size involved.
       ``(2) The term `specially qualified agency' means an 
     eligible local educational agency, located in a State that 
     does not participate in a

[[Page 8908]]

     program under this subpart in a fiscal year, that may apply 
     directly to the Secretary for a grant in such year under 
     section 1721(b)(3)(A).

                    ``Subpart 3--General Provisions

     ``SEC. 1731. DEFINITION.

       ``In this part, the term `State' means each of the 50 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.''.

                 PART H--GENERAL PROVISIONS OF TITLE I

     SEC. 181. GENERAL PROVISIONS.

       Title I is amended further by adding at the end the 
     following:

                      ``PART H--GENERAL PROVISIONS

     ``SEC. 1801. FEDERAL REGULATIONS.

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

     ``SEC. 1802. AGREEMENTS AND RECORDS.

       ``(a) Agreements.--All published proposed regulations shall 
     conform to agreements that result from negotiated rulemaking 
     described in section 1801 unless the Secretary reopens the 
     negotiated rulemaking process or provides a written 
     explanation to the participants involved in the process 
     explaining why the Secretary decided to depart from and not 
     adhere to such agreements.
       ``(b) Records.--The Secretary shall ensure that an accurate 
     and reliable record of agreements reached during the 
     negotiations process is maintained.

     ``SEC. 1803. STATE ADMINISTRATION.

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

     ``SEC. 1804. LOCAL ADMINISTRATIVE COST LIMITATION.

       ``(a) Local Administrative Cost Limitation.--Each local 
     educational agency may use not more than 4 percent of funds 
     received under part A for administrative expenses.
       ``(b) Regulations.--The Secretary, after consulting with 
     State and local officials and other experts in school 
     finance, shall develop and issue regulations that define the 
     term administrative cost for purposes of this title. Such 
     definition shall be consistent with generally accepted 
     accounting principles. The Secretary shall publish final 
     regulations on this section not later than 1 year after the 
     date of the enactment of the No Child Left Behind Act of 
     2001.

     ``SEC. 1805. APPLICABILITY.

       ``Nothing in this title shall be construed to affect home 
     schools nor shall any home schooled student be required to 
     participate in any assessment referenced in this title.

     ``SEC. 1806. PRIVATE SCHOOLS.

       ``Nothing in this title shall be construed to affect any 
     private school that does not receive funds or services under 
     this title, nor shall any student who attends a private 
     school that does not receive funds or services under this 
     title be required to participate in any assessment referenced 
     in this title.

     ``SEC. 1807. PRIVACY OF ASSESSMENT RESULTS.

       ``Any results from individual assessments referenced in 
     this title which become part of the education records of the 
     student shall have the protections as provided in section 444 
     of the General Education Provisions Act.''.

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

     SEC. 201. TEACHER QUALITY TRAINING AND RECRUITING FUND.

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

    ``TITLE II--PREPARING, TRAINING, AND RECRUITING QUALITY TEACHERS

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

     ``SEC. 2001. PURPOSE.

       ``The purpose of this part is to provide grants to States 
     and local educational agencies in order to assist their 
     efforts to increase student academic achievement through such 
     strategies as improving teacher and principal quality and 
     increasing the number of highly qualified teachers in the 
     classroom.

``Subpart 1--Grants to States to Prepare, Train, and Recruit Qualified 
                                Teachers

     ``SEC. 2011. FORMULA GRANTS TO STATES.

       ``(a) In General.--In the case of each State that in 
     accordance with section 2013 submits to the Secretary an 
     application for a fiscal year, the Secretary shall make a 
     grant for the year to the State for the uses specified in 
     section 2012. The grant shall consist of the allotment 
     determined for the State under subsection (b).
       ``(b) Determination of Amount of Allotments.--
       ``(1) Reservation of funds.--From the amount made available 
     to carry out this subpart for any fiscal year, the Secretary 
     shall reserve--
       ``(A) \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 purpose of 
     this part; and
       ``(B) \1/2\ of 1 percent for the Secretary of the Interior 
     for programs under this subpart for professional development 
     activities for teachers, other staff, and administrators in 
     schools operated or funded by the Bureau of Indian Affairs.
       ``(2) State allotments.--
       ``(A) Hold harmless.--
       ``(i) In general.--Subject to subparagraph (B), from the 
     total amount made available to carry out this subpart for any 
     fiscal year and not reserved under paragraph (1), the 
     Secretary shall allot to each of the 50 States, the District 
     of Columbia, and the Commonwealth of Puerto Rico an amount 
     equal to the total amount that such State received for fiscal 
     year 2001 under--

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

       ``(ii) Nonparticipating states.--In the case of a State 
     that did not receive any funds for fiscal year 2001 under one 
     or both of the provisions referred to in subclauses (I) and 
     (II) of clause (i), the amount allotted to the State under 
     such

[[Page 8909]]

     clause shall be the total amount that the State would have 
     received for fiscal year 2001 if it had elected to 
     participate in all of the programs for which it was eligible 
     under each of the provisions referred to in such subclauses.
       ``(iii) Ratable reduction.--If the total amount made 
     available to carry out this subpart for any fiscal year and 
     not reserved under paragraph (1) is insufficient to pay the 
     full amounts that all States are eligible to receive under 
     clause (i) for any fiscal year, the Secretary shall ratably 
     reduce such amounts for such fiscal year.
       ``(B) Allotment of additional funds.--
       ``(i) In general.--Subject to clause (ii), for any fiscal 
     year for which the total amount made available to carry out 
     this subpart and not reserved under paragraph (1) exceeds the 
     total amount required to make allotments under subparagraph 
     (A), the Secretary shall allot such excess amount among the 
     50 States, the District of Columbia, and the Commonwealth of 
     Puerto Rico as follows:

       ``(I) 50 percent of such excess amount shall be allotted 
     among such States 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.
       ``(II) 50 percent of such excess amount shall be allotted 
     among such States in proportion to the number of children, 
     aged 5 to 17, who reside within the State from families with 
     incomes below the poverty line (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, compared to the number of such individuals who 
     reside in all such States for that fiscal year.

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

     ``SEC. 2012. WITHIN-STATE ALLOCATIONS.

       ``(a) Use of Funds.--Each State receiving a grant under 
     this subpart shall use the funds provided under the grant in 
     accordance with this section to carry out activities for the 
     improvement of teaching and learning.
       ``(b) Reservation of Funds.--
       ``(1) In general.--A State that receives a grant under this 
     subpart may reserve not more than 5 percent of the amount of 
     the funds provided under the grant for--
       ``(A) one or more of the authorized State activities 
     described in subsection (e); and
       ``(B) planning and administration related to carrying out 
     such activities and making subgrants to local educational 
     agencies under subparts 2 and 3.
       ``(2) Limitation on administrative costs.--The amount 
     reserved by a State under paragraph (1)(B) may not exceed 1 
     percent of the amount of the funds provided under the grant.
       ``(c) Subgrants to Local Educational Agencies.--
       ``(1) In general.--The Secretary may make a grant to a 
     State under this subpart only if the State agrees to 
     distribute the funds described in this subsection as 
     subgrants to local educational agencies under subpart 3.
       ``(2) Hold harmless.--
       ``(A) In general.--From the funds that a State receives 
     under this subpart for any fiscal year that are not reserved 
     under subsection (b), the State shall allot to each local 
     educational agency an amount equal to the total amount that 
     such agency received for fiscal year 2001 under--
       ``(i) section 2203(1)(B) of this Act (as in effect on the 
     day before the date of the enactment of the No Child Left 
     Behind Act of 2001); and
       ``(ii) section 306 of the Department of Education 
     Appropriations Act, 2001 (as enacted into law by section 
     1(a)(1) of Public Law 106-554).
       ``(B) Nonparticipating agencies.--In the case of a local 
     educational agency that did not receive any funds for fiscal 
     year 2001 under one or both of the provisions referred to in 
     clauses (i) and (ii) of subparagraph (A), the amount allotted 
     to the agency under such subparagraph shall be the total 
     amount that the agency would have received for fiscal year 
     2001 if it had elected to participate in all of the programs 
     for which it was eligible under each of the provisions 
     referred to in such clauses.
       ``(C) Ratable reduction.--If the funds described in 
     subparagraph (A) are insufficient to pay the full amounts 
     that all local educational agencies are eligible to receive 
     under such subparagraph for any fiscal year, the State shall 
     ratably reduce such amounts for such fiscal year.
       ``(3) Allotment of Additional Funds.--
       ``(A) In general.--For any fiscal year for which the funds 
     that a State receives under this subpart that are not 
     reserved under subsection (b) exceed the total amount 
     required to make allotments under paragraph (2), the State 
     shall distribute the amount described in subparagraph (B) 
     through a formula under which--
       ``(i) 20 percent is allocated to local educational agencies 
     in accordance with the relative enrollment in public and 
     private nonprofit elementary and secondary schools within the 
     boundaries of such agencies; and
       ``(ii) 80 percent is allocated to local educational 
     agencies in proportion to the number of children, aged 5 to 
     17, who reside within the geographic area served by such 
     agency from families with incomes below the poverty line (as 
     defined by the Office of Management and Budget and revised 
     annually in accordance with section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a 
     family of the size involved for the most recent fiscal year 
     for which satisfactory data are available, compared to the 
     number of such individuals who reside in the geographic areas 
     served by all the local educational agencies in the State for 
     that fiscal year.
       ``(B) Calculation of amount.--
       ``(i) In general.--The amount described in this 
     subparagraph for a State for any fiscal year is the base 
     amount for such State and year, plus any additional amount 
     for such State and year.
       ``(ii) Base amount.--For purposes of this subparagraph, the 
     term `base amount' means 50 percent of the funds that remain 
     to a State after a State makes the reservations described in 
     subsection (b) and the allotments described in paragraph (2).
       ``(iii) Additional amount.--For purposes of this 
     subparagraph, the term `additional amount' means the amount 
     (if any) by which the base amount for a State exceeds the 
     maximum amount described in subsection (d)(2)(B).
       ``(d) Math and Science Partnerships.--
       ``(1) In general.--The Secretary may make a grant to a 
     State under this subpart only if the State agrees to 
     distribute the amount described in paragraph (2) through a 
     competitive subgrant process in accordance with subpart 2.
       ``(2) Amount described.--
       ``(A) In general.--The amount described in this paragraph 
     for a State for any fiscal year is 50 percent of the funds 
     that the State receives under this subpart for the year that 
     remain after the State makes the reservations described in 
     subsection (b) and the allotments described in subsection 
     (c)(2).
       ``(B) Limitation.--In no case may the amount described in 
     this paragraph exceed a maximum amount calculated by 
     multiplying the total amount of the funds that a State 
     receives under this subpart for a fiscal year that the State 
     does not reserve under subsection (b) by a percentage, 
     selected by the State, that shall be not less than 15 nor 
     more than 20 percent.
       ``(e) Authorized State Activities.--The authorized State 
     activities referred to in subsection (b)(1)(A) are the 
     following:
       ``(1) Reforming teacher certification, recertification, or 
     licensure requirements to ensure that--
       ``(A) teachers have the necessary teaching skills and 
     academic content knowledge in the subject areas in which they 
     are assigned to teach;
       ``(B) teacher certification, recertification, or licensure 
     requirements are aligned with the State's challenging State 
     academic content standards; and
       ``(C) teachers have the knowledge and skills necessary to 
     help students meet challenging State student achievement 
     standards.
       ``(2) Carrying out programs that--
       ``(A) include support during the initial teaching or 
     leadership experience, such as mentoring programs that--
       ``(i) provide--

       ``(I) mentoring to beginning teachers from veteran teachers 
     with expertise in the same subject matter that the beginning 
     teachers will be teaching; or
       ``(II) similar mentoring to principals or superintendents;

       ``(ii) provide mentors time for activities such as 
     coaching, observing, and assisting the teachers or school 
     leaders who are mentored; and
       ``(iii) use standards or assessments for guiding beginning 
     teachers that are consistent with the State's student 
     achievement standards and with the requirements for 
     professional development activities under section 2033; and
       ``(B) establish, expand, or improve alternative routes to 
     State certification of teachers, especially in the areas of 
     mathematics and science, for highly qualified individuals 
     with a baccalaureate degree, including mid-career 
     professionals from other occupations, paraprofessionals, 
     former military personnel, and recent college or university 
     graduates with records of academic distinction who 
     demonstrate the potential to become highly effective 
     teachers.
       ``(3) Developing and implementing effective mechanisms to 
     assist local educational agencies and schools in effectively 
     recruiting and retaining highly qualified and effective 
     teachers and principals.
       ``(4) Reforming tenure systems and implementing teacher 
     testing and other procedures to expeditiously remove 
     ineffective teachers from the classroom.
       ``(5) Developing enhanced performance systems to measure 
     the effectiveness of specific professional development 
     programs and strategies.
       ``(6) Providing technical assistance to local educational 
     agencies consistent with this part.
       ``(7) Funding projects to promote reciprocity of teacher 
     certification or licensure between or among States, except 
     that no reciprocity agreement developed under this paragraph 
     or developed using funds provided under this part may lead to 
     the weakening of any State teaching certification or 
     licensing requirement.
       ``(8) Developing or assisting local educational agencies in 
     the development and utilization of proven, innovative 
     strategies to deliver intensive professional development 
     programs that are both cost-effective and easily accessible, 
     such as through the use of technology and distance learning.
       ``(9) Providing assistance to local educational agencies 
     for the development and implementation of innovative 
     professional development programs that train teachers to use 
     technology to

[[Page 8910]]

     improve teaching and learning and are consistent with the 
     requirements of section 2033.
       ``(10) Developing or assisting local educational agencies 
     in developing merit-based performance systems, rigorous 
     assessments for teachers, and strategies which provide 
     differential and bonus pay for teachers in high-need subject 
     areas such as reading, math, and science and in high-poverty 
     schools and districts.
       ``(11) Providing assistance to local educational agencies 
     for the development and implementation of professional 
     development programs for principals that enable them to be 
     effective school leaders and prepare all students to achieve 
     challenging State content and student achievement standards, 
     including the development and support of school leadership 
     academies to help exceptionally talented aspiring or current 
     principals and superintendents become outstanding managers 
     and educational leaders.
       ``(12) Developing, or assisting local educational agencies 
     in developing, teacher advancement initiatives that promote 
     professional growth and emphasize multiple career paths, such 
     as career teacher, mentor teacher, and master teacher career 
     paths, with pay differentiation.
       ``(f) Coordination.--States receiving grants under section 
     202 of the Higher Education Act of 1965 shall coordinate the 
     use of such funds with activities carried out under this 
     section.

     ``SEC. 2013. APPLICATIONS BY STATES.

       ``(a) In General.--To be eligible to receive a grant under 
     this subpart, a State 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 the following:
       ``(1) A description of how the State will ensure that a 
     local educational agency receiving a subgrant under subpart 3 
     will comply with the requirements of such subpart.
       ``(2) A description of how the State will use funds under 
     this part to meet the requirements of section 1119(a)(2).
       ``(3) A description of how the State will coordinate 
     professional development activities authorized under this 
     part with professional development activities provided under 
     other Federal, State, and local programs, including those 
     authorized under title I, part A of title III, parts A and B 
     of title V, and (where applicable) the Individuals with 
     Disabilities Education Act and the Carl D. Perkins Vocational 
     and Technical Education Act. The application shall also 
     describe the comprehensive strategy that the State will take 
     as part of such coordination effort, to ensure that teachers 
     are trained in the utilization of technology so that 
     technology and its applications are effectively used in the 
     classroom to improve teaching and learning in all curriculum 
     and content areas, as appropriate.
       ``(4) A description of how the State will encourage the 
     development of proven, innovative strategies to deliver 
     intensive professional development programs that are both 
     cost-effective and easily accessible, such as through the use 
     of technology and distance learning.
       ``(5) A description of how the State will ensure that local 
     educational agencies will comply with the requirements under 
     section 2033, especially with respect to ensuring the 
     participation of teachers, principals, and parents.
       ``(c) Application Approval.--A State application submitted 
     to the Secretary under this section shall be deemed approved 
     by the Secretary unless the Secretary makes a written 
     determination, within 90 days after receiving the 
     application, that the application is in violation of the 
     provisions of this subpart. The Secretary shall not finally 
     disapprove a State application except after giving the State 
     notice and opportunity for a hearing.

               ``Subpart 2--Math and Science Partnerships

     ``SEC. 2021. PURPOSE.

       ``The purpose of this subpart is to improve the achievement 
     of students in the areas of mathematics and science by 
     encouraging States, institutions of higher education, and 
     local educational agencies to participate in programs that--
       ``(1) focus on education and training of mathematics and 
     science teachers that improves teachers' knowledge and skills 
     and encourages intellectual growth;
       ``(2) improve mathematics and science teaching by 
     encouraging institutions of higher education to assume 
     greater responsibility for improving mathematics and science 
     teacher education through the establishment of a 
     comprehensive, integrated system of recruiting, training, and 
     advising such teachers; and
       ``(3) bring mathematics and science teachers in elementary 
     and secondary schools together with scientists, 
     mathematicians, and engineers to increase the subject matter 
     knowledge of teachers and improve their teaching skills 
     through the use of sophisticated laboratory equipment and 
     work space, computing facilities, libraries, and other 
     resources that institutions of higher education are better 
     able to provide than the schools.

     ``SEC. 2022. APPLICATION REQUIREMENTS.

       ``(a) In General.--An eligible partnership seeking to 
     receive a subgrant from a State under this subpart shall 
     submit an application to the State at such time, in such 
     manner, and accompanied by such information as the State may 
     require.
       ``(b) Partnership Application Contents.--Each such 
     application shall include--
       ``(1) an assessment of the teacher quality and professional 
     development of all the schools and agencies participating in 
     the eligible partnership with respect to the teaching and 
     learning of mathematics and science;
       ``(2) a description of how the activities to be carried out 
     by the eligible partnership will be aligned with State 
     academic content standards in mathematics and science and 
     with other educational reform activities that promote student 
     achievement in mathematics and science;
       ``(3) a description of how the activities to be carried out 
     by the eligible partnership will be based on a review of 
     relevant research, and an explanation of why the activities 
     are expected to improve student achievement and to strengthen 
     the quality of mathematics and science instructions; and
       ``(4) a description of--
       ``(A) how the eligible partnership will carry out the 
     activities described in section 2023(c); and
       ``(B) the eligible partnership's evaluation and 
     accountability plan described in section 2024.

     ``SEC. 2023. MATH AND SCIENCE PARTNERSHIP SUBGRANTS.

       ``(a) In General.--From the amount described in section 
     2012(d), the State educational agency, working in conjunction 
     with the State agency for higher education (if such agencies 
     are separate), shall award subgrants on a competitive basis 
     to eligible partnerships to enable such partnerships to carry 
     out activities described in subsection (c).
       ``(b) Duration.--The State shall award subgrants under this 
     subpart for a period of not less than 2 and not more than 5 
     years.
       ``(c) Authorized Activities.--A recipient of funds provided 
     under this subpart may use the funds for the following 
     activities related to elementary or secondary schools:
       ``(1) Establishing and operating mathematics and science 
     summer professional development workshops or institutes for 
     elementary and secondary school teachers that--
       ``(A) shall--
       ``(i) directly relate to the curriculum and content areas 
     in which the teacher provides instruction, and focus only 
     secondarily on pedagogy;
       ``(ii) enhance the ability of a teacher to understand and 
     use the State's academic content standards for mathematics 
     and science and to select appropriate curricula;
       ``(iii) train teachers to use curricula that are--

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

       ``(iv) provide supplemental assistance and follow-up 
     training during the school year for summer institute 
     graduates; and
       ``(B) may include--
       ``(i) programs that provide prospective teachers and novice 
     teachers opportunities to work under the guidance of 
     experienced teachers and college faculty;
       ``(ii) instruction in the use of data and assessments to 
     inform and instruct classroom practice; and
       ``(iii) professional development activities, including 
     supplemental and follow-up activities, such as curriculum 
     alignment, distance learning, and activities that train 
     teachers to utilize technology in the classroom.
       ``(2) Recruiting to the teaching profession--
       ``(A) students studying mathematics, engineering, and 
     science; or
       ``(B) mathematicians, engineers, and scientists currently 
     working in the field.
       ``(3) Establishing and operating programs to bring teachers 
     into contact with working scientists, mathematicians, and 
     engineers, to expand teacher content knowledge of and 
     research in science and mathematics.
       ``(d) Priority.--In awarding subgrants under this subpart, 
     States shall give priority to applications seeking funding 
     for the activity described in subsection (c)(1).
       ``(e) Coordination.--Partnerships receiving grants under 
     section 203 of the Higher Education Act of 1965 (20 U.S.C. 
     1023) shall coordinate the use of such funds with any related 
     activities carried out by such partnership with funds made 
     available under this subpart.

     ``SEC. 2024. EVALUATION AND ACCOUNTABILITY PLAN.

       ``(a) In General.--Each eligible partnership receiving a 
     subgrant under this subpart shall develop an evaluation and 
     accountability plan for activities assisted under this 
     subpart that includes rigorous performance objectives that 
     measure the impact of activities funded under this subpart.
       ``(b) Contents.--The plan--
       ``(1) shall include measurable goals to increase the number 
     of mathematics and science teachers who participate in 
     content-based professional development activities; and
       ``(2) may include objectives and measures for--
       ``(A) improved student achievement on State mathematics and 
     science assessments;
       ``(B) increased participation by students in advanced 
     courses in mathematics and science;
       ``(C) increased percentages of elementary school teachers 
     with academic majors or minors, or group majors or minors, in 
     mathematics, engineering, or the sciences; and
       ``(D) increased percentages of secondary school classes in 
     mathematics and science taught by teachers with academic 
     majors in mathematics and science, respectively.

     ``SEC. 2025. REPORTS; REVOCATION OF SUBGRANTS.

       ``(a) Reports.--Each eligible partnership receiving a 
     subgrant under this subpart annually shall report to the 
     State regarding the eligible partnership's progress in 
     meeting the performance objectives described in section 2024.

[[Page 8911]]

       ``(b) Revocation.--If the State determines that an eligible 
     partnership that receives a subgrant under this subpart for 5 
     years is not making substantial progress in meeting the 
     performance objectives described in section 2024 by the end 
     of the third year of the subgrant, the subgrant payments 
     shall not be made for the fourth and fifth years.

     ``SEC. 2026. DEFINITIONS.

       ``In this subpart:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means a partnership that--
       ``(A) shall include--
       ``(i) a State educational agency;
       ``(ii) a mathematics or science department of a private 
     independent institution of higher education or a State-
     supported public institution of higher education; and
       ``(iii) a high need local educational agency; and
       ``(B) may include--
       ``(i) another institution of higher education or the 
     teacher training department of such an institution;
       ``(ii) additional local educational agencies, public 
     charter schools, public or private elementary or secondary 
     schools, or a consortium of such schools;
       ``(iii) a business; or
       ``(iv) a nonprofit organization of demonstrated 
     effectiveness, including a museum or research institution.
       ``(2) Summer professional development workshop or 
     institute.--The term `summer professional development 
     workshop or institute' means a workshop or institute that--
       ``(A) is conducted during a period of not less than 2 
     weeks;
       ``(B) includes as a component a program that provides 
     direct interaction between students and faculty; and
       ``(C) provides for follow-up training during the academic 
     year that is conducted in the classroom for a period of not 
     less than 3 consecutive or nonconsecutive days, except that--
       ``(i) if the workshop or institute is conducted during a 
     two-week period, the follow-up training shall be conducted 
     for a period of at least 4 days; and
       ``(ii) if the follow-up training is for teachers in rural 
     school districts, it may be conducted through distance 
     learning.

          ``Subpart 3--Subgrants to Local Educational Agencies

     ``SEC. 2031. LOCAL USE OF FUNDS.

       ``(a) In General.--Subject to subsection (b), each local 
     educational agency that receives a subgrant under this 
     subpart may use the subgrant to carry out the following 
     activities:
       ``(1) Initiatives to assist in recruiting and hiring fully 
     qualified teachers who will be assigned teaching positions 
     within their field, including--
       ``(A) providing signing bonuses or other financial 
     incentives, such as differential pay, for teachers to teach 
     in academic subject areas in which there exists a shortage of 
     such fully qualified teachers within a school or the local 
     educational agency;
       ``(B) establishing programs that--
       ``(i) recruit professionals from other fields and provide 
     such professionals with alternative routes to teacher 
     certification; and
       ``(ii) provide increased opportunities for minorities, 
     individuals with disabilities, and other individuals 
     underrepresented in the teaching profession; and
       ``(C) implementing hiring policies that ensure 
     comprehensive recruitment efforts as a way to expand the 
     applicant pool, such as through identifying teachers 
     certified through alternative routes, coupled with a system 
     of intensive screening designed to hire the most qualified 
     applicant.
       ``(2) Initiatives to promote retention of highly qualified 
     teachers and principals, particularly within elementary and 
     secondary schools with a high percentage of low-achieving 
     students, including programs that provide--
       ``(A) mentoring to newly hired teachers, such as from 
     master teachers, or principals or superintendents;
       ``(B) incentives, including financial incentives, to retain 
     teachers who have a record of success in helping low-
     achieving students improve their academic success; or
       ``(C) incentives, including financial incentives, to 
     principals who have a record of improving the performance of 
     all students, but particularly students from economically 
     disadvantaged families and students from racial and ethnic 
     minority groups.
       ``(3) Programs and activities that are designed to improve 
     the quality of the teacher force, such as--
       ``(A) innovative professional development programs (which 
     may be through partnerships including institutions of higher 
     education), including programs that train teachers and 
     principals to utilize technology to improve teaching and 
     learning, are consistent with the requirements of section 
     2033, and are coordinated with part B of title V;
       ``(B) development and utilization of proven, cost-effective 
     strategies for the implementation of professional development 
     activities, such as through the utilization of technology and 
     distance learning;
       ``(C) tenure reform;
       ``(D) merit pay;
       ``(E) testing of elementary and secondary school teachers 
     in the subject areas taught by such teachers;
       ``(F) professional development programs that provide 
     instruction in how to teach children with different learning 
     styles, particularly children with disabilities and children 
     with special learning needs (including those who are gifted 
     and talented); and
       ``(G) professional development programs that provide 
     instruction in methods of improving student behavior in the 
     classroom and how to identify early and appropriate 
     interventions to help children described in subparagraph (F) 
     learn.
       ``(4) Teacher opportunity payments, consistent with section 
     2034.
       ``(5) Professional activities designed to improve the 
     quality of principals and superintendents, including the 
     development and support of academies to help exceptionally 
     talented aspiring or current principals and superintendents 
     become outstanding managers and educational leaders.
       ``(6) Hiring fully qualified teachers, including teachers 
     who become fully qualified through State and local 
     alternative routes, and special education teachers, in order 
     to reduce class size, particularly in the early grades.
       ``(7) Teacher advancement initiatives that promote 
     professional growth and emphasize multiple career paths, such 
     as career teacher, mentor teacher, and master teacher career 
     paths, with pay differentiation.
       ``(b) Special Rule.--
       ``(1) In general.--For any fiscal year for which the amount 
     described in section 2012(d)(2)(A) for a State is less than 
     15 percent of the total amount of the funds that the State 
     receives under this subpart for the year that the State does 
     not reserve under section 2012(b), each local educational 
     agency that receives a subgrant under this subpart from the 
     State shall use the funds to comply with paragraph (2).
       ``(2) Requirement.--A local educational agency required to 
     comply with this paragraph shall use not less than the amount 
     expended by the agency under section 2206(b) of this Act (as 
     in effect on the day before the date of the enactment of the 
     No Child Left Behind Act of 2001), for the fiscal year 
     preceding the year in which such enactment occurs, to carry 
     out professional development activities in mathematics and 
     science.

     ``SEC. 2032. LOCAL APPLICATIONS.

       ``(a) In General.--A local educational agency seeking to 
     receive a subgrant from a State under this subpart shall 
     submit an application to the State--
       ``(1) at such time as the State shall require; and
       ``(2) which is coordinated with other programs under this 
     Act, or other Acts, as appropriate.
       ``(b) Local Application Contents.--The local application 
     described in subsection (a), shall include, at a minimum, the 
     following:
       ``(1) An assurance that the local educational agency will 
     target funds to schools within the jurisdiction of the local 
     educational agency that--
       ``(A) have the lowest proportion of fully qualified 
     teachers;
       ``(B) have the largest average class size; or
       ``(C) are identified for school improvement under section 
     1116(b).
       ``(2) A description of how the local educational agency 
     will coordinate professional development activities 
     authorized under this subpart with professional development 
     activities provided through other Federal, State, and local 
     programs, including those authorized under title I, part A of 
     title III, parts A and B of title V, and (where applicable) 
     the Individuals with Disabilities Education Act and the Carl 
     D. Perkins Vocational and Technical Education Act.
       ``(3) A description of how the local educational agency 
     will integrate funds under this subpart with funds received 
     under part B of title V that are used for professional 
     development to train teachers to utilize technology to 
     improve teaching and learning.
       ``(4) A description of how the local educational agency has 
     collaborated with teachers, principals, parents, and 
     administrators in the preparation of the application.

     ``SEC. 2033. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

       ``(a) Requirements for Professional Development 
     Activities.--Professional development activities under this 
     subpart shall--
       ``(1) meet the requirements of section 1119(a)(2);
       ``(2) support professional development activities that give 
     teachers, principals, and administrators the knowledge and 
     skills to provide students with the opportunity to meet 
     challenging State academic content standards and student 
     achievement standards;
       ``(3) support the recruiting, hiring, and training of fully 
     qualified teachers, including teachers fully qualified 
     through State and local alternative routes;
       ``(4) advance teacher understanding of effective 
     instructional strategies based on scientifically based 
     research for improving student achievement, at a minimum, in 
     reading or language arts and mathematics;
       ``(5) be directly related to the curriculum and content 
     areas in which the teacher provides instruction, except that 
     this paragraph shall not apply to subparagraphs (F) and (G) 
     of section 2031(3);
       ``(6) be designed to enhance the ability of a teacher to 
     understand and use the State's standards for the subject area 
     in which the teacher provides instruction;
       ``(7) be tied to scientifically based research 
     demonstrating the effectiveness of such professional 
     development activities or programs in increasing student 
     achievement or substantially increasing the knowledge and 
     teaching skills of teachers;
       ``(8) be of sufficient intensity and duration (not to 
     include 1-day or short-term workshops

[[Page 8912]]

     and conferences) to have a positive and lasting impact on the 
     teacher's performance in the classroom;
       ``(9) be developed with extensive participation of 
     teachers, principals, parents, and administrators of schools 
     to be served under this subpart;
       ``(10) be designed to give teachers of limited English 
     proficient children, and other teachers and instructional 
     staff, the knowledge and skills to provide instruction and 
     appropriate language and academic support services to such 
     children, including the appropriate use of curriculum and 
     assessments;
       ``(11) to the extent appropriate, provide training for 
     teachers and principals in the use of technology so that 
     technology and its applications are effectively used in the 
     classroom to improve teaching and learning in the curriculum 
     and academic content areas in which the teachers provide 
     instruction;
       ``(12) as a whole, be regularly evaluated for their impact 
     on increased teacher effectiveness and improved student 
     achievement, with the findings of such evaluations used to 
     improve the quality of professional development; and
       ``(13) provide instruction in methods of teaching children 
     with special needs.
       ``(b) Professional Development Activities.--Professional 
     development activities under this subpart may include--
       ``(1) instruction in the use of data and assessments to 
     inform and instruct classroom practice;
       ``(2) instruction in ways that teachers, principals, pupil 
     services personnel, and school administrators may work more 
     effectively with parents;
       ``(3) the forming of partnerships with institutions of 
     higher education to establish school-based teacher training 
     programs that provide prospective teachers and novice 
     teachers with an opportunity to work under the guidance of 
     experienced teachers and college faculty;
       ``(4) the creation of programs for paraprofessionals 
     (assisting teachers employed by a local educational agency 
     receiving assistance under this part) to obtain the education 
     necessary for such paraprofessionals to become licensed and 
     certified teachers; and
       ``(5) activities that provide follow-up training to 
     teachers who have participated in professional development 
     activities which are designed to ensure that the knowledge 
     and skills learned by the teacher are implemented in the 
     classroom.
       ``(c) Accountability.--
       ``(1) In general.--If, after any fiscal year, a State 
     determines that the programs or activities funded by a local 
     educational agency fail to meet the requirements of 
     subsection (a), the State shall notify the agency that--
       ``(A) it may be subject to paragraph (2); and
       ``(B) technical assistance is available from the State to 
     help the agency meet those requirements.
       ``(2) Requirement to provide teacher opportunity 
     payments.--A local educational agency that has been notified 
     by a State for 2 consecutive years under paragraph (1) shall 
     expend under section 2034 for the succeeding fiscal year a 
     proportion of the amount the agency receives under this 
     subpart that is equal to the proportion of the amount the 
     agency received under this part for the preceding fiscal year 
     that the agency used for professional development.

     ``SEC. 2034. TEACHER OPPORTUNITY PAYMENTS.

       ``(a) In General.--A local educational agency receiving 
     funds under this subpart may (or, in the case of a local 
     educational agency described in section 2033(c)(2), shall) 
     provide funds directly to a teacher or a group of teachers 
     seeking opportunities to participate in a professional 
     development activity of their choice that meets the 
     requirements of section 2033(a) and is selected in 
     consultation with the principal in order to coordinate such 
     professional development with other reform efforts at the 
     school.
       ``(b) Notice to Teachers.--Local educational agencies 
     distributing funds under this section shall establish and 
     implement a timely process through which proper notice of 
     availability of funds will be given to all teachers within 
     schools identified by the agency and shall develop a process 
     whereby teachers will have regular consultation with and be 
     specifically recommended by principals to participate in such 
     program by virtue of--
       ``(1) a teacher not being fully qualified to teach in the 
     subject or subjects in which they teach; or
       ``(2) a teacher's need for additional assistance to ensure 
     that the teacher's students make progress toward meeting 
     challenging State academic content standards and student 
     achievement standards.
       ``(c) Selection of Teachers.--If adequate funding is not 
     available to provide payments under this section to all 
     teachers seeking such assistance or identified as needing 
     such assistance pursuant to subsection (b), a local 
     educational agency shall establish procedures for selecting 
     teachers that give priority to teachers described in 
     paragraph (1) or (2) of subsection (b).

            ``Subpart 4--Mid-Career Transitions to Teaching

                ``CHAPTER 1--TROOPS-TO-TEACHERS PROGRAM

     ``SEC. 2041. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

       ``(a) Program Authorized.--The Secretary may carry out a 
     program (to be known as the `Troops-to-Teachers Program')--
       ``(1) to assist eligible members and former members of the 
     Armed Forces described in section 2042 to obtain 
     certification or licensure as fully qualified elementary 
     school teachers, secondary school teachers, or vocational or 
     technical teachers; and
       ``(2) to facilitate the employment of such members in 
     elementary schools or secondary schools or as vocational or 
     technical teachers.
       ``(b) Administration of Program.--The Secretary shall enter 
     into a memorandum of agreement with the Secretary of Defense 
     under which the Secretary of Defense, acting through the 
     Defense Activity for Non-Traditional Education Support of the 
     Department of Defense, will perform the actual administration 
     of the Program, other than section 2045. Using funds 
     appropriated to the Secretary to carry out this chapter, the 
     Secretary shall transfer to the Secretary of Defense such 
     amounts as may be necessary to administer the Program 
     pursuant to the memorandum of agreement.
       ``(c) Information Regarding Program.--The Secretary shall 
     provide to the Secretary of Defense, for distribution as part 
     of preseparation counseling provided under section 1142 of 
     title 10, United States Code, to members of the Armed Forces 
     described in section 2042, information regarding the Troops-
     to-Teachers Program and applications to participate in the 
     program.
       ``(d) Placement Assistance and Referral Services.--As part 
     of the Troops-to-Teachers Program, the Secretary may, with 
     the agreement of the Secretary of Defense, provide placement 
     assistance and referral services regarding employment 
     opportunities with local educational agencies to members of 
     the Armed Forces who are discharged or released from active 
     duty under other than adverse conditions. Unless the member 
     is also selected to participate in the Program under section 
     2042, a member receiving placement assistance and referral 
     services under the authority of this subsection is not 
     eligible for financial assistance under section 2043.

     ``SEC. 2042. RECRUITMENT AND SELECTION OF PROGRAM 
                   PARTICIPANTS.

       ``(a) Eligible Members.--The following members and former 
     members of the Armed Forces are eligible for selection to 
     participate in the Troops-to-Teachers Program:
       ``(1) Any member who--
       ``(A) on or after October 1, 1999, becomes entitled to 
     retired or retainer pay in the manner provided in title 10 or 
     title 14, United States Code; or
       ``(B) on or after the date of the enactment of the No Child 
     Left Behind Act of 2001, has an approved date of voluntary 
     retirement and, as of the date the member submits an 
     application to participate in the Program, has one year or 
     less of active duty remaining before retirement.
       ``(2) Any member who, on or after the date of the enactment 
     of the No Child Left Behind Act of 2001--
       ``(A) is separated or released from active duty after six 
     or more years of continuous active duty immediately before 
     the separation or release; and
       ``(B) executes a reserve commitment agreement for a period 
     of three years under subsection (e)(2).
       ``(3) Any member who, on or after the date of the enactment 
     of the No Child Left Behind Act of 2001, is retired or 
     separated for physical disability under chapter 61 of title 
     10, United States Code.
       ``(4) Any member who--
       ``(A) during the period beginning on October 1, 1990, and 
     ending on September 30, 1999, was involuntarily discharged or 
     released from active duty for purposes of a reduction of 
     force after six or more years of continuous active duty 
     immediately before the discharge or release; or
       ``(B) applied for the teacher placement program 
     administered under section 1151 of title 10, United States 
     Code, before its repeal, and who satisfied the eligibility 
     criteria specified in subsection (c) of such section 1151.
       ``(b) Submission of Applications.--
       ``(1) Form and submission.--Selection of eligible members 
     and former members of the Armed Forces to participate in the 
     Troops-to-Teachers Program shall be made on the basis of 
     applications submitted to the Secretary within the time 
     periods specified in paragraph (2). An application shall be 
     in such form and contain such information as the Secretary 
     may require.
       ``(2) Time for submission.--An application shall be 
     considered to be submitted on a timely basis under paragraph 
     (1) if--
       ``(A) in the case of a member or former member of the Armed 
     Forces described in paragraph (1), (2), or (3) of subsection 
     (a), the application is submitted not later than four years 
     after the date on which the member is retired or separated or 
     released from active duty, whichever applies to the member; 
     or
       ``(B) in the case of a member or former member described in 
     subsection (a)(4), the application is submitted not later 
     than September 30, 2003.
       ``(c) Selection Criteria.--
       ``(1) Establishment.--Subject to paragraphs (2) and (3), 
     the Secretary shall prescribe the criteria to be used to 
     select eligible members and former members of the Armed 
     Forces to participate in the Troops-to-Teachers Program.
       ``(2) Educational background.--If a member or former member 
     of the Armed Forces described in paragraph (1), (2), or (3) 
     of subsection (a) is applying for assistance for placement as 
     an elementary or secondary school teacher, the Secretary 
     shall require the member to have received a baccalaureate or 
     advanced degree from an accredited institution of higher 
     education. If such a member is applying for assistance for 
     placement as a vocational or technical teacher, the Secretary 
     shall require the member--
       ``(A) to have received the equivalent of one year of 
     college from an accredited institution of

[[Page 8913]]

     higher education and have six or more years of military 
     experience in a vocational or technical field; or
       ``(B) to otherwise meet the certification or licensure 
     requirements for a vocational or technical teacher in the 
     State in which the member seeks assistance for placement 
     under the Program.
       ``(3) Honorable service.--A member or former member of the 
     Armed Forces is eligible to participate in the Troops-to-
     Teachers Program only if the member's last period of service 
     in the Armed Forces was characterized as honorable. If the 
     member is selected to participate in the Program before the 
     retirement of the member or the separation or release of the 
     member from active duty, the member may continue to 
     participate in the Program only if, upon the retirement or 
     separation or release from active duty, the member's last 
     period of service is characterized as honorable.
       ``(d) Selection Priorities.--In selecting eligible members 
     and former members of the Armed Forces to receive assistance 
     for placement as elementary or secondary school teachers or 
     vocational or technical teachers, the Secretary shall give 
     priority to members who have educational or military 
     experience in science, mathematics, special education, or 
     vocational or technical subjects and agree to seek employment 
     as science, mathematics, or special education teachers in 
     elementary or secondary schools or in other schools under the 
     jurisdiction of a local educational agency.
       ``(e) Other Conditions on Selection.--
       ``(1) Selection subject to funding.--The Secretary may not 
     select an eligible member or former member of the Armed 
     Forces to participate in the Troops-to-Teachers Program under 
     this section and receive financial assistance under section 
     2043 unless the Secretary has sufficient appropriations for 
     the Program available at the time of the selection to satisfy 
     the obligations to be incurred by the United States under 
     section 2043 with respect to the member.
       ``(2) Reserve commitment agreement.--The Secretary may not 
     select an eligible member or former member of the Armed 
     Forces described in subsection (a)(2)(A) to participate in 
     the Troops-to-Teachers Program under this section and receive 
     financial assistance under section 2043 unless--
       ``(A) the Secretary notifies the Secretary concerned and 
     the member that the Secretary has reserved a full stipend or 
     bonus under section 2043 for the member; and
       ``(B) the member executes a written agreement with the 
     Secretary concerned to serve as a member of the Selected 
     Reserve of a reserve component of the Armed Forces for a 
     period of three years (in addition to any other reserve 
     commitment the member may have).

     ``SEC. 2043. PARTICIPATION AGREEMENT AND FINANCIAL 
                   ASSISTANCE.

       ``(a) Participation Agreement.--An eligible member or 
     former member of the Armed Forces selected to participate in 
     the Troops-to-Teachers Program under section 2042 and receive 
     financial assistance under this section shall be required to 
     enter into an agreement with the Secretary in which the 
     member agrees--
       ``(1) to obtain, within such time as the Secretary may 
     require, certification or licensure as a fully qualified 
     elementary school teacher, secondary school teacher, or 
     vocational or technical teacher; and
       ``(2) to accept an offer of full-time employment as a fully 
     qualified elementary school teacher, secondary school 
     teacher, or vocational or technical teacher for not less than 
     three school years with a local educational agency or public 
     charter school, to begin the school year after obtaining that 
     certification or licensure.
       ``(b) Violation of Participation Agreement; Exceptions.--A 
     participant in the Troops-to-Teachers Program shall not be 
     considered to be in violation of the participation agreement 
     entered into under subsection (a) during any period in which 
     the participant--
       ``(1) is pursuing a full-time course of study related to 
     the field of teaching at an institution of higher education;
       ``(2) is serving on active duty as a member of the Armed 
     Forces;
       ``(3) is temporarily totally disabled for a period of time 
     not to exceed three years as established by sworn affidavit 
     of a qualified physician;
       ``(4) is unable to secure employment for a period not to 
     exceed 12 months by reason of the care required by a spouse 
     who is disabled;
       ``(5) is seeking and unable to find full-time employment as 
     a fully qualified teacher in an elementary or secondary 
     school or as a vocational or technical teacher for a single 
     period not to exceed 27 months; or
       ``(6) satisfies the provisions of additional reimbursement 
     exceptions that may be prescribed by the Secretary.
       ``(c) Stipend for Participants.--
       ``(1) Stipend authorized.--Subject to paragraph (2), the 
     Secretary may pay to a participant in the Troops-to-Teachers 
     Program selected under section 2042 a stipend in an amount up 
     to $5,000.
       ``(2) Limitation.--The total number of stipends that may be 
     paid under paragraph (1) in any fiscal year may not exceed 
     3,000.
       ``(d) Bonus for Participants.--
       ``(1) Bonus authorized.--Subject to paragraph (2), the 
     Secretary may, in lieu of paying a stipend under subsection 
     (c), pay a bonus of $10,000 to a participant in the Troops-
     to-Teachers Program selected under section 2042 who agrees in 
     the participation agreement under subsection (a) to accept 
     full-time employment as a fully qualified elementary school 
     teacher, secondary school teacher, or vocational or technical 
     teacher for not less than three years in a high need school.
       ``(2) Limitation.--The total number of bonuses that may be 
     paid under paragraph (1) in any fiscal year may not exceed 
     1,000.
       ``(3) High need school defined.--For purposes of this 
     subsection, the term `high need school' means a public 
     elementary school, public secondary school, or public charter 
     school that meets one or more of the following criteria:
       ``(A) At least 50 percent of the students enrolled in the 
     school were children counted under subsection (c) of section 
     1124 for purposes of making grants under such section to 
     local educational agencies, when such counting was most 
     recently performed.
       ``(B) The school has a large percentage of students who 
     qualify for assistance under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.).
       ``(C) The school meets any other criteria established by 
     the Secretary in consultation with the National Assessment 
     Governing Board.
       ``(e) Treatment of Stipend and Bonus.--A stipend or bonus 
     paid under this section to a participant in the Troops-to-
     Teachers Program shall be taken into account in determining 
     the eligibility of the participant for Federal student 
     financial assistance provided under title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.).
       ``(f) Reimbursement Under Certain Circumstances.--
       ``(1) Reimbursement required.--A participant in the Troops-
     to-Teachers Program who is paid a stipend or bonus under this 
     section shall be required to repay the stipend or bonus under 
     the following circumstances:
       ``(A) The participant fails to obtain teacher certification 
     or licensure or employment as a fully qualified elementary 
     school teacher, secondary school teacher, or vocational or 
     technical teacher as required by the participation agreement 
     under subsection (a).
       ``(B) The participant voluntarily leaves, or is terminated 
     for cause, from employment as an elementary school teacher, 
     secondary school teacher, or vocational or technical teacher 
     during the three years of required service in violation of 
     the participation agreement.
       ``(C) The participant executed a written agreement with the 
     Secretary concerned under section 2042(e)(2) to serve as a 
     member of a reserve component of the Armed Forces for a 
     period of three years and fails to complete the required term 
     of service.
       ``(2) Amount of reimbursement.--A participant required to 
     reimburse the Secretary for a stipend or bonus paid to the 
     participant under this section shall pay an amount that bears 
     the same ratio to the amount of the stipend or bonus as the 
     unserved portion of required service bears to the three years 
     of required service. Any amount owed by the participant shall 
     bear interest at the rate equal to the highest rate being 
     paid by the United States on the day on which the 
     reimbursement is determined to be due for securities having 
     maturities of ninety days or less and shall accrue from the 
     day on which the participant is first notified of the amount 
     due.
       ``(3) Treatment of obligation.--The obligation to reimburse 
     the Secretary under this subsection is, for all purposes, a 
     debt owing the United States. A discharge in bankruptcy under 
     title 11, United States Code, shall not release a participant 
     from the obligation to reimburse the Secretary.
       ``(4) Exceptions to reimbursement requirement.--A 
     participant shall be excused from reimbursement under this 
     subsection if the participant becomes permanently totally 
     disabled as established by sworn affidavit of a qualified 
     physician. The Secretary may also waive reimbursement in 
     cases of extreme hardship to the participant, as determined 
     by the Secretary.
       ``(g) Relationship to Educational Assistance Under 
     Montgomery GI Bill.--The receipt by a participant in the 
     Troops-to-Teachers Program of a stipend or bonus under this 
     section shall not reduce or otherwise affect the entitlement 
     of the participant to any benefits under chapter 30 of title 
     38, United States Code, or chapter 1606 of title 10, United 
     States Code.

     ``SEC. 2044. PARTICIPATION BY STATES.

       ``(a) Discharge of State Activities Through Consortia of 
     States.--The Secretary may permit States participating in the 
     Troops-to-Teachers Program to carry out activities authorized 
     for such States under the Program through one or more 
     consortia of such States.
       ``(b) Assistance to States.--
       ``(1) Grants authorized.--Subject to paragraph (2), the 
     Secretary may make grants to States participating in the 
     Troops-to-Teachers Program, or to consortia of such States, 
     in order to permit such States or consortia of States to 
     operate offices for purposes of recruiting eligible members 
     and former members of the Armed Forces for participation in 
     the Program and facilitating the employment of participants 
     in the Program as elementary school teachers, secondary 
     school teachers, and vocational or technical teachers.
       ``(2) Limitation.--The total amount of grants under 
     paragraph (1) in any fiscal year may not exceed $4,000,000.

     ``SEC. 2045. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER 
                   CERTIFICATION PROGRAMS.

       ``(a) Development, Implementation and Demonstration.--The 
     Secretary may enter into a memorandum of agreement with a 
     State, an institution of higher education, or a consortia of 
     States or institutions of higher education, to develop, 
     implement, and demonstrate teacher certification programs for 
     members of the Armed

[[Page 8914]]

     Forces described in section 2042(a)(1)(B) for the purpose of 
     assisting such members to consider and prepare for a career 
     as a fully qualified elementary school teacher, secondary 
     school teacher, or vocational or technical teacher upon their 
     retirement from the Armed Forces.
       ``(b) Program Elements.--A teacher certification program 
     under subsection (a) must--
       ``(1) provide recognition of military experience and 
     training as related to licensure or certification 
     requirements;
       ``(2) provide courses of instruction that may be conducted 
     on or near a military installation;
       ``(3) incorporate alternative approaches to achieve teacher 
     certification, such as innovative methods to gaining field-
     based teaching experiences, and assessment of background and 
     experience as related to skills, knowledge, and abilities 
     required of elementary school teachers, secondary school 
     teachers, or vocational or technical teachers;
       ``(4) provide for courses to also be delivered via distance 
     education methods; and
       ``(5) address any additional requirements or specifications 
     as established by the Secretary.
       ``(c) Application Procedures.--A State or institution of 
     higher education (or a consortia of States or institutions of 
     higher education) that has a program leading to State 
     approved teacher certification programs may submit a proposal 
     to the Secretary for consideration under subsection (a). The 
     Secretary shall give preference to proposals that provide for 
     a sharing of the costs to carry out the teacher certification 
     program.
       ``(d) Continuation of Programs.--The purpose of this 
     section is to provide funding to develop, implement, and 
     demonstrate teacher certification programs under subsection 
     (a). Upon successful completion of the demonstration phase, 
     the continued operation of the teacher certification programs 
     shall not be the responsibility of the Secretary.
       ``(e) Funding Limitation.--The total amount obligated by 
     the Secretary under this section in any fiscal year may not 
     exceed $5,000,000.

     ``SEC. 2046. REPORTING REQUIREMENTS.

       ``(a) Report Required.--Not later than March 31 of each 
     year, the Secretary (in consultation with the Secretary of 
     Defense and the Secretary of Transportation) and the 
     Comptroller General shall each submit to Congress a report on 
     the effectiveness of the Troops-to-Teachers Program in the 
     recruitment and retention of qualified personnel by local 
     educational agencies and public charter schools.
       ``(b) Elements of Report.--The report under subsection (a) 
     shall include information on the following:
       ``(1) The number of participants in the Troops-to-Teachers 
     Program.
       ``(2) The schools in which the participants are employed.
       ``(3) The grade levels at which the participants teach.
       ``(4) The subject matters taught by the participants.
       ``(5) The rates of retention of the participants by the 
     local educational agencies and public charter schools 
     employing the participants.
       ``(6) Such other matters as the Secretary or the 
     Comptroller General, as the case may be, considers 
     appropriate.
       ``(c) Recommendations.--The report of the Comptroller 
     General under this section shall also include any 
     recommendations of the Comptroller General regarding any 
     means of improving the Troops-to-Teachers Program, including 
     means of enhancing the recruitment and retention of 
     participants in the Program.

     ``SEC. 2047. DEFINITIONS.

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

                  ``CHAPTER 2--TRANSITION TO TEACHING

     ``SEC. 2048. PROFESSIONALS SEEKING TO CHANGE CAREERS.

       ``(a) Purpose.--The purpose of this section is to address 
     the need of high-need local educational agencies for highly 
     qualified teachers in particular subject areas, such as 
     mathematics, science, foreign languages, bilingual education, 
     and special education, needed by those agencies, following 
     the model of the program under chapter 1, by recruiting, 
     preparing, placing, and supporting career-changing 
     professionals who have knowledge and experience that will 
     help them become such teachers.
       ``(b) Program Authorized.--The Secretary may award grants, 
     contracts, or cooperative agreements to institutions of 
     higher education and public and private nonprofit agencies or 
     organizations to carry out programs authorized by this 
     section.
       ``(c) Application.--Each applicant that desires an award 
     under subsection (b) shall submit an application to the 
     Secretary containing such information as the Secretary 
     requires, including--
       ``(1) a description of the target group of career-changing 
     professionals upon which the applicant will focus its 
     recruitment efforts in carrying out its program under this 
     section, including a description of the characteristics of 
     that target group that shows how the knowledge and experience 
     of its members are relevant to meeting the purpose of this 
     section;
       ``(2) a description of the training that program 
     participants will receive and how that training will relate 
     to their certification as teachers;
       ``(3) a description of how the applicant will collaborate, 
     as needed, with other institutions, agencies, or 
     organizations to recruit, train, place, support, and provide 
     teacher induction programs to program participants under this 
     section, including evidence of the commitment of those 
     institutions, agencies, or organizations to the applicant's 
     program;
       ``(4) a description of how the applicant will evaluate the 
     progress and effectiveness of its program, including--
       ``(A) the program's goals and objectives;
       ``(B) the performance indicators the applicant will use to 
     measure the program's progress; and
       ``(C) the outcome measures that will be used to determine 
     the program's effectiveness; and
       ``(5) such other information and assurances as the 
     Secretary may require.
       ``(d) Uses of Funds and Period of Service.--
       ``(1) Authorized activities.--Funds under this section may 
     be used for--
       ``(A) recruiting program participants, including informing 
     them of opportunities under the program and putting them in 
     contact with other institutions, agencies, or organizations 
     that would train, place, and support them;
       ``(B) training stipends and other financial incentives for 
     program participants, not to exceed $5,000 per participant;
       ``(C) assisting institutions of higher education or other 
     providers of teacher training to tailor their training to 
     meet the particular needs of professionals who are changing 
     their careers to teaching;
       ``(D) placement activities, including identifying high-need 
     local educational agencies with a need for the particular 
     skills and characteristics of the newly trained program 
     participants and assisting those participants to obtain 
     employment in those local educational agencies; and
       ``(E) post-placement induction or support activities for 
     program participants.
       ``(2) Period of service.--A program participant in a 
     program under this section who completes his or her training 
     shall serve in a high-need local educational agency for at 
     least 3 years.
       ``(3) Repayment.--The Secretary shall establish such 
     requirements as the Secretary determines appropriate to 
     ensure that program participants who receive a training 
     stipend or other financial incentive under paragraph (1)(B), 
     but fail to complete their service obligation under paragraph 
     (2), repay all or a portion of such stipend or other 
     incentive.
       ``(e) Equitable Distribution.--To the extent practicable, 
     the Secretary shall make awards under this section that 
     support programs in different geographic regions of the 
     United States.
       ``(f) Definition.--As used in this section, the term 
     `program participants' means career-changing professionals 
     who--
       ``(1) hold at least a baccalaureate degree;
       ``(2) demonstrate interest in, and commitment to, becoming 
     a teacher; and
       ``(3) have knowledge and experience that are relevant to 
     teaching a high-need subject area in a high-need local 
     educational agency.

                          ``Subpart 5--Funding

     ``SEC. 2051. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) In General.--For the purpose of carrying out this 
     part, other than subpart 4, there are authorized to be 
     appropriated $3,600,000,000 for fiscal year 2002 and such 
     sums as may be necessary for each of fiscal years 2003 
     through 2006.
       ``(b) Subpart 4.--For the purpose of carrying out subpart 
     4, there are authorized to be appropriated $50,000,000 for 
     fiscal year 2002 and such sums as may be necessary for each 
     of fiscal years 2003 through 2006.

                    ``Subpart 6--General Provisions

     ``SEC. 2061. DEFINITIONS.

       ``For purposes of this part--
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers one or more academic majors in disciplines or content 
     areas corresponding to the academic subject matter areas in 
     which teachers provide instruction; and
       ``(B) when referring to a specific academic subject matter 
     area, the disciplines or content areas in which academic 
     majors are offered by the arts and sciences organizational 
     unit.
       ``(2) Beginning teacher.--The term `beginning teacher' 
     means an educator in a public school who has not yet been 
     teaching 3 full school years.

[[Page 8915]]

       ``(3) Mentoring program.--The term `mentoring program' 
     means to provide professional support and development, 
     instruction, and guidance to beginning teachers, but does not 
     include a teacher or individual who begins to work in a 
     supervisory position.
       ``(4) Publicly report.--The term `publicly report', when 
     used with respect to the dissemination of information, means 
     that the information is made widely available to the public, 
     including parents and students, through such means as the 
     Internet and major print and broadcast media outlets.''.

     SEC. 202. NATIONAL WRITING PROJECT.

       (a) Transfer and Redesignation.--Part K of title X (20 
     U.S.C. 8331 et seq.) is transferred and redesignated as part 
     B of title II. Sections 10991 and 10992 are redesignated as 
     sections 2101 and 2102, respectively.
       (b) Evaluation.--Section 2102(g) (as so redesignated) is 
     amended--
       (1) in paragraph (1), by striking ``14701.'' and inserting 
     ``8651.''; and
       (2) in paragraph (2), by striking ``1994'' and inserting 
     ``2002''.
       (c) Reauthorization.--Section 2102(i) (as so redesignated) 
     is amended by striking ``$4,000,000 for fiscal year 1995, and 
     such sums as may be necessary for each of the four succeeding 
     fiscal years,'' and inserting ``such sums as may be necessary 
     for fiscal year 2002 and the four succeeding fiscal years,''.
       (d) Continuation of Awards.--Notwithstanding any other 
     provision of this Act, any person or agency that was awarded 
     a grant or contract under part K of title X (20 U.S.C. 8331 
     et seq.) prior to the date of the enactment of this Act shall 
     continue to receive funds in accordance with the terms of 
     such award until the date on which the award period 
     terminates under such terms.

     SEC. 203. CIVIC EDUCATION; TEACHER LIABILITY PROTECTION.

       (a) In General.--Title II, as amended by sections 201 and 
     202, is further amended by adding at the end the following:

                       ``PART C--CIVIC EDUCATION

     ``SEC. 2201. SHORT TITLE.

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

     ``SEC. 2202. FINDINGS.

       ``The 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 50 percent 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 fewer 
     than 50 percent 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) civics 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 75 percent 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. 2203. 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. 2204. AUTHORITY.

       ``The Secretary may make grants to, or enter into contracts 
     with--
       ``(1) the Center for Civic Education to carry out civic 
     education activities in accordance with sections 2205 and 
     2206; and
       ``(2) the National Council on Economic Education to carry 
     out economic education activities in accordance with section 
     2206.

     ``SEC. 2205. WE THE PEOPLE PROGRAM.

       ``(a) Use of Funds.--The Center for Civic Education may use 
     funds made available under grants or contracts under section 
     2204(1) only to carry out activities--
       ``(1) under the Citizen and the Constitution program in 
     accordance with subsection (b); and
       ``(2) under the Project Citizen program in accordance with 
     subsection (c).
       ``(b) Citizen and the Constitution Program.--
       ``(1) Educational activities.--The Center for Civic 
     Education--
       ``(A) shall use funds made available under grants or 
     contracts under section 2204(1)--
       ``(i) to continue and expand the educational activities of 
     the program entitled the `We the People . . . The Citizen and 
     the Constitution' administered by the Center for Civic 
     Education;
       ``(ii) to carry out activities to enhance student 
     attainment of challenging academic content standards in 
     civics and government;
       ``(iii) to provide a course of instruction on the basic 
     principles of the Nation's constitutional democracy and the 
     history of the Constitution of the United States, including 
     the Bill of Rights;
       ``(iv) to provide, at the request of a participating 
     school, school and community simulated congressional hearings 
     following the course of instruction described in clause 
     (iii); and
       ``(v) to provide an annual national competition of 
     simulated congressional hearings for secondary school 
     students who wish to participate in such a program; and
       ``(B) may use assistance made available under section 
     2204(1)--
       ``(i) to provide advanced sustained and ongoing training of 
     teachers about the Constitution of the United States and the 
     political system of the United States;
       ``(ii) to provide materials and methods of instruction, 
     including teacher training, that utilize the latest 
     advancements in educational technology; and
       ``(iii) to provide civic education materials and services 
     to address specific problems such as the prevention of school 
     violence and the abuse of drugs and alcohol.
       ``(2) Availability of program.--As a condition of receipt 
     of funds under grants or contracts under section 2204(1), the 
     Secretary shall require the Center for Civic Education to 
     make the education program authorized under this subsection 
     available to public and private elementary schools and 
     secondary schools, including Bureau-funded schools, in each 
     of the 435 congressional districts, and in the District of 
     Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands.
       ``(c) Project Citizen.--
       ``(1) Educational activities.--The Center for Civic 
     Education--
       ``(A) shall use funds made available under grants or 
     contracts under section 2204(1)--
       ``(i) to continue and expand the educational activities of 
     the program entitled the `We the People . . . Project 
     Citizen' program administered by the Center;
       ``(ii) to carry out activities to enhance student 
     attainment of challenging academic content standards in 
     civics and government;
       ``(iii) to provide a course of instruction at the middle 
     school level on the roles of State and local governments in 
     the Federal system established by the Constitution of the 
     United States; and
       ``(iv) to provide an annual national showcase or 
     competition; and
       ``(B) may use funds made available under grants or 
     contracts under section 2204(1)--
       ``(i) to provide optional school and community simulated 
     State legislative hearings;
       ``(ii) to provide advanced sustained and ongoing training 
     of teachers on the roles of State and local governments in 
     the Federal system established by the Constitution of the 
     United States;
       ``(iii) to provide materials and methods of instruction, 
     including teacher training, that utilize the latest 
     advancements in educational technology; and
       ``(iv) to provide civic education materials and services to 
     address specific problems such as the prevention of school 
     violence and the abuse of drugs and alcohol.
       ``(2) Availability of program.--As a condition of receipt 
     of funds under grants or contracts under section 2204(1), the 
     Secretary shall require the Center for Civic Education to 
     make the education program authorized under this subsection 
     available to public and private middle schools, including 
     Bureau-funded schools, in each of the 50 States, the District 
     of Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands.
       ``(d) Bureau-Funded School Defined.--In this section, the 
     term `Bureau-funded school' has the meaning given such term 
     in section 1146 of the Education Amendments of 1978 (25 
     U.S.C. 2026).

     ``SEC. 2206. COOPERATIVE CIVIC EDUCATION AND ECONOMIC 
                   EDUCATION EXCHANGE PROGRAMS.

       ``(a) Use of Funds.--The Center for Civic Education and the 
     National Council on Economic Education may use funds made 
     available under grants or contracts under section 2204(2) 
     only to carry out cooperative education exchange programs 
     that--
       ``(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;

[[Page 8916]]

       ``(2) assist eligible countries in the adaptation, 
     implementation, and institutionalization of programs 
     described in paragraph (1);
       ``(3) create and implement programs for civics and 
     government education, and economic education, for students 
     that draw upon the experiences of the participating eligible 
     countries;
       ``(4) provide means for the exchange of ideas and 
     experiences in civics and government education, and economic 
     education, among political, educational, governmental, and 
     private sector leaders of participating eligible countries; 
     and
       ``(5) 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.
       ``(b) Activities.--In carrying out the cooperative 
     education exchange programs assisted under this section, the 
     Center for Civic Education and the National Council on 
     Economic Education shall--
       ``(1) provide to the participants from eligible countries--
       ``(A) seminars on the basic principles of United States 
     constitutional democracy and economic system, including 
     seminars on the major governmental and economic institutions 
     and systems in the United States, and visits to such 
     institutions;
       ``(B) visits to school systems, institutions of higher 
     education, and nonprofit organizations conducting exemplary 
     programs in civics and government education, and economic 
     education, in the United States;
       ``(C) translations and adaptations with respect to United 
     States civics and government education, and economic 
     education, curricular programs for students and teachers, and 
     in the case of training programs for teachers translations 
     and adaptations into forms useful in schools in eligible 
     countries, and joint research projects in such areas; and
       ``(D) independent research and evaluation assistance--
       ``(i) to determine the effects of the cooperative education 
     exchange programs on students' development of the knowledge, 
     skills, and traits of character essential for the 
     preservation and improvement of constitutional democracy; and
       ``(ii) to identify effective participation in and the 
     preservation and improvement of an efficient market economy;
       ``(2) provide to the participants from the United States--
       ``(A) seminars on the histories, economies, and systems of 
     government of eligible countries;
       ``(B) visits to school systems, institutions of higher 
     education, and organizations conducting exemplary programs in 
     civics and government education, and economic education, 
     located in eligible countries;
       ``(C) assistance from educators and scholars in eligible 
     countries in the development of curricular materials on the 
     history, government, and economy of such countries that are 
     useful in United States classrooms;
       ``(D) opportunities to provide onsite demonstrations of 
     United States curricula and pedagogy for educational leaders 
     in eligible countries; and
       ``(E) independent research and evaluation assistance to 
     determine--
       ``(i) the effects of the cooperative education exchange 
     programs assisted under this section on students' development 
     of the knowledge, skills, and traits of character essential 
     for the preservation and improvement of constitutional 
     democracy; and
       ``(ii) effective participation in and improvement of an 
     efficient market economy; and
       ``(3) assist participants from eligible countries and the 
     United States to participate in international conferences on 
     civics and government education, and economic education, for 
     educational leaders, teacher trainers, scholars in related 
     disciplines, and educational policymakers.
       ``(c) 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.
       ``(d) Consultation.--The Secretary may make a grant, or 
     enter into a contract, under section 2204(2) only if the 
     Secretary of State concurs with the Secretary that such 
     grant, or contract, is consistent with the foreign policy of 
     the United States.
       ``(e) Avoidance of Duplication.--With the concurrence of 
     the Secretary of State, the Secretary shall ensure that--
       ``(1) the activities carried out under the programs 
     assisted under this section are not duplicative of other 
     activities conducted in eligible countries; and
       ``(2) any institutions in eligible countries, with which 
     the Center for Civic Education or the National Council on 
     Economic Education may work in conducting such activities, 
     are creditable.
       ``(f) Eligible Country Defined.--In this section, the term 
     `eligible country' means a Central European country, an 
     Eastern European country, Lithuania, Latvia, Estonia, the 
     independent states of the former Soviet Union as defined in 
     section 3 of the FREEDOM Support Act (22 U.S.C. 5801), the 
     Republic of Ireland, the province of Northern Ireland in the 
     United Kingdom, and any developing country (as such term is 
     defined in section 209(d) of the Education for the Deaf Act) 
     if the Secretary, with the concurrence of the Secretary of 
     State, determines that such developing country has a 
     democratic form of government.

     ``SEC. 2207. FUNDING.

       ``(a) Authorization of Appropriations.--
       ``(1) We the people program.--There are authorized to be 
     appropriated to carry out sections 2204(1) and 2205 such sums 
     as may be necessary for each of fiscal years 2002 through 
     2006.
       ``(2) Cooperative civic education and economic education 
     exchange programs.--There are authorized to be appropriated 
     to carry out sections 2204(2) and 2206 such sums as may be 
     necessary for each of fiscal years 2002 through 2006.
       ``(b) Limitation.--In each fiscal year, the Secretary may 
     use not more than 50 percent of the amount appropriated under 
     subsection (a)(2) for assistance for economic educational 
     activities.

                 ``PART D--TEACHER LIABILITY PROTECTION

     ``SEC. 2301. TEACHER IMMUNITY.

       ``(a) Immunity.--Notwithstanding any other provision of 
     law, no school board member of, or teacher or administrator 
     in, a local educational agency that receives funds under this 
     Act shall be liable for monetary damages in his or her 
     personal capacity for an action that was taken in carrying 
     out his or her official duties and intended to maintain 
     school discipline, so long as that action was not prohibited 
     under State or local law and did not constitute reckless or 
     criminal misconduct.
       ``(b) Limitation.--The immunity established under 
     subsection (a) shall apply only to liability arising under 
     Federal law.''.
       (b) Continuation of Awards.--Notwithstanding any other 
     provision of this Act, any person or agency that was awarded 
     a grant under part F of title X (20 U.S.C. 8141 et seq.) 
     prior to the date of the enactment of this Act shall continue 
     to receive funds in accordance with the terms of such award 
     until the date on which the award period terminates under 
     such terms.

   TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
              CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION

 PART A--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT CHILDREN

     SEC. 301. PROGRAMS AUTHORIZED.

       (a) Title Heading.--The heading for title III is amended to 
     read as follows:

  ``TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
            CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION''.

       (b) Short Title.--Section 3101 (20 U.S.C. 6801) is 
     repealed.
       (c) Limitation on Availability of Certain Funds for 
     Schools.--
       (1) In general.--Section 3601 (20 U.S.C. 7001)--
       (A) is transferred to part B of title V (as amended by 
     section 501) and inserted after section 5204 (as so amended);
       (B) is redesignated as section 5205; and
       (C) is amended by striking ``this title'' each place such 
     term appears and inserting ``this part''.
       (2) Part heading repeal.--The part heading for part F of 
     title III is repealed.
       (d) Limited English Proficient and Immigrant Children.--
     Parts A through E of title III (20 U.S.C. 6811 et seq.) are 
     amended to read as follows:

    ``PART A--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
                                CHILDREN

   ``Subpart 1--English Language and Academic Instructional Programs

     ``SEC. 3101. SHORT TITLE.

       ``This subpart may be cited as the `English Language 
     Proficiency and Academic Achievement Act'.

     ``SEC. 3102. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress finds as follows:
       ``(1) English is the common language of the United States 
     and every citizen and other person residing in the United 
     States should have a command of the English language in order 
     to develop to their full potential.
       ``(2) Limited English proficient children, including recent 
     immigrant children, must overcome a number of challenges in 
     receiving an education in order to participate fully in 
     American society, including--
       ``(A) segregated educational programs;
       ``(B) disproportionate and improper placement in special 
     education and other special programs due to the use of 
     inappropriate evaluation procedures;
       ``(C) the limited English proficiency of their parents, 
     which hinders the parents' ability to fully participate in 
     the education of their children; and
       ``(D) a need for additional teachers and other staff who 
     are professionally trained and qualified to serve such 
     children.
       ``(3) States and local educational agencies need assistance 
     in developing the capacity to provide programs of instruction 
     that offer and provide an equal educational opportunity to 
     children who need special assistance because English is not 
     their dominant language.

[[Page 8917]]

       ``(4) Since 1979, the number of limited English proficient 
     children attending school in the United States has more than 
     doubled to greater than 4,000,000, and demographic trends 
     indicate the population of limited English proficient 
     children will continue to increase.
       ``(5) Native Americans, including native residents of the 
     outlying areas, and Native American languages (as such terms 
     are defined in section 103 of the Native American Languages 
     Act) have a unique status under Federal law that requires 
     special policies within the broad purposes of this part to 
     serve the educational needs of language minority students in 
     the United States.
       ``(6) Research, evaluation, and data collection 
     capabilities in the field of instruction for limited English 
     proficient children need to be strengthened so that educators 
     and other staff teaching limited English proficient children 
     in the classroom can better identify and promote programs, 
     program implementation strategies, and instructional 
     practices that result in the effective education of limited 
     English proficient children.


       ``(7) The Federal Government has a special and continuing 
     obligation to ensure that States and local educational 
     agencies provide children of limited English proficiency the 
     same educational opportunities afforded other children.
       ``(b) Purposes.--The purposes of this part are--
       ``(1) to help ensure that children who are limited English 
     proficient, including recent immigrant children, attain 
     English proficiency, develop high levels of academic 
     attainment in English, and meet the same challenging State 
     academic content standards and challenging State student 
     academic achievement standards expected of all children;
       ``(2) to develop high-quality programs designed to assist 
     local educational agencies in teaching limited English 
     proficient children;
       ``(3) to assist local educational agencies to develop and 
     enhance their capacity to provide high-quality instructional 
     programs designed to prepare limited English proficient 
     students, including recent immigrant students, to enter all-
     English instructional settings within 3 years; and
       ``(4) to provide State educational agencies and local 
     educational agencies with the flexibility to implement 
     instructional programs, tied to scientifically based reading 
     research and sound research and theory on teaching limited 
     English proficient children, that the agencies believe to be 
     the most effective for teaching English.

     ``SEC. 3103. PARENTAL NOTIFICATION AND CONSENT FOR ENGLISH 
                   LANGUAGE INSTRUCTION.

       ``(a) Notification.--If a local educational agency uses 
     funds under this subpart to provide English language 
     instruction to limited English proficient children, the 
     agency shall inform a parent or the parents of a child 
     participating in an English language instruction program for 
     limited English proficient children assisted under this 
     subpart of--
       ``(1) the reasons for the identification of the child as 
     being in need of English language instruction;
       ``(2) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(3) how the English language instruction program will 
     specifically help the child acquire English and meet age-
     appropriate standards for grade promotion and graduation;
       ``(4) what the specific exit requirements are for the 
     program;
       ``(5) the expected rate of transition from the program into 
     a classroom that is not tailored for limited English 
     proficient children; and
       ``(6) the expected rate of graduation from high school for 
     the program if funds under this subpart are used for children 
     in secondary schools.
       ``(b) Consent.--
       ``(1) Agency requirements.--
       ``(A) Informed consent.--For a child who has been 
     identified as limited English proficient prior to the 
     beginning of the school year, each local educational agency 
     that receives funds under this subpart shall make a 
     reasonable and substantial effort to obtain informed parental 
     consent prior to the placement of a child in an English 
     language instruction program for limited English proficient 
     children funded under this subpart, if the program does not 
     include classes which exclusively or almost exclusively use 
     the English language in instruction.
       ``(B) Written consent not obtained.--
       ``(i) In general.--If written consent is not obtained, the 
     local educational agency shall maintain a written record that 
     includes the date and the manner in which such informed 
     consent was sought, including the specific efforts made to 
     obtain such consent.
       ``(ii) Proof of effort.--Notice, in an understandable form, 
     of specific efforts made to obtain written consent and a copy 
     of the written record described in clause (i) shall be mailed 
     or delivered in writing to a parent or the parents of a child 
     prior to placing the child in a program described in 
     subparagraph (A), and shall include a final request for 
     parental consent for such services. After such notice has 
     been mailed or delivered in writing, the local educational 
     agency shall provide appropriate educational services.
       ``(iii) Special rule applicable during school year.--For 
     those children who have not been identified as limited 
     English proficient prior to the beginning of the school year, 
     the local educational agency shall make a reasonable and 
     substantial effort to obtain parental consent under this 
     clause. For such children, the agency shall document, in 
     writing, its specific efforts to obtain such consent prior to 
     placing the child in a program described in subparagraph (A). 
     After such documentation has been made, the local educational 
     agency shall provide appropriate educational services to such 
     child. The proof of documentation shall be mailed or 
     delivered in writing to a parent or the parents of the child 
     in a timely manner and shall include information on how to 
     have their child immediately removed from the program upon 
     their request. Nothing in this clause shall be construed as 
     exempting a local educational agency from complying with the 
     notification requirements of subsection (a) and the consent 
     requirements of this paragraph.
       ``(2) Parental rights.--A parent or the parents of a child 
     participating in an English language instruction program for 
     limited English proficient children assisted under this 
     subpart--
       ``(A) shall select among methods of instruction, if more 
     than one method is offered in the program; and
       ``(B) shall have the right to have their child immediately 
     removed from the program upon their request.
       ``(c) Receipt of Information.--A parent or the parents of a 
     child identified for participation in an English language 
     instruction program for limited English proficient children 
     assisted under this subpart shall receive, in a manner and 
     form understandable to the parent or parents, the information 
     required by this subsection. At a minimum, the parent or 
     parents shall receive--
       ``(1) timely information about English language instruction 
     programs for limited English proficient children assisted 
     under this part;
       ``(2) if a parent or the parents of a participating child 
     so desire, notice of opportunities for regular meetings for 
     the purpose of formulating and responding to recommendations 
     from the parent or parents; and
       ``(3) procedural information for removing a child from a 
     program for limited English proficient children.
       ``(d) Basis for Admission or Exclusion.--Students shall not 
     be admitted to, or excluded from, any federally assisted 
     education program on the basis of a surname or language-
     minority status.

     ``SEC. 3104. TESTING OF LIMITED ENGLISH PROFICIENT CHILDREN.

       ``(a) In General.--Assessments of limited English 
     proficient children participating in programs funded under 
     this subpart, to the extent practicable, shall be in the 
     language and form most likely to yield accurate and reliable 
     information on what such students know and can do in content 
     areas.
       ``(b) Special Rule.--Notwithstanding subsection (a), in the 
     case of an assessment of reading or language arts of any 
     student who has attended school in the United States 
     (excluding Puerto Rico) for 3 or more consecutive school 
     years, the assessment shall be in the form of a test written 
     in English, except that, if the entity administering the 
     assessment determines, on a case-by-case individual basis, 
     that assessments in another language or form would likely 
     yield more accurate and reliable information on what such 
     student knows and can do, the entity may assess such student 
     in such language or form for 1 additional year.

     ``SEC. 3105. FORMULA GRANTS TO STATES.

       ``(a) In General.--In the case of each State that in 
     accordance with section 3107 submits to the Secretary an 
     application for a fiscal year, the Secretary shall make a 
     grant for the year to the State for the purposes specified in 
     subsection (b). The grant shall consist of the allotment 
     determined for the State under subsection (c).
       ``(b) Purposes of Grants.--
       ``(1) Required expenditures.--The Secretary may make a 
     grant under subsection (a) only if the State involved agrees 
     that the State will expend at least 95 percent of its 
     allotment under subsection (c) for the purpose of making 
     subgrants to eligible entities to provide assistance to 
     limited English proficient children in accordance with 
     sections 3108 and 3109.
       ``(2) Authorized expenditures.--Subject to paragraph (3), a 
     State that receives a grant under subsection (a) may expend 
     not more than 5 percent of its allotment under subsection (c) 
     for one or more of the following purposes:
       ``(A) Carrying out--
       ``(i) professional development activities, and other 
     activities, that assist personnel in meeting State and local 
     certification requirements for teaching limited English 
     proficient children; and
       ``(ii) other activities that provide such personnel with 
     the skills and knowledge necessary to educate limited English 
     proficient children.
       ``(B) Providing scholarships and fellowships to students 
     who agree to teach limited English proficient children once 
     they graduate.
       ``(C) Planning, administration, and interagency 
     coordination related to the subgrants referred to in 
     paragraph (1).
       ``(D) Providing technical assistance and other forms of 
     assistance to local educational agencies that--
       ``(i) educate limited English proficient children; and
       ``(ii) are not receiving a subgrant from a State under this 
     subpart.
       ``(E) Providing bonuses to subgrantees whose performance 
     has been exceptional in terms of the speed with which 
     children enrolled in the subgrantee's programs and activities 
     attain English language proficiency and meet challenging 
     State academic content standards and challenging State 
     student academic achievement standards.
       ``(3) Limitation on administrative costs.--In carrying out 
     paragraph (2), a State that receives a grant under subsection 
     (a) may expend not more than 2 percent of its allotment under

[[Page 8918]]

     subsection (c) for the purposes described in paragraph 
     (2)(C).
       ``(c) Determination of Allotment Amounts.--
       ``(1) Reservations.--From the amount appropriated under 
     section 3110 to carry out this subpart for each fiscal year, 
     the Secretary shall reserve--
       ``(A) .5 percent of such amount for payments to entities 
     that are considered to be local educational agencies under 
     section 3106(a) for activities approved by the Secretary;
       ``(B) .5 percent of such amount for payments to outlying 
     areas, to be allotted in accordance with their respective 
     needs for assistance under this subpart, as determined by the 
     Secretary, for activities, approved by the Secretary, 
     consistent with this part; and
       ``(C) \1/2\ of 1 percent of such amount for evaluation of 
     the programs under this part and for dissemination of best 
     practices.
       ``(2) Continuation awards.--Before making awards to States 
     under paragraph (3) for any fiscal year, the Secretary shall 
     make continuation awards to recipients of grants under 
     subpart 1 of part A of the Bilingual Education Act, as that 
     Act was in effect on the day before the effective date of the 
     No Child Left Behind Act of 2001, in order to allow such 
     recipients to continue to receive funds in accordance with 
     the terms of their grant until the date on which the grant 
     period otherwise would have terminated if the No Child Left 
     Behind Act of 2001 had not been enacted.
       ``(3) State allotments.--
       ``(A) In general.--From the amount appropriated under 
     section 3110 to carry out this subpart for each fiscal year 
     that remains after carrying out paragraphs (1) and (2), the 
     Secretary shall allot to each of the 50 States, the District 
     of Columbia, and the Commonwealth of Puerto Rico an amount 
     which bears the same ratio to such amount as the total number 
     of children and youth who are limited English proficient and 
     who reside in such State bears to the total number of such 
     children and youth residing in all such States that, in 
     accordance with section 3107, submit to the Secretary an 
     application for the year.
       ``(B) Reallotment.--
       ``(i) In general.--If any State described in subparagraph 
     (A) does not submit to the Secretary an application for a 
     fiscal year, or submits an application (or any modification 
     to an application) that the Secretary, after reasonable 
     notice and opportunity for a hearing, determines does not 
     satisfy the requirements of this subpart, the Secretary--

       ``(I) shall endeavor to make the State's allotment 
     available on a competitive basis to specially qualified 
     agencies within the State that satisfy the requirements 
     applicable to eligible entities under section 3108 and any 
     additional requirements that may be imposed by the Secretary; 
     and
       ``(II) shall reallot any portion of such allotment 
     remaining after the application of subclause (I) to the 
     remaining States in accordance with subparagraph (A).

       ``(ii) Requirements on specially qualified agencies.--If a 
     specially qualified agency receives funds under this 
     subparagraph, the requirements of subsection (b) shall not 
     apply to the agency. In lieu of those requirements, the 
     specially qualified agency shall expend the funds for the 
     authorized activities described in section 3108(b) and 
     otherwise shall satisfy the requirements of section 3108.
       ``(C) Special rule for puerto rico.--The total amount 
     allotted to Puerto Rico for any fiscal year under 
     subparagraph (A) shall not exceed .5 percent of the total 
     amount allotted to all States for that fiscal year.
       ``(4) Use of data for determinations.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     for the purpose of determining the number of children and 
     youth who are limited English proficient and reside in a 
     State and in all States for each fiscal year, the Secretary 
     shall use the most recent satisfactory data available from 
     the Bureau of the Census and the American Community Survey 
     available from the Department of Commerce.
       ``(B) Exception.--If the data described in subparagraph (A) 
     are more than 4 years old or unavailable, the Secretary shall 
     use the most recent satisfactory data provided by the States, 
     such as enrollment data and data that reflect the number of 
     students taking the English proficiency assessments in the 
     States.
       ``(5) No reduction permitted based on teaching method.--The 
     Secretary may not reduce a State's allotment based on the 
     State's selection of any method of instruction as its 
     preferred method of teaching the English language to children 
     who are limited English proficient.

     ``SEC. 3106. NATIVE AMERICAN AND ALASKA NATIVE CHILDREN IN 
                   SCHOOL.

       ``(a) Eligible Entities.--For the purpose of carrying out 
     programs under this part for individuals served by 
     elementary, secondary, and postsecondary schools operated 
     predominately for Native American or Alaska Native children, 
     the following shall be considered to be a local educational 
     agency:
       ``(1) An Indian tribe.
       ``(2) A tribally sanctioned educational authority.
       ``(3) A Native Hawaiian or Native American Pacific Islander 
     native language educational organization.
       ``(4) An elementary or secondary school that is operated or 
     funded by the Bureau of Indian Affairs, or a consortium of 
     such schools.
       ``(5) An elementary or secondary school operated under a 
     contract with or grant from the Bureau of Indian Affairs, in 
     consortium with another such school or a tribal or community 
     organization.
       ``(6) An elementary or secondary school operated by the 
     Bureau of Indian Affairs and an institution of higher 
     education, in consortium with an elementary or secondary 
     school operated under a contract with or grant from the 
     Bureau of Indian Affairs or a tribal or community 
     organization.
       ``(b) Submission of Applications for Assistance.--
     Notwithstanding any other provision of this part, an entity 
     that is considered to be a local educational agency under 
     subsection (a), and that desires to submit an application for 
     Federal financial assistance under this subpart, shall submit 
     the application to the Secretary. In all other respects, such 
     an entity shall be eligible for a subgrant under this subpart 
     on the same basis as any other local educational agency.

     ``SEC. 3107. APPLICATIONS BY STATES.

       ``For purposes of section 3105, an application submitted by 
     a State for a grant under such section for a fiscal year is 
     in accordance with this section if the application--
       ``(1) describes the process that the State will use in 
     making competitive subgrants to eligible entities under 
     section 3109(c);
       ``(2) contains an agreement that, in carrying out this 
     subpart, the State will address the needs of school systems 
     of all sizes and in all geographic areas, including rural and 
     urban schools;
       ``(3) contains an agreement that competitive subgrants to 
     eligible entities under section 3109(c) shall be of 
     sufficient size and scope to allow such entities to carry out 
     high quality education programs for limited English 
     proficient children;
       ``(4) contains an agreement that the State will coordinate 
     its programs and activities under this subpart with its other 
     programs and activities under this Act and other Acts, as 
     appropriate;
       ``(5) contains an agreement that the State--
       ``(A) shall monitor the progress of students enrolled in 
     programs and activities receiving assistance under this 
     subpart in attaining English proficiency and in attaining 
     challenging State academic content standards and challenging 
     State student academic achievement standards;
       ``(B) shall establish standards and benchmarks for English 
     language development that are aligned with State academic 
     content and achievement standards; and
       ``(C) will ensure that eligible entities comply with 
     section 3104 to annually test children in English who have 
     been in the United States for 3 or more consecutive years;
       ``(6) contains an assurance that the State will develop 
     high-quality annual assessments to measure English language 
     proficiency and require eligible entities receiving a 
     subgrant under this subpart annually to assess the English 
     proficiency of all children with limited English proficiency 
     participating in a program funded under this subpart;
       ``(7) contains an agreement that the State will develop 
     annual performance objectives for raising the level of 
     English proficiency of each limited English proficient 
     student, and that these objectives shall include percentage 
     increases in performance on annual assessments in reading, 
     writing, speaking, and listening comprehension as compared to 
     the preceding school year; and
       ``(8) contains an agreement that the State will require 
     eligible entities receiving a subgrant under this subpart to 
     use the subgrant in ways that will build such recipient's 
     capacity to continue to offer high-quality English language 
     instruction and programs which assist limited English 
     proficient children in attaining challenging State academic 
     content standards and challenging State student academic 
     achievement standards once assistance under this subpart is 
     no longer available.

     ``SEC. 3108. SUBGRANTS TO ELIGIBLE ENTITIES.

       ``(a) Purposes of Subgrants.--A State may make a subgrant 
     to an eligible entity from funds received by the State under 
     this subpart only if the entity agrees to expend the funds to 
     improve the education of limited English proficient children 
     and their families, through the acquisition of English and 
     the attainment of challenging State academic content 
     standards and challenging State student academic achievement 
     standards, using approaches and methodologies based on 
     scientifically based reading research and sound research and 
     theory on teaching limited English proficient children, by--
       ``(1) developing and implementing new English language and 
     academic content instructional programs for children who are 
     limited English proficient, including programs of early 
     childhood education and kindergarten through 12th grade 
     education;
       ``(2) carrying out highly focused, innovative, locally 
     designed projects to expand or enhance existing English 
     language and academic content instruction programs for 
     limited English proficient children;
       ``(3) implementing, within an individual school, schoolwide 
     programs for restructuring, reforming, and upgrading all 
     relevant programs and operations relating to English language 
     and academic content instruction for limited English 
     proficient students; or
       ``(4) implementing, within the entire jurisdiction of a 
     local educational agency, agencywide programs for 
     restructuring, reforming, and upgrading all relevant programs 
     and operations relating to English language and academic 
     content instruction for limited English proficient students.
       ``(b) Authorized Subgrantee Activities.--
       ``(1) In general.--Subject to paragraph (2), a State may 
     make a subgrant to an eligible entity

[[Page 8919]]

     from funds received by the State under this subpart in order 
     that the eligible entity may achieve one of the purposes 
     described in subsection (a) by undertaking one or more of the 
     following activities to improve the understanding, and use, 
     of the English language, based on a child's learning skills 
     and attainment of challenging State academic content 
     standards and challenging State student academic achievement 
     standards:
       ``(A) Upgrading program objectives and effective 
     instructional strategies.
       ``(B) Improving the instruction program for limited English 
     proficient students by identifying, acquiring, and upgrading 
     curricula, instructional materials, educational software, and 
     assessment procedures.
       ``(C) Providing--
       ``(i) tutorials and academic or vocational education for 
     limited English proficient children; and
       ``(ii) intensified instruction.
       ``(D) Developing and implementing elementary or secondary 
     school English language instructional programs that are 
     coordinated with other relevant programs and services.
       ``(E) Providing professional development to classroom 
     teachers, principals, administrators, and other school or 
     community-based organizational personnel to improve the 
     instruction and assessment of children who are limited 
     English proficient children.
       ``(F) Improving the English language proficiency and 
     academic performance of limited English proficient children.
       ``(G) Improving the instruction of limited English 
     proficient children by providing for the acquisition or 
     development of education technology or instructional 
     materials, access to and participation in electronic networks 
     for materials, training and communications, and incorporation 
     of such resources in curricula and programs, such as those 
     funded under this subpart.
       ``(H) Developing tutoring programs for limited English 
     proficient children that provide early intervention and 
     intensive instruction in order to improve academic 
     achievement, to increase graduation rates among limited 
     English proficient children, and to prepare students for 
     transition as soon as possible into classrooms where 
     instruction is not tailored for limited English proficient 
     children.
       ``(I) Providing family literacy services and parent 
     outreach and training activities to limited English 
     proficient children and their families to improve their 
     English language skills and assist parents in helping their 
     children to improve their academic performance.
       ``(J) Other activities that are consistent with the 
     purposes of this part.
       ``(2) Moving children out of specialized classrooms.--Any 
     program or activity undertaken by an eligible entity using a 
     subgrant from a State under this subpart shall be designed to 
     assist students enrolled in the program or activity to attain 
     English proficiency and meet challenging State academic 
     content standards and challenging State student academic 
     achievement standards as soon as possible, but not later than 
     after 3 consecutive years of attendance in United States 
     schools (excluding schools in Puerto Rico), and to move into 
     a classroom where instruction is not tailored for limited 
     English proficient children.
       ``(c) Selection of Method of Instruction.--To receive a 
     subgrant from a State under this subpart, an eligible entity 
     shall select one or more methods or forms of instruction to 
     be used in the programs and activities undertaken by the 
     entity to assist limited English proficient children to 
     attain English proficiency and meet challenging State 
     academic content standards and challenging State student 
     academic achievement standards. Such selection shall be 
     consistent with sections 3134 and 3135.
       ``(d) Duration of Subgrants.--The duration of a competitive 
     subgrant made by a State under section 3109(c) shall be 
     determined by the State in its discretion.
       ``(e) Applications by Eligible Entities.--
       ``(1) In general.--To receive a subgrant from a State under 
     this subpart, an eligible entity shall submit an application 
     to the State at such time, in such form, and containing such 
     information as the State may require.
       ``(2) Required documentation.--The application shall--
       ``(A) describe the programs and activities proposed to be 
     developed, implemented, and administered under the subgrant;
       ``(B) describe how the eligible entity will use the 
     subgrant funds to satisfy the requirement in subsection 
     (b)(2); and
       ``(C) describe how the eligible entity, using the 
     disaggregated results of the student assessments required 
     under section 1111(b)(4) and other measures available, will 
     annually review the progress of elementary and secondary 
     schools within its jurisdiction, or served by it, to 
     determine if such schools are making the adequate yearly 
     progress necessary to ensure that limited English proficient 
     students attending the schools will meet the State's 
     proficient level of performance on the State assessment 
     described in section 1111(b)(4), and will hold such schools 
     accountable for making such progress.
       ``(3) Requirements for approval.--The application shall 
     contain assurances that--
       ``(A) the eligible entity will use qualified personnel who 
     have appropriate training and professional credentials in 
     teaching English to children who are limited English 
     proficient, and who are proficient in English, including 
     written and oral communication skills;
       ``(B) if the eligible entity includes one or more local 
     educational agencies, each such agency is complying with 
     section 3103(b) prior to, and throughout, each school year;
       ``(C) the eligible entity annually will assess the English 
     proficiency of all children with limited English proficiency 
     participating in programs funded under this subpart;
       ``(D) the eligible entity has based its proposal on 
     scientifically based reading research and sound research and 
     theory on teaching limited English proficient children;
       ``(E) the eligible entity has described in the application 
     how students enrolled in the programs and activities proposed 
     in the application will be proficient in English after 3 
     academic years of enrollment;
       ``(F) the eligible entity will ensure that programs will 
     enable children to speak, read, write, and comprehend the 
     English language and meet challenging State academic content 
     standards and challenging State student academic achievement 
     standards; and
       ``(G) the eligible entity is not in violation of any State 
     law, including State constitutional law, regarding the 
     education of limited English proficient children, consistent 
     with sections 3134 and 3135.
       ``(4) Quality.--For the purposes of awarding competitive 
     subgrants under section 3109(c), a State shall consider the 
     quality of each application and ensure that it is of 
     sufficient size and scope to meet the purposes of this 
     subpart.

     ``SEC. 3109. DISTRIBUTION OF SUBGRANTS TO ELIGIBLE ENTITIES.

       ``(a) In General.--A State shall expend at least 95 percent 
     of its allotment under section 3105(c) each fiscal year for 
     the purpose of making subgrants to eligible entities within 
     the State that have approved applications, in accordance with 
     subsections (b) and (c).
       ``(b) Formula Subgrants.--
       ``(1) Reservation.--75 percent of the amount expended by a 
     State for subgrants under this subpart shall be reserved for 
     subgrants to eligible entities described in subsection (a) in 
     which, during the fiscal year for which the subgrant is to be 
     made, the number of limited English proficient children and 
     youth who are enrolled in public and nonpublic elementary or 
     secondary schools located in geographic areas under the 
     jurisdiction of, or served by, such entities is equal to at 
     least 500 students, or 3 percent of the total number of 
     children and youth enrolled in such schools during such 
     fiscal year, whichever is less.
       ``(2) Allotment.--From the amount reserved under paragraph 
     (1), the State shall allot to each eligible entity described 
     in such paragraph a percentage based on the ratio of--
       ``(A) the number of limited English proficient children and 
     youth who are enrolled in public and nonpublic elementary or 
     secondary schools located in geographic areas under the 
     jurisdiction of, or served by, such entity during the fiscal 
     year for which the allotment is to be made; to
       ``(B) the number of such children and youth in all such 
     eligible entities.
       ``(3) Reallotment.--Whenever a State determines that an 
     allotment made to an eligible entity under this subsection 
     for a fiscal year will not be used by the entity for the 
     purpose for which it was made, the State shall, in accordance 
     with such rules as it deems appropriate, reallot such amount, 
     consistent with paragraph (2), to other eligible entities in 
     the State for carrying out that purpose.
       ``(c) Competitive Subgrants.--25 percent of the amount 
     expended by a State for subgrants under this subpart shall be 
     reserved for competitive subgrants to eligible entities 
     described in subsection (a) that the State determines--
       ``(1) have experienced significant increases, as compared 
     to the previous 2 years, in the percentage or number of 
     children and youth with limited English proficiency, 
     including recent immigrant children, that have enrolled in 
     public and nonpublic elementary or secondary schools in the 
     geographic areas under the jurisdiction of, or served by, 
     such entities during the fiscal year for which the subgrant 
     is to be made; or
       ``(2) do not satisfy the requirements of subsection (b)(1) 
     but have significant needs for programs under this subpart.

     ``SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subpart, there are 
     authorized to be appropriated $750,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 4 
     succeeding fiscal years.

                      ``Subpart 2--Administration

     ``SEC. 3121. EVALUATIONS.

       ``(a) In General.--Each eligible entity that receives a 
     subgrant from a State under subpart 1 shall provide the 
     State, at the conclusion of every second fiscal year during 
     which the subgrant is received, with an evaluation, in a form 
     prescribed by the State, of--
       ``(1) the programs and activities conducted by the entity 
     with funds received under subpart 1 during the 2 immediately 
     preceding fiscal years;
       ``(2) the progress made by students in learning the English 
     language and meeting challenging State academic content 
     standards and challenging State student academic achievement 
     standards;
       ``(3) the number and percentage of students in the programs 
     and activities attaining English language proficiency by the 
     end of each school year, as determined by a valid and 
     reliable assessment of English proficiency; and
       ``(4) the progress made by students in meeting challenging 
     State academic content standards and challenging State 
     student academic achievement standards for each of the 2 
     years after such students are no longer receiving services 
     under this part.

[[Page 8920]]

       ``(b) Use of Evaluation.--An evaluation provided by an 
     eligible entity under subsection (a) shall be used by the 
     entity and the State--
       ``(1) for improvement of programs and activities;
       ``(2) to determine the effectiveness of programs and 
     activities in assisting children who are limited English 
     proficient to attain English proficiency (as measured 
     consistent with subsection (d)) and meet challenging State 
     academic content standards and challenging State student 
     academic achievement standards; and
       ``(3) in determining whether or not to continue funding for 
     specific programs or projects.
       ``(c) Evaluation Components.--An evaluation provided by an 
     eligible entity under subsection (a) shall include--
       ``(1) an evaluation of whether students enrolling in a 
     program or activity conducted by the entity with funds 
     received under subpart 1--
       ``(A) have attained English proficiency and are meeting 
     challenging State academic content academic and challenging 
     State student academic achievement standards; and
       ``(B) have achieved a working knowledge of the English 
     language that is sufficient to permit them to perform, in 
     English, in a classroom that is not tailored to limited 
     English proficient children; and
       ``(2) such other information as the State may require.
       ``(d) Evaluation Measures.--In prescribing the form of an 
     evaluation provided by an entity under subsection (a), a 
     State shall approve evaluation measures, as applicable, for 
     use under subsection (c) that are designed to assess--
       ``(1) oral language proficiency in kindergarten;
       ``(2) oral language proficiency, including speaking and 
     listening skills, in first grade;
       ``(3) both oral language proficiency, including speaking 
     and listening skills, and reading and writing proficiency in 
     grades 2 and higher; and
       ``(4) attainment of challenging State student academic 
     achievement standards.

     ``SEC. 3122. REPORTING REQUIREMENTS.

       ``(a) States.--Based upon the evaluations provided to a 
     State under section 3121, each State that receives a grant 
     under subpart 1 shall prepare and submit every second year to 
     the Secretary a report on programs and activities undertaken 
     by the State under such subpart and the effectiveness of such 
     programs and activities in improving the education provided 
     to children who are limited English proficient.
       ``(b) Secretary.--Every second year, the Secretary shall 
     prepare and submit to the Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Health, Education, Labor, and Pensions of the Senate a 
     report on--
       ``(1) programs and activities undertaken by States under 
     subpart 1 and the effectiveness of such programs and 
     activities in improving the education provided to children 
     who are limited English proficient;
       ``(2) the types of instructional programs used under 
     subpart 1 to teach limited English proficient children;
       ``(3) the number of programs or projects, if any, that were 
     terminated because they were not able to reach program goals;
       ``(4) the number of limited English proficient children 
     served under subpart 1 who were transitioned out of special 
     instructional programs funded under such subpart into 
     classrooms where instruction is not tailored for limited 
     English proficient children; and
       ``(5) other information gathered from the reports submitted 
     under subsection (a).

     ``SEC. 3123. COORDINATION WITH RELATED PROGRAMS.

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

                    ``Subpart 3--General Provisions

     ``SEC. 3131. DEFINITIONS.

       ``For purposes of this part:
       ``(1) Children and youth.--The term `children and youth' 
     means individuals aged 3 through 21.
       ``(2) Community-based organization.--The term `community-
     based organization' means a private nonprofit organization of 
     demonstrated effectiveness or Indian tribe or tribally 
     sanctioned educational authority which is representative of a 
     community or significant segments of a community and which 
     provides educational or related services to individuals in 
     the community. Such term includes a Native Hawaiian or Native 
     American Pacific Islander native language educational 
     organization.
       ``(3) Eligible entity.--The term `eligible entity' means--
       ``(A) one or more local educational agencies; or
       ``(B) one or more local educational agencies in 
     collaboration with an institution of higher education, 
     community-based organization, or State educational agency.
       ``(4) Native hawaiian or native american pacific islander 
     native language educational organization.--The term `Native 
     Hawaiian or Native American Pacific Islander native language 
     educational organization' means a nonprofit organization with 
     a majority of its governing board and employees consisting of 
     fluent speakers of the traditional Native American languages 
     used in their educational programs and with not less than 5 
     years successful experience in providing educational services 
     in traditional Native American languages.
       ``(5) Native language.--The term `native language', when 
     used with reference to an individual who is limited English 
     proficient, means the language normally used by such 
     individual.
       ``(6) Specially qualified agency.--The term `specially 
     qualified agency', when used with respect to a fiscal year, 
     means an eligible entity located in a State that, for that 
     year--
       ``(A) does not submit to the Secretary an application under 
     sections 3105(a) and 3107; or
       ``(B) submits an application (or any modification to an 
     application) that the Secretary, after reasonable notice and 
     opportunity for a hearing, determines does not satisfy the 
     requirements of subpart 1.
       ``(7) Tribally sanctioned educational authority.--The term 
     `tribally sanctioned educational authority' means--
       ``(A) any department or division of education operating 
     within the administrative structure of the duly constituted 
     governing body of an Indian tribe; and
       ``(B) any nonprofit institution or organization that is--
       ``(i) chartered by the governing body of an Indian tribe to 
     operate a school described in section 3106(a) or otherwise to 
     oversee the delivery of educational services to members of 
     the tribe; and
       ``(ii) approved by the Secretary for the purpose of 
     carrying out programs under subpart 1 for individuals served 
     by a school described in section 3106(a).

     ``SEC. 3132. RULES OF CONSTRUCTION.

       ``Nothing in subpart 1 shall be construed--
       ``(1) to prohibit a local educational agency from serving 
     limited English proficient children and youth simultaneously 
     with students with similar educational needs, in the same 
     educational settings where appropriate;
       ``(2) to require a State or a local educational agency to 
     establish, continue, or eliminate any particular type of 
     instructional program for limited English proficient 
     children; or
       ``(3) to limit the preservation or use of Native American 
     languages as defined in the Native American Languages Act of 
     1990.

     ``SEC. 3133. LIMITATION ON FEDERAL REGULATIONS.

       ``The Secretary shall issue regulations under this part 
     only to the extent that such regulations are necessary to 
     ensure compliance with the specific requirements of this 
     part.

     ``SEC. 3134. LEGAL AUTHORITY UNDER STATE LAW.

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

     ``SEC. 3135. CIVIL RIGHTS.

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

     ``SEC. 3136. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

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

     SEC. 302. CONFORMING AMENDMENT TO DEPARTMENT OF EDUCATION 
                   ORGANIZATION ACT.

       (a) In General.--
       (1) Renaming of office.--The Department of Education 
     Organization Act is amended by striking ``Office of Bilingual 
     Education and Minority Languages Affairs'' each place such 
     term appears in the text and inserting ``Office of 
     Educational Services for Limited English Proficient 
     Children''.
       (2) Conforming amendment.--Section 209 of the Department of 
     Education Organization Act is amended by striking ``Director 
     of Bilingual Education and Minority Languages Affairs,'' and 
     inserting ``Director of Educational Services for Limited 
     English Proficient Children,''.
       (b) Clerical Amendments.--
       (1) Section 209.--The section heading for section 209 of 
     the Department of Education Organization Act is amended to 
     read as follows:


    ``office of educational services for limited english proficient 
                              children''.

       (2) Section 216.--The section heading for section 216 of 
     the Department of Education Organization Act is amended to 
     read as follows:

     ``SEC. 216. OFFICE OF EDUCATIONAL SERVICES FOR LIMITED 
                   ENGLISH PROFICIENT CHILDREN.''.

       (3) Table of contents.--
       (A) Section 209.--The table of contents of the Department 
     of Education Organization Act is amended by amending the item 
     relating to section 209 to read as follows:

``Sec. 209. Office of Educational Services for Limited English 
              Proficient Children.''.

       (B) Section 216.--The table of contents of the Department 
     of Education Organization Act is amended by amending the item 
     relating to section 216 to read as follows:

``Sec. 216. Office of Educational Services for Limited English 
              Proficient Children.''.

[[Page 8921]]



               PART B--INDIAN AND ALASKA NATIVE EDUCATION

     SEC. 311. ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.

       (a) In General.--Title III (as amended by section 301 of 
     this Act) is further amended by adding at the end the 
     following new part:

              ``PART B--INDIAN AND ALASKA NATIVE EDUCATION

                     ``Subpart 1--Indian Education

     ``SEC. 3201. FINDINGS.

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

     ``SEC. 3202. PURPOSE.

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

       ``CHAPTER 1--FORMULA GRANTS TO LOCAL EDUCATIONAL AGENCIES

     ``SEC. 3211. PURPOSE.

       ``It is the purpose of this chapter to support local 
     educational agencies in their efforts to reform elementary 
     and secondary school programs that serve Indian students in 
     order to ensure that such programs--
       ``(1) are based on challenging State academic content 
     standards and State student academic achievement standards 
     that are used for all students; and
       ``(2) are designed to assist Indian students in meeting 
     those standards and assist the Nation in reaching the 
     National Education Goals.

     ``SEC. 3212. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) In General.--
       ``(1) Enrollment requirements.--A local educational agency 
     shall be eligible for a grant under this chapter for any 
     fiscal year if the number of Indian children eligible under 
     section 3217 and who were enrolled in the schools of the 
     agency, and to whom the agency provided free public 
     education, during the preceding fiscal year--
       ``(A) was at least 10; or
       ``(B) constituted not less than 25 percent of the total 
     number of individuals enrolled in the schools of such agency.
       ``(2) Exclusion.--The requirement of paragraph (1) shall 
     not apply in Alaska, California, or Oklahoma, or with respect 
     to any local educational agency located on, or in proximity 
     to, a reservation.
       ``(b) Indian Tribes.--
       ``(1) In general.--If a local educational agency that is 
     eligible for a grant under this chapter does not establish a 
     parent committee under section 3214(c)(4) for such grant, an 
     Indian tribe that represents not less than one-half of the 
     eligible Indian children who are served by such local 
     educational agency may apply for such grant.
       ``(2) Special rule.--The Secretary shall treat each Indian 
     tribe applying for a grant pursuant to paragraph (1) as if 
     such Indian tribe were a local educational agency for 
     purposes of this chapter, except that any such tribe is not 
     subject to section 3214(c)(4), section 3218(c), or section 
     3219.

     ``SEC. 3213. AMOUNT OF GRANTS.

       ``(a) Amount of Grant Awards.--
       ``(1) In general.--Except as provided in subsection (b) and 
     paragraph (2), the Secretary shall allocate to each local 
     educational agency which has an approved application under 
     this chapter an amount equal to the product of--
       ``(A) the number of Indian children who are eligible under 
     section 3217 and served by such agency; and
       ``(B) the greater of--
       ``(i) the average per pupil expenditure of the State in 
     which such agency is located; or
       ``(ii) 80 percent of the average per pupil expenditure in 
     the United States.
       ``(2) Reduction.--The Secretary shall reduce the amount of 
     each allocation determined under paragraph (1) in accordance 
     with subsection (e).
       ``(b) Minimum Grant.--
       ``(1) In general.--Notwithstanding subsection (e), a local 
     educational agency or an Indian tribe (as authorized under 
     section 3212(b)) that is eligible for a grant under section 
     3212, and a school that is operated or supported by the 
     Bureau of Indian Affairs that is eligible for a grant under 
     subsection (d), that submits an application that is approved 
     by the Secretary, shall, subject to appropriations, receive a 
     grant under this chapter in an amount that is not less than 
     $3,000.
       ``(2) Consortia.--Local educational agencies may form a 
     consortium for the purpose of obtaining grants under this 
     chapter.
       ``(3) Increase.--The Secretary may increase the minimum 
     grant under paragraph (1) to not more than $4,000 for all 
     grantees if the Secretary determines such increase is 
     necessary to ensure the quality of the programs provided.
       ``(c) Definition.--For the purpose of this section, the 
     term `average per pupil expenditure of a State' means an 
     amount equal to--
       ``(1) the sum of the aggregate current expenditures of all 
     the local educational agencies in the State, plus any direct 
     current expenditures by the State for the operation of such 
     agencies, without regard to the sources of funds from which 
     such local or State expenditures were made, during the second 
     fiscal year preceding the fiscal year for which the 
     computation is made; divided by
       ``(2) the aggregate number of children who were included in 
     average daily attendance for whom such agencies provided free 
     public education during such preceding fiscal year.
       ``(d) Schools Operated or Supported by the Bureau of Indian 
     Affairs.--(1) Subject to subsection (e), in addition to the 
     grants awarded under subsection (a), the Secretary shall 
     allocate to the Secretary of the Interior an amount equal to 
     the product of--
       ``(A) the total number of Indian children enrolled in 
     schools that are operated by--
       ``(i) the Bureau of Indian Affairs; or
       ``(ii) an Indian tribe, or an organization controlled or 
     sanctioned by an Indian tribal government, for the children 
     of that tribe under a contract with, or grant from, the 
     Department of the Interior under the Indian Self-
     Determination Act or the Tribally Controlled Schools Act of 
     1988; and
       ``(B) the greater of--
       ``(i) the average per pupil expenditure of the State in 
     which the school is located; or
       ``(ii) 80 percent of the average per pupil expenditure in 
     the United States.
       ``(2) Any school described in paragraph (1)(A) that wishes 
     to receive an allocation under this chapter shall submit an 
     application in accordance with section 3214, and shall 
     otherwise be treated as a local educational agency for the 
     purpose of this chapter, except that such school shall not be 
     subject to section 3214(c)(4), section 3218(c), or section 
     3219.
       ``(e) Ratable Reductions.--If the sums appropriated for any 
     fiscal year under section 3252(a) are insufficient to pay in 
     full the amounts determined for local educational agencies 
     under subsection (a)(1) and for the Secretary of the Interior 
     under subsection (d), each of those amounts shall be ratably 
     reduced.

     ``SEC. 3214. APPLICATIONS.

       ``(a) Application Required.--Each local educational agency 
     that desires to receive a grant under this chapter shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       ``(b) Comprehensive Program Required.--Each application 
     submitted under subsection (a) shall include a comprehensive 
     program for meeting the needs of Indian children served by 
     the local educational agency, including the language and 
     cultural needs of the children, that--
       ``(1) provides programs and activities to meet the 
     culturally related academic needs of American Indian and 
     Alaska Native students;
       ``(2)(A) is consistent with State and local plans under 
     other provisions of this Act; and
       ``(B) includes academic content and student performance 
     goals for such children, and benchmarks for attaining such 
     goals, that are based on the challenging State standards 
     under title I;
       ``(3) explains how Federal, State, and local programs, 
     especially under title I, will meet the needs of such 
     students;
       ``(4) demonstrates how funds made available under this 
     chapter will be used for activities described in section 
     3215;

[[Page 8922]]

       ``(5) describes the professional development opportunities 
     that will be provided, as needed, to ensure that--
       ``(A) teachers and other school professionals who are new 
     to the Indian community are prepared to work with Indian 
     children; and
       ``(B) all teachers who will be involved in programs 
     assisted under this chapter have been properly trained to 
     carry out such programs; and
       ``(6) describes how the local educational agency--
       ``(A) will periodically assess the progress of all Indian 
     children enrolled in the schools of the local educational 
     agency, including Indian children who do not participate in 
     programs assisted under this chapter, in meeting the goals 
     described in paragraph (2);
       ``(B) will provide the results of each assessment referred 
     to in subparagraph (A) to--
       ``(i) the committee of parents described in subsection 
     (c)(4); and
       ``(ii) the community served by the local educational 
     agency; and
       ``(C) is responding to findings of any previous assessments 
     that are similar to the assessments described in subparagraph 
     (A).
       ``(c) Assurances.--Each application submitted under 
     subsection (a) shall include assurances that--
       ``(1) the local educational agency will use funds received 
     under this chapter only to supplement the level of funds 
     that, in the absence of the Federal funds made available 
     under this chapter, such agency would make available for the 
     education of Indian children, and not to supplant such funds;
       ``(2) the local educational agency will submit such reports 
     to the Secretary, in such form and containing such 
     information, as the Secretary may require to--
       ``(A) carry out the functions of the Secretary under this 
     chapter; and
       ``(B) determine the extent to which funds provided to the 
     local educational agency under this chapter are effective in 
     improving the educational achievement of Indian students 
     served by such agency;
       ``(3) the program for which assistance is sought--
       ``(A) is based on a comprehensive local assessment and 
     prioritization of the unique educational and culturally 
     related academic needs of the American Indian and Alaska 
     Native students to whom the local educational agency is 
     providing an education;
       ``(B) will use the best available talents and resources, 
     including individuals from the Indian community; and
       ``(C) was developed by such agency in open consultation 
     with parents of Indian children and teachers, and, if 
     appropriate, Indian students from secondary schools, 
     including public hearings held by such agency to provide the 
     individuals described in this subparagraph a full opportunity 
     to understand the program and to offer recommendations 
     regarding the program; and
       ``(4) the local educational agency developed the program 
     with the participation and written approval of a committee--
       ``(A) that is composed of, and selected by--
       ``(i) parents of Indian children in the local educational 
     agency's schools and teachers; and
       ``(ii) if appropriate, Indian students attending secondary 
     schools;
       ``(B) a majority of whose members are parents of Indian 
     children;
       ``(C) that sets forth such policies and procedures, 
     including policies and procedures relating to the hiring of 
     personnel, as will ensure that the program for which 
     assistance is sought will be operated and evaluated in 
     consultation with, and with the involvement of, parents of 
     the children, and representatives of the area, to be served;
       ``(D) with respect to an application describing a 
     schoolwide program in accordance with section 3215(c), that 
     has--
       ``(i) reviewed in a timely fashion the program; and
       ``(ii) determined that the program will not diminish the 
     availability of culturally related activities for American 
     Indian and Alaskan Native students; and
       ``(E) that has adopted reasonable bylaws for the conduct of 
     the activities of the committee and abides by such bylaws.

     ``SEC. 3215. AUTHORIZED SERVICES AND ACTIVITIES.

       ``(a) General Requirements.--Each local educational agency 
     that receives a grant under this chapter shall use the grant 
     funds, in a manner consistent with the purpose specified in 
     section 3211, for services and activities that--
       ``(1) are designed to carry out the comprehensive program 
     of the local educational agency for Indian students, and 
     described in the application of the local educational agency 
     submitted to the Secretary under section 3214(b);
       ``(2) are designed with special regard for the language and 
     cultural needs of the Indian students; and
       ``(3) supplement and enrich the regular school program of 
     such agency.
       ``(b) Particular Activities.--The services and activities 
     referred to in subsection (a) may include--
       ``(1) culturally related activities that support the 
     program described in the application submitted by the local 
     educational agency;
       ``(2) early childhood and family programs that emphasize 
     school readiness;
       ``(3) enrichment programs that focus on problem solving and 
     cognitive skills development and directly support the 
     attainment of challenging State academic content standards 
     and State student academic achievement standards;
       ``(4) integrated educational services in combination with 
     other programs that meet the needs of Indian children and 
     their families;
       ``(5) career preparation activities to enable Indian 
     students to participate in programs such as the programs 
     supported by the Carl D. Perkins Vocational and Technical 
     Education Act of 1998, including programs for tech-prep, 
     mentoring, and apprenticeship;
       ``(6) activities to educate individuals concerning 
     substance abuse and to prevent substance abuse;
       ``(7) the acquisition of equipment, but only if the 
     acquisition of the equipment is essential to meet the 
     purposes described in section 3211; and
       ``(8) family literacy services.
       ``(c) Schoolwide Programs.--Notwithstanding any other 
     provision of law, a local educational agency may use funds 
     made available to such agency under this chapter to support a 
     schoolwide program under section 1114 if--
       ``(1) the committee composed of parents established 
     pursuant to section 3214(c)(4) approves the use of the funds 
     for the schoolwide program; and
       ``(2) the schoolwide program is consistent with the 
     purposes described in section 3211.
       ``(d) Limitation on Administrative Costs.--Not more than 5 
     percent of the funds provided to a grantee under this chapter 
     for any fiscal year may be used for administrative purposes.

     ``SEC. 3216. INTEGRATION OF SERVICES AUTHORIZED.

       ``(a) Plan.--An entity receiving funds under this chapter 
     may submit a plan to the Secretary for the integration of 
     education and related services provided to Indian students.
       ``(b) Coordination of Programs.--Upon the receipt of an 
     acceptable plan, the Secretary, in cooperation with each 
     Federal agency providing grants for the provision of 
     education and related services to the applicant, shall 
     authorize the applicant to coordinate, in accordance with 
     such plan, its federally funded education and related 
     services programs, or portions thereof, serving Indian 
     students in a manner that integrates the program services 
     involved into a single, coordinated, comprehensive program 
     and reduces administrative costs by consolidating 
     administrative functions.
       ``(c) Programs Affected.--The funds that may be 
     consolidated in a demonstration project under any such plan 
     referred to in subsection (b) shall include funds for any 
     Federal program exclusively serving Indian children or the 
     funds reserved under any program to exclusively serve Indian 
     children under which the applicant is eligible for receipt of 
     funds under a statutory or administrative formula for the 
     purposes of providing education and related services which 
     would be used to serve Indian students.
       ``(d) Plan Requirements.--For a plan to be acceptable 
     pursuant to subsection (b), it shall--
       ``(1) identify the programs or funding sources to be 
     consolidated;
       ``(2) be consistent with the purposes of this section 
     authorizing the services to be integrated in a demonstration 
     project;
       ``(3) describe a comprehensive strategy which identifies 
     the full range of potential educational opportunities and 
     related services to be provided to assist Indian students to 
     achieve the goals set forth in this chapter;
       ``(4) describe the way in which services are to be 
     integrated and delivered and the results expected from the 
     plan;
       ``(5) identify the projected expenditures under the plan in 
     a single budget;
       ``(6) identify the local, State, or tribal agency or 
     agencies to be involved in the delivery of the services 
     integrated under the plan;
       ``(7) identify any statutory provisions, regulations, 
     policies, or procedures that the applicant believes need to 
     be waived in order to implement its plan;
       ``(8) set forth measures of student achievement and 
     performance goals designed to be met within a specified 
     period of time; and
       ``(9) be approved by a parent committee formed in 
     accordance with section 3214(c)(4), if such a committee 
     exists.
       ``(e) Plan Review.--Upon receipt of the plan from an 
     eligible entity, the Secretary shall consult with the 
     Secretary of each Federal department providing funds to be 
     used to implement the plan, and with the entity submitting 
     the plan. The parties so consulting shall identify any 
     waivers of statutory requirements or of Federal departmental 
     regulations, policies, or procedures necessary to enable the 
     applicant to implement its plan. Notwithstanding any other 
     provision of law, the Secretary of the affected department or 
     departments shall have the authority to waive any regulation, 
     policy, or procedure promulgated by that department that has 
     been so identified by the applicant or department, unless the 
     Secretary of the affected department determines that such a 
     waiver is inconsistent with the intent of this chapter or 
     those provisions of the statute from which the program 
     involved derives its authority which are specifically 
     applicable to Indian students.
       ``(f) Plan Approval.--Within 90 days after the receipt of 
     an applicant's plan by the Secretary, the Secretary shall 
     inform the applicant, in writing, of the Secretary's approval 
     or disapproval of the plan. If the plan is disapproved, the 
     applicant shall be informed, in writing, of the reasons for 
     the disapproval and shall be given an opportunity to amend 
     its plan or to petition the Secretary to reconsider such 
     disapproval.
       ``(g) Responsibilities of Department of Education.--Not 
     later than 180 days after the

[[Page 8923]]

     date of the enactment of the No Child Left Behind Act of 
     2001, the Secretary of Education, the Secretary of the 
     Interior, and the head of any other Federal department or 
     agency identified by the Secretary of Education, shall enter 
     into an interdepartmental memorandum of agreement providing 
     for the implementation of the demonstration projects 
     authorized under this section. The lead agency head for a 
     demonstration program under this section shall be--
       ``(1) the Secretary of the Interior, in the case of 
     applicant meeting the definition of contract or grant school 
     under title XI of the Education Amendments of 1978; or
       ``(2) the Secretary of Education, in the case of any other 
     applicant.
       ``(h) Responsibilities of Lead Agency.--The 
     responsibilities of the lead agency shall include--
       ``(1) the use of a single report format related to the plan 
     for the individual project which shall be used by an eligible 
     entity to report on the activities undertaken under the 
     project;
       ``(2) the use of a single report format related to the 
     projected expenditures for the individual project which shall 
     be used by an eligible entity to report on all project 
     expenditures;
       ``(3) the development of a single system of Federal 
     oversight for the project, which shall be implemented by the 
     lead agency; and
       ``(4) the provision of technical assistance to an eligible 
     entity appropriate to the project, except that an eligible 
     entity shall have the authority to accept or reject the plan 
     for providing such technical assistance and the technical 
     assistance provider.
       ``(i) Report Requirements.--A single report format shall be 
     developed by the Secretary, consistent with the requirements 
     of this section. Such report format, together with records 
     maintained on the consolidated program at the local level, 
     shall contain such information as will allow a determination 
     that the eligible entity has complied with the requirements 
     incorporated in its approved plan, including the 
     demonstration of student achievement, and will provide 
     assurances to each Secretary that the eligible entity has 
     complied with all directly applicable statutory requirements 
     and with those directly applicable regulatory requirements 
     which have not been waived.
       ``(j) No Reduction in Amounts.--In no case shall the amount 
     of Federal funds available to an eligible entity involved in 
     any demonstration project be reduced as a result of the 
     enactment of this section.
       ``(k) Interagency Fund Transfers Authorized.--The Secretary 
     is authorized to take such action as may be necessary to 
     provide for an interagency transfer of funds otherwise 
     available to an eligible entity in order to further the 
     purposes of this section.
       ``(l) Administration of Funds.--
       ``(1) In general.--Program funds shall be administered in 
     such a manner as to allow for a determination that funds from 
     specific a program or programs are spent on allowable 
     activities authorized under such program, except that the 
     eligible entity shall determine the proportion of the funds 
     granted which shall be allocated to such program.
       ``(2) Separate records not required.--Nothing in this 
     section shall be construed as requiring the eligible entity 
     to maintain separate records tracing any services or 
     activities conducted under its approved plan to the 
     individual programs under which funds were authorized, nor 
     shall the eligible entity be required to allocate 
     expenditures among such individual programs.
       ``(m) Overage.--All administrative costs may be commingled 
     and participating entities shall be entitled to the full 
     amount of such costs (under each program or department's 
     regulations), and no overage shall be counted for Federal 
     audit purposes, provided that the overage is used for the 
     purposes provided for under this section.
       ``(n) Fiscal Accountability.--Nothing in this subpart shall 
     be construed so as to interfere with the ability of the 
     Secretary or the lead agency to fulfill the responsibilities 
     for the safeguarding of Federal funds pursuant to the Single 
     Audit Act of 1984.
       ``(o) Report on Statutory Obstacles to Program 
     Integration.--
       ``(1) Preliminary report.--Not later than 2 years after the 
     date of the enactment of the No Child Left Behind Act of 
     2001, the Secretary of Education shall submit a preliminary 
     report to the Committee on Health, Education, Labor, and 
     Pensions of the Senate and the Committee on Education and the 
     Workforce of the House of Representatives on the status of 
     the implementation of the demonstration program authorized 
     under this section.
       ``(2) Final report.--Not later than 5 years after the date 
     of the enactment of the No Child Left Behind Act of 2001, the 
     Secretary of Education shall submit a report to the Committee 
     on Health, Education, Labor, and Pensions of the Senate and 
     the Committee on Education and the Workforce of the House of 
     Representatives on the results of the implementation of the 
     demonstration program authorized under this section. Such 
     report shall identify statutory barriers to the ability of 
     participants to integrate more effectively their education 
     and related services to Indian students in a manner 
     consistent with the purposes of this section.
       ``(p) Definitions.--For the purposes of this section, the 
     term `Secretary' means--
       ``(1) the Secretary of the Interior, in the case of 
     applicant meeting the definition of contract or grant school 
     under title XI of the Education Amendments of 1978; or
       ``(2) the Secretary of Education, in the case of any other 
     applicant.

     ``SEC. 3217. STUDENT ELIGIBILITY FORMS.

       ``(a) In General.--The Secretary shall require that, as 
     part of an application for a grant under this chapter, each 
     applicant shall maintain a file, with respect to each Indian 
     child for whom the local educational agency provides a free 
     public education, that contains a form that sets forth 
     information establishing the status of the child as an Indian 
     child eligible for assistance under this chapter and that 
     otherwise meets the requirements of subsection (b).
       ``(b) Forms.--
       ``(1) In general.--The form described in subsection (a) 
     shall include--
       ``(A) either--
       ``(i)(I) the name of the tribe or band of Indians (as 
     described in section 3251(3)) with respect to which the child 
     claims membership;
       ``(II) the enrollment number establishing the membership of 
     the child (if readily available); and
       ``(III) the name and address of the organization that 
     maintains updated and accurate membership data for such tribe 
     or band of Indians; or
       ``(ii) if the child is not a member of a tribe or band of 
     Indians, the name, the enrollment number (if readily 
     available), and the organization (and address thereof) 
     responsible for maintaining updated and accurate membership 
     rolls of the tribe of any parent or grandparent of the child 
     from whom the child claims eligibility;
       ``(B) a statement of whether the tribe or band of Indians 
     with respect to which the child, parent, or grandparent of 
     the child claims membership is federally recognized;
       ``(C) the name and address of the parent or legal guardian 
     of the child;
       ``(D) a signature of the parent or legal guardian of the 
     child that verifies the accuracy of the information supplied; 
     and
       ``(E) any other information that the Secretary considers 
     necessary to provide an accurate program profile.
       ``(2) Minimum information.--In order for a child to be 
     eligible to be counted for the purpose of computing the 
     amount of a grant award made under section 3213, an 
     eligibility form prepared pursuant to this section for a 
     child shall include--
       ``(A) the name of the child;
       ``(B) the name of the tribe or band of Indians (as 
     described in section 3251(3)) with respect to which the child 
     claims eligibility; and
       ``(C) the dated signature of the parent or guardian of the 
     child.
       ``(3) Failure.--The failure of an applicant to furnish any 
     information described in this subsection other than the 
     information described in paragraph (2) with respect to any 
     child shall have no bearing on the determination of whether 
     the child is an eligible Indian child for the purposes of 
     determining the amount of a grant award made under section 
     3213.
       ``(c) Statutory Construction.--Nothing in this section 
     shall be construed to affect a definition contained in 
     section 3251.
       ``(d) Forms and Standards of Proof.--The forms and the 
     standards of proof (including the standard of good faith 
     compliance) that were in use during the 1985-1986 academic 
     year to establish the eligibility of a child for entitlement 
     under the Indian Elementary and Secondary School Assistance 
     Act shall be the forms and standards of proof used--
       ``(1) to establish such eligibility; and
       ``(2) to meet the requirements of subsection (a).
       ``(e) Documentation.--For purposes of determining whether a 
     child is eligible to be counted for the purpose of computing 
     the amount of a grant under section 3213, the membership of 
     the child, or any parent or grandparent of the child, in a 
     tribe or band of Indians may be established by proof other 
     than an enrollment number, notwithstanding the availability 
     of an enrollment number for a member of such tribe or band. 
     Nothing in subsection (b) shall be construed to require the 
     furnishing of an enrollment number.
       ``(f) Monitoring and Evaluation Review.--
       ``(1) In general.--(A) For each fiscal year, in order to 
     provide such information as is necessary to carry out the 
     responsibility of the Secretary to provide technical 
     assistance under this chapter, the Secretary shall conduct a 
     monitoring and evaluation review of a sampling of the 
     recipients of grants under this chapter. The sampling 
     conducted under this subparagraph shall take into account the 
     size of the local educational agency and the geographic 
     location of such agency.
       ``(B) A local educational agency may not be held liable to 
     the United States or be subject to any penalty, by reason of 
     the findings of an audit that relates to the date of 
     completion, or the date of submission, of any forms used to 
     establish, before April 28, 1988, the eligibility of a child 
     for entitlement under the Indian Elementary and Secondary 
     School Assistance Act.
       ``(2) False information.--Any local educational agency that 
     provides false information in an application for a grant 
     under this chapter shall--
       ``(A) be ineligible to apply for any other grant under this 
     subpart; and
       ``(B) be liable to the United States for any funds that 
     have not been expended.
       ``(3) Excluded children.--A student who provides false 
     information for the form required under subsection (a) shall 
     not be counted for the purpose of computing the amount of a 
     grant under section 3213.
       ``(g) Tribal Grant and Contract Schools.--Notwithstanding 
     any other provision of this section, in awarding funds under 
     this chapter to a

[[Page 8924]]

     tribal school that receives a grant or contract from the 
     Bureau of Indian Affairs, the Secretary shall use only one of 
     the following, as selected by the school:
       ``(1) A count of the number of students in those schools 
     certified by the Bureau.
       ``(2) A count of the number of students for whom the school 
     has eligibility forms that comply with this section.
       ``(h) Timing of Child Counts.--For purposes of determining 
     the number of children to be counted in calculating the 
     amount of a local educational agency's grant under this 
     chapter (other than in the case described in subsection 
     (g)(1)), the local educational agency shall--
       ``(1) establish a date on, or a period not longer than 31 
     consecutive days during which, the agency counts those 
     children, so long as that date or period occurs before the 
     deadline established by the Secretary for submitting an 
     application under section 3214; and
       ``(2) determine that each such child was enrolled, and 
     receiving a free public education, in a school of the agency 
     on that date or during that period, as the case may be.

     ``SEC. 3218. PAYMENTS.

       ``(a) In General.--Subject to subsections (b) and (c), the 
     Secretary shall pay to each local educational agency that 
     submits an application that is approved by the Secretary 
     under this chapter the amount determined under section 3213. 
     The Secretary shall notify the local educational agency of 
     the amount of the payment not later than June 1 of the year 
     for which the Secretary makes the payment.
       ``(b) Payments Taken Into Account by the State.--The 
     Secretary may not make a grant under this chapter to a local 
     educational agency for a fiscal year if, for such fiscal 
     year, the State in which the local educational agency is 
     located takes into consideration payments made under this 
     chapter in determining the eligibility of the local 
     educational agency for State aid, or the amount of the State 
     aid, with respect to the free public education of children 
     during such fiscal year or the preceding fiscal year.
       ``(c) Reduction of Payment for Failure To Maintain Fiscal 
     Effort.--
       ``(1) In general.--The Secretary may not pay a local 
     educational agency the full amount of a grant award 
     determined under section 3213 for any fiscal year unless the 
     State educational agency notifies the Secretary, and the 
     Secretary determines that, with respect to the provision of 
     free public education by the local educational agency for the 
     preceding fiscal year, the combined fiscal effort of the 
     local educational agency and the State, computed on either a 
     per student or aggregate expenditure basis, was not less than 
     90 percent of the amount of the combined fiscal effort, 
     computed on the same basis, for the second preceding fiscal 
     year.
       ``(2) Failure to maintain effort.--If, for any fiscal year, 
     the Secretary determines that a local educational agency 
     failed to maintain the fiscal effort of such agency at the 
     level specified in paragraph (1), the Secretary shall--
       ``(A) reduce the amount of the grant that would otherwise 
     be made to such agency under this chapter in the exact 
     proportion of such agency's failure to maintain its fiscal 
     effort at such level; and
       ``(B) not use the reduced amount of the agency's 
     expenditures for the preceding year to determine compliance 
     with paragraph (1) for any succeeding fiscal year, but shall 
     use the amount of expenditures that would have been required 
     to comply with paragraph (1).
       ``(3) Waiver.--(A) The Secretary may waive the requirement 
     of paragraph (1), for not more than 1 year at a time, if the 
     Secretary determines that the failure to comply with such 
     requirement is due to exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the agency's financial resources.
       ``(B) The Secretary shall not use the reduced amount of 
     such agency's expenditures for the fiscal year preceding the 
     fiscal year for which a waiver is granted to determine 
     compliance with paragraph (1) for any succeeding fiscal year, 
     but shall use the amount of expenditures that would have been 
     required to comply with paragraph (1) in the absence of the 
     waiver.
       ``(d) Reallocations.--The Secretary may reallocate, in a 
     manner that the Secretary determines will best carry out the 
     purpose of this chapter, any amounts that--
       ``(1) based on estimates made by local educational agencies 
     or other information, the Secretary determines will not be 
     needed by such agencies to carry out approved programs under 
     this chapter; or
       ``(2) otherwise become available for reallocation under 
     this chapter.

     ``SEC. 3219. STATE EDUCATIONAL AGENCY REVIEW.

       ``Before submitting an application to the Secretary under 
     section 3214, a local educational agency shall submit the 
     application to the State educational agency, which may 
     comment on such application. If the State educational agency 
     comments on the application, it shall comment on all 
     applications submitted by local educational agencies in the 
     State and shall provide those comments to the respective 
     local educational agencies, with an opportunity to respond.

   ``CHAPTER 2--SPECIAL PROGRAMS AND PROJECTS TO IMPROVE EDUCATIONAL 
                   OPPORTUNITIES FOR INDIAN CHILDREN

     ``SEC. 3221. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR 
                   INDIAN CHILDREN.

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

[[Page 8925]]

       ``(ii) assurances that the applicant will participate, at 
     the request of the Secretary, in any national evaluation of 
     activities assisted under this section;
       ``(iii) information demonstrating that the proposed program 
     is either a research-based program (which may be a research-
     based program that has been modified to be culturally 
     appropriate for the students who will be served);
       ``(iv) a description of how the applicant will incorporate 
     the proposed services into the ongoing school program once 
     the grant period is over; and
       ``(v) such other assurances and information as the 
     Secretary may reasonably require.
       ``(e) Administrative Costs.--Not more than 5 percent of the 
     funds provided to a grantee under this chapter for any fiscal 
     year may be used for administrative purposes.

     ``SEC. 3222. PROFESSIONAL DEVELOPMENT FOR TEACHERS AND 
                   EDUCATION PROFESSIONALS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to increase the number of qualified Indian 
     individuals in teaching or other education professions that 
     serve Indian people;
       ``(2) to provide training to qualified Indian individuals 
     to enable such individuals to become teachers, 
     administrators, teacher aides, social workers, and ancillary 
     educational personnel; and
       ``(3) to improve the skills of qualified Indian individuals 
     who serve in the capacities described in paragraph (2).
       ``(b) Eligible Entities.--For the purpose of this section, 
     the term `eligible entity' means--
       ``(1) an institution of higher education, including an 
     Indian institution of higher education;
       ``(2) a State or local educational agency, in consortium 
     with an institution of higher education; and
       ``(3) an Indian tribe or organization, in consortium with 
     an institution of higher education.
       ``(c) Program Authorized.--The Secretary is authorized to 
     award grants to eligible entities having applications 
     approved under this section to enable such entities to carry 
     out the activities described in subsection (d).
       ``(d) Authorized Activities.--
       ``(1) In general.--Grant funds under this section shall be 
     used to provide support and training for Indian individuals 
     in a manner consistent with the purposes of this section. 
     Such activities may include but are not limited to, 
     continuing programs, symposia, workshops, conferences, and 
     direct financial support.
       ``(2) Special rules.--(A) For education personnel, the 
     training received pursuant to a grant under this section may 
     be inservice or preservice training.
       ``(B) For individuals who are being trained to enter any 
     field other than teaching, the training received pursuant to 
     a grant under this section shall be in a program that results 
     in a graduate degree.
       ``(e) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner and accompanied by 
     such information, as the Secretary may reasonably require.
       ``(f) Special Rule.--In making grants under this section, 
     the Secretary--
       ``(1) shall consider the prior performance of the eligible 
     entity; and
       ``(2) may not limit eligibility to receive a grant under 
     this section on the basis of--
       ``(A) the number of previous grants the Secretary has 
     awarded such entity; or
       ``(B) the length of any period during which such entity 
     received such grants.
       ``(g) Grant Period.--Each grant under this section shall be 
     awarded for a period of not more than 5 years.
       ``(h) Service Obligation.--
       ``(1) In general.--The Secretary shall require, by 
     regulation, that an individual who receives training pursuant 
     to a grant made under this section--
       ``(A) perform work--
       ``(i) related to the training received under this section; 
     and
       ``(ii) that benefits Indian people; or
       ``(B) repay all or a prorated part of the assistance 
     received.
       ``(2) Reporting.--The Secretary shall establish, by 
     regulation, a reporting procedure under which a grant 
     recipient under this section shall, not later than 12 months 
     after the date of completion of the training, and 
     periodically thereafter, provide information concerning the 
     compliance of such recipient with the work requirement under 
     paragraph (1).

               ``CHAPTER 3--NATIONAL RESEARCH ACTIVITIES

     ``SEC. 3231. NATIONAL ACTIVITIES.

       ``(a) Authorized Activities.--The Secretary may use funds 
     made available under section 3252(b) for each fiscal year 
     to--
       ``(1) conduct research related to effective approaches for 
     the education of Indian children and adults;
       ``(2) evaluate federally assisted education programs from 
     which Indian children and adults may benefit;
       ``(3) collect and analyze data on the educational status 
     and needs of Indians; and
       ``(4) carry out other activities that are consistent with 
     the purpose of this subpart.
       ``(b) Eligibility.--The Secretary may carry out any of the 
     activities described in subsection (a) directly or through 
     grants to, or contracts or cooperative agreements with Indian 
     tribes, Indian organizations, State educational agencies, 
     local educational agencies, institutions of higher education, 
     including Indian institutions of higher education, and other 
     public and private agencies and institutions.
       ``(c) Coordination.--Research activities supported under 
     this section--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to assure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out by the Office of Indian 
     Education Programs and the Office of Educational Research and 
     Improvement.

                  ``CHAPTER 4--FEDERAL ADMINISTRATION

     ``SEC. 3241. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

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

     ``SEC. 3242. PEER REVIEW.

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

     ``SEC. 3243. PREFERENCE FOR INDIAN APPLICANTS.

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

     ``SEC. 3244. MINIMUM GRANT CRITERIA.

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

       ``CHAPTER 5--DEFINITIONS; AUTHORIZATIONS OF APPROPRIATIONS

     ``SEC. 3251. DEFINITIONS.

       ``For the purposes of this subpart:
       ``(1) Adult.--The term `adult' means an individual who--
       ``(A) has attained the age of 16 years; or
       ``(B) has attained an age that is greater than the age of 
     compulsory school attendance under an applicable State law.
       ``(2) Free public education.--The term `free public 
     education' means education that is--
       ``(A) provided at public expense, under public supervision 
     and direction, and without tuition charge; and
       ``(B) provided as elementary or secondary education in the 
     applicable State or to preschool children.
       ``(3) Indian.--The term `Indian' means an individual who 
     is--
       ``(A) a member of an Indian tribe or band, as membership is 
     defined by the tribe or band, including--
       ``(i) any tribe or band terminated since 1940; and
       ``(ii) any tribe or band recognized by the State in which 
     the tribe or band resides;
       ``(B) a descendant, in the first or second degree, of an 
     individual described in subparagraph (A);
       ``(C) considered by the Secretary of the Interior to be an 
     Indian for any purpose;
       ``(D) an Eskimo, Aleut, or other Alaska Native; or
       ``(E) a member of an organized Indian group that received a 
     grant under the Indian Education Act of 1988 as it was in 
     effect the day preceding the date of the enactment of the 
     Improving America's Schools Act of 1994.

     ``SEC. 3252. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) Chapter 1.--For the purpose of carrying out chapter 1 
     of this subpart, there are authorized to be appropriated 
     $100,000,000 for fiscal year 2002, and such sums as may be 
     necessary for each of fiscal years 2003 through 2006.
       ``(b) Chapters 2 and 3.--For the purpose of carrying out 
     chapters 2 and 3 of this subpart, there are authorized to be 
     appropriated $25,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each of the fiscal years 2003 through 
     2006.''.
       (b) Savings Provision.--Funds appropriated for part A of 
     title IX of the Elementary and Secondary Education Act of 
     1965 (as in effect on

[[Page 8926]]

     the day before the date of the enactment of this Act) shall 
     be available for use under subpart 1 of part B of title III 
     of such Act, as added by this section.

     SEC. 312. ALASKA NATIVE EDUCATION.

       (a) In General.--Part B of title III (as added by section 
     311 of this Act) is further amended by adding at the end the 
     following new subpart:

                  ``Subpart 2--Alaska Native Education

     ``SEC. 3301. SHORT TITLE.

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

     ``SEC. 3302. FINDINGS.

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

     ``SEC. 3303. PURPOSE.

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

     ``SEC. 3304. PROGRAM AUTHORIZED.

       ``(a) General Authority.--
       ``(1) Program authorized.--The Secretary is authorized to 
     make grants to, or enter into contracts with, Alaska Native 
     organizations, educational entities with experience in 
     developing or operating Alaska Native programs or programs of 
     instruction conducted in Alaska Native languages, and 
     consortia of such organizations and entities to carry out 
     programs that meet the purpose of this subpart.
       ``(2) Permissible activities.--Programs under this subpart 
     may include--
       ``(A) the development and implementation of plans, methods, 
     and strategies to improve the education of Alaska Natives;
       ``(B) the development of curricula and educational programs 
     that address the educational needs of Alaska Native students, 
     including--
       ``(i) curriculum materials that reflect the cultural 
     diversity or the contributions of Alaska Natives;
       ``(ii) instructional programs that make use of Native 
     Alaskan languages; and
       ``(iii) networks that introduce successful programs, 
     materials, and techniques to urban and rural schools;
       ``(C) professional development activities for educators, 
     including--
       ``(i) programs to prepare teachers to address the cultural 
     diversity and unique needs of Alaska Native students;
       ``(ii) in-service programs to improve the ability of 
     teachers to meet the unique needs of Alaska Native students; 
     and
       ``(iii) recruiting and preparing teachers who are Alaska 
     Natives, reside in communities with high concentrations of 
     Alaska Native students, or are likely to succeed as teachers 
     in isolated, rural communities and engage in cross-cultural 
     instruction;
       ``(D) the development and operation of home instruction 
     programs for Alaska Native preschool children, the purpose of 
     which is to ensure the active involvement of parents in their 
     children's education from the earliest ages;
       ``(E) family literacy services;
       ``(F) the development and operation of student enrichment 
     programs in science and mathematics that--
       ``(i) are designed to prepare Alaska Native students from 
     rural areas, who are preparing to enter high school, to excel 
     in science and math; and
       ``(ii) provide appropriate support services to the families 
     of such students that are needed to enable such students to 
     benefit from the program;
       ``(G) research and data collection activities to determine 
     the educational status and needs of Alaska Native children 
     and adults;
       ``(H) other research and evaluation activities related to 
     programs under this subpart; and
       ``(I) other activities, consistent with the purposes of 
     this subpart, to meet the educational needs of Alaska Native 
     children and adults.
       ``(3) Home instruction programs.--Home instruction programs 
     for Alaska Native preschool children under paragraph (2)(D) 
     may include--
       ``(A) programs for parents and their infants, from prenatal 
     through age three;
       ``(B) preschool programs; and
       ``(C) training, education, and support for parents in such 
     areas as reading readiness, observation, story-telling, and 
     critical thinking.
       ``(b) Limitation on Administrative Costs.--Not more than 5 
     percent of funds provided to a grantee under this section for 
     any fiscal year may be used for administrative purposes.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated $15,000,000 for fiscal year 
     2002, and such sums as may be necessary for each of the 
     fiscal years 2003 through 2006 to carry out this subpart.

     ``SEC. 3305. ADMINISTRATIVE PROVISIONS.

       ``(a) Application Required.--No grant may be made under 
     this subpart, nor any contract be entered into under this 
     subpart, unless an application is submitted to the Secretary 
     in such form, in such manner, and containing such information 
     as the Secretary may determine necessary to carry out the 
     provisions of this subpart.
       ``(b) Applications.--State and local educational agencies 
     may apply for an award under this subpart only as subpart of 
     a consortium involving an Alaska Native organization. This 
     consortium may include other eligible applicants.
       ``(c) Consultation Required.--Each applicant for funding 
     shall provide for ongoing advice from and consultation with 
     representatives of the Alaska Native community.
       ``(d) Local Educational Agency Coordination.--Each 
     applicant for an award under this subpart shall inform each 
     local educational agency serving students who would 
     participate in the project about its application.

     ``SEC. 3306. DEFINITIONS.

       ``For purposes of this subpart--
       ``(1) the term `Alaska Native' has the same meaning as the 
     term `Native' has in section 3(b) of the Alaska Native Claims 
     Settlement Act; and
       ``(2) the term `Alaska Native organization' means a 
     federally recognized tribe, consortium of tribes, regional 
     nonprofit Native association, and other Alaska Native 
     organizations that--
       ``(A) has or commits to acquire expertise in the education 
     of Alaska Natives; and
       ``(B) has Alaska Natives in substantive and policy-making 
     positions within the organization.''.
       (b) Savings Provision.--Funds appropriated for part C of 
     title IX of the Elementary and Secondary Education Act of 
     1965 (as in effect on the day before the date of the 
     enactment of this Act) shall be available for use under 
     subpart 2 of part B of title III of such Act, as added by 
     this section.

     SEC. 313. 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 the 
     Federal Government has the sole responsibility for the 
     operation and financial support of the Bureau of Indian 
     Affairs funded school system that it has established on or 
     near Indian reservations and Indian trust lands throughout 
     the Nation for Indian children.
       ``(b) Policy.--It is the policy of the United States to 
     work in full cooperation with Indian tribes toward the goal 
     of assuring that the programs of the Bureau of Indian Affairs 
     funded school system are of the highest quality and meet the 
     unique educational and cultural needs of Indian children.

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

       ``(a) Purpose.--The purpose of the standards implemented 
     under this section shall be to afford Indian students being 
     served by a school funded by the Bureau of Indian Affairs the 
     same opportunities as all other students in the United States 
     to achieve the same challenging State academic achievement 
     standards expected of all students.
       ``(b) Studies and Surveys Relating to Standards.--Not later 
     than 1 year after the date of the enactment of the No Child 
     Left Behind Act of 2001, the Secretary, in consultation with 
     the Secretary of Education, consortia of education 
     organizations, and Indian organizations and tribes, and 
     making the fullest use possible of other existing studies, 
     surveys, and plans, shall carry out by contract with an 
     Indian organization, studies and surveys to establish and 
     revise standards for the basic education of Indian children 
     attending Bureau funded schools. Such studies and surveys 
     shall take into account factors such as academic needs, local 
     cultural differences, type and level of language skills, 
     geographic isolation, and appropriate teacher-student ratios 
     for such children, and shall be directed toward the 
     attainment of

[[Page 8927]]

     equal educational opportunity for such children.
       ``(c) Revision of Minimum Academic Standards.--
       ``(1) In general.--Not later than 2 years after the date of 
     the enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall--
       ``(A) propose revisions to the minimum academic standards 
     published in the Federal Register on September 9, 1995 (50 
     Fed. Reg. 174) for the basic education of Indian children 
     attending Bureau funded schools in accordance with the 
     purpose described in subsection (a) and the findings of the 
     studies and surveys conducted under subsection (b);
       ``(B) publish such proposed revisions to such standards in 
     the Federal Register for the purpose of receiving comments 
     from the tribes, tribal school boards, Bureau funded schools, 
     and other interested parties; and
       ``(C) consistent with the provisions of this section and 
     section 1131, take such actions as are necessary to 
     coordinate standards implemented under this section with the 
     Comprehensive School Reform Plan developed by the Bureau 
     and--
       ``(i) with the standards of the improvement plans for the 
     States in which any school operated by the Bureau of Indian 
     Affairs is located; or
       ``(ii) in the case where schools operated by the Bureau are 
     within the boundaries of reservation land of one tribe but 
     within the boundaries of more than one State, with the 
     standards of the State improvement plan of one such State 
     selected by the tribe.
       ``(2) Further revisions.--Not later that 6 months after the 
     close of the comment period, the Secretary shall establish 
     final standards, distribute such standards to all tribes and 
     publish such final standards in the Federal Register. The 
     Secretary shall revise such standards periodically as 
     necessary. Prior to any revision of such final standards, the 
     Secretary shall distribute such proposed revision to all the 
     tribes, and publish such proposed revision in the Federal 
     Register, for the purpose of receiving comments from the 
     tribes and other interested parties.
       ``(3) Applicability of standards.--Except as provided in 
     subsection (e), the final standards published under paragraph 
     (2) shall apply to all Bureau funded schools not accredited 
     under subsection (f), and may also serve as a model for 
     educational programs for Indian children in public schools.
       ``(4) Considerations when establishing and revising 
     standards.--In establishing and revising such standards, the 
     Secretary shall take into account the unique needs of Indian 
     students and support and reinforcement of the specific 
     cultural heritage of each tribe.
       ``(d) Alternative or Modified Standards.--The Secretary 
     shall provide alternative or modified standards in lieu of 
     the standards established under subsection (c), where 
     necessary, so that the programs of each school are in 
     compliance with the minimum accreditation standards required 
     for schools in the State or region where the school is 
     located.
       ``(e) Waiver of Standards; Alternative Standards.--A tribal 
     governing body, or the local school board so designated by 
     the tribal governing body, shall have the local authority to 
     waive, in part or in whole, the standards established under 
     subsections (c) and (d) if such standards are deemed by such 
     body to be inappropriate. The tribal governing body or 
     designated school board shall, not later than 60 days after a 
     waiver under this subsection, submit to the Secretary 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 Secretary unless 
     specifically rejected by the Secretary for good cause and in 
     writing to the affected tribes or local school board, which 
     rejection shall be final and not subject to review.
       ``(f) Accreditation and Implementation of Standards.--
       ``(1) Deadline for meeting standards.--Not later the second 
     academic year after publication of the standards, to the 
     extent necessary funding is provided, all Bureau funded 
     schools shall meet the standards established under 
     subsections (c) and (d) or shall be accredited--
       ``(A) by a tribal accrediting body, if the accreditation 
     standards of the tribal accrediting body have been accepted 
     by formal action of the tribal governing body and are equal 
     to or exceed the accreditation standards of the State or 
     region in which the school is located;
       ``(B) by a regional accreditation agency; or
       ``(C) by State accreditation standards for the State in 
     which it is located.
       ``(2) Determination of standards to be applied.--The 
     accreditation type or standards 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 and standards 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 assist school boards of contract 
     or grant schools in implementation of the standards 
     established under subsections (c) and (d), if the school 
     boards request that such standards, in part or in whole, be 
     implemented.
       ``(4) Fiscal control and fund accounting standards.--The 
     Bureau shall, either directly or through contract with an 
     Indian organization, establish a consistent system of 
     reporting standards for fiscal control and fund accounting 
     for all contract and grant schools. Such standards shall 
     provide data comparable to those used by Bureau operated 
     schools.
       ``(g) Annual Plan for Meeting of Standards.--Except as 
     provided in subsections (e) and (f), the Secretary shall 
     begin to implement the standards established under this 
     section immediately upon the date of their establishment. 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 bring all Bureau schools and contract or 
     grant schools up to the level required by the applicable 
     standards established under this section. Such plan shall 
     include detailed information on the status of each school's 
     educational program in relation to the applicable standards 
     established under this section, 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.
       ``(h) Closure or Consolidation of Schools.--
       ``(1) In general.--Except as specifically required by 
     statute, no school or peripheral dormitory operated by the 
     Bureau on or after January 1, 1992, may be closed or 
     consolidated or have its program substantially curtailed 
     unless done according to the requirements of this subsection.
       ``(2) Exceptions.--This subsection shall not apply--
       ``(A) in those cases where the tribal governing body, or 
     the local school board concerned (if so designated by the 
     tribal governing body), requests closure or consolidation; or
       ``(B) when a temporary closure, consolidation, or 
     substantial curtailment is required by plant conditions which 
     constitute an immediate hazard to health and safety.
       ``(3) Regulations.--The Secretary shall, by regulation, 
     promulgate standards and procedures for the closure, transfer 
     to another authority, consolidation, or substantial 
     curtailment of Bureau schools, in accordance with the 
     requirements of this subsection.
       ``(4) Notice.--Whenever closure, transfer to another 
     authority, consolidation, or substantial curtailment of a 
     school is under active consideration or review by any 
     division of the Bureau or the Department of the Interior, the 
     affected tribe, tribal governing body, and designated local 
     school board, will be notified immediately, kept fully and 
     currently informed, and afforded an opportunity to comment 
     with respect to such consideration or review. When a formal 
     decision is made to close, transfer to another authority, 
     consolidate, or substantially curtail a school, the affected 
     tribe, tribal governing body, and designated school board 
     shall be notified at least 6 months prior to the end of the 
     school year preceding the proposed closure date. Copies of 
     any such notices and information shall be transmitted 
     promptly to the appropriate committees of Congress and 
     published in the Federal Register.
       ``(5) Report.--The Secretary shall make a report to the 
     appropriate committees of Congress, the affected tribe, and 
     the designated school board describing the process of the 
     active consideration or review referred to in paragraph (4). 
     The report shall include a study of the impact of such action 
     on the student population, identify those students with 
     particular educational and social needs, and ensure that 
     alternative services are available to such students. Such 
     report shall include the description of the consultation 
     conducted between the potential service provider, current 
     service provider, parents, tribal representatives and the 
     tribe or tribes involved, and the Director of the Office of 
     Indian Education Programs within the Bureau regarding such 
     students.
       ``(6) Limitation on certain actions.--No irrevocable action 
     may be taken in furtherance of any such proposed school 
     closure, transfer to another authority, consolidation, or 
     substantial curtailment (including any action which would 
     prejudice the personnel or programs of such school) prior to 
     the end of the first full academic year after such report is 
     made.
       ``(7) Tribal governing body approval required for certain 
     actions.--The Secretary may terminate, contract, transfer to 
     any other authority, consolidate, or substantially curtail 
     the operation or facilities of--
       ``(A) any Bureau funded school that is operated on or after 
     of January 1, 1999;
       ``(B) any program of such a school that is operated on or 
     after January 1, 1999; or
       ``(C) any school board of a school operated under a grant 
     under the Tribally Controlled Schools Act of 1988,

     only if the tribal governing body approves such action.
       ``(i) Application for Contracts or Grants for Non-Bureau 
     Funded Schools or Expansion of Bureau Funded Schools.--
       ``(1) In general.--(A)(i) 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 of any 
     Bureau funded school for--
       ``(aa) a school which is not a Bureau funded school; or
       ``(bb) the expansion of a Bureau funded school which would 
     increase the amount of funds received by the Indian tribe or 
     school board under section 1127.
       ``(ii) 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

[[Page 8928]]

     denied based primarily upon the geographic proximity of 
     comparable public education.
       ``(B) With respect to applications described in 
     subparagraph (A) the Secretary shall consider the following 
     factors relating to the program and services that are the 
     subject of the application:
       ``(i) The adequacy of the facilities or the potential to 
     obtain or provide adequate facilities.
       ``(ii) Geographic and demographic factors in the affected 
     areas.
       ``(iii) The adequacy of the applicant's program plans or, 
     in the case of a Bureau funded school, of projected needs 
     analysis done either by the tribe or the Bureau.
       ``(iv) Geographic proximity of comparable public education.
       ``(v) The stated needs of all affected parties, including 
     students, families, tribal governments at both the central 
     and local levels, and school organizations.
       ``(vi) Adequacy and comparability of programs already 
     available.
       ``(vii) Consistency of available programs with tribal 
     educational codes or tribal legislation on education.
       ``(viii) The history and success of these services for the 
     proposed population to be served, as determined from all 
     factors, including but not limited to standardized 
     examination performance.
       ``(2) Determination on application.--(A) The Secretary 
     shall make a determination of whether to approve any 
     application described in paragraph (1)(A) not later than 180 
     days after such application is submitted to the Secretary.
       ``(B) 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 a having 
     been approved by the Secretary.
       ``(3) Requirements for applications.--(A) Notwithstanding 
     paragraph (2)(B), an application described in paragraph 
     (1)(A) may be approved by the Secretary only if--
       ``(i) the application has been approved by the tribal 
     governing body of the students served by (or to be served by) 
     the school or program that is the subject of the application; 
     and
       ``(ii) written evidence of such approval is submitted with 
     the application.
       ``(B) Each application described in paragraph (1)(A) shall 
     provide information concerning each of the factors described 
     in paragraph (1)(B).
       ``(4) Denial of applications.--Whenever the Secretary makes 
     a determination to deny approval of any application described 
     in paragraph (1)(A), the Secretary shall--
       ``(A) state the objections in writing to the applicant not 
     later 180 days after the application is submitted to the 
     Secretary;
       ``(B) provide assistance to the applicant to overcome 
     stated objections; and
       ``(C) provide the applicant a hearing, under the same rules 
     and regulations pertaining to the Indian Self-Determination 
     and Education Assistance Act and an opportunity to appeal the 
     objections raised by the Secretary.
       ``(5) Effective date of a subject application.--(A) Except 
     as otherwise provided in this paragraph, the action which is 
     the subject of any application described in paragraph (1)(A) 
     that is approved by the Secretary shall become effective at 
     the beginning of the academic year following the fiscal year 
     in which the application is approved, or at an earlier date 
     determined by the Secretary.
       ``(B) 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 on the 
     date that is 18 months after the date on which the 
     application is submitted to the Secretary, or at an earlier 
     date determined by the Secretary.
       ``(6) Statutory construction.--Nothing in this section 
     shall be read so as to preclude the expansion of grades and 
     related facilities at a Bureau funded school where such 
     expansion and the maintenance of such expansion is occasioned 
     or paid for with non-Bureau funds.
       ``(j) 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 for all Indian students.
       ``(k) Study on Adequacy of Funds and Formulas.--The 
     Comptroller General shall conduct a study, in consultation 
     with Indian 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, as well as expenditures for 
     comparable purposes in public schools nationally. Upon 
     completion of the study, the Secretary of the Interior shall 
     take such action as necessary to ensure distribution of the 
     findings of the study to all affected Indian tribes, local 
     school boards, and associations of local school boards.

     ``SEC. 1122. NATIONAL CRITERIA FOR HOME-LIVING SITUATIONS.

       ``(a) In General.--The Secretary, in consultation with the 
     Secretary of Education, Indian organizations and tribes, and 
     Bureau funded schools, shall revise the national standards 
     for home-living (dormitory) situations to include such 
     factors as heating, lighting, cooling, adult-child ratios, 
     needs for counselors (including special needs related to off-
     reservation home-living (dormitory) situations), therapeutic 
     programs, space, and privacy. Such standards shall be 
     implemented in Bureau operated schools, and shall serve as 
     minimum standards for contract or grant schools. Once 
     established, any revisions of such standards shall be 
     developed according to the requirements established under 
     section 1138A.
       ``(b) Implementation.--The Secretary shall implement the 
     revised standards established under this section immediately 
     upon their completion.
       ``(c) Plan.--At the time of each annual budget submission 
     for Bureau educational services is presented, the Secretary 
     shall submit to the appropriate committees of Congress, the 
     tribes, and the affected schools, and publish in the Federal 
     Register, a detailed plan to bring all Bureau funded schools 
     that provide home-living (dormitory) situations up to the 
     standards established under this section. Such plan shall 
     include a statement of the relative needs of each Bureau 
     funded home-living (dormitory) school, projected future needs 
     of each Bureau funded home-living (dormitory) school, 
     detailed information on the status of each school in relation 
     to the standards established under this section, specific 
     cost estimates for meeting each standard for each such 
     school, aggregate cost estimates for bringing all such 
     schools into compliance with the criteria established under 
     this section, and specific timelines for bringing each school 
     into compliance with such standards.
       ``(d) Waiver.--The criteria established under this section 
     may be waived in the same manner as the standards provided 
     under section 1121(c) may be waived.
       ``(e) Closure for Failure To Meet Standards Prohibited.--No 
     school in operation on or before January 1, 1987 (regardless 
     of compliance or noncompliance with the criteria established 
     under this section), may be closed, transferred to another 
     authority, consolidated, or have its program substantially 
     curtailed for failure to meet the criteria.

     ``SEC. 1123. CODIFICATION OF REGULATIONS.

       ``(a) Part 32 of Title 25 of Code of Federal Regulations.--
     The provisions of part 32 of title 25 of the Code of Federal 
     Regulations, as in effect on January 1, 1987, are 
     incorporated into this Act and shall be treated as though 
     such provisions are set forth in this subsection. Such 
     provisions may be altered only by means of an Act of 
     Congress. To the extent that such provisions of part 32 do 
     not conform with this Act or any statutory provision of law 
     enacted before November 1, 1978, the provisions of this Act 
     and the provisions of such other statutory law shall govern.
       ``(b) Regulation Defined.--For purposes of this part, the 
     term `regulation' means any rules, regulations, guidelines, 
     interpretations, orders, or requirements of general 
     applicability prescribed by any officer or employee of the 
     executive branch.

     ``SEC. 1124. SCHOOL BOUNDARIES.

       ``(a) Establishment by Secretary.--The Secretary shall 
     establish, by regulation, separate geographical attendance 
     areas for each Bureau funded school.
       ``(b) Establishment by Tribal Body.--In any case where 
     there is more than one Bureau funded school located on an 
     Indian reservation, at the direction of the tribal governing 
     body, the relevant school boards of the Bureau funded schools 
     on the reservation may, by mutual consent, establish the 
     relevant attendance areas for such schools, subject to the 
     approval of the tribal governing body. Any such boundaries so 
     established shall be accepted by the Secretary.
       ``(c) Boundary Revisions.--
       ``(1) In general.--On or after July 1, 2001, no 
     geographical attendance area shall be revised or established 
     with respect to any Bureau funded school unless the tribal 
     governing body or the local school board concerned (if so 
     designated by the tribal governing body) has been afforded--
       ``(A) at least 6 months notice of the intention of the 
     Bureau to revise or establish such attendance area; and
       ``(B) the opportunity to propose alternative boundaries.

     Any tribe may petition the Secretary for revision of existing 
     attendance area boundaries. The Secretary shall accept such 
     proposed alternative or revised boundaries unless the 
     Secretary finds, after consultation with the affected tribe 
     or tribes, that such revised boundaries do not reflect the 
     needs of the Indian students to be served or do not provide 
     adequate stability to all of the affected programs. The 
     Secretary shall cause such revisions to be published in the 
     Federal Register.
       ``(2) 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 the choice of the Bureau funded 
     school their children may attend, regardless of the 
     attendance 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 geographical attendance 
     area established for that school under this section. No 
     funding shall be made available without tribal authorization 
     to enable a school to provide transportation for any student 
     to or from the school and a location outside the approved 
     attendance area of the school.
       ``(e) Reservation as Boundary.--In any case where there is 
     only one Bureau funded program located on an Indian 
     reservation, the attendance area for the program shall be the 
     boundaries (established by treaty, agreement, legislation, 
     court decisions, or executive decisions and

[[Page 8929]]

     as accepted by the tribe) of the reservation served, and 
     those students residing near the reservation shall also 
     receive services from such program.
       ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
     Notwithstanding any geographical attendance areas, attendance 
     at off-reservation home-living (dormitory) schools shall 
     include students requiring special emphasis programs to be 
     implemented at each off-reservation home-living (dormitory) 
     school. Such attendance shall be coordinated between 
     education line officers, the family, and the referring and 
     receiving programs.

     ``SEC. 1125. FACILITIES CONSTRUCTION.

       ``(a) 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 No Child Left Behind Act of 
     2001.
       ``(b) Compliance Plan.--At the time that the annual budget 
     request for Bureau educational services is presented, the 
     Secretary shall submit to the appropriate committees of 
     Congress a detailed plan to bring all facilities covered 
     under subsection (a) of this section into compliance with the 
     standards referred to in subsection (a). 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.
       ``(c) Construction Priorities.--
       ``(1) System to establish priorities.--On an annual basis 
     the Secretary shall submit to the appropriate committees of 
     Congress and cause to be published in the Federal Register, 
     the system used to establish priorities for replacement and 
     construction projects for Bureau funded schools and home-
     living schools, including boarding schools and dormitories. 
     At the time any budget request for education is presented, 
     the Secretary shall publish in the Federal Register and 
     submit with the budget request the current list of all Bureau 
     funded school construction priorities.
       ``(2) Long-term construction and replacement list.--In 
     addition to the plan submitted under subsection (b), the 
     Secretary shall--
       ``(A) not later than 18 months after the date of the 
     enactment of the No Child Left Behind Act of 2001, establish 
     a long-term construction and replacement list for all Bureau 
     funded schools;
       ``(B) using the list prepared under subparagraph (A), 
     propose a list for the orderly replacement of all Bureau 
     funded education-related facilities over a period of 40 years 
     to enable planning and scheduling of budget requests;
       ``(C) cause the list prepared under subsection (B) to be 
     published in the Federal Register and allow a period of not 
     less than 120 days for public comment;
       ``(D) make such revisions to the list prepared under 
     subparagraph (B) as are appropriate based on the comments 
     received; and
       ``(E) cause the final list to be published in the Federal 
     Register.
       ``(3) Effect on other list.--Nothing in this section shall 
     be construed as interfering with or changing in any way the 
     construction priority list as it exists on the date of the 
     enactment of the No Child Left Behind Act of 2001.
       ``(d) Hazardous Condition at Bureau School.--
       ``(1) Closure or consolidation.--A Bureau funded school may 
     be closed or consolidated, and the programs of a Bureau 
     funded school may be substantially curtailed by reason of 
     plant conditions that constitute an immediate hazard to 
     health and safety only if a health and safety officer of the 
     Bureau determines that such conditions exist at the Bureau 
     funded school.
       ``(2) Inspection.--(A) After making a determination 
     described in paragraph (1), the Bureau health and safety 
     officer shall conduct an inspection of the condition of such 
     plant accompanied by an appropriate tribal, county, 
     municipal, or State health and safety officer in order to 
     determine whether conditions at such plant constitute an 
     immediate hazard to health and safety. Such inspection shall 
     be completed by not later than the date that is 30 days after 
     the date on which the action described in paragraph (1) is 
     taken. No further negative action may be taken unless the 
     findings are concurred in by the second, non-Bureau of Indian 
     Affairs inspector.
       ``(B) If the health and safety officer conducting the 
     inspection of a plant required under subparagraph (A) 
     determines that conditions at the plant do not constitute an 
     immediate hazard to health and safety, any consolidation or 
     curtailment that was made under paragraph (1) shall 
     immediately cease and any school closed by reason of 
     conditions at the plant shall be reopened immediately.
       ``(C) If a Bureau funded school is temporarily closed or 
     consolidated or the programs of a Bureau funded school are 
     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 Congress, by not later than 6 months after the date on 
     which the closure, consolidation, or curtailment was 
     initiated, a report which sets forth the reasons for such 
     temporary actions, the actions the Secretary is taking to 
     eliminate the conditions that constitute the hazard, and an 
     estimated date by which such actions will be concluded.
       ``(e) Funding Requirement.--
       ``(1) Distribution of funds.--Beginning with the fiscal 
     year following the year of the date of the enactment of the 
     No Child Left Behind Act of 2001, all funds appropriated for 
     the operations and maintenance of Bureau funded schools shall 
     be distributed by formula to the schools. No funds from this 
     account may be retained or segregated by the Bureau to pay 
     for administrative or other costs of any facilities branch or 
     office, at any level of the Bureau.
       ``(2) Requirements for certain uses.--No funds shall be 
     withheld from the distribution to the budget of any school 
     operated under contract or grant by the Bureau for 
     maintenance or any other facilities or road related purpose, 
     unless such school has consented, as a modification to the 
     contract or in writing for grants schools, to the withholding 
     of such funds, including the amount thereof, the purpose for 
     which the funds will be used, and the timeline for the 
     services to be provided. The school may, at the end of any 
     fiscal year, cancel an agreement under this paragraph upon 
     giving the Bureau 30 days notice of its intent to do so.
       ``(f) No Reduction in Federal Funding.--Nothing in this 
     section shall be construed to diminish any Federal funding 
     due to the receipt by the school of funding for facilities 
     improvement or construction from a State or any other source.

     ``SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

       ``(a) Formulation and Establishment of Policy and 
     Procedure; Supervision of Programs and Expenditures.--The 
     Secretary shall vest in the Assistant Secretary for Indian 
     Affairs all functions with respect to formulation and 
     establishment of policy and procedure and supervision of 
     programs and expenditures of Federal funds for the purpose of 
     Indian education administered by the Bureau. The Assistant 
     Secretary shall carry out such functions through the Director 
     of the Office of Indian Education Programs.
       ``(b) Direction and Supervision of Personnel Operations.--
     Not later than 6 months after the date of the enactment of 
     the No Child Left Behind Act of 2001, the Director of the 
     Office of Indian Education Programs shall direct and 
     supervise the operations of all personnel directly and 
     substantially involved in the provision of education services 
     by the Bureau, including school or institution custodial or 
     maintenance personnel, facilities management, contracting, 
     procurement, and finance personnel. The Assistant Secretary 
     for Indian Affairs shall coordinate the transfer of functions 
     relating to procurement, contracts, operation, and 
     maintenance of schools and other support functions to the 
     Director.
       ``(c) Evaluation of Programs; Services and Support 
     Functions; Technical and Coordinating Assistance.--Education 
     personnel who are under the direction and supervision of the 
     Director of the Office of Indian Education Programs in 
     accordance with the first sentence of subsection (b) shall--
       ``(1) monitor and evaluate Bureau education programs;
       ``(2) provide all services and support functions for 
     education programs with respect to personnel matters 
     involving staffing actions and functions; and
       ``(3) provide technical and coordinating assistance in 
     areas such as procurement, contracting, budgeting, personnel, 
     curriculum, and operation and maintenance of school 
     facilities.
       ``(d) Construction, Improvement, Operation, and Maintenance 
     of Facilities.--
       ``(1) Plan for construction.--The Assistant Secretary shall 
     submit in the annual budget a plan--
       ``(A) for school facilities to be constructed under section 
     1125(c);
       ``(B) for establishing priorities among projects and for 
     the improvement and repair of educational facilities, which 
     together shall form the basis for the distribution of 
     appropriated funds; and
       ``(C) for capital improvements to be made over the five 
     succeeding years.
       ``(2) Program for operation and maintenance.--
       ``(A) Establishment.--The Assistant Secretary shall 
     establish a program, including the distribution of 
     appropriated funds, for the operation and maintenance of 
     education facilities. Such program shall include--
       ``(i) a method of computing the amount necessary for each 
     educational facility;
       ``(ii) similar treatment of all Bureau funded schools;
       ``(iii) a notice of an allocation of appropriated funds 
     from the Director of the Office of Indian Education Programs 
     directly to the education line officers and appropriate 
     school officials;
       ``(iv) a method for determining the need for, and priority 
     of, facilities repair and maintenance projects, both major 
     and minor. In making such determination, the Assistant 
     Secretary shall cause to be conducted a series of meetings at 
     the agency and area level with representatives of the Bureau 
     funded schools in those areas and agencies to receive comment 
     on the lists and prioritization of such projects; and

[[Page 8930]]

       ``(v) a system for the conduct of routine preventive 
     maintenance.
       ``(B) Local supervisors.--The appropriate education line 
     officers shall make arrangements for the maintenance of 
     education facilities with the local supervisors of the Bureau 
     maintenance personnel. The local supervisors of Bureau 
     maintenance personnel shall take appropriate action to 
     implement the decisions made by the appropriate education 
     line officers, except that no funds under this chapter may be 
     authorized for expenditure unless such appropriate education 
     line officer is assured that the necessary maintenance has 
     been, or will be, provided in a reasonable manner.
       ``(3) Implementation.--The requirements of this subsection 
     shall be implemented as soon as practicable after the date of 
     the enactment of the No Child Left Behind Act of 2001.
       ``(e) Acceptance of Gifts and Bequests.--Notwithstanding 
     any other provision of law, the Director shall promulgate 
     guidelines for the establishment of mechanisms for the 
     acceptance of gifts and bequests for the use and benefit of 
     particular schools or designated Bureau operated education 
     programs, including, where appropriate, the establishment and 
     administration of trust funds. When a Bureau operated program 
     is the beneficiary of such a gift or bequest, the Director 
     shall make provisions for monitoring its use and shall report 
     to the appropriate committees of Congress 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 
     action.
       ``(f) Functions Clarified.--For the purpose of this 
     section, the term `functions' includes powers and duties.

     ``SEC. 1127. ALLOTMENT FORMULA.

       ``(a) Factors Considered; Revision To Reflect Standards.--
       ``(1) Formula.--The Secretary shall establish, by 
     regulation adopted in accordance with section 1138A, a 
     formula for determining the minimum annual amount of funds 
     necessary to sustain each Bureau funded school. In 
     establishing such formula, the Secretary shall consider--
       ``(A) the number of eligible Indian students served and 
     total student population of the school;
       ``(B) special cost factors, such as--
       ``(i) the isolation of the school;
       ``(ii) the need for special staffing, transportation, or 
     educational programs;
       ``(iii) food and housing costs;
       ``(iv) maintenance and repair costs associated with the 
     physical condition of the educational facilities;
       ``(v) special transportation and other costs of isolated 
     and small schools;
       ``(vi) the costs of home-living (dormitory) arrangements, 
     where determined necessary by a tribal governing body or 
     designated school board;
       ``(vii) costs associated with greater lengths of service by 
     education personnel;
       ``(viii) the costs of therapeutic programs for students 
     requiring such programs; and
       ``(ix) special costs for gifted and talented students;
       ``(C) the cost of providing academic services which are at 
     least equivalent to those provided by public schools in the 
     State in which the school is located; and
       ``(D) such other relevant factors as the Secretary 
     determines are appropriate.
       ``(2) Revision of formula.--Upon the establishment of the 
     standards required in sections 1121 and 1122, the Secretary 
     shall revise the formula established under this subsection to 
     reflect the cost of funding such standards. Not later than 
     January 1, 2003, the Secretary shall review the formula 
     established under this section and shall take such steps as 
     are necessary to increase the availability of counseling and 
     therapeutic programs for students in off-reservation home-
     living (dormitory) schools and other Bureau operated 
     residential facilities. Concurrent with such action, the 
     Secretary shall review the standards established under 
     section 1122 to be certain that adequate provision is made 
     for parental notification regarding, and consent for, such 
     counseling and therapeutic programs.
       ``(b) Pro Rata Allotment.--Notwithstanding any other 
     provision of law, Federal funds appropriated for the general 
     local operation of Bureau funded schools shall be allotted 
     pro rata in accordance with the formula established under 
     subsection (a).
       ``(c) Annual Adjustment; Reservation of Amount for School 
     Board Activities.--
       ``(1) Annual adjustment.--For fiscal year 2003, and for 
     each subsequent fiscal year, the Secretary shall adjust the 
     formula established under subsection (a) to ensure that the 
     formula does the following:
       ``(A) Uses a weighted unit of 1.2 for each eligible Indian 
     student enrolled in the seventh and eighth grades of the 
     school in considering the number of eligible Indian students 
     served by the school.
       ``(B) Considers a school with an enrollment of less than 50 
     eligible Indian students as having an average daily 
     attendance of 50 eligible Indian students for purposes of 
     implementing the adjustment factor for small schools.
       ``(C) Takes into account the provision of residential 
     services on less than a 9-month basis at a school when the 
     school board and supervisor of the school determine that a 
     less than 9-month basis will be implemented for the school 
     year involved.
       ``(D) Uses a weighted unit of 2.0 for each eligible Indian 
     student that--
       ``(i) is gifted and talented; and
       ``(ii) is enrolled in the school on a full-time basis,

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

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

     for school board activities for such school, including 
     (notwithstanding any other provision of law) meeting expenses 
     and the cost of membership in, and support of, organizations 
     engaged in activities on behalf of Indian education.
       ``(B) Training.--Each school board shall see that each new 
     member of the school board receives, within 12 months of the 
     individual's assuming a position on the school board, 40 
     hours of training relevant to that individual's service on 
     the board. Such training may include legal issues pertaining 
     to schools funded by the Bureau, legal issues pertaining to 
     school boards, ethics, and other topics deemed appropriate by 
     the school board.
       ``(d) Reservation of Amount for Emergencies.--The Secretary 
     shall reserve from the funds available for distribution for 
     each fiscal year under this section an amount which, in the 
     aggregate, shall equal 1 percent of the funds available for 
     such purpose for that fiscal year. Such funds shall be used, 
     at the discretion of the Director of the Office of Indian 
     Education Programs, to meet emergencies and unforeseen 
     contingencies affecting the education programs funded under 
     this section. Funds reserved under this subsection may only 
     be expended for education services or programs, including 
     emergency repairs of educational facilities, at a schoolsite 
     (as defined by section 5204(c)(2) of the Tribally Controlled 
     Schools Act of 1988). Funds reserved under this subsection 
     shall remain available without fiscal year limitation until 
     expended. However, the aggregate amount available from all 
     fiscal years may not exceed 1 percent of the current year 
     funds. Whenever, the Secretary makes funds available under 
     this subsection, the Secretary shall report such action to 
     the appropriate committees of Congress within the annual 
     budget submission.
       ``(e) Supplemental Appropriations.--Supplemental 
     appropriations enacted to meet increased pay costs 
     attributable to school level personnel shall be distributed 
     under this section.
       ``(f) Eligible Indian Student Defined.--For the purpose of 
     this section, the term `eligible Indian student' means a 
     student who--
       ``(1) is a member of or is at least one-fourth degree 
     Indian blood descendant of a member of an Indian tribe which 
     is eligible for the special programs and services provided by 
     the United States through the Bureau because of their status 
     as Indians; and
       ``(2) resides on or near an Indian reservation or meets the 
     criteria for attendance at a Bureau off-reservation home-
     living (dormitory) school.
       ``(g) Tuition.--
       ``(1) In general.--An eligible Indian student may not be 
     charged tuition for attendance at a Bureau school or contract 
     or grant school. A student attending a Bureau school under 
     paragraph (2)(C) may not be charged tuition for attendance at 
     such a school.
       ``(2) Attendance of non-indian students at bureau 
     schools.--The Secretary may permit the attendance at a Bureau 
     school of a student who is not an eligible Indian student 
     if--
       ``(A) the Secretary determines that the student's 
     attendance will not adversely affect the school's program for 
     eligible Indian students because of cost, overcrowding, or 
     violation of standards or accreditation;
       ``(B) the school board consents;
       ``(C) the student is a dependent of a Bureau, Indian Health 
     Service, or tribal government employee who lives on or near 
     the schoolsite; or
       ``(D) a tuition is paid for the student that is not more 
     than that charged by the nearest public school district for 
     out-of-district students, and shall be in addition to the 
     school's allocation under this section.
       ``(3) Attendance of non-indian students at contract and 
     grant schools.--The school board of a contract or grant 
     school may permit students who are not eligible Indian 
     students under this subsection to attend its contract school 
     or grant school and any tuition collected for those students 
     shall be in addition to funding received under this section.
       ``(h) Funds Available Without Fiscal Year Limitation.--
     Notwithstanding any other provision of law, at the election 
     of the school board

[[Page 8931]]

     of a Bureau school made at any time during the fiscal year, a 
     portion equal to not more than 15 percent of the funds 
     allocated with respect to a school under this section for any 
     fiscal year shall remain available to the school for 
     expenditure without fiscal year limitation. The Assistant 
     Secretary shall take steps as may be necessary to implement 
     this provision.
       ``(i) Students at Richfield Dormitory, Richfield, Utah.--
     Tuition for out-of-State Indian students in home-living 
     (dormitory) arrangements at the Richfield dormitory in 
     Richfield, Utah, who attend Sevier County high schools in 
     Richfield, Utah, shall be paid from the Indian school 
     equalization program funds authorized in this section and 
     section 1130 at a rate not to exceed the amounts per weighted 
     student unit for that year for the instruction of such 
     students. No additional administrative cost funds shall be 
     added to the grant.

     ``SEC. 1128. ADMINISTRATIVE COST GRANTS.

       ``(a) Grants; Effect Upon Appropriated Amounts.--
       ``(1) Grants.--Subject to the availability of appropriated 
     funds, the Secretary shall provide grants to each tribe or 
     tribal organization operating a contract school or grant 
     school in the amount determined under this section with 
     respect to the tribe or tribal organization for the purpose 
     of paying the administrative and indirect costs incurred in 
     operating contract or grant schools, provided that no school 
     operated as a stand-alone institution shall receive less than 
     $200,000 per year for these purposes, in order to--
       ``(A) enable tribes and tribal organizations operating such 
     schools, without reducing direct program services to the 
     beneficiaries of the program, to provide all related 
     administrative overhead services and operations necessary to 
     meet the requirements of law and prudent management practice; 
     and
       ``(B) carry out other necessary support functions which 
     would otherwise be provided by the Secretary or other Federal 
     officers or employees, from resources other than direct 
     program funds, in support of comparable Bureau operated 
     programs.
       ``(2) Effect upon appropriated amounts.--Amounts 
     appropriated to fund the grants provided under this section 
     shall be in addition to, and shall not reduce, the amounts 
     appropriated for the program being administered by the 
     contract or grant school.
       ``(b) Determination of Grant Amount.--
       ``(1) In general.--The amount of the grant provided to each 
     tribe or tribal organization under this section for each 
     fiscal year shall be determined by applying the 
     administrative cost percentage rate of the tribe or tribal 
     organization to the aggregate of the Bureau elementary and 
     secondary functions operated by the tribe or tribal 
     organization for which funds are received from or through the 
     Bureau. The administrative cost percentage rate determined 
     under subsection (c) does not apply to other programs 
     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 an Indian tribe or tribal 
     organization under any Federal education program included in 
     the direct cost base of the tribe or tribal organization; and
       ``(B) take such actions as may be necessary to be 
     reimbursed by any other department or agency of the Federal 
     Government for the portion of grants made under this section 
     for the costs of administering any program for Indians that 
     is funded by appropriations made to such other department or 
     agency.
       ``(c) Administrative Cost Percentage Rate.--
       ``(1) In general.--For purposes of this section, the 
     administrative cost percentage rate for a contract or grant 
     school for a fiscal year is equal to the percentage 
     determined by dividing--
       ``(A) the sum of--
       ``(i) the amount equal to--

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

       ``(ii) the amount equal to--

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

       ``(B) the sum of--
       ``(i) the direct cost base of the tribe or tribal 
     organization for the fiscal year; plus
       ``(ii) the standard direct cost base.
       ``(2) Rounding.--The administrative cost percentage rate 
     shall be determined to the \1/100\ of a decimal point.
       ``(d) Combining Funds.--
       ``(1) In general.--Funds received by a tribe or contract or 
     grant school as grants under this section for tribal 
     elementary or secondary educational programs may be combined 
     by the tribe or contract or grant school into a single 
     administrative cost account without the necessity of 
     maintaining separate funding source accounting.
       ``(2) Indirect cost funds.--Indirect cost funds for 
     programs at the school which share common administrative 
     services with tribal elementary or secondary educational 
     programs may be included in the administrative cost account 
     described in paragraph (1).
       ``(e) Availability of Funds.--Funds received as grants 
     under this section with respect to tribal elementary or 
     secondary education programs shall remain available to the 
     contract or grant school without fiscal year limitation and 
     without diminishing the amount of any grants otherwise 
     payable to the school under this section for any fiscal year 
     beginning after the fiscal year for which the grant is 
     provided.
       ``(f) Treatment of Funds.--Funds received as grants under 
     this section for Bureau funded programs operated by a tribe 
     or tribal organization under a contract or agreement shall 
     not be taken into consideration for purposes of indirect cost 
     underrecovery and overrecovery determinations by any Federal 
     agency for any other funds, from whatever source derived.
       ``(g) Treatment of Entity Operating Other Programs.--In 
     applying this section and section 105 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, provided 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.
       ``(h) Definitions.--For purposes of this section:
       ``(1) Administrative cost.--(A) The term `administrative 
     cost' means the costs 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) 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) 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) 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.
       ``(i) Studies for Determination of Factors Affecting Costs; 
     Base Rates Limits; Standard Direct Cost Base; Report to 
     Congress.--

[[Page 8932]]

       ``(1) Studies.--Not later than 120 days after the date of 
     the enactment of the No Child Left Behind Act of 2001, the 
     Director of the Office of Indian Education Programs shall--
       ``(A) conduct such studies as may be needed to establish an 
     empirical basis for determining relevant factors 
     substantially affecting required administrative costs of 
     tribal elementary and secondary education programs, using the 
     formula set forth in subsection (c); and
       ``(B) conduct a study to determine--
       ``(i) a maximum base rate which ensures that the amount of 
     the grants provided under this section will provide adequate 
     (but not excessive) funding of the administrative costs of 
     the smallest tribal elementary or secondary educational 
     programs;
       ``(ii) a minimum base rate which ensures that the amount of 
     the grants provided under this section will provide adequate 
     (but not excessive) funding of the administrative costs of 
     the largest tribal elementary or secondary educational 
     programs; and
       ``(iii) a standard direct cost base which is the aggregate 
     direct cost funding level for which the percentage determined 
     under subsection (c) will--
       ``(I) be equal to the median between the maximum base rate 
     and the minimum base rate; and
       ``(II) ensure that the amount of the grants provided under 
     this section will provide adequate (but not excessive) 
     funding of the administrative costs of tribal elementary or 
     secondary educational programs closest to the size of the 
     program.
       ``(2) Guidelines.--The studies required under paragraph (1) 
     shall--
       ``(A) be conducted in full consultation (in accordance with 
     section 1131) with--
       ``(i) the tribes and tribal organizations that are affected 
     by the application of the formula set forth in subsection 
     (c); and
       ``(ii) all national and regional Indian organizations of 
     which such tribes and tribal organizations are typically 
     members;
       ``(B) be conducted onsite with a representative statistical 
     sample of the tribal elementary or secondary educational 
     programs under a contract entered into with a nationally 
     reputable public accounting and business consulting firm;
       ``(C) take into account the availability of skilled labor; 
     commodities, business and automatic data processing services, 
     related Indian preference and Indian control of education 
     requirements, and any other market factors found 
     substantially to affect the administrative costs and 
     efficiency of each such tribal elementary or secondary 
     educational program studied in order to assure that all 
     required administrative activities can reasonably be 
     delivered in a cost effective manner for each such program, 
     given an administrative cost allowance generated by the 
     values, percentages, or other factors found in the studies to 
     be relevant in such formula;
       ``(D) identify, and quantify in terms of percentages of 
     direct program costs, any general factors arising from 
     geographic isolation, or numbers of programs administered, 
     independent of program size factors used to compute a base 
     administrative cost percentage in such formula; and
       ``(E) identify any other incremental cost factors 
     substantially affecting the costs of required administrative 
     cost functions at any of the tribal elementary or secondary 
     educational programs studied and determine whether the 
     factors are of general applicability to other such programs, 
     and (if so) how the factors may effectively be incorporated 
     into such formula.
       ``(3) Consultation with inspector general.--In carrying out 
     the studies required under this subsection, the Director 
     shall obtain the input of, and afford an opportunity to 
     participate to, the Inspector General of the Department of 
     the Interior.
       ``(4) Consideration of delivery of administrative 
     services.--Determinations described in paragraph (2)(C) shall 
     be based on what is practicable at each location studied, 
     given prudent management practice, irrespective of whether 
     required administrative services were actually or fully 
     delivered at these sites, or whether other services were 
     delivered instead, during the period of the study.
       ``(5) Report.--Upon completion of the studies conducted 
     under paragraph (1), the Director shall submit to Congress a 
     report on the findings of the studies, together with 
     determinations based upon such studies that would affect the 
     definitions set forth under subsection (e) that are used in 
     the formula set forth in subsection (c).
       ``(6) Projection of costs.--The Secretary shall include in 
     the Bureau's justification for each appropriations request 
     beginning in the first fiscal year after the completion of 
     the studies conducted under paragraph (1), a projection of 
     the overall costs associated with the formula set forth in 
     subsection (c) for all tribal elementary or secondary 
     education programs which the Secretary expects to be funded 
     in the fiscal year for which the appropriations are sought.
       ``(7) Determination of program size.--For purposes of this 
     subsection, the size of tribal elementary or secondary 
     educational programs is determined by the aggregate direct 
     cost program funding level for all Bureau funded programs 
     which share common administrative cost functions.
       ``(j) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as necessary to carry out this section.
       ``(2) Reductions.--If the total amount of funds necessary 
     to provide grants to tribes and tribal organizations in the 
     amounts determined under subsection (b) for a fiscal year 
     exceeds the amount of funds appropriated to carry out this 
     section for such fiscal year, the Secretary shall reduce the 
     amount of each grant determined under subsection (b) for such 
     fiscal year by an amount that bears the same relationship to 
     such excess as the amount of such grants determined under 
     subsection (b) bears to the total of all grants determined 
     under subsection (b) section for all tribes and tribal 
     organizations for such fiscal year.
       ``(k) Applicability to Schools Operating Under Tribally 
     Controlled Schools Act of 1988.--The provisions of this 
     section shall also apply to those schools operating under the 
     Tribally Controlled Schools Act of 1988.

     ``SEC. 1129. DIVISION OF BUDGET ANALYSIS.

       ``(a) Establishment.--Not later than 12 months after the 
     date of the enactment of the No Child Left Behind Act of 
     2001, the Secretary shall establish within the Office of 
     Indian Education Programs a Division of Budget Analysis 
     (hereinafter referred to as the `Division'). Such Division 
     shall be under the direct supervision and control of the 
     Director of the Office.
       ``(b) Functions.--In consultation with the tribal governing 
     bodies and tribal school boards, the Director of the Office, 
     through the Division, shall conduct studies, surveys, or 
     other activities to gather demographic information on Bureau 
     funded schools and project the amount necessary to provide 
     Indian students in such schools the educational program set 
     forth in this part.
       ``(c) Annual Reports.--Not later than the date that the 
     Assistant Secretary for Indian Affairs makes the annual 
     budget submission, for each fiscal year after the date of the 
     enactment of the No Child Left Behind Act of 2001, the 
     Director of the Office shall submit to the appropriate 
     committees of Congress (including the Appropriations 
     committees), all Bureau funded schools, and the tribal 
     governing bodies of such schools, a report which shall 
     contain--
       ``(1) projections, based upon the information gathered 
     pursuant to subparagraph (b) and any other relevant 
     information, of amounts necessary to provide Indian students 
     in Bureau funded schools the educational program set forth in 
     this part;
       ``(2) a description of the methods and formulas used to 
     calculate the amounts projected pursuant to paragraph (1); 
     and
       ``(3) such other information as the Director of the Office 
     considers appropriate.
       ``(d) Use of Reports.--The Director of the Office and the 
     Assistant Secretary for Indian Affairs shall use the annual 
     report required by subsection (c) when preparing their annual 
     budget submissions.

     ``SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

       ``(a) Establishment of System and Forward Funding.--
       ``(1) In general.--The Secretary shall establish, by 
     regulation adopted in accordance with section 1138, a system 
     for the direct funding and support of all Bureau funded 
     schools. Such system shall allot funds in accordance with 
     section 1127. All amounts appropriated for distribution under 
     this section may be made available under paragraph (2).
       ``(2) Timing for use of funds.--(A) For the purposes of 
     affording adequate notice of funding available pursuant to 
     the allotments made under section 1127, amounts appropriated 
     in an appropriations Act for any fiscal year shall become 
     available for obligation by the affected schools on July 1 of 
     the fiscal year in which such amounts are appropriated 
     without further action by the Secretary, and shall remain 
     available for obligation through the succeeding fiscal year.
       ``(B) The Secretary shall, on the basis of the amount 
     appropriated in accordance with this paragraph--
       ``(i) publish, not later than July 1 of the fiscal year for 
     which the funds are appropriated, allotments to each affected 
     school made under section 1127 of 85 percent of such 
     appropriation; and
       ``(ii) publish, not later than September 30 of such fiscal 
     year, the allotments to be made under section 1127 of the 
     remaining 15 percent of such appropriation, adjusted to 
     reflect the actual student attendance.
       ``(3) Limitation.--(A) Notwithstanding any other provision 
     of law or regulation, the supervisor of a Bureau funded 
     school may expend an aggregate of not more than $50,000 of 
     the amount allotted the school under section 1127 to acquire 
     materials, supplies, equipment, services, operation, and 
     maintenance for the school without competitive bidding if--
       ``(i) the cost for any single item purchased does not 
     exceed $15,000;
       ``(ii) the school board approves the procurement;
       ``(iii) the supervisor certifies that the cost is fair and 
     reasonable;
       ``(iv) the documents relating to the procurement executed 
     by the supervisor or other school staff cite this paragraph 
     as authority for the procurement; and
       ``(v) the transaction is documented in a journal maintained 
     at the school clearly identifying when the transaction 
     occurred, what was acquired and from whom, the price paid, 
     the quantities acquired, and any other information the 
     supervisor or school board considers relevant.
       ``(B) Not later than 6 months after the date of the 
     enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall cause to be sent to each supervisor of a 
     Bureau operated program and school board chairperson, the 
     education line officer or officers of each agency and area, 
     and the Bureau Division in charge of procurement, at both the 
     local and national levels, notice of this paragraph.

[[Page 8933]]

       ``(C) The Director shall be responsible for determining the 
     application of this paragraph, including the authorization of 
     specific individuals to carry out this paragraph, and shall 
     be responsible for the provision of guidelines on the use of 
     this paragraph and adequate training on such guidelines.
       ``(4) Effect of sequestration order.--If a sequestration 
     order issued under the Balanced Budget and Emergency Deficit 
     Control Act of 1985 reduces the amount of funds available for 
     allotment under section 1127 for any fiscal year by more than 
     7 percent of the amount of funds available for allotment 
     under such section during the preceding fiscal year--
       ``(A) to fund allotments under section 1127, the Secretary, 
     notwithstanding any other law, may use--
       ``(i) funds appropriated for the operation of any Bureau 
     school that is closed or consolidated; and
       ``(ii) funds appropriated for any program that has been 
     curtailed at any Bureau school; and
       ``(B) the Secretary may waive the application of the 
     provisions of section 1121(h) with respect to the closure or 
     consolidation of a school, or the curtailment of a program at 
     a school, during such fiscal year if the funds described in 
     clauses (i) and (ii) of subparagraph (A) with respect to such 
     school are used to fund allotments made under section 1127 
     for such fiscal year.
       ``(b) Local Financial Plans for Expenditure of Funds.--
       ``(1) Plan required.--In the case of all Bureau operated 
     schools, allotted funds shall be expended on the basis of 
     local financial plans which ensure meeting the accreditation 
     requirements or standards for the school established pursuant 
     to section 1121 and which shall be prepared by the local 
     school supervisor in active consultation with the local 
     school board for each school. The local school board for each 
     school shall have the authority to ratify, reject, or amend 
     such financial plan, and expenditures thereunder, and, on its 
     own determination 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.
       ``(2) The supervisor--
       ``(A) shall put into effect the decisions of the school 
     board;
       ``(B) shall provide the appropriate local union 
     representative of the education employees with copies of 
     proposed draft financial plans and all amendments or 
     modifications thereto, at the same time such copies are 
     submitted to the local school board; and
       ``(C) may appeal any such action of the local school board 
     to the appropriate education line officer of the Bureau 
     agency by filing a written statement describing the action 
     and the reasons the supervisor believes such action should be 
     overturned. 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 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.
       ``(c) Use of Self-Determination Grants Funds.--Funds for 
     self-determination grants under section 103(a)(2) of the 
     Indian Self-Determination and Education Assistance Act shall 
     not be used for providing technical assistance and training 
     in the field of education by the Bureau unless such services 
     are provided in accordance with a plan, agreed to by the 
     tribe or tribes affected and the Bureau, under which control 
     of education programs is intended to be transferred to such 
     tribe or tribes within a specific period of time negotiated 
     under such agreement. The Secretary may approve applications 
     for funding tribal divisions of education and development of 
     tribal codes of education from funds appropriated pursuant to 
     section 104(a) of such Act.
       ``(d) Technical Assistance and Training.--In the exercise 
     of its authority under this section, a local school board may 
     request technical assistance and training from the Secretary, 
     and the Secretary shall, to the greatest extent possible, 
     provide such services, and make appropriate provisions in the 
     budget of the Office for such services.
       ``(e) Summer Program of Academic and Support Services.--
       ``(1) In general.--A financial plan under subsection (b) 
     for a school may include, at the discretion of the local 
     administrator and the school board of such school, a 
     provision for a summer program of academic and support 
     services for students of the school. 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 any such school facility 
     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, and this Act may be used to augment the services 
     provided in each summer program at the option, and under the 
     control, of the tribe or Indian controlled school receiving 
     such funds.
       ``(3) Technical assistance and program coordination.--The 
     Assistant Secretary for Indian Affairs, acting through the 
     Director of the Office, shall provide technical assistance 
     and coordination 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 any such program.
       ``(f) Cooperative Agreements.--
       ``(1) In general.--From funds allotted to a Bureau school 
     under section 1127, the Secretary shall, if specifically 
     requested by the tribal governing body (as defined in section 
     1141), implement any cooperative agreement entered into 
     between the tribe, the Bureau school board, and the local 
     public school district which meets the requirements of 
     paragraph (2) and involves the school. The tribe, the Bureau 
     school board, and the local public school district shall 
     determine the terms of the agreement. Such agreement may 
     encompass coordination of all or any part of the following:
       ``(A) Academic program and curriculum, unless the Bureau 
     school is currently accredited by a State or regional 
     accrediting entity and would not continue to be so 
     accredited.
       ``(B) Support services, including procurement and 
     facilities maintenance.
       ``(C) Transportation.
       ``(2) Equal benefit and burden.--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, though this requirement shall not be 
     construed so as to require equal expenditures or an exchange 
     of similar services.
       ``(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) Not Considered Federal Funds for Matching 
     Requirements.--Notwithstanding any other provision of law, 
     funds received by a Bureau funded school under this part 
     shall not be considered Federal funds for the purposes of 
     meeting a matching funds requirement for any Federal program.

     ``SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

       ``(a) Facilitation of Indian Control.--It shall be the 
     policy of the Secretary and the Bureau, in carrying out the 
     functions of the Bureau, to facilitate tribal 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.
       ``(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 Bureau. 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. 1132. INDIAN EDUCATION PERSONNEL.

       ``(a) In General.--Chapter 51, subchapter III of chapter 
     53, and chapter 63 of title 5, United States Code, relating 
     to classification, pay and leave, respectively, and the 
     sections of such title relating to the appointment, 
     promotion, hours of work, and removal of civil service 
     employees, shall not apply to educators or to education 
     positions (as defined in subsection (p)).
       ``(b) Regulations.--Not later than 60 days after the date 
     of the enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall prescribe regulations to carry out this 
     section. Such regulations shall include--
       ``(1) the establishment of education positions;
       ``(2) the establishment of qualifications for educators and 
     education personnel;
       ``(3) the fixing of basic compensation for educators and 
     education positions;
       ``(4) the appointment of educators;
       ``(5) the discharge of educators;
       ``(6) the entitlement of educators to compensation;
       ``(7) the payment of compensation to educators;
       ``(8) the conditions of employment of educators;
       ``(9) the leave system for educators;
       ``(10) the annual leave and sick leave for educators; and
       ``(11) such matters as may be appropriate.
       ``(c) Qualifications of Educators.--
       ``(1) Requirements.--In prescribing regulations to govern 
     the qualifications of educators, the Secretary shall 
     require--
       ``(A)(i) that lists of qualified and interviewed applicants 
     for education positions be maintained in each agency and area 
     office of the Bureau from among individuals who have applied 
     at the agency or area level for an education position or who 
     have applied at the national level and have indicated in such 
     application an interest in working in certain areas or 
     agencies; and

[[Page 8934]]

       ``(ii) that a list of qualified and interviewed applicants 
     for education positions be maintained in the Office from 
     among individuals who have applied at the national level for 
     an education position and who have expressed interest in 
     working in an education position anywhere in the United 
     States;
       ``(B) that a local school board shall have the authority to 
     waive on a case-by-case basis, any formal education or degree 
     qualifications established by regulation pursuant to 
     subsection (b)(2), in order for a tribal member to be hired 
     in an education position to teach courses on tribal culture 
     and language and that subject to subsection (e)(2), a 
     determination by a school board that such a person be hired 
     shall be instituted supervisor; and
       ``(C) that it shall not be a prerequisite to the employment 
     of an individual in an education position at the local level 
     that such individual's name appear on the national list 
     maintained pursuant to subparagraph (A)(ii) or that such 
     individual has applied at the national level for an education 
     position.
       ``(2) Exception for certain temporary employment.--The 
     Secretary may authorize the temporary employment in an 
     education position of an individual who has not met the 
     certification standards established pursuant to regulations, 
     if the Secretary determines that failure to do so would 
     result in that position remaining vacant.
       ``(d) Hiring of Educators.--
       ``(1) Requirements.--In prescribing regulations to govern 
     the appointment of educators, the Secretary shall require--
       ``(A)(i) that educators employed in a Bureau operated 
     school (other than the supervisor of the school) shall be 
     hired by the supervisor of the school. In cases where there 
     are no qualified applicants available, such supervisor may 
     consult the national list maintained pursuant to subsection 
     (c)(1)(A)(ii);
       ``(ii) each school supervisor shall be hired by the 
     education line officer of the agency office of the Bureau in 
     which the school is located;
       ``(iii) educators 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 educators employed 
     in the Office of the Director of Indian Education Programs 
     shall be hired by the Director;
       ``(B) that before an individual is employed in an education 
     position in a school by the supervisor of a 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. A determination by such school 
     board 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 agency 
     superintendent for education);
       ``(C) that before an individual may be employed in an 
     education position at the agency level, the appropriate 
     agency school board shall be consulted, and that a 
     determination by such school board that such individual 
     should or should not be employed shall be instituted by the 
     agency superintendent for education; and
       ``(D) that before an individual may be employed in an 
     education position in the Office of the Director (other than 
     the position of Director), the national school boards 
     representing all Bureau schools shall be consulted.
       ``(2) Information regarding application at national 
     level.--Any individual who applies at the local level for an 
     education position shall state on such individual's 
     application whether or not such individual has applied at the 
     national level for an education position in the Bureau. If 
     such individual is employed at the local level, such 
     individual's name shall be immediately forwarded to the 
     Secretary, who shall, as soon as practicable but in no event 
     in more than 30 days, ascertain the accuracy of the statement 
     made by such individual pursuant to the first sentence of 
     this paragraph. Notwithstanding subsection (e), if the 
     individual's statement is found to have been false, such 
     individual, at the Secretary's discretion, may be disciplined 
     or discharged. If the individual has applied at the national 
     level for an education position in the Bureau, the 
     appointment of such individual at the local level shall be 
     conditional for a period of 90 days, during which period the 
     Secretary may appoint a more qualified individual (as 
     determined by the Secretary) from the list maintained at the 
     national level pursuant to subsection (c)(1)(A)(ii) to the 
     position to which such individual was appointed.
       ``(3) Statutory construction.--Except as expressly 
     provided, nothing in this section shall be construed as 
     conferring upon local school boards authority over, or 
     control of, educators at Bureau funded schools or the 
     authority to issue management decisions.
       ``(e) 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 be established for the rapid and 
     equitable resolution of grievances of educators;
       ``(B) that no educator may be discharged without notice of 
     the reasons therefore and opportunity for a hearing under 
     procedures that comport with the requirements of due process; 
     and
       ``(C) that educators employed in Bureau schools be notified 
     30 days prior to the end of the school year whether their 
     employment contract will be renewed for the following year.
       ``(2) Procedures for discharge.--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. Upon giving notice of proposed discharge to an 
     educator, the supervisor involved shall immediately notify 
     the local school board for the school of such action. A 
     determination by the local school board that such educator 
     shall not be discharged shall be followed by the supervisor. 
     The supervisor shall have the right to appeal such action to 
     the education line officer of the appropriate agency office 
     of the Bureau. Upon such an appeal, the agency education line 
     officer may, for good cause and in writing to the local 
     school board, overturn the determination of the local school 
     board with respect to the employment of such individual.
       ``(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 of such school that an 
     educator employed in the school be discharged; and
       ``(B) to recommend to the education line officer of the 
     appropriate agency office of the Bureau and to the Director 
     of the Office, that the supervisor of the school be 
     discharged.
       ``(f) Applicability of Indian Preference Laws.--
       ``(1) In general.--Notwithstanding any provision of the 
     Indian preference laws, such laws shall not apply in the case 
     of any personnel action under this section respecting an 
     applicant or employee not entitled to 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 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) Tribal organization defined.--For purposes of this 
     subsection, the term `tribal organization' means--
       ``(A) 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
       ``(B) in connection with any personnel action referred to 
     in this subsection, any local school board as defined in 
     section 1141 which has been delegated by such governing body 
     the authority to grant a waiver under this subsection with 
     respect to personnel action.
       ``(3) Indian preference law defined.--The term `Indian 
     preference laws' means section 12 of the Act of June 18, 
     1934, 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.
       ``(g) Compensation or Annual Salary.--
       ``(1) In general.--(A) Except as otherwise provided in this 
     section, the Secretary shall fix the basic compensation for 
     educators and education positions 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 
     on the basis of the Federal Wage System schedule in effect 
     for the locality, and for the comparable positions, the rates 
     of compensation in effect for the senior executive service.
       ``(B) The Secretary shall establish the rate of basic 
     compensation, or annual salary rates, for the positions of 
     teachers and counselors (including dormitory counselors and 
     home-living counselors) at the rates of basic compensation 
     applicable (on the date of the enactment of the No Child Left 
     Behind Act of 2001 and thereafter) to comparable positions in 
     the overseas schools under the Defense Department Overseas 
     Teachers Pay Act. The Secretary shall allow the local school 
     boards authority to implement only the aspects of the Defense 
     Department Overseas Teacher pay provisions that are 
     considered essential for recruitment and retention. 
     Implementation of such provisions shall not be construed to 
     require the implementation of the Act in its entirety.
       ``(C)(i) Beginning with the fiscal year following the date 
     of the enactment of the No Child Left Behind Act of 2001, 
     each school board may set the rate of compensation or annual 
     salary rate for teachers and counselors (including academic 
     counselors) who are new hires at the school and who have not 
     worked at the school on the date of implementation of this 
     provision, at rates consistent with the rates paid for 
     individuals in the same positions, with the same tenure and 
     training, in any other school within whose boundaries the 
     Bureau school lies. In instances where the adoption of such 
     rates cause a reduction in the payment of compensation from 
     that which was in effect for the fiscal year following the 
     date of the enactment of the No Child Left Behind Act of 
     2001, the new rate may be applied to the compensation of 
     employees of the school who worked at the school on of the 
     date of the enactment of that Act by applying those rates to 
     each contract renewal such that the reduction takes effect in 
     three equal installments. Where adoption of such rates lead 
     to an increase in the payment of compensation from that which 
     was in effect for the fiscal year following the date of the 
     enactment of the No Child Left Behind Act of 2001, the school 
     board

[[Page 8935]]

     may make such rates applicable at the next contract renewal 
     such that either--
       ``(I) the increase occurs in its entirety; or
       ``(II) the increase is applied in three equal installments.
       ``(ii) The establishment of rates of basic 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 the educator.
       ``(D) The establishment of rates of basic 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 
     (p) is in effect on January 1, 1990.
       ``(2) Post-differential rates.--(A) The Secretary may pay a 
     post-differential rate not to exceed 25 percent of the rate 
     of basic compensation, on the basis of conditions of 
     environment or work which warrant additional pay as a 
     recruitment and retention incentive.
       ``(B)(i) Upon 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 one or 
     more post-differentials under subparagraph (A) unless the 
     Secretary determines for clear and convincing reasons (and 
     advises the board in writing of those reasons) that certain 
     of the requested post-differentials should be disapproved or 
     decreased because there is no disparity of compensation for 
     the involved employees or positions in the Bureau school, as 
     compared with the nearest public school, that is either--
       ``(I) at least 5 percent; or
       ``(II) less than 5 percent and affects the recruitment or 
     retention of employees at the school.
       ``(ii) A request under clause (i) shall be deemed granted 
     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 modification, or 
     disapproved by the Secretary.
       ``(iii) The Secretary or the supervisor of a Bureau school 
     may discontinue or decrease a post-differential authorized 
     under this subparagraph at the beginning of a school year 
     if--
       ``(I) the local school board requests that such 
     differential be discontinued or decreased; or
       ``(II) the Secretary or the supervisor 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.
       ``(iv) On or before February 1 of each year, the Secretary 
     shall submit to Congress a report describing the requests and 
     grants of authority under this subparagraph during the 
     previous year and listing the positions contracted under 
     those grants of authority.
       ``(h) 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 (b)(10) of this section 
     shall not be so liquidated.
       ``(i) Transfer of Remaining Sick Leave Upon Transfer, 
     Promotion, or Reemployment.--In the case of any educator who 
     is transferred, promoted, or reappointed, without break in 
     service, to a position in the Federal Government under a 
     different leave system, any remaining leave to the credit of 
     such person earned or credited under the regulations 
     prescribed pursuant to subsection (b)(10) shall be 
     transferred to such person's credit in the employing agency 
     on an adjusted basis in accordance with regulations which 
     shall be prescribed by the Office of Personnel Management.
       ``(j) Ineligibility for Employment of Voluntarily 
     Terminated Educators.--An educator who voluntarily terminates 
     employment with the Bureau before the expiration of the 
     existing employment contract between such educator and the 
     Bureau shall not be eligible to be employed in another 
     education position in the Bureau during the remainder of the 
     term of such contract.
       ``(k) Dual Compensation.--In the case of any educator 
     employed in an education position described in subsection 
     (l)(1)(A) who--
       ``(1) is employed at the close of a school year;
       ``(2) agrees in writing to serve in such position for the 
     next school year; and
       ``(3) is employed in another position during the recess 
     period immediately preceding such next school year, or during 
     such recess period receives additional compensation referred 
     to in section 5533 of title 5, United States Code, relating 
     to dual compensation,
     shall not apply to such educator by reason of any such 
     employment during a recess period for any receipt of 
     additional compensation.
       ``(l) Voluntary Services.--Notwithstanding section 1342 of 
     title 31, United States Code, the Secretary may, subject to 
     the approval of the local school board concerned, accept 
     voluntary services on behalf of Bureau schools. 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 is 
     a Federal employee only for purposes of chapter 81 of title 
     5, United States Code, and chapter 171 of title 28, United 
     States Code.
       ``(m) Proration of Pay.--
       ``(1) Election of employee.--Notwithstanding any other 
     provision of law, including laws relating to dual 
     compensation, the Secretary, at the election of the employee, 
     shall prorate the salary of an employee employed in an 
     education position for the academic school year over the 
     entire 12-month period. Each educator employed for the 
     academic school year shall annually elect to be paid on a 12-
     month basis or for those months while school is in session. 
     No educator shall suffer a loss of pay or benefits, including 
     benefits under unemployment or other Federal or federally 
     assisted programs, because of such election.
       ``(2) Change of election.--During the course of such year 
     the employee may change election once.
       ``(3) Lump sum payment.--That portion of the employee's pay 
     which would be paid between academic school years may be paid 
     in a lump sum at the election of the employee.
       ``(4) Definitions.--For purposes of this subsection, the 
     terms `educator' and `education position' have the meanings 
     contained in paragraphs (1) and (2) of subsection (o). This 
     subsection applies to those individuals employed under the 
     provisions of section 1132 of this title or title 5, United 
     States Code.
       ``(n) Extracurricular Activities.--
       ``(1) Stipend.--Notwithstanding any other provision of law, 
     the Secretary may provide, for each Bureau area, a stipend in 
     lieu of overtime premium pay or compensatory time off. Any 
     employee of the Bureau who performs additional activities to 
     provide services to students or otherwise support the 
     school's academic and social programs may elect to be 
     compensated for all such work on the basis of the stipend. 
     Such stipend shall be paid as a supplement to the employee's 
     base pay.
       ``(2) Election not to receive stipend.--If an employee 
     elects not to be compensated through the stipend established 
     by this subsection, the appropriate provisions of title 5, 
     United States Code, shall apply.
       ``(3) Applicability of subsection.--This subsection applies 
     to all Bureau employees, whether employed under section 1132 
     of this title or title 5, United States Code.
       ``(o) Definitions.--For the purpose of 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) which requires 
     academic credits in educational theory and practice equal to 
     the academic credits in educational theory and practice 
     required for a bachelor's degree in education from an 
     accredited institution of higher education;
       ``(iii) any activity in or related to the field of 
     education notwithstanding that academic credits in 
     educational theory and practice are not a formal requirement 
     for the conduct of such activity; or
       ``(iv) support services at, or associated with, the site of 
     the school; or
       ``(B) are performed at the agency level of the Bureau and 
     involve the implementation of education-related programs 
     other than the position for agency superintendent for 
     education.
       ``(2) Educator.--The term `educator' means an individual 
     whose services are required, or who is employed, in an 
     education position.
       ``(p) Covered Individuals; Election.--This section shall 
     apply with respect to any educator hired after November 1, 
     1979 (and to any educator who elected for coverage under that 
     provision after November 1, 1979) and to the position in 
     which such individual is employed. The enactment of this 
     section shall not affect the continued employment of an 
     individual employed on October 31, 1979 in an education 
     position, or such person's right to receive the compensation 
     attached to such position.

     ``SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

       ``(a) Establishment of System.--Not later than July 1, 
     2003, the Secretary shall establish within the Office, a 
     computerized management information system, which shall 
     provide processing and information to the Office. The 
     information provided shall include information regarding--
       ``(1) student enrollment;
       ``(2) curriculum;
       ``(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 discreet 
     elements;
       ``(8) relevant reports;
       ``(9) personnel records;
       ``(10) finance and payroll; and
       ``(11) such other items as the Secretary deems appropriate.
       ``(b) Implementation of System.--Not later than July 1, 
     2004, the Secretary shall complete implementation of such a 
     system at each field office and Bureau funded school.

     ``SEC. 1134. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

       ``The Secretary shall cause the various divisions of the 
     Bureau to formulate uniform procedures and practices with 
     respect to such concerns of those divisions as relate to 
     education,

[[Page 8936]]

     and shall report such practices and procedures to the 
     Congress.

     ``SEC. 1135. RECRUITMENT OF INDIAN EDUCATORS.

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

     ``SEC. 1136. BIENNIAL REPORT; AUDITS.

       ``(a) Biennial 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 
     biennial report on the state of education within the Bureau 
     and any problems encountered in Indian education during the 
     2-year 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 the 
     current status of tribally controlled community colleges. The 
     annual budget submission for the Bureau's education programs 
     shall include--
       ``(1) information on the funds provided to previously 
     private schools under section 208 of the Indian Self-
     Determination and Education Assistance Act, and 
     recommendations with respect to the future use of such funds;
       ``(2) the needs and costs of operations and maintenance of 
     tribally controlled community colleges eligible for 
     assistance under the Tribally Controlled Community College 
     Assistance Act of 1978 and recommendations with respect to 
     meeting such needs and costs; and
       ``(3) the plans required by sections 1121 (g), 1122(c), and 
     1125(b).
       ``(b) 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 of each Bureau operated school at least once in 
     every 3 years. Audits of Bureau schools shall be based upon 
     the extent to which such school has complied with its local 
     financial plan under section 1130.

     ``SEC. 1137. RIGHTS OF INDIAN STUDENTS.

       ``The Secretary shall prescribe such rules and regulations 
     as are necessary to ensure the constitutional and civil 
     rights of Indian students attending Bureau funded schools, 
     including such students' 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. 1138. REGULATIONS.

       ``(a) In General.--The Secretary is authorized to issue 
     only such regulations as are necessary to ensure compliance 
     with the specific provision of this Act. The Secretary shall 
     publish proposed regulations in the Federal Register, shall 
     provide a period of not less than 90 days for public comment 
     thereon, and shall place in parentheses after each regulatory 
     section the citation to any statutory provision providing 
     authority to promulgate such regulatory provision.
       ``(b) Miscellaneous.--
       ``(1) Construction.--The provisions of this Act shall 
     supersede any conflicting provisions of law (including any 
     conflicting regulations) in effect on the day before the date 
     of the enactment of this Act and the Secretary is authorized 
     to repeal any regulation inconsistent with the provisions of 
     this Act.
       ``(2) Legal authority to be stated.--Regulations issued to 
     implement this Act shall contain, immediately following each 
     substantive provision of such regulations, citations to the 
     particular section or sections of statutory law or other 
     legal authority upon which provision is based.

     ``SEC. 1138A. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

       ``(a) Meetings.--
       ``(1) In general.--The Secretary shall obtain tribal 
     involvement in the development of proposed regulations under 
     this part and the Tribally Controlled Schools Act of 1988. 
     The Secretary shall obtain the advice of and recommendations 
     from representatives of Indian tribes with Bureau funded 
     schools on their reservations, Indian tribes whose children 
     attend Bureau funded off-reservation boarding schools, school 
     boards, administrators or employees of Bureau funded schools, 
     and parents and teachers of students enrolled in Bureau 
     funded schools.
       ``(2) Issues.--The Secretary shall provide for a 
     comprehensive discussion and exchange of information 
     concerning the implementation of this part and the Tribally 
     Controlled Schools Act of 1988 through such mechanisms as 
     regional meetings and electronic exchanges of information. 
     The Secretary shall take into account the information 
     received through such mechanisms in the development of 
     proposed regulations and shall publish a summary of such 
     information in the Federal Register together with such 
     proposed regulations.
       ``(b) Draft Regulations.--
       ``(1) In general.--After obtaining the advice and 
     recommendations described in subsection (a)(1) and before 
     publishing proposed regulations in the Federal Register, the 
     Secretary shall prepare draft regulations implementing this 
     part and the Tribally Controlled Schools Act of 1988 and 
     shall submit such regulations to a negotiated rulemaking 
     process. Participants in the negotiations process shall be 
     chosen by the Secretary from individuals nominated by the 
     entities described in subsection (a)(1). To the maximum 
     extent possible, the Secretary shall ensure that the tribal 
     representative membership chosen pursuant to the preceding 
     sentence reflects the proportionate share of students from 
     tribes served by the Bureau funded school system. The 
     negotiation process shall be conducted in a timely manner in 
     order that the final regulations may issued by the Secretary 
     no later than 18 months after the enactment of this section.
       ``(2) Notification to congress.--If draft regulations 
     implementing this part and the Tribally Controlled Schools 
     Act of 1988 are not issued in final form by the deadline 
     provided in paragraph (1), the Secretary shall notify the 
     appropriate committees of Congress of which draft regulations 
     were not issued in final form by the deadline and the reason 
     such final regulations were not issued.
       ``(3) Expansion of negotiated rulemaking.--All regulations 
     pertaining to this part and the Tribally Controlled Schools 
     Act of 1988 that are promulgated after the date of the 
     enactment of this subsection shall be subject to a negotiated 
     rulemaking (including the selection of the regulations to be 
     negotiated), unless the Secretary determines that applying 
     such a requirement with respect to given regulations is 
     impracticable, unnecessary, or contrary to the public 
     interest (within the meaning of section 553(b)(3)(B) of title 
     5), and publishes the basis for such determination in the 
     Federal Register at the same time as the proposed regulations 
     in question are first published. All published proposed 
     regulations shall conform to agreements resulting from such 
     negotiated rulemaking unless the Secretary reopens the 
     negotiated rulemaking process or provides a written 
     explanation to the participants in that process why the 
     Secretary has decided to depart from such agreements. Such 
     negotiated rulemaking shall be conducted in accordance with 
     the provisions of subsection (a), and the Secretary shall 
     ensure that a clear and reliable record of agreements reached 
     during the negotiation process is maintained.
       ``(c) Applicability of Federal Advisory Committee Act.--The 
     Federal Advisory Committee Act shall apply to activities 
     carried out under this section.

     ``SEC. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

       ``(a) In General.--The Secretary shall provide grants to 
     tribes, tribal organizations, and consortia of tribes and 
     tribal organizations to fund early childhood development 
     programs that are operated by such tribes, organizations, or 
     consortia.
       ``(b) Amount of Grants.--
       ``(1) In general.--The total amount of the grants provided 
     under subsection (a) with respect to each tribe, tribal 
     organization, or consortium of tribes or tribal organizations 
     for each fiscal year shall be equal to the amount which bears 
     the same relationship to the total amount appropriated under 
     the authority of subsection (g) for such fiscal year (less 
     amounts provided under subsection (f)) as--
       ``(A) the total number of children under 6 years of age who 
     are members of--
       ``(i) such tribe;
       ``(ii) the tribe that authorized such tribal organization; 
     or
       ``(iii) any tribe that--

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

       ``(B) the total number of all children under 6 years of age 
     who are members of any tribe that--
       ``(i) is eligible to receive funds under subsection (a);
       ``(ii) is a member of a consortium that is eligible to 
     receive such funds; or
       ``(iii) authorizes a tribal organization that is eligible 
     to receive such funds.
       ``(2) Limitation.--No grant may be provided under 
     subsection (a)--
       ``(A) to any tribe that has less than 500 members;
       ``(B) to any tribal organization which is authorized--
       ``(i) by only one tribe that has less than 500 members; or
       ``(ii) by one or more tribes that have a combined total 
     membership of less than 500 members; or
       ``(C) to any consortium composed of tribes, or tribal 
     organizations authorized by tribes, that have a combined 
     total tribal membership of less than 500 members.
       ``(c) Application.
       ``(1) In general.--A grant may be provided under subsection 
     (a) to a tribe, tribal organization, or consortia of tribes 
     and tribal organizations only if the tribe, organization, or 
     consortia submits to the Secretary an application for the 
     grant at such time and in such form as the Secretary shall 
     prescribe.
       ``(2) Contents.--Applications submitted under paragraph (1) 
     shall set forth the early childhood development program that 
     the applicant desires to operate.
       ``(d) Requirement of Programs Funded.--The early childhood 
     development programs that are funded by grants provided under 
     subsection (a)--
       ``(1) shall coordinate existing programs and may provide 
     services that meet identified needs of parents and children 
     under 6 years of age which are not being met by existing 
     programs, including--
       ``(A) prenatal care;
       ``(B) nutrition education;
       ``(C) health education and screening;
       ``(D) family literacy services;
       ``(E) educational testing; and

[[Page 8937]]

       ``(F) other educational services;
       ``(2) may include instruction in the language, art, and 
     culture of the tribe; and
       ``(3) shall provide for periodic assessment of the program.
       ``(e) Coordination of Family Literacy Programs.--Family 
     literacy programs operated under this section and other 
     family literacy programs operated by the Bureau of Indian 
     Affairs shall be coordinated with family literacy programs 
     for Indian children under part B of title I of the Elementary 
     and Secondary Education Act of 1965 in order to avoid 
     duplication and to encourage the dissemination of information 
     on quality family literacy programs serving Indians.
       ``(f) Administrative Costs.--The Secretary shall, out of 
     funds appropriated under subsection (g), include in the 
     grants provided under subsection (a) amounts for 
     administrative costs incurred by the tribe, tribal 
     organization, or consortium of tribes in establishing and 
     maintaining the early childhood development program.
       ``(g) Authorization of Appropriations.--For the purpose of 
     carrying out the provisions of this section, there are 
     authorized to be appropriated $10,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the fiscal 
     years 2003, 2004, 2005, and 2006.

     ``SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Secretary shall provide grants and 
     technical assistance to tribes for the development and 
     operation of tribal departments of education for the purpose 
     of planning and coordinating all educational programs of the 
     tribe.
       ``(b) Grants.--Grants provided under this section shall--
       ``(1) be based on applications from the governing body of 
     the tribe;
       ``(2) reflect factors such as geographic and population 
     diversity;
       ``(3) facilitate tribal control in all matters relating to 
     the education of Indian children on Indian reservations (and 
     on former Indian reservations in Oklahoma);
       ``(4) provide for the development of coordinated 
     educational programs on Indian reservations (and on former 
     Indian reservations in Oklahoma) (including all preschool, 
     elementary, secondary, and higher or vocational educational 
     programs funded by tribal, Federal, or other sources) by 
     encouraging tribal administrative support of all Bureau 
     funded educational programs as well as encouraging tribal 
     cooperation and coordination with all educational programs 
     receiving financial support from State agencies, other 
     Federal agencies, or private entities;
       ``(5) 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; and
       ``(6) otherwise comply with regulations for grants under 
     section 103(a) of the Indian Self-Determination and 
     Educational Assistance Act that are in effect on the date 
     that application for such grants are made.
       ``(c) Priorities.--
       ``(1) In general.--In making grants under this section, the 
     Secretary shall give priority to any application that--
       ``(A) includes assurances from the majority of Bureau 
     funded schools located within the boundaries of the 
     reservation of 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, including the submission to each applicable agency 
     of a unified application for funding for all of such schools 
     which provides that--
       ``(i) no administrative costs other than those attributable 
     to the individual programs of such schools will be associated 
     with the unified application; and
       ``(ii) the distribution of all funds received under the 
     unified application will be equal to the amount of funds 
     provided by the applicable agency to which each of such 
     schools is entitled under law;
       ``(B) includes assurances from the tribal governing body 
     that the tribal department of education funded under this 
     section will administer all contracts or grants (except those 
     covered by the other provisions of this title and the 
     Tribally Controlled Community College Assistance Act of 1978) 
     for education programs administered by the tribe and will 
     coordinate all of the programs to the greatest extent 
     possible;
       ``(C) includes assurances for the monitoring and auditing 
     by or through the tribal department of education of all 
     education programs for which funds are provided by contract 
     or grant to ensure that the programs meet the requirements of 
     law; and
       ``(D) provides a plan and schedule for--
       ``(i) the assumption over the term of the grant by the 
     tribal department of education of all assets and functions of 
     the Bureau agency office associated with the tribe, insofar 
     as those responsibilities relate to education; and
       ``(ii) the termination by the Bureau of such operations and 
     office at the time of such assumption,

     except that when mutually agreeable between 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.
       ``(2) Time period of grant.--Subject to the availability of 
     appropriated funds, grants provided under this section shall 
     be provided for a period of 3 years and the grant may, if 
     performance by the grantee is satisfactory to the Secretary, 
     be renewed for additional 3-year terms.
       ``(d) Terms, Conditions, or Requirements.--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.
       ``(e) Authorization of Appropriations.--For the purpose of 
     carrying out the provisions of 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 the fiscal 
     years 2003, 2004, 2005, and 2006.

     ``SEC. 1141. DEFINITIONS.

       ``For the purposes of this part, unless otherwise 
     specified:
       ``(1) Agency school board.--The term `agency school board' 
     means a body, the members of which are appointed by all of 
     the school boards of the schools located within an agency, 
     including schools operated under contract or grant, and the 
     number of such members shall be determined by the Secretary 
     in consultation with the affected tribes, except that, in 
     agencies serving a single school, the school board of such 
     school shall fulfill these duties, and in agencies having 
     schools or a school operated under contract or grant, one 
     such member at least shall be from such a school.
       ``(2) Bureau.--The term `Bureau' means the Bureau of Indian 
     Affairs of the Department of the Interior.
       ``(3) Bureau funded school.--The term `Bureau funded 
     school' means--
       ``(A) a Bureau school;
       ``(B) a contract or grant school; or
       ``(C) a school for which assistance is provided under the 
     Tribally Controlled Schools Act of 1988.
       ``(4) Bureau school.--The term `Bureau school' means a 
     Bureau operated elementary or secondary day or boarding 
     school or a Bureau operated dormitory for students attending 
     a school other than a Bureau school.
       ``(5) Contract or grant school.--The term `contract or 
     grant school' means an elementary or secondary school or 
     dormitory which 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.
       ``(6) Education line officer.--The term `education line 
     officer' means education personnel under the supervision of 
     the Director, whether located in the central, area, or agency 
     offices.
       ``(7) Family literacy services.--The term `family literacy 
     services' has the meaning given that term in section 8101 of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801).
       ``(8) Financial plan.--The term `financial plan' means a 
     plan of services provided by each Bureau school.
       ``(9) 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.
       ``(10) 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, independent, or other school district 
     located within a State, and includes any State agency which 
     directly operates and maintains facilities for providing free 
     public education.
       ``(11) 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 in 
     schools serving a substantial number of students from 
     different tribes, the members shall be appointed by the 
     governing bodies of the tribes affected, and the number of 
     such members shall be determined by the Secretary in 
     consultation with the affected tribes.
       ``(12) Office.--The term `Office' means the Office of 
     Indian Education Programs within the Bureau.
       ``(13) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(14) Supervisor.--The term `supervisor' means the 
     individual in the position of ultimate authority at a Bureau 
     school.
       ``(15) 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.
       ``(16) Tribe.--The term `tribe' means any Indian tribe, 
     band, nation, or other organized group or community, 
     including any Alaska Native village or regional or village 
     corporation as defined in or established pursuant to the 
     Alaska Native Claims Settlement Act, which is recognized as 
     eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.''.

     SEC. 314. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

       Sections 5202 through 5212 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--

[[Page 8938]]

       ``(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) the Bureau of Indian Affairs' administration and 
     domination of the contracting process under such Act has not 
     provided the full opportunity to develop leadership skills 
     crucial to the realization of self-government and has denied 
     Indians an effective voice in the planning and implementation 
     of programs for the benefit of Indians which 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 which will ensure the 
     development of qualified people to fulfill meaningful 
     leadership roles;
       ``(5) the Federal administration of education for Indian 
     children has 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 such services more responsive to the needs 
     and desires of those 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 which 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 which will enable tribes 
     and local communities to effect the quantity and quality of 
     educational services and opportunities which will permit 
     Indian children to compete and excel in the life areas of 
     their choice and to achieve the measure of self-determination 
     essential to their social and economic well-being.
       ``(d) Educational Needs.--Congress affirms the reality of 
     the special and unique educational needs of Indian peoples, 
     including the need for programs to meet the linguistic and 
     cultural aspirations of Indian tribes and communities. These 
     may best be met through a grant process.
       ``(e) Federal Relations.--Congress declares its commitment 
     to these policies and its support, to the full extent of its 
     responsibility, for Federal relations with the Indian 
     Nations.
       ``(f) Termination.--Congress hereby repudiates and rejects 
     House 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 as contract school;
       ``(B) operate other tribally controlled schools eligible 
     for assistance under this part and submit applications (which 
     are approved by their tribal governing bodies) to the 
     Secretary for such grants; or
       ``(C) elect to assume operation of Bureau funded schools 
     with the assistance under this part and submit applications 
     (which are approved by their tribal governing bodies) to the 
     Secretary for such grants.
       ``(2) Deposit of funds.--Grants provided under this part 
     shall be deposited into the general operating fund of the 
     tribally controlled school with respect to which the grant is 
     made.
       ``(3) Use of funds.--(A) Except as otherwise provided in 
     this paragraph, grants provided under this part shall be used 
     to defray, at the discretion of the school board of the 
     tribally controlled school with respect to which the grant is 
     provided, any expenditures for education related activities 
     for which any funds that compose the grant may be used under 
     the laws described in section 5205(a), including, but not 
     limited to, expenditures for--
       ``(i) school operations, academic, educational, 
     residential, guidance and counseling, and administrative 
     purposes; and
       ``(ii) support services for the school, including 
     transportation.
       ``(B) Grants provided under this part may, at the 
     discretion of the school board of the tribally controlled 
     school with respect to which such grant is provided, be used 
     to defray operations and maintenance expenditures for the 
     school if any funds for the operation and maintenance of the 
     school are allocated to the school under the provisions of 
     any of the laws described in section 5205(a).
       ``(b) Limitations.--
       ``(1) One grant per tribe or organization per fiscal 
     year.--Not more than one grant may be provided under this 
     part with respect to any Indian tribe or tribal organization 
     for any fiscal year.
       ``(2) Nonsectarian use.--Funds provided under any grant 
     made under this part may not be used in connection with 
     religious worship or sectarian instruction.
       ``(3) Administrative costs limitation.--Funds provided 
     under any grant under this part may not be expended for 
     administrative costs (as defined in section 1128(h)(1) of the 
     Education Amendments of 1978) in excess of the amount 
     generated for such costs under section 1128 of such Act.
       ``(c) Limitation on Transfer of Funds Among Schoolsites.--
       ``(1) In general.--In the case of a grantee that operates 
     schools at more than one schoolsite, the grantee may expend 
     not more than the lesser of--
       ``(A) 10 percent of the funds allocated for such schoolsite 
     under section 1128 of the Education Amendments of 1978; or
       ``(B) $400,000 of such funds, at any other schoolsite.
       ``(2) Definition of schoolsite.--For purposes of this 
     subsection, the term `schoolsite' means the physical location 
     and the facilities of an elementary or secondary educational 
     or residential program operated by, or under contract or 
     grant with, the Bureau for which a discreet student count is 
     identified under the funding formula established under 
     section 1127 of the Education Amendments of 1978.
       ``(d) No Requirement To Accept Grants.--Nothing in this 
     part may be construed--
       ``(1) to require a tribe or tribal organization to apply 
     for or accept; or
       ``(2) to allow any person to coerce any tribe or tribal 
     organization to apply for, or accept,

     a grant under this part to plan, conduct, and administer all 
     of, or any portion of, any Bureau program. Such applications 
     and the timing of such applications shall be strictly 
     voluntary. Nothing in this part may be construed as allowing 
     or requiring any grant with any entity other than the entity 
     to which the grant is provided.
       ``(e) No Effect on Federal Responsibility.--Grants provided 
     under this part shall not terminate, modify, suspend, or 
     reduce the responsibility of the Federal Government to 
     provide a program.
       ``(f) Retrocession.--
       ``(1) In general.--Whenever a tribal governing body 
     requests retrocession of any program for which assistance is 
     provided under this part, such retrocession shall become 
     effective upon a date specified by the Secretary that is not 
     later than 120 days after the date on which the tribal 
     governing body requests the retrocession. A later date as may 
     be specified if mutually agreed upon by the Secretary and the 
     tribal governing body. If such a program is retroceded, the 
     Secretary shall provide to any Indian tribe served by such 
     program at least the same quantity and quality of services 
     that would have been provided under such program at the level 
     of funding provided under this part prior to the 
     retrocession.
       ``(2) Status after retrocession.--The tribe requesting 
     retrocession shall specify whether the retrocession is to 
     status as a Bureau operated school or as a school operated 
     under contract under title XI of the Education Amendments of 
     1978.
       ``(3) Transfer of equipment and materials.--Except as 
     otherwise determined by the Secretary, the tribe or tribal 
     organization operating the program to be retroceded must 
     transfer to the Secretary (or to the tribe or tribal 
     organization which will operate the program as a contract 
     school) the existing equipment and materials which were 
     acquired--
       ``(A) with assistance under this part; or
       ``(B) upon assumption of operation of the program under 
     this part if the school was a Bureau funded school under 
     title XI of the Education Amendments of 1978 before receiving 
     assistance under this part.
       ``(g) Prohibition of Termination for Administrative 
     Convenience.--Grants provided under this part may not be 
     terminated, modified, suspended, or reduced solely for the 
     convenience of the administering agency.

     ``SEC. 5205. COMPOSITION OF GRANTS.

       ``(a) In General.--The grant provided under this part to an 
     Indian tribe or tribal organization for any fiscal year shall 
     consist of--
       ``(1) the total amount of funds allocated for such fiscal 
     year under sections 1127 and 1128 of the Education Amendments 
     of 1978 with respect to the tribally controlled schools 
     eligible for assistance under this part which are operated by 
     such Indian tribe or tribal organization, including, but not 
     limited to, funds provided under such sections, or under any 
     other provision of law, for transportation costs;
       ``(2) to the extent requested by such Indian tribe or 
     tribal organization, the total amount of funds provided from 
     operations and maintenance accounts and, notwithstanding 
     section 105 of the Indian Self-Determination Act, or any 
     other provision of law, other facilities accounts for such 
     schools for such fiscal year (including but not limited to 
     those referenced under section 1126(d) of the Education 
     Amendments of 1978 or any other law); and
       ``(3) the total amount of funds that are allocated to such 
     schools for such fiscal year under--
       ``(A) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(B) the Individuals with Disabilities Education Act; and
       ``(C) any other Federal education law, that are allocated 
     to such schools for such fiscal year.

[[Page 8939]]

       ``(b) Special Rules.--
       ``(1) In general.--(A) 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) Indian tribes and tribal organizations to which 
     grants are provided under this part, and tribally controlled 
     schools for which such grants are provided, shall not be 
     subject to any requirements, obligations, restrictions, or 
     limitations imposed by the Bureau that would otherwise apply 
     solely by reason of the receipt of funds provided under any 
     law referred to in clause (i), (ii), or (iii) of subparagraph 
     (A).
       ``(2) Schools considered contract schools.--Tribally 
     controlled schools for which grants are provided under this 
     part shall be treated as contract schools for the purposes of 
     allocation of funds under sections 1126(d), 1127, and 1128 of 
     the Education Amendments of 1978.
       ``(3) Schools considered bureau schools.--Tribally 
     controlled schools for which grants are provided under this 
     chapter shall be treated as Bureau schools for the purposes 
     of allocation of funds provided under--
       ``(A) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(B) the Individuals with Disabilities Education Act; and
       ``(C) any other Federal education law, that are distributed 
     through the Bureau.
       ``(4) Accounts; use of certain funds.--(A) 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 under section 5204(a), the grantee 
     shall maintain a separate account for such funds. At the end 
     of the period designated for the work covered by the funds 
     received, the grantee shall submit to the Secretary a 
     separate accounting of the work done and the funds expended 
     to the Secretary. Funds received from these accounts may only 
     be used for the purpose for which they were appropriated and 
     for the work encompassed by the application or submission 
     under which they were received.
       ``(B) 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 
     government or other organization provides funding for the new 
     construction equal to at least 25 percent of the total cost 
     of such new construction.
       ``(C) Where the appropriations measure or the application 
     submission does not stipulate a period for the work covered 
     by the funds so designated, the Secretary and the grantee 
     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 grantee.
       ``(5) Enforcement of request to include funds.--If the 
     Secretary fails to carry out a request made under subsection 
     (a)(2) within 180 days of a request filed by an Indian tribe 
     or tribal organization to include in such tribe or 
     organization's grant the funds described in subsection 
     (a)(2), the Secretary shall be deemed to have approved such 
     request and the Secretary shall immediately amend the grant 
     accordingly. Such tribe or organization may enforce its 
     rights under subsection (a)(2) and this paragraph, including 
     any denial or failure to act on such tribe or organization's 
     request, pursuant to the disputes 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 a school for which the Bureau has not provided 
     funds, but which has met the requirements of subsection (c); 
     or
       ``(D) is a school with respect to which an election has 
     been made under paragraph (2) and which has met the 
     requirements of subsection (b).
       ``(2) New schools.--Any application which has been 
     submitted under the Indian Self-Determination and Education 
     Assistance Act by an Indian tribe for a school which is not 
     in operation on the date of the enactment of the No Child 
     Left Behind 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 the enactment of the No Child Left Behind 
     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) By not later than the 
     date that is 120 days after the date on which an application 
     is submitted to the Secretary under paragraph (1)(A), the 
     Secretary shall determine--
       ``(i) in the case of a school which is not being operated 
     by the Indian tribe or tribal organization, whether to 
     transfer operation of the school to the Indian tribe or 
     tribal organization; and
       ``(ii) whether the school is eligible for assistance under 
     this part.
       ``(B) In considering applications submitted under paragraph 
     (1)(A), the Secretary--
       ``(i) shall transfer operation of the school to the Indian 
     tribe or tribal organization, if the tribe or tribal 
     organization is not already operating the school; and
       ``(ii) shall determine that the school is eligible for 
     assistance under this part, unless the Secretary finds by 
     clear and convincing evidence that the services to be 
     provided by the Indian tribe or tribal organization will be 
     deleterious to the welfare of the Indians served by the 
     school.
       ``(C) In considering applications submitted under paragraph 
     (1)(A), the Secretary shall consider whether the Indian tribe 
     or tribal organization would be deficient in operating the 
     school with respect to--
       ``(i) equipment;
       ``(ii) bookkeeping and accounting procedures;
       ``(iii) ability to adequately manage a school; or
       ``(iv) adequately trained personnel.
       ``(c) Additional Requirements for a School Which Is Not a 
     Bureau Funded School.--
       ``(1) In general.--A school which is not a Bureau funded 
     school under title XI of the Education Amendments of 1978 
     meets the requirements of this subsection if--
       ``(A) the Indian tribe or tribal organization that 
     operates, or desires to operate, the school submits to the 
     Secretary an application requesting a determination by the 
     Secretary as to whether the school is eligible for assistance 
     under this part; and
       ``(B) the Secretary makes a determination that a school is 
     eligible for assistance under this part.
       ``(2) Deadline for determination by secretary.--(A) By not 
     later than the date that is 180 days after the date on which 
     an application is submitted to the Secretary under paragraph 
     (1)(A), the Secretary shall determine whether the school is 
     eligible for assistance under this part.
       ``(B) In making the determination under subparagraph (A), 
     the Secretary shall give equal consideration to each of the 
     following factors:
       ``(i) with respect to the applicant's proposal--
       ``(I) the adequacy of facilities or the potential to obtain 
     or provide adequate facilities;


       ``(II) geographic and demographic factors in the affected 
     areas;
       ``(III) adequacy of the applicant's program plans;
       ``(IV) geographic proximity of comparable public education; 
     and
       ``(V) the needs as expressed by all affected parties, 
     including but not limited to students, families, tribal 
     governments at both the central and local levels, and school 
     organizations; and
       ``(ii) with respect to all education services already 
     available--
       ``(I) geographic and demographic factors in the affected 
     areas;
       ``(II) adequacy and comparability of programs already 
     available;
       ``(III) consistency of available programs with tribal 
     education codes or tribal legislation on education; and
       ``(IV) the history and success of these services for the 
     proposed population to be served, as determined from all 
     factors including, if relevant, standardized examination 
     performance.
       ``(C) The Secretary may not make a determination under this 
     paragraph that is primarily based upon the geographic 
     proximity of comparable public education.
       ``(D) Applications submitted under paragraph (1)(A) shall 
     include information on the factors described in subparagraph 
     (B)(i), but the applicant may also provide the Secretary such 
     information relative to the factors described in subparagraph 
     (B)(ii) as the applicant considers appropriate.
       ``(E) If the Secretary fails to make a determination under 
     subparagraph (A) with respect to an application within 180 
     days after the date on which the Secretary received the 
     application, the Secretary shall be treated as having made a 
     determination that the tribally controlled school is eligible 
     for assistance under the title and the grant shall become 
     effective 18 months after the date on which the Secretary 
     received the application, or on an earlier date, at the 
     Secretary's discretion.

[[Page 8940]]

       ``(d) Filing of Applications and Reports.--
       ``(1) In general.--All applications and reports submitted 
     to the Secretary under this part, and any amendments to such 
     applications or reports, shall be filed with the education 
     line officer designated by the Director of the Office of 
     Indian Education Programs of the Bureau of Indian Affairs. 
     The date on which such filing occurs shall, for purposes of 
     this part, be treated as the date on which the application or 
     amendment was submitted to the Secretary.
       ``(2) Supporting documentation.--Any application that is 
     submitted under this chapter shall be accompanied by a 
     document indicating the action taken by the tribal governing 
     body in authorizing such application.
       ``(e) Effective Date for Approved Applications.--Except as 
     provided by subsection (c)(2)(E), a grant provided under this 
     part, and any transfer of the operation of a Bureau school 
     made under subsection (b), shall become effective beginning 
     the academic year succeeding the fiscal year in which the 
     application for the grant or transfer is made, or at an 
     earlier date determined by the Secretary.
       ``(f) Denial of Applications.--
       ``(1) In general.--Whenever the Secretary refuses to 
     approve a grant under this chapter, to transfer operation of 
     a Bureau school under subsection (b), or determines that a 
     school is not eligible for assistance under this part, the 
     Secretary shall--
       ``(A) state the objections in writing to the tribe or 
     tribal organization within the allotted time;
       ``(B) provide assistance to the tribe or tribal 
     organization to overcome all stated objections.
       ``(C) at the request of the tribe or tribal organization, 
     provide the tribe or tribal organization a hearing on the 
     record under the same rules and regulations that apply under 
     the Indian Self-Determination and Education Assistance Act; 
     and
       ``(D) provide an opportunity to appeal the objection 
     raised.
       ``(2) Timeline for reconsideration of amended 
     applications.--The Secretary shall reconsider any amended 
     application submitted under this part within 60 days after 
     the amended application is submitted to the Secretary.
       ``(g) Report.--The Bureau shall submit an annual report to 
     the Congress on all applications received, and actions taken 
     (including the costs associated with such actions), under 
     this section at the same time that the President is required 
     to submit to Congress the budget under section 1105 of title 
     31, United States Code.

     ``SEC. 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 shall complete an annual report which shall be 
     limited to--
       ``(A) an annual financial statement reporting revenue and 
     expenditures as defined by the cost accounting established by 
     the grantee;
       ``(B) an annual financial audit conducted pursuant to the 
     standards of the Single Audit Act of 1984;
       ``(C) an annual submission to the Secretary of the number 
     of students served and a brief description of programs 
     offered under the grant; and
       ``(D) a program evaluation conducted by an impartial 
     evaluation review team, to be based on the standards 
     established for purposes of subsection (c)(1)(A)(ii).
       ``(2) Evaluation review teams.--Where appropriate, other 
     tribally controlled schools and representatives of tribally 
     controlled community colleges shall make up members of the 
     evaluation review teams.
       ``(3) Evaluations.--In the case of a school which is 
     accredited, evaluations will be conducted at intervals under 
     the terms of accreditation.
       ``(4) Submission of report.--
       ``(A) To tribally governing body.--Upon completion of the 
     report required under paragraph (a), the recipient of the 
     grant shall send (via first class mail, return receipt 
     requested) a copy of such annual report to the tribal 
     governing body (as defined in section 1132(f) of the 
     Education Amendments of 1978) of the tribally controlled 
     school.
       ``(B) To secretary.--Not later than 30 days after receiving 
     written confirmation that the tribal governing body has 
     received the report send pursuant to subsection (A), the 
     recipient of the grant shall send a copy of the report to the 
     Secretary.
       ``(c) Revocation of Eligibility.--
       ``(1) In general.--(A) The Secretary shall not revoke a 
     determination that a school is eligible for assistance under 
     this part if--
       ``(i) the Indian tribe or tribal organization submits the 
     reports required under subsection (b) with respect to the 
     school; and
       ``(ii) at least one of the following subclauses applies 
     with respect to the school:
       ``(I) The school is certified or accredited by a State or 
     regional accrediting association or is a candidate in good 
     standing for such accreditation under the rules of the State 
     or regional accrediting association, showing that credits 
     achieved by the students within the education programs are, 
     or will be, accepted at grade level by a State certified or 
     regionally accredited institution.
       ``(II) A determination made by the Secretary that there is 
     a reasonable expectation that the accreditation described in 
     subclause (I), or the candidacy in good standing for such 
     accreditation, will be reached by the school within 3 years 
     and that the program offered by the school is beneficial to 
     the Indian students.
       ``(III) The school is accredited by a tribal department of 
     education if such accreditation is accepted by a generally 
     recognized regional or State accreditation agency.
       ``(IV) The schools accept the standards promulgated under 
     section 1121 of the Education Amendments of 1978 and an 
     evaluation of performance is conducted under this section in 
     conformance with the regulations pertaining to Bureau 
     operated schools by an impartial evaluator chosen by the 
     grantee, but no grantee shall be required to comply with 
     these standards to a higher degree than a comparable Bureau 
     operated school.
       ``(V) A positive evaluation of the school is conducted by 
     an impartial evaluator agreed upon by the Secretary and the 
     grantee every 2 years under standards adopted by the 
     contractor under a contract for a school entered into under 
     the Indian Self-Determination and Education Assistance Act 
     (or revisions of such standards agreed to by the Secretary 
     and the grantee) prior to the date of the enactment of this 
     Act. If the Secretary and the grantee other than the 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 grantee which is the 
     tribal governing body fail to agree on such an evaluator, 
     this subclause shall not apply.
       ``(B) The choice of standards employed for the purpose of 
     subparagraph (A)(ii) shall be consistent with section 1121(e) 
     of the Education Amendments of 1978.
       ``(2) Notice requirements for revocation.--The Secretary 
     shall not revoke a determination that a school is eligible 
     for assistance under this part, or reassume control of a 
     school that was a Bureau school prior to approval of an 
     application submitted under section 5206(b)(1)(A) until the 
     Secretary--
       ``(A) provides notice to the tribally controlled school and 
     the tribal governing body (within the meaning of section 
     1141(14) of the Education Amendments of 1978) of the tribally 
     controlled school which states--
       ``(i) the specific deficiencies that led to the revocation 
     or resumption determination; and
       ``(ii) the actions that are needed to remedy such 
     deficiencies; and
       ``(B) affords such authority an opportunity to effect the 
     remedial actions.
       ``(3) Technical assistance.--The Secretary shall provide 
     such technical assistance as is practicable to effect such 
     remedial actions. Such notice and technical assistance shall 
     be in addition to a hearing and appeal to be conducted 
     pursuant to the regulations described in section 
     5206(f)(1)(C).
       ``(d) Applicability of Section Pursuant to Election Under 
     Section 5209(b).--With respect to a tribally controlled 
     school which receives assistance under this part pursuant to 
     an election made under section 5209(b)--
       ``(1) subsection (b) of this section shall apply; and
       ``(2) the Secretary may not revoke eligibility for 
     assistance under this part except in conformance with 
     subsection (c) of this section.

     ``SEC. 5208. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.

       ``(a) Payments.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall make payments to grantees 
     under this part in two payments, of which--
       ``(A) the first payment shall be made not later than July 
     15 of each year in an amount equal to 85 percent of the 
     amount which the grantee was entitled to receive during the 
     preceding academic year; and
       ``(B) the second payment, consisting of the remainder to 
     which the grantee is entitled for the academic year, shall be 
     made not later than December 1 of each year.
       ``(2) Newly funded schools.--For any school for which no 
     payment under this part was made from Bureau funds in the 
     preceding academic year, full payment of the amount computed 
     for the first academic year of eligibility under this part 
     shall be made not later than December 1 of the academic year.
       ``(3) Late funding.--With regard to funds for grantees that 
     become available for obligation on October 1 of the fiscal 
     year for which such funds are appropriated, the Secretary 
     shall make payments to grantees not later than December 1 of 
     the fiscal year.
       ``(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 by paragraphs 
     (1), (2), and (3).
       ``(5) Restrictions.--Paragraphs (1), (2), and (3) shall be 
     subject to any restriction on amounts of payments under this 
     part that are imposed by a continuing resolution or other Act 
     appropriating the funds involved.
       ``(b) Investment of Funds.--
       ``(1) Treatment of interest and investment income.--
     Notwithstanding any other provision of law, any interest or 
     investment income that accrues to any funds provided under 
     this part after such funds are paid to the Indian tribe or 
     tribal organization and before such funds are expended for 
     the purpose for which such funds were provided under this 
     part shall be the property of the Indian tribe or tribal 
     organization

[[Page 8941]]

     and shall not be taken into account by any officer or 
     employee of the Federal Government in determining whether to 
     provide assistance, or the amount of assistance, under any 
     provision of Federal law. Such interest income shall be spent 
     on behalf of the school.
       ``(2) Permissible investments.--Funds provided under this 
     part may be invested by the Indian tribe or tribal 
     organization before such funds are expended for the purposes 
     of this part so long as such funds are--
       ``(A) invested by the Indian tribe or tribal organization 
     only in obligations of the United States, or in obligations 
     or securities that are guaranteed or insured by the United 
     States, or mutual (or other) funds registered with the 
     Securities and Exchange Commission and which only invest in 
     obligations of the United States, or securities that are 
     guaranteed or insured by the United States; or
       ``(B) deposited only into accounts that are insure by and 
     agency or instrumentality of the United States, or are fully 
     collateralized to ensure protection of the funds, even in the 
     event of a bank failure.
       ``(c) Recoveries.--For the purposes of underrecovery and 
     overrecovery determinations by any Federal agency for any 
     other funds, from whatever source derived, funds received 
     under this part shall not be taken into consideration.

     ``SEC. 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:
       ``(1) Section 5(f) (relating to single agency audit).
       ``(2) Section 6 (relating to criminal activities; 
     penalties).
       ``(3) Section 7 (relating to wage and labor standards).
       ``(4) Section 104 (relating to retention of Federal 
     employee coverage).
       ``(5) Section 105(f) (relating to Federal property).
       ``(6) Section 105(k) (relating to access to Federal sources 
     of supply).
       ``(7) Section 105(l) (relating to lease of facility used 
     for administration and delivery of services).
       ``(8) Section 106(e) (relating to limitation on remedies 
     relating to cost allowances).
       ``(9) Section 106(i) (relating to use of funds for matching 
     or cost participation requirements).
       ``(10) Section 106(j) (relating to allowable uses of 
     funds).
       ``(11) Section 108(c) (Model Agreements provisions 
     (1)(a)(5) (relating to limitations of costs), (1)(a)(7) 
     (relating to records and monitoring), (1)(a)(8) (relating to 
     property), and (a)(1)(9) (relating to availability of funds).
       ``(12) Section 109 (relating to reassumption).
       ``(13) Section 111 (relating to sovereign immunity and 
     trusteeship rights unaffected).
       ``(b) Election for Grant in Lieu of Contract.--
       ``(1) In general.--Contractors for activities to which this 
     part applies who have entered into a contract under the 
     Indian Self-Determination and Education Assistance Act that 
     is in effect upon the date of the enactment of the No Child 
     Left Behind Act of 2001 may, by giving notice to the 
     Secretary, elect to have the provisions of this part apply to 
     such activity in lieu of such contract.
       ``(2) Effective date of election.--Any election made under 
     paragraph (1) shall take effect on the later of--
       ``(A) October 1 of the fiscal year succeeding the fiscal 
     year in which such election is made; or
       ``(B) 60 days after the date of such election.
       ``(3) Exception.--In any case in which the 60-day period 
     referred to in paragraph (2)(B) is less than 60 days before 
     the beginning of the succeeding fiscal year, such election 
     shall not take effect until the fiscal year after the fiscal 
     year succeeding the election.
       ``(c) No Duplication.--No funds may be provided under any 
     contract entered into under the Indian Self-Determination and 
     Education Assistance Act to pay any expenses incurred in 
     providing any program or services if a grant has been made 
     under this part to pay such expenses.
       ``(d) Transfers and Carryovers.--
       ``(1) Buildings, equipment, supplies, materials.--A tribe 
     or tribal organization assuming the operation of--
       ``(A) a Bureau school with assistance under this part shall 
     be entitled to the transfer or use of buildings, equipment, 
     supplies, and materials to the same extent as if it were 
     contracting under the Indian Self-Determination and Education 
     Assistance Act; or
       ``(B) a contract school with assistance under this part 
     shall be entitled to the transfer or use of buildings, 
     equipment, supplies and materials that were used in the 
     operation of the contract school to the same extent as if it 
     were contracting under the Indian Self-Determination and 
     Education Assistance Act.
       ``(2) Funds.--Any tribe or tribal organization which 
     assumes operation of a Bureau school with assistance under 
     this part and any tribe or tribal organization which elects 
     to operate a school with assistance under this part rather 
     that to continue as a contract school shall be entitled to 
     any funds which would carryover from the previous fiscal year 
     as if such school were operated as a contract school.
       ``(e) Exceptions, Problems, and Disputes.--Any exception or 
     problem cited in an audit conducted pursuant to section 
     5207(b)(2), any dispute regarding a grant authorized to be 
     made pursuant to this part or any amendment to such grant, 
     and any dispute involving an administrative cost grant under 
     section 1128 of the Education Amendments of 1978 shall be 
     administered under the provisions governing such exceptions, 
     problems, or disputes in the case of contracts under the 
     Indian Self-Determination and Education Assistance Act of 
     1975. The Equal Access to Justice Act shall apply to 
     administrative appeals filed after September 8, 1988, by 
     grantees regarding a grant under this part, including an 
     administrative cost grant.

     ``SEC. 5210. ROLE OF THE DIRECTOR.

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

     ``SEC. 5211. REGULATIONS.

       ``The Secretary is authorized to issue regulations relating 
     to the discharge of duties specifically assigned to the 
     Secretary by this part. In all other matters relating to the 
     details of planning, development, implementing, and 
     evaluating grants under this part, the Secretary shall not 
     issue regulations. Regulations issued pursuant to this part 
     shall not have the standing of a Federal statute for the 
     purposes of judicial review.

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

       ``(a) In General.--
       ``(1) Trust funds.--Each school receiving grants under this 
     part may establish, at a Federally insured banking and 
     savings institution, a trust fund for the purposes of this 
     section.
       ``(2) Authority of schools regarding trust funds.--The 
     school may provide--
       ``(A) for the deposit into the trust fund, only funds from 
     non-Federal sources, except that the interest on funds 
     received from grants under this part may be used for this 
     purpose;
       ``(B) for the deposit in the account of any earnings on 
     funds deposited in the account; and
       ``(C) for the sole use of the school any noncash, in-kind 
     contributions of real or personal property, such property may 
     at any time be converted to cash.
       ``(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.

     ``SEC. 5213. DEFINITIONS.

       ``For the purposes of 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 of such term in section 1127(f) of 
     the Education Amendments of 1978.
       ``(3) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including Alaska Native Village or regional 
     corporations (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.
       ``(4) 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 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 its public elementary or 
     secondary schools. Such term includes any other public 
     institution or agency having administrative control and 
     direction of a public elementary or secondary school.
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(6) Tribal organization.--(A) The term `tribal 
     organization' means--
       ``(i) the recognized governing body of any Indian tribe; or
       ``(ii) any legally established organization of Indians 
     which--
       ``(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 its activities.
       ``(B) In any case in which a grant is provided under this 
     part to an organization to provide services benefiting more 
     than one Indian tribe, the approval of the governing bodies 
     of Indian tribes representing 80 percent of those students 
     attending the tribally controlled school shall be considered 
     a sufficient tribal authorization for such grant.
       ``(7) Tribally controlled school.--The term `tribally 
     controlled school' means a school operated by a tribe or a 
     tribal organization, enrolling students in kindergarten 
     through grade 12, including preschools, which is not a local 
     educational agency and which is not directly administered by 
     the Bureau of Indian Affairs.''.

  TITLE IV--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      PART A--INNOVATIVE PROGRAMS

     SEC. 401. INNOVATIVE PROGRAMS.

       Title IV is amended to read as follows:

[[Page 8942]]



 ``TITLE IV--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                     ``PART A--INNOVATIVE PROGRAMS

            ``Subpart 1--State and Local Innovative Programs

     ``SEC. 4101. FINDINGS AND STATEMENT OF PURPOSE.

       ``(a) Findings.--Congress finds that this subpart--
       ``(1) provides flexibility to meet local needs;
       ``(2) promotes local and State education reforms;
       ``(3) contributes to the improvement of academic 
     achievement for all students;
       ``(4) provides funding for critical activities; and
       ``(5) provides services for private school students.
       ``(b) Statement of Purpose.--It is the purpose of programs 
     under this subpart--
       ``(1) to provide funding to enable States and local 
     educational agencies to implement promising educational 
     reform programs and school improvement initiatives based on 
     scientifically based research;
       ``(2) to provide a continuing source of innovation and 
     educational improvement, including support for library 
     services and instructional and media materials; and
       ``(3) to meet the educational needs of all students, 
     including at-risk youth.
       ``(c) State and Local Responsibility.--
       ``(1) In general.--The States shall have the basic 
     responsibility for the administration of funds made available 
     under this subpart, but such administration shall be carried 
     out with a minimum of paperwork.
       ``(2) Design and implementation.--Notwithstanding paragraph 
     (1), local educational agencies, school superintendents and 
     principals, and classroom teachers and supporting personnel 
     shall be mainly responsible for the design and implementation 
     of programs assisted under this subpart, because such 
     agencies and individuals have the most direct contact with 
     students and are most likely to be able to design programs to 
     meet the educational needs of students in their own school 
     districts.

                 ``CHAPTER 1--STATE AND LOCAL PROGRAMS

     ``SEC. 4111. ALLOCATION TO STATES.

       ``(a) Reservations.--From the sums appropriated to carry 
     out this subpart for each fiscal year, the Secretary shall 
     reserve not more than 1 percent for payments to outlying 
     areas to be allotted in accordance with their respective 
     needs.
       ``(b) Allocation of remainder.--From the remainder of such 
     sums, the Secretary shall allocate, and make available in 
     accordance with this subpart, to each State an amount which 
     bears the same ratio to the amount of such remainder as the 
     school-age population of the State bears to the school-age 
     population of all States, except that no State shall receive 
     less than an amount equal to \1/2\ of 1 percent of such 
     remainder.

     ``SEC. 4112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Distribution Rule.--
       ``(1) In general.--Subject to paragraph (2), from the sums 
     made available each year to carry out this subpart, the State 
     shall distribute not less than 85 percent to local 
     educational agencies within such State according to the 
     relative enrollments in public and private, nonprofit schools 
     within the jurisdictions of such agencies, adjusted, in 
     accordance with criteria approved by the Secretary, to 
     provide higher per-pupil allocations to local educational 
     agencies that have the greatest numbers or percentages of 
     children whose education imposes a higher than average cost 
     per child, such as--
       ``(A) children living in areas with high concentrations of 
     economically disadvantaged families;
       ``(B) children from economically disadvantaged families; 
     and
       ``(C) children living in sparsely populated areas.
       ``(2) Exception.--100 percent of any amount by which the 
     funds paid to a State under this subpart for a fiscal year 
     exceed the amount of such funds paid to the State for fiscal 
     year 2001 shall be distributed to local educational agencies 
     and used locally for innovative assistance described in 
     section 4131(b).
       ``(3) Limitation on use of funds for administration.--In 
     each fiscal year, a State may use not more than 25 percent of 
     the funds available for State programs under this subpart for 
     State administration under section 4121.
       ``(b) Calculation of Enrollments.--
       ``(1) In general.--The calculation of relative enrollments 
     under subsection (a)(1) shall be on the basis of the total 
     of--
       ``(A) the number of children enrolled in public schools; 
     and
       ``(B) the number of children enrolled in private, nonprofit 
     schools whose parents would like their children to 
     participate in programs or projects assisted under this 
     subpart, for the fiscal year preceding the fiscal year for 
     which the determination is made.
       ``(2) Construction.--Nothing in this subsection shall 
     diminish the responsibility of each local educational agency 
     to contact, on an annual basis, appropriate officials from 
     private nonprofit schools within the areas served by such 
     agencies in order to determine whether such schools desire 
     that their children participate in programs assisted under 
     this chapter.
       ``(3) Adjustments.--
       ``(A) In general.--Relative enrollments calculated under 
     subsection (a)(1) shall be adjusted, in accordance with 
     criteria approved by the Secretary under subparagraph (B), to 
     provide higher per-pupil allocations only to local 
     educational agencies that serve the greatest numbers or 
     percentages of--
       ``(i) children living in areas with high concentrations of 
     economically disadvantaged families;
       ``(ii) children from economically disadvantaged families; 
     or
       ``(iii) children living in sparsely populated areas.
       ``(B) Criteria.--The Secretary shall review criteria 
     submitted by a State for adjusting allocations under 
     paragraph (1) and shall approve such criteria only if the 
     Secretary determines that such criteria are reasonably 
     calculated to produce an adjusted allocation that reflects 
     the relative needs of the State's local educational agencies 
     based on the factors set forth in subparagraph (A).
       ``(c) Payment of Allocations.--
       ``(1) Distribution.--From the funds paid to a State under 
     this subpart for a fiscal year, a State shall distribute to 
     each eligible local educational agency that has submitted an 
     application as required in section 4133 the amount of such 
     local educational agency's allocation, as determined under 
     subsection (a).
       ``(2) Additional funds.--
       ``(A) In general.--Additional funds resulting from higher 
     per-pupil allocations provided to a local educational agency 
     on the basis of adjusted enrollments of children described in 
     subsection (a)(1) may, in the discretion of the local 
     educational agency, be allocated for expenditures to provide 
     services for children enrolled in public and private, 
     nonprofit schools in direct proportion to the number of 
     children described in subsection (a)(1) and enrolled in such 
     schools within the local educational agency.
       ``(B) Election.--In any fiscal year, any local educational 
     agency that elects to allocate such additional funds in the 
     manner described in subparagraph (A) shall allocate all 
     additional funds to schools within the local educational 
     agency in such manner.
       ``(C) Construction.--Subparagraphs (A) and (B) may not be 
     construed to require any school to limit the use of the 
     additional funds described in subparagraph (A) to the 
     provision of services to specific students or categories of 
     students.

                      ``CHAPTER 2--STATE PROGRAMS

     ``SEC. 4121. STATE USE OF FUNDS.

       ``A State may use funds made available for State use under 
     this subpart only for--
       ``(1) State administration of programs under this subpart 
     including--
       ``(A) supervision of the allocation of funds to local 
     educational agencies;
       ``(B) planning, supervision, and processing of State funds; 
     and
       ``(C) monitoring and evaluation of programs and activities 
     under this subpart;
       ``(2) support for planning, designing, and initial 
     implementation of charter schools as described in part B;
       ``(3) statewide education reform and school improvement 
     activities and technical assistance and direct grants to 
     local educational agencies which assist such agencies under 
     section 4131; and
       ``(4) support for arrangements that provide for independent 
     analysis to measure and report on school district 
     achievement.

     ``SEC. 4122. STATE APPLICATIONS.

       ``(a) Application Requirements.--If a State seeks to 
     receive assistance under this subpart, the individual, 
     entity, or agency responsible for public elementary and 
     secondary education policy under the State constitution or 
     State law shall submit to the Secretary an application that--
       ``(1) provides for an annual statewide summary of how 
     assistance under this subpart is contributing toward 
     improving student achievement or improving the quality of 
     education for students;
       ``(2) provides information setting forth the allocation of 
     such funds required to implement section 4142;
       ``(3) provides that the State will keep such records and 
     provide such information to the Secretary as may be required 
     for fiscal audit and program evaluation (consistent with the 
     responsibilities of the Secretary under this section);
       ``(4) provides assurance that, apart from technical and 
     advisory assistance and monitoring compliance with this 
     subpart, the State has not exercised and will not exercise 
     any influence in the decisionmaking processes of local 
     educational agencies as to the expenditure made pursuant to 
     an application under section 4133;
       ``(5) contains assurances that there is compliance with the 
     specific requirements of this subpart; and
       ``(6) provides for timely public notice and public 
     dissemination of the information provided under paragraph 
     (2).
       ``(b) Statewide Summary.--The statewide summary referred to 
     in subsection (a)(1) shall be submitted to the Secretary and 
     shall be derived from the evaluation information submitted by 
     local educational agencies to the State under section 
     4133(a)(2)(H). The format and content of such summary shall 
     be in the discretion of the State and may include statistical 
     measures such as the number of students served by each type 
     of innovative assistance described in section 4131(b), 
     including the number of teachers trained.
       ``(c) Period of Application.--An application filed by the 
     State under subsection (a) shall be for a period not to 
     exceed 3 years, and may be amended annually as may be 
     necessary to reflect changes without filing a new 
     application.
       ``(d) Audit Limitation.--Each local educational agency 
     receiving less than an average

[[Page 8943]]

     of $5,000 under this subpart may not be audited more 
     frequently than once every 5 years.

            ``CHAPTER 3--LOCAL INNOVATIVE EDUCATION PROGRAMS

     ``SEC. 4131. USE OF FUNDS.

       ``(a) In General.--Funds made available to local 
     educational agencies under section 4112 shall be used for 
     innovative assistance programs described in subsection (b).
       ``(b) Innovative Assistance.--The innovative assistance 
     programs referred to in subsection (a) may include--
       ``(1) professional development activities and the hiring of 
     teachers, including activities carried out in accordance with 
     title II, that give teachers, principals, and administrators 
     the knowledge and skills to provide students with the 
     opportunity to meet challenging State or local academic 
     content standards and student achievement standards;
       ``(2) technology related to the implementation of school-
     based reform programs, including professional development to 
     assist teachers, and other school officials, regarding how to 
     use effectively such equipment and software;
       ``(3) programs for the development or acquisition and use 
     of instructional and educational materials, including library 
     services and materials (including media materials), academic 
     assessments, reference materials, computer software and 
     hardware for instructional use, and other curricular 
     materials that are tied to high academic standards, that will 
     be used to improve student achievement, and that are part of 
     an overall education reform program;
       ``(4) promising education reform projects, including 
     effective schools and magnet schools;
       ``(5) programs to improve the academic skills of 
     disadvantaged elementary and secondary school students and to 
     prevent students from dropping out of school;
       ``(6) programs to combat illiteracy;
       ``(7) programs to provide for the educational needs of 
     gifted and talented children;
       ``(8) planning, designing, and initial implementation of 
     charter schools as described in part B;
       ``(9) school improvement programs or activities under 
     sections 1116 and 1117;
       ``(10) community service programs that use qualified school 
     personnel to train and mobilize young people to measurably 
     strengthen their communities through nonviolence, 
     responsibility, compassion, respect, and moral courage;
       ``(11) activities to promote consumer, economic, and 
     personal finance education, such as disseminating and 
     encouraging the best practices for teaching the basic 
     principles of economics and promoting the concept of 
     achieving financial literacy through the teaching of personal 
     financial management skills (including the basic principles 
     involved with earning, spending, saving, and investing);
       ``(12) activities to promote, implement, or expand public 
     school choice;
       ``(13) programs to hire and support school nurses;
       ``(14) expanding and improving school-based mental health 
     services, including early identification of drug use and 
     violence, assessment, and direct individual or group 
     counseling services provided to students, parents, and school 
     personnel by qualified school based mental health services 
     personnel; and
       ``(15) alternative educational programs for those students 
     who have been expelled or suspended from their regular 
     educational setting, including programs to assist students to 
     reenter the regular educational setting upon return from 
     treatment or alternative educational programs.

     ``SEC. 4132. ADMINISTRATIVE AUTHORITY.

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

     ``SEC. 4133. LOCAL APPLICATIONS.

       ``(a) Certification.--
       ``(1) In general.--A local educational agency or a 
     consortium of such agencies may receive an allocation of 
     funds under this subpart for any year for which the agency or 
     consortium submits an application under this section that is 
     certified by the State to meet the requirements of this 
     section.
       ``(2) Contents of Application.--The State shall certify 
     each application that--
       ``(A) describes locally identified needs relative to the 
     purposes of this subpart and to the innovative assistance 
     described in section 4131(b);
       ``(B) based on the needs identified in subparagraph (A), 
     sets forth the planned allocation of funds among innovative 
     assistance programs described in section 4131 and describes 
     the programs, projects, and activities designed to carry out 
     such innovative assistance programs that the local 
     educational agency intends to support;
       ``(C) contains information setting forth the allocation of 
     such funds required to implement section 4142;
       ``(D) describes how assistance under this subpart will 
     contribute to improving student academic achievement;
       ``(E) provides assurances of compliance with the provisions 
     of this subpart, including the participation of children 
     enrolled in private, nonprofit schools in accordance with 
     section 4142;
       ``(F) provides assurance that the local educational agency 
     will keep such records, and provide such information to the 
     State as may be reasonably required for fiscal audit and 
     program evaluation, consistent with the responsibilities of 
     the State under this subpart;
       ``(G) provides in the allocation of funds for the 
     assistance authorized by this subpart, and in the design, 
     planning, and implementation of such programs, for systematic 
     consultation with parents of children attending elementary 
     and secondary schools in the area served by the local 
     educational agency, with teachers and administrative 
     personnel in such schools, and with other groups involved in 
     the implementation of this subpart (such as librarians, 
     school counselors, and other pupil services personnel) as may 
     be considered appropriate by the local educational agency; 
     and
       ``(H) provides assurance that--
       ``(i) programs, services, and activities will be evaluated 
     annually;
       ``(ii) such evaluation will be used to determine and 
     implement appropriate changes in program services and 
     activities for the subsequent year;
       ``(iii) such evaluation will describe how assistance under 
     this subpart contributed toward improving student academic 
     achievement; and
       ``(iv) such evaluation will be submitted to the State in 
     the time and manner requested by the State.
       ``(b) Time Period to Which Application Relates.--An 
     application submitted by a local educational agency under 
     subsection (a) may seek allocations under this part for a 
     period of time not to exceed 3 fiscal years and may be 
     amended annually as may be necessary to reflect changes 
     without the filing of a new application.
       ``(c) Local Educational Agency Discretion.--
       ``(1) In general.--Subject to the limitations and 
     requirements of this subpart, a local educational agency 
     shall have complete discretion in determining how funds made 
     available under this chapter will be divided among programs 
     and activities described in section 4131.
       ``(2) Limitation.--In exercising the discretion described 
     in paragraph (1), a local educational agency shall ensure 
     that expenditures under this chapter carry out the purposes 
     of this subpart and are used to meet the educational needs 
     within the schools of such local educational agency.

                    ``CHAPTER 4--GENERAL PROVISIONS

     ``SEC. 4141. MAINTENANCE OF EFFORT; FEDERAL FUNDS 
                   SUPPLEMENTARY.

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

     ``SEC. 4142. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE 
                   SCHOOLS.

       ``(a) Participation on Equitable Basis.--
       ``(1) In general.--To the extent consistent with the number 
     of children in the school district of a local educational 
     agency which is eligible to receive funds under this subpart 
     or which serves the area in which a program or project 
     assisted under this subpart is located, who are enrolled in 
     private nonprofit elementary and secondary schools, or with 
     respect to instructional or personnel training programs 
     funded by the State from funds made available for State use, 
     such agency, after consultation with appropriate private 
     school officials--
       ``(A) shall provide for the benefit of such children in 
     such schools secular, neutral, and nonideological services, 
     materials, and equipment, including the participation of the 
     teachers of such children (and other educational personnel 
     serving such children) in training programs, and the repair 
     or minor remodeling of public facilities as may be necessary 
     for their provision (consistent with subsection (c) of this 
     section); or
       ``(B) if such services, materials, and equipment are not 
     feasible or necessary in 1 or more such private schools as 
     determined by the local educational agency after consultation 
     with the

[[Page 8944]]

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

     ``SEC. 4143. FEDERAL ADMINISTRATION.

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

     ``SEC. 4144. DEFINITIONS.

       ``In this subpart, the following definitions apply:
       ``(1) School-age population.--The term `school-age 
     population' means the population aged 5 through 17.
       ``(2) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.

     ``SEC. 4145. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart $450,000,000 for fiscal year 2002 and such sums as 
     may be necessary for each of fiscal years 2003 through 2006.

                      ``Subpart 2--Arts Education

     ``SEC. 4151. ASSISTANCE FOR ARTS EDUCATION.

       ``(a) Findings.--The Congress finds that--
       ``(1) every student can benefit from an education in the 
     arts;
       ``(2) a growing body of research indicates that education 
     in the arts may provide cognitive benefits and bolster 
     academic achievement, beginning at an early age and 
     continuing through secondary school;
       ``(3) qualified arts teachers and a sequential curriculum 
     are the basis and core for substantive arts education for 
     students;
       ``(4) the arts should be taught according to rigorous 
     academic standards under arts education programs that provide 
     mechanisms under which educators are accountable to parents, 
     school officials, and the community;
       ``(5) opportunities to participate in the arts have enabled 
     individuals with disabilities of all ages to participate more 
     fully in school and community activities; and
       ``(6) arts education is a valuable part of the elementary 
     and secondary school curriculum.
       ``(b) Purposes.--The purposes of this subpart are to--
       ``(1) support systemic education reform by strengthening 
     arts education as an integral part of the elementary and 
     secondary school curriculum; and
       ``(2) help ensure that all students meet challenging State 
     academic content standards and challenging State student 
     academic achievement standards in the arts.
       ``(c) Authority.--In accordance with this subpart, the 
     Secretary may make grants to, or enter into contracts or 
     cooperative agreements with, eligible entities described in 
     subsection (d).
       ``(d) Eligible Entities.--The Secretary may make assistance 
     available under subsection (c) to each of the following 
     entities:
       ``(1) States.
       ``(2) Local educational agencies.
       ``(3) Institutions of higher education.
       ``(4) Museums or other cultural institutions.
       ``(5) Any other public or private agencies, institutions, 
     and organizations.
       ``(e) Use of Funds.--Assistance made available under this 
     subpart may be used only for--
       ``(1) research on arts education;
       ``(2) planning, developing, acquiring, expanding, 
     improving, or disseminating model school-based arts education 
     programs;
       ``(3) the development of model State arts education 
     assessments based on State academic standards;
       ``(4) the development and implementation of curriculum 
     frameworks for arts education;

[[Page 8945]]

       ``(5) the development of model inservice professional 
     development programs for arts educators and other 
     instructional staff;
       ``(6) supporting collaborative activities with Federal 
     agencies or institutions, arts educators, and organizations 
     representing the arts, including State and local arts 
     agencies involved in arts education;
       ``(7) supporting model projects or programs in the 
     performing arts for children and youth or programs which 
     assure the participation in mainstream settings in arts and 
     education programs of individuals with disabilities through 
     arrangements made with organizations such as the John F. 
     Kennedy Center for the Performing Arts and VSA arts;
       ``(8) supporting model projects or programs to integrate 
     arts education into the regular elementary and secondary 
     school curriculum; or
       ``(9) other activities that further the purposes of this 
     subpart.
       ``(f) Conditions.--As conditions of receiving assistance 
     made available under this subpart, the Secretary shall 
     require each entity receiving such assistance--
       ``(1) to coordinate, to the extent practicable, each 
     project or program carried out with such assistance with 
     appropriate activities of public or private cultural 
     agencies, institutions, and organizations, including museums, 
     arts education associations, libraries, and theaters; and
       ``(2) to use such assistance only to supplement and not to 
     supplant any other assistance or funds made available from 
     non-Federal sources for the activities assisted under this 
     subpart.
       ``(g) Consultation.--In carrying out this part, the 
     Secretary shall consult with Federal agencies or 
     institutions, arts educators (including professional arts 
     education associations), and organizations representing the 
     arts including State and local arts agencies involved in arts 
     education.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subpart such 
     sums as may be necessary for each of fiscal years 2002 
     through 2006.

               ``Subpart 3--Gifted and Talented Children

     ``SEC. 4161. SHORT TITLE.

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

     ``SEC. 4162. FINDINGS AND PURPOSE.

       ``(a) Findings.--Congress finds the following:
       ``(1) While the families and communities of some gifted and 
     talented students can provide private educational programs 
     with appropriately trained staff to supplement public 
     educational offerings, most gifted and talented students, 
     especially those from inner cities, rural communities, or 
     low-income families, must rely on the services and personnel 
     available in public schools. In order to ensure that there 
     are equal educational opportunities for all gifted and 
     talented students in the United States, the public schools 
     should provide gifted and talented education programs carried 
     out by qualified professionals.
       ``(2) Due to the wide dispersal of students who are gifted 
     and talented and the national interest in a well-educated 
     populace, it is the Federal Government that can most 
     effectively and appropriately conduct scientifically based 
     research and development to ensure that there is a national 
     capacity to educate students who are gifted and talented in 
     the 21st century.
       ``(3) Many State and local educational agencies lack the 
     specialized resources and trained personnel necessary 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 the needs of such students.
       ``(4) Because gifted and talented students are generally 
     more advanced academically, are generally able to learn more 
     quickly, and generally study in more depth and complexity 
     than others their age, they require educational opportunities 
     and experiences that are different from those usually 
     available to other students.
       ``(5) A typical elementary school student who is 
     academically gifted and talented has already mastered 35 to 
     50 percent of the content to be learned in several subjects 
     in any school year before that year begins. Without an 
     advanced and challenging curriculum, such a student may lose 
     motivation and develop poor study habits that are difficult 
     to break.
       ``(6) Classes in elementary and secondary schools in the 
     United States consist of students with a wide variety of 
     traits, characteristics, and needs. Although most teachers 
     receive some training to meet the needs of students with 
     limited English proficiency, students with disabilities, and 
     students from diverse cultural and racial backgrounds, few 
     receive training to meet the needs of students who are gifted 
     and talented.
       ``(b) Purpose.--The purpose of this subpart is to initiate 
     a coordinated program of scientifically based research, 
     demonstration projects, innovative strategies, and similar 
     activities designed to build and enhance the ability of 
     elementary and secondary schools nationwide to meet the 
     special educational needs of gifted and talented students.

     ``SEC. 4163. RULE OF CONSTRUCTION.

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

     ``SEC. 4164. AUTHORIZED PROGRAMS.

       ``(a) Establishment of Program.--
       ``(1) In general.--From the sums available to carry out 
     this subpart in any fiscal year, the Secretary (after 
     consultation with experts in the field of the education of 
     gifted and talented students) 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 (25 U.S.C. 450b)) 
     and Native Hawaiian organizations) to assist such agencies, 
     institutions, and organizations in carrying out programs or 
     projects authorized by this subpart that are designed to meet 
     the educational needs of gifted and talented students, 
     including the training of personnel in the education of 
     gifted and talented students and in the use, where 
     appropriate, of gifted and talented services, materials, and 
     methods for all students.
       ``(2) Application.--
       ``(A) In general.--Each entity seeking assistance under 
     this subpart shall submit an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may reasonably require.
       ``(B) Contents.--Each application submitted under this 
     paragraph shall describe how--
       ``(i) the proposed gifted and talented services, materials, 
     and methods can be adapted, if appropriate, for use by all 
     students; and
       ``(ii) the proposed programs can be evaluated.
       ``(b) Use of Funds.--Programs and projects assisted under 
     this section may include each of the following:
       ``(1) Conducting--
       ``(A) scientifically based research on methods and 
     techniques for identifying and teaching gifted and talented 
     students, and for using gifted and talented programs and 
     methods to serve all students; and
       ``(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.
       ``(c) Establishment of National Center.--
       ``(1) In general.--The Secretary (after consultation with 
     experts in the field of the education of gifted and talented 
     students) shall establish a National Center for Research and 
     Development in the Education of Gifted and Talented Children 
     and Youth through grants to or contracts with one or more 
     institutions of higher education or State educational 
     agencies, or a combination or consortium of such institutions 
     and agencies and other public or private agencies and 
     organizations, for the purpose of carrying out activities 
     described in paragraph (1) of subsection (b).
       ``(2) Director.--The National Center established under 
     paragraph (1) shall be headed by a Director. The Secretary 
     may authorize the Director to carry out such functions of the 
     National Center as may be agreed upon through arrangements 
     with institutions of higher education, State or local 
     educational agencies, or other public or private agencies and 
     organizations.
       ``(d) Limitation.--Not more than 30 percent of the funds 
     available in any fiscal year to carry out the programs and 
     projects authorized by this section may be used to conduct 
     activities pursuant to subsection (b)(1) or subsection (c).
       ``(e) Coordination.--Scientifically based research 
     activities supported under this subpart--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by such Office; and
       ``(2) may include collaborative scientifically based 
     research activities which are jointly funded and carried out 
     with such Office.

     ``SEC. 4165. PROGRAM PRIORITIES.

       ``(a) General Priority.--In carrying out this subpart, the 
     Secretary shall give highest priority to programs and 
     projects designed to develop new information that--
       ``(1) improves the capability of schools to plan, conduct, 
     and improve programs to identify and serve gifted and 
     talented students; and
       ``(2) assists schools in the identification of, and 
     provision of services to, gifted and talented students 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 4164(a)(2), the Secretary shall 
     ensure that in each fiscal year not less than 50 percent of 
     the applications approved under such section address the 
     priority described in subsection (a)(2) of this section.

[[Page 8946]]



     ``SEC. 4166. GENERAL PROVISIONS.

       ``(a) Participation of Private School Children and 
     Teachers.--In making grants and entering into contracts under 
     this subpart, the Secretary shall ensure, where appropriate, 
     that provision is made for the equitable participation of 
     students and teachers in private nonprofit elementary and 
     secondary schools, including the participation of teachers 
     and other personnel in professional development programs 
     serving such children.
       ``(b) Review, Dissemination, and Evaluation.--The Secretary 
     shall--
       ``(1) use a peer review process in reviewing applications 
     under this subpart;
       ``(2) ensure that information on the activities and results 
     of programs and projects funded under this subpart is 
     disseminated to appropriate State and local educational 
     agencies and other appropriate organizations, including 
     nonprofit private organizations; and
       ``(3) evaluate the effectiveness of programs under this 
     subpart in accordance with section 8651, 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 the Congress not later than 2 
     years after the date of the enactment of the No Child Left 
     Behind Act of 2001.
       ``(c) Program Operations.--The Secretary shall ensure that 
     the programs under this subpart are administered within the 
     Department by a person who has recognized professional 
     qualifications and experience in the field of the education 
     of gifted and talented students and who shall--
       ``(1) administer and coordinate the programs authorized 
     under this subpart;
       ``(2) serve as a focal point of national leadership and 
     information on the educational needs of gifted and talented 
     students and the availability of educational services and 
     programs designed to meet such needs; and
       ``(3) 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.

     ``SEC. 4167. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for each of fiscal 
     years 2002 through 2006.''.

     SEC. 402. CONTINUATION OF AWARDS.

       Notwithstanding any other provision of this Act, any person 
     or agency that was awarded a grant under part B or D of title 
     X (20 U.S.C. 8031 et seq., 8091 et seq.) prior to the date of 
     the enactment of this Act shall continue to receive funds in 
     accordance with the terms of such award until the date on 
     which the award period terminates under such terms.

                     PART B--PUBLIC CHARTER SCHOOLS

     SEC. 411. PUBLIC CHARTER SCHOOLS.

       Title IV, as amended by section 401, is further amended by 
     adding at the end the following:

                    ``PART B--PUBLIC CHARTER SCHOOLS

     ``SEC. 4201. FINDINGS AND PURPOSE.

       ``(a) Findings.--The Congress finds that--
       ``(1) enhancement of parent and student choices among 
     public schools can assist in promoting comprehensive 
     educational reform and give more students the opportunity to 
     meet challenging State academic content standards and State 
     student academic achievement standards, if sufficiently 
     diverse and high-quality choices, and genuine opportunities 
     to take advantage of such choices, are available to all 
     students;
       ``(2) useful examples of such choices can come from States 
     and communities that experiment with methods of offering 
     teachers and other educators, parents, and other members of 
     the public the opportunity to design and implement new public 
     schools and to transform existing public schools;
       ``(3) charter schools are a mechanism for testing a variety 
     of educational approaches and should, therefore, be exempted 
     from restrictive rules and regulations if the leadership of 
     such schools commits to attaining specific and ambitious 
     educational results for educationally disadvantaged students 
     consistent with challenging State academic content standards 
     and State student academic achievement standards for all 
     students;
       ``(4) charter schools can embody the necessary mixture of 
     enhanced choice, exemption from restrictive regulations, and 
     a focus on learning gains;
       ``(5) charter schools, including charter schools that are 
     schools-within-schools, can help reduce school size, and this 
     reduction can have a significant effect on student 
     achievement;
       ``(6) the Federal Government should test, evaluate, and 
     disseminate information on a variety of charter school models 
     in order to help demonstrate the benefits of this promising 
     educational reform; and
       ``(7) there is a strong documented need for cash-flow 
     assistance to charter schools that are starting up, because 
     State and local operating revenue streams are not immediately 
     available.
       ``(b) Purpose.--It is the purpose of this part to increase 
     national understanding of the charter schools model by--
       ``(1) providing financial assistance for the planning, 
     program design and initial implementation of charter schools;
       ``(2) evaluating the effects of such schools, including the 
     effects on students, student achievement, staff, and parents; 
     and
       ``(3) expanding the number of high-quality charter schools 
     available to students across the Nation.

     ``SEC. 4202. PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary may award grants to State 
     educational agencies having applications approved pursuant to 
     section 4203 to enable such agencies to conduct a charter 
     school grant program in accordance with this part.
       ``(b) Special Rule.--If a State educational agency elects 
     not to participate in the program authorized by this part or 
     does not have an application approved under section 4203, the 
     Secretary may award a grant to an eligible applicant that 
     serves such State and has an application approved pursuant to 
     section 4203(c).
       ``(c) Program Periods.--
       ``(1) Grants to states.--Grants awarded to State 
     educational agencies under this part shall be awarded for a 
     period of not more than 3 years.
       ``(2) Grants to eligible applicants.--Grants awarded by the 
     Secretary to eligible applicants or subgrants awarded by 
     State educational agencies to eligible applicants under this 
     part shall be awarded for a period of not more than 3 years, 
     of which the eligible applicant may use--
       ``(A) not more than 18 months for planning and program 
     design;
       ``(B) not more than 2 years for the initial implementation 
     of a charter school; and
       ``(C) not more than 2 years to carry out dissemination 
     activities described in section 4204(f)(6)(B).
       ``(d) Limitation.--A charter school may not receive--
       ``(1) more than one grant for activities described in 
     subparagraphs (A) and (B) of subsection (c)(2); or
       ``(2) more than one grant for activities under subparagraph 
     (C) of subsection (c)(2).
       ``(e) Priority Treatment..--
       ``(1) In general.--In awarding grants under this part from 
     any funds appropriated under section 4211, the Secretary 
     shall give priority to States to the extent that the States 
     meet the criteria described in paragraph (2) and one or more 
     of the criteria described in subparagraph (A), (B), or (C) of 
     paragraph (3).
       ``(2) Review and evaluation priority criteria.--The 
     criteria referred to in paragraph (1) is that the State 
     provides for periodic review and evaluation by the authorized 
     public chartering agency of each charter school, at least 
     once every 5 years unless required more frequently by State 
     law, to determine whether the charter school is meeting the 
     terms of the school's charter, and is meeting or exceeding 
     the academic performance requirements and goals for charter 
     schools as set forth under State law or the school's charter.
       ``(3) Priority criteria.--The criteria referred to in 
     paragraph (1) are the following:
       ``(A) The State has demonstrated progress, in increasing 
     the number of high quality charter schools that are held 
     accountable in the terms of the schools' charters for meeting 
     clear and measurable objectives for the educational progress 
     of the students attending the schools, in the period prior to 
     the period for which a State educational agency or eligible 
     applicant applies for a grant under this part.
       ``(B) The State--
       ``(i) provides for one authorized public chartering agency 
     that is not a local educational agency, such as a State 
     chartering board, for each individual or entity seeking to 
     operate a charter school pursuant to such State law; or
       ``(ii) in the case of a State in which local educational 
     agencies are the only authorized public chartering agencies, 
     allows for an appeals process for the denial of an 
     application for a charter school.
       ``(C) The State ensures that each charter school has a high 
     degree of autonomy over the charter school's budgets and 
     expenditures.
       ``(f) Amount Criteria.--In determining the amount of a 
     grant to be awarded under this part to a State educational 
     agency, the Secretary shall take into consideration the 
     number of charter schools that are operating, or are approved 
     to open, in the State.

     ``SEC. 4203. APPLICATIONS.

       ``(a) Applications From State Agencies.--Each State 
     educational agency desiring a grant from the Secretary under 
     this part shall submit to the Secretary an application at 
     such time, in such manner, and containing or accompanied by 
     such information as the Secretary may require.
       ``(b) Contents of a State Educational Agency Application.--
     Each application submitted pursuant to subsection (a) shall--
       ``(1) describe the objectives of the State educational 
     agency's charter school grant program and how such objectives 
     will be fulfilled, including steps taken by the State 
     educational agency to inform teachers, parents, and 
     communities of the State educational agency's charter school 
     grant program; and
       ``(2) describe how the State educational agency--
       ``(A) will inform each charter school in the State 
     regarding--
       ``(i) Federal funds that the charter school is eligible to 
     receive; and
       ``(ii) Federal programs in which the charter school may 
     participate;
       ``(B) will ensure that each charter school in the State 
     receives the charter school's commensurate share of Federal 
     education funds that are allocated by formula each year, 
     including during the first year of operation of the charter 
     school; and
       ``(C) will disseminate best or promising practices of 
     charter schools to each local educational agency in the 
     State; and
       ``(3) contain assurances that the State educational agency 
     will require each eligible applicant desiring to receive a 
     subgrant to submit an

[[Page 8947]]

     application to the State educational agency containing--
       ``(A) a description of the educational program to be 
     implemented by the proposed charter school, including--
       ``(i) how the program will enable all students to meet 
     challenging State student academic achievement standards;
       ``(ii) the grade levels or ages of children to be served; 
     and
       ``(iii) the curriculum and instructional practices to be 
     used;
       ``(B) a description of how the charter school will be 
     managed;
       ``(C) a description of--
       ``(i) the objectives of the charter school; and
       ``(ii) the methods by which the charter school will 
     determine its progress toward achieving those objectives;
       ``(D) a description of the administrative relationship 
     between the charter school and the authorized public 
     chartering agency;
       ``(E) a description of how parents and other members of the 
     community will be involved in the planning, program design 
     and implementation of the charter school;
       ``(F) a description of how the authorized public chartering 
     agency will provide for continued operation of the school 
     once the Federal grant has expired, if such agency determines 
     that the school has met the objectives described in 
     subparagraph (C)(i);
       ``(G) a request and justification for waivers of any 
     Federal statutory or regulatory provisions that the applicant 
     believes are necessary for the successful operation of the 
     charter school, and a description of any State or local 
     rules, generally applicable to public schools, that will be 
     waived for, or otherwise not apply to, the school;
       ``(H) a description of how the subgrant funds or grant 
     funds, as appropriate, will be used, including a description 
     of how such funds will be used in conjunction with other 
     Federal programs administered by the Secretary;
       ``(I) a description of how students in the community will 
     be--
       ``(i) informed about the charter school; and
       ``(ii) given an equal opportunity to attend the charter 
     school;
       ``(J) an assurance that the eligible applicant will 
     annually provide the Secretary and the State educational 
     agency such information as may be required to determine if 
     the charter school is making satisfactory progress toward 
     achieving the objectives described in subparagraph (C)(i);
       ``(K) an assurance that the applicant will cooperate with 
     the Secretary and the State educational agency in evaluating 
     the program assisted under this part;
       ``(L) a description of how a charter school that is 
     considered a local educational agency under State law, or a 
     local educational agency in which a charter school is 
     located, will comply with sections 613(a)(5) and 613(e)(1)(B) 
     of the Individuals with Disabilities Education Act;
       ``(M) if the eligible applicant desires to use subgrant 
     funds for dissemination activities under section 
     4202(c)(2)(C), a description of those activities and how 
     those activities will involve charter schools and other 
     public schools, local educational agencies, developers, and 
     potential developers; and
       ``(N) such other information and assurances as the 
     Secretary and the State educational agency may require.
       ``(c) Contents of Eligible Applicant Application.--Each 
     eligible applicant desiring a grant pursuant to section 
     4202(b) shall submit an application to the State educational 
     agency or Secretary, respectively, at such time, in such 
     manner, and accompanied by such information as the State 
     educational agency or Secretary, respectively, may reasonably 
     require.
       ``(d) Contents of Application.--Each application submitted 
     pursuant to subsection (c) shall contain--
       ``(1) the information and assurances described in 
     subparagraphs (A) through (N) of subsection (b)(3), except 
     that for purposes of this subsection subparagraphs (J), (K), 
     and (N) of such subsection shall be applied by striking `and 
     the State educational agency' each place such term appears;
       ``(2) assurances that the State educational agency--
       ``(A) will grant, or will obtain, waivers of State 
     statutory or regulatory requirements; and
       ``(B) will assist each subgrantee in the State in receiving 
     a waiver under section 4204(e); and
       ``(3) assurances that the eligible applicant has provided 
     its authorized public chartering authority timely notice, and 
     a copy, of the application, except that the State educational 
     agency (or the Secretary, in the case of an application 
     submitted to the Secretary) may waive this requirement in the 
     case of an application for a precharter planning grant or 
     subgrant if the authorized public chartering authority to 
     which a charter school proposal will be submitted has not 
     been determined at the time the grant or subgrant application 
     is submitted.

     ``SEC. 4204. ADMINISTRATION.

       ``(a) Selection Criteria for State Educational Agencies.--
     The Secretary shall award grants to State educational 
     agencies under this part on the basis of the quality of the 
     applications submitted under section 4203(b), after taking 
     into consideration such factors as--
       ``(1) the contribution that the charter schools grant 
     program will make to assisting educationally disadvantaged 
     and other students to achieving State academic content 
     standards and State student academic achievement standards 
     and, in general, a State's education improvement plan;
       ``(2) the degree of flexibility afforded by the State 
     educational agency to charter schools under the State's 
     charter schools law;
       ``(3) the ambitiousness of the objectives for the State 
     charter school grant program;
       ``(4) the quality of the strategy for assessing achievement 
     of those objectives;
       ``(5) the likelihood that the charter school grant program 
     will meet those objectives and improve educational results 
     for students;
       ``(6) the number of high quality charter schools created 
     under this part in the State; and
       ``(7) in the case of State educational agencies that 
     propose to use grant funds to support dissemination 
     activities under section 4202(c)(2)(C), the quality of those 
     activities and the likelihood that those activities will 
     improve student academic achievement.
       ``(b) Selection Criteria for Eligible Applicants.--The 
     Secretary shall award grants to eligible applicants under 
     this part on the basis of the quality of the applications 
     submitted under section 4203(c), after taking into 
     consideration such factors as--
       ``(1) the quality of the proposed curriculum and 
     instructional practices;
       ``(2) the degree of flexibility afforded by the State 
     educational agency and, if applicable, the local educational 
     agency to the charter school;
       ``(3) the extent of community support for the application;
       ``(4) the ambitiousness of the objectives for the charter 
     school;
       ``(5) the quality of the strategy for assessing achievement 
     of those objectives;
       ``(6) the likelihood that the charter school will meet 
     those objectives and improve educational results for 
     students; and
       ``(7) in the case of an eligible applicant that proposes to 
     use grant funds to support dissemination activities under 
     section 4202(c)(2)(C), the quality of those activities and 
     the likelihood that those activities will improve student 
     achievement.
       ``(c) Peer Review.--The Secretary, and each State 
     educational agency receiving a grant under this part, shall 
     use a peer review process to review applications for 
     assistance under this part.
       ``(d) Diversity of Projects.--The Secretary and each State 
     educational agency receiving a grant under this part, shall 
     award subgrants under this part in a manner that, to the 
     extent possible, ensures that such grants and subgrants--
       ``(1) are distributed throughout different areas of the 
     Nation and each State, including urban and rural areas; and
       ``(2) will assist charter schools representing a variety of 
     educational approaches, such as approaches designed to reduce 
     school size.
       ``(e) Waivers.--The Secretary may waive any statutory or 
     regulatory requirement over which the Secretary exercises 
     administrative authority except any such requirement relating 
     to the elements of a charter school described in section 
     4210(1), if--
       ``(1) the waiver is requested in an approved application 
     under this part; and
       ``(2) the Secretary determines that granting such a waiver 
     will promote the purpose of this part.
       ``(f) Use of Funds.--
       ``(1) State educational agencies.--Each State educational 
     agency receiving a grant under this part shall use such grant 
     funds to award subgrants to one or more eligible applicants 
     in the State to enable such applicant to plan and implement a 
     charter school in accordance with this part, except that the 
     State educational agency may reserve not more than 10 percent 
     of the grant funds to support dissemination activities 
     described in paragraph (6).
       ``(2) Eligible applicants.--Each eligible applicant 
     receiving funds from the Secretary or a State educational 
     agency shall use such funds to plan and implement a charter 
     school, or to disseminate information about the charter 
     school and successful practices in the charter school, in 
     accordance with this part.
       ``(3) Allowable activities.--An eligible applicant 
     receiving a grant or subgrant under this part may use the 
     grant or subgrant funds only for--
       ``(A) post-award planning and design of the educational 
     program, which may include--
       ``(i) refinement of the desired educational results and of 
     the methods for measuring progress toward achieving those 
     results; and
       ``(ii) professional development of teachers and other staff 
     who will work in the charter school; and
       ``(B) initial implementation of the charter school, which 
     may include--
       ``(i) informing the community about the school;
       ``(ii) acquiring necessary equipment and educational 
     materials and supplies;
       ``(iii) acquiring or developing curriculum materials; and
       ``(iv) other initial operational costs that cannot be met 
     from State or local sources.
       ``(4) Administrative expenses.--Each State educational 
     agency receiving a grant pursuant to this part may reserve 
     not more than 5 percent of such grant funds for 
     administrative expenses associated with the charter school 
     grant program assisted under this part. A local educational 
     agency may not deduct funds for administrative fees or 
     expenses from a subgrant awarded to an eligible applicant.
       ``(5) Revolving loan funds.--Each State educational agency 
     receiving a grant pursuant to this part may reserve not more 
     than 10 percent of the grant amount for the establishment of 
     a revolving loan fund. Such fund may be

[[Page 8948]]

     used to make loans to eligible applicants that have received 
     a subgrant under this part, under such terms as may be 
     determined by the State educational agency, for the initial 
     operation of the charter school grant program of such 
     recipient until such time as the recipient begins receiving 
     ongoing operational support from State or local financing 
     sources.
       ``(6) Dissemination.--
       ``(A) In general.--A charter school may apply for funds 
     under this part, whether or not the charter school has 
     applied for or received funds under this part for planning, 
     program design, or implementation, to carry out the 
     activities described in subparagraph (B) if the charter 
     school has been in operation for at least 3 consecutive years 
     and has demonstrated overall success, including--
       ``(i) substantial progress in improving student academic 
     achievement;
       ``(ii) high levels of parent satisfaction; and
       ``(iii) the management and leadership necessary to overcome 
     initial start-up problems and establish a thriving, 
     financially viable charter school.
       ``(B) Activities.--A charter school described in 
     subparagraph (A) may use funds reserved under paragraph (1) 
     to assist other schools in adapting the charter school's 
     program (or certain aspects of the charter school's program), 
     or to disseminate information about the charter school, 
     through such activities as--
       ``(i) assisting other individuals with the planning and 
     start-up of one or more new public schools, including charter 
     schools, that are independent of the assisting charter school 
     and the assisting charter school's developers, and that agree 
     to be held to at least as high a level of accountability as 
     the assisting charter school;
       ``(ii) developing partnerships with other public schools, 
     including charter schools, designed to improve student 
     academic achievement in each of the schools participating in 
     the partnership;
       ``(iii) developing curriculum materials, academic 
     assessments, and other materials that promote increased 
     student academic achievement and are based on successful 
     practices within the assisting charter school; and
       ``(iv) conducting evaluations and developing materials that 
     document the successful practices of the assisting charter 
     school and that are designed to improve student academic 
     achievement in other schools.
       ``(g) Tribally Controlled Schools.--Each State that 
     receives a grant under this part and designates a tribally 
     controlled school as a charter school shall not consider 
     payments to a school under the Tribally Controlled Schools 
     Act of 1988 (25 U.S.C. 2507) in determining--
       ``(1) the eligibility of the school to receive any other 
     Federal, State, or local aid; or
       ``(2) the amount of such aid.

     ``SEC. 4205. NATIONAL ACTIVITIES.

       ``(a) In General.--The Secretary shall reserve for each 
     fiscal year the greater of 5 percent or $5,000,000 of the 
     amount appropriated to carry out this part, except that in no 
     fiscal year shall the total amount so reserved exceed 
     $8,000,000, to carry out the following activities:
       ``(1) To provide charter schools, either directly or 
     through State educational agencies, with--
       ``(A) information regarding--
       ``(i) Federal funds that charter schools are eligible to 
     receive; and
       ``(ii) other Federal programs in which charter schools may 
     participate; and
       ``(B) assistance in applying for Federal education funds 
     that are allocated by formula, including assistance with 
     filing deadlines and submission of applications.
       ``(2) To provide for other evaluations or studies that 
     include the evaluation of the impact of charter schools on 
     student academic achievement, including information 
     regarding--
       ``(A) students attending charter schools reported on the 
     basis of race, age, disability, gender, limited English 
     proficiency, and previous enrollment in public school; and
       ``(B) the professional qualifications of teachers within a 
     charter school and the turnover of the teaching force.
       ``(3) To provide--
       ``(A) information to applicants for assistance under this 
     part;
       ``(B) assistance to applicants for assistance under this 
     part with the preparation of applications under section 4203;
       ``(C) assistance in the planning and startup of charter 
     schools;
       ``(D) training and technical assistance to existing charter 
     schools; and
       ``(E) for the dissemination to other public schools of best 
     or promising practices in charter schools.
       ``(4) To provide (including through the use of one or more 
     contracts that use a competitive bidding process) for the 
     collection of information regarding the financial resources 
     available to charter schools, including access to private 
     capital, and to widely disseminate to charter schools any 
     such relevant information and model descriptions of 
     successful programs.
       ``(b) Construction.--Nothing in this section shall be 
     construed to require charter schools to collect any data 
     described in subsection (a).

     ``SEC. 4206. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND 
                   FOR SUCCESSIVE ENROLLMENT EXPANSIONS.

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

     ``SEC. 4207. SOLICITATION OF INPUT FROM CHARTER SCHOOL 
                   OPERATORS.

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

     ``SEC. 4208. RECORDS TRANSFER.

       ``State educational agencies and local educational 
     agencies, to the extent practicable, shall ensure that a 
     student's records and, if applicable, a student's 
     individualized education program as defined in section 
     602(11) of the Individuals with Disabilities Education Act 
     (20 U.S.C. 1401(11)), are transferred to a charter school 
     upon the transfer of the student to the charter school, to 
     another public school upon the transfer of the student from a 
     charter school to another public school, and to a private 
     school upon the transfer of the student from a charter or 
     public school to the private school (with the written consent 
     of a parent of the student), in accordance with applicable 
     State law.

     ``SEC. 4209. PAPERWORK REDUCTION.

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

     ``SEC. 4210. DEFINITIONS.

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

[[Page 8949]]

     private nonprofit organization), which may include teachers, 
     administrators and other school staff, parents, or other 
     members of the local community in which a charter school 
     project will be carried out.
       ``(3) The term `eligible applicant' means a developer that 
     has--
       ``(A) applied to an authorized public chartering authority; 
     and
       ``(B) provided adequate and timely notice to that authority 
     under section 4203(d)(3).
       ``(4) The term `authorized public chartering agency' means 
     a State educational agency, local educational agency, or 
     other public entity that has the authority pursuant to State 
     law and approved by the Secretary to authorize or approve a 
     charter school.

     ``SEC. 4211. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated $225,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 4 
     succeeding fiscal years.''.

     SEC. 412. CONTINUATION OF AWARDS.

       Notwithstanding any other provision of this Act, any person 
     or agency that was awarded a grant or subgrant under subpart 
     1 of part C of title X (20 U.S.C. 8061 et seq.) prior to the 
     date of the enactment of this Act shall continue to receive 
     funds in accordance with the terms of such award until the 
     date on which the award period terminates under such terms.

      PART C--MAGNET SCHOOLS ASSISTANCE; WOMEN'S EDUCATIONAL EQUITY

     SEC. 421. MAGNET SCHOOLS ASSISTANCE.

       Title IV, as amended by sections 401 and 411, is further 
     amended by adding at the end the following:

    ``PART C--MAGNET SCHOOLS ASSISTANCE; WOMEN'S EDUCATIONAL EQUITY

                 ``Subpart 1--Magnet Schools Assistance

     ``SEC. 4301. FINDINGS.

       ``The Congress finds as follows:
       ``(1) Magnet schools are a significant part of the Nation's 
     efforts to achieve voluntary desegregation in our schools.
       ``(2) The use of magnet schools has increased dramatically 
     since the inception of the magnet schools assistance program 
     under this Act, with approximately 2,000,000 students 
     nationwide attending such schools, of whom more than 65 
     percent are non-white.
       ``(3) Magnet schools offer a wide range of distinctive 
     programs that have served as models for school improvement 
     efforts.
       ``(4) It is in the best interests of the United States--
       ``(A) to continue the Federal Government's support of local 
     educational agencies that are implementing court-ordered 
     desegregation plans and local educational agencies that are 
     voluntarily seeking to foster meaningful interaction among 
     students of different racial and ethnic backgrounds, 
     beginning at the earliest stage of such students' education;
       ``(B) to ensure that all students have equitable access to 
     a quality education that will prepare them to function well 
     in a highly competitive economy;
       ``(C) to maximize the ability of local educational agencies 
     to plan, develop, implement, and continue effective and 
     innovative magnet schools that contribute to State and local 
     systemic reform; and
       ``(D) to ensure that grant recipients provide adequate data 
     that demonstrate an ability to improve student academic 
     achievement.

     ``SEC. 4302. STATEMENT OF PURPOSE.

       ``The purpose of this part is to assist in the 
     desegregation of schools served by local educational agencies 
     by providing financial assistance to eligible local 
     educational agencies for--
       ``(1) the elimination, reduction, or prevention of minority 
     group isolation in elementary and secondary schools with 
     substantial proportions of minority students;
       ``(2) the development and implementation of magnet school 
     projects that will assist local educational agencies in 
     achieving systemic reforms and providing all students the 
     opportunity to meet challenging State academic content 
     standards and student academic achievement standards;
       ``(3) the development and design of innovative educational 
     methods and practices that promote diversity and increase 
     choices in public elementary and secondary schools and 
     educational programs; and
       ``(4) courses of instruction within magnet schools that 
     will substantially strengthen the knowledge of academic 
     subjects and the grasp of tangible and marketable vocational 
     and technical skills of students attending such schools.

     ``SEC. 4303. PROGRAM AUTHORIZED.

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

     ``SEC. 4304. DEFINITION.

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

     ``SEC. 4305. ELIGIBILITY.

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

     ``SEC. 4306. APPLICATIONS AND REQUIREMENTS.

       ``(a) Applications.--An eligible local educational agency, 
     or consortium of such agencies, desiring to receive 
     assistance under this part shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information and assurances as the Secretary may reasonably 
     require.
       ``(b) Information and Assurances.--Each such application 
     shall include--
       ``(1) a description of--
       ``(A) how assistance made available under this part will be 
     used to promote desegregation, including how the proposed 
     magnet school project will increase interaction among 
     students of different social, economic, ethnic, and racial 
     backgrounds;
       ``(B) the manner and extent to which the magnet school 
     project will increase student academic achievement in the 
     instructional area or areas offered by the school;
       ``(C) how an applicant will continue the magnet school 
     project after assistance under this part is no longer 
     available, including, if applicable, an explanation of why 
     magnet schools established or supported by the applicant with 
     funds under this part cannot be continued without the use of 
     funds under this part;
       ``(D) how funds under this part will be used to improve 
     student academic performance for all students attending the 
     magnet schools; and
       ``(E) the criteria to be used in selecting students to 
     attend the proposed magnet school projects; and
       ``(2) assurances that the applicant will--
       ``(A) use funds under this part for the purpose specified 
     in section 4302;
       ``(B) employ fully qualified teachers in the courses of 
     instruction assisted under this part;
       ``(C) not engage in discrimination based on race, religion, 
     color, national origin, sex, or disability in--
       ``(i) the hiring, promotion, or assignment of employees of 
     the agency or other personnel for whom the agency has any 
     administrative responsibility;
       ``(ii) the assignment of students to schools, or to courses 
     of instruction within the school, of such agency, except to 
     carry out the approved plan; and
       ``(iii) designing or operating extracurricular activities 
     for students;
       ``(D) carry out a high-quality education program that will 
     encourage greater parental decisionmaking and involvement; 
     and
       ``(E) give students residing in the local attendance area 
     of the proposed magnet school projects equitable 
     consideration for placement in those projects.

     ``SEC. 4307. PRIORITY.

       ``In approving applications under this part, the Secretary 
     shall give priority to applicants that--
       ``(1) demonstrate the greatest need for assistance, based 
     on the expense or difficulty of effectively carrying out an 
     approved desegregation plan and the projects for which 
     assistance is sought;
       ``(2) propose to carry out new magnet school projects, or 
     significantly revise existing magnet school projects; and
       ``(3) propose to select students to attend magnet school 
     projects by methods such as lottery, rather than through 
     academic examination.

     ``SEC. 4308. USE OF FUNDS.

       ``(a) In General.--Grant funds made available under this 
     part may be used by an eligible local educational agency or 
     consortium of such agencies--
       ``(1) for planning and promotional activities directly 
     related to the development, expansion, continuation, or 
     enhancement of academic programs and services offered at 
     magnet schools;
       ``(2) for the acquisition of books, materials, and 
     equipment, including computers and the maintenance and 
     operation thereof, necessary for the conduct of programs in 
     magnet schools;
       ``(3) for the payment, or subsidization of the 
     compensation, of elementary and secondary school teachers who 
     are fully qualified, and instructional staff where 
     applicable, who are necessary for the conduct of programs in 
     magnet schools;
       ``(4) with respect to a magnet school program offered to 
     less than the entire student population of a school, for 
     instructional activities that--
       ``(A) are designed to make available the special curriculum 
     that is offered by the magnet school project to students who 
     are enrolled in the school but who are not enrolled in the 
     magnet school program; and
       ``(B) further the purpose of this part; and
       ``(5) for activities, which may include professional 
     development, that will build the recipient's capacity to 
     operate magnet school programs once the grant period has 
     ended.

[[Page 8950]]

       ``(b) Special Rule.--Grant funds under this part may be 
     used in accordance with paragraphs (2) and (3) of subsection 
     (a) only if the activities described in such paragraphs are 
     directly related to improving the students' academic 
     performance based on the State's challenging academic content 
     standards and student academic achievement standards or 
     directly related to improving the students' reading skills or 
     knowledge of mathematics, science, history, geography, 
     English, foreign languages, art, or music, or to improving 
     vocational and technical skills.

     ``SEC. 4309. PROHIBITIONS.

       ``(a) Transportation.--Grants under this part may not be 
     used for transportation or any activity that does not augment 
     academic improvement.
       ``(b) Planning.--A local educational agency shall not 
     expend funds under this part after the third year that such 
     agency receives funds under this part for such project.

     ``SEC. 4310. LIMITATIONS.

       ``(a) Duration of Awards.--A grant under this part shall be 
     awarded for a period that shall not exceed three fiscal 
     years.
       ``(b) Limitation on Planning Funds.--A local educational 
     agency may expend for planning not more than 50 percent of 
     the funds received under this part for the first year of the 
     project, 15 percent of such funds for the second such year, 
     and 10 percent of such funds for the third such year.
       ``(c) Amount.--No local educational agency or consortium 
     awarded a grant under this part shall receive more than 
     $4,000,000 under this part in any one fiscal year.
       ``(d) Timing.--To the extent practicable, the Secretary 
     shall award grants for any fiscal year under this part not 
     later than July 1 of the applicable fiscal year.

     ``SEC. 4311. EVALUATIONS.

       ``(a) Reservation.--The Secretary may reserve not more than 
     2 percent of the funds appropriated under section 4312(a) for 
     any fiscal year to carry out evaluations, technical 
     assistance, and dissemination projects with respect to magnet 
     school projects and programs assisted under this part.
       ``(b) Contents.--Each evaluation described in subsection 
     (a), at a minimum, shall address--
       ``(1) how and the extent to which magnet school programs 
     lead to educational quality and improvement;
       ``(2) the extent to which magnet school programs enhance 
     student access to quality education;
       ``(3) the extent to which magnet school programs lead to 
     the elimination, reduction, or prevention of minority group 
     isolation in elementary and secondary schools with 
     substantial proportions of minority students; and
       ``(4) the extent to which magnet school programs differ 
     from other school programs in terms of the organizational 
     characteristics and resource allocations of such magnet 
     school programs.

     ``SEC. 4312. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

       ``(a) Authorization.--For the purpose of carrying out this 
     part, there are authorized to be appropriated $125,000,000 
     for fiscal year 2002 and such sums as may be necessary for 
     each of the 4 succeeding fiscal years.
       ``(b) Availability of Funds for Grants to Agencies Not 
     Previously Assisted.--In any fiscal year for which the amount 
     appropriated pursuant to subsection (a) exceeds $75,000,000, 
     the Secretary shall give priority to using such amounts in 
     excess of $75,000,000 to award grants to local educational 
     agencies or consortia of such agencies that did not receive a 
     grant under this part in the preceding fiscal year.''.

     SEC. 422. WOMEN'S EDUCATIONAL EQUITY.

       (a) Transfer and Redesignation.--Part B of title V (20 
     U.S.C. 7231 et seq.) is transferred and redesignated as 
     subpart 2 of part C of title IV. Sections 5201 through 5208 
     are redesignated as sections 4321 through 4328, respectively.
       (b) Report.--Section 4326 (as so redesignated) is amended 
     by striking ``January 1, 1999,'' and inserting ``January 1, 
     2005,''.
       (c) Evaluation and Dissemination.--Section 4327(a) (as so 
     redesignated) is amended--
       (1) by striking ``14701,'' and inserting ``8651,''; and
       (2) by striking ``January 1, 1998.'' and inserting 
     ``January 1, 2004.''.
       (d) Reauthorization.--Section 4328 (as so redesignated) is 
     amended by striking ``$5,000,000 for fiscal year 1995 and 
     such sums as may be necessary for each of the four succeeding 
     fiscal years,'' and inserting ``$3,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the four 
     succeeding fiscal years,''.
       (e) Other Conforming Amendments.--
       (1) Short title.--Section 4321(a) (as so redesignated) is 
     amended to read as follows:
       ``(a) Short Title.--This subpart may be cited as the 
     `Women's Educational Equity Act of 2001'.''.
       (2) References.--Subpart 2 of part C of title IV (as so 
     redesignated) is amended--
       (A) by striking ``this part'' each place such term appears 
     and inserting ``this subpart''; and
       (B) by striking ``5203(b)'' each place such term appears 
     and inserting ``4423(b)''.

     SEC. 423. CONTINUATION OF AWARDS.

       Notwithstanding any other provision of this Act, any person 
     or agency that was awarded a grant under part A of title V 
     (20 U.S.C. 7201 et seq.), or a grant, contract, or 
     cooperative agreement under part B of such title (20 U.S.C. 
     7231 et seq.), prior to the date of the enactment of this Act 
     shall continue to receive funds in accordance with the terms 
     of such award until the date on which the award period 
     terminates under such terms.

                     TITLE V--21ST CENTURY SCHOOLS

     SEC. 501. SAFE SCHOOLS.

       Title V, except part B (which is transferred and 
     redesignated as subpart 2 of part C of title IV by section 
     422(a) of this Act) is amended to read as follows:

                    ``TITLE V--21ST CENTURY SCHOOLS

    ``PART A--SUPPORTING VIOLENCE AND DRUG PREVENTION AND ACADEMIC 
                               ENRICHMENT

     ``SEC. 5001. SHORT TITLE.

       ``This part may be cited as the `21st Century Schools Act 
     of 2001'.

     ``SEC. 5002. PURPOSE.

       ``The purpose of this part is to support programs that 
     prevent the use of illegal drugs, prevent violence, provide 
     quality before and after school activities and supervision 
     for school age youth, involve parents and communities, and 
     are coordinated with related Federal, State, and community 
     efforts and resources to foster a safe and drug-free learning 
     environment in which students increase their academic 
     achievement, through the provision of Federal assistance to--
       ``(1) States for grants to local educational agencies and 
     consortia of such agencies to establish, operate, and improve 
     local programs of drug and violence prevention in elementary 
     and secondary schools;
       ``(2) States for grants to local educational agencies, 
     community-based organizations, and other public entities and 
     private organizations, for before and after school programs 
     for youth; and
       ``(3) States and public and private nonprofit and for-
     profit organizations to conduct training, demonstrations, and 
     evaluations.

     ``SEC. 5003. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated--
       ``(1) $475,000,000 for fiscal year 2002, and such sums as 
     may be necessary for each of the 4 succeeding fiscal years, 
     for State grants under subpart 1;
       ``(2) $900,000,000 for fiscal year 2002, and such sums as 
     may be necessary for each of the four succeeding fiscal 
     years, for State grants under subpart 2; and
       ``(3) $60,000,000 for fiscal year 2002, and for each of the 
     4 succeeding fiscal years, for national programs under 
     subpart 3.

                       ``Subpart 1--Safe Schools

     ``SEC. 5111. RESERVATIONS AND ALLOTMENTS.

       ``(a) Reservations.--From the amount made available under 
     section 5003(1) to carry out this subpart for each fiscal 
     year, the Secretary--
       ``(1) shall reserve 1 percent or $4,750,000 (whichever is 
     greater) of such amount for grants to Guam, American Samoa, 
     the United States Virgin Islands, and the Commonwealth of the 
     Northern Mariana Islands, to be allotted in accordance with 
     the Secretary's determination of their respective needs and 
     to carry out programs described in this subpart;
       ``(2) shall reserve 1 percent or $4,750,000 (whichever is 
     greater) of such amount for the Secretary of the Interior to 
     carry out programs described in this subpart for Indian 
     youth;
       ``(3) shall reserve 0.2 percent of such amount for Native 
     Hawaiians to be used to carry out programs described in this 
     subpart;
       ``(4) notwithstanding section 3 of the Leave No Child 
     Behind Act of 2001, shall reserve an amount necessary to make 
     continuation grants to grantees under part I of title X of 
     this Act (under the terms of those grants), as such part 
     existed on the day before the effective date of the Leave No 
     Child Behind Act of 2001; and
       ``(5) notwithstanding section 3 of the Leave No Child 
     Behind Act of 2001, shall reserve an amount necessary to make 
     continuation grants to grantees under the Safe Schools/
     Healthy Students initiative (under the terms of those 
     grants), as it existed on the day before the date of the 
     effective date of the Leave No Child Behind Act of 2001.
       ``(b) State Allotments.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary, for each fiscal year, shall allocate among the 
     States--
       ``(A) one-half of the remainder not reserved under 
     subsection (a) according to the ratio between the school-aged 
     population of each State and the school-aged population of 
     all the States; and
       ``(B) one-half of such remainder according to the ratio 
     between the amount each State received under part A of title 
     I for the preceding year and the sum of such amounts received 
     by all the States.
       ``(2) Minimum.--For any fiscal year, no State shall be 
     allotted under this subsection an amount that is less than 
     one-half of 1 percent of the total amount allotted to all the 
     States under this subsection.
       ``(c) Reallotment of Unused Funds.--If any State does not 
     apply for an allotment under this subpart for a fiscal year, 
     the Secretary shall reallot the amount of the State's 
     allotment to the remaining States in accordance with this 
     section.
       ``(d) Definition.--For the purposes of this section, the 
     term `Native Hawaiian' means any individual any of whose 
     ancestors were natives, prior to 1778, of the area which now 
     comprises the State of Hawaii.

     ``SEC. 5112. RESERVATION OF STATE FUNDS FOR SAFE SCHOOLS.

       ``(a) State Reservation for the Governor.--
       ``(1) In general.--The chief executive officer of a State 
     may reserve not more than 20 percent

[[Page 8951]]

     of the total amount allocated to a State under section 
     5111(b) for each fiscal year to award competitive grants and 
     contracts to local educational agencies, community-based 
     organizations, and other public entities and private 
     organizations for programs or activities to support community 
     efforts that complement activities of local educational 
     agencies described in section 5115. Such officer shall award 
     grants based on--
       ``(A) the quality of the activity or program proposed; and
       ``(B) how the program or activity is aligned with the 
     appropriate principles of effectiveness described in section 
     5114(a).
       ``(2) Special consideration.--In awarding funds under 
     subparagraph (A), a chief executive officer shall give 
     special consideration to grantees that pursue a comprehensive 
     approach to drug and violence prevention by providing and 
     incorporating mental health services in their programs.
       ``(3) Administrative costs.--The chief executive officer of 
     a State may use not more than 1 percent of the amount 
     described in subparagraph (A) for the administrative costs 
     incurred in carrying out the duties of such officer under 
     this section.
       ``(b) State Funds.--
       ``(1) Additional reservations.--Each State shall reserve an 
     amount equal to the total amount allotted to a State under 
     section 5111(b), less the amount reserved under subsection 
     (a) and paragraphs (2) and (3) of this subsection, for each 
     fiscal year for its local educational agencies.
       ``(2) State activities.--A State may use not more than 4 
     percent of the total amount available under subsection (a) 
     for State activities described in subsection (c).
       ``(3) State administration.--A State may use not more than 
     1 percent of the amount made available under subsection (a) 
     for the administrative costs of carrying out its 
     responsibilities under this subpart.
       ``(c) Activities.--
       ``(1) In general.--A State shall use a portion of the funds 
     described in subsection (b)(2), either directly, or through 
     grants and contracts, to plan, develop, and implement 
     capacity building, technical assistance, evaluation, program 
     improvement services, and coordination activities for local 
     educational agencies, community-based organizations, other 
     public entities, and private organizations that are designed 
     to support the implementation of programs and activities 
     under this subpart.
       ``(2) Data collection.--
       ``(A) Statistics.--A State may use a portion of the funds, 
     not to exceed 20 percent, described in subsection (b)(2), 
     either directly or through grants and contracts, to establish 
     and implement a statewide system of collecting data regarding 
     statistics on--
       ``(i) truancy rates; and
       ``(ii) the frequency, seriousness, and incidence of 
     violence and drug related offenses resulting in suspensions 
     and expulsion in elementary and secondary schools in States.
       ``(B) Compilation of statistics.--The statistics shall be 
     compiled in accordance with definitions as determined in the 
     State criminal code, but shall not identify victims of crimes 
     or persons accused of crimes. The collected data shall 
     include, incident reports by school officials, anonymous 
     student surveys, and anonymous teacher surveys.
       ``(C) Reporting.--Such data and statistics shall be 
     reported to the public and shall be reported on a school-by-
     school basis.
       ``(D) Limitation.--Nothing in this subsection shall be 
     construed to authorize the Secretary to require particular 
     policies, procedures, or practices with respect to crimes on 
     school property or school security.
       ``(3) Safe schools.--The State shall establish and 
     implement a statewide policy requiring that students 
     attending persistently dangerous public elementary and 
     secondary schools, as determined by the State, or who become 
     a victim of a violent criminal offense, as defined by State 
     law, while in or on the grounds of a public elementary school 
     or secondary school that the student attends, be allowed to 
     attend a safe public elementary or secondary school, within 
     the local educational agency, including a public charter 
     school and allowing payment of reasonable transportation 
     costs and tuition costs for such students.

     ``SEC. 5113. STATE APPLICATION.

       ``(a) In General.--In order to receive an allotment under 
     section 5111 for any fiscal year, a State shall submit to the 
     Secretary, at such time as the Secretary may require, an 
     application that--
       ``(1) describes the activities to be funded under section 
     5112(c);
       ``(2) describes how activities funded under this subpart 
     will support State academic achievement standards in 
     accordance with section 1111;
       ``(3) describes how funds under this subpart will be 
     coordinated with programs under this Act, and other programs, 
     as appropriate, in accordance with the provisions of section 
     8306;
       ``(4) provides an assurance that the application was 
     developed in consultation and coordination with appropriate 
     State officials and others, including the chief executive 
     officer, the chief State school officer, the head of the 
     State alcohol and drug abuse agency, the heads of the State 
     health and mental health agencies, the head of the State 
     criminal justice planning agency, the head of the State child 
     welfare agency, the head of the State board of education, or 
     their designees, and representatives of parents, students, 
     and community-based organizations;
       ``(5) provides an assurance that the State will cooperate 
     with, and assist, the Secretary in conducting data collection 
     as required by section 5116(a);
       ``(6) provides an assurance that the local educational 
     agencies in the State will comply with the provisions of 
     section 8503 pertaining to the participation of private 
     school children and teachers in the programs and activities 
     under this subpart;
       ``(7) provides an assurance that funds under this subpart 
     will be used to increase the level of State, local, and other 
     non-Federal funds that would, in the absence of funds under 
     this subpart, be made available for programs and activities 
     authorized under this subpart, and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(8) describes the results of the State's needs and 
     resources assessment for violence and illegal drug use 
     prevention which shall be based on the results of on-going 
     evaluation (which may include data on the incidence and 
     prevalence, age of onset, perception of health risk and 
     perception of social disapproval of violence and illegal drug 
     use by youth in schools and communities and the prevalence of 
     risk and protective factors or other scientifically based 
     research variables in the school and community);
       ``(9)(A) provides a statement of the State's performance 
     measures for drug and violence prevention programs and 
     activities to be funded under this part that shall be 
     developed in consultation between the State and local 
     officials and that consist of--
       ``(i) performance indicators for drug and violence 
     prevention programs and activities; and
       ``(ii) levels of performance for each performance 
     indicator;
       ``(B) a description of the procedures the State will use 
     for assessing and publicly reporting progress toward meeting 
     those performance measures; and
       ``(C) a plan for monitoring the implementation of, and 
     providing technical assistance regarding, the activities and 
     programs conducted by local educational agencies, community-
     based organizations, other public entities, and private 
     organizations under this subpart;
       ``(10) provides an assurance that the State will consult 
     with a representative sample of local educational agencies in 
     the development of the definition of `persistently dangerous 
     school' for the purposes of section 5112(c)(3);
       ``(11) provides a description of how the State defines 
     `persistently dangerous school' for the purposes of section 
     5112(c)(3); and
       ``(12) provides an assurance that the State application 
     will be available for public review after submission of the 
     application.
       ``(b) General Approval.--A State application submitted 
     pursuant to subsection (a) shall be deemed to be approved by 
     the Secretary unless the Secretary makes a written 
     determination, prior to the expiration of the 90-day period 
     beginning on the date that the Secretary receives the 
     application, that the application is in violation of this 
     subpart.
       ``(c) Disapproval.--The Secretary shall not finally 
     disapprove a State application, except after giving the State 
     notice and opportunity for a hearing.

     ``SEC. 5114. FORMULA GRANT PROGRAM.

       ``(a) In General.--
       ``(1) Funds to local educational agencies.--A State shall 
     provide the amount made available to the State under this 
     subpart, less the amounts reserved under sections 5111 and 
     5112 to local educational agencies for drug and violence 
     prevention and education as follows:
       ``(A) 60 percent of such amount based on the relative 
     amount such agencies received under part A of title I for the 
     preceding fiscal year.
       ``(B) 40 percent of such amount to local educational 
     agencies based on the relative enrollments in public and 
     private nonprofit elementary and secondary schools within the 
     boundaries of such agencies.
       ``(2) Administrative costs.--Of the amount received under 
     paragraph (1), a local educational agency may use not more 
     than 1 percent for the administrative costs of carrying out 
     its responsibilities under this subpart.
       ``(3) Return of funds to state; reallocation.--
       ``(A) Return.--Except as provided in subparagraph (B), upon 
     the expiration of the 1-year period beginning on the date 
     that a local educational agency receives its allocation--
       ``(i) such agency shall return to the State any funds from 
     such allocation that remain unobligated; and
       ``(ii) the State shall reallocate any such amount to local 
     educational agencies that have submitted plans for using such 
     amount for programs or activities on a timely basis.
       ``(B) Carryover.--In any fiscal year, a local educational 
     agency, may retain for obligation in the succeeding fiscal 
     year--
       ``(i) an amount equal to not more than 25 percent of the 
     allocation it received under this subpart for such fiscal 
     year; or
       ``(ii) upon a demonstration of good cause by such agency 
     and approval by the State, an amount that exceeds 25 percent 
     of such allocation.
       ``(b) Eligibility.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency desiring a 
     subgrant shall submit an application to the State. Such an 
     application shall be amended, as necessary, to reflect 
     changes in the activities and programs of the local 
     educational agency.
       ``(c) Development.--
       ``(1) Consultation.--
       ``(A) In general.--A local educational agency shall develop 
     its application through timely and

[[Page 8952]]

     meaningful consultation with State and local government 
     representatives, representatives of schools to be served, 
     school personnel, and community organizations with relevant 
     and demonstrated expertise in drug and violence prevention 
     activities, students and parents.
       ``(B) Continued consultation.--On an ongoing basis, the 
     local educational agency shall consult with such 
     representatives and organizations in order to seek advice 
     regarding how best to coordinate such agency's activities 
     under this subpart with other related strategies, programs, 
     and activities being conducted in the community.
       ``(2) Design and development.--To ensure timely and 
     meaningful consultation, a local educational agency at the 
     initial stages of design and development of a program or 
     activity shall consult, in accordance with this subsection, 
     with appropriate entities and persons on issues regarding the 
     design and development of the program or activity, including 
     efforts to meet the principles of effectiveness described in 
     section 5115(a).
       ``(d) Contents of Applications.--
       ``(1) In general.--An application submitted by a local 
     educational agency under this section shall contain--
       ``(A) an assurance that the activities or programs to be 
     funded support State academic achievement goals in accordance 
     with section 1111;
       ``(B) a detailed explanation of the local educational 
     agency's comprehensive plan for drug and violence prevention, 
     which shall include a description of--
       ``(i) how the plan will be coordinated with programs under 
     this Act, other Federal, State, and local programs for drug 
     and violence prevention, in accordance with the provisions of 
     section 8306;
       ``(ii) the local educational agency's performance measures 
     for drug and violence prevention programs and activities, 
     that shall consist of--

       ``(I) performance indicators for drug and violence 
     prevention programs and activities; and
       ``(II) levels of performance for each performance 
     indicator;

       ``(iii) how such agency will assess and publicly report 
     progress toward attaining its performance measures;
       ``(iv) the drug and violence prevention activity or program 
     to be funded, including how the activity or program will meet 
     the principles of effectiveness described in section 5115(a), 
     and the means of evaluating such activity or program; and
       ``(v) how the services will be targeted to schools and 
     students with the greatest need;
       ``(C) a certification that a meaningful assessment has been 
     conducted to determine community needs (including 
     consultation with community leaders, businesses, and school 
     officials), available resources and capacity in the public 
     and private sector (which may include an analysis based on 
     data reasonably available at the time on the incidence and 
     prevalence, age of onset, perception of health risk, and 
     perception of social disapproval of drug use and violence by 
     youth in schools and communities, prevalence of risk and 
     protective factors, buffers or assets, or other 
     scientifically based research variables in the school and 
     community), the findings of such assessments;
       ``(D) an assurance that funds under this subpart will be 
     used to increase the level of State, local, and other non-
     Federal funds that would, in the absence of funds under this 
     subpart, be made available for programs and activities 
     authorized under this subpart, and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(E) a description of the mechanisms used to provide 
     effective notice to the community of an intention to submit 
     an application under this title;
       ``(F) an assurance that drug prevention programs supported 
     under this part convey a clear and consistent message that 
     the illegal use of drugs is wrong and harmful;
       ``(G) an assurance that the local educational agency has 
     established and implemented a student code of conduct policy 
     that clearly states responsibilities of students, teachers, 
     and administrators in maintaining a classroom environment 
     that allows a teacher to communicate effectively with all 
     students in the class, that allows all students in the class 
     to learn, has consequences that are fair and appropriate for 
     violations, and is enforced equitably;
       ``(H) an assurance that the application and any waiver 
     request will be available for public review after submission 
     of the application; and
       ``(I) such other information and assurances as the State 
     may reasonably require.
       ``(2) General approval.--A local educational agency's 
     application submitted to the State under this subpart shall 
     be deemed to be approved by the State unless the State makes 
     a written determination, prior to the expiration of the 90-
     day period beginning on the date that the State receives the 
     application, that the application is in violation of this 
     subpart.
       ``(3) Disapproval.--The State shall not finally disapprove 
     a local educational agency application, except after giving 
     such agency notice and an opportunity for a hearing.

     ``SEC. 5115. AUTHORIZED ACTIVITIES.

       ``(a) Principles of Effectiveness.--
       ``(1) In general.--For a program or activity developed 
     pursuant to this subpart to meet the principles of 
     effectiveness, such program or activity shall--
       ``(A) be based upon an assessment of objective data 
     regarding the incidence of violence and illegal drug use in 
     the elementary and secondary schools and communities to be 
     served, including an objective analysis of the current 
     conditions and consequences regarding violence and illegal 
     drug use, including delinquency and serious discipline 
     problems, among students who attend such schools (including 
     private school students who participate in the drug and 
     violence prevention program) that is based on ongoing local 
     assessment or evaluation activities;
       ``(B) be based upon an established set of performance 
     measures aimed at ensuring that the elementary and secondary 
     schools and communities to be served by the program have a 
     drug-free, safe, and orderly learning environment; and
       ``(C) be based upon scientifically based research that 
     provides evidence that the program to be used will reduce 
     violence and illegal drug use.
       ``(2) Periodic evaluation.--The program or activity shall 
     undergo a periodic evaluation to assess its progress toward 
     reducing violence and illegal drug use in schools to be 
     served based on performance measures described in section 
     5114(d)(1)(B)(ii) The results shall be used to refine, 
     improve, and strengthen the program, and to refine the 
     performance measures. The results shall also be made 
     available to the public upon request, with public notice of 
     such availability provided.
       ``(3) Waiver.--A local educational agency may apply to the 
     State for a waiver of the requirement of paragraph (1)(C) to 
     allow innovative activities or programs that demonstrate 
     substantial likelihood of success.
       ``(b) Local Educational Agency Activities.--
       ``(1) Program requirements.--A local educational agency 
     shall use funds made available under section 5114 to develop, 
     implement, and evaluate comprehensive programs and 
     activities, which are coordinated with other school and 
     community-based services and programs, that shall--
       ``(A) support State academic achievement goals in 
     accordance with section 1111;
       ``(B) be consistent with the principles of effectiveness 
     described in subsection (a);
       ``(C) be designed to--
       ``(i) prevent or reduce violence and illegal drug use, 
     delinquency, serious discipline problems, and poor academic 
     achievement and illegal drug use; and
       ``(ii) create a well disciplined environment conducive to 
     learning, which includes consultation between teachers, 
     principals, and other school personnel to identify early 
     warning signs of drug use and violence and to provide 
     behavioral interventions as part of classroom management 
     efforts; and
       ``(D) include activities to promote the involvement of 
     parents in the activity or program, to promote coordination 
     with community groups and coalitions, and government 
     agencies, and to distribute information about the local 
     educational agency's needs, goals, and programs under this 
     subpart.
       ``(2) Authorized activities.--Each local educational agency 
     or consortium of such agencies, that receives a subgrant 
     under this subpart may use such funds to carry out 
     activities, such as--
       ``(A) developmentally appropriate drug and violence 
     prevention programs in both elementary and secondary schools 
     that incorporate a variety of prevention strategies and 
     activities, which may include--
       ``(i) teaching students that most people do not use illegal 
     drugs;
       ``(ii) teaching students to recognize social and peer 
     pressure to use illegal drugs and the skills for resisting 
     illegal drug use;
       ``(iii) teaching students about the dangers of emerging 
     drugs;
       ``(iv) engaging students in the learning process;
       ``(v) incorporating activities in secondary schools that 
     reinforce prevention activities implemented in elementary 
     schools; and
       ``(vi) involving families and communities in setting clear 
     expectations against violence and illegal drug use and 
     enforcing appropriate consequences for violence and illegal 
     drug use;
       ``(B) training of school personnel and parents in youth 
     drug and violence prevention, including training in early 
     identification, intervention, and prevention of threatening 
     behavior;
       ``(C) community-wide strategies for reducing violence and 
     illegal drug use, and illegal gang activity;
       ``(D) to the extent that expenditures do not exceed 20 
     percent of the amount made available to a local educational 
     agency under this subpart, law enforcement and security 
     activities, including--
       ``(i) acquisition and installation of metal detectors;
       ``(ii) hiring and training of security personnel, that are 
     related to youth drug and violence prevention;
       ``(iii) reporting of criminal offenses on school property; 
     and
       ``(iv) development of comprehensive school security 
     assessments;
       ``(E) expanding and improving school-based mental health 
     services, including early identification of violence and 
     illegal drug use, assessment, and direct individual or group 
     counseling services provided to students, parents, and school 
     personnel by qualified school based mental health services 
     personnel;
       ``(F) establishing and maintaining peer mediation programs 
     that include educating and training peer mediators and a 
     designated faculty supervisor and purchasing necessary 
     materials to facilitate training and the mediation process;

[[Page 8953]]

       ``(G) alternative education programs or services that 
     reduce the need for suspensions or expulsions or programs or 
     services for students who have been expelled or suspended 
     from the regular educational settings, including programs or 
     services to assist students to reenter the regular education 
     setting upon return from treatment or alternative education 
     programs;
       ``(H) counseling, mentoring, and referral services, and 
     other student assistance practices and programs, including 
     assistance provided by qualified school based mental health 
     services personnel and the training of teachers by school-
     based mental health service providers in appropriate 
     identification and intervention techniques for students, at 
     risk of violent behavior and drug use;
       ``(I) activities that reduce truancy;
       ``(J) age appropriate, developmentally based violence 
     prevention and education programs that address the legal, 
     health, personal, and social consequences of illegal drug use 
     and violent and disruptive behavior and that include 
     activities designed to help students develop a sense of 
     individual responsibility and respect for the rights of 
     others, and to resolve conflicts without violence;
       ``(K) providing guidance to students that encourages 
     students to seek advice for anxiety, threats of violence, or 
     actual violence and to confide in a trusted adult regarding 
     an uncomfortable or threatening situation;
       ``(L) the development of educational programs that prevent 
     school based crime, including preventing crimes motivated by 
     hate that result in acts of physical violence at school and 
     any programs or published materials that address school based 
     crime shall not recommend or require any action that abridges 
     or infringes upon the constitutionally protected rights of 
     free speech, religion, and equal protection of students, 
     their parents, or legal guardians;
       ``(M) testing students for illegal drug use or conducting 
     student locker searches for illegal drugs or drug 
     paraphernalia consistent with the 4th amendment to the 
     Constitution;
       ``(N) emergency intervention services following traumatic 
     crisis events, such as a shooting, major accident, or a drug-
     related incident, that has disrupted the learning 
     environment;
       ``(O) establishing and implementing a system for 
     transferring suspension and expulsion records by a local 
     educational agency to any public or private elementary or 
     secondary school;
       ``(P) allowing students attending a persistently dangerous 
     public elementary or secondary school, as determined by the 
     State, or who become a victim of a violent criminal offense, 
     as defined by State law, while in or on the grounds of a 
     public elementary school or secondary school that the student 
     attends, to attend a safe public elementary or secondary 
     school, within the local educational agency, including a 
     public charter school, and allowing payment of reasonable 
     transportation costs and tuition costs for such students;
       ``(Q) the development and implementation of character 
     education and training programs that reflect values, that 
     take into account the views of parents or guardians of the 
     student for whom the program is intended, which may include 
     honesty, citizenship, courage, justice, respect, personal 
     responsibility, and trustworthiness;
       ``(R) establishing and maintaining a school violence 
     hotline;
       ``(S) activities to ensure students' safe travel to and 
     from school, including pedestrian and bicycle safety 
     education; and
       ``(T) the evaluation of any of the activities authorized 
     under this subsection and the collection of any data required 
     by this part.

     ``SEC. 5116. EVALUATION AND REPORTING.

       ``(a) Data Collection.--
       ``(1) In general.--The National Center for Education 
     Statistics shall report, and when appropriate, collect data 
     to determine the frequency, seriousness, and incidence of 
     illegal drug use and violence by youth in schools and 
     communities in the States, using if appropriate, data 
     submitted by the States pursuant to subsection (b).
       ``(2) Report.--The Secretary shall submit to the Congress a 
     report on the data collected under this subsection.
       ``(b) State Report.--
       ``(1) In general.--Not later than October 1, 2004, and 
     every third year thereafter, the chief executive officer of a 
     State, in consultation with the State educational agency, 
     shall submit to the Secretary a report on the implementation 
     and effectiveness of State and local programs under this 
     subpart.
       ``(2) Special rule.--The report required by this subsection 
     shall be--
       ``(A) based on the State's ongoing evaluation activities, 
     and shall include data on the prevalence of violence and 
     illegal drug use by youth in schools and communities; and
       ``(B) made available to the public upon request, with 
     public notice of such availability provided.
       ``(c) Local Educational Agency Report.--Each local 
     educational agency receiving funds under this subpart shall 
     submit to the State such information, and at such intervals 
     as the State reasonably requires to complete the State report 
     required by subsection (b), information on the prevalence of 
     violence and illegal drug use by youth in the schools and the 
     community and the progress of the local educational agency 
     toward meeting its performance measures. The report shall be 
     made available to the public upon request, with public notice 
     of such availability provided.

                   ``Subpart 2--21st Century Schools

     ``SEC. 5121. STATE ALLOTMENTS FOR 21ST CENTURY SCHOOLS.

       ``(a) State Allotments.--
       ``(1) In general.--Except as provided in paragraph (2), 
     from the amount made available under section 5003(2) to carry 
     out this subpart for each fiscal year, the Secretary shall 
     allocate among the States--
       ``(A) one-half of such amount according to the ratio 
     between the school-aged population of each State and the 
     school-aged population of all the States; and
       ``(B) one-half of such amount according to the ratio 
     between the amount each State received under part A of title 
     I for the preceding year and the sum of such amounts received 
     by all the States.
       ``(2) Minimum.--For any fiscal year, no State shall be 
     allotted under this subsection an amount that is less than 
     one-half of 1 percent of the total amount allotted to all the 
     States under this subsection.
       ``(b) Reallotment of Unused Funds.--If any State does not 
     apply for an allotment under this subpart for a fiscal year, 
     the Secretary shall reallot the amount of the State's 
     allotment to the remaining States in accordance with this 
     section.
       ``(c) State Funds.--
       ``(1) In general.--Each State that receives a grant under 
     this subpart shall reserve an amount equal to the amount 
     allotted to such State under subsection (a), less the amount 
     reserved under paragraphs (2) and (3) of this subsection, for 
     each fiscal year for its local educational agencies.
       ``(2) State administration.--A State may use not more than 
     1 percent of the amount made available under subsection (a) 
     for the administrative costs of carrying out its 
     responsibilities under this subpart.
       ``(3) State activities.--A State may use not more than 4 
     percent of the amount made available under subsection (a) for 
     the following activities:
       ``(A) Monitoring and evaluation of programs and activities 
     assisted under this subpart.
       ``(B) Providing capacity building, training, and technical 
     assistance under this subpart.

     ``SEC. 5122. STATE APPLICATION.

       ``(a) In General.--In order to receive an allotment under 
     section 5121(a) for any fiscal year, a State shall submit to 
     the Secretary, at such time as the Secretary may require, an 
     application that--
       ``(1) designates the State educational agency as the agency 
     responsible for the administration and supervision of 
     programs assisted under this subpart;
       ``(2) describes the competitive procedures and criteria the 
     State will use to ensure that grants under this subpart will 
     support quality extended learning opportunities;
       ``(3) an assurance that the program will primarily target 
     schools eligible for schoolwide programs under section 1114;
       ``(4) describes the steps the State will take to ensure 
     that programs implement effective strategies, including 
     providing ongoing technical assistance and training, 
     evaluation, and dissemination of promising practices;
       ``(5) describe how activities funded under this subpart 
     will support State academic achievement goals in accordance 
     with section 1111;
       ``(6) describe how funds under this subpart will be 
     coordinated with programs under this Act, and other programs; 
     as appropriate, in accordance with the provisions of section 
     8306;
       ``(7) provides an assurance that funds under this subpart 
     will be used to increase the level of State, local, and other 
     non-Federal funds that would, in the absence of funds under 
     this subpart, be made available for programs and activities 
     authorized under this subpart; and in no case supplant such 
     State, local, and other non-Federal funds:
       ``(8) provides an assurance that the application was 
     developed in consultation and coordination with appropriate 
     State officials, including the chief State school officer, 
     the heads of the State health and mental health agencies or 
     their designees, representatives of teachers, parents, 
     students, the business community, and community-based 
     organizations, including religious organizations;
       ``(9) describes the results of the State's needs and 
     resources assessment for before and after school activities, 
     which shall be based on the results of on-going State 
     evaluation activities;
       ``(10) describes how the State will evaluate the 
     effectiveness of programs and activities carried out under 
     this subpart which shall include at a minimum--
       ``(A) a description of the performance indicators and 
     performance measures that will be used to evaluate programs 
     and activities; and
       ``(B) public dissemination of the evaluations of programs 
     and activities carried out under this subpart; and
       ``(11) provides for timely public notice of intent to file 
     application and an assurance that the application will be 
     available for public review after submission of the 
     application.
       ``(b) General Approval.--A State application submitted 
     pursuant to subsection (a) shall be deemed to be approved by 
     the Secretary unless the Secretary makes a written 
     determination, prior to the expiration of the 90-day period 
     beginning on the date that the Secretary receives the 
     application, that the application is in violation of this 
     subpart.
       ``(c) Disapproval.--The Secretary shall not finally 
     disapprove a State application, except after giving the State 
     notice and opportunity for a hearing.

     ``SEC. 5123. COMPETITIVE GRANT PROGRAM.

       ``(a) In General.--A State that receives funds under this 
     subpart shall provide the amount

[[Page 8954]]

     made available under section 5121 to eligible entities for 
     21st century community learning programs in accordance with 
     this subpart.
       ``(b) Eligibility.--
       ``(1) In general.--To be eligible to receive a subgrant 
     under this subpart, an eligible entity desiring a subgrant 
     shall submit an application to the State that contains--
       ``(A) a description of the before and after school activity 
     to be funded including--
       ``(i) an assurance that the program will take place in a 
     safe and easily accessible facility;
       ``(ii) a description of how students participating in the 
     center will travel safely to and from the community learning 
     center and back home; and
       ``(iii) a description of how the eligible applicant will 
     disseminate information about the project (including its 
     location) to the community in a manner that is understandable 
     and accessible.
       ``(B) a description of how the activity is expected to 
     improve student academic performance;
       ``(C) a description of how the activity will meet the 
     principles of effectiveness described in section 5124;
       ``(D) an assurance that the program will primarily target 
     students who attend schools eligible for schoolwide programs 
     under section 1114;
       ``(E) provides an assurance that funds under this subpart 
     will be used to increase the level of State, local, and other 
     non-Federal funds that would, in the absence of funds under 
     this subpart, be made available for programs and activities 
     authorized under this subpart; and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(F) a description of the partnership with local 
     educational agency, a community-based organization, and 
     another public entity or private organization, if 
     appropriate;
       ``(G) a certification that a meaningful assessment has been 
     conducted to determine community needs, available resources 
     and capacity in the findings of such assessments, and a 
     description of the mechanisms used to provide effective 
     notice to the community of an intention to submit an 
     application under this subpart;
       ``(H) a description of the applicants experience, or 
     promise of success, in providing educational or related 
     activities that will compliment and enhance the student's 
     academic achievement;
       ``(I) an assurance that the applicant will develop a plan 
     to continue the activity after funding under this subpart 
     ends;
       ``(J) an assurance that the application and any waiver 
     request will be available for public review after submission 
     of the application; and
       ``(K) such other information and assurances as the State 
     may reasonably require.
       ``(2) Eligible entity.--An eligible entity under this 
     subpart is a local educational agency, community-based 
     organization, and other public entity or private organization 
     or a consortium of two or more of such groups.
       ``(c) Peer Review.--In reviewing local applications under 
     this section, a State shall use a peer review process or 
     other methods of assuring the quality of such applications.
       ``(d) Geographic Diversity.--To the extent practicable, a 
     State shall distribute funds equitably among geographic areas 
     within the State.
       ``(e) Duration of Awards.--Grants under this subpart may be 
     awarded for a period of not less than 3 years and not more 
     than 5 years.
       ``(f) Amount of Awards.--A grant awarded under this subpart 
     may not be made in an amount of less than $50,000.
       ``(g) Priority.--In making awards under this subpart, the 
     State shall give priority to applications submitted by 
     applicants proposing to target services to students who 
     attend schools that have been identified as in need of 
     improvement under section 1116.
       ``(h) Permissive Local Match.--
       ``(1) In general.--A State may require an eligible entity 
     to match funds awarded under this subpart, except that such 
     match may not exceed the amount of the grant award.
       ``(2) Sliding scale.--The amount of a match under paragraph 
     (1) shall be established based on a sliding fee scale that 
     takes into account--
       ``(A) the relative poverty of the population to be targeted 
     by the eligible entity; and
       ``(B) the ability of the eligible entity to obtain such 
     matching funds.
       ``(3) Consideration.--Notwithstanding this subsection, a 
     State shall not consider an eligible entity's ability to 
     match funds when determining which eligible entities will 
     receive subgrants under this subpart.

     ``SEC. 5124. LOCAL ACTIVITIES.

       ``(a) Principles of Effectiveness.--
       ``(1) In general.--For a program or activity developed 
     pursuant to this subpart to meet the principles of 
     effectiveness, such program or activity shall--
       ``(A) be based upon an assessment of objective data 
     regarding the need for before and after school programs and 
     activities in such schools and communities;
       ``(B) be based upon an established set of performance 
     measures aimed at ensuring the availability of quality 
     extended learning opportunities; and
       ``(C) if appropriate, be based upon scientifically based 
     research that provides evidence that the program will help 
     students meet State and local performance standards to be 
     used.
       ``(2) Periodic evaluation.--The program or activity shall 
     undergo a periodic evaluation to assess its progress toward 
     achieving its goal of providing quality extended learning 
     opportunities. The results shall be used to refine, improve, 
     and strengthen the program, and to refine the performance 
     measures. The results shall also be made available to the 
     public upon request, with public notice of such availability 
     provided.
       ``(3) Waiver.--A local educational agency may apply to the 
     State for a waiver of the requirement of paragraph (1)(C) to 
     allow innovative activities or programs that demonstrate 
     substantial likelihood of success.
       ``(b) Services.--Each eligible entity that receives a 
     subgrant under this subpart shall use such funds to establish 
     or expand activities in community learning centers that--
       ``(1) provide quality extended learning opportunities to 
     help students, particularly students who attend low-
     performing schools, to meet State and local student 
     performance standards in the core academic subjects, such as 
     reading and mathematics; and
       ``(2) provide students with additional activities, such as 
     drug and violence prevention programs, art and music 
     programs, technology education programs, recreational 
     activity, and character education programs that are linked 
     to, and reinforce, the regular academic program of schools 
     those students attend.
       ``(c) Authorized Activities.--Each eligible entity that 
     receives a subgrant under this subpart may use such funds to 
     carry out activities, such as--
       ``(1) before and after school activities that advance 
     student achievement, including--
       ``(A) remedial education activities and academic enrichment 
     learning programs, including providing additional assistance 
     to students in order to allow them to improve their academic 
     achievement;
       ``(B) math and science education activities;
       ``(C) arts and music education activities;
       ``(D) entrepreneurial education programs;
       ``(E) tutoring services (including those provided by senior 
     citizen volunteers) and mentoring programs;
       ``(F) recreational activities;
       ``(G) telecommunications and technology education programs;
       ``(H) expanded library service hours;
       ``(I) programs that promote parental involvement; and
       ``(J) programs that provide assistance to students who have 
     been truant, suspended, or expelled to allow them to improve 
     their academic achievement; and
       ``(2) establishing or enhancing programs or initiatives 
     that improve academic achievement.
       ``(d) Definition.--For the purpose of this section, a 
     `community learning center' is an entity that assists 
     students to meet State and local content and student 
     performance standards in core academic subjects, such as 
     reading and mathematics, by providing them with quality 
     extended learning opportunities and related activities (such 
     as drug and violence-prevention programs, art and music 
     programs, recreational programs, technology education 
     programs, and character education programs) that are linked 
     to, and reinforce, the regular academic program of schools 
     attended by the students served and is operated by a local 
     educational agency, community-based organization, other 
     public entity or private organization or a consortium of two 
     or more such groups. Community learning centers shall operate 
     outside school hours, such as before or after school or when 
     school is not in session.

                     ``Subpart 3--National Programs

     ``SEC. 5131. FEDERAL ACTIVITIES.

       ``(a) Program Authorized.--
       ``(1) In general.--From funds made available to carry out 
     this part under section 5003(3), the Secretary, in 
     consultation with the Secretary of Health and Human Services, 
     the Director of the Office of National Drug Control Policy, 
     and the Attorney General, shall evaluate the effectiveness of 
     programs and activities that prevent violence and the illegal 
     use of drugs by youth, that promote safety and discipline for 
     students in elementary and secondary schools, and that 
     provide before and after school supervision and academic 
     enrichment, based on the needs reported by States and local 
     educational agencies.
       ``(2) Coordination.--The Secretary shall carry out 
     activities described in paragraph (1) directly, or through 
     grants, contracts, or cooperative agreements with public and 
     private nonprofit and for-profit organizations, and 
     individuals, or through agreements with other Federal 
     agencies, and shall coordinate such activities with other 
     appropriate Federal activities.
       ``(3) Programs.--Activities described in paragraph (1) may 
     include--
       ``(A) demonstrations and rigorous scientifically based 
     evaluations of innovative approaches to drug and violence 
     prevention and before and after school activities based on 
     needs reported by State and local educational agencies;
       ``(B) the provision of information on drug abuse education 
     and prevention to the Secretary of Health and Human Services 
     for dissemination by the clearinghouse for alcohol and drug 
     abuse information established under section 501(d)(16) of the 
     Public Health Service Act;
       ``(C) the provision of information on violence prevention 
     and school safety to the Attorney General for dissemination; 
     and
       ``(D) continuing technical assistance to chief executive 
     officers, State agencies, and local educational agencies to 
     build capacity to develop and implement high-quality, 
     effective programs consistent with the principles of 
     effectiveness.
       ``(b) Peer Review.--The Secretary shall use a peer review 
     process in reviewing applications for funds under this 
     section.

                      ``Subpart 4--Gun Possession

     ``SEC. 5141. GUN-FREE SCHOOL REQUIREMENTS.

       ``(a) Requirements.--

[[Page 8955]]

       ``(1) State law.--Each State receiving funds under this Act 
     shall--
       ``(A) have in effect a State law requiring each local 
     educational agency to expel from school for a period of not 
     less than one year a student who is determined to have 
     possessed a firearm in or at a school or on school grounds 
     under the jurisdiction of a local educational agency in that 
     State, except that such State law shall allow the chief 
     administering officer of such local educational agency to 
     modify such expulsion requirement for a student on a case-by-
     case basis; and
       ``(B) require each local educational agency to adopt a 
     policy requiring each elementary and secondary school to 
     refer to the criminal justice or juvenile delinquency system 
     any student who possesses a firearm in school.
       ``(2) Construction.--Nothing in this part shall be 
     construed to prevent a State from allowing a local 
     educational agency that has expelled a student from such 
     student's regular school setting from providing educational 
     services to such student in an alternative setting.
       ``(b) Report to State.--Each local educational agency 
     requesting assistance from the State educational agency that 
     is to be provided from funds made available to the State 
     under this Act shall provide to the State, in the application 
     requesting such assistance--
       ``(1) an assurance that such local educational agency is in 
     compliance with the requirements of subsection (a); and
       ``(2) a description of the circumstances surrounding 
     incidents of possessions and any expulsions imposed under the 
     State law required by subsection (a)(1), including--
       ``(A) the name of the school concerned;
       ``(B) the number of students expelled from such school for 
     firearm possession; and
       ``(C) the type of firearm concerned.
       ``(c) Special Rule.--The provisions of this section shall 
     be construed in a manner consistent with the Individuals with 
     Disabilities Education Act.
       ``(d) Definitions.--For the purpose of this subpart--
       ``(1) the term `firearm' has the same meaning given to such 
     term under section 921(a)(3) of title 18, United States Code; 
     and
       ``(2) the term `school' does not include a home school, 
     regardless of whether a home school is treated as a private 
     school under State law.

                    ``Subpart 5--General Provisions

     ``SEC. 5151. DEFINITIONS.

       ``For the purposes of this part, the following terms have 
     the following meanings:
       ``(1) Before and after school activities.--The term `before 
     and after school activities' means academic, recreational, 
     and enrichment activities for school-age youth outside of the 
     regular school hours or school year.
       ``(2) Controlled substance.--The term `controlled 
     substance' means a drug or other substance identified under 
     Schedule I, II, III, IV, or V in section 202(c) of the 
     Controlled Substances Act (21 U.S.C. 812(c)).
       ``(3) Drug.--The term `drug' includes controlled 
     substances; the illegal use of alcohol and tobacco; and the 
     harmful, abusive, or addictive use of substances, including 
     inhalants and anabolic steroids.
       ``(4) Drug and violence prevention.--The term `drug and 
     violence prevention' means--
       ``(A) with respect to drugs, prevention, early 
     intervention, rehabilitation referral, or education related 
     to the illegal use of drugs; and
       ``(B) with respect to violence, the promotion of school 
     safety, such that students and school personnel are free from 
     violent and disruptive acts, on school premises, going to and 
     from school, and at school-sponsored activities, through the 
     creation and maintenance of a school environment that is free 
     of weapons and fosters individual responsibility and respect 
     for the rights of others.
       ``(5) Nonprofit.--The term `nonprofit,' as applied to a 
     school, agency, organization, or institution means a school, 
     agency, organization, or institution owned and operated by 
     one or more nonprofit corporations or associations, no part 
     of the net earnings of which inures, or may lawfully inure, 
     to the benefit of any private shareholder or individual.
       ``(6) School-aged population.--The term `school-aged 
     population' means the population aged 5 through 17, as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data available from the Department of Commerce.
       ``(7) School based mental health services provider.--The 
     term `school based mental health services provider' includes 
     a State licensed or State certified school counselor, school 
     psychologist, school social worker, or other State licensed 
     or certified mental health professional qualified under State 
     law to provide such services to children and adolescents.
       ``(8) School personnel.--The term `school personnel' 
     includes teachers, principals, administrators, guidance 
     counselors, social workers, psychologists, nurses, 
     librarians, and other support staff who are employed by a 
     school or who perform services for the school on a 
     contractual basis.
       ``(9) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.

     ``SEC. 5152. MESSAGE AND MATERIALS.

       ``(a) `Wrong and Harmful' Message.--Drug prevention 
     programs supported under this title shall convey a clear and 
     consistent message that the illegal use of drugs is wrong and 
     harmful.
       ``(b) Curriculum.--The Secretary shall not prescribe the 
     use of specific curricula for programs supported under this 
     part.

     ``SEC. 5153. PARENTAL CONSENT.

       ``Upon receipt of written notification from the parents or 
     legal guardians of a student, the local educational agency 
     shall withdraw such student from any program or activity 
     funded under this title. The local educational agency shall 
     make reasonable efforts to inform parents or legal guardians 
     of the content of such programs or activities funded under 
     this title, other than classroom instruction.

     ``SEC. 5154. PROHIBITED USES OF FUNDS.

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

            ``PART B--ENHANCING EDUCATION THROUGH TECHNOLOGY

     ``SEC. 5201. SHORT TITLE.

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

     ``SEC. 5202. PURPOSES.

       ``The purposes of this part are as follows:
       ``(1) To provide assistance to States and localities for 
     implementing innovative technology initiatives that lead to 
     increased student academic achievement and that may be 
     evaluated for effectiveness and replicated if successful.
       ``(2) To encourage the establishment or expansion of 
     initiatives, including those involving public-private 
     partnerships, designed to increase access to technology, 
     particularly in high-need local educational agencies.
       ``(3) To assist States and localities in the acquisition, 
     development, interconnection, implementation, improvement, 
     and maintenance of an effective educational technology 
     infrastructure in a manner that expands access to technology 
     for students (particularly for disadvantaged students) and 
     teachers.
       ``(4) To promote initiatives that provide school teachers, 
     principals, and administrators with the capacity to 
     effectively integrate technology into curriculum that is 
     aligned with challenging State academic content and student 
     academic achievement standards, through such means as high 
     quality professional development programs.
       ``(5) To enhance the ongoing professional development of 
     teachers, principals, and administrators by providing 
     constant access to updated research in teaching and learning 
     via electronic means.
       ``(6) To support the development of electronic networks and 
     other innovative methods, such as distance learning, of 
     delivering challenging courses and curricula for students who 
     would otherwise not have access to such courses and 
     curricula, particularly in geographically remote regions.
       ``(7) To support the rigorous evaluation of programs funded 
     under this part, particularly the impact of such initiatives 
     on student academic performance, and ensure that timely 
     information on the results of such evaluations is widely 
     accessible through electronic means.
       ``(8) To support local efforts for the use of technology to 
     promote parent and family involvement in education and 
     communication among students, parents, teachers, principals, 
     and administrators.

     ``SEC. 5203. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

       ``(a) In General.--There are authorized to be 
     appropriated--
       ``(1) to carry out subparts 1 and 2 of this part--
       ``(A) $1,000,000,000 for fiscal year 2002; and
       ``(B) such sums as may be necessary for each of fiscal 
     years 2003 through 2006; and
       ``(2) to carry out subpart 3 of this part--
       ``(A) $24,500,000 for fiscal year 2002; and
       ``(B) such sums as may be necessary for each of fiscal 
     years 2003 through 2006.
       ``(b) Allocation of Funds Between National and State and 
     Local Initiatives.--The amount of funds made available under 
     subsection (a) shall be allocated as follows:
       ``(1) Not less than 95 percent shall be made available for 
     State and local technology initiatives under subpart 1.
       ``(2) Not more than 5 percent may be made available for 
     activities of the Secretary under subpart 2, of which not 
     more than $15,000,000 may be used for the study required by 
     section 5221(a)(1).

     ``SEC. 5204. DEFINITIONS.

       ``In this part:
       ``(1) The term `distance learning' means the transmission 
     of educational or instructional programming to geographically 
     dispersed individuals and groups via telecommunications.
       ``(2) The term `eligible local entity' means--
       ``(A) a high-need local educational agency; or
       ``(B) an eligible local partnership.
       ``(3) The term `eligible local partnership' means a 
     partnership that includes at least one high-need local 
     educational agency and at least one--
       ``(A) local educational agency that can demonstrate that 
     teachers in schools served by that agency are effectively 
     integrating technology and proven teaching practices into 
     instruction, based on scientifically based research, that 
     result in improvement in--
       ``(i) classroom instruction in the core academic subject 
     areas; and
       ``(ii) the preparation of students to meet challenging 
     State academic content and student academic achievement 
     standards;
       ``(B) institution of higher education that is in full 
     compliance with the reporting requirements of section 207(f) 
     of the Higher Education Act of

[[Page 8956]]

     1965 (20 U.S.C. 1027(f)) and that has not been identified by 
     its State as low-performing under section 208 of such Act (20 
     U.S.C. 1028);
       ``(C) for-profit business or organization that develops, 
     designs, manufactures, or produces technology products or 
     services, or has substantial expertise in the application of 
     technology; or
       ``(D) public or private nonprofit organization with 
     demonstrated experience in the application of educational 
     technology.
       ``(4) The term `high-need local educational agency' means a 
     local educational agency that--
       ``(A) is among the local educational agencies in the State 
     with the highest numbers or percentages of children from 
     families with incomes below the poverty line, as defined by 
     the Office of Management and Budget and revised annually in 
     accordance with section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2));
       ``(B) includes one or more schools identified under section 
     1116; and
       ``(C) has a substantial need for assistance in acquiring 
     and using technology.

       ``Subpart 1--State and Local Technology for Success Grants

     ``SEC. 5211. DETERMINATION OF AMOUNT OF STATE ALLOTMENT.

       ``(a) In General.--Except as otherwise provided in this 
     subpart, each State shall be eligible to receive a grant 
     under this subpart for a fiscal year in an allotment 
     determined as follows:
       ``(1) 50 percent shall bear the same relationship to the 
     amount made available under section 5203(b)(1) for such year 
     as the amount such State received under part A for title I 
     for such year bears to the amount received for such year 
     under such part by all States.
       ``(2) 50 percent shall be determined on the basis of the 
     State's relative population of individuals age 5 through 17, 
     as determined by the Secretary on the basis of the most 
     recent satisfactory data.
       ``(b) Reservation of Funds for Bureau of Indian Affairs and 
     Outlying Areas.--Of the amount made available to carry out 
     this subpart under section 5203(b)(1) for a fiscal year--
       ``(1) the Secretary shall reserve \1/2\ of 1 percent for 
     the Secretary of the Interior for programs under this subpart 
     for schools operated or funded by the Bureau of Indian 
     Affairs; and
       ``(2) the Secretary shall reserve \1/2\ of 1 percent to 
     provide assistance under this subpart to the outlying areas.
       ``(c) Minimum Allotment.--The amount of any State's 
     allotment under subsection (a) for any fiscal year may not be 
     less than \1/2\ of 1 percent of the amount made available 
     under section 5203(b)(1) for such year.
       ``(d) Reallotment of Unused Funds.--If any State does not 
     apply for an allotment under this subpart for a fiscal year, 
     or does not use its entire allotment for that fiscal year, 
     the Secretary shall reallot the amount of the State's 
     allotment, or the unused portion thereof, to the remaining 
     States in accordance with this section.

     ``SEC. 5212. USE OF ALLOTMENT BY STATE.

       ``(a) In General.--Of the amount provided to a State from 
     its allotment under section 5211--
       ``(1) the State may use not more than 5 percent to carry 
     out activities under section 5215; and
       ``(2) subject to subsection (b), not less than 95 percent 
     shall be distributed by the State as follows:
       ``(A) 60 percent of such amount shall--
       ``(i) be awarded to local educational agencies that have 
     submitted applications to the State under section 5214 
     (which, in the case of a local educational agency that is an 
     eligible local entity, may be combined with an application 
     for funds awarded under subparagraph (B)), in an amount that 
     bears the same relationship to the amount made available 
     under section 5211(a) for such year as the amount such local 
     educational agency received under part A of title I for such 
     year bears to the amount received for such year under such 
     part by all local educational agencies within the State; and
       ``(ii) be used for the activities described in section 
     5216.
       ``(B) 40 percent of such amount shall be awarded through a 
     State-determined competitive process to eligible local 
     entities that have submitted applications to the State under 
     section 5214 (which, in the case of an eligible local entity 
     that is a local educational agency, may be combined with an 
     application for funds provided under subparagraph (A)), to be 
     used to carry out activities consistent with activities 
     described in section 5216.
       ``(b) Continuation of Awards.--Notwithstanding section 3 of 
     the No Child Left Behind Act of 2001, a State shall make 
     continuation awards on multiyear grants awarded by the State 
     under section 3132(a)(2) (as in effect on the day preceding 
     the date of enactment of such Act) from the funds described 
     in subsection (a)(2) for the shorter of--
       ``(1) the duration of the original grant period; or
       ``(2) two years after the date of enactment of such Act.

     ``SEC. 5213. STATE APPLICATIONS.

       ``(a) In General.--To be eligible to receive a grant under 
     this subpart, a State shall submit an application to the 
     Secretary containing a new or updated statewide, long-range 
     strategic educational technology plan (which shall consider 
     the educational technology needs of local educational 
     agencies), and such other information as the Secretary may 
     reasonably require, at such time and in such manner as the 
     Secretary may specify.
       ``(b) Contents.--Each State application submitted under 
     this section shall include the following:
       ``(1) A description of how the State will use funds 
     provided under this subpart to improve the academic 
     achievement of all students and to improve the capacity of 
     all teachers to provide instruction in the State through the 
     use of education technology.
       ``(2) A description of the State's goals for using advanced 
     technology to improve student achievement aligned to 
     challenging State academic content and student academic 
     achievement standards.
       ``(3) A description of how the State will take steps 
     (including through public and private partnerships) to ensure 
     that all students and teachers in the State, particularly 
     those residing or teaching in districts served by high-need 
     local educational agencies, will have increased access to 
     educational technology.
       ``(4) A description of--
       ``(A) how the State will ensure that ongoing integration of 
     technology into instructional strategies and school curricula 
     in all schools in the State so that technology will be fully 
     integrated into those schools by December 31, 2006; and
       ``(B) the process and accountability measures the State 
     will use for the evaluation of such integration, including 
     whether such integration--
       ``(i) has increased the ability of teachers to teach 
     effectively; and
       ``(ii) has enabled students to meet challenging State 
     academic content and student academic achievement standards.
       ``(5) A description of how the State will encourage the 
     development and utilization of innovative strategies for the 
     delivery of specialized or rigorous academic courses and 
     curricula through the use of technology and distance 
     learning, particularly for those areas of the State that 
     would not otherwise have access to such courses and curricula 
     due to geographical isolation or insufficient resources.
       ``(6) An assurance that financial assistance provided under 
     this subpart shall supplement, not supplant, State and local 
     funds.
       ``(7) A description of how the State will ensure that every 
     teacher and principal within a school funded under this 
     subpart will be computer-literate and proficient (as 
     determined by the State) by December 31, 2006.
       ``(8) A description of how the State will ensure that each 
     grant under section 5212(a)(2)(B) to an eligible local 
     applicant is of sufficient duration, size, scope, and quality 
     to carry out the purposes of this part effectively.
       ``(9) A description of how the State educational agency 
     will provide technical assistance to eligible local 
     applicants, and its capacity for providing such assistance, 
     including developing public and private partnerships under 
     this part.
       ``(c) Deemed Approval.--A State application submitted to 
     the Secretary under this section shall be deemed to be 
     approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 90-day 
     period that begins on the date the Secretary receives the 
     complete application, that the application does not 
     reasonably meet the purposes of this subpart.
       ``(d) Disapproval.--The Secretary may issue a final 
     disapproval of a State's application under this subpart only 
     after giving the State notice and an opportunity for a 
     hearing.
       ``(e) Dissemination of Information on State Applications.--
     The Secretary shall make information on State applications 
     under this subpart widely available to schools and the 
     general public, including through dissemination on the 
     Internet, in a timely and user-friendly manner.

     ``SEC. 5214. LOCAL APPLICATIONS.

       ``(a) In General.--An applicant seeking to receive funds 
     from a State under this subpart shall submit to the State an 
     application containing a new or updated long-range local 
     strategic educational technology plan consistent with the 
     objectives of the statewide education technology plan 
     described in section 5213(a), and such other information as 
     the State may reasonably require, at such time, and in such 
     manner as the State may specify.
       ``(b) Contents of Local Application.--Each local 
     application described in this section shall include the 
     following:
       ``(1) A description of how the applicant will use Federal 
     funds provided under this subpart to improve the academic 
     achievement of all students and to improve the capacity of 
     all teachers to provide instruction through the use of 
     education technology.
       ``(2) A description of the applicant's specific goals for 
     using advanced technology to improve student achievement 
     aligned to challenging State academic content and student 
     academic achievement standards.
       ``(3) A description of--
       ``(A) how the applicant will take steps to ensure that all 
     students and teachers in schools served by the local 
     educational agency (particularly those in high-poverty and 
     high-need schools) have increased access to educational 
     technology; and
       ``(B) how such technology will be used to improve the 
     academic achievement for such students.
       ``(4) A description of how the applicant will promote--
       ``(A) the utilization of teaching strategies and curricula, 
     based on scientifically based research, which effectively 
     integrate technology into instruction, leading to 
     improvements in student

[[Page 8957]]

     academic achievement as measured by challenging State 
     academic content and student academic achievement standards; 
     and
       ``(B) sustained and intensive, high-quality professional 
     development consistent with section 2033 (as applicable), 
     based on scientifically based research, which increases 
     teacher and principal capacity to create improved learning 
     environments through the integration of technology into 
     instruction through proven strategies and improved content as 
     described in subparagraph (A).
       ``(5) A description of how the applicant will integrate 
     technology across the curriculum and a time line for such 
     integration, including a description of how the applicant 
     will make effective use of new and emerging technologies and 
     teaching practices that are linked to such emerging 
     technologies to provide challenging content and improved 
     classroom instruction.
       ``(6) A description of how the applicant will coordinate 
     education technology activities funded under this subpart, 
     including professional development, with any such activities 
     provided under other Federal, State, and local programs, 
     including those authorized under title I, title II, title IV, 
     and the Individuals with Disabilities Education Act (20 
     U.S.C. 1400 et seq.) and the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2301 et seq.).
       ``(7) A description of the accountability measures and 
     process the applicant will use for the evaluation of the 
     extent to which funds provided under this subpart were 
     effective in integrating technology into school curriculum, 
     increasing the ability of teachers to teach, and enabling 
     students to meet challenging State academic content and 
     student academic achievement standards.
       ``(8) A description of how the applicant will encourage the 
     development and utilization of innovative strategies for the 
     delivery of specialized or rigorous academic courses and 
     curricula through the use of technology and distance 
     learning, particularly for those areas that would not 
     otherwise have access to such courses and curricula due to 
     geographical isolation or insufficient resources.
       ``(9) A description of what steps the applicant has taken, 
     or will take, to comply with section 5205(a)(1).
       ``(10) If requested by the State--
       ``(A) a description of how the applicant will use funds 
     provided under this subpart in a manner that is consistent 
     with any statewide education technology priorities that may 
     be established by the State consistent with this subpart; and
       ``(B) an assurance that any technology obtained with funds 
     provided under this subpart will have compatibility and 
     interconnectivity with technology obtained with funds 
     provided previously under title III (as in effect on the day 
     preceding the date of enactment of the No Child Left Behind 
     Act of 2001), as appropriate.

     ``SEC. 5215. STATE ACTIVITIES.

       ``(a) In General.--From funds made available under section 
     5212(a)(1), a State shall carry out activities and assist 
     local efforts to carry out the purposes of this subpart, 
     which may include the following activities:
       ``(1) Developing, or assisting applicants in the 
     development and utilization of, innovative strategies to 
     deliver rigorous academic programs through the use of 
     technology and distance learning, and providing other 
     technical assistance to such applicants throughout the State, 
     with a priority to high-need local educational agencies.
       ``(2) Establishing or supporting public-private 
     initiatives, such as interest-free or reduced-cost loans for 
     the acquisition of educational technology for high-need local 
     educational agencies and students attending schools served by 
     such agencies.
       ``(3) Assisting applicants in providing sustained and 
     intensive, high-quality professional development based on 
     scientifically based research in the integration of advanced 
     technologies (including emerging technologies) into 
     curriculum and in using those technologies to create new 
     learning environments, including training in the use of 
     technology to--
       ``(A) access data and resources to develop curricula and 
     instructional materials;
       ``(B) enable teachers--
       ``(i) to use the Internet to communicate with parents, 
     other teachers, principals, and administrators; and
       ``(ii) to retrieve Internet-based learning resources; and
       ``(C) lead to improvements in classroom instruction in the 
     core academic subject areas, which effectively prepare 
     students to meet challenging State academic content and 
     student academic achievement standards.
       ``(4) Assisting applicants in providing all students 
     (including students with disabilities and students with 
     limited English proficiency) and teachers with access to 
     educational technology.
       ``(5) Establishing or expanding access to technology in 
     areas served by high-need local educational agencies, with 
     special emphasis on access provided through technology 
     centers in partnership with libraries and with the support of 
     the private sector.
       ``(6) Developing enhanced performance measurement systems 
     to determine the effectiveness of education technology 
     programs funded under this subpart, particularly in 
     determining the extent to which education technology funded 
     under this subpart has been successfully integrated into 
     teaching strategies and school curriculum, has increased the 
     ability of teachers to teach, and has enabled students to 
     meet challenging State academic content and student academic 
     achievement standards.
       ``(7) Collaborating with other States on distance learning, 
     including making advanced courses available to students who 
     would otherwise not have access to such courses.
       ``(b) Limitation on Administrative Costs.--Of the 5 percent 
     of the State's allotment under section 5211 which may be used 
     to carry out activities under this section, not more than 40 
     percent may be used by the State for administrative costs.

     ``SEC. 5216. LOCAL ACTIVITIES.

       ``(a) Professional Development.--A recipient of funds made 
     available under section 5212(a)(2)(A) shall use not less than 
     20 percent of such funds to provide sustained and intensive, 
     high-quality professional development, consistent with 
     section 2033 (as applicable), based on scientifically based 
     research in the integration of advanced technologies 
     (including emerging technologies) into curriculum and in 
     using those technologies to create new learning environments, 
     including professional development in the use of technology 
     to--
       ``(1) access data and resources to develop curricula and 
     instructional materials;
       ``(2) enable teachers--
       ``(i) to use the Internet to communicate with parents, 
     other teachers, principals, and administrators; and
       ``(ii) to retrieve Internet-based learning resources; and
       ``(3) lead to improvements in classroom instruction in the 
     core academic subject areas, which effectively prepare 
     students to meet challenging State academic content and 
     student academic achievement standards.
       ``(b) Waiver.--Subsection (a) does not apply to a recipient 
     of funds under section 5212(a)(2)(A) that demonstrates, to 
     the satisfaction of the State, that such recipient already 
     provides sustained and intensive, high-quality professional 
     development based on scientifically based research in the 
     integration of technology (including emerging technologies) 
     into the curriculum.
       ``(c) Other Activities.--In addition to the activities 
     described in subsection (a), a recipient of funds distributed 
     by a State under section 5212(a)(2)(A) shall use such funds 
     to carry out other activities consistent with this subpart, 
     which may include the following:
       ``(1) Adapting or expanding existing and new applications 
     of technology to enable teachers to increase student academic 
     achievement through the use of teaching practices and 
     advanced technologies that are based on scientifically based 
     research and are designed to prepare students to meet 
     challenging State academic content and student academic 
     achievement standards, and for developing and utilizing 
     innovative strategies to deliver rigorous academic programs.
       ``(2) Expanding, acquiring, implementing, applying, and 
     maintaining education technology as a means to improve the 
     academic achievement of all students.
       ``(3) The establishment or expansion of initiatives, 
     particularly those involving public-private partnerships, 
     designed to increase access to technology for students and 
     teachers, with special emphasis on the access of high-need 
     local educational agencies to technology.
       ``(4) Using technology to promote parent and family 
     involvement, and support communications between students, 
     parents, and teachers.
       ``(5) Acquiring proven and effective curricula that include 
     integrated technology and are designed to help students 
     achieve challenging State academic content and student 
     academic achievement standards.
       ``(6) Using technology to collect, manage, and analyze data 
     to inform school improvement efforts.
       ``(7) Implementing enhanced performance measurement systems 
     to determine the effectiveness of education technology 
     programs funded under this subpart, particularly in 
     determining the extent to which education technology funded 
     under this subpart has been successfully integrated into 
     teaching strategies and school curriculum, has increased the 
     ability of teachers to teach, and has enabled students to 
     meet challenging State academic content and student academic 
     achievement standards.
       ``(8) Preparing one or more teachers in elementary and 
     secondary schools as technology leaders who are provided with 
     the means to serve as experts and train other teachers in the 
     effective use of technology.
       ``(9) Establishing or expanding access to technology in 
     areas served by high-need local educational agencies, with 
     special emphasis for access provided through technology 
     centers in partnership with libraries and with the support of 
     the private sector.

              ``Subpart 2--National Technology Activities

     ``SEC. 5221. NATIONAL ACTIVITIES.

       ``(a) In General.--Using funds made available under section 
     5203(b)(2), the Secretary--
       ``(1) shall--
       ``(A) conduct an independent, long-term study, utilizing 
     scientifically based research methods and control groups, on 
     the effect of educational technology on improving student 
     academic achievement;
       ``(B) include in the study an identification of uses of 
     educational technology (including how teachers can integrate 
     technology into the curricula) that have a measurable 
     positive impact on student achievement;
       ``(C) establish an independent review panel to advise the 
     Secretary on methodological and other issues that arise in 
     conducting this long-term study; and
       ``(D) submit to the Congress interim reports, when 
     appropriate, and a final report, to be submitted not later 
     than 6 months before the end of fiscal year 2006, on the 
     findings of the study;

[[Page 8958]]

       ``(2) may fund national technology initiatives that are 
     supported by scientifically based research and utilize 
     technology in education, through the competitive award of 
     grants or contracts, pursuant to a peer review process, to 
     States, local educational agencies, eligible local entities, 
     institutions of higher education, public agencies, and 
     private nonprofit or for-profit agencies; and
       ``(3) may provide technical assistance (directly or through 
     the competitive award of grants or contracts) to States, 
     local educational agencies, and other recipients of funds 
     under this part in order to assist such States, local 
     educational agencies, and other recipients to achieve the 
     purposes of this part.
       ``(b) National Technology Initiatives.--
       ``(1) Use of funds.--In funding national technology 
     initiatives under subsection (a)(2), the Secretary--
       ``(A) shall place a priority on projects that--
       ``(i) develop innovative models using electronic networks 
     or other forms of distance learning to provide challenging 
     courses that are otherwise not readily available to students 
     in a particular school district, particularly in rural areas; 
     or
       ``(ii) increase access to technology to students served by 
     high-need local educational agencies; and
       ``(B) shall, in order to identify effective uses of 
     educational technology that have a measurable positive impact 
     on student achievement and as specified in paragraph (3)--
       ``(i) develop tools and provide resources and support, 
     including technical assistance, for recipients of funds under 
     subsection (a)(2) to effectively evaluate their activities; 
     and
       ``(ii) disseminate the evaluations made under paragraph 
     (2)(A)(ii).
       ``(2) Requirements for recipients of funds.--
       ``(A) Application.--In order to receive a grant or contract 
     under subsection (a)(2), an entity shall submit an 
     application to the Secretary (at such time and in such form 
     as the Secretary may require), and shall include in the 
     application--
       ``(i) a description of the project proposed to be carried 
     out with the grant or contract and how it would carry out the 
     purposes of subsection (a)(2); and
       ``(ii) a detailed plan for an independent evaluation, 
     supported by scientifically based research principles, of the 
     project to determine the impact on the academic achievement 
     of students served under such project, as measured by 
     challenging State academic content and student academic 
     achievement standards.
       ``(B) Non-federal share.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     Secretary may require any recipient of a grant or contract 
     under subsection (a)(2) 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.
       ``(ii) Increase.--The Secretary may increase the non-
     Federal share required of a recipient of a grant or contract 
     under subsection (a)(2) after the first year such recipient 
     receives funds under such grant or contract.
       ``(iii) 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 
     subpart.
       ``(iv) Notice.--The Secretary shall publish, in the Federal 
     Register, the non-Federal share required under this 
     subparagraph.
       ``(3) Evaluation and dissemination.--The Secretary shall 
     make information on each project funded with a grant or 
     contract under subsection (a)(2) widely available to schools 
     and the general public, including through dissemination on 
     the Internet, in a timely and user-friendly manner. This 
     information shall, at a minimum, include--
       ``(A) upon the awarding of such a grant or contract under 
     subsection (a)(2), the identification of the grant or 
     contract recipient, the amount of the grant or contract, the 
     stated goals of the grant or contract, the methods by which 
     the grant or contract will be evaluated in meeting such 
     stated goals, and the timeline for meeting such goals;
       ``(B) not later than 3 months after the completion of the 
     first year of the project period, information on the progress 
     of the grant or contract recipient in carrying out the grant 
     or contract, including a detailed description of the use of 
     the funds provided, the extent to which the stated goals have 
     been reached, and the results (or progress of) the evaluation 
     of the project; and
       ``(C) not later than 3 months after the completion of the 
     second year of the project period (and updated thereafter as 
     appropriate), a followup to the information described in 
     subparagraph (B).

              ``Subpart 3--Ready to Learn, Ready to Teach

     ``SEC. 5231. READY TO LEARN TELEVISION.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary shall award grants to or 
     enter into contracts or cooperative agreements with eligible 
     entities described in paragraph (3) to--
       ``(A) develop, produce, and distribute educational and 
     instructional video programming for preschool and elementary 
     school children and their parents in order to facilitate 
     student academic achievement;
       ``(B) facilitate the development (directly or through 
     contracts with producers of children and family educational 
     television programming) of educational programming for 
     preschool and elementary school children and accompanying 
     support materials and services that directly promote the 
     effective use of such programming;
       ``(C) facilitate the development of programming and digital 
     content especially designed for nationwide distribution over 
     digital broadcasting channels and the Internet, containing 
     Ready to Learn-based children's programming and resources for 
     parents and caregivers;
       ``(D) enable such entities to contract with other entities 
     (such as public telecommunications entities) so that programs 
     under this section are disseminated and distributed by the 
     most appropriate distribution technologies to the widest 
     possible audience appropriate to be served by the 
     programming; and
       ``(E) develop and disseminate training and support 
     materials, including interactive programs and programs 
     adaptable to distance learning technologies which are 
     designed to--
       ``(i) promote school readiness; and
       ``(ii) promote the effective use of programming developed 
     under subparagraphs (B) and (C) among parents, Head Start 
     providers, Even Start and providers of family literacy 
     services, child care providers, early childhood development 
     personnel, and elementary school teachers, public libraries, 
     and after school program personnel caring for preschool and 
     elementary school children.
       ``(2) Availability.--In making grants, contracts, or 
     cooperative agreements under this subsection, the Secretary 
     shall ensure that recipients increase the effective use of 
     the programming under this section by making it widely 
     available with support materials, as appropriate, to young 
     children, their parents, child care workers, Head Start 
     providers, Even Start and providers of family literacy 
     services.
       ``(3) Eligible entities described.--In this section, an 
     `eligible entity' means a nonprofit entity (including a 
     public telecommunications entity) which is able--
       ``(A) to demonstrate a capacity for the development and 
     national distribution of educational and instructional 
     television programming of high quality which is accessible by 
     a large majority of disadvantaged preschool and elementary 
     school children; and
       ``(B) to demonstrate--
       ``(i) a capacity to contract with the producers of 
     children's television programming for the purpose of 
     developing educational television programming of high quality 
     which is accessible by a large majority of disadvantaged 
     preschool and elementary school children, and
       ``(ii) consistent with the entity's mission and nonprofit 
     nature, a capacity to negotiate such contracts in a manner 
     which returns to the entity an appropriate share of any 
     ancillary income from sales of any program-related products.
       ``(4) Cap on administrative costs.--An entity receiving a 
     grant, contract, or cooperative agreement from the Secretary 
     under this subsection may not use more than 5 percent of the 
     amounts received under the grant, contract, or cooperative 
     agreement for the expenses of administering the grant, 
     contract, or cooperative agreement.
       ``(5) Coordination of activities.--An entity receiving a 
     grant, contract, or cooperative agreement from the Secretary 
     under this subsection shall work with the Secretary and the 
     Secretary of Health and Human Services to--
       ``(A) maximize the utilization by preschool and elementary 
     school children of the programming under this section and to 
     make such programming widely available to federally funded 
     programs serving such populations; and
       ``(B) coordinate with Federal programs that have major 
     training components for early childhood development 
     (including Head Start, Even Start, family literacy services, 
     and State training activities funded under the Child Care 
     Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.)) 
     regarding the availability and utilization of materials 
     developed with funds provided under this section to enhance 
     parent and child care provider skills in early childhood 
     development and education.
       ``(b) Applications.--Any entity desiring a grant, contract, 
     or cooperative agreement under subsection (a) shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     reasonably require.
       ``(c) Report and Evaluation..--
       ``(1) Annual report by grant recipients to secretary.--Each 
     entity receiving funds under this section shall prepare and 
     submit to the Secretary an annual report which contains such 
     information as the Secretary may require. At a minimum, the 
     report shall describe the program activities undertaken with 
     funds received under this section, including information 
     regarding--
       ``(A) the programming that has been developed directly or 
     indirectly by the entity and the target population of the 
     programs developed;
       ``(B) the support and training materials that have been 
     developed to accompany the programming and the method by 
     which such materials are distributed to consumers and users 
     of the programming;
       ``(C) the means by which the programming has been 
     distributed, including the distance learning technologies 
     that have been utilized to make programming available and the 
     geographic distribution achieved through such technologies; 
     and
       ``(D) the initiatives undertaken by the entity to develop 
     public-private partnerships to secure non-Federal support for 
     the development and distribution and broadcast of educational 
     and instructional programming.
       ``(2) Report to congress.--The Secretary shall prepare and 
     submit to the relevant committees of Congress a biannual 
     report on the activities funded and carried out under this 
     section, and shall include in the report--

[[Page 8959]]

       ``(A) a summary of the programming developed using funds 
     provided under this section; and
       ``(B) a description of the training materials developed 
     using funds provided under this section, 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.
       ``(d) Funding Rule.--Not less than 60 percent of the 
     amounts authorized to be appropriated under section 5233 for 
     any fiscal year shall be used to carry out subparagraphs (B) 
     and (C) of subsection (a)(1).

     ``SEC. 5232. TELECOMMUNICATIONS PROGRAM.

       ``(a) In General.--The Secretary may carry out any of the 
     following activities:
       ``(1) Awarding grants to a nonprofit telecommunications 
     entity (or a partnership of such entities) for the purpose of 
     carrying out a national telecommunications-based program to 
     improve the teaching of core academic subjects and to assist 
     elementary and secondary school teachers in preparing all 
     students to achieve State academic content standards.
       ``(2) Awarding grants to or entering into contracts or 
     cooperative agreements with a local public telecommunications 
     entity to develop, produce, and distribute educational and 
     instructional video programming which is designed for use by 
     elementary and secondary school students, created for or 
     adaptable to State academic content standards, and capable of 
     distribution through digital broadcasting and school digital 
     networks.
       ``(b) Applications.--
       ``(1) In general.--Any telecommunications entity or 
     partnership of such entities desiring a grant under this 
     section shall submit an application to the Secretary.
       ``(2) Specific requirements for national 
     telecommunications-based program.--Each application for a 
     grant under subsection (a)(1) shall--
       ``(A) demonstrate that the applicant will use the existing 
     publicly funded telecommunications infrastructure, the 
     Internet, and school digital networks (where available) to 
     deliver video, voice, and data in an integrated service to 
     train teachers in the use of materials and learning 
     technologies for achieving State academic content standards;
       ``(B) assure that the program for which assistance is 
     sought will be conducted in cooperation with States as 
     appropriate, local educational agencies, and State or local 
     nonprofit public telecommunications entities;
       ``(C) assure that a significant portion of the benefits 
     available for elementary and secondary schools from the 
     program 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
       ``(D) contain such additional assurances as the Secretary 
     may reasonably require.
       ``(c) Approval of Applications; Number of Demonstration 
     Sites.--In approving applications under this section, the 
     Secretary shall assure that--
       ``(1) the national telecommunications-based program under 
     subsection (a)(1) is conducted at elementary and secondary 
     school sites in at least 15 States; and
       ``(2) grants under subsection (a)(2) are awarded on a 
     competitive basis and for a period of 3 years to entities 
     which--
       ``(A) enter into multiyear collaborative arrangements for 
     content development with State educational agencies, local 
     educational agencies, institutions of higher education, 
     businesses, or other agencies and organizations, and
       ``(B) contribute non-Federal matching funds (including 
     funds provided for transitions to digital broadcasting as 
     well as in-kind contributions) to the activities assisted 
     with the grant in an amount not less than 100 percent of the 
     amount of the grant.

                     ``PART C--CHARACTER EDUCATION

     ``SEC. 5301. CHARACTER EDUCATION PROGRAM.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary may make grants to State 
     educational agencies, local educational agencies, or 
     consortia of such agencies for the design and implementation 
     of character education programs that--
       ``(A) can be integrated into State academic content 
     standards for the core academic subjects; and
       ``(B) can be carried out in conjunction with other 
     educational reform efforts.
       ``(2) Duration.--Each grant under this section shall be 
     made for a period not to exceed 5 years, of which the grant 
     recipient may not use more than 1 year for planning and 
     program design.
       ``(b) Contracts Under Program.--
       ``(1) Evaluation.--Each agency or consortium receiving 
     assistance under this section may contract with outside 
     sources, including institutions of higher education and 
     private and nonprofit organizations (including religious 
     organizations), for the purposes of--
       ``(A) evaluating the program for which the assistance is 
     made available;
       ``(B) measuring the integration of such program into the 
     curriculum and teaching methods of schools where the program 
     is carried out; and
       ``(C) measuring the success of such program in fostering 
     the elements of character selected by the recipient under 
     subsection (c)(1).
       ``(2) Materials and program development.--Each agency or 
     consortium receiving assistance under this section may 
     contract with outside sources, including institutions of 
     higher education and private and nonprofit organizations 
     (including religious organizations), for assistance in--
       ``(A) developing secular curricula, materials, teacher 
     training, and other activities related to character 
     education; and
       ``(B) integrating secular character education into the 
     curriculum and teaching methods of schools where the program 
     is carried out.
       ``(c) Elements of Character.--
       ``(1) Selection.--
       ``(A) In general.--Each agency or consortium receiving 
     assistance under this section may select the elements of 
     character that will be taught under the program for which the 
     assistance is made available.
       ``(B) Consideration of views.--In selecting elements of 
     character under paragraph (1), the agency or consortium shall 
     consider the views of the parents or guardians of the 
     students to be taught under the program.
       ``(2) Example elements.--Elements of character selected 
     under this subsection may include any of the following:
       ``(A) Trustworthiness.
       ``(B) Respect.
       ``(C) Responsibility.
       ``(D) Fairness.
       ``(E) Caring.
       ``(F) Citizenship.
       ``(G) Giving.
       ``(d) Application.--
       ``(1) In general.--Each agency or consortium seeking 
     assistance under this section shall submit an application to 
     the Secretary at such time and in such manner as the 
     Secretary may require.
       ``(2) Required information.--Each application for 
     assistance under this section shall include information 
     that--
       ``(A) demonstrates that the program for which the 
     assistance is sought has clear goals and objectives that are 
     based on scientifically based research;
       ``(B) describes the activities that will be carried out 
     with the assistance and how such activities will meet the 
     goals and objectives described in paragraph (1); and
       ``(C) describes how the program for which the assistance is 
     sought will be linked to other efforts to improve educational 
     achievement, including--
       ``(i) broader educational reforms that are being instituted 
     by the applicant or its partners; and
       ``(ii) applicable State academic content standards for 
     student achievement.
       ``(e) Selection of Recipients.--
       ``(1) Peer review.--
       ``(A) In general.--In selecting agencies or consortia to 
     receive assistance under this section from among the 
     applicants for such assistance, the Secretary shall use a 
     peer review process that includes the participation of 
     experts in the field of character education.
       ``(B) Use of funds.--The Secretary may use funds 
     appropriated under this section for the cost of carrying out 
     peer reviews under this paragraph.
       ``(2) Selection criteria.--Each selection under paragraph 
     (1) shall be made on the basis of the quality of the 
     application submitted, taking into consideration such factors 
     as--
       ``(A) the extent of parental, student, and community 
     involvement in the program; and
       ``(B) the likelihood that the goals of the program will be 
     realistically achieved.
       ``(3) Equitable distribution.--In making selections under 
     this subsection, the Secretary shall ensure, to the extent 
     practicable under paragraph (2), that the programs assisted 
     under this section are equitably distributed among the 
     geographic regions of the United States, and among urban, 
     suburban, and rural areas.
       ``(f) Evaluations.--
       ``(1) In general.--As a condition of receiving assistance 
     under this section, the Secretary shall require each agency 
     or consortium receiving such assistance to transmit to the 
     Secretary, not later than 5 years after such receipt, a 
     report containing an evaluation of each program assisted.
       ``(2) Attainment of goals and objectives.--In conducting an 
     evaluation referred to in paragraph (1), each agency or 
     consortium shall evaluate the degree to which each program 
     for which assistance was made available attained the goals 
     and objectives for the program as described in the 
     application for assistance submitted under subsection (d).
       ``(3) Dissemination.--The Secretary shall--
       ``(A) make each evaluation received under this subsection 
     publicly available; and
       ``(B) provide public notice (through such means as the 
     Internet, the media, and public agencies) of the availability 
     of each such evaluation after it is received by the 
     Secretary.
       ``(g) Matching Funds.--As a condition of receiving 
     assistance under this section, the Secretary may require that 
     each agency or consortium receiving such assistance provide 
     matching funds from non-Federal sources.

     ``SEC. 5302. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $25,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of fiscal years 2003 through 2006.''.

     ``PART D--ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS

     ``SEC. 5401. ELEMENTARY AND SECONDARY SCHOOL COUNSELING 
                   PROGRAMS.

       ``(a) Findings.--Congress finds as follows:
       ``(1) The Surgeon General reported in January 2001 that 1 
     in 10 children suffer from mental illnesses severe enough to 
     impair development and fewer than 1 in 5 children get 
     treatment for mental illnesses.

[[Page 8960]]

       ``(2) The Surgeon General reported that the burden of 
     suffering by children with mental health needs and their 
     families has created a health crisis in this country. Growing 
     numbers of children are suffering needlessly because their 
     emotional, behavioral, and developmental needs are not being 
     met by the very institutions and systems that were created to 
     take care of them.
       ``(3) As a result of the concern about the failure of the 
     healthcare system to reach children and adolescents with 
     mental illnesses, there is currently great interest in 
     developing new models for the delivery of mental health and 
     counseling services that can reach underserved groups 
     efficiently.
       ``(4) Schools are a sensible point of intervention because 
     of their central position in many children's lives and 
     development, especially when families are unable to assume a 
     leading role.
       ``(5) School-based mental health and counseling services 
     allow for the identification of children in need of treatment 
     much earlier in their development.
       ``(6) Establishing mental health and counseling services in 
     schools provides access to underserved youth with or at risk 
     of emotional or behavioral problems.
       ``(7) The Surgeon General's 2000 report on youth violence 
     concludes that effective treatment can divert a significant 
     proportion of delinquent and violent youths from future 
     violence and crime.
       ``(8) Mental health and counseling services can play an 
     important role in violence prevention on all levels, 
     including preventing problem behaviors from developing; 
     identifying and serving specific, at-risk populations; and 
     reducing the deleterious effects of violence on victims and 
     witnesses.
       ``(9) An evaluation of the model program for the elementary 
     school counseling demonstration program established pursuant 
     to this section prior to the date of enactment of the 
     Elementary and Secondary Counseling Improvement Act of 2001 
     found that the number of referrals to the principal's office 
     decreased by nearly half, the use of force, weapons, and 
     threatening of others also decreased, school suspensions were 
     reduced, and students felt safer.
       ``(10) The report produced by the Institute of Medicine, 
     `Schools and Health: Our Nation's Investment', recommended a 
     student-to-school counselor ratio of 250:1, student-to-school 
     psychologist ratio of 1000:1, and a student-to-school social 
     worker ratio of 800:1. The United States average student-to-
     counselor ratio is 551:1. Ratios for school psychologists and 
     school social workers also exceed the recommended levels.
       ``(b) Grants Authorized.--
       ``(1) In general.--The Secretary may use funds provided 
     under this section to award grants to local educational 
     agencies to enable such agencies to establish or expand 
     elementary and secondary school counseling programs which 
     meet the requirements of subsection (c).
       ``(2) Priority.--In awarding grants under this section, the 
     Secretary shall give special consideration to applications 
     describing programs which--
       ``(A) demonstrate the greatest need for new or additional 
     counseling services among children in the schools served by 
     the applicant, in part, by providing information on current 
     ratios of students to school counselors, students to school 
     social workers, and students to school psychologists;
       ``(B) propose the most promising and innovative approaches 
     for initiating or expanding school counseling; and
       ``(C) show the greatest potential for replication and 
     dissemination.
       ``(3) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall ensure an equitable 
     geographic distribution among the regions of the United 
     States and among urban, suburban, and rural local educational 
     agencies.
       ``(4) Duration.--A grant under this section shall be 
     awarded for a period not to exceed 3 years.
       ``(5) Maximum grant.--A grant awarded under this program 
     shall not exceed $400,000 for any fiscal year.
       ``(6) Supplement.--Assistance made available under this 
     section shall be used to supplement, and may not supplant, 
     other Federal, State, or local funds used for providing 
     school-based counseling and mental health services to 
     students.
       ``(c) Requirements for Counseling Programs.--Each program 
     funded under this section shall--
       ``(1) be comprehensive in addressing the counseling and 
     educational needs of all students;
       ``(2) use a developmental, preventive approach to 
     counseling;
       ``(3) increase the range, availability, quantity, and 
     quality of counseling services in the elementary and 
     secondary schools of the local educational agency;
       ``(4) expand counseling services through qualified school 
     counselors, school psychologists, school social workers, and 
     child and adolescent psychiatrists;
       ``(5) use innovative approaches to increase children's 
     understanding of peer and family relationships, work and 
     self, decisionmaking, or academic and career planning, or to 
     improve peer interaction;
       ``(6) provide counseling services in settings that meet the 
     range of needs of students;
       ``(7) include inservice training, including training for 
     teachers in appropriate identification and intervention 
     techniques for disciplining and teaching students at risk of 
     violent behavior, by school counselors, school psychologists, 
     school social workers, and child and adolescent 
     psychiatrists;
       ``(8) involve parents of participating students in the 
     design, implementation, and evaluation of a counseling 
     program;
       ``(9) involve community groups, social service agencies, or 
     other public or private entities in collaborative efforts to 
     enhance the program;
       ``(10) evaluate annually the effectiveness and outcomes of 
     the counseling services and activities assisted under this 
     section;
       ``(11) ensure a team approach to school counseling in the 
     elementary and secondary schools of the local educational 
     agency by working toward ratios recommended by the American 
     School Health Association of one school counselor to 250 
     students, one school social worker to 800 students, and one 
     school psychologist to 1,000 students; and
       ``(12) ensure that school counselors, school psychologists, 
     school social workers, or child and adolescent psychiatrists 
     paid from funds made available under this section spend a 
     majority of their time at the school in activities directly 
     related to the counseling process.
       ``(d) Limitation on Administrative Costs.--Not more than 3 
     percent of the amounts made available under this section in 
     any fiscal year may be used for administrative costs to carry 
     out this section.
       ``(e) Definitions.--For purposes of this section--
       ``(1) 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) 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) the term `school social worker' means an individual 
     who--
       ``(A) holds a master's degree in social work from a program 
     accredited by the Council on Social Work Education; and
       ``(B) is licensed or certified by the State in which 
     services are provided; or
       ``(C) in the absence of such State licensure or 
     certification, possesses a national credential or 
     certification as a `school social work specialist' granted by 
     an independent professional organization; and
       ``(4) the term `child and adolescent psychiatrist' means an 
     individual who--
       ``(A) possesses State medical licensure; and
       ``(B) has completed residency training programs in general 
     and child and adolescent psychiatry.
       ``(f) Report.--Not later than 1 year after assistance is 
     made available under this section, the Secretary shall make 
     publicly available the information from applicants regarding 
     the ratios of students to school counselors, students to 
     school social workers, and students to school psychologists.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of fiscal years 2002 
     through 2006.

                      ``PART E--MENTORING PROGRAMS

     ``SEC. 5501. DEFINITIONS.

       ``In this part, the following definitions apply:
       ``(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. 5502. 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;

[[Page 8961]]

       ``(4) to reduce the dropout rate of such children; and
       ``(5) to reduce juvenile delinquency and involvement in 
     gangs by such children.

     ``SEC. 5503. 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. 5504. 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 
     enactment of the Mentoring for Success Act, 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. 5505. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     section 5503 $50,000,000 for fiscal year 2002 and such sums 
     as may be necessary for each of fiscal years 2003 through 
     2006.''.
                      TITLE VI--IMPACT AID PROGRAM

     SEC. 601. PAYMENTS UNDER SECTION 8002 WITH RESPECT TO FISCAL 
                   YEARS IN WHICH INSUFFICIENT FUNDS ARE 
                   APPROPRIATED.

       (a) Foundation Payments for Pre-1995 Recipients.--Section 
     8002(h)(1) (20 U.S.C. 7702(h)(1)) is amended--
       (1) in subparagraph (A), by striking ``and was eligible to 
     receive a payment under section 2 of the Act of September 30, 
     1950'' and inserting ``and that filed, or has been determined 
     pursuant to statute to have filed a timely application, and 
     met, or has been determined pursuant to statute to meet, the 
     eligibility requirements of section 2(a)(1)(C) of the Act of 
     September 30, 1950''; and
       (2) in subparagraph (B), by striking ``(or if the local 
     educational agency was not eligible to receive a payment 
     under such section 2 for fiscal

[[Page 8962]]

     year 1994'' and inserting ``(or if the local educational 
     agency did not meet, or has not been determined pursuant to 
     statute to meet, the eligibility requirements of section 
     2(a)(1)(C) of the Act of September 30, 1950 for fiscal year 
     1994''.
       (b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 
     U.S.C. 7702(h)(2)) is amended--
       (1) in subparagraph (A), by adding at the end before the 
     period ``, or whose application for fiscal year 1995 was 
     determined pursuant to statute to be timely filed for 
     purposes of payments for subsequent fiscal years''; and
       (2) in subparagraph (B)(ii), by striking ``for each local 
     educational agency that received a payment under this section 
     for fiscal year 1995'' and inserting ``for each local 
     educational agency described in subparagraph (A)''.
       (c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C. 
     7702(h)(4)(B)) is amended--
       (1) by striking ``(in the same manner as percentage shares 
     are determined for local educational agencies under paragraph 
     (2)(B)(ii))'' and inserting ``(by dividing the maximum amount 
     that the agency is eligible to receive under subsection (b) 
     by the total of the maximum amounts for all such agencies)''; 
     and
       (2) by striking ``, except that for the purpose of 
     calculating a local educational agency's assessed value of 
     the Federal property'' and inserting ``, except that, for 
     purposes of calculating a local educational agency's maximum 
     amount under subsection (b)''.
       (d) Application for Payment.--Notwithstanding any other 
     provision of law, the Secretary shall treat as timely filed 
     an application under section 8002 (20 U.S.C. 7702) from 
     Academy School District 20, Colorado, for a payment for 
     fiscal year 1999, and shall process that application from 
     funds appropriated for that section for fiscal year 2001.

     SEC. 602. 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)) 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''.

     SEC. 603. CONSTRUCTION.

       (a) School Facility Emergency and Modernization Grants.--
     Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as 
     follows:
       ``(b) School Facility Emergency and Modernization Grants 
     Authorized.--
       ``(1) In general.--From 60 percent of the amount 
     appropriated for each fiscal year under section 8014(e), the 
     Secretary--
       ``(A) shall award emergency grants in accordance with this 
     subsection to eligible local educational agencies to enable 
     the agencies to carry out emergency repairs of school 
     facilities; and
       ``(B) shall award modernization grants in accordance with 
     this subsection to eligible local educational agencies to 
     enable the agencies to carry out the modernization of school 
     facilities.
       ``(2) Priority.--In approving applications from local 
     educational agencies for emergency grants and modernization 
     grants under this subsection, the Secretary shall give 
     priority to applications for emergency grants and, among such 
     applications for emergency grants, shall give priority to 
     those applications of local educational agencies based on the 
     severity of the emergency.
       ``(3) Eligibility requirements.--
       ``(A) Emergency grants.--A local educational agency is 
     eligible to receive an emergency grant under this subsection 
     only if--
       ``(i) the agency (or in the case of a local educational 
     agency that does not have the authority to tax or issue 
     bonds, the agency's fiscal agent)--

       ``(I) has no practical capacity to issue bonds;
       ``(II) has minimal capacity to issue bonds and is at 75 
     percent of the agency's limit of bonded indebtedness; or
       ``(III) does not meet the requirements of subclauses (I) 
     and (II) but is eligible to receive funds under section 
     8003(b)(2) for the fiscal year; and

       ``(ii) the agency is eligible to receive assistance under 
     subsection (a) for the fiscal year and has a school facility 
     emergency, as determined by the Secretary, that poses a 
     health or safety hazard to the students and school personnel 
     assigned to the school facility.
       ``(B) Modernization grants.--A local educational agency is 
     eligible to receive a modernization grant under this 
     subsection only if--
       ``(i) the agency (or in the case of a local educational 
     agency that does not have the authority to tax or issue 
     bonds, the agency's fiscal agent) meets the requirements of 
     subclause (I), (II), or (III) of subparagraph (A)(i);
       ``(ii) the agency is eligible to receive assistance under 
     section 8002 for the fiscal year and has an assessed value of 
     real property per student that may be taxed for school 
     purposes that is less than the average of the assessed value 
     of real property per student that may be taxed for school 
     purposes in the State in which the local educational agency 
     is located; and
       ``(iii) the agency has facility needs resulting from 
     actions of the Federal Government, such as enrollment 
     increases due to the expansion of Federal activities, housing 
     privatization, or the acquisition of Federal property.
       ``(C) Rule of construction.--For purposes of subparagraph 
     (A)(i), a local educational agency--
       ``(i) has no practical capacity to issue bonds if the total 
     assessed value of real property that may be taxed for school 
     purposes is less than $25,000,000; and
       ``(ii) has minimal capacity to issue bonds if the total 
     assessed value of real property that may be taxed for school 
     purposes is not less than $25,000,000 but not more than 
     $50,000,000.
       ``(4) Award criteria.--In awarding emergency grants and 
     modernization grants under this subsection, the Secretary 
     shall consider the following factors:
       ``(A) The ability of the local educational agency to 
     respond to the emergency, or to pay for the modernization 
     project, as the case may be, as measured by--
       ``(i) the agency's level of bonded indebtedness;
       ``(ii) the assessed value of real property per student that 
     may be taxed for school purposes compared to the average of 
     the assessed value of real property per student that may be 
     taxed for school purposes in the State in which the agency is 
     located;
       ``(iii) the agency's total tax rate for school purposes 
     (or, if applicable, for capital expenditures) compared to the 
     average total tax rate for school purposes (or the average 
     capital expenditure tax rate, if applicable) in the State in 
     which the agency is located; and
       ``(iv) funds that are available to the agency, from any 
     other source, including section 8007(a), that may be used for 
     capital expenditures.
       ``(B) The percentage of property in the agency that is 
     nontaxable due to the presence of the Federal Government.
       ``(C) The number and percentages of children described in 
     subparagraphs (A), (B), (C), and (D) of section 8003(a)(1) 
     served in the school facility with the emergency or served in 
     the school facility proposed for modernization, as the case 
     may be.


       ``(D) In the case of an emergency grant, the severity of 
     the emergency, as measured by the threat that the condition 
     of the school facility poses to the health, safety, and well-
     being of students.
       ``(E) In the case of a modernization grant--
       ``(i) the severity of the need for modernization, as 
     measured by such factors as--

       ``(I) overcrowding, as evidenced by the use of portable 
     classrooms; or
       ``(II) the agency's inability to maximize the use of 
     technology or offer a curriculum in accordance with 
     contemporary State standards due to the physical limitations 
     of the current school facility; and

       ``(ii) the age of the school facility proposed for 
     modernization.
       ``(5) Other award provisions.--
       ``(A) General provisions.--
       ``(i) Limitations on amount of funds.--

       ``(I) In general.--The amount of funds provided under an 
     emergency grant or a modernization grant awarded under this 
     subsection to a local educational agency that meets the 
     requirements of subclause (II) or (III) of paragraph 
     (3)(A)(i)--

       ``(aa) shall not exceed 50 percent of the total cost of the 
     project to be assisted under this subsection; and
       ``(bb) shall not exceed $3,000,000 during any 5-year 
     period.

       ``(II) In-kind contributions.--A local educational agency 
     may use in-kind contributions to meet the matching 
     requirement of subclause (I)(aa).

       ``(ii) Prohibitions on use of funds.--A local educational 
     agency may not use funds provided under an emergency grant or 
     modernization grant awarded under this subsection for--

       ``(I) a project for a school facility for which the agency 
     does not have full title or other interest; or
       ``(II) stadiums or other facilities primarily used for 
     athletic contests, exhibitions, or other events for which 
     admission is charged to the general public.

       ``(iii) Supplement not supplant.--A local educational 
     agency shall use funds provided under an emergency grant or 
     modernization grant awarded under this subsection only to 
     supplement the amount of funds that would, in the absence of 
     the Federal funds provided under the grant, be made available 
     from non-Federal sources to carry out emergency repairs of 
     school facilities or to carry out the modernization of school 
     facilities, as the case may be, and not to supplant such 
     funds.
       ``(B) Emergency grants.--
       ``(i) Prohibition on use of funds.--A local educational 
     agency that is awarded an emergency grant under this 
     subsection may not use amounts under the grant for the 
     complete or partial replacement of an existing school 
     facility unless such replacement is less expensive or more 
     cost-effective to correct the identified emergency.
       ``(ii) Carry-over of certain applications.--In the case of 
     a local educational agency that applies for an emergency 
     grant under this subsection for a fiscal year and does not 
     receive the grant for the fiscal year, the Secretary--

       ``(I) shall, upon the request of the agency, treat the 
     application as an application for an emergency grant under 
     this subsection for the subsequent fiscal year in accordance 
     with the priority requirements of paragraph (2); and
       ``(II) shall allow the agency to amend or otherwise update 
     the application, as appropriate.

       ``(6) Application.--A local educational agency that desires 
     to receive an emergency grant or a modernization grant under 
     this subsection shall submit an application to the Secretary 
     at such time, in such manner, and accompanied by such 
     information as the Secretary may require. Each application 
     shall contain the following:
       ``(A) The information described in clauses (i) through (iv) 
     of paragraph (4)(A) and subparagraphs (B) and (C) of 
     paragraph (4).
       ``(B) In the case of an application for an emergency 
     grant--
       ``(i) a description of the school facility deficiency that 
     poses a health or safety hazard to the occupants of the 
     facility and a description of how the deficiency will be 
     repaired; and

[[Page 8963]]

       ``(ii) a signed statement from an appropriate local 
     official certifying that a deficiency in the school facility 
     threatens the health or safety of the occupants of the 
     facility or that prevents the use of all or a portion of the 
     building.
       ``(C) In the case of an application for a modernization 
     grant--
       ``(i) an explanation of the need for the school facility 
     modernization project; and
       ``(ii) the date on which original construction of the 
     facility to be modernized was completed.
       ``(D) A description of the project for which a grant under 
     this subsection would be used, including a cost estimate for 
     the project.
       ``(E) A description of the interest in, or authority over, 
     the school facility involved, such as an ownership interest 
     or a lease arrangement.
       ``(F) Such other information and assurances as the 
     Secretary may reasonably require.
       ``(7) Report.--
       ``(A) In general.--Not later than January 1 of each year, 
     the Secretary shall prepare and submit to the appropriate 
     congressional committees a report that contains a 
     justification for each grant awarded under this subsection 
     for the prior fiscal year.
       ``(B) Definition.--In this paragraph, the term `appropriate 
     congressional committees' means--
       ``(i) the Committee on Appropriations and the Committee on 
     Education and the Workforce of the House of Representatives; 
     and
       ``(ii) the Committee on Appropriations and the Committee on 
     Health, Education, Labor and Pensions of the Senate.''.
       (b) Authorization of Appropriations.--Section 8014(e) (20 
     U.S.C. 7714(e)) is amended by striking ``for each of the 
     three succeeding fiscal years'' and inserting ``for fiscal 
     year 2001, $150,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each of the four succeeding fiscal 
     years''.

     SEC. 604. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE 
                   AID.

       Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amended by 
     inserting after ``section 8003(a)(2)(B)'' the following: 
     ``and, with respect to a local educational agency that 
     receives a payment under section 8003(b)(2), the amount in 
     excess of the amount that the agency would receive if the 
     agency were deemed to be an agency eligible to receive a 
     payment under section 8003(b)(1) and not section 
     8003(b)(2)''.

     SEC. 605. AUTHORIZATION OF APPROPRIATIONS.

       Section 8014 (20 U.S.C. 7714) is amended by striking 
     ``three succeeding fiscal years'' each place it appears and 
     inserting ``six succeeding fiscal years''.

     SEC. 606. REPEAL OF EXISTING TITLE VI; TRANSFER AND 
                   REDESIGNATION OF PROGRAM.

       (a) Repeal of Existing Title VI.--Title VI (20 U.S.C. 7301 
     et seq.) is repealed.
       (b) Transfer and Redesignation of Program.--(1) Title VIII 
     (20 U.S.C. 7701 et seq.)--
       (A) is transferred from the current placement of the title 
     and inserted after title V; and
       (B) is redesignated as title VI.
       (2) Title VI (as redesignated by paragraph (1)(B)) is 
     amended--
       (A) by redesignating sections 8001 through 8005 (20 U.S.C. 
     7701-7705) as sections 6001 through 6005, respectively; and
       (B) by redesignating sections 8007 through 8014 (20 U.S.C. 
     7707-7714) as sections 6006 through 6013, respectively.
       (c) Conforming Amendments.--(1) Title VI (as redesignated 
     by subsection (b)) is amended by striking ``8002'', ``8003'', 
     ``8004'', ``8005'', ``8008'', ``8009'', ``8011'', ``8013'', 
     and ``8014'' each place such terms appear and inserting 
     ``6002'', ``6003'', ``6004'', ``6005'', ``6007'', ``6008'', 
     ``6010'', ``6012'', and ``6013'', respectively.
       (2) Section 6005 (as redesignated by subsection (b)) is 
     amended in the heading by striking ``8002 and 8003'' and 
     inserting ``6002 and 6003''.
       (3) Section 6009(c)(1) (as redesignated by subsection (b)) 
     is amended in the heading by striking ``8003'' and inserting 
     ``6003''.
       (d) Savings Provision.--Funds appropriated for title VIII 
     of the Elementary and Secondary Education Act of 1965 (as in 
     effect on the day before the date of the enactment of this 
     Act) shall be available for use under title VI of such Act, 
     as added by this section.
                       TITLE VII--ACCOUNTABILITY

     SEC. 701. FLEXIBILITY AND ACCOUNTABILITY.

       Title VII is amended to read as follows:
              ``TITLE VII--FLEXIBILITY AND ACCOUNTABILITY

   ``PART A--STATE ACCOUNTABILITY FOR IMPROVING ACADEMIC ACHIEVEMENT

     ``SEC. 7101. STATE FINANCIAL AWARDS.

       ``(a) In General.--Beginning in the 2002-2003 school year, 
     the Secretary shall make in accordance with this section 
     financial awards, to be known as `Achievement in Education 
     Awards', to States that have made significant progress in 
     improving educational achievement.
       ``(b) Criteria of Progress.--For the purposes of subsection 
     (a), the Secretary shall judge progress using each of the 
     following criteria, giving the greatest weight to the 
     criterion described in paragraph (1):
       ``(1) The progress of the State's students from 
     economically disadvantaged families and students from racial 
     and ethnic minority groups--
       ``(A) on the assessments administered by the State under 
     section 1111; and
       ``(B) beginning in the 2003-2004 school year, on 
     assessments of 4th and 8th grade reading and mathematics 
     under--
       ``(i) the State assessments carried out as part of the 
     National Assessment of Educational Progress under section 411 
     of the National Education Statistics Act of 1994 (20 U.S.C. 
     9010); or
       ``(ii) an assessment selected by the State that--

       ``(I) is administered annually;
       ``(II) yields high quality data that are valid and 
     reliable;
       ``(III) meets widely recognized professional and technical 
     standards, including specific and rigorous test security 
     procedures;
       ``(IV) is developed by an entity independent from each 
     State and local government agency in the State in a manner 
     that protects against any conflict of interest ;
       ``(V) has no test questions that are identical to the test 
     questions used by the assessment used to meet the State 
     assessment requirements under section 1111;
       ``(VI) provides results in such a form that they may be 
     expressed in terms of achievement levels that are consistent 
     with the achievement levels (basic, proficient, and advanced) 
     set forth in section 1111;
       ``(VII) provides results in such a form that they may be 
     disaggregated, at a minimum, according to income level and 
     major racial and ethnic group; and
       ``(VIII) is administered to all students or to a 
     representative sample of students in the 4th and 8th grades 
     statewide, with a sample size that is sufficiently large to 
     produce statistically significant estimates of statewide 
     student achievement.

       ``(2) The overall improvement in the achievement of all of 
     the State's students, as measured by--
       ``(A) the assessments administered by the State under 
     section 1111; and
       ``(B) beginning in the 2003-2004 school year, the 
     assessments described in paragraph (1)(B).
       ``(3) The progress of the State in improving the English 
     proficiency of students who enter school with limited English 
     proficiency.
       ``(c) Other Considerations.--In judging a State's progress 
     under subsection (a), the Secretary may also consider--
       ``(1) the progress of the State in increasing the 
     percentage of students who graduate from secondary schools; 
     and
       ``(2) the progress of the State in increasing the 
     percentage of students who take advanced coursework (such as 
     Advanced Placement or International Baccalaureate courses) 
     and who pass the exams associated with such coursework.
       ``(d) Amount.--The Secretary shall determine the amount of 
     an award under subsection (a) based on--
       ``(1) the school-age population of the State; and
       ``(2) the degree of progress shown by a State with respect 
     to the criteria set forth in subsections (b) and (c).
       ``(e) Use of Funds.--
       ``(1) In general.--A State receiving a financial award 
     under this section shall use the proceeds of such award only 
     to make financial awards to public elementary and secondary 
     schools in the State that have made the most significant 
     progress with respect to the criteria described in subsection 
     (b).
       ``(2) Use by schools.--In consultation with the school's 
     teachers, the principal of each elementary or secondary 
     school that receives a financial award from a State under 
     this section shall use the proceeds of such award at the 
     school for any educational purpose permitted under State law.
       ``(3) Responsible state agency.--The State educational 
     agency for each State shall be the agency responsible for 
     making awards under this subsection.
       ``(f) Peer Review.--In selecting States for awards under 
     subsection (a), the Secretary shall use a peer-review 
     process.
       ``(g) Costs of Independent Assessments.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall make grants to States to offset the costs of 
     administering assessments administered by the States to meet 
     the requirements of (b)(1)(B)(ii).
       ``(2) Limitations.--Grants made by the Secretary in any 
     year to a State under paragraph (1)--
       ``(A) may be awarded only to offset the costs of a single 
     administration of an assessment described in such paragraph 
     in the State for that year; and
       ``(B) may not exceed the costs of administering in the 
     State for that year the State assessments that would be 
     carried out under the National Assessment of Educational 
     Progress described in subsection (b)(1)(B).
       ``(3) Allocation.--The Secretary may determine the 
     appropriate methodology of allocating grants to States under 
     this subsection.

     ``SEC. 7102. STATE SANCTIONS.

       ``(a) Failure to Make Progress.--
       ``(1) Loss of administrative funds.--The Secretary shall 
     reduce, by 30 percent, the amount of funding that a State may 
     reserve for State administration under the State formula 
     grant programs authorized by this Act if the Secretary 
     determines that, for 2 consecutive years--
       ``(A) the State's students from economically disadvantaged 
     families and students from racial and ethnic minority groups 
     failed to make adequate yearly progress on the assessments 
     administered by the State under section 1111; and
       ``(B) the State's students from economically disadvantaged 
     families and students from racial and ethnic minority groups 
     failed to make measurable progress in reading and 
     mathematics, as measured by the 4th and 8th grade assessments 
     described in subsection (b)(1)(B).
       ``(2) Further reductions.--In each of the first 2 years 
     after the years described in paragraph (1), the Secretary may 
     increase the reduction described in such paragraph by any

[[Page 8964]]

     amount not more than a total of an additional 45 percent.
       ``(b) Other Failures.--In addition to any action taken 
     under subsection (a)(1) or (a)(2), the Secretary shall 
     reduce, by 20 percent, the amount of funding that a State may 
     reserve for State administration under the State formula 
     grant programs authorized by this Act if the Secretary 
     determines that, for 2 consecutive years, the State failed to 
     make adequate yearly progress--
       ``(1) with respect to the achievement of children with 
     limited English proficiency under section 
     1111(b)(2)(C)(iii)(II)(dd); or
       ``(2) with respect to the acquisition of English language 
     proficiency by children with limited English proficiency 
     under section 1111(b)(2)(C)(iii)(III).
       ``(c) Use of Funds for Improvement.--
       ``(1) In general.--The Secretary shall require that any 
     funds reduced under this section be allocated by the State to 
     local educational agencies in the State for school 
     improvement purposes described in section 1116.
       ``(2) Treatment of funds.--Funds described in paragraph (1) 
     shall not count toward the amounts that are required to be 
     reserved by a State for school improvement under section 
     1003.

     ``SEC. 7103. DEVELOPMENT OF STATE STANDARDS AND ASSESSMENTS.

       ``(a) In General.--The Secretary shall make financial 
     awards to States to enable the States--
       ``(1) to pay the costs of the development of the additional 
     State assessments and standards required by section 1111(b), 
     including the costs of working in voluntary partnerships with 
     other States, at the sole discretion of each such State, in 
     developing such assessments and standards if a State chooses 
     to do so; and
       ``(2) if a State has developed the assessments and 
     standards referred to in paragraph (1), to administer such 
     assessments or to carry out other activities described in 
     this title and other activities related to ensuring 
     accountability for results in the State's schools and local 
     educational agencies, such as--
       ``(A) developing academic content and achievement standards 
     and aligned assessments in other subjects not required by 
     Section 1111;
       ``(B) developing assessments of English language 
     proficiency necessary to comply with section 1111(b)(7);
       ``(C) assuring the continued validity and reliability of 
     State assessments;
       ``(D) refining State assessments to ensure their continued 
     alignment with the State's academic content standards and to 
     improve the alignment of curricula and instruction materials;
       ``(E) providing for multiple measures to increase the 
     reliability and validity of student and school 
     classifications;
       ``(F) strengthening the capacity of local educational 
     agencies and schools to provide all students the opportunity 
     to increase educational achievement;
       ``(G) expanding the range of accommodations available to 
     students with limited English proficiency and students with 
     disabilities to improve the rates of inclusion of such 
     students; and
       ``(H) improving the dissemination of information on student 
     achievement and school performance to parents and the 
     community.
       ``(b) Bonuses.--The Secretary shall make a one-time bonus 
     payment to each State that completes the development of the 
     assessments described in subsection (a) ahead of the deadline 
     set forth in section 1111.

     ``SEC. 7104. FUNDING.

       ``(a) Authorization of appropriations.--
       ``(1) Awards and bonus payments.--For the purposes of 
     making awards under section 7101 and bonus payments under 
     section 7103(b), there are authorized to be appropriated 
     $40,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of fiscal years 2003 through 2006.
       ``(2) Grants for independent assessments; administration of 
     state assessments under naep.--For the purposes of making 
     grants to offset the costs of independent assessments under 
     section 7101(g) and for the purposes of administering the 
     State assessments carried out under the National Assessment 
     of Educational Progress referred to in section 
     7101(b)(1)(B)(i), there are authorized to be appropriated to 
     the Secretary $69,000,000 for fiscal year 2002 and such sums 
     as may be necessary for each of fiscal years 2003 through 
     2006.
       ``(3) Development and administration of state standards and 
     assessments.--For the purposes of carrying out subsection 
     7103(a), there are authorized to be appropriated $400,000,000 
     for fiscal year 2002 and such sums as may be necessary for 
     each of the fiscal years 2003 through 2005.
       ``(b) Allocation of Appropriated Funds.--From each of the 
     amounts appropriated under subsection (a), the Secretary 
     shall allocate to the States--
       ``(1) 50 percent based on the relative number of children 
     aged 5 to 17 in each State; and
       ``(2) 50 percent allocated equally among the States.

 ``PART B--FUNDING FLEXIBILITY FOR STATE AND LOCAL EDUCATIONAL AGENCIES

     ``SEC. 7201. SHORT TITLE.

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

     ``SEC. 7202. PURPOSE.

       ``The purpose of this part 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. 7203. TRANSFERABILITY OF FUNDS.

       ``(a) Transfers by States.--
       ``(1) In general.--In accordance with this part, a State 
     may transfer up 50 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.
       ``(B) Subpart 1 of part A of title IV.
       ``(C) Part A or B of title V.
       ``(2) Supplemental funds for title I.--In accordance with 
     this part, 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 part, a local 
     educational agency (except a local educational agency 
     identified for improvement under section 1116(c)(2) or 
     subject to corrective action under section 1116(c)(9)) 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(c)(2) may transfer in accordance with this part 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 part, 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) Title II.
       ``(B) Subpart 1 of Part A of title IV.
       ``(C) Part A of title V or section 5212(2)(A).
       ``(c) No Transfer of Title I Funds.--A State or a local 
     educational agency may not transfer under this part 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.
       ``(e) Applicable rules.--
       ``(1) In general.--Except as otherwise provided in this 
     part, 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 
     8503(c), if such transfer transfers funds from a program that 
     provides for the participation of students, teachers, or 
     other educational personnel, from private schools.''.
                     TITLE VIII--GENERAL PROVISIONS

     SEC. 801. GENERAL PROVISIONS.

       The Elementary and Secondary Education Act of 1965, as 
     amended by this Act, is further amended by adding at the end 
     of title VII the following:
                    ``TITLE VIII--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

     ``SEC. 8101. DEFINITIONS.

       ``Except as otherwise provided, for the purposes of this 
     Act, the following terms have the following meanings:
       ``(1) Average daily attendance--
       ``(A) Except as provided otherwise by State law or this 
     paragraph, the term `average daily attendance' means--
       ``(i) the aggregate number of days of attendance of all 
     students during a school year; divided by
       ``(ii) the number of days school is in session during such 
     school year.
       ``(B) The Secretary shall permit the conversion of average 
     daily membership (or other similar data) to average daily 
     attendance for local

[[Page 8965]]

     educational agencies in States that provide State aid to 
     local educational agencies on the basis of average daily 
     membership or such other data.
       ``(C) If the local educational agency in which a child 
     resides makes a tuition or other payment for the free public 
     education of the child in a school located in another school 
     district, the Secretary shall, for purposes of this Act--
       ``(i) consider the child to be in attendance at a school of 
     the agency making such payment; and
       ``(ii) not consider the child to be in attendance at a 
     school of the agency receiving such payment.
       ``(D) If a local educational agency makes a tuition payment 
     to a private school or to a public school of another local 
     educational agency for a child with disabilities, as defined 
     in paragraph (5), the Secretary shall, for the purposes of 
     this Act, consider such child to be in attendance at a school 
     of the agency making such payment.
       ``(2) Average per-pupil expenditure.--The term `average 
     per-pupil expenditure' means, in the case of a State or of 
     the United States--
       ``(A) without regard to the source of funds--
       ``(i) the aggregate current expenditures, during the third 
     fiscal year preceding the fiscal year for which the 
     determination is made (or, if satisfactory data for that year 
     are not available, during the most recent preceding fiscal 
     year for which satisfactory data are available) of all local 
     educational agencies in the State or, in the case of the 
     United States for all States (which, for the purpose of this 
     paragraph, means the 50 States and the District of Columbia); 
     plus
       ``(ii) any direct current expenditures by the State for the 
     operation of such agencies; divided by
       ``(B) the aggregate number of children in average daily 
     attendance to whom such agencies provided free public 
     education during such preceding year.
       ``(3) Beginning teacher.--The term `beginning teacher' 
     means an educator in a public school who has been teaching 
     less than a total of 3 complete school years.
       ``(4) Child.--The term `child' means any person within the 
     age limits for which the State provides free public 
     education.
       ``(5) Child with disability.--The term `child with a 
     disability' means a child--
       ``(A) with mental retardation, hearing impairments 
     (including deafness), speech or language impairments, visual 
     impairments (including blindness), serious emotional 
     disturbance (hereinafter referred to as `emotional 
     disturbance'), orthopedic impairments, autism, traumatic 
     brain injury, other health impairments, or specific learning 
     disabilities; and
       ``(B) who, by reason thereof, needs special education and 
     related services.
       ``(6) Community-based organization.--The term `community-
     based organization' means a public or private nonprofit 
     organization of demonstrated effectiveness that--
       ``(A) is representative of a community or significant 
     segments of a community; and
       ``(B) provides educational or related services to 
     individuals in the community.
       ``(7) Consolidated local application.--The term 
     `consolidated local application' means an application 
     submitted by a local educational agency pursuant to section 
     14305.
       ``(8) Consolidated local plan.--The term `consolidated 
     local plan' means a plan submitted by a local educational 
     agency pursuant to section 14305.
       ``(9) Consolidated state application.--The term 
     `consolidated State application' means an application 
     submitted by a State educational agency pursuant to section 
     14302.
       ``(10) Consolidated state plan.--The term `consolidated 
     State plan' means a plan submitted by a State educational 
     agency pursuant to section 14302.
       ``(11) County.--The term `county' means one of the 
     divisions of a State used by the Secretary of Commerce in 
     compiling and reporting data regarding counties.
       ``(12) Covered program.--The term `covered program' means 
     each of the programs authorized by--
       ``(A) part A of title I;
       ``(B) part B of title I;
       ``(C) part C of title I;
       ``(D) part D of title I;
       ``(E) part F of title I;
       ``(F) part G of title I;
       ``(G) part A of title II;
       ``(H) part A of title III;
       ``(I) part A of title V;
       ``(J) part B of title V; and
       ``(K) part A of title IV:
       ``(13) Current expenditures.--The term `current 
     expenditures' means expenditures for free public education--
       ``(A) including expenditures for administration, 
     instruction, attendance, pupil transportation services, 
     operation and maintenance of plant, fixed charges, and net 
     expenditures to cover deficits for food services and student 
     body activities; but
       ``(B) not including expenditures for community services, 
     capital outlay, and debt service, or any expenditures made 
     from funds received under title I and part A of title IV.
       ``(14) Department.--The term `Department' means the 
     Department of Education.
       ``(15) Educational service agency.--The term `educational 
     service agency' means a regional public multiservice agency 
     authorized by State statute to develop, manage, and provide 
     services or programs to local educational agencies.
       ``(16) Effective schools program.--The term `effective 
     schools program' means a school-based program that may 
     encompass preschool through secondary school levels and that 
     has the objectives of--
       ``(A) promoting school-level planning, instructional 
     improvement, and staff development;
       ``(B) increasing the academic achievement levels of all 
     children and particularly educationally disadvantaged 
     children; and
       ``(C) achieving as ongoing conditions in the school the 
     following factors identified through scientifically based 
     research as distinguishing effective from ineffective 
     schools:
       ``(i) Strong and effective administrative and instructional 
     leadership that creates consensus on instructional goals and 
     organizational capacity for instructional problem solving.
       ``(ii) Emphasis on the acquisition of basic and advanced 
     academic skills.
       ``(iii) A safe and orderly school environment that allows 
     teachers and pupils to focus their energies on academic 
     achievement.
       ``(iv) Continuous review of students and programs to 
     evaluate the effects of instruction.
       ``(17) Elementary school.--The term `elementary school' 
     means a nonprofit institutional day or residential school, 
     including a public elementary charter school, that provides 
     elementary education, as determined under State law.
       ``(18) Essential components of reading instruction.--The 
     term `essential components of reading instruction' means 
     explicit and systematic instruction in--
       ``(A) phonemic awareness;
       ``(B) phonics;
       ``(C) vocabulary development;
       ``(D) reading fluency; and
       ``(E) reading comprehension strategies.
       ``(19) Family literacy services.--The term `family literacy 
     services' means services provided to participants on a 
     voluntary basis that are of sufficient intensity in terms of 
     hours, and of sufficient duration, to make sustainable 
     changes in a family, and that integrate all of the following 
     activities:
       ``(A) Interactive literacy activities between parents and 
     their children.
       ``(B) Training for parents regarding how to be the primary 
     teacher for their children and full partners in the education 
     of their children.
       ``(C) Parent literacy training that leads to economic self-
     sufficiency.
       ``(D) An age-appropriate education to prepare children for 
     success in school and life experiences.
       ``(20) Free public education.--The term `free public 
     education' means education that is provided--
       ``(A) at public expense, under public supervision and 
     direction, and without tuition charge; and
       ``(B) as elementary or secondary school education as 
     determined under applicable State law, except that such term 
     does not include any education provided beyond grade 12.
       ``(21) Fully qualified.--The term `fully qualified'--
       ``(A) when used with respect to a public elementary or 
     secondary school teacher means that the teacher has obtained 
     State certification as a teacher (including certification 
     obtained through alternative routes to certification) or 
     passed the State teacher licensing exam and holds a license 
     to teach in such State, except that when used with respect to 
     any teacher teaching in a public charter school, means that 
     the teacher meets the requirements set forth in the State's 
     public charter school law; and
       ``(B) when used with respect to--
       ``(i) an elementary school teacher, means that the teacher 
     holds a bachelor's degree and demonstrates knowledge and 
     teaching skills in reading, writing, mathematics, science, 
     and other areas of the elementary school curriculum; and
       ``(ii) a middle or secondary school teacher, means that the 
     teacher holds a bachelor's degree and demonstrates a high 
     level of competency in all subject areas in which he or she 
     teaches through--

       ``(I) a passing level of performance on a rigorous State or 
     local academic subject areas test; or
       ``(II) completion of an academic major in each of the 
     subject areas in which he or she provides instruction.

       ``(22) Gifted and talented.--The term `gifted and 
     talented', when used with respect to students, children or 
     youth, means students, children or youth who give evidence of 
     high performance capability in areas such as intellectual, 
     creative, artistic, or leadership capacity, or in specific 
     academic fields, and who require services or activities not 
     ordinarily provided by the school in order to fully develop 
     such capabilities.
       ``(23) Institution of higher education.--The term 
     `institution of higher education' has the meaning given that 
     term in section 101 of the Higher Education Act of 1965.
       ``(24) Limited english proficient student.--The term 
     `limited English proficient student' means an individual aged 
     5 through 17 enrolled in an elementary school or secondary 
     school--
       ``(A) who--
       ``(i) was not born in the United States or whose native 
     language is a language other than English;
       ``(ii)(I) is a Native American or Alaska Native, or a 
     native resident of the outlying areas; and
       ``(II) comes from an environment where a language other 
     than English has had a significant impact on such 
     individual's level of English language proficiency; or
       ``(iii) is migratory, whose native language is a language 
     other than English, and who comes from an environment where a 
     language other than English is dominant; and

[[Page 8966]]

       ``(B) who has sufficient difficulty speaking, reading, 
     writing, or understanding the English language, and whose 
     difficulties may deny the individual--
       ``(i) the ability to meet the State's proficient level of 
     performance on State assessments described in section 
     1111(b)(4) in core academic subjects; or
       ``(ii) the opportunity to participate fully in society.
       ``(25) Local educational agency.--(A) 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 or secondary 
     schools in a city, county, township, school district, or 
     other political subdivision of a State, or for such 
     combination of school districts or counties as are recognized 
     in a State as an administrative agency for its public 
     elementary or secondary schools.
       ``(B) The term includes any other public institution or 
     agency having administrative control and direction of a 
     public elementary or secondary school.
       ``(C) The term includes an elementary or secondary school 
     funded by the Bureau of Indian Affairs but only to the extent 
     that such inclusion makes such school eligible for programs 
     for which specific eligibility is not provided to such school 
     in another provision of law and such school does not have a 
     student population that is smaller than the student 
     population of the local educational agency receiving 
     assistance under this Act with the smallest student 
     population, except that such school shall not be subject to 
     the jurisdiction of any State educational agency other than 
     the Bureau of Indian Affairs.
       ``(D) The term includes educational service agencies and 
     consortia of such agencies.
       ``(26) Mentoring.--The term `mentoring' means a program in 
     which an adult works with a child or youth on a 1-to-1 basis, 
     establishing a supportive relationship, providing academic 
     assistance, and introducing the child or youth to new 
     experiences that enhance the child or youth's ability to 
     excel in school and become a responsible citizen.
       ``(27) Native american and native american language.--The 
     terms `Native American' and `Native American language' shall 
     have the same meaning given such terms in section 103 of the 
     Native American Languages Act of 1990.
       ``(28) Other staff.--The term `other staff' means pupil 
     services personnel, librarians, career guidance and 
     counseling personnel, education aides, and other 
     instructional and administrative personnel.
       ``(29) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, and through 
     fiscal year 2003 and for the purpose of any discretionary 
     grant program, includes the freely associated states of the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau.
       ``(30) Parent.--The term `parent' includes a legal 
     guardian, or other person standing in loco parentis (such as 
     a grandparent or stepparent with whom the child lives, or a 
     person who is legally responsible for the child's welfare).
       ``(31) Pupil services personnel; pupil services.--(A) The 
     term `pupil services personnel' means school counselors, 
     school social workers, school psychologists, and other 
     qualified professional personnel involved in providing 
     assessment, diagnosis, counseling, educational, therapeutic, 
     and other necessary services (including related services as 
     such term is defined in section 602(22) of the Individuals 
     with Disabilities Education Act) as part of a comprehensive 
     program to meet student needs.
       ``(B) The term `pupil services' means the services provided 
     by pupil services personnel.
       ``(32) Reading.--The term `reading' means a complex system 
     of deriving meaning from print that requires all of the 
     following:
       ``(A) Skills and knowledge to understand how phonemes, or 
     speech sounds are connected in print.
       ``(B) Ability to decode unfamiliar words.
       ``(C) Ability to read fluently.
       ``(D) Sufficient background information and vocabulary to 
     foster reading comprehensions.
       ``(E) Development of appropriate active strategies to 
     construct meaning from print.
       ``(F) Development and maintenance of a motivation to read.
       ``(33) Rigorous diagnostic reading and screening assessment 
     tools.--The term `rigorous diagnostic reading and screening 
     assessment tools' means a diagnostic reading assessment 
     that--
       ``(A) is valid, reliable, and grounded on scientifically 
     based reading research;
       ``(B) measures progress in developing phonemic awareness 
     and phonics skills, vocabulary, reading fluency, and reading 
     comprehension;
       ``(C) identifies students who may be at risk for reading 
     failure or who are having difficulty reading; and
       ``(D) are used to improve instruction.
       ``(34) Scientifically based research.--The term 
     `scientifically based research'--
       ``(A) means the application of rigorous, systematic, and 
     objective procedures to obtain valid knowledge relevant to 
     education activities and programs; and
       ``(B) shall include research that--
       ``(i) employs systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) involves rigorous data analyses that are adequate to 
     test the stated hypotheses and justify the general 
     conclusions drawn;
       ``(iii) relies on measurements or observational methods 
     that provide valid data across evaluators and observers and 
     across multiple measurements and observations;
       ``(iv) is evaluated using randomized experiments in which 
     individuals, entities, programs, or activities are randomly 
     assigned to different variations (including a control 
     condition) to compare the relative effects of the variations; 
     and
       ``(v) has been accepted by a peer-reviewed journal or 
     approved by a panel of independent experts through a 
     comparably rigorous, objective, and scientific review.
       ``(35) Secondary school.--The term `secondary school' means 
     a nonprofit institutional day or residential school, 
     including a public secondary charter school, that provides 
     secondary education, as determined under State law, except 
     that such term does not include any education beyond grade 
     12.
       ``(36) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(37) State.--The term `State' means each of the 50 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and each of the outlying areas.
       ``(38) State educational agency.--The term `State 
     educational agency' means the agency primarily responsible 
     for the State supervision of public elementary and secondary 
     schools.
       ``(39) Technology.--The term `technology' means the latest 
     state-of-the-art technology products and services.

     ``SEC. 8102. APPLICABILITY OF TITLE.

       ``Parts B, C, D, and E of this title do not apply to title 
     VI of this Act.

     ``SEC. 8103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS 
                   OPERATED SCHOOLS.

       ``For purposes of any competitive program under this Act, a 
     consortia of schools operated by the Bureau of Indian 
     Affairs, a school operated under a contract or grant with the 
     Bureau of Indian Affairs in consortia with another contract 
     or grant school or tribal or community organization, or a 
     Bureau of Indian Affairs school in consortia with an 
     institution of higher education, a contract or grant school 
     and tribal or community organization shall be given the same 
     consideration as a local educational agency.

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

     ``SEC. 8201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR 
                   ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

       ``(a) Consolidation of Administrative Funds.--
       ``(1) In general.--A State educational agency may 
     consolidate the amounts specifically made available to such 
     agency for State administration under one or more of the 
     programs under paragraph (2) if such State educational agency 
     can demonstrate that the majority of such agency's resources 
     are derived from non-Federal sources.
       ``(2) Applicability.--This section applies to any program 
     under this Act under which funds are authorized to be used 
     for administration, and such other programs as the Secretary 
     may designate.
       ``(b) Use of funds.--
       ``(1) In general.--A State educational agency shall use the 
     amount available under this section for the administration of 
     the programs included in the consolidation under subsection 
     (a).
       ``(2) Additional uses.--A State educational agency may also 
     use funds available under this section for administrative 
     activities designed to enhance the effective and coordinated 
     use of funds under programs included in the consolidation 
     under subsection (a), such as--
       ``(A) the coordination of such programs with other Federal 
     and non-Federal programs;
       ``(B) the establishment and operation of peer-review 
     mechanisms under this Act;
       ``(C) the administration of this title;
       ``(D) the dissemination of information regarding model 
     programs and practices;
       ``(E) technical assistance under any program under this 
     Act;
       ``(F) State level activities designed to carry out this 
     title;
       ``(G) training personnel engaged in audit and other 
     monitoring activities; and
       ``(H) implementation of the Cooperative Audit Resolution 
     and Oversight Initiative of the Department of Education.
       ``(c) Records.--A State educational agency that 
     consolidates administrative funds under this section shall 
     not be required to keep separate records, by individual 
     program, to account for costs relating to the administration 
     of programs included in the consolidation under subsection 
     (a).
       ``(d) Review.--To determine the effectiveness of State 
     administration under this section, the Secretary may 
     periodically review the performance of State educational 
     agencies in using consolidated administrative funds under 
     this section and take such steps as the Secretary finds 
     appropriate to ensure the effectiveness of such 
     administration.
       ``(e) Unused administrative funds.--If a State educational 
     agency does not use all of the funds available to such agency 
     under this section for administration, such agency may use 
     such funds during the applicable period of availability as 
     funds available under one or more programs included in the 
     consolidation under subsection (a).

     ``SEC. 8202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

       ``A State educational agency that also serves as a local 
     educational agency, in such agency's

[[Page 8967]]

     applications or plans under this Act, shall describe how such 
     agency will eliminate duplication in the conduct of 
     administrative functions.

     ``SEC. 8203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

       ``(a) General Authority.--In accordance with regulations of 
     the Secretary and for any fiscal year, a local educational 
     agency, with the approval of its State educational agency, 
     may consolidate and use for the administration of one or more 
     programs under this Act (or such other programs as the 
     Secretary shall designate) not more than the percentage, 
     established in each such program, of the total available for 
     the local educational agency under such programs.
       ``(b) State Procedures.--Within one-year from the date of 
     enactment of the No Child Left Behind Act of 2001, a State 
     educational agency shall, in collaboration with local 
     educational agencies in the State, establish procedures for 
     responding to requests from local educational agencies to 
     consolidate administrative funds under subsection (a) and for 
     establishing limitations on the amount of funds under such 
     programs that may be used for administration on a 
     consolidated basis.
       ``(c) Conditions.--A local educational agency that 
     consolidates administrative funds under this section for any 
     fiscal year shall not use any other funds under the programs 
     included in the consolidation for administration for that 
     fiscal year.
       ``(d) Uses of Administrative Funds.--A local educational 
     agency that consolidates administrative funds under this 
     section may use such consolidated funds for the 
     administration of such programs and for uses, at the school 
     district and school levels, comparable to those described in 
     section 8201(b)(2).
       ``(e) Records.--A local educational agency that 
     consolidates administrative funds under this section shall 
     not be required to keep separate records, by individual 
     program, to account for costs relating to the administration 
     of such programs included in the consolidation.

     ``SEC. 8204. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE 
                   INTERIOR FUNDS.

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

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

     ``SEC. 8301. PURPOSE.

       ``The purposes of this part are to improve teaching and 
     learning through greater coordination between programs and to 
     provide greater flexibility to State and local authorities by 
     allowing the consolidation of State and local plans, 
     applications, and reporting.

     ``SEC. 8302. OPTIONAL CONSOLIDATED STATE PLANS OR 
                   APPLICATIONS.

       ``(a) General Authority.--
       ``(1) Simplification.--In order to simplify application 
     requirements and reduce the burden for States under this Act, 
     the Secretary, in accordance with subsection (b), shall 
     establish procedures and criteria under which a State 
     educational agency, in consultation with the State's 
     Governor, may submit a consolidated State plan or a 
     consolidated State application meeting the requirements of 
     this section for--
       ``(A) any programs under this Act in which the State 
     participates; and
       ``(B) such other programs as the Secretary may designate.
       ``(2) Consolidated applications and plans.--A State 
     educational agency, in consultation with the State's 
     Governor, that submits a consolidated State plan or a 
     consolidated State application under this section shall not 
     be required to submit a separate State plan or application 
     for a program included in the consolidated State plan or 
     application.
       ``(b) Collaboration.--
       ``(1) In general.--In establishing criteria and procedures 
     under this section, the Secretary shall collaborate with 
     Governors, State educational agencies and, as appropriate, 
     with other State agencies, local educational agencies, public 
     and private nonprofit agencies, organizations, and 
     institutions, private schools, and representatives of 
     parents, students, and teachers.
       ``(2) Contents.--Through the collaborative process 
     described in paragraph (1), the Secretary shall establish, 
     for each program under the Act to which this section applies, 
     the descriptions, information, assurances, and other material 
     required to be included in a consolidated State plan or 
     consolidated State application.
       ``(3) Necessary materials.--The Secretary shall require 
     only descriptions, information, assurances, and other 
     materials that are absolutely necessary for the consideration 
     of the consolidated State plan or consolidated State 
     application.

     ``SEC. 8303. CONSOLIDATED REPORTING.

       ``In order to simplify reporting requirements and reduce 
     reporting burdens, the Secretary shall establish procedures 
     and criteria under which a State educational agency, in 
     consultation with the State's Governor, may submit a 
     consolidated State annual report. Such report shall contain 
     information about the programs included in the report, 
     including the State's performance under those programs, and 
     other matters as the Secretary determines, such as monitoring 
     activities. Such a report shall take the place of separate 
     individual annual reports for the programs subject to it.

     ``SEC. 8304. GENERAL APPLICABILITY OF STATE EDUCATIONAL 
                   AGENCY ASSURANCES.

       ``(a) Assurances.--A State educational agency, in 
     consultation with the State's Governor, that submits a 
     consolidated State plan or consolidated State application 
     under this Act, whether separately or under section 8302, 
     shall have on file with the Secretary a single set of 
     assurances, applicable to each program for which such plan or 
     application is submitted, that provides that--
       ``(1) each such program will be administered in accordance 
     with all applicable statutes, regulations, program plans, and 
     applications;
       ``(2)(A) the control of funds provided under each such 
     program and title to property acquired with program funds 
     will be in a public agency, in a nonprofit private agency, 
     institution, or organization, or in an Indian tribe if the 
     law authorizing the program provides for assistance to such 
     entities; and
       ``(B) the public agency, nonprofit private agency, 
     institution, or organization, or Indian tribe will administer 
     such funds and property to the extent required by the 
     authorizing law;
       ``(3) the State will adopt and use proper methods of 
     administering each such program, including--
       ``(A) the enforcement of any obligations imposed by law on 
     agencies, institutions, organizations, and other recipients 
     responsible for carrying out each program;
       ``(B) the correction of deficiencies in program operations 
     that are identified through audits, monitoring, or 
     evaluation; and
       ``(C) the adoption of written procedures for the receipt 
     and resolution of complaints alleging violations of law in 
     the administration of such programs;
       ``(4) the State will cooperate in carrying out any 
     evaluation of each such program conducted by or for the 
     Secretary or other Federal officials;
       ``(5) the State will use such fiscal control and fund 
     accounting procedures as will ensure proper disbursement of, 
     and accounting for, Federal funds paid to the State under 
     each such program;
       ``(6) the State will--
       ``(A) make reports to the Secretary as may be necessary to 
     enable the Secretary to perform the Secretary's duties under 
     each such program; and
       ``(B) maintain such records, provide such information to 
     the Secretary, and afford access to the records as the 
     Secretary may find necessary to carry out the Secretary's 
     duties; and
       ``(7) before the plan or application was submitted to the 
     Secretary, the State has afforded a reasonable opportunity 
     for public comment on the plan or application and has 
     considered such comment.
       ``(b) GEPA Provision.--Section 441 of the General Education 
     Provisions Act shall not apply to programs under this Act.

     ``SEC. 8305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

       ``(a) General Authority.--A local educational agency 
     receiving funds under more than one program under this Act 
     may submit plans or applications to the Governor and State 
     educational agency under such programs on a consolidated 
     basis.
       ``(b) Required Consolidated Plans or Applications.--A State 
     that has an approved consolidated State plan or application 
     under section 8302 may require local educational agencies in 
     the State receiving funds under more than one program 
     included in the consolidated State plan or consolidated State 
     application to submit consolidated local plans or 
     applications under such programs, but may not require such 
     agencies to submit separate plans.
       ``(c) Collaboration.--A Governor and State educational 
     agency shall collaborate with local educational agencies in 
     the State in establishing procedures for the submission of 
     the consolidated State plans or consolidated State 
     applications under this section.
       ``(d) Necessary Materials.--The State shall require only 
     descriptions, information, assurances, and other material 
     that are absolutely necessary for the consideration of the 
     local educational agency plan or application.

     ``SEC. 8306. OTHER GENERAL ASSURANCES.

       ``(a) Assurances.--Any applicant other than a State that 
     submits a plan or application under this Act, shall have on 
     file with the State a single set of assurances, applicable to 
     each program for which a plan or application is submitted, 
     that provides that--
       ``(1) each such program will be administered in accordance 
     with all applicable statutes, regulations, program plans, and 
     applications;

[[Page 8968]]

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

                           ``PART D--WAIVERS

     ``SEC. 8401. WAIVERS OF STATUTORY AND REGULATORY 
                   REQUIREMENTS.

       ``(a) In General.--Except as provided in subsection (c), 
     the Secretary may waive any statutory or regulatory 
     requirement of this Act or the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 for a State educational 
     agency, local educational agency, Indian tribe, or school 
     through a local educational agency, that--
       ``(1) receives funds under a program authorized by this 
     Act; and
       ``(2) requests a waiver under subsection (b).
       ``(b) Request for Waiver.--
       ``(1) In general.--A State educational agency, local 
     educational agency, or Indian tribe which desires a waiver 
     shall submit a waiver application to the Secretary that--
       ``(A) indicates each Federal program affected and each 
     statutory or regulatory requirement requested to be waived;
       ``(B) describes the purpose and overall expected results of 
     waiving each such requirement;
       ``(C) describes, for each school year, specific, 
     measurable, educational goals for the State educational 
     agency and for each local educational agency, Indian tribe, 
     or school that would be affected by the waiver; and
       ``(D) explains why the waiver will assist the State 
     educational agency and each affected local educational 
     agency, Indian tribe, or school in reaching such goals.
       ``(2) Additional information.--Such requests--
       ``(A) may provide for waivers of requirements applicable to 
     State educational agencies, local educational agencies, 
     Indian tribes, and schools; and
       ``(B) shall be developed and submitted--
       ``(i)(I) by local educational agencies (on behalf of such 
     agencies and schools) to State educational agencies; and
       ``(II) by State educational agencies (on behalf of, and 
     based upon the requests of, local educational agencies) to 
     the Secretary; or
       ``(ii) by Indian tribes (on behalf of schools operated by 
     such tribes) to the Secretary.
       ``(3) General requirements.--
       ``(A) In the case of a waiver request submitted by a State 
     educational agency acting in its own behalf, the State 
     educational agency shall--
       ``(i) provide all interested local educational agencies in 
     the State with notice and a reasonable opportunity to comment 
     on the request;
       ``(ii) submit the comments to the Secretary; and
       ``(iii) provide notice and information to the public 
     regarding the waiver request in the manner that the applying 
     agency customarily provides similar notices and information 
     to the public.
       ``(B) In the case of a waiver request submitted by a local 
     educational agency that receives funds under this Act--
       ``(i) such request shall be reviewed by the State 
     educational agency and be accompanied by the comments, if 
     any, of such State educational agency; and
       ``(ii) notice and information regarding the waiver request 
     shall be provided to the public by the agency requesting the 
     waiver in the manner that such agency customarily provides 
     similar notices and information to the public.
       ``(c) Restrictions.--The Secretary shall not waive under 
     this section any statutory or regulatory requirements 
     relating to--
       ``(1) the allocation or distribution of funds to States, 
     local educational agencies, or other recipients of funds 
     under this Act;
       ``(2) maintenance of effort;
       ``(3) comparability of services;
       ``(4) use of Federal funds to supplement, not supplant, 
     non-Federal funds;
       ``(5) equitable participation of private school students 
     and teachers;
       ``(6) parental participation and involvement;
       ``(7) applicable civil rights requirements;
       ``(8) the requirement for a charter school under part B of 
     title IV; or
       ``(9) the prohibitions regarding--
       ``(A) State aid in section 8502;
       ``(B) use of funds for religious worship or instruction in 
     section 8507; and
       ``(C) activities in section 8513.
       ``(d) Duration and Extension of Waiver.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     duration of a waiver approved by the Secretary under this 
     section may be for a period not to exceed 5 years.
       ``(2) Extension.--The Secretary may extend the period 
     described in paragraph (1) if the Secretary determines that--
       ``(A) the waiver has been effective in enabling the State 
     or affected recipients to carry out the activities for which 
     the waiver was requested and the waiver has contributed to 
     improved student performance; and
       ``(B) such extension is in the public interest.
       ``(e) Reports.--
       ``(1) Local waiver.--A local educational agency that 
     receives a waiver under this section shall at the end of the 
     second year for which a waiver is received under this 
     section, and each subsequent year, submit a report to the 
     State educational agency that--
       ``(A) describes the uses of such waiver by such agency or 
     by schools;
       ``(B) describes how schools continued to provide assistance 
     to the same populations served by the programs for which 
     waivers are requested; and
       ``(C) evaluates the progress of such agency and of schools 
     in improving the quality of instruction or the academic 
     performance of students.
       ``(2) State waiver.--A State educational agency that 
     receives reports required under paragraph (1) shall annually 
     submit a report to the Secretary that is based on such 
     reports and contains such information as the Secretary may 
     require.
       ``(3) Indian tribe waiver.--An Indian tribe that receives a 
     waiver under this section shall annually submit a report to 
     the Secretary that--
       ``(A) describes the uses of such waiver by schools operated 
     by such tribe; and
       ``(B) evaluates the progress of such schools in improving 
     the quality of instruction or the academic performance of 
     students.
       ``(4) Report to congress.--Beginning in fiscal year 2002 
     and each subsequent year, the Secretary shall submit to the 
     Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Health, Education, Labor 
     and Pensions of the Senate a report--
       ``(A) summarizing the uses of waivers by State educational 
     agencies, local educational agencies, Indian tribes, and 
     schools; and
       ``(B) describing whether such waivers--
       ``(i) increased the quality of instruction to students; or
       ``(ii) improved the academic performance of students.
       ``(f) Termination of Waivers.--The Secretary shall 
     terminate a waiver under this section if the Secretary 
     determines, after notice and an opportunity for a hearing, 
     that the performance of the State or other recipient affected 
     by the waiver has been inadequate to justify a continuation 
     of the waiver or if the waiver is no longer necessary to 
     achieve its original purposes.
       ``(g) Publication.--A notice of the Secretary's decision to 
     grant each waiver under subsection (a) shall be published in 
     the Federal Register and the Secretary shall provide for the 
     dissemination of such notice to State educational agencies, 
     interested parties, including educators, parents, students, 
     advocacy and civil rights organizations, and the public.

                      ``PART E--UNIFORM PROVISIONS

     ``SEC. 8501. MAINTENANCE OF EFFORT.

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

[[Page 8969]]

       ``(2) a precipitous decline in the financial resources of 
     the local educational agency.

     ``SEC. 8502. PROHIBITION REGARDING STATE AID.

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

     ``SEC. 8503. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND 
                   TEACHERS.

       ``(a) Private School Participation.--
       ``(1) In general.--Except as otherwise provided in this 
     Act, to the extent consistent with the number of eligible 
     children in areas served by a State educational agency, local 
     educational agency, educational service agency, consortium of 
     such agencies, or another entity receiving financial 
     assistance under a program specified in subsection (b), who 
     are enrolled in private elementary and secondary schools in 
     areas served by such agency, consortium or entity, such 
     agency, consortium or entity shall, after timely and 
     meaningful consultation with appropriate private school 
     officials, provide such children and their teachers or other 
     educational personnel, on an equitable basis, special 
     educational services or other benefits that address their 
     needs under such program.
       ``(2) Secular, neutral, and nonideological services or 
     benefits.--Educational services or other benefits, including 
     materials and equipment, provided under this section, shall 
     be secular, neutral, and nonideological.
       ``(3) Special rule.--Educational services and other 
     benefits provided under this section for such private school 
     children, teachers, and other educational personnel shall be 
     equitable in comparison to services and other benefits for 
     public school children, teachers, and other educational 
     personnel participating in such program and shall be provided 
     in a timely manner.
       ``(4) Expenditures.--Expenditures for educational services 
     and other benefits provided under this section to eligible 
     private school children, their teachers, and other 
     educational personnel serving such children shall be equal, 
     taking into account the number and educational needs of the 
     children to be served, to the expenditures for participating 
     public school children.
       ``(5) Provision of services.--Such agency, consortium or 
     entity described in subsection (a)(1) of this section may 
     provide such services directly or through contracts with 
     public and private agencies, organizations, and institutions.
       ``(b) Applicability.--
       ``(1) In general.--This section applies to programs under--
       ``(A) part B, subpart 1 of title I;
       ``(B) part C of title I;
       ``(C) part A of title II;
       ``(D) part A of title III.
       ``(E) part A of title V; and
       ``(F) part B of title V;
       ``(2) Definition.--For the purposes of this section, the 
     term `eligible children' means children eligible for services 
     under a program described in paragraph (1).
       ``(c) Consultation.--
       ``(1) In general.--To ensure timely and meaningful 
     consultation, a State educational agency, local educational 
     agency, educational service agency, consortium of such 
     agencies or entity shall consult with appropriate private 
     school officials during the design and development of the 
     programs under this Act, on issues such as--
       ``(A) how the children's needs will be identified;
       ``(B) what services will be offered;
       ``(C) how, where, and by whom the services will be 
     provided;
       ``(D) how the services will be assessed and how the results 
     of the assessment will be used to improve such services;
       ``(E) the size and scope of the equitable services to be 
     provided to the eligible private school children, teachers, 
     and other educational personnel and the amount of funds 
     available for such services; and
       ``(F) how and when the agency, consortium, or entity will 
     make decisions about the delivery of services, including a 
     thorough consideration and analysis of the views of the 
     private school officials on the provision of contract 
     services through potential third party providers.
       ``(2) Disagreement.--If the agency, consortium or entity 
     disagrees with the views of the private school officials on 
     the provision of services through a contract, the agency, 
     consortium, or entity shall provide in writing to such 
     private school officials an analysis of the reasons why the 
     local educational agency has chosen not to use a contractor.
       ``(3) Timing.--Such consultation shall occur before the 
     agency, consortium, or entity makes any decision that affects 
     the opportunities of eligible private school children, 
     teachers, and other educational personnel to participate in 
     programs under this Act, and shall continue throughout the 
     implementation and assessment of activities under this 
     section.
       ``(4) Discussion required.--Such consultation shall include 
     a discussion of service delivery mechanisms that the agency, 
     consortium, or entity could use to provide equitable services 
     to eligible private school children, teachers, 
     administrators, and other staff.
       ``(d) Public Control of Funds.--
       ``(1) In general.--The control of funds used to provide 
     services under this section, and title to materials, 
     equipment, and property purchased with such funds, shall be 
     in a public agency for the uses and purposes provided in this 
     Act, and a public agency shall administer such funds and 
     property.
       ``(2) Provision of services.--
       ``(A) The provision of services under this section shall be 
     provided--
       ``(i) by employees of a public agency; or
       ``(ii) through contract by such public agency with an 
     individual, association, agency, organization, or other 
     entity.
       ``(B) In the provision of such services, such employee, 
     person, association, agency, organization or other entity 
     shall be independent of such private school and of any 
     religious organization, and such employment or contract shall 
     be under the control and supervision of such public agency.
       ``(C) Funds used to provide services under this section 
     shall not be commingled with non-Federal funds.

     ``SEC. 8504. STANDARDS FOR BY-PASS.

       ``If, by reason of any provision of law, a State 
     educational agency, local educational agency, educational 
     service agency, consortium, or other entity of such agencies, 
     is prohibited from providing for the participation in 
     programs of children enrolled in, or teachers or other 
     educational personnel from, private elementary and secondary 
     schools, on an equitable basis, or if the Secretary 
     determines that such agency consortium or entity has 
     substantially failed or is unwilling to provide for such 
     participation, as required by section 8503, the Secretary 
     shall--
       ``(1) waive the requirements of that section for such 
     agency, consortium, or entity;
       ``(2) arrange for the provision of equitable services to 
     such children, teachers, or other educational personnel 
     through arrangements that shall be subject to the 
     requirements of this section and of sections 8503, 8505, and 
     8506; and
       ``(3) in making the determination, consider one or more 
     factors, including the quality, size, scope, location of the 
     program and the opportunity of private school children, 
     teachers, and other educational personnel to participate.

     ``SEC. 8505. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE 
                   SCHOOL CHILDREN.

       ``(a) Procedures for Complaints.--The Secretary shall 
     develop and implement written procedures for receiving, 
     investigating, and resolving complaints from parents, 
     teachers, or other individuals and organizations concerning 
     violations of section 8503 by a State educational agency, 
     local educational agency, educational service agency, 
     consortium of such agencies or entity. Such individual or 
     organization shall submit such complaint to the State 
     educational agency for a written resolution by the State 
     educational agency within a reasonable period of time.
       ``(b) Appeals to Secretary.--Such resolution may be 
     appealed by an interested party to the Secretary not later 
     than 30 days after the State educational agency resolves the 
     complaint or fails to resolve the complaint within a 
     reasonable period of time. Such appeal shall be accompanied 
     by a copy of the State educational agency's resolution, and a 
     complete statement of the reasons supporting the appeal. The 
     Secretary shall investigate and resolve each such appeal not 
     later than 120 days after receipt of the appeal.

     ``SEC. 8506. BY-PASS DETERMINATION PROCESS.

       ``(a) Review.--
       ``(1) In general.--
       ``(A) The Secretary shall not take any final action under 
     section 8504 until the State educational agency, local 
     educational agency, educational service agency, consortium of 
     such agencies or entity affected by such action has had an 
     opportunity, for not less than 45 days after receiving 
     written notice thereof, to submit written objections and to 
     appear before the Secretary to show cause why that action 
     should not be taken.
       ``(B) Pending final resolution of any investigation or 
     complaint that could result in a determination under this 
     section, the Secretary may withhold from the allocation of 
     the affected State or local educational agency the amount 
     estimated by the Secretary to be necessary to pay the cost of 
     those services.
       ``(2) Petition for review.--
       ``(A) If such affected agency consortium or entity is 
     dissatisfied with the Secretary's final action after a 
     proceeding under paragraph (1), such agency consortium or 
     entity may, within 60 days after notice of such action, file 
     with the United States court of appeals for the circuit in 
     which such State is located a petition for review of that 
     action.
       ``(B) A copy of the petition shall be forthwith transmitted 
     by the clerk of the court to the Secretary.
       ``(C) The Secretary upon receipt of the copy of the 
     petition shall file in the court the record of the 
     proceedings on which the Secretary based this action, as 
     provided in section 2112 of title 28, United States Code.
       ``(3) Findings of fact.--
       ``(A) The findings of fact by the Secretary, if supported 
     by substantial evidence, shall be conclusive, but the court, 
     for good cause shown, may remand the case to the Secretary to 
     take further evidence and the Secretary may then make new or 
     modified findings of fact and may modify the Secretary's 
     previous action, and shall file in the court the record of 
     the further proceedings.
       ``(B) Such new or modified findings of fact shall likewise 
     be conclusive if supported by substantial evidence.
       ``(4) Jurisdiction.--
       ``(A) Upon the filing of such petition, the court shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set such action aside, in whole or in part.

[[Page 8970]]

       ``(B) The judgment of the court shall be subject to review 
     by the Supreme Court of the United States upon certiorari or 
     certification as provided in section 1254 of title 28, United 
     States Code.
       ``(b) Determination.--Any determination by the Secretary 
     under this section shall continue in effect until the 
     Secretary determines, in consultation with such agency, 
     consortium or entity and representatives of the affected 
     private school children, teachers, or other educational 
     personnel that there will no longer be any failure or 
     inability on the part of such agency or consortium to meet 
     the applicable requirements of section 8503 or any other 
     provision of this Act.
       ``(c) Payment From State allotment.--When the Secretary 
     arranges for services pursuant to this section, the Secretary 
     shall, after consultation with the appropriate public and 
     private school officials, pay the cost of such services, 
     including the administrative costs of arranging for those 
     services, from the appropriate allocation or allocations 
     under this Act.
       ``(d) Prior Determination.--Any by-pass determination by 
     the Secretary under this Act as in effect on the day 
     preceding the date of enactment of the No Child Left Behind 
     Act of 2001 shall remain in effect to the extent the 
     Secretary determines that such determination is consistent 
     with the purpose of this section.

     ``SEC. 8507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP 
                   OR INSTRUCTION.

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

     ``SEC. 8508. APPLICABILITY.

       ``Nothing in this Act shall be construed to affect home 
     schools, whether or not a home school is treated as a home 
     school or a private school under State law (consistent with 
     section 8509), nor shall any home schooled student be 
     required to participate in any assessment referenced in this 
     Act.

     ``SEC. 8509. PRIVATE SCHOOLS.

       ``Nothing in this Act shall be construed to affect any 
     private school that does not receive funds or services under 
     this Act nor shall any student who attends a private school 
     that does not receive funds or services under this Act be 
     required to participate in any assessment referenced in this 
     Act.

     ``SEC. 8510. PRIVACY OF ASSESSMENT RESULTS.

       ``Any results from individual assessments referenced in 
     this Act which become part of the education records of the 
     student shall have the protections as provided in section 444 
     of the General Education Provisions Act.

     ``SEC. 8511. GENERAL PROVISION REGARDING NONRECIPIENT 
                   NONPUBLIC SCHOOLS.

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

     ``SEC. 8512. SCHOOL PRAYER.

       ``As a condition for receipt of funds under this Act, a 
     local educational agency shall certify in writing to the 
     Secretary that no policy of the agency prevents or otherwise 
     denies participation in constitutionally protected prayer in 
     public schools.

     ``SEC. 8513. GENERAL PROHIBITIONS.

       ``(a) Prohibition.--None of the funds authorized under this 
     Act shall be used--
       ``(1) to develop or distribute materials, or operate 
     programs or courses of instruction directed at youth that are 
     designed to promote or encourage, sexual activity, whether 
     homosexual or heterosexual;
       ``(2) to distribute or to aid in the distribution by any 
     organization of legally obscene materials to minors on school 
     grounds;
       ``(3) to provide sex education or HIV prevention education 
     in schools unless such instruction is age appropriate and 
     emphasizes the health benefits of abstinence; or
       ``(4) to operate a program of contraceptive distribution in 
     schools.
       ``(b) Local control.--Nothing in this section shall be 
     construed to--
       ``(1) authorize an officer or employee of the Federal 
     Government to direct, review, or control a State, local 
     educational agency, or schools' instructional content, 
     curriculum, and related activities;
       ``(2) limit the application of the General Education 
     Provisions Act (20 U.S.C.A. 1221 et seq.);
       ``(3) require the distribution of scientifically or 
     medically false or inaccurate materials or to prohibit the 
     distribution of scientifically or medically true or accurate 
     materials; or
       ``(4) create any legally enforceable right.

     ``SEC. 8514. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND 
                   CONTROL.

       ``(a) General Prohibition.--Officers and employees of the 
     Federal Government are prohibited from mandating, directing, 
     or controlling a State, local educational agency, or school's 
     curriculum, program of instruction, or allocation of State or 
     local resources, or mandating a State or any subdivision 
     thereof to spend any funds or incur any costs not paid for 
     under this Act.
       ``(b) Prohibition of Federal Mandates, Direction, or 
     Control.--Nothing in this Act shall be construed to authorize 
     an officer or employee of the Federal Government to mandate, 
     direct, or control a State, local educational agency, or 
     school's specific instructional content or academic 
     achievement standards and assessments, curriculum, or program 
     of instruction as a condition of eligibility to receive funds 
     under this Act.
       ``(c) Equalized Spending.--Nothing in this Act shall be 
     construed to mandate equalized spending per pupil for a 
     State, local educational agency, or school.
       ``(d) Building Standards.--Nothing in this Act shall be 
     construed to mandate national school building standards for a 
     State, local agency, or school.

     ``SEC. 8515. RULEMAKING.

       ``The Secretary shall issue regulations under this Act only 
     to the extent that such regulations are necessary to ensure 
     that there is compliance with the specific requirements and 
     assurances required by this Act.

     ``SEC. 8516. REPORT.

       ``The Secretary shall report to the Congress not later than 
     180 days after the date of enactment of the No Child Left 
     Behind Act of 2001 regarding how the Secretary shall ensure 
     that audits conducted by Department employees of activities 
     assisted under this Act comply with changes to this Act made 
     by the No Child Left Behind Act of 2001, particularly with 
     respect to permitting children with similar educational needs 
     to be served in the same educational settings, where 
     appropriate.

     ``SEC. 8517. REQUIRED APPROVAL OR CERTIFICATION PROHIBITED.

       ``(a) In General.--Notwithstanding any other provision of 
     Federal law, no State shall be required to have academic 
     content standards or student academic achievement standards 
     approved or certified by the Federal Government, in order to 
     receive assistance under this Act.
       ``(b) Construction.--Nothing in this section shall be 
     construed to affect requirements under title I of this Act.

     ``SEC. 8518. PROHIBITION ON ENDORSEMENT OF CURRICULUM.

       ``Notwithstanding any other prohibition of Federal law, no 
     funds provided to the Department of Education or to any 
     applicable program may be used by the Department to endorse, 
     approve, or sanction any curriculum designed to be used in an 
     elementary or secondary school.

     ``SEC. 8519. RULE OF CONSTRUCTION ON PERSONALLY IDENTIFIABLE 
                   INFORMATION.

       ``Nothing in this Act shall be construed to permit the 
     development of a national database of personally identifiable 
     information on individuals involved in studies or in data 
     collection efforts under this Act.

     ``SEC. 8520. SEVERABILITY.

       ``If any provision of this Act is held invalid, the 
     remainder of this Act shall be unaffected thereby.

                      ``PART F--SENSE OF CONGRESS

     ``SEC. 8601. PAPERWORK REDUCTION.

       ``(a) Findings.--The Congress finds that--
       ``(1) instruction and other classroom activities provide 
     the greatest opportunity for students, especially at-risk and 
     disadvantaged students, to attain high standards and achieve 
     academic success;
       ``(2) one of the greatest obstacles to establishing an 
     effective, classroom-centered education system is the cost of 
     paperwork compliance;
       ``(3) paperwork places a burden on teachers and 
     administrators who must complete Federal and State forms to 
     apply for Federal funds and absorbs time and money which 
     otherwise would be spent on students;
       ``(4) the Education at a Crossroads Report released in 1998 
     by the Education Subcommittee on Oversight and Investigations 
     states that requirements by the Department of Education 
     result in more than 48,600,000 hours of paperwork per year; 
     and
       ``(5) paperwork distracts from the mission of schools, 
     encumbers teachers, and administrators with nonacademic 
     responsibilities, and competes with teaching and classroom 
     activities which promote learning and achievement.
       ``(b) Sense of Congress.--It is the sense of Congress that 
     Federal and State educational agencies should reduce the 
     paperwork requirements placed on schools, teachers, 
     principles, and other administrators.

     ``SEC. 8602. PROHIBITION ON MANDATORY NATIONAL CERTIFICATION 
                   OF TEACHERS AND PARAPROFESSIONALS.

       ``(a) Prohibition on Mandatory Testing or Certification.--
     Notwithstanding any other provision of law, the Secretary is 
     prohibited from using Federal funds to plan, develop, 
     implement, or administer any mandatory national teacher or 
     paraprofessional test or certification.
       ``(b) Prohibition on Withholding Funds.--The Secretary is 
     prohibited from withholding funds from any State or local 
     educational agency if such State or local educational agency 
     fails to adopt a specific method of teacher or 
     paraprofessional certification.

     ``SEC. 8603. PROHIBITION ON FEDERALLY SPONSORED TESTING.

       ``Notwithstanding any other provision of Federal law, no 
     funds provided under this Act to the Secretary or to the 
     recipient of any award may be used to develop, pilot test, 
     field test, implement, administer, or distribute any 
     federally sponsored national test in reading, mathematics, or 
     any other subject, unless specifically and explicitly 
     authorized by law.

     ``SEC. 8604. SENSE OF CONGRESS REGARDING MEMORIALS.

       ``It is the sense of Congress that--
       ``(1) the saying of a prayer, the reading of a scripture, 
     or the performance of religious music, as part of a memorial 
     service that is held on the

[[Page 8971]]

     campus of a public elementary or secondary school in order to 
     honor the memory of any person slain on that campus is not 
     objectionable under this Act; and
       ``(2) the design and construction of any memorial which 
     includes religious symbols, motifs, or sayings that is placed 
     on the campus of a public elementary or secondary school in 
     order to honor the memory of any person slain on that campus 
     is not objectionable under this Act.

                         ``PART G--EVALUATIONS

     ``SEC. 8651. EVALUATIONS.

       ``(a) Reservation of Funds.--Except as provided in 
     subsections (b) and (c), the Secretary may reserve not more 
     than 0.5 percent of the amount appropriated to carry out each 
     categorical program and demonstration project authorized 
     under this Act--
       ``(1) to conduct--
       ``(A) comprehensive evaluations of the program or project; 
     and
       ``(B) studies of the effectiveness of the programs or 
     project and its administrative impact on schools and local 
     educational agencies;
       ``(2) to evaluate the aggregate short- and long-term 
     effects and cost efficiencies across Federal programs 
     assisted or authorized under this Act and related Federal 
     preschool, elementary and secondary programs under any other 
     Federal law; and
       ``(3) to increase the usefulness of evaluations of grant 
     recipients in order to ensure the continuous progress of the 
     program or project by improving the quality, timeliness, 
     efficiency, and utilization of information relating to 
     performance under the program or project.
       ``(b) Title I Excluded.--The Secretary may not reserve 
     under subsection (a) funds appropriated to carry out any 
     program authorized under title I.
       ``(c) Evaluation Activities Authorized Elsewhere.--If, 
     under any other provision of this Act (other than title I), 
     funds are authorized to be reserved or used for evaluation 
     activities with respect to a program or project, the 
     Secretary may not reserve additional funds under this section 
     for the evaluation of such program or project.''.

     SEC. 802. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

       (a) In General.--Part A of title XIII (20 U.S.C. 8621 et 
     seq.)--
       (1) is transferred to the end of title VIII, as amended by 
     section 801; and
       (2) is redesignated as part H.
       (b) Redesignation of Sections.--Sections 13101 through 
     13105 are redesignated as sections 8701 through 8705, 
     respectively.
       (c) Conforming Amendments.--
       (1) Requirements.--Section 8702(a) (as redesignated by 
     subsection (b)) is amended--
       (A) by striking ``section 13101(a)'' and inserting 
     ``section 8701(a)''; and
       (B) in paragraph (7), by striking ``section 13201'' and 
     inserting ``section 8751''.
       (2) Maintenance of service.--Section 8703(b) (as 
     redesignated by subsection (b)) is amended--
       (A) in paragraph (1), by striking ``section 13102'' and 
     inserting ``section 8702''; and
       (B) in paragraph (2)--
       (i) by striking ``section 13201'' and inserting ``section 
     8751''; and
       (ii) by striking ``section 13401'' and inserting ``section 
     8851''.
       (3) Transition.--Section 8704(b)(1) (as redesignated by 
     subsection (b)) is amended by striking ``section 13105'' and 
     inserting ``section 8705''.

     SEC. 803. NATIONAL DIFFUSION NETWORK.

       (a) In General.--Part B of title XIII (20 U.S.C. 8651 et 
     seq.)--
       (1) is transferred to the end of title VIII, as amended by 
     section 802; and
       (2) is redesignated as part I.
       (b) Redesignation of Sections.--Sections 13201 and 13202 
     are redesignated as sections 8751 and 8752, respectively.
       (c) Conforming Amendment.--Section 8751 (as redesignated by 
     subsection (b)) is amended--
       (1) in subsection (e)(3), by striking ``under part C'' 
     through the end thereof and inserting ``under part F; and''; 
     and
       (2) in subsection (f)(4), by striking ``section 13401'' and 
     inserting ``section 8851''.

     SEC. 804. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE 
                   EDUCATION CONSORTIA.

       (a) In General.--Part C of title XIII (20 U.S.C. 8671 et 
     seq.)--
       (1) is transferred to the end of title VIII, as amended by 
     section 803; and
       (2) is redesignated as part J.
       (b) Redesignation of Sections.--Sections 13301 through 
     13308 are redesignated as sections 8801 through 8808, 
     respectively.
       (c) Conforming Amendments.--
       (1) Grant authorization.--Section 8801(a)(3) (as 
     redesignated by subsection (b)) is amended by striking 
     ``section 13308'' and inserting ``section 8808''.
       (2) Use of funds.--Section 8802 (as redesignated by 
     subsection (b)) is amended--
       (A) by striking ``section 13304'' and inserting ``section 
     8804'';
       (B) in paragraph (2), by striking ``13301(a)(1)'' and 
     inserting ``8801(a)(1)''; and
       (C) in paragraph (3), by striking ``13301(a)(1)'' and 
     inserting ``8801(a)(1)''.
       (3) Payments.--Section 8805 (as redesignated by subsection 
     (b)) is amended in each of subsections (a) and (c) by 
     striking ``section 13303'' and inserting ``section 8803''.
       (4) Evaluation.--Section 8806(a) (as redesignated by 
     subsection (b)) is amended by striking ``section 14701'' and 
     inserting ``section 8651''.
       (5) Definitions.--Section 8807(4) (as redesignated by 
     subsection (b)) is amended by striking ``section 13301'' and 
     inserting ``section 8801''.

     SEC. 805. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

       (a) In General.--Part D of title XIII (20 U.S.C. 8701)--
       (1) is transferred to the end of title VIII, as amended by 
     section 804; and
       (2) is redesignated as part K.
       (b) Redesignation of Section.--Section 13401 is 
     redesignated as section 8851.

     SEC. 806. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL 
                   DEVELOPMENT.

       (a) In General.--Subpart 3 of part A of title III (20 
     U.S.C. 6861 et seq.)--
       (1) is transferred to the end of title VIII, as amended by 
     section 805; and
       (2) is redesignated as part L.
       (b) Redesignation of Section.--Section 3141 is redesignated 
     as section 8901.
       (c) Conforming Amendment.--Section 8901 (as redesignated by 
     subsection (b)) is amended by striking ``part C of title 
     XIII'' and inserting ``part J''.
                   TITLE IX--MISCELLANEOUS PROVISIONS

                    PART A--AMENDMENTS TO OTHER ACTS

              Subpart 1--National Education Statistics Act

     SEC. 901. AMENDMENT TO NESA.

       Section 411 of the National Education Statistics Act of 
     1994 (20 U.S.C. 9010) is amended--
       (1) by amending subsection (b)(2) to read as follows:
       ``(2) State assessments.--(A) The Commissioner, in carrying 
     out the National Assessment--
       ``(i) may conduct State assessments of student achievement 
     in grades 4, 8, and 12; and
       ``(ii) shall conduct annual State assessments of student 
     achievement in reading and mathematics in grades 4 and 8 in 
     order for States to carry out section 1111(c)(2) of the 
     Elementary and Secondary Education Act of 1965.
       ``(B)(i) Except as provided in clause (ii), a participating 
     State shall review and give permission for the release of 
     results from any test of its students administered as a part 
     of a State assessment prior to the release of the data. 
     Refusal by a State to release its data shall not restrict the 
     release of data from other States that have approved the 
     release of that data.
       ``(ii) A State participating in the annual State 
     assessments of its students in reading and mathematics in 
     grades 4 and 8 shall be deemed to have given its permission 
     to release its data if it has an approved plan under section 
     1111 of the Elementary and Secondary Education Act of 
     1965.''; and
       (2) by amending subsection (d) to read as follows:
       ``(d) Participation.--
       ``(1) National and regional participation.--Participation 
     in the national and regional assessments by State and local 
     educational agencies shall be voluntary.
       ``(2) State participation.--Participation in assessments 
     made on a State basis shall be voluntary.''.

                     Subpart 2--Homeless Education

     SEC. 911. SHORT TITLE.

       This subpart may be cited as the ``McKinney-Vento Homeless 
     Education Assistance Improvements Act of 2001''.

     SEC. 912. FINDINGS.

       Congress makes the following findings:
       (1) An estimated 1,000,000 children in the United States 
     will experience homelessness in 2001.
       (2) Homelessness has a devastating impact on the 
     educational opportunities of children and youth. Homeless 
     children go hungry at more than twice the rate of other 
     children, have four times the rate of delayed development, 
     and are twice as likely to repeat a grade.
       (3) Despite steady progress in school enrollment and 
     attendance resulting from the passage in 1987 of the Stewart 
     B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et 
     seq.), homeless students still face numerous barriers to 
     education, including residency, guardianship and registration 
     requirements, delays in the transfer of school records, and 
     inadequate transportation service.
       (4) School is one of the few secure factors in the lives of 
     homeless children and youth, providing stability, structure, 
     and accomplishment during a time of great upheaval.
       (5) Homeless children and youth require educational 
     stability and the opportunity to maintain regular and 
     consistent attendance in school, so that they acquire the 
     skills necessary to escape poverty and lead productive, 
     healthy lives as adults.
       (6) In the 14 years since the passage of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11301 et seq.), 
     educators and service providers have learned much about 
     policies and practices which help remove the barriers 
     described.

     SEC. 913. PURPOSE.

       The purpose of this subpart is to strengthen subtitle B of 
     title VII of Public Law 100-77 (42 U.S.C. 11431 et seq.) by 
     amending it--
       (1) to include innovative practices, proven to be effective 
     in helping homeless children and youth enroll, attend, and 
     succeed in school; and
       (2) to help ensure that all children and youth impacted by 
     the loss of fixed, regular, and adequate housing receive a 
     quality education and secure their chance for a brighter 
     future.

     SEC. 914. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

       Subtitle B of title VII of Public Law 100-77 (42 U.S.C. 
     11431 et seq.) is amended to read as follows:

[[Page 8972]]


        ``Subtitle B--Education for Homeless Children and Youth

     ``SEC. 721. STATEMENT OF POLICY.

       ``It is the policy of the Congress that--
       ``(1) each State educational agency ensure that each child 
     of a homeless individual and each homeless youth has equal 
     access to the same free, public education, including a public 
     preschool education, as provided to other children and youth;
       ``(2) in any State that has a compulsory residency 
     requirement as a component of the State's compulsory school 
     attendance laws or other laws, regulations, practices, or 
     policies that may act as a barrier to the enrollment, 
     attendance, or success in school of homeless children and 
     youth, the State review and undertake steps to revise such 
     laws, regulations, practices, or policies to ensure that 
     homeless children and youth are afforded the same free, 
     public education as provided to other children and youth;
       ``(3) homelessness alone is not sufficient reason to 
     separate students from the mainstream school environment; and
       ``(4) homeless children and youth must have access to the 
     education and other services that such children and youth 
     need to ensure that such children and youth have an 
     opportunity to meet the same challenging State student 
     academic achievement standards to which all students are 
     held.

     ``SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE 
                   EDUCATION OF HOMELESS CHILDREN AND YOUTH.

       ``(a) General Authority.--The Secretary is authorized to 
     make grants to States in accordance with the provisions of 
     this section to enable such States to carry out the 
     activities described in subsections (d), (e), (f), and (g).
       ``(b) Application.--No State may receive a grant under this 
     section unless the State educational agency submits an 
     application to the Secretary at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may reasonably require.
       ``(c) Allocation and Reservations.--
       ``(1) In general.--Subject to paragraph (2) and section 
     724(d), from the amounts appropriated for each fiscal year 
     under section 726, the Secretary is authorized to allot to 
     each State an amount that bears the same ratio to the amount 
     appropriated for such year under section 726 as the amount 
     allocated under section 1122 of the Elementary and Secondary 
     Education Act of 1965 to the State for that year bears to the 
     total amount allocated under section 1122 of such Act to all 
     States for that year, except that no State shall receive less 
     than $125,000 or \1/2\ of 1 percent of the amount 
     appropriated under section 726, whichever is greater.
       ``(2) Reservation.--(A) The Secretary is authorized to 
     reserve 0.1 percent of the amount appropriated for each 
     fiscal year under section 726 to be allocated by the 
     Secretary among the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands, according to their respective need for assistance 
     under this subtitle, as determined by the Secretary.
       ``(B)(i) The Secretary shall transfer one percent of the 
     amount appropriated for each fiscal year under section 726 to 
     the Department of the Interior for programs for Indian 
     students served by schools funded by the Secretary of the 
     Interior, as determined under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450 et seq.), that 
     are consistent with the purposes of this Act.
       ``(ii) The Secretary and the Secretary of the Interior 
     shall enter into an agreement, consistent with the 
     requirements of this part, for the distribution and use of 
     the funds described in clause (i) under terms that the 
     Secretary determines best meet the purposes of the programs 
     described in such clause. Such agreement shall set forth the 
     plans of the Secretary of the Interior for the use of the 
     amounts transferred, including appropriate goals, objectives, 
     and milestones.
       ``(3) State Defined.--As used in this subsection, the term 
     `State' shall not include the United States Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of the Northern 
     Mariana Islands.
       ``(d) Activities.--Grants under this section shall be 
     used--
       ``(1) to carry out the policies set forth in section 721 in 
     the State;
       ``(2) to provide activities for, and services to, homeless 
     children, including preschool-aged homeless children, and 
     youth that enable such children and youth to enroll in, 
     attend, and succeed in school, or, if appropriate, in 
     preschool programs;
       ``(3) to establish or designate an Office of Coordinator of 
     Education of Homeless Children and Youth in the State 
     educational agency in accordance with subsection (f);
       ``(4) to prepare and carry out the State plan described in 
     subsection (g); and
       ``(5) to develop and implement professional development 
     programs for school personnel to heighten their awareness of, 
     and capacity to respond to, specific problems in the 
     education of homeless children and youth.
       ``(e) State and Local Grants.--
       ``(1) Minimum disbursements by states.--From the sums made 
     available each year to carry out this subtitle, the State 
     educational agency shall distribute not less than 75 percent 
     in grants to local educational agencies for the purposes of 
     carrying out section 723, except that States funded at the 
     minimum level set forth in subsection (c)(1) shall distribute 
     not less than 50 percent in grants to local educational 
     agencies for the purposes of carrying out section 723.
       ``(2) Use by state educational agency.--A State educational 
     agency may use funds made available for State use under this 
     subtitle to conduct activities under subsection (f) directly 
     or through grants.
       ``(3) Prohibition on segregating homeless students.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and section 723(a)(2)(B)(ii), in providing a free public 
     education to a homeless child or youth, no State receiving 
     funds under this subtitle shall segregate such child or 
     youth, either in a separate school or in a separate program 
     within a school, based solely on such child's or youth's 
     status as homeless.
       ``(B) Exception.--A State that operates a separate school 
     for homeless children as of the day preceding the date of 
     enactment of the McKinney-Vento Homeless Education Assistance 
     Improvements Act of 2001--
       ``(i) shall remain eligible to receive, and to distribute 
     to local educational agencies, funds under this subtitle for 
     such school; and
       ``(ii) shall not distribute to local educational agencies 
     in the State any funds received under this subtitle for use 
     by any such schools not in operation as of such date of 
     enactment.
       ``(f) Functions of the Office of Coordinator.--The 
     Coordinator of Education of Homeless Children and Youth 
     established in each State shall--
       ``(1) gather, to the extent possible, reliable, valid, and 
     comprehensive information on the nature and extent of the 
     problems homeless children and youth have in gaining access 
     to public preschool programs and to public elementary and 
     secondary schools, the difficulties in identifying the 
     special needs of such children and youth, any progress made 
     by the State educational agency and local educational 
     agencies in the State in addressing such problems and 
     difficulties, and the success of the program under this 
     subtitle in assisting homeless children and youth to enroll 
     in, attend, and succeed in, school;
       ``(2) develop and carry out the State plan described in 
     subsection (g);
       ``(3) collect and transmit to the Secretary information 
     gathered pursuant to paragraphs (1) and (2) at such time and 
     in such manner as the Secretary may require;
       ``(4) facilitate coordination between the State educational 
     agency, the State social services agency, and other agencies 
     providing services to homeless children and youth, including 
     homeless children, including preschool-aged homeless 
     children, and youth, and families of such children and youth;
       ``(5) in order to improve the provision of comprehensive 
     education and related services to homeless children and youth 
     and their families, coordinate and collaborate with--
       ``(A) educators, including child development and preschool 
     program personnel;
       ``(B) State and local providers of services to homeless and 
     runaway children and youth and homeless families (including 
     domestic violence agencies, shelter operators, transitional 
     housing facilities, runaway and homeless youth centers, and 
     transitional living programs for homeless youth);
       ``(C) local educational agency liaisons for homeless 
     children and youth; and
       ``(D) State and local community organizations and groups 
     representing homeless children and youth and their families; 
     and
       ``(6) provide technical assistance to local educational 
     agencies, in coordination with local liaisons designated 
     under subsection (g)(1)(J)(ii), to ensure that local 
     educational agencies comply with the requirements of 
     paragraphs (3) through (7) of subsection (g).
       ``(g) State Plan.--
       ``(1) In general.--Each State shall submit to the Secretary 
     a plan to provide for the education of homeless children and 
     youth within the State, which plan shall--
       ``(A) describe how such children and youth are or will be 
     given the opportunity to meet the same challenging State 
     student academic achievement standards all students are 
     expected to meet;
       ``(B) describe the procedures the State educational agency 
     will use to identify such children and youth in the State and 
     to assess their special needs;
       ``(C) describe procedures for the prompt resolution of 
     disputes regarding the educational placement of homeless 
     children and youth;
       ``(D) describe programs for school personnel (including 
     principals, attendance officers, teachers, enrollment 
     personnel, and pupil services personnel) to heighten the 
     awareness of such personnel of the specific needs of runaway 
     and homeless youth;
       ``(E) describe procedures that ensure that homeless 
     children and youth who meet the relevant eligibility criteria 
     are able to participate in Federal, State, or local food 
     programs;
       ``(F) describe procedures that ensure that--
       ``(i) homeless children have equal access to the same 
     public preschool programs, administered by the State agency, 
     as provided to other children;
       ``(ii) homeless youth and youth separated from the public 
     schools are identified and accorded equal access to 
     appropriate secondary education and support services; and
       ``(iii) homeless children and youth who meet the relevant 
     eligibility criteria are able to participate in Federal, 
     State, or local before- and after-school care programs;
       ``(G) address problems set forth in the report provided to 
     the Secretary under subsection (f)(3);
       ``(H) address other problems with respect to the education 
     of homeless children and youth,

[[Page 8973]]

     including problems caused by enrollment delays that are 
     caused by--
       ``(i) immunization and medical records requirements;
       ``(ii) residency requirements;
       ``(iii) lack of birth certificates, school records, or 
     other documentation;
       ``(iv) guardianship issues; or
       ``(v) uniform or dress code requirements;
       ``(I) demonstrate that the State educational agency and 
     local educational agencies in the State have developed, and 
     shall review and revise, policies to remove barriers to the 
     enrollment and retention of homeless children and youth in 
     schools in the State; and
       ``(J) contain assurances that--
       ``(i) except as provided in subsection (e)(3)(B), State and 
     local educational agencies will adopt policies and practices 
     to ensure that homeless children and youth are not segregated 
     solely on the basis of their status as homeless;
       ``(ii) local educational agencies will designate an 
     appropriate staff person, who may also be a coordinator for 
     other Federal programs, as a liaison for homeless children 
     and youth, to carry out the duties described in paragraph 
     (6)(A); and
       ``(iii) the State and its local educational agencies will 
     adopt policies and practices to ensure that transportation is 
     provided, at the request of the parent or guardian (or in the 
     case of an unaccompanied youth, the liaison) to and from the 
     school of origin, as determined in paragraph (3)(A), in 
     accordance with the following, as applicable:

       ``(I) If the homeless child or youth continues to live in 
     the area served by the local educational agency in which the 
     school of origin is located, the child's or youth's 
     transportation to and from the school of origin shall be 
     provided or arranged by the local educational agency in which 
     the school of origin is located.
       ``(II) If the homeless child's or youth's living 
     arrangements in the area served by the local educational 
     agency of origin terminate and the child or youth, though 
     continuing his or her education in the school of origin, 
     begins living in the area served by another local educational 
     agency, the local educational agency of origin and the local 
     educational agency in which the homeless child or youth is 
     living shall agree upon a method to apportion the 
     responsibility and costs for providing the child with 
     transportation to and from the school or origin. If the local 
     educational agencies are unable to agree upon such method, 
     the responsibility and costs for transportation shall be 
     shared equally.

       ``(2) Compliance.--
       ``(A) In general.--Each plan adopted under this subsection 
     shall also describe how the State will ensure that local 
     educational agencies in the State will comply with the 
     requirements of paragraphs (3) through (7).
       ``(B) Coordination.--Such plan shall indicate what 
     technical assistance the State will furnish to local 
     educational agencies and how compliance efforts will be 
     coordinated with the local liaisons established under this 
     subchapter.
       ``(3) Local educational agency requirements.--
       ``(A) In general.--The local educational agency serving 
     each child or youth to be assisted under this subtitle shall, 
     according to the child's or youth's best interest, either--
       ``(i) continue the child's or youth's education in the 
     school of origin for the duration of homelessness--

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

       ``(ii) enroll the child or youth in any public school that 
     nonhomeless students who live in the attendance area in which 
     the child or youth is actually living are eligible to attend.
       ``(B) Best interest.--In determining the best interest of 
     the child or youth under subparagraph (A), the local 
     educational agency shall--
       ``(i) to the extent feasible, keep a homeless child or 
     youth in the school of origin, except when doing so is 
     contrary to the wishes of the child's or youth's parent or 
     guardian;
       ``(ii) provide a written explanation, including a statement 
     regarding the right to appeal under subparagraph (E), to the 
     homeless child's or youth's parent or guardian if the local 
     educational agency sends such child or youth to a school 
     other than the school of origin or a school requested by the 
     parent or guardian; and
       ``(iii) in the case of an unaccompanied youth, ensure that 
     the homeless liaison designated under paragraph (1)(J)(2) 
     assists in placement or enrollment decisions under this 
     subparagraph and provides notice to such youth of the right 
     to appeal under subparagraph (E).
       ``(C) Enrollment.--(i) The school selected in accordance 
     with this paragraph shall immediately enroll pursuant to 
     section 725(3) the homeless child or youth, even if the child 
     or youth is unable to produce records normally required for 
     enrollment, such as previous academic records, medical 
     records, proof of residency, or other documentation.
       ``(ii) The enrolling school shall immediately contact the 
     school last attended by the child or youth to obtain relevant 
     academic and other records.
       ``(iii) If the child or youth needs to obtain immunizations 
     or immunization or medical records, the enrolling school 
     shall immediately refer the parent or guardian of the child 
     or youth to the liaison who shall assist in obtaining 
     necessary immunizations or immunization or medical records in 
     accordance with subparagraph (E).
       ``(D) Records.--Any record ordinarily kept by the school, 
     including immunization or medical records, academic records, 
     birth certificates, guardianship records, and evaluations for 
     special services or programs, of each homeless child or youth 
     shall be maintained--
       ``(i) so that the records are available, in a timely 
     fashion, when a child or youth enters a new school or school 
     district; and
       ``(ii) in a manner consistent with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g).
       ``(E) Enrollment disputes.--If a dispute arises over school 
     selection or enrollment in a school--
       ``(i) the child or youth shall be immediately admitted to 
     the school in which enrollment is sought, pending resolution 
     of the dispute;
       ``(ii) the parent or guardian of the child or youth shall 
     be provided with a written explanation of the school's 
     decision regarding school selection or enrollment, including 
     the rights of the parent, guardian, or youth to appeal the 
     decision;
       ``(iii) the child, youth, parent, or guardian shall be 
     referred to the local liaison designated under paragraph 
     (1)(J)(ii), who shall carry out the dispute resolution 
     process as described in paragraph (1)(A) as expeditiously as 
     possible after receiving notice of the dispute; and
       ``(iv) in the case of an unaccompanied youth, the homeless 
     liaison shall ensure that the youth is immediately enrolled 
     in school pending resolution of the dispute.
       ``(F) Placement choice.--The choice regarding placement 
     shall be made regardless of whether the child or youth lives 
     with the homeless parents or has been temporarily placed 
     elsewhere.
       ``(G) School of origin defined.--In this paragraph, the 
     term `school of origin' means the school that the child or 
     youth attended when permanently housed or the school in which 
     the child or youth was last enrolled.
       ``(H) Contact information.--Nothing in this subtitle shall 
     prohibit a local educational agency from requiring a parent 
     or guardian of a homeless child to submit contact information 
     required by the local educational agency of a parent or 
     guardian of a nonhomeless child.
       ``(4) Comparable services.--Each homeless child or youth to 
     be assisted under this subtitle shall be provided services 
     comparable to services offered to other students in the 
     school selected under paragraph (3), including--
       ``(A) transportation services;
       ``(B) educational services for which the child or youth 
     meets the eligibility criteria, such as services provided 
     under title I of the Elementary and Secondary Education Act 
     of 1965 or similar State or local programs, educational 
     programs for children with disabilities, and educational 
     programs for students with limited-English proficiency;
       ``(C) programs in vocational and technical education;
       ``(D) programs for gifted and talented students; and
       ``(E) school nutrition programs.
       ``(5) Coordination.--
       ``(A) In general.--Each local educational agency serving 
     homeless children and youth that receives assistance under 
     this subtitle shall coordinate--
       ``(i) the provision of services under this subtitle with 
     local social services agencies and other agencies or programs 
     providing services to homeless children and youth and their 
     families, including services and programs funded under the 
     Runaway and Homeless Youth Act (42 U.S.C. 5701 et seq.); and
       ``(ii) with other local educational agencies on 
     interdistrict issues, such as transportation or transfer of 
     school records.
       ``(B) Housing assistance.--If applicable, each State and 
     local educational agency that receives assistance under this 
     subtitle shall coordinate with State and local housing 
     agencies responsible for developing the comprehensive housing 
     affordability strategy described in section 105 of the 
     Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 
     12705) to minimize educational disruption for children and 
     youth who become homeless.
       ``(C) Coordination purpose.--The coordination required 
     under subparagraphs (A) and (B) shall be designed to--
       ``(i) ensure that homeless children and youth have access 
     and reasonable proximity to available education and related 
     support services; and
       ``(ii) raise the awareness of school personnel and service 
     providers of the effects of short-term stays in a shelter and 
     other challenges associated with homelessness.
       ``(6) Liaison.--
       ``(A) Duties.--Each local liaison for homeless children and 
     youth, designated under paragraph (1)(J)(ii), shall ensure 
     that--
       ``(i) homeless children and youth are identified by school 
     personnel and through coordination activities with other 
     entities and agencies;
       ``(ii) homeless children and youth enroll in, and have an 
     equal opportunity to succeed in, schools of that agency;
       ``(iii) homeless families, children, and youth receive 
     educational services for which such families, children, and 
     youth are eligible, including Head Start and Even Start 
     programs and preschool programs administered by the local 
     educational agency, and referrals to health care services, 
     dental services, mental health services, and other 
     appropriate services;
       ``(iv) the parents or guardians of homeless children and 
     youth are informed of the education and related opportunities 
     available to their children and are provided with meaningful

[[Page 8974]]

     opportunities to participate in the education of their 
     children;
       ``(v) public notice of the educational rights of homeless 
     children and youth is disseminated where such children and 
     youth receive services under this Act, such as schools, 
     family shelters, and soup kitchens;
       ``(vi) enrollment disputes are mediated in accordance with 
     subsection (g)(3)(E); and
       ``(vii) the parent or guardian of a homeless child or 
     youth, and any unaccompanied youth, is fully informed of all 
     transportation services, including transportation to the 
     school of origin, as described in paragraph (1)(J)(ii), and 
     is assisted in accessing transportation to the school 
     selected in accordance with paragraph (3)(A).
       ``(B) Notice.--State coordinators whose duties are 
     described under subsection (d) and local educational agencies 
     shall inform school personnel, service providers, and 
     advocates working with homeless families of the duties of the 
     liaisons.
       ``(C) Local and state coordination.--Local educational 
     agency liaisons for homeless children and youth shall, as a 
     part of their duties, coordinate and collaborate with State 
     coordinators and community and school personnel responsible 
     for the provision of education and related services to 
     homeless children and youth.
       ``(7) Review and revisions.--
       ``(A) In general.--Each State educational agency and local 
     educational agency that receives assistance under this 
     subtitle, shall review and revise any policies that may act 
     as barriers to the enrollment of homeless children and youth 
     in schools selected in accordance with paragraph (3).
       ``(B) Consideration.--In reviewing and revising such 
     policies, consideration shall be given to issues concerning 
     transportation, immunization, residency, birth certificates, 
     school records and other documentation, and guardianship.
       ``(C) Special attention.--Special attention shall be given 
     to ensuring the enrollment and attendance of homeless 
     children and youth who are not currently attending school.

     ``SEC. 723. LOCAL EDUCATIONAL AGENCY GRANTS FOR THE EDUCATION 
                   OF HOMELESS CHILDREN AND YOUTH.

       ``(a) General Authority.--
       ``(1) In general.--The State educational agency shall, in 
     accordance with section 722(e) and from amounts made 
     available to such agency under section 726, make grants to 
     local educational agencies for the purpose of facilitating 
     the enrollment, attendance, and success in school of homeless 
     children and youth.
       ``(2) Services.--
       ``(A) In general.--Services under paragraph (1)--
       ``(i) may be provided through programs on school grounds or 
     at other facilities;
       ``(ii) shall, to the maximum extent practicable, be 
     provided through existing programs and mechanisms that 
     integrate homeless children and youth with nonhomeless 
     children and youth; and
       ``(iii) shall be designed to expand or improve services 
     provided as part of a school's regular academic program, but 
     not to replace such services provided under such program.
       ``(B) Services on school grounds.--If services under 
     paragraph (1) are provided on school grounds, schools--
       ``(i) may use funds under this subtitle to provide the same 
     services to other children and youth who are determined by 
     the local educational agency to be at risk of failing in, or 
     dropping out of, schools, subject to the requirements of 
     clause (ii); and
       ``(ii) except as otherwise provided in section 
     722(e)(3)(B), shall not provide services in settings within a 
     school that segregates homeless children and youth from other 
     children and youth, except as is necessary for short periods 
     of time--

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

       ``(3) Requirement.--Services provided under this section 
     shall not replace the regular academic program and shall be 
     designed to expand upon or improve services provided as part 
     of the school's regular academic program.
       ``(b) Application.--A local educational agency that desires 
     to receive a grant under this section shall submit an 
     application to the State educational agency at such time, in 
     such manner, and containing or accompanied by such 
     information as the State educational agency may reasonably 
     require. Each such application shall include--
       ``(1) an assessment of the educational and related needs of 
     homeless children and youth, as defined in section 725(1) and 
     (2), in the area served by such agency (which may be 
     undertaken as part of needs assessments for other 
     disadvantaged groups);
       ``(2) a description of the services and programs for which 
     assistance is sought to address the needs identified in 
     paragraph (1);
       ``(3) an assurance that the local educational agency's 
     combined fiscal effort per student, or the aggregate 
     expenditures of that agency and the State with respect to the 
     provision of free public education by such agency for the 
     fiscal year preceding the fiscal year for which the 
     determination is made, was not less than 90 percent of such 
     combined fiscal effort or aggregate expenditures for the 
     second fiscal year preceding the fiscal year for which the 
     determination is made;
       ``(4) an assurance that the applicant complies with, or 
     will use requested funds to comply with, paragraphs (3) 
     through (7) of section 722(g); and
       ``(5) a description of policies and procedures, consistent 
     with section 722(e)(3)(B), that the agency will implement to 
     ensure that activities carried out by the agency will not 
     isolate or stigmatize homeless children and youth.
       ``(c) Awards.--
       ``(1) In general.--The State educational agency shall, in 
     accordance with the requirements of this subtitle and from 
     amounts made available to it under section 726, make 
     competitive subgrants to local educational agencies that 
     submit applications under subsection (b). Such subgrants 
     shall be awarded on the basis of the need of such agencies 
     for assistance under this subtitle and the quality of the 
     applications submitted.
       ``(2) Need.--In determining need under paragraph (1), the 
     State educational agency may consider the number of homeless 
     children and youth enrolled in preschool, elementary, and 
     secondary schools within the area served by the agency, and 
     shall consider the needs of such children and youth and the 
     ability of the agency to meet such needs. Such agency may 
     also consider--
       ``(A) the extent to which the proposed use of funds would 
     facilitate the enrollment, retention, and educational success 
     of homeless children and youth;
       ``(B) the extent to which the application--
       ``(i) reflects coordination with other local and State 
     agencies that serve homeless children and youth; and
       ``(ii) meets the requirements of section 722(g)(3);
       ``(C) the extent to which the applicant exhibits in the 
     application and in current practice a commitment to education 
     for all homeless children and youth; and
       ``(D) such other criteria as the State agency determines 
     appropriate.
       ``(3) Quality.--In determining the quality of applications 
     under paragraph (1), the State educational agency shall 
     consider--
       ``(A) the applicant's needs assessment under subsection 
     (b)(1) and the likelihood that the program presented in the 
     application will meet such needs;
       ``(B) the types, intensity, and coordination of the 
     services to be provided under the program;
       ``(C) the involvement of parents or guardians;
       ``(D) the extent to which homeless children and youth will 
     be integrated within the regular education program;
       ``(E) the quality of the applicant's evaluation plan for 
     the program;
       ``(F) the extent to which services provided under this 
     subtitle will be coordinated with other available services; 
     and
       ``(G) such other measures as the State educational agency 
     considers indicative of a high-quality program.
       ``(4) Duration of grants.--Grants awarded under this 
     section shall be for terms not to exceed 3 years.
       ``(d) Authorized Activities.--A local educational agency 
     may use funds awarded under this section for activities to 
     carry out the purpose of this subtitle, including--
       ``(1) the provision of tutoring, supplemental instruction, 
     and enriched educational services that are linked to the 
     achievement of the same challenging State academic content 
     standards and challenging State student academic achievement 
     standards the State establishes for other children and youth;
       ``(2) the provision of expedited evaluations of the 
     strengths and needs of homeless children and youth, including 
     needs and eligibility for programs and services (such as 
     educational programs for gifted and talented students, 
     children with disabilities, and students with limited-English 
     proficiency, services provided under title I of the 
     Elementary and Secondary Education Act of 1965 or similar 
     State or local programs, programs in vocational and technical 
     education, and school nutrition programs);
       ``(3) professional development and other activities for 
     educators and pupil services personnel that are designed to 
     heighten the understanding and sensitivity of such personnel 
     to the needs of homeless children and youth, the rights of 
     such children and youth under this Act, and the specific 
     educational needs of runaway and homeless youth;
       ``(4) the provision of referral services to homeless 
     children and youth for medical, dental, mental, and other 
     health services;
       ``(5) the provision of assistance to defray the excess cost 
     of transportation for students pursuant to section 
     722(g)(4)(A), not otherwise provided through Federal, State, 
     or local funding, where necessary to enable students to 
     attend the school selected under section 722(g)(3);
       ``(6) the provision of developmentally appropriate early 
     childhood education programs, not otherwise provided through 
     Federal, State, or local funding, for preschool-aged 
     children;
       ``(7) the provision of services and assistance to attract, 
     engage, and retain homeless youth (as described in paragraphs 
     (1) and (2) of section 725) in public school programs and 
     services provided to nonhomeless youth;
       ``(8) the provision for homeless children and youth of 
     before- and after-school, mentoring, and summer programs in 
     which a teacher or other qualified individual provides 
     tutoring, homework assistance, and supervision of educational 
     activities;
       ``(9) if necessary, the payment of fees and other costs 
     associated with tracking, obtaining, and transferring records 
     necessary to enroll homeless children and youth in school, 
     including birth certificates, immunization or medical 
     records, academic records, guardianship records, and 
     evaluations for special programs or services;

[[Page 8975]]

       ``(10) the provision of education and training to the 
     parents of homeless children and youth about the rights of, 
     and resources available to, such children and youth;
       ``(11) the development of coordination between schools and 
     agencies providing services to homeless children and youth, 
     as described in section 722(g)(5);
       ``(12) the provision of pupil services (including violence 
     prevention counseling) and referrals for such services;
       ``(13) activities to address the particular needs of 
     homeless children and youth that may arise from domestic 
     violence;
       ``(14) the adaptation of space and purchase of supplies for 
     nonschool facilities made available under subsection (a)(2) 
     to provide services under this subsection;
       ``(15) the provision of school supplies, including those 
     supplies to be distributed at shelters or temporary housing 
     facilities, or other appropriate locations; and
       ``(16) the provision of other extraordinary or emergency 
     assistance needed to enable homeless children and youth to 
     attend school.

     ``SEC. 724. SECRETARIAL RESPONSIBILITIES.

       ``(a) Review of Plans.--In reviewing the State plan 
     submitted by a State educational agency under section 722(g), 
     the Secretary shall use a peer review process and shall 
     evaluate whether State laws, policies, and practices 
     described in such plans adequately address the problems of 
     homeless children and youth relating to access to education 
     and placement as described in such plans.
       ``(b) Technical Assistance.--The Secretary shall provide 
     support and technical assistance to the State educational 
     agencies to assist such agencies to carry out their 
     responsibilities under this subtitle, if requested by the 
     State educational agency.
       ``(c) Notice.--The Secretary shall, before the next school 
     year that begins after the date of the enactment of the 
     McKinney-Vento Homeless Education Assistance Improvements Act 
     of 2001, create and disseminate nationwide a public notice of 
     the educational rights of homeless children and youth and 
     disseminate such notice to other Federal agencies, programs, 
     and grantees, including Head Start grantees, Health Care for 
     the Homeless grantees, Emergency Food and Shelter grantees, 
     and homeless assistance programs administered by the 
     Department of Housing and Urban Development.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     conduct evaluation and dissemination activities of programs 
     designed to meet the educational needs of homeless elementary 
     and secondary school students, and may use funds appropriated 
     under section 726 to conduct such activities.
       ``(e) Submission and Distribution.--The Secretary shall 
     require applications for grants under this subtitle to be 
     submitted to the Secretary not later than the expiration of 
     the 60-day period beginning on the date that funds are 
     available for purposes of making such grants and shall make 
     such grants not later than the expiration of the 120-day 
     period beginning on such date.
       ``(f) Determination by Secretary.--The Secretary, based on 
     the information received from the States and information 
     gathered by the Secretary under subsection (e), shall 
     determine the extent to which State educational agencies are 
     ensuring that each homeless child and homeless youth has 
     access to a free appropriate public education as described in 
     section 721(1).
       ``(g) Information.--
       ``(1) In general.--From funds appropriated under section 
     726, the Secretary shall, either directly or through grants, 
     contracts, or cooperative agreements, periodically collect 
     and disseminate data and information regarding--
       ``(A) the number and location of homeless children and 
     youth;
       ``(B) the education and related services such children and 
     youth receive;
       ``(C) the extent to which such needs are being met; and
       ``(D) such other data and information as the Secretary 
     deems necessary and relevant to carry out this subtitle.
       ``(2) Coordination.--The Secretary shall coordinate such 
     collection and dissemination with other agencies and entities 
     that receive assistance and administer programs under this 
     subtitle.
       ``(h) Report.--Not later than 4 years after the date of the 
     enactment of the McKinney-Vento Homeless Education Assistance 
     Improvements Act of 2001, the Secretary shall prepare and 
     submit to the President and the Committee on Education and 
     the Workforce of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate a report on the status of education of homeless 
     children and youth, which shall include information on--
       ``(1) the education of homeless children and youth; and
       ``(2) the actions of the Department and the effectiveness 
     of the programs supported under this subtitle.

     ``SEC. 725. DEFINITIONS.

       ``In this subtitle:
       ``(1) The term `homeless children and youth'--
       ``(A) means individuals who lack a fixed, regular, and 
     adequate nighttime residence (within the meaning of section 
     103(a)(1));
       ``(B) includes--
       ``(i) children and youth who are living in doubled-up 
     accommodations sharing the housing of another due to loss of 
     housing, economic hardship or a similar reason, are living in 
     motels, hotels, trailer parks, or camping grounds due to the 
     lack of alternative adequate accommodations, are living in 
     emergency or transitional shelters, are abandoned in 
     hospitals, or are awaiting foster care placement;
       ``(ii) individuals who have a primary nighttime residence 
     that is a public or private place not designed for or 
     ordinarily used as a regular sleeping accommodation for human 
     beings (within the meaning of section 103(a)(2)(C)); and
       ``(iii) children and youth who are living in cars, parks, 
     public spaces, abandoned buildings or substandard housing, 
     bus or train stations, or similar settings; and
       ``(C) does not include migratory children (as such term is 
     defined in section 1309(2) of the Elementary and Secondary 
     Education Act of 1965), unless such children are staying in 
     accommodations not fit for habitation.
       ``(2) The term `unaccompanied youth' includes youth not in 
     the physical custody of a parent or guardian.
       ``(3) The terms `enroll' and `enrollment' include within 
     their meaning the right to attend classes and to participate 
     fully in school activities.
       ``(4) The terms `local educational agency' and `State 
     educational agency' have the meanings given such terms in 
     section 8101 of the Elementary and Secondary Education Act of 
     1965.
       ``(5) The term `Secretary' means the Secretary of 
     Education.
       ``(6) The term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

     ``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subtitle, there are 
     authorized to be appropriated $60,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the fiscal 
     years 2003 through 2006.''.

     SEC. 915. TECHNICAL AMENDMENT.

       (a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 
     11301) is amended by striking ``Section 1 of'' and inserting 
     ``Section 101 of''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be deemed to be effective on the date of enactment of 
     Public Law 106-400.

                            PART B--REPEALS

     SEC. 921. REPEALS.

       The following provisions are repealed:
       (1) Goals.--Parts A and C of title II and title VI of Goals 
     2000: Educate America Act.
       (2) Troops-to-teachers program act of 1999.--The Troops-to-
     Teachers Program Act of 1999 (title XVII of Public Law 106-
     65; 20 U.S.C. 9301 et seq.).
       (3) ESEA.--
       (A) Title IX, relating to Indian, Native Hawaiian, and 
     Alaska Native education.
       (B) Parts A, B, C, D, F, G, I, J, L, of title X, relating 
     to programs of national significance.
       (C) Title XI, relating to coordinated services.
       (D) Title XII, relating to education infrastructure.
       (E) The title heading of title XIII and sections 13001 and 
     13002.
       (F) Title XIV, relating to general provisions.

  The CHAIRMAN. No amendment to that amendment is in order except those 
printed in House Report 107-69. Each amendment may be offered only in 
the order printed in the report, by a Member designated in the report, 
shall be considered read, shall be debatable for the time specified in 
the report, equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be subject 
to a demand for division of the question.


                 Amendment No. 1 Offered by Mr. Boehner

  Mr. BOEHNER. Mr. Chairman, pursuant to the rule, I offer an 
amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. Boehner:
       In section 1003(b) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     103 of the bill, strike ``1116(c)'' and insert ``1116(b)''.
       In section 1003(e) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     103 of the bill, strike ``amount of State funds'' and all 
     that follows through ``the preceding fiscal year'' and 
     inserting the following: ``amount of funds each local 
     educational agency receives under subpart 2 below the amount 
     received by such agency under such subpart in the preceding 
     fiscal year''.
       In section 1111 of the Elementary and Secondary Education 
     Act of 1965, as proposed to be amended by section 104 of the 
     bill, add at the end the following:
       ``(j) Special Rule with Respect to Bureau Funded Schools.--
     In determining the assessments to be used by each Bureau 
     funded school receiving funds under this part, the following 
     shall apply:
       ``(1) Each Bureau funded school which obtains accreditation 
     by the State in which it is operating shall utilize the 
     assessments the State has developed and implemented to meet 
     the requirements of this section, or such other appropriate 
     assessment as approved by the Secretary of the Interior.
       ``(2) Each Bureau funded school which obtains accreditation 
     by a regional accreditation organization shall adopt an 
     appropriate

[[Page 8976]]

     assessment, in consultation and with the approval of the 
     Secretary of Interior and consistent with assessments adopted 
     by other schools in the same State or region, that meets the 
     requirements of this section.
       ``(3) Each Bureau funded school which obtains accreditation 
     by a tribal accrediting agency or tribal division of 
     education shall use an assessment developed by such agency or 
     division, except that the Secretary of Interior shall ensure 
     that such assessment meets the requirements of this section.
       In section 1111(h)(1)(D)(i) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     104 of the bill, strike ``subsection (b)(4)(F)'' and insert 
     ``subsection (b)(4)''.
       In section 1116 of the Elementary and Secondary Education 
     Act of 1965, as proposed to be amended by section 106 of the 
     bill, add at the end the following:
       ``(f) Treatment of Bureau Funded Schools.--For the purposes 
     of applying the requirements of subsection (b) to schools 
     funded by the Bureau of Indian Affairs, the Secretary of 
     Interior shall implement such subsection in a manner that 
     treats the appropriate tribe or tribal organization as a 
     local educational agency for the purpose of implementing 
     school improvement, corrective action and restructuring 
     actions. If such tribe or tribal organization does not take 
     the appropriate action required under subsection (b), the 
     Secretary shall take such appropriate action as required 
     under subsection (b) after final notice to such tribe or 
     tribal organization.''
       In section 1116(b) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     106 of the bill--
       (1) in paragraph (7)(D), strike ``to participate in 
     developing any plan under subparagraph (A)(iii)'' and insert 
     ``, to the extent practicable, to participate in developing 
     any plan under subparagraph (A)(ii)(III)'';
       (2) in the matter preceding subparagraph (A) of paragraph 
     (8)--
       (A) insert ``(1)(E) for schools described in paragraphs 
     (1)(A)(i),'' after ``paragraph''; and
       (B) insert a comma after ``(6)(D)(i)''; and
       (3) in paragraph (9)--
       (A) insert ``(1)(E),'' after ``paragraph''; and
       (B) insert a comma after ``(6)(D)(i)''.
       In section 1116(d)(11) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     106 of the bill--
       (1) strike ``paragraph shall'' and insert ``subsection 
     shall''; and
       (2) strike ``under this paragraph''.
       In section 1118 of the Elementary and Secondary Education 
     Act of 1965, as proposed to be amended by section 108 of the 
     bill--
       (1) in paragraph (12), insert ``and'' after the semicolon;
       (2) in paragraph (13), strike ``; and'' and insert a 
     period; and
       (3) strike paragraph (14).
       In section 1221(2)(A) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     111 of the bill, strike ``alphabet;'' and insert ``alphabet 
     and letter sounds;''.
       In section 1221(5) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     111 of the bill, strike ``care agencies,'' and insert ``care 
     agencies and programs,''.
       In section 1222 of the Elementary and Secondary Education 
     Act of 1965, as proposed to be amended by section 111 of the 
     bill--
       (1) in subsection (b)--
       (A) in paragraph (2) insert ``or agencies'' after 
     ``organizations'' each place such term appears and insert 
     ``or program'' after ``child care agency''; and
       (B) in paragraph (3), insert ``or agencies'' after 
     ``organizations''; and
       (2) in subsection (e)--
       (A) in paragraph (1)(B)(i), strike ``alphabet;'' and insert 
     ``alphabet and letter sounds;''; and
       (B) in paragraph (2)(B), strike ``care agencies,'' and 
     insert ``care agencies or programs,''.
       In subpart 2 of part B of title I of the Elementary and 
     Secondary Education Act of 1965, as proposed to be amended by 
     section 111 of the bill, amend section 1224 to read as 
     follows:

     ``SEC. 1224. 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, including information on--
       ``(1) the research-based instruction, materials, and 
     activities being used in the programs funded under the grant;
       ``(2) the types of programs funded under the grant and the 
     ages of children served by such programs;
       ``(3) the qualifications of the program staff who provide 
     early literacy instruction under such programs and the type 
     of ongoing professional development provided to such staff; 
     and
       ``(4) the curricula, materials, and activities used by the 
     programs funded under the grant to support children's reading 
     development.
       In section 1711(c) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     171 of the bill--
       (1) insert ``subpart 1 of'' before ``part A of title V''; 
     and
       (2) strike ``5212(2)(A)'' and insert ``5212(a)(2)(A)''.
       In section 2012(e) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     201 of the bill, strike paragraph (12) and insert the 
     following:
       ``(12) Developing, or assisting local educational agencies 
     in developing, teacher advancement initiatives that promote 
     professional growth and emphasize multiple career paths (such 
     as career teacher, mentor teacher, and master teacher) and 
     pay differentiation.
       In section 2031(a) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     201 of the bill, amend paragraph (7) to read as follows:
       ``(7) Teacher advancement initiatives that promote 
     professional growth and emphasize multiple career paths (such 
     as career teacher, mentor teacher, and master teacher) and 
     pay differentiation.
       In title III of the bill, add at the end the following:

     SEC. 315. ACCOUNTABILITY FOR BUREAU FUNDED SCHOOLS

       Notwithstanding the provisions of section 7102 of the 
     Elementary and Secondary Education Act of 1965, the Secretary 
     shall limit any reduction of administrative funding for the 
     Bureau of Indian Affairs under such section to no more than 
     50 percent of the amount that may be reserved for 
     administration under such Act.
       In section 4131(b) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     401 of the bill--
       (1) in paragraph (14), strike ``and'' at the end;
       (2) in paragraph (15), strike the period at the end and 
     insert a semicolon; and
       (3) add at the end the following:
       ``(16) programs to establish or enhance prekindergarten 
     programs for children ages 3 through 5; and
       ``(17) academic intervention programs that are operated 
     jointly with community-based organizations and that support 
     academic enrichment and counseling programs conducted during 
     the school day (including during extended school day or 
     extended school year programs) for students most-at-risk of 
     not meeting challenging State academic standards or not 
     completing secondary school.
       In section 4201(b)(2) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     411 of the bill, insert ``academic'' before ``achievement''.
       In section 5122(a)(3) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill, insert ``students who attend'' after 
     ``target''.
       In section 5124 of the Elementary and Secondary Education 
     Act of 1965, as proposed to be amended by section 501 of the 
     bill--
       (1) in subsection (a), strike paragraph (3);
       (2) in subsection (c)(1), insert ``(including summer school 
     programs)'' after ``school activities''; and
       (3) in subsection (d), insert ``, during the summer,'' 
     after ``after school''.
       In section 5151(4)(B) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill, insert ``and harassment'' after ``weapons''.
       In section 5202(5) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill, insert ``to training'' after ``constant 
     access''.
       In section 5213(b)(4)(A) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill, strike ``that'' before ``ongoing'' and 
     insert a comma before ``so that''.
       In section 5214(b) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill--
       (1) in paragraph (5), insert ``(including software and 
     other electronically delivered learning materials)'' after 
     ``will integrate technology''; and
       (2) in paragraph (10)(B)--
       (A) strike ``an assurance that'' and insert ``a description 
     of how''; and
       (B) strike ``have compatibility and interconnectivity with 
     technology obtained'' and insert ``be integrated''.
       In section 5215(a)(2) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill, insert a comma after ``reduced-cost loans''.
       In section 5232 of the Elementary and Secondary Education 
     Act of 1965, as proposed to be amended by section 501 of the 
     bill, strike ``TELECOMMUNICATIONS PROGRAM'' in the section 
     heading and insert ``READY TO TEACH''.
       In title VI of the bill, insert after section 602 the 
     following:

     SEC. 603. ELIGIBILITY UNDER SECTION 8003 FOR CERTAIN HEAVILY 
                   IMPACTED LOCAL EDUCATIONAL AGENCIES.

       (a) Eligibility.--Section 8003(b)(2)(C) (20 U.S.C. 
     7703(b)(2)(C)) is amended--
       (1) in clauses (i) and (ii) by inserting after ``Federal 
     military installation'' each place it appears the following: 
     ``(or if the agency is a qualified local educational agency 
     as described in clause (iv))''; and
       (2) by adding at the end the following:
       ``(iv) Qualified local educational agency.--A qualified 
     local educational agency described in this clause is an 
     agency that meets the following requirements:

       ``(I) The boundaries of the agency are the same as island 
     property designated by the Secretary of the Interior to be 
     property that is held in trust by the Federal Government.

[[Page 8977]]

       ``(II) The agency has no taxing authority.
       ``(III) The agency received a payment under paragraph (1) 
     for fiscal year 2001.''.

       (b) Effective Date.--The Secretary shall consider an 
     application for a payment under section 8003(b)(2) for fiscal 
     year 2002 from a qualified local educational agency described 
     in section 8003(b)(2)(C)(iv), as added by subsection (a), as 
     meeting the requirements of section 8003(b)(2)(C)(iii), and 
     shall provide a payment under section 8003(b)(2) for fiscal 
     year 2002, if the agency submits to the Secretary an 
     application for payment under such section not later than 60 
     days after the date of the enactment of this Act.
       In section 7203(b)(2)(C) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by such 
     section 701 of the bill, strike ``Part A of title V or 
     section 5212(2)(A)'' and insert ``Subpart 1 of part A of 
     title V or section 5212(a)(2)(A)''.
       In section 8305(a) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     801 of the bill, strike ``Governor and'' and add at the end 
     the following: ``The State educational agency shall make any 
     consolidated local plans and applications available to the 
     Governor.''.
       In section 8305(c) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     801 of the bill, strike ``A Governor and State educational 
     agency'' and insert ``A State educational agency, in 
     consultation with the Governor,''.
       In part E of title VIII of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     801 of the bill--
       (1) in section 8516, insert ``ON DEPARTMENT AUDITS'' after 
     ``REPORT'' in the section heading; and
       (2) after section 8516, insert the following (and 
     redesignate succeeding provisions, and cross-references 
     thereto, accordingly):

     ``SEC. 8517. STUDY OF TESTING.

       ``(a) In General.--The Secretary shall provide for a study 
     of the effects of testing on students in elementary and 
     secondary schools. Such study may include--
       ``(1) overall improvement or decline in what students are 
     learning based on independent measures;
       ``(2) changes in course offerings, teaching practices, 
     course content, and instructional material;
       ``(3) changes in rates of teacher and administrator 
     turnover;
       ``(4) changes in dropout, grade retention and graduation 
     rates for students;
       ``(5) costs of preparing for, conducting and grading the 
     assessments in terms of dollars expended by the school 
     district and time expended by students and teachers; and
       ``(6) such other effects as the Secretary may deem 
     appropriate.
       ``(b) Report.--Not later than 2 years after the date of 
     enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall transmit to the Committee on Education and 
     the Workforce of the House of Representatives and the 
     Committee on Health, Education, Labor and Pensions of the 
     Senate a report on the study conducted under subsection (a).
       ``(c) Subsequent Congressional Consideration.--After 
     receipt of the report described in subsection (b), Congress 
     may consider whether it is appropriate to enact legislation 
     to mitigate any negative effects on students in elementary or 
     secondary schools caused by testing.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
Ohio (Mr. Boehner) and a Member opposed will each control 5 minutes.
  Mr. GEORGE MILLER of California. Mr. Chairman, I ask unanimous 
consent to claim the time otherwise reserved for the opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
California?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentleman from Ohio (Mr. 
Boehner)
  Mr. BOEHNER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, from the time the committee marked up H.R. 1 until 
today, I have been working with the ranking member, the gentleman from 
California (Mr. George Miller) and many other Members from both sides 
of the aisle to resolve a number of issues. Those issues that we have 
resolved have been included in this manager's amendment, and I wish to 
thank all of the Members for their cooperation.
  In addition, there are several technical and conforming changes that 
have been included in this amendment as well. In title I, we have made 
several changes. First, we have made it clear that transportation is to 
be provided for public school choice when a school is designated as low 
performing.
  Second, we have clarified the role of parents in developing a 
school's restructuring plan.
  Third, we have made clarifications on the assessments used by Bureau 
of Indian Affairs schools and made clear that tribal organizations 
operating Bureau of Indian Affairs schools are to be treated as local 
educational agencies for purposes of implementing school improvement 
and corrective action programs.

                              {time}  1300

  In title II, we have made technical changes regarding State 
activities and local uses of funds with respect to teacher advancement 
initiatives and pay differentiation.
  In title III, part B, we have made changes concerning the 
accountability of the Secretary of the Interior for the improvement of 
schools funded or operated by the Bureau of Indian Affairs.
  Under the innovative education block grant in title IV, we have added 
two items to the local uses of funds at the school district level. 
First, we have included activities to enhance or establish 
prekindergarten programs for 3-,
4-, and 5-year-old children. Second, we have included academic 
intervention programs for students most at risk of not meeting State 
academic achievement standards as a use of funds, as well as programs 
for students not completing secondary school.
  In title V, part B, we have clarified that one of the purposes of the 
technology grants is to provide training in the use of technology as a 
part of ongoing professional development.
  With respect to title VI and Impact Aid, we have added a provision 
that clarifies that school districts which have no tax base and whose 
boundaries are held in trust by the Federal Government are considered 
heavily impacted and therefore eligible for payments under the program.
  In the 21st Century Schools program, we have made a technical 
correction regarding the transferability of funds at the local level.
  In title VIII, we have made technical changes regarding local 
consolidation plans. Finally, in title VIII, we have added a study on 
the effects of testing on children.
  Mr. Chairman, I wish to thank my ranking member, the gentleman from 
California (Mr. George Miller) and other Members from both sides of the 
aisle for their cooperation in working out the matters.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself such 
time as I may consume.
  Mr. Chairman, the gentleman from Ohio (Mr. Boehner), the chairman, 
has quite properly explained his amendment, and we have no opposition 
to it.
  Mr. Chairman, I yield 3 minutes to the gentleman from Washington (Mr. 
Baird).
  Mr. BAIRD. Mr. Chairman, I would invite the gentleman from Ohio (Mr. 
Boehner), the chairman of the Committee on Education and the Workforce, 
to engage in a brief colloquy.
  Mr. Chairman, as the gentleman from Ohio knows, part D, section 5401 
of this legislation deals with elementary and secondary school 
counseling programs and authorizes grants for local school boards to 
establish or expand counseling programs in the school.
  Before coming to Congress, I spent 23 years as a practicing clinical 
psychologist; and I want to thank the gentleman from Ohio (Mr. Boehner) 
and members of the Committee on Education and the Workforce for 
including this element of the bill. Our kids deserve to get high 
quality counseling, and this bill provides the means for more schools 
to reach these children more easily.
  However, I am concerned that this important and well-meaning 
provision could be misunderstood by States and local school boards with 
respect to clinical psychologists. While the distinction between a 
school psychologist and a clinical psychologist is subtle, it is an 
important difference.
  Clearly there are cases that would be better handled by a school 
psychologist, and there are others in which a clinical psychologist may 
be better suited to counsel a particular child. But as I read the bill 
now, it may not be apparent that a school could utilize the services of 
a clinical psychologist. I would hate to see a child who needed

[[Page 8978]]

a certain level of care was unable to receive that level of care.
  Would the gentleman agree to seek to include the words ``clinical 
psychologist,'' to insert those words in this section once the bill 
goes to conference?
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. BAIRD. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I think the gentleman raises an important 
point, and I agree with him that all of our children deserve the most 
appropriate level of care that can be offered. Therefore, I will commit 
to work with the gentleman from Washington (Mr. Baird) when we get to 
conference on trying to ensure that his concern is addressed in the 
final version of the bill.
  Mrs. ROUKEMA. Mr. Chairman, will the gentleman yield?
  Mr. BAIRD. I yield to the gentlewoman from New Jersey.
  Mrs. ROUKEMA. Mr. Chairman, as the gentleman knows, I have worked 
hard to include school-based mental health services in this bill. I 
presented it, and I am happy to know of the gentleman's professional 
concerns here. I certainly agree with the gentleman's desire to ensure 
that our students receive the mental health services appropriate and 
from qualified providers. I do not know if the gentleman realizes it, 
but a member of my family, namely my husband, is a psychiatrist, so we 
know what we are talking about here.
  Mr. Chairman, I look forward to working with the gentleman from 
Washington. There is nothing in this bill, or certainly in my amendment 
that I put in the bill, that would prohibit his proposal here. In fact, 
I think it would underscore the importance of what the gentleman has 
stated. And so I look forward to working together to address these 
concerns in the conference. I am happy to hear from the gentleman from 
Ohio (Mr. Boehner), the chairman's support for that as well.
  Mr. BAIRD. Mr. Chairman, I thank the gentlewoman from New Jersey and 
the gentleman from Ohio, and I commend them for their leadership on 
this issue and thank them for their consideration for children in need.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield back the 
balance of my time.
  Mr. BOEHNER. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Ohio (Mr. Boehner).
  The amendment was agreed to.


                 Amendment No. 2 Offered by Mrs. Capps

  Mrs. CAPPS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mrs. Capps:
       In subsection (b) of section 4131 of the Elementary and 
     Secondary Education Act of 1965, as proposed to be amended by 
     section 401 of the bill--
       (1) strike ``and'' at the end of paragraph (14);
       (2) strike the period at the end of paragraph (15) and 
     insert ``; and''; and
       (3) add at the end the following:
       ``(16) programs for cardiopulmonary resuscitation (CPR) 
     training in schools.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentlewoman from 
California (Mrs. Capps) and the gentleman from Indiana (Mr. Souder) 
each will control 5 minutes.
  The Chair recognizes the gentlewoman from California (Mrs. Capps).
  Mrs. CAPPS. Mr. Chairman, I yield myself such time as I may consume.
  I am pleased to offer this amendment to provide funding for CPR 
training in schools on behalf of myself, the gentlewoman from Maryland 
(Mrs. Morella), and the gentleman from Florida (Mr. Foley). This is a 
simple amendment. It would allow funds in title IV, the block grant 
provision of the bill, to be used to teach our kids CPR in schools. 
This amendment is based on legislation which I introduced earlier this 
year with the gentleman from Florida (Mr. Foley) and the gentlewoman 
from Maryland (Mrs. Morella) and others to encourage CPR instruction in 
public schools. It has been endorsed by the American Heart Association, 
the National Education Association, and the American Red Cross, among 
others.
  Mr. Chairman, heart disease is the leading cause of death in the 
United States with 220,000 Americans dying each year of sudden cardiac 
arrest. But according to the Heart Association, 50,000 cardiac victims 
could be saved each year by initiating a chain of survival. This 
includes an immediate call to 911, early CPR and defibrillation, and 
early advanced life support. The Congress has recently taken action to 
enhance our 911 system and encourage automated external defibrillators 
to be placed in public buildings. Encouraging more of our citizens to 
know CPR is clearly the next step as we continue strengthening this 
chain of survival. Teaching our kids this skill gives them the ability 
to assist cardiac victims, and will impress upon them how important it 
is to be prepared to help their fellow citizens in time of need. It 
also encourages the development of heart-healthy habits, diet, 
exercise, avoiding smoking. These are good things to learn at an early 
age.
  Mr. Chairman, this bill grew out of my experience as a school nurse 
in California where I began a CPR curriculum. I saw a need to teach 
students these life-saving skills. The strength of this amendment is 
that it encourages collaboration between public schools and community 
organizations such as the Red Cross and the Heart Association.
  Mr. Chairman, I urge my colleagues to support this amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SOUDER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me first point out that I am not against CPR. My 
father died at age 55, as did his two brothers, of a heart attack. So 
did my grandfather on both sides die of heart attacks. I agree CPR is 
needed. I agree that education on what you can eat, and exercise 
exercise is needed.
  Mr. Chairman, I rise in opposition to this amendment because quite 
frankly, any reform bill that is a thousand pages long has a 
fundamental problem with it in the beginning. In trying to find out 
where this amendment is, title IV has between 90 and 100 pages in it. 
It has allowable uses, so to speak, coming out of one's ears. It is not 
clear that they cannot already use these funds for CPR. It is kind of a 
pattern that we have in Washington that we think if we do not put in 
the bill that they can use dollars for CPR to work among the schools 
and school districts, that somehow the local educators might not 
realize that CPR is important, or that State educators might not 
realize CPR is important.
  Mr. Chairman, throughout the whole bill we have this assumption that 
unless we specifically write it in and tell these poor, kind of 
backwards people in Indiana and California and other parts of the 
country what they can and cannot do, that we have failed as 
congressmen.
  I know very few schools that do not do CPR training, but I do not 
believe that it is essential to put that in this bill. In Title IV, 
Federal funds are used rather than local health departments, or local 
fire departments and ambulance departments which frequently do CPR 
training, these funds would come directly out of teacher training and 
the programs that we are doing to help the schools at risk. Federal 
programs should be tightly targeted to those in need, not necessarily 
towards a broad, sweeping program where there are plenty of avenues to 
fund them at the local level.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. CAPPS. Mr. Chairman, I yield 1 minute to the gentleman from Ohio 
(Mr. Boehner), the chairman of the committee.
  Mr. BOEHNER. Mr. Chairman, I thank the gentlewoman from California 
for yielding me this time.
  I think that title IV is a block grant that allows school districts 
to do all types of activities. Certainly I think CPR training is an 
appropriate activity for the use of Federal funds. And I absolutely see 
no reason why we should not include this to the laundry list, as the 
gentleman from Indiana who is opposing the amendment pointed out.

[[Page 8979]]

  There is a laundry list, because without some definition of what you 
can and cannot use Federal funds for, school districts will come up 
with all kinds of ideas how to use that money. That is why I think 
allowing this to be included, along with the three items that the 
gentleman from Indiana requested to be part of allowable uses of funds 
under title IV, I see no reason why this should not join those and be 
part of the bill.
  Mrs. CAPPS. Mr. Chairman, I yield back the balance of my time.
  Mr. SOUDER. Mr. Chairman, I yield myself the balance of my time.
  I want to clarify because I, like many others, have a number of 
things in this bill and I have been pleased to work with both the 
gentleman from Ohio (Mr. Boehner) and the gentleman from California 
(Mr. George Miller) as we have worked through this bill.
  Mr. Chairman, at some point we passed the point of no return. This 
bill grows and grows. In fact, I wonder why we do not have a national 
test for CPR. I took CPR in high school; and quite frankly, I do not 
know if anyone would want me to perform CPR on them. Perhaps because we 
do not trust the local and State governments to come up with their 
tests in other areas, we should have a fall back test on CPR to make 
sure that they are actually teaching CPR in the way that CPR should be 
taught.
  On the other hand, I want to commend the gentlewoman for her concern, 
and her career concern, with combating heart disease. I know that I am 
likely to be a lone vote on this but I wanted to make a couple of 
points. To me this is a symptom of what is wrong with this bill.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from California (Mrs. Capps).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.
  Mr. SOUDER. Mr. Chairman, I demand a recorded vote, and pending that, 
I make the point of order that a quorum is not present.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentlewoman from California (Mrs. 
Capps) will be postponed.
  The point of no quorum is considered withdrawn.
  The CHAIRMAN. It is now in order to consider amendment No. 4 printed 
in House Report 107-69.


                 Amendment No. 4 Offered by Mr. Graves

  Mr. GRAVES. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Graves:
       In part F of title VIII of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     801 of the bill, add at the end the following:

     ``SEC. 8605. EFFECTIVE USE OF FEDERAL ELEMENTARY AND 
                   SECONDARY EDUCATION FUNDS.

       ``It is the sense of the Congress that the Secretary, State 
     educational agencies, and local educational agencies should 
     work together to ensure that not less than 95 percent of all 
     funds appropriated to carry out elementary and secondary 
     education programs under this Act is spent directly to 
     improve the academic achievement of the Nation's children in 
     their classrooms.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
Missouri (Mr. Graves) and a Member opposed will each control 5 minutes.
  Mr. GEORGE MILLER of California. Mr. Chairman, I ask unanimous 
consent to claim the time otherwise reserved for the opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
California?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentleman from Missouri (Mr. 
Graves).
  Mr. GRAVES. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, we are at a crossroads in Federal education policy. 
There are those that still believe that all wisdom lies in Washington, 
and solutions to our education woes will be found in the bowels of 
Washington bureaucracy. Yet H.R. 1 is a road down a new path. This 
legislation recognizes the power, the possibility, and the promise of 
our public schools.

                              {time}  1315

  Today, I urge my colleagues to support our local teachers, 
administrators, and school board members who in the majority of our 
schools are finding common-sense solutions to this generation's 
problems.
  By directing 95 cents of every education dollar directly to the 
classroom, we will empower teachers, not bureaucrats, and we will 
support education, not regulation. I offer for my colleagues' approval 
today, a very simple amendment. It directs the Department of Education 
to join our States and local school districts in an all-out effort to 
direct 95 percent of all our Federal education dollars to the place in 
which it belongs the most, the classroom.
  Mr. Chairman, too many education dollars are spent on bureaucracies 
at all levels of government. Federal education dollars should not 
benefit a bloated bureaucracy. Rather, those precious dollars should 
provide maximum educational opportunities for all of our students.
  As we reauthorize the Elementary and Secondary Education Act, we must 
do our part to ensure that increased spending is coupled with increased 
flexibility.
  By sending more education dollars directly to the classroom, we will 
shift the focus of our education system back to the students, the 
families, the classrooms, the schools, and the communities of our 
Nation.
  Mr. Chairman, while there may be some disagreement on how we do it, 
we all agree that today's youth deserve an education system that is 
second to none.
  As I travel the Sixth Congressional District of Missouri and listen 
to the hopes and dreams of youth today from Maryville to Blue Springs 
and Park Hill to Brookfield, I am reminded that what we do here in 
Congress really does matter. Our decisions will have a significant 
impact on our children's future and the future of our country.
  Mr. Chairman, the people of this country and the President of this 
Nation have made education the top priority. Let us join them today in 
embracing a new vision for American education that strengthens schools, 
streamlines bureaucracy, and supports our classrooms.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself such 
time as I may consume.
  Mr. Chairman, we have no problem with sense of the Congress amendment 
on this matter offered by the gentleman from Missouri (Mr. Graves). 
This has obviously been a matter that has been of growing concern in 
the Congress to make sure that we, in fact, have the ability to drive 
every dollar possible to the classroom, to the local level, where the 
decision-making that is on a day-to-day basis for the well being of our 
children is made and that they have the opportunity to use those 
resources that we have dedicated for that purpose.
  I would say, however, that I find this somewhat in conflict with 
those who will support the Straight A's proposal because, in fact, the 
Straight A's proposal allows 8 percent of the title I money to be held 
at the State level and 10 percent of the money on everything else to be 
held at the State level. This is money that a State would hold onto 
itself, and in many instances we know that that is really about the 
bureaucracy funding itself, a State bureaucracy funding itself, with 
Federal dollars. Whether that in some cases is legal or not, the fact 
of the matter is that is what happens.
  So we support this resolution because we strongly believe that we 
should be driving these dollars to the classroom. We also strongly 
believe that we should increase the flexibility at the local level, and 
we have done that in this legislation. That is why later on we will be 
opposing the proposal on the Straight A's.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?

[[Page 8980]]


  Mr. GEORGE MILLER of California. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I thank the gentleman from California (Mr. 
George Miller) for yielding.
  Mr. Chairman, I, too, support the resolution offered by the gentleman 
from Missouri (Mr. Graves). If we look at the bill that we have before 
us, we will see that local districts have far more flexibility over how 
they use Federal funds than at any time in any Federal education 
program.
  We also believe that to the extent possible, we ought to continue to 
work at reducing the paperwork requirements on States and local 
districts, so, in fact, more of these funds actually get to the 
classroom and can get to the children who most need it.
  Mr. GEORGE MILLER of California. Mr. Chairman, I thank the chairman 
for his comments. I think clearly this amendment is consistent with 
what we said we want to do in this legislation, and we have no 
opposition.
  Mr. Chairman, I yield back the balance of my time.
  Mr. GRAVES. Mr. Chairman, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Pitts), who has been a tireless advocate on behalf of 
sending Federal education dollars back to the classroom.
  Mr. PITTS. Mr. Chairman, I rise in support of the Graves amendment. 
Since I came to Congress, I have been working to promote this idea of 
getting 95 cents out of every Federal education tax dollar to the 
classrooms of America. I applaud my friend from Missouri (Mr. Graves) 
for offering this amendment today, an amendment that puts children 
first in education.
  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 paperwork is associated with those Federal 
dollars.
  In 1998, the Department of Education paperwork and data reporting 
requirements totaled 40 million ``burden hours,'' the equivalent of 
19,300 people working 40 hours a week for 1 year just to comply with 
Federal programs.
  Instead of spending money on bureaucracy, I believe that Federal 
dollars are better spent directly in our Nation's classrooms, on things 
like textbooks, computers, maps, teacher aids, microscopes, other 
classroom aids, things that help teachers teach and children learn.
  Local schools are best suited to make decisions about allocating 
resources. They understand their students' background, the needs. They 
can respond to them most directly with proven methods of instruction. 
This amendment sets a standard to reduce bureaucracy and ineffective 
spending, gets more money into the hands of a person who knows a 
child's name.
  We must prioritize the way we spend our education tax dollars and put 
children first. I urge support for this amendment.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. PITTS. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I thank the gentleman from Pennsylvania 
(Mr. Pitts) for yielding, and I also thank him for his tireless efforts 
on this project.
  Over the last 4 years, 5 years, he has worked at trying to ensure 
that more of these Federal education dollars get back to the classroom. 
I can say we would not be talking about this issue today still if it 
had not been for the tenacity of the gentleman from Pennsylvania (Mr. 
Pitts). Congratulations.
  Mr. GRAVES. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, this is a simple amendment, and it does empower local 
schools.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Missouri (Mr. Graves).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.
  Mr. GRAVES. Mr. Chairman, I demand a recorded vote, and pending that, 
I make a point of order that a quorum is not present.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentleman from Missouri (Mr. Graves) 
will be postponed.
  The point of no quorum is considered withdrawn.


          Sequential Votes Postponed in Committee of the Whole

  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, proceedings will 
now resume on those amendments on which further proceedings were 
postponed in the following order: amendment No. 2 offered by the 
gentlewoman from California (Mrs. Capps), and amendment No. 4 offered 
by the gentleman from Missouri (Mr. Graves).
  The Chair will reduce to 5 minutes the time for the second electronic 
vote.


                 Amendment No. 2 Offered by Mrs. Capps

  The CHAIRMAN. The pending business is the demand for a recorded vote 
on the amendment offered by the gentlewoman from California (Mrs. 
Capps) on which further proceedings were postponed and on which the 
ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 421, 
noes 2, not voting 9, as follows:

                             [Roll No. 128]

                               AYES--421

     Ackerman
     Aderholt
     Akin
     Allen
     Andrews
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barr
     Barrett
     Bartlett
     Barton
     Bass
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop
     Blagojevich
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chabot
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Conyers
     Cooksey
     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crenshaw
     Crowley
     Culberson
     Cummings
     Cunningham
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Filner
     Flake
     Fletcher
     Foley
     Ford
     Fossella
     Frank
     Frelinghuysen
     Frost
     Gallegly
     Ganske
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Granger
     Graves
     Green (TX)
     Green (WI)
     Grucci
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Harman
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kerns
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Langevin
     Lantos
     Largent
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller (FL)
     Miller, Gary
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup

[[Page 8981]]


     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Oxley
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roukema
     Roybal-Allard
     Royce
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Scarborough
     Schaffer
     Schakowsky
     Schiff
     Schrock
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Strickland
     Stump
     Stupak
     Sununu
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Towns
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Wamp
     Waters
     Watkins
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NOES--2

     Johnson, Sam
       Souder
       

                             NOT VOTING--9

     Abercrombie
     Cubin
     Greenwood
     Hansen
     McKinney
     Moakley
     Owens
     Rogers (KY)
     Walsh

                              {time}  1343

  Ms. SOLIS changed her vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


                      Announcement by the Chairman

  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, the Chair announces 
that he will reduce to a minimum of 5 minutes the period of time during 
which a vote by electronic device will be taken on the second amendment 
on which the Chair has postponed further proceedings.


                 Amendment No. 4 Offered by Mr. Graves

  The CHAIRMAN. The pending business is the demand for a recorded vote 
on the amendment offered by the gentleman from Missouri (Mr. Graves) on 
which further proceedings were postponed and on which the ayes 
prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The CHAIRMAN. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 422, 
noes 0, not voting 10, as follows:

                             [Roll No. 129]

                               AYES--422

     Ackerman
     Aderholt
     Akin
     Allen
     Andrews
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barr
     Barrett
     Bartlett
     Barton
     Bass
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop
     Blagojevich
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chabot
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Conyers
     Cooksey
     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crenshaw
     Crowley
     Culberson
     Cummings
     Cunningham
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Filner
     Flake
     Fletcher
     Foley
     Ford
     Fossella
     Frank
     Frelinghuysen
     Frost
     Gallegly
     Ganske
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Granger
     Graves
     Green (TX)
     Green (WI)
     Grucci
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Harman
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E.B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kerns
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Langevin
     Lantos
     Largent
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller (FL)
     Miller, Gary
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Oxley
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pitts
     Platts
     Pombo
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roukema
     Roybal-Allard
     Royce
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Schaffer
     Schakowsky
     Schiff
     Schrock
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Strickland
     Stump
     Stupak
     Sununu
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Towns
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                             NOT VOTING--10

     Abercrombie
     Cubin
     Greenwood
     Hansen
     McCarthy (NY)
     Moakley
     Owens
     Pickering
     Rogers (KY)
     Scarborough

                              {time}  1352

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  Stated for:
  Mr. PICKERING. Mr. Chairman, I was inadvertently detained and unable 
to vote on rollcall No. 129, expressing the sense of Congress that the 
Education Department, states, and school districts should work together 
to ensure that at least 95% of all federal education funds be spent 
directly to improve the academic achievement of children in the 
classroom.
  Had I been present, I would have voted ``yea'' on rollcall No. 129.
  The CHAIRMAN. It is now in order to consider amendment No. 5 printed 
in House Report 107-69.


                  Amendment No. 5 Offered by Mr. Hill

  Mr. HILL. Mr. Chairman, I offer an amendment made in order under the 
rule.
  The CHAIRMAN. The Clerk will designate the amendment.

[[Page 8982]]

  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Hill:
       In section 401 of the bill, at the end of section 4131(b) 
     of the Elementary and Secondary Education Act of 1965 (as 
     proposed to be amended by such section 401) add the 
     following:
       ``(16) programs to establish smaller learning communities.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
Indiana (Mr. Hill) and a Member opposed will each control 5 minutes.
  Mr. DUNCAN. Mr. Chairman, I ask unanimous consent to be given the 
time normally reserved for those in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Tennessee?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentleman from Indiana (Mr. 
Hill).
  Mr. HILL. Mr. Chairman, I yield myself 1\1/2\ minutes.
  Mr. Chairman, when I was growing up in Jackson County, Indiana, there 
were more high schools than there are today. In towns like Tampico and 
Clear Spring and Cortland, there were high schools that local kids 
attended and local families supported. These schools brought people 
together and helped keep their towns strong and vital places to lives. 
They were the heartbeats of their communities.
  When school consolidation forced high schools to close, it tore the 
hearts right out of these communities. These high schools, along with 
thousands of other small schools around America, were closed because 
for many years educators followed a rule that bigger schools are 
better. For a long time, we all assumed that bigger schools were better 
because they could offer students more courses, more extracurricular 
activities, and could save schools money.
  We need to rethink our assumptions about larger schools. New research 
shows that achievement levels in smaller schools are higher, especially 
among children from disadvantaged backgrounds who need extra help to 
succeed.
  Mr. Chairman, my amendment would not authorize a separate program. 
Title IV of the bill includes a list of innovative options that local 
schools can explore. My amendment would simply add smaller learning 
communities to that list. My amendment would simply allow local 
education agencies to judge for themselves whether a smaller learning 
community program is the best strategy for helping students and 
teachers.
  Mr. Chairman, I reserve the balance of my time.
  Mr. DUNCAN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. DUNCAN. Mr. Chairman, I first would like to thank the gentleman 
from Indiana (Mr. Hill) for his leadership in the movement to reverse 
the size of the growth in our schools.
  He and I and our staffs have worked together for the last 2 years to 
obtain funding within the Department of Education for the smaller 
schools initiative program, a very, very important program within our 
Department of Education.
  At a smaller school, a young person has a better chance to make a 
sports team, serve on the student council, lead a club, be a 
cheerleader, or excel or stand out in some other way. Also, a student 
at a smaller school can get more individual attention and not feel just 
like a number in some education factory.
  Actually, very large schools, large high schools, sometimes breed 
very dangerous types of situations because, while most students can 
handle very big schools, a few always feel alienated and feel like they 
have to resort to strange or dangerous behavior to get noticed.
  I was very shocked, for instance, when I read that the principal at 
the Columbine High School had never even heard of the Trench Coat 
Mafia, even though the group's picture had been published in the school 
yearbook.
  Agusta Kappner, a former U.S. assistant secretary of education, wrote 
recently in USA Today that ``good things happen'' when large schools 
are remade into smaller ones. She said, ``Incidents of violence are 
reduced; students' performance, attendance, and graduation rates 
improve; disadvantaged students significantly outperform those in large 
schools on standardized tests; students of all social classes and races 
are treated more equitably; teachers, students, and the local community 
prefer them.
  Students are better off going to smaller schools, Mr. Chairman, even 
in older buildings, as long as they are clean and safe and well-lit, 
than they are going to large, very centralized high schools, even in 
brand new buildings.
  We have done a good job of reducing class sizes in most places, but 
too often we are making a very bad mistake in making students go to 
very large high schools. Just yesterday I had one of my constituents 
tell me that at her small community high school she knew everyone 
there, even in the lower grades, but at the large, centralized high 
school which her daughter attended, she did not even know two-thirds of 
the people in her own class.
  I remember several years ago reading that the largest high school in 
New York City had 3,500 students, and when they broke it up into five 
separate high schools, their drug and discipline problems went way 
down.
  I feel very strongly about this issue, and I could go on at length. 
But I want to emphasize briefly four main points why we need to pass 
the Hill amendment.

                              {time}  1400

  One, educational experts are increasingly rejecting the ``bigger is 
better'' approach to schools. In the smaller schools, obviously 
students can get more individualized attention.
  Secondly, research is finding that smaller schools especially help 
minority and disadvantaged students.
  The third point, more and more high school principals have criticized 
``bigness.'' The National Association of Secondary School Principals 
recommended in 1999 that high schools change their structure to limit 
enrollments to schools of no more than 600 students in size.
  Fourth, smaller schools reduce violence and criminality.
  In summary, the Hill amendment is very simple. It lets local school 
districts use the local innovative programs to reduce the size of their 
schools as they feel that that action would improve school quality. 
This is a very good amendment.
  Mr. Chairman, I am proud to join the gentleman from Indiana (Mr. 
Hill) in supporting this amendment.
  Mr. Chairman, I yield 1 minute to the gentleman from Ohio (Mr. 
Boehner), the chairman of the Committee on Education and the Workforce.
  Mr. BOEHNER. Mr. Chairman, I want to thank the gentleman from 
Tennessee (Mr. Duncan), my colleague, for yielding the time to me.
  Mr. Chairman, I want to congratulate both the gentleman from 
Tennessee (Mr. Duncan) and the gentleman from Indiana (Mr. Hill) for 
their amendment that we have before us.
  I know firsthand what happens in large high schools. The community in 
which I live had a high school with over 3,000 students, and the 
community eventually voted to build two new high schools, and it 
provided many more opportunities for many of the students that formerly 
had attended just one high school.
  I think under the amendment offered by the gentleman from Indiana 
(Mr. Hill), this is an allowable use of funds under title IV, which is 
the Innovative Block Grant Program, and this is the type of program 
that I think is good for some school districts that would make this an 
allowable use of funds.
  It is appropriate, and I support the Hill amendment.
  Mr. HILL. Mr. Chairman, I want to thank the gentleman from Tennessee 
(Mr. Duncan) and the gentleman from Ohio (Mr. Boehner) for their words 
and their strong support on this.
  Mr. Chairman, I yield 2 minutes to the gentleman from the State of 
Washington (Mr. Baird), my good friend.
  Mr. BAIRD. Mr. Chairman, I thank the gentleman from Indiana (Mr. 
Hill) for yielding the time to me.
  Mr. Chairman, I want to also thank the gentleman from Tennessee (Mr. 
Duncan) and the gentleman from Ohio

[[Page 8983]]

(Mr. Boehner), the chairman of the Committee on Education and the 
Workforce, for their support of this initiative, and I rise in strong 
support of the amendment.
  This amendment allows local school districts to use innovative funds 
authorized to create smaller learning communities in their schools.
  When I was growing up, as with other Members of this body, our 
schools were a manageable size where you knew the teachers, the 
teachers knew who the kids were, and we all knew each other.
  Communities were proud of their schools. The schools brought people 
together and helped keep their towns strong and vital places to live.
  But the Nationwide trends towards consolidation in larger schools has 
brought ever-increasing problems. Since 1930, the number of high 
schools in the U.S. has declined 70 percent from 262,000 schools to 
88,000 in 1996. In 1930, the average school had 100 students. In 1996, 
the average school had 510 students.
  It is unbelievable that America's grown by 100 million people, yet 
the number of schools has declined by almost two-thirds.
  I will say it again, too many schools are simply too big today. Yet, 
research tells us from many studies that smaller schools are more 
personalized, less bureaucratic, show fewer inequities in student 
achievement, have higher attendance rates, higher participation in 
school activities, and violence and criminality are significantly 
reduced.
  In addition, students in smaller schools perform better in the core 
subjects of reading, math, history, and science.
  Think about it for just a second. No matter how big or small your 
school is, there are only nine folks who play on the baseball team. 
Kids in smaller schools have more opportunities to participate and more 
opportunities to be involved, and that makes better schools and better 
education.
  Shortly after the Columbine tragedy, the gentleman from Indiana (Mr. 
Hill) and I talked about that and what could be done. We discussed 
bullying and we discussed this problem of school size.
  We talked about what could be done, and I commend with all of my 
heart the gentleman from Indiana (Mr. Hill) for his initiative and the 
gentleman from Ohio (Chairman Boehner) and the gentleman from Tennessee 
(Mr. Duncan) in proposing this amendment.
  It is the right thing to do to move from these massive schools to 
smaller schools where faculty know the kids and families know the 
faculty.
  This amendment will improve our schools.
  Mr. DUNCAN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I will simply say this, the school superintendent in my 
home county of Knox County, Tennessee, told me that the school system 
he moved from in South Carolina a couple of years ago was the largest 
high school, it had 3500 students but it was going to 3800 students. 
That is a trend that we see all over this Nation.
  It is a bad trend for the youth of America. We need to do whatever we 
can to reverse that trend, and that is why I strongly support the 
Smaller Schools Initiative that the gentleman from Indiana (Mr. Hill) 
and I have worked on within the Department of Education and why this 
amendment, I think, should be supported by all Members.
  Mr. Chairman, I appreciate very much the good words spoken by the 
gentleman from Ohio (Mr. Boehner), chairman of the Committee on 
Education and the Workforce, and for his support of this amendment.
  Once again, I commend the gentleman from Indiana (Mr. Hill) for his 
leadership on this issue.
  Mr. Chairman, I yield back the balance of my time.
  Mr. HILL. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman 
from California (Ms. Sanchez).
  Ms. SANCHEZ. Mr. Chairman, I am pleased to speak in support of this 
amendment, because it is a school safety measure. School safety is not 
just about metal detectors or locker checks.
  Safe schools mean that the faculty and administrators can know their 
students and they can watch for the warning signs of any impending 
violence.
  This is a very difficult time when most of our high schools, 
especially in the area I represent, have enrollments of 2,000 to 3,000 
students. This is also a matter of common sense.
  Students feel less alienated and more connected to caring adults when 
they are in a smaller school. Smaller schools mean that there is 
improved morale. There is higher participation by the students, higher 
attendance, lower dropout rates, less crime, violence, alcohol, tobacco 
problems, fewer behavior and discipline problems.
  There is higher achievement in smaller schools and closer teacher-
student relations. Overall, smaller schools mean safer schools.
  Including real support for smaller schools in the ESEA will show a 
commitment to providing safer and better learning communities for all 
of our students.
  Mr. Chairman, I urge my colleagues to support smaller learning 
communities and prove this commitment.
  Mr. Chairman, I thank the gentleman from Indiana (Mr. Hill) for 
yielding me the time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Indiana (Mr. Hill).
  The amendment was agreed to.
  The CHAIRMAN. Pursuant to the order of the House of today, it is now 
in order to consider amendment No. 3 printed in the House Report 107-
69.


                  Amendment No. 3 Offered by Ms. Dunn

  Ms. DUNN. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Ms. Dunn:
       In section 5115(b)(2) of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     501 of the bill, strike subparagraph (D) and insert the 
     following:
       ``(D) to the extent that expenditures do not exceed 20 
     percent of the amount made available to a local educational 
     agency under this subpart (except that this subparagraph 
     shall not apply to the hiring and training of school resource 
     officers pursuant to clause (ii)), law enforcement and 
     security activities, including--
       ``(i) acquisition and installation of metal detectors;
       ``(ii) hiring and training of security personnel (including 
     school resource officers), that are related to youth drug and 
     violence prevention;
       ``(iii) reporting of criminal offenses on school property; 
     and
       ``(iv) development of comprehensive school security 
     assessments;

  The CHAIRMAN. Pursuant to House Resolution 143, the gentlewoman from 
Washington (Ms. Dunn) and a Member opposed will each control 5 minutes.
  Mr. FROST. Mr. Chairman, although I do not oppose the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas (Mr. Frost)?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentlewoman from Washington 
(Ms. Dunn).
  Ms. DUNN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, first, I would like to commend the gentleman from Ohio 
(Chairman Boehner) and the gentleman from California (Mr. George 
Miller), the ranking member, for guiding us along this road towards 
reforming America's education system and truly making sure that no 
child is left behind.
  I rise today, along with the gentleman from Texas (Mr. Frost), to 
offer an amendment designed to give communities greater flexibility to 
use their Federal education dollars to hire school resource officers. 
School resource officers are specially trained, uniformed policemen and 
women who are sent into the public schools to identify at-risk youth 
and serve as positive role models and mentors to students.
  During the 106th Congress, the gentleman from Texas and I served as 
cochairs of the Speaker's Bipartisan Working Group on Youth Violence.
  Included in the Working Group's final report was a recommendation 
that Congress provide adequate funds

[[Page 8984]]

for school resource officers and other programs that bring law 
enforcement into the schools as mentors and instructors.
  Earlier this year, we witnessed the importance of having these safety 
officers in schools. During a recent school shooting at Granite Hills 
High School in Southern California, the campus school resource officer 
was able to stop the youth offender, and he was instrumental in 
preventing further violence.
  The school principal called the officer his personal hero and 
credited him for saving the lives of other students.
  H.R. 1 places a 20 percent cap on the amount of Federal funds local 
education agencies can use for authorized law enforcement and security 
activities, including the hiring of school resource officers.
  Our amendment lifts this cap and it gives local educational agencies 
the option to spend any portion of their Federal funds on hiring school 
resource officers.
  Mr. Chairman, our Nation's schools should be safe places. We must 
provide an atmosphere where teachers feel safe to teach and students 
feel safe enough to learn.
  School resource officers are an important part of any school safety 
plan, and every effort should be made at the Federal level to give 
schools greater flexibility to hire these officers as a violence 
prevention measure.
  Mr. Chairman, I urge my colleagues to support this important 
amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. FROST. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I am pleased to offer this important school safety 
amendment with the gentlewoman from Washington (Ms. Dunn), my friend 
and fellow cochair of the Bipartisan Task Force on Youth Violence.
  After the Columbine school shootings, our Youth Violence Task Force 
heard from parents, teachers, police, counselors, and other experts 
about what Congress could do to combat growing youth violence.
  We all agreed that school safety officers are a crucial piece of any 
real approach to youth violence. So the Dunn-Frost amendment empowers 
schools by lifting the 20 percent cap on Federal funds under title V 
that local educational agencies may use for security activities, 
including the hiring of school safety officers.
  I have heard directly from school officials throughout my district 
about the sense of comfort and security these officers have given 
students traumatized by reports of school shootings.
  By placing school resource officers in schools, we enable officers to 
teach crime and violence prevention, to facilitate substance abuse 
education, to monitor troubled students, and to build respect for law 
enforcement.
  This amendment directly reflects requests that have been brought to 
our attention by school administrators, teachers, parents, and 
students.
  It is our obligation to listen to our communities. It is time to stop 
only discussing the problem of our troubled youth and to start to be a 
part of the solution to this national crisis.
  Passing the Dunn-Frost amendment will give schools the freedom to 
hire the officers they need to make the students safe, an important 
step towards helping troubled youth and stemming the tragic tide of 
youth violence.
  Mr. Chairman, I reserve the balance of my time.
  Ms. DUNN. Mr. Chairman, I yield 30 seconds to the gentleman from Ohio 
(Mr. Boehner), the chairman of the Committee on Education and the 
Workforce.
  Mr. BOEHNER. Mr. Chairman, I want to thank the gentlewoman from the 
State of Washington (Ms. Dunn) for her amendment, along with the 
gentleman from Texas (Mr. Frost).
  Under the Safe and Drug Free Schools Program, part of the intent is 
to make sure there are resources there for safety in school and to 
allow school districts to have the funds available to do drug 
prevention programs of many sorts.
  I think that the amendment that is being offered, making it clear 
that school resources officers can, in fact, be paid out of this fund, 
is a good amendment. It helps the bill. It should be supported.
  Mr. FROST. Mr. Chairman, I reserve the balance of my time.
  Ms. DUNN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me just make one remark before we close debate on 
this amendment. It is very important to remember that schools are among 
the safest place for children to be. We discovered that as I served as 
cochair of the working group here in Congress on Youth Violence.
  The perception that schools are unsafe, however, creates a huge 
uneasiness and anxiety among our children that they need not feel, but 
it is up to us and a responsibility of ours and an opportunity of ours 
here in the Congress to do those things that are positive steps towards 
reducing youth violence in schools around the country and towards 
reassuring youngsters that schools are safe places to be.

                              {time}  1415

  Schools provide a tremendous opportunity to interact with our youth 
and positively contribute to their personal development. It is an 
opportunity that we must not miss. I urge my colleagues to support this 
important youth violence prevention amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FROST. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, this amendment demonstrates that Democrats and 
Republicans can work together. We had an excellent youth violence task 
force, made a number of recommendations.
  I can tell my colleagues that I consulted students, teachers, 
administrators throughout my congressional district in Texas. We have a 
program that has been in place in a number of our school districts, in 
Grand Prairie, Arlington, and other parts of the areas that I 
represent. This program works. This is a program that must be 
adequately funded.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from Washington (Ms. Dunn).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.
  Ms. DUNN. Mr. Chairman, I demand a recorded vote, and pending that, I 
make the point of order that a quorum is not present.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentlewoman from Washington (Ms. Dunn) 
will be postponed.
  The point of no quorum is considered withdrawn.
  It is now in order to consider amendment No. 6 printed in House 
Report 107-89.


                Amendment No. 6 Offered by Mr. Hoekstra

  Mr. HOEKSTRA. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Mr. Hoekstra:
       In section 1111(b)(4) of the Elementary and Secondary 
     Education Act of 1965 as amended by section 104 of the bill--
       (1) strike subparagraph (E) and insert the following:
       ``(E) measure the proficiency of students in the academic 
     subjects in which a State has adopted challenging academic 
     content and student performance standards and be administered 
     at some time during--
       ``(i) grades 3 through 5;
       ``(ii) grades 6 through 9; and
       ``(iii) grades 10 through 12;''; and
       (2) strike subparagraph (G).

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
Michigan (Mr. Hoekstra) and a Member opposed will each control 15 
minutes.
  Mr. BOEHNER. Mr. Chairman, I rise in opposition to the amendment, and 
I ask unanimous consent that my time be split between the gentleman 
from California (Mr. George Miller) and myself, that we will each 
control 7\1/2\ minutes.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Ohio?
  There was no objection.

[[Page 8985]]

  The CHAIRMAN. The Chair recognizes the gentleman from Michigan (Mr. 
Hoekstra).
  Mr. HOEKSTRA. Mr. Chairman, I yield myself 1\1/2\ minutes.
  Mr. Chairman, accountability is one of the keys to improving our 
Nation's education system. There is no doubt about that. Accountability 
is so important that the President has made it one of the three 
cornerstones of his education reform package along with flexibility and 
parental empowerment.
  This is not a new issue. In 1994, Congress passed the Improving 
America's School Act. In that bill, testing was required to be 
implemented by the year 2001. Our students would be tested once in 
grades 3 through 5, once in grades 6 through 9, and once again in 
grades 10 through 12. The deadline was 2001. But so far, only 25 of the 
50 States have met that mandate.
  Here we are before we have any results from that mandate, we are 
going back to our local schools, and we are going back to the States 
and saying, oh, by the way, we were not serious about the mandate that 
is going into effect for this school year. We are going to give a new 
mandate that significantly changes the Federal accountability standards 
that one must meet. Forget about the work that one has completed over 
the last 7 years. Forget about the money that one has invested. Here is 
a new process and a new system and a new set of requirements that one 
needs to meet.
  What my amendment does is let us give the mandate for 2001, let us 
give it a little bit of an opportunity to see exactly what the results 
and what the impact is.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from New Jersey (Mr. Andrews).
  Mr. ANDREWS. Mr. Chairman, I rise in opposition to the amendment. It 
is very important to understand what the bill does not provide in the 
area of testing. First of all, it does not provide for a national test. 
It provides for States to have the standards and the flexibility to 
determine in their judgment the best way to evaluate their students.
  Second of all, the bill does not provide for punitive results of poor 
performance on the test. Instead, the test is diagnostic in nature as 
designed by the States. It is designed to identify those schools and 
those children that have significant learning needs and difficulties 
and to empower educators with the tools and strategies necessary to 
address those deficiencies.
  I think the greatest risk of passing this amendment is it means it 
will never get to the day that so many people rhetorically agree that 
we need to get to. Federal investment in education must produce 
results. People agree with that. One cannot measure results unless one 
tests and evaluates, and most people agree with that. But they say not 
this test, not this time, and not this way.
  I fear that we will never get to the test, we will never get to the 
time, we will never get to the standard that people can agree is 
necessary to meet the rhetorical principle that we have set forth.
  This bill provides for state-guided testing. It provides for 
remediation, not punishment, for those who do not measure up. The bill 
deserves the support of both parties here in the House. I urge my 
colleagues to reject and defeat this amendment.
  Mr. HOEKSTRA. Mr. Chairman, I yield 1 minute to the gentleman from 
Massachusetts (Mr. Frank) in recognition of the bipartisan nature of 
this amendment.
  Mr. FRANK. Mr. Chairman, the gentleman from New Jersey (Mr. Andrews), 
the preceding speaker, kept stressing the virtue of letting the States 
make a decision. He stressed that this leaves it up to the States. 
Well, why not follow the logic of this? I agree, the States are the 
ones who should be making these decisions. Why then mandate as a part 
of a Federal bill as a condition of getting the Federal money that the 
States have to test the students in five grades every year?
  I want to be clear this is not an argument about testing. This is an 
argument about the Federal Government deciding today that every school 
has to test students. Now, yes, the States get some flexibility, but 
within a very rigid mandate.
  There was a problem about whether or not we are ready to do this 
testing. I read in the New York Times that some of the testing entities 
pay $9 an hour for people to grade essay tests. I want to say to my 
colleagues, pass a law now whereby the Federal Government mandates that 
every State get into the testing business, ready or not, and the 
results will be so unpleasant that pretty soon my colleagues will be 
answering a lot of letters on it. They better pay the people on their 
staff who answer those angry letters more than $9 an hour, because they 
are going to be difficult letters to answer.
  Mr. BOEHNER. Mr. Chairman, I yield 1 minute to the gentleman from San 
Diego, California (Mr. Cunningham).
  Mr. CUNNINGHAM. Mr. Chairman, I rise in opposition to the amendment. 
The gentleman from Michigan (Mr. Hoekstra) has done some marvelous 
things, I think, in education. He has identified multiple programs, and 
he has got my utmost respect. But I think the gentleman is wrong on 
this particular issue.
  I have talked to the superintendents in San Diego. They are opposed 
to the amendment. They want the flexibility to test. I spoke to a group 
in New York that were against it; and basically, they were from an 
affluent school, and they wanted their students to be able to go on to 
Harvard and Yale and those things; and they thought that a higher level 
of testing would limit them from doing that.
  We want to be able to judge. We put billions of dollars, which my 
colleague has fought against, in education without accountability. This 
is one way that we feel that, if we put the money in, we hold the 
schools and raise the bar, because if one lowers the bar, that is going 
to lower the standards. The only real way to assess that is with this 
quality standards.
  I laud the gentleman from Michigan (Mr. Hoekstra) for his effort in 
education, but I do oppose the amendment.
  Mr. HOEKSTRA. Mr. Chairman, just in response, my superintendents back 
home like controlling their own schools. They are not looking for 
another Federal mandate.
  Mr. Chairman, I yield 2 minutes to the gentleman from Colorado (Mr. 
Schaffer).
  Mr. SCHAFFER. Mr. Chairman, I thank the gentleman from Michigan for 
yielding me this time.
  Mr. Chairman, I, too, am one who finds myself in rare disagreement 
with the previous speaker; and his argument speaks actually in favor of 
the amendment, I would think.
  Flexibility is the desire here. The amendment certainly achieves more 
of it rather than less of it in relation to the rest of the bill. 
Flexibility, Mr. Chairman, should be something upon which we all insist 
here in this Chamber. Flexibility was the cornerstone of the 
President's plan when he first introduced it, the Leave No Child Behind 
proposal that we have all seen, that we have all worked off of. The 
document looks just like this. It is a brilliant agenda for America's 
schools. But this plan has been left behind by the Committee on 
Education and the Workforce and in the bill that is before us.
  What I mean by that is the flexibility component, what is called 
Straight A's, or as the President referred to it, Charter States, was 
taken out of this bill. The flexibility provisions are essentially 
gone. There was another provision dealing with choice, the portability 
of title I funds, that the President mentions in his plan and that 
Secretary Paige forcefully advocated before the committee. But that 
provision was taken out in the first amendment that the committee 
considered.
  So at this point, the question becomes, how can we as a legislative 
body here on the floor reinstitute as much flexibility for States as we 
possibly can? This amendment is one answer in that regard.
  If one holds up all 1,000 pages of the bill that we are considering 
today, one will find that the word ``must'' appears

[[Page 8986]]

11 times; the word ``ensure'' appears 150 times; the word ``require'' 
appears 477 times; the word ``shall'' appears a whopping 1,537 times; 
and ``shall not'' is in this bill 123 times.
  Now, I would submit that, by the time the day is over, we should be 
able to come together on a flexibility amendment of some sort. The 
gentleman from Michigan (Mr. Hoekstra) has proposed one when it comes 
to the testing provisions.
  I would ask my colleagues to consider this new testing requirement 
that is in the bill within the following context. For the first time, 
this Congress, through this legislation, will attach Federal cash to 
test results.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2\1/4\ minutes 
to the gentleman from Indiana (Mr. Roemer), a member of the committee.
  Mr. ROEMER. Mr. Chairman, I thank the gentleman from California for 
yielding me this time.
  Mr. Chairman, it seems to me that so many Members here arguing to rip 
out the testing proposal in this bill are for the status quo. They are 
happy with the fact that 60 percent of kids in the inner city cannot 
read at a fourth grade level, six out of 10. So we are going to 
continue the same policies that we have had up to this date. That is 
unacceptable. We have got to change the status quo.
  I was in some schools up in New York visiting. Eighty percent of some 
of those children are having trouble passing tests. Is that acceptable? 
We must change the status quo with new ideas and with resources to 
remediate and help these children.
  Now, all of us have problems and reservations with tests. A test done 
right is not a high-stake test. It is a diagnostic tool combined with a 
host of other things to determine whether or not that child goes to the 
next grade or graduates. It is not the sole indicator.
  The other point I want to clear up, in this legislation, Indiana will 
continue to say and pick and determine what kind of tests they develop. 
Whether we have the ISTEP+, or the Iowa, or the Stanford, or the 
TerraNova, or a combination, that is our decision under this bill. We 
decide that.
  But the deal in this bill is there is accountability and there is 
resources. We are going to help those children. We are going to help 
those children that cannot read at fourth grade reading level before 
they fail. We are going to get tutoring for them, and we are going to 
get after-school programs for them and summer school programs.
  This committee is going to work directly with the appropriators to 
see that these authorization levels are put into law.
  I would end on this note: we have many Republicans standing up saying 
that this bill is not the President's bill. If this amendment passes, 
this amendment guts the heart and the soul from the President's bill, 
and I understand he will veto this bill if this amendment passes. So 
defeat this amendment. Keep this bipartisan proposal going forward to 
conference.
  Mr. BOEHNER. Mr. Chairman, I yield such time as she may consume to 
the gentlewoman from New Jersey (Mrs. Roukema).
  Mrs. ROUKEMA. Mr. Chairman, I want to associate my remarks with the 
remarks from the gentleman from Indiana (Mr. Roemer), my colleague on 
the committee, and rise in strong opposition to this amendment.
  Testing is the centerpiece of the President's education plan! Why in 
the world would we want to eliminate testing?
  Let me say this again--testing is the essential component of holding 
schools accountable. In its current form this bill provides 
unprecedented flexibility to our school districts. But as we provide 
that flexibility, it is important that federal education programs 
produce real, accountable results. And the best way to hold schools 
accountable is through testing. Testing helps us gauge whether children 
are truly learning and whether our federal education programs are 
effective.
  For far too long, many federal education programs have failed to 
produce increases in student achievement. It is imperative that the 
programs we reauthorize in this bill contain mechanisms that make it 
possible for the American people to evaluate whether they work.
  The testing provisions in this bill provides accountability and 
demands results through high standards and assessments. And it provides 
appropriate responses to address failure. States will be required to 
test students in grades 3-8.
  The states will develop their own standards and assessments under 
this bill. We are not dictating a national test. But we are saying that 
if you are going to accept federal education funding, then you are 
going to be held accountable for results.
  State test results are confirmed through the National Assessment of 
Educational Progress (NAEP) or similar test, which would be required 
annually for grades 4 and 8 in reading and math. If a state improves on 
NAEP and their state assessments each year they will be eligible for 
rewards, and if it does not, there will be sanctions.
  We reward states and schools that improve. Those that do not improve 
will undergo corrective actions. Striking a balance between state and 
federal responsibility is the right approach to accountability.
  This bill takes a meaningful step towards leaving no child behind. 
And this amendment guts the major accountability provision in the bill. 
As such, I urge all of my colleagues to oppose the amendment.
  Mr. BOEHNER. Mr. Chairman, I yield 2 minutes to the gentleman from 
Delaware (Mr. Castle), the subcommittee chairman that is responsible 
for this bill.
  Mr. CASTLE. Mr. Chairman, I thank the gentleman for yielding me this 
time. I thank the gentleman from Ohio (Mr. Boehner), I thank the 
gentleman from California (Mr. George Miller), and I thank the 
President of the United States because they have come up with a plan 
which might finally change education and improve education 
opportunities for kids in our country.
  One of the sponsors of this bill, the gentleman from Michigan (Mr. 
Hoekstra), has said earlier the rule will allow us to vote on 
amendments which will restore the President's plan.

                              {time}  1430

  This will gut the President's plan. This amendment would absolutely 
gut, go to the very heart of what the President is trying to do.
  For 35 years, we in the Federal Government have tried, with a lot of 
money, to help kids, particularly lower-income kids, because that is 
the obligation which we have assumed, to be able to be educated better. 
It is fairly flat-lined, as far as that improvement is concerned, and 
we have to do something different in order to do this. To do that, we 
do need to have the standards and the assessments, and part of the 
assessments is the testing. And that is something we absolutely need to 
go forward with.
  Annual testing will produce more accurate and timely disaggregated 
data to determine not just overall progress, but progress in narrowing 
the stubbornly persistent achievement gap between all students. Tests 
do put pressure on children to perform. We all understand that. We went 
through it. But I also believe it is important to identify academic 
weaknesses early. This allows teachers and parents to intervene in a 
timely manner. That has not happened before. After all, we are not 
focusing on input, such as books or paperwork, but the result, real 
student learning, and that is what education is all about.
  Without annual tests, student achievement data will not be comparable 
from year to year, the value added by a school or teacher will be hard 
to calculate, and the State-wide reporting of results, including 
results by race and income, will be unworkable. The entire system of 
accountability will be undermined. If we are serious about education 
reform, we need to know the unvarnished facts about where our children 
stand against standards, and we need to help diagnose problems and 
design remedies to improve student achievement.
  While nothing will give us an ironclad guarantee for success, one 
thing is certain, more of the same will guarantee more of the same 
failure. And that is exactly what the Hoekstra-Frank amendment gives 
us. We all should oppose this amendment.
  Mr. HOEKSTRA. Mr. Chairman, I yield 1\1/2\ minutes to my colleague, 
the gentleman from Virginia (Mr. Scott).
  Mr. SCOTT. Mr. Chairman, I rise in support of the amendment. When we

[[Page 8987]]

discuss the issue of testing, I think we have to remember the farmer's 
adage, ``You do not fatten the pig by weighing the pig,'' meaning you 
do not improve education merely by giving tests. So I support this 
amendment for the following reasons:
  First, there is already, in current law, provision for adequate 
testing. Only 11 States are in compliance with this requirement, and 
States spent over $400 million last year alone trying to come into 
compliance with the current law involving testing.
  Second, the new test requirements in H.R. 1 will cost substantially 
more than what we are providing for in the bill. A recent USA Today 
article reported, and I quote, ``fulfilling President Bush's proposal 
to test every student in grades 3 through 8 could cost States as much 
as $7 billion over the next 7 years, the National Association of School 
Boards of Education says.''
  Mr. Chairman, finally, we need to address the potential inappropriate 
use of the tests: By using them to make high-stake decisions to punish 
students. Two recent New York Times articles documented that States and 
localities are increasingly using tests for purposes for which they are 
not designed and making high-stake decisions to punish students based 
on one single test. Tests will be given, but there is nothing in H.R. 1 
to prohibit inappropriate use of those tests.
  For those reasons, Mr. Chairman, I urge my colleagues to support the 
amendment.
  Mr. HOEKSTRA. Mr. Chairman, I yield 1 minute to the gentleman from 
Arizona (Mr. Shadegg).
  Mr. SHADEGG. Mr. Chairman, I rise in strong support of the Hoekstra-
Frank amendment. I rise in support of it for at least three major 
reasons:
  Number one, we already test too much. Federal law mandates three 
tests already, and this bill doubles that requirement. I hope my 
colleagues understand that. The Hoekstra-Frank amendment simply says we 
will continue with the tests that are currently mandated but do not 
double the number of tests that are required.
  Now, how do I come to that conclusion? Well, my wife is a teacher, 
both of my sisters are teachers, and my niece is a teacher, and I have 
talked to them about this bill extensively, over and over again, and 
not a single one of them says that either they or their peers believe 
that teaching will be benefitted by more testing.
  As the gentleman from Virginia just pointed out, you do not fatten 
the pig by weighing it; you do not improve education by mandating more 
tests. Federal law mandates three tests already, and yet only 11 out of 
50 States comply with this current demand.
  The reality is more mandated Federal tests will take up more time. 
The courts have already reported on this. There is too much testing at 
this point. The President is right, we should have accountability; he 
was wrong, we should mandate a doubling of the number of tests.
  Mr. BOEHNER. Mr. Chairman, I yield 2 minutes to the gentleman from 
California (Mr. McKeon), a subcommittee chairman on the Committee on 
Education and the Workforce.
  Mr. McKEON. Mr. Chairman, I thank the gentleman for yielding me this 
time, and I rise in strong opposition to this amendment offered by the 
gentleman from Michigan (Mr. Hoekstra) and the gentleman from 
Massachusetts (Mr. Frank) to remove the annual testing provisions in 
H.R. 1.
  The gentleman who spoke just before me is right, we do test. We test 
in the third grade and we test in the eighth grade. But what happens in 
those years in between is why the President's proposal for annual 
testing is truly the centerpiece of his education reform plan. His 
reasoning is very simple. If you do not test, you cannot measure.
  I was an animal husbandry student in college, and I learned that they 
did weigh hogs before they took them to market. You have to test to 
find out how things are doing, and you had to weigh the hogs to find 
out if what you were feeding them was appropriate.
  With annual testing and appropriate reports to parents and teachers, 
problems can be found before it is too late to fix them. In other 
words, without assessments, schools cannot be held accountable for 
improving student performance. And without assessment information, 
parents are powerless to choose a better performing school. With 
assessments, there will be improvements in instruction and in learning 
by focusing on outputs; year-to-year progress, and student achievement, 
instead of inputs, such as dollars, teachers or textbooks.
  In closing, I urge all of my colleagues to oppose this amendment, and 
instead support our President, and more importantly, the children of 
this country.
  Mr. HOEKSTRA. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Minnesota (Ms. McCollum).
  Ms. McCOLLUM. Mr. Chairman, I thank the gentleman for yielding me 
this time.
  As a mother, I held my children's schools accountable; as a former 
teacher, I was held accountable; as a Member of Congress, Minnesotans 
hold me accountable. I do support fair, accurate, and reasonable 
testing, but I oppose the testing in H.R. 1.
  This provision is an unfunded mandate. The funding authorized will 
not even begin to cover the cost of current testing. Last year, we had 
problems with testing in Minnesota. 336 high school seniors were denied 
diplomas on graduation day because of a vendor error. Minnesota expects 
a testing program that is accountable and is funded, with control at 
the local level.
  I oppose any new unfunded mandated testing, and I urge my colleagues 
to support this amendment. We can do better for our schools and for our 
children.


  Mr. HOEKSTRA. Mr. Chairman, how much time is left?
  The CHAIRMAN. The gentleman from Michigan (Mr. Hoekstra) has 7 
minutes remaining, the gentleman from Ohio (Mr. Boehner) has 2\1/2\ 
minutes remaining, and the gentleman from California (Mr. George 
Miller) has 3\1/4\ minutes remaining.
  Mr. HOEKSTRA. Mr. Chairman, I yield 2 minutes to the gentleman from 
Maryland (Mr. Gilchrest).
  Mr. GILCHREST. Mr. Chairman, I thank the gentleman for yielding me 
this time, and I urge my colleagues to vote for the Hoekstra-Frank 
amendment.
  The portion of the bill that we are debating now represents, in my 
judgment, the quintessential example of the principle of unintended 
consequences. Teaching to the test has become the norm in many States. 
It definitely has become the norm in the State of Maryland.
  In a system where high stakes and dollars are involved, this is 
almost always the inevitable consequence. We do not want to build on 
the current system because the current system of testing our children 
is failing. H.R. 1 would buttress a system that is failing, further 
erode creativity and diversity in the classroom, it would literally 
tenure incompetence, especially in school administrators, eliminate a 
professional ethic in the educational field, and enhance vindictive 
behavior with people who are working to make their schools look good at 
any cost.
  We all know tests and assessments are necessary to find out what the 
progress is. But for the Federal Government to get into creating a 
testing criteria for tests, and then obliquely refer to it as 
accountability, is wrong. Teachers receive degrees. They are licensed 
to teach in a State. They are professionals. They represent the broad 
diversity of the country. Now we summarily assume that the aristocracy 
of Washington and the State capitals are smarter and wiser.
  The Federal Government endorsing more tests will not make schools 
better. They will make them less knowledge-based and turn teachers into 
technicians. By encroaching on the ability of individual teachers to be 
unique, we show aversion for the independent thinker, and self-reliance 
drifts away. Nothing is at last sacred but the integrity of our own 
mind.
  I encourage my colleagues to vote for the amendment that simply takes 
us back to current law.
  Mr. BOEHNER. Mr. Chairman, I yield 1 minute to the gentleman from 
Georgia (Mr. Isakson), a member of the committee.

[[Page 8988]]


  Mr. ISAKSON. Mr. Chairman, I thank the gentleman from Ohio for 
yielding me this time, and I rise for three reasons:
  As a former board chairman for the State of Georgia, who implemented 
mandatory testing for diagnosis purposes, and saw the ability to raise 
expectations of all children, I oppose this amendment and support the 
President's plan.
  As one who believes that if we do the same thing over and over and 
over again, it is unrealistic to expect any other result, I show my 
colleagues this graph. This is $120 billion in 35 years doing the same 
thing in title I over and over again. And average reading scores of 
title I students remain today where they were years ago, at the lowest 
35th percentile.
  Do not be fooled by those who oppose this amendment. The heart of the 
President's proposal is to hold us accountable for the investment of 
our taxpayers' dollars and the achievement of our children. If this 
amendment fails, the President's proposal will have failed and we will 
continue to do what we have always done and have less than satisfactory 
results. I encourage my colleagues to oppose the amendment.
  Mr. HOEKSTRA. Mr. Chairman, I yield 2 minutes to the gentleman from 
Florida (Mr. Davis).
  Mr. DAVIS of Florida. Mr. Chairman, for the last several months I 
have gotten an earful from parents, students, and teachers in Florida 
who are concerned that standardized educational testing has run amuck 
there. Today, on behalf of hundreds of thousands of school children in 
Florida, I rise in support of this amendment.
  I am not opposed to testing students every year, but I believe the 
principal purpose of testing should be diagnostic. Testing should 
determine where my third grader is at the beginning of the year and 
what he needs to do to get to where he needs to be at the end of the 
school year. Testing should tell my child, my wife and I, and the 
teacher, what my child's needs are and how to help meet those needs.
  I also support accountability. I want to know how my child's schools 
are doing in relation to other schools. In the Florida legislature, I 
chaired a subcommittee that wrote our accountability law. But 
unfortunately, through the FCAT standardized test in Florida, the 
governor and the legislature have turned that law on its head and are 
using testing as a public relations tool.
  Florida already tests reading and math in the third through the tenth 
grades. However, teachers, principals, and students receive no 
information that helps them identify the needs of children and what 
they need to help those children learn. Teachers and students in 
Florida are not stupid. They have figured out this testing system does 
nothing to help teachers teach and children learn. They have figured 
out this is testing designed by the politicians for the politicians. 
Teachers set aside their lesson plans and teach the test to help their 
schools earn the financial reward and to avoid the stigma of being 
graded as a failing school.
  Last week, Florida reached a new inevitable low in testing run amuck. 
Two Hernando County middle schools bribed their students by offering up 
to $150 each for a high standardized test score. As one of the 
principals pointed out, the State is using this same form of bribery 
with the schools that the schools are now using with the children. One 
of the student recipients of this financial reward said, it may be a 
small bribe, but at least it is something for going through the test.

                              {time}  1445

  I disagree completely with Florida's Commissioner of Education who 
says that he does not have a problem with this form of bribery. I think 
it is wrong, and needs to be stopped now. The standardized testing 
situation in Florida is a growing disgrace.
  Mr. Chairman, let me close by saying I have repeated these concerns 
to the Secretary of Education. This bill should be written to clearly 
state the principal purpose of testing should be diagnostic. Until it 
does, I urge adoption of the amendment.
  Mr. HOEKSTRA. Mr. Chairman, I yield 30 seconds to the gentlewoman 
from Florida (Mrs. Thurman).
  Mrs. THURMAN. Mr. Chairman, I stand in support of this amendment. I 
am a former middle-school math teacher. I started teaching back in the 
early 1970s. In 1978, the State of Florida put in an assessment, a 
diagnostic test that said we are going to test children at 3rd, 5th, 
8th and 10th grade. We are not doing it to test how we are doing 
nationally, we are not doing it to test how we are doing from school to 
school. We are trying to find out what the individual student knows or 
does not know. We started it in October. We did it so that we could 
look at the student and find out where his or her weaknesses were, and 
to allow those to be taken care of through remediation. Nothing in this 
bill does that.
  Mr. HOEKSTRA. Mr. Chairman, I yield 30 seconds to the gentleman from 
Massachusetts (Mr. Tierney).
  Mr. TIERNEY. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  Mr. Chairman, I stand in favor of this particular amendment. In 
Massachusetts we have plenty of testing going on already. This idea by 
the President simply raises the quantity of testing, while doing 
nothing about the quality. Beyond that, we have the issue of bringing 
the testing procedure up to scale. The New York Times articles on 
Sunday and Monday indicate that this industry is not ready to produce 
the kind of quality tests and have them designed and administered and 
corrected in an appropriate way. We need to go back to the drawing 
board and make sure that this is done not as a mandate that will not be 
funded, but as a way to be actually used as a diagnostic tool for our 
children.
  Mr. HOEKSTRA. Mr. Chairman, I yield 1 minute to the gentleman from 
Indiana (Mr. Souder).
  Mr. SOUDER. Mr. Chairman, for six years this Congress has insisted 
and held firm that there should be no national test. We have heard it 
said that the heart of the President's proposal was to find a national 
test. I do not believe this is true. The heart of the President's 
proposal is this: Find out what schools were performing, then provide 
assistance for two to three years to help them improve. Then if they 
did not improve, give the parents and the children the flexibility to 
find a school that does improve.
  Mr. Chairman, we have taken out the final thing, which was the heart 
of the proposal, to give the parents flexibility. Now we say if your 
school is failing, you are trapped. Furthermore, there is nothing to 
say that the State tests and the local tests are not sufficient to know 
whether the schools are accountable.
  This amendment says we trust the local teachers, principals, and 
school boards. We trust our governors. We do not need a national test 
coming out of Washington, which is one national standard that 
potentially will reach into every school, into private schools and home 
schools.
  Mr. Chairman, we heard it is only reading and math. But the truth is 
it can go anywhere. It can be anything because once Washington gets 
control of this test, we do not know where it is going to go. We will 
no longer have the local control that we currently have.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself such 
time as I may consume.
  Mr. Chairman, what this legislation says is that we shall annually 
measure the proficiency of students in the academic subjects in which 
States have adopted challenging academic content and student 
performance and standards.
  We shall try and make a determination of how the students are doing 
in meeting that academic standard and content. We are kind of down to 
the point where we can make a choice. We can do business as usual, hold 
onto the status quo and we can just continue to see a system that has 
passed children from grade to grade, not knowing whether or not those 
children can read, not knowing whether they can compute, not knowing 
whether those children can reason or whether they have mastered the 
language arts. Social promotion.

[[Page 8989]]

  Mr. Chairman, the gentleman from Nebraska (Mr. Osborne), a former 
coach, talked about it in his remarks. He found as he looked at his new 
recruits, even though they had a diploma and grades, they could not 
master the work in college.
  We know it from our own school districts. We know it from parents 
that have talked to us. I teach in a continuation high school, and I 
see children which have been passed through from grade to grade. We 
want to stop that. We owe it to those children and parents to stop 
that. We owe it to the taxpayers of this Nation to stop that.
  As the gentleman from Georgia (Mr. Isakson) said, $120 billion later, 
we have not gotten the results that we believe that these children and 
their families are entitled to, and we have not gotten the results that 
the taxpayers are entitled to, so we have asked for a system of 
accountability. We have asked for a system of accountability to 
determine how our children are doing so then local districts will have 
the ability to target the resources, target the resources of summer 
school, target the resources of after-school tutoring and mentoring, to 
target the resources of Saturday school so that these children will be 
able to get the help that they need.
  Mr. Chairman, one of my colleagues said we do not fatten a pig by 
weighing them. Yes, one does. One wants to make a determination whether 
the pig is being fed the right thing, because pigs are sold by the 
pound. If the pig is sick, one wants to know that. That is why that 
assessment is made.
  People say we test in 8th and 10th grade. In our poor school 
districts, if a student falls behind in second or third grade, in all 
likelihood they will drown before they can be helped because the 
resources are not there.
  Mr. Chairman, we want to make an assessment of how these children are 
doing. Are they performing at age-appropriate levels and grade-
appropriate levels, are they mastering the subject matter; and we want 
to provide the resources to those schools to improve those schools, to 
keep them from failing, to turn them around. But we need to have that 
assessment.
  This is the heart of accountability. One cannot just say they are for 
accountability. Someday my colleagues have to step up to the plate and 
make that determination.
  Let me say in closing, Motorola requires a high school education 
before an individual can make application to their corporation. And I 
think they turn away about 50 percent of their applicants because they 
cannot read or perform at 12th grade levels. We owe better to our 
students; and we certainly owe better to the poorest of our students.
  Mr. HOEKSTRA. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, I want to clarify some of the perceptions of what has 
been said today. But before I do that, I want to thank my colleagues on 
the other side of the aisle, in particular the gentleman from 
Massachusetts (Mr. Frank), for joining me in bringing this amendment 
forward.
  Mr. Chairman, the Federal Government put in place a mandate to local 
schools and States to implement testing, to be implemented for 2001. 
That is this year. We have that mandate in place, and now as local 
school districts are implementing that mandate, we are saying we are 
not really serious, the $400 million that has been spent, we have moved 
the bar and changed the playing field.
  The role of the Federal Government should be to audit the results. We 
should not mandate on a yearly basis what will be going on in our local 
school districts.
  Our local school districts have had enough of unfunded Federal 
mandates: IDEA, unfunded. Testing, underfunded. Testing is not yet 
ready for prime time.
  Mr. Chairman, I encourage my colleagues to support this amendment and 
stick with the agreement in the mandate that we put in place for 2001. 
Let us not pull the rug out from under that mandate and create a new 
mandate.
  Mr. BOEHNER. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, Members know we have worked hand in glove across the 
aisle since January to produce the bill that we have on the floor 
before us today. This is a very good bill. But we have all known at the 
essence of it, the core of this bill is to require real accountability 
from every school in America that gets Federal dollars.
  We have spent $120 billion over the last 35 years, and we have not 
gotten results. We have spent $80 billion over the last 10 years in the 
heart of the school reform movement and have gotten no results. How 
many more hundreds of billions of dollars are we going to spend here in 
Washington without asking our schools to give us real results.
  What do we say to the lost generation of Americans that we have over 
the last 25 years because we passed them through grade after grade, 
year after year, and never asked whether they could read or write? Is 
that fair? No.
  And to my African American colleagues in this Chamber and to my 
Hispanic colleagues in this Chamber, and to my colleagues in this 
Chamber who represent low-income communities, they should be demanding 
more than any of us that we have testing year by year because it is the 
students in those schools who get short-changed year after year because 
no one knows what is really happening.
  Mr. Chairman, I would say to all of my colleagues, it is time to have 
accountability. It is time to stand up and show the courage that it 
takes to bring real results to our schools and to take our heads out of 
the sand and quit ignoring incompetence and quit ignoring the fact that 
some of our kids, and too many of them, are not learning.
  Mr. DAVIS of Florida. Mr. Chairman, for the last several months, I 
have been getting an earful from parents, teachers and students who are 
concerned that standardized educational testing in Florida has run 
amuck. Today, on behalf of hundreds of thousands of Florida public 
school students subjected to these tests, I rise in support of the 
Hoekstra/Frank amendment.
  I am not opposed to testing our students every year, but I believe 
the principle purpose of testing should be diagnostic. Testing should 
determine where my child is at the beginning of the school year and 
what he needs to work on to get where he should be at the end of that 
school year. Testing should tell my child, his teacher, my wife and me 
what we need to know to help him improve as a student.
  I also support accountability. I want to know how my child's school 
is doing in comparison to other schools. In fact, while I served in the 
Florida House of Representatives, I chaired the Subcommittee that wrote 
Florida's Accountability law. Unfortunately, the Governor has turned 
that initial law on its head and is now using testing as a public 
relations tool rather than a true measure of students' academic 
abilities.
  As many of you know, Florida is already testing students in grades 
three through eight in reading and math. The Florida Comprehensive 
Assessment Test, FCAT, also tests writing in grades four, eight and 
ten. Unfortunately, as I stated above, the purpose of the FCAT is to 
grade our schools and implement high stakes penalties or rewards based 
on their scores, NOT to see where our students need help to boost their 
performance.
  That's right. Under the FCAT, teachers, principals, parents and 
students get no information from the test identifying the needs of 
individual students and how to help them improve.
  Teachers and students in Florida aren't stupid. They have figured out 
this testing system does not help teachers teach or students learn. It 
is, instead, testing by the politicians, for the politicians with an 
end result of pitting school against school.
  In response, teachers set aside their lesson plans and teach to the 
test to help their school earn a high test score in hopes of earning 
financial rewards and avoiding the stigma of being labeled a failing 
school.
  As a result, last week in Florida, we reached the inevitable new low 
in testing run amuck. In Hernando County, Florida, two middle schools 
are paying kids for good scores on the FCAT. That's right. These 
schools are bribing their students with up to $150 for high scores on 
the reading, math or writing portions of the FCAT. Again, the FCAT is 
not designed to help students. Because the test does not motivate 
students to learn, these schools feel they have no alternative but to 
use financial rewards to encourage students to do well on the FCATs. 
The Principal of one of these middle schools pointed out that the State 
is using this

[[Page 8990]]

same type of bribe to help the schools perform better on the tests, and 
the school has merely passed that bribe on to its students. As this 
Principal asked the Governor, ``What's the difference?''
  One of the student recipients of a monetary reward said the 
following, ``I thought it was pretty good. It's a little bribe. That 
way, it's not just a pain-in-the-butt test, you actually have 
something.''
  The reaction of Florida's Commissioner of Education to the bribe was, 
``. . . I don't have a problem with it. . . . It's legal, it's not 
unethical. . . .''
  Well, I disagree completely with the Commissioner. The last time I 
checked, bribery was illegal. This is wrong, and it should be halted 
now.
  The standardized testing situation in Florida is a growing disgrace. 
If we allow it to continue and spread to other states, it will be a 
national disgrace for which this Congress will be responsible. Worse 
yet, by allowing standardized testing to run amuck, we will only 
aggravate the increasing teacher shortage that is currently plaguing 
our schools. Over the next decade our nation's schools will lose more 
than 65 percent of their teaching faculty. This percentage can only 
increase if we do not address these testing problems.
  I have repeatedly expressed my concerns that the principal purpose of 
testing should be diagnostic to the Secretary of Education and the 
President's Chief Advisor on his education proposal. Both of them told 
me that they agreed with me.
  This bill must be rewritten to clearly state that the principal 
purpose of standardized testing should be diagnostic--to help teachers 
teach and children learn. Because this bill is silent on this point, I 
urge my colleagues to support the Hoekstra/Frank Amendment.
  Mr. BAIRD. Mr. Chairman, I rise today to express a number of serious 
reservations about the testing provisions of HR 1.
  I commend the committee chair, the ranking member, and all those who 
have worked in a truly bipartisan basis to bring this legislation to 
the floor today, but I am afraid that some provisions of the bill as 
written have the potential to harm, rather than improve, our 
educational system.
  The problem to which I am referring is the mandate for annual 
testing. I know that many of those who support annual testing do so 
because they believe we must set high standards in order to motivate 
our students, faculty, and administrators to achieve. I strongly agree 
with that goal, but I also disagree with how this legislation seeks to 
accomplish it.
  As a licensed clinical psychologist before coming to Congress, I may 
bring a unique perspective to this debate. In addition to 
administering, scoring and interpreting hundreds of tests in my own 
professional career, I also taught graduate level courses dealing with 
the design, uses, and potential abuses of tests and test results. So I 
know something about the matter of testing.
  Based on that experience, and a careful reading of this legislation, 
let me raise the following concerns:
  First, this legislation represents an enormous unfunded mandate with 
absolutely no information provided regarding the cost of implementation 
or the benefits as compared to other options. I find it surprising that 
those who so often complain about unfunded federal mandates and 
bureaucracy elsewhere in our government so enthusiastically support 
legislation that even by a conservative estimate will require hundreds 
of millions of dollars of expenditures every year. It is true that this 
legislation authorizes money to help states design their testing, but 
the legislation before us includes nothing to fund the actual annual 
testing that it requires.
  Since there is no money in this bill or in the budget to fund the 
testing process itself, we must ask ourselves how those costs will be 
borne by our states and local school districts. How many teachers or 
teachers aides could be paid for with the money to be spent on testing? 
What level of school repair or numbers of textbooks will go unrenewed 
because of the money spent on testing? How might those alternative 
expenditures benefit students more than the money to be spent on 
testing? And, finally, what is the opportunity cost to our system as 
teachers and students spend time and resources preparing for the tests 
rather than engaging in other valuable educational activities?
  Secondly, while the legislation purports to require standards, it is 
clear that there really is no consistent or common standard required. 
In fact, by leaving the proposed achievement standards up to the 
states, albeit with some level of federal review, it is quite possible 
that schools in some states will meet their internal standards while 
others will fail, but the standards that are met may be entirely 
different from state to state. This leaves open the possibility that 
federal dollars will be restricted from some schools where there is 
actually higher achievement but given to others where achievement is 
lower but the state standards are also lower. As I read this 
legislation, there will be every incentive for schools to set low 
standards on their tests in order to meet the federal requirements and 
not lose funding. Isn't this precisely what the authors of the 
legislation hoped to avoid? And isn't the alternative--the micro-
management of state testing by the federal government--equally 
undesirable?
  Third, an additional problem with the standards referred to in the 
bill is that it seems to be legislating the so-called Lake Wobegon 
effect, in which all the students are above average. The legislation 
requires all students to meet or exceed the ``State's proficient level 
of academic performance.'' But the legislation apparently fails to 
recognize that proficiency standards can be set in several ways. For 
example, a standard could be a bare minimum level of competency, or it 
could be a level set by the average student of a given grade. If the 
average level of proficiency is taken as the standard, by definition of 
average, not all students can meet that level. Conversely, if 
proficiency is to be set at a relatively high level, which it should be 
if the term ``proficient'' is to mean anything important, then we can 
expect that the natural variations in student skills and development 
will leave many students coming close to, but not reaching full 
proficiency.
  Like it or not, Congress cannot legislate the repeal of the laws of 
statistics, and the normal distribution of abilities will be with us 
regardless of how appealing a law may sound on the surface. This 
fundamental ambiguity alone should be reason enough to withhold the 
testing requirement until we have clear answers to the question of what 
exactly is meant by the requirement of the legislation.
  Fourth, even if the questions addressed above could be answered, the 
logic of using annual testing to evaluate school performance and 
compare districts is severely flawed. In my Congressional district some 
districts have turnover rates higher than 40% per year. In many 
districts there are literally dozens of different non-English languages 
spoken in the homes. Still other districts have not passed funding 
levys in years. How can any comparison between these schools and 
schools with more homogenous or stable populations of students or with 
greater funding resources be meaningful? And how can the yearly 
progress or lack of progress of a school be meaningful if 40% of the 
students turnover every year?
  One of the most important lessons I used to teach my graduate 
students was this--tests, per se, cannot be said to be valid or invalid 
in and of themselves. Rather, validity is a relative term whose meaning 
depends on the usage to be made of the test. The point made here is 
that there will be inherent limitations on the meaning of the scores 
across schools or across years. In other words, tests of individual 
student achievement may be designed to fairly and accurately assess the 
achievements of those individual students and to monitor individual 
student progress, but use of aggregate data to determine overall 
educational efficacy of a school, in the face of the other variables 
that influence aggregate scores, is not a valid use. It would not be 
unlike mixing together the blood samples from many different patients 
to measure average health. The mixing of samples defeats the purpose 
and vitiates the meaning of the findings.
  As many of the students I have taught will attest, I believe with all 
my heart in setting high standards for students and faculty and then 
providing the resources and opportunities to help them succeed. I also 
believe that when standards are not met, there should be consequences.
  But the testing provision in the legislation before us today, however 
positive its intent, proposes the wrong solution to the right problem. 
It will be tremendously costly to local schools to implement, it 
provides no funding for the annual testing itself, it offers a false 
premise as a basis for comparing schools and allocating funding, it 
includes inherent ambiguities in meaning that will produce unintended 
and paradoxical consequences, and it may well impede rather than 
enhance the ability of teachers and schools to help students achieve 
our overall educational goals.
  Mrs. THURMAN. Mr. Chairman, as a math teacher in Dunnellon, Florida 
when the State of Florida mandated the state assessment tests, I 
started the first remediation classes for math at the High School. The 
diagnostic testing that was performed allowed educators to address the 
weaknesses of students before they progress to a higher grade. 
Recently, I was at a wedding where one of the students who was in my 
program came up to me and said that he would not have passed math 
without the remedial work I did with him.

[[Page 8991]]

  Mr. Chairman I share this story with the House because it is critical 
that testing be used as a diagnostic process to help students in areas 
where they are underperforming and not just to collect statistics.
  Mr. Chairman, we hear constantly about the federal government getting 
too heavily involved in state matters. I believe this is a priority we 
should leave to the states. I also wonder why we are using federal 
money to duplicate programs already being performed by the states when 
we should be using the Federal dollars to reduce the class size for our 
children.
  Mr. MORAN of Kansas. Mr. Chairman, I support Representative 
Hoekstra's amendment. The federal government's role in education should 
be to support proven state and local reform efforts rather than create 
additional requirements for our local schools. By mandating new testing 
requirements on every child, every year from grades 3 through 8, this 
plan will take teachers and students out of class; take dollars out of 
state and local education budgets; and undermine successful reform 
efforts already under way in states like my own.
  In Kansas, state assessments already take students away from the 
classroom 6 to 7 days per year. If the assessment provisions pass as 
proposed, Kansas would have to add 10 new assessments. As a result, 
Kansas would be administering 21 assessments on an annual basis. H.R. 1 
means even more time testing and less time learning.
  These new federal mandates are too expensive at a time when education 
budgets are already stretched paper-thin. In Kansas, the cost of 
administering state tests would rise from approximately $1.7 million to 
$9 million. Before the federal government starts tacking on expensive 
new requirements, it should work to fully fund existing mandates such 
as special education.
  Requiring more tests, will interfere with a 10-year educational 
improvement effort already under way in Kansas. Kansans have 
established a system that accurately measures yearly progress of our 
state, our schools, and our students. Our system holds schools 
accountable and provides reports to parents. Under H.R. 1's testing 
requirements, not only will states be required to develop new 
assessments, but local school districts will have to redesign their 
curriculums to meet the new assessments. The bottom line: Kansas is 
making progress, and we should not be forced to abandon a program that 
is working.
  Reform initiatives should come from the parents, teachers and local 
boards of education, and not be imposed by the federal government in a 
one-size-fits-all manner. I remain committed in my belief that the 
educational needs of a community are best known by that community. I 
urge my colleagues to support this amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Michigan (Mr. Hoekstra).
  The question was taken; and the Chairman announced that the noes 
appeared to have it.


                             Recorded Vote

  Mr. HOEKSTRA. Mr. Chairman, I demand a recorded vote.
  A recorded vote was ordered.
  The CHAIRMAN. The Chair announces that, pursuant to clause 6 of rule 
XVIII, proceedings will resume on amendment No. 3 offered by the 
gentlewoman from Washington (Ms. Dunn) immediately after this vote and 
that a vote on amendment No. 3, if ordered, will be reduced to 5 
minutes.
  The vote was taken by electronic device, and there were--ayes 173, 
noes 255, not voting 5, as follows:

                             [Roll No. 130]

                               AYES--173

     Ackerman
     Akin
     Baca
     Baird
     Baldwin
     Barcia
     Barrett
     Bartlett
     Barton
     Becerra
     Bereuter
     Berkley
     Berry
     Bilirakis
     Blagojevich
     Blumenauer
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (FL)
     Brown (OH)
     Cantor
     Capuano
     Chabot
     Clay
     Clayton
     Clyburn
     Coble
     Conyers
     Costello
     Coyne
     Cummings
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     DeFazio
     Delahunt
     DeLauro
     Doolittle
     Doyle
     Duncan
     Evans
     Farr
     Fattah
     Filner
     Flake
     Frank
     Frost
     Ganske
     Gephardt
     Gilchrest
     Gilman
     Gonzalez
     Goode
     Graham
     Green (TX)
     Gutierrez
     Gutknecht
     Hastings (FL)
     Hefley
     Hill
     Hilliard
     Hinojosa
     Hoekstra
     Holden
     Honda
     Hostettler
     Hyde
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kaptur
     Kennedy (MN)
     Kerns
     Kilpatrick
     Kleczka
     LaFalce
     Langevin
     Larson (CT)
     Lee
     Lewis (GA)
     Lowey
     Lucas (OK)
     Luther
     Manzullo
     Markey
     Matsui
     McCarthy (MO)
     McCollum
     McDermott
     McGovern
     McKinney
     Meek (FL)
     Meeks (NY)
     Menendez
     Mink
     Mollohan
     Moran (KS)
     Murtha
     Myrick
     Napolitano
     Neal
     Ney
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pence
     Peterson (MN)
     Phelps
     Pickering
     Pitts
     Pombo
     Ramstad
     Rangel
     Reyes
     Riley
     Rivers
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sawyer
     Scarborough
     Schaffer
     Schakowsky
     Scott
     Sensenbrenner
     Shadegg
     Sherman
     Smith (MI)
     Solis
     Souder
     Stearns
     Strickland
     Stupak
     Tancredo
     Terry
     Thompson (CA)
     Thompson (MS)
     Thurman
     Tierney
     Toomey
     Towns
     Velazquez
     Vitter
     Waters
     Watt (NC)
     Waxman
     Weiner
     Weldon (FL)
     Wexler
     Woolsey
     Wu

                               NOES--255

     Aderholt
     Allen
     Andrews
     Armey
     Bachus
     Baker
     Baldacci
     Ballenger
     Barr
     Bass
     Bentsen
     Berman
     Biggert
     Bishop
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bono
     Brady (TX)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Capito
     Capps
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chambliss
     Clement
     Collins
     Combest
     Condit
     Cooksey
     Cox
     Cramer
     Crane
     Crenshaw
     Crowley
     Culberson
     Cunningham
     Davis (CA)
     Davis, Tom
     Deal
     DeGette
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Dreier
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Everett
     Ferguson
     Fletcher
     Foley
     Ford
     Fossella
     Frelinghuysen
     Gallegly
     Gekas
     Gibbons
     Gillmor
     Goodlatte
     Gordon
     Goss
     Granger
     Graves
     Green (WI)
     Greenwood
     Grucci
     Hall (OH)
     Hall (TX)
     Harman
     Hart
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Herger
     Hilleary
     Hinchey
     Hobson
     Hoeffel
     Holt
     Hooley
     Horn
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Inslee
     Isakson
     Israel
     Issa
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Kanjorski
     Keller
     Kelly
     Kennedy (RI)
     Kildee
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Knollenberg
     Kolbe
     Kucinich
     LaHood
     Lampson
     Lantos
     Largent
     Larsen (WA)
     Latham
     LaTourette
     Leach
     Levin
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lucas (KY)
     Maloney (CT)
     Maloney (NY)
     Mascara
     Matheson
     McCarthy (NY)
     McCrery
     McHugh
     McInnis
     McIntyre
     McKeon
     McNulty
     Meehan
     Mica
     Millender-McDonald
     Miller (FL)
     Miller, Gary
     Miller, George
     Moore
     Moran (VA)
     Morella
     Nadler
     Nethercutt
     Northup
     Norwood
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Pelosi
     Peterson (PA)
     Petri
     Platts
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Regula
     Rehberg
     Reynolds
     Roemer
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Rush
     Sandlin
     Saxton
     Schiff
     Schrock
     Serrano
     Sessions
     Shaw
     Shays
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Spence
     Spratt
     Stark
     Stenholm
     Stump
     Sununu
     Sweeney
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thornberry
     Thune
     Tiahrt
     Tiberi
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Visclosky
     Walden
     Walsh
     Wamp
     Watkins
     Watts (OK)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson
     Wolf
     Wynn
     Young (AK)
     Young (FL)

                             NOT VOTING--5

     Abercrombie
     Cubin
     Hansen
     Moakley
     Rogers (KY)

                              {time}  1518

  Messrs. KIRK, HUNTER and MALONEY of Connecticut changed their vote 
from ``aye'' to ``no.''
  Messrs. HILLIARD, KERNS, BLAGOJEVICH, CONYERS, PICKERING, BARTLETT of 
Maryland and BARCIA, and Ms. McKINNEY changed their vote from ``no'' to 
``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


                  Amendment No. 3 Offered by Ms. Dunn

  The CHAIRMAN. The pending business is the demand for a recorded vote 
on the amendment offered by the gentlewoman from Washington (Ms. Dunn)

[[Page 8992]]

on which further proceedings were postponed and on which the ayes 
prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The CHAIRMAN. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 420, 
noes 3, not voting 9, as follows:

                             [Roll No. 131]

                               AYES--420

     Ackerman
     Aderholt
     Akin
     Allen
     Andrews
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barr
     Barrett
     Bartlett
     Barton
     Bass
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop
     Blagojevich
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chabot
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Conyers
     Cooksey
     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crenshaw
     Crowley
     Culberson
     Cummings
     Cunningham
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Filner
     Flake
     Fletcher
     Foley
     Fossella
     Frank
     Frelinghuysen
     Frost
     Gallegly
     Ganske
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grucci
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Harman
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill
     Hillary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kerns
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Langevin
     Lantos
     Largent
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller (FL)
     Miller, Gary
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Pence
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rivers
     Roemer
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roukema
     Roybal-Allard
     Royce
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Scarborough
     Schakowsky
     Schiff
     Schrock
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Strickland
     Stump
     Stupak
     Sununu
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Towns
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NOES--3

     Johnson, Sam
     Schaffer
     Souder

                             NOT VOTING--9

     Abercrombie
     Cubin
     Ford
     Granger
     Hansen
     Moakley
     Peterson (MN)
     Rodriguez
     Rogers (KY)

                              {time}  1527

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  The CHAIRMAN. It is now in order to consider amendment No. 7 printed 
in House Report 107-69.

                              {time}  1530


          Amendment No. 7 Offered by Mr. Dooley of California

  Mr. DOOLEY of California. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 7 offered by Mr. Dooley of California:
       In section 1111(h)(1)(D) of the Elementary and Secondary 
     Education Act of 1965, as amended by section 104 of the bill, 
     after clause (i), insert the following (and redesignate 
     subsequent provisions accordingly):
       ``(ii) information that provides a comparison between the 
     actual achievement levels of each group of students described 
     in subclauses (I) and (II) of subsection (b)(2)(C) to the 
     State's annual numerical objectives for each such group of 
     students on each of the assessments required under this part;
       In section 1111(h)(1)(D) of the Elementary and Secondary 
     Act of 1965, as amended by section 104 of the bill--
       (1) after clause (v), strike ``and'';
       (2) at the end of clause (vi), strike the period and insert 
     ``; and''; and
       (3) add at the end the following:
       ``(viii) a clear and concise description of the State's 
     accountability system, including: a description of the 
     criteria by which the State evaluates school performance, and 
     the criteria that the State has established, consistent with 
     (b)(2)(B), to determine the status of schools regarding 
     school improvement, corrective action, and reconstitution.''.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
California (Mr. Dooley) and a Member opposed will each control 5 
minutes.
  Mr. BOEHNER. Mr. Chairman, I ask unanimous consent, although I do not 
oppose the amendment, to claim the time in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Ohio?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentleman from California (Mr. 
Dooley).
  Mr. DOOLEY of California. Mr. Chairman, I yield myself such time as I 
may consume.
  First off, I want to complement the gentleman from Ohio (Chairman 
Boehner), the gentleman from California (Mr. George Miller), the 
gentleman from Michigan (Mr. Kildee), and the gentleman from Indiana 
(Mr. Roemer) for the terrific work they have done in putting together 
what is truly a bipartisan education reform bill.
  I represent a region of California, the Central Valley, which is one 
of the most low-income areas of the Nation, an area populated by a lot 
of farmworker families. It is these children that this bill has the 
greatest promise of helping, because it is important for us to have our 
schools ensuring that they are providing the academic programs that are 
ensuring that these students are going to have the skills that allow 
them to compete and win in our economy and our society today.
  Mr. Chairman, this legislation holds a promise, by providing for 
greater accountability, to really empower communities, families, 
students, as well as

[[Page 8993]]

schools, to really be able to understand what they need to be doing in 
order to improve the programs they are providing to enrich the academic 
performance of their schools.
  What is also important for us, and that is the crux of this 
amendment, is that we ensure that that information that we are 
gathering, through this accountability process, will be easily 
understood by parents, teachers, as well as the community.
  The thrust of this legislation is really truth in accountability. We 
need to be able to assure that we can provide this data and this 
information in a manner which really can be utilized and understood by 
the families so that they can understand what they have to do to see 
how they can improve the schools, how they can ensure that they are 
working together as partners with our teachers and schools.
  In many ways, this amendment can also be viewed as a sunshine 
amendment by ensuring once again that when we ask schools to adopt 
these accountability standards, that they are providing this 
information in a manner which is easily understood.
  This amendment I think will go a long way to ensure that the thrust 
and the focus of this legislation, which is to provide greater academic 
performance in our schools through this greater accountability, that 
will make sure we can translate this information in a way that will 
empower parents to have a better understanding of what needs to be done 
and how their school is actually performing.
  Mr. Chairman, I ask all my colleagues to support this.
  Mr. Chairman, I yield such time as he may consume to the gentleman 
from Indiana (Mr. Roemer).
  Mr. ROEMER. Mr. Chairman, I thank the gentleman for yielding time to 
me.
  First of all, I want to thank my dear friend, the gentleman from 
California (Mr. Dooley), for all his hard work on the education bill, 
but also in helping the New Democrats up to 2 years ago formulate 
policy and position and substance on accountability and flexibility and 
resources to help these children.
  I know the gentleman, with his district and State, is greatly 
concerned about this for all his students and for his Hispanic 
population. I just want to thank the gentleman for all his hard work on 
the education issue. The New Democrats, as he knows, came out with a 
bill with Senator Lieberman and Senator Bayh a couple of years ago. I 
think the President saw that bill, saw a good bill, and decided to 
campaign on it. That is basically the heart and soul of much of the 
bipartisanship that we form today.
  I want to thank the gentleman for his work from the New Democratic 
position, and as we work through this bill on the floor and into 
conference, that we continue to work on many of the things that the New 
Democrats have seen as vital to reforming education with new ideas 
since almost 2\1/2\ years ago.
  I thank the gentleman for his hard work and for his amendment here 
today. I encourage support for the amendment.
  Mr. DOOLEY of California. Mr. Chairman, I reserve the balance of my 
time.
  Mr. BOEHNER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, let me congratulate my good friend, the gentleman from 
California (Mr. Dooley). He and I have sat on the Committee on 
Agriculture for the last 10 years and worked very closely on 
agricultural policy and trade policy, as well.
  The amendment that he brings forward I think is helpful to the bill, 
because I think the amendment empowers parents. It gives them 
information that explains in concise terms the academic accountability 
system used by the State and the progress in reaching the numeric goals 
for each of our students.
  In order to be effective and credible, accountability systems must be 
easily understood by parents and educators, and I think this amendment 
will help ensure that that happens.
  Mr. POMEROY. Mr. Chairman, will the gentleman yield?
  Mr. BOEHNER. I yield to the gentleman from North Dakota.
  Mr. POMEROY. Mr. Chairman, I thank the gentleman for yielding, and 
for working with us on this matter.
  The matter I would like to address in this colloquy involves section 
117 of the Carl D. Perkins Act. This section authorizes funding for 
tribally controlled postsecondary, vocational, and technical 
institutions.
  Under prior law and regulation, the funds under this program were 
awarded to institutions not authorized to receive assistance under the 
Tribally Controlled College or University Assistance Act, or the Navajo 
Community College Act.
  As such, these funds are critical to the support of two institutions 
that have for many years provided training consistent with the act and 
are urgently needed by the students of these schools.
  However, the Department of Education has indicated changes in the 
1998 Perkins Act amendments modified the eligibility criteria for these 
funds. This poses a direct threat to the ongoing viability of these two 
schools.
  It was not the intent of Congress to alter the eligibility for 
section 117 funding. It was not the intent of Congress to cause an end 
to these schools. Therefore, a legislative clarification is necessary.
  Mr. Chairman, if, as we expect, this issue arises in conference, I 
ask for Members' support to restore the intended eligibility 
requirement for this program.
  Mr. BOEHNER. Mr. Chairman, I thank my colleague for bringing this 
crucial issue to my attention. I recognize the importance of this 
program for those institutions that have received funds under section 
117.
  During conference negotiations with the Senate, I will work with my 
colleagues to restore eligibility for funding under section 117 of the 
Perkins Act to its original purpose.
  Mr. McKEON. Mr. Chairman, will the gentleman yield?
  Mr. BOEHNER. I yield to the gentleman from California.
  Mr. McKEON. Mr. Chairman, as the chairman of the Subcommittee on 21st 
Century Competitiveness, which has authority over the Perkins Act, I, 
too, want to express my support for restoring section 117 of the act to 
its original purpose. I understand the importance of these funds to 
these schools and appreciate the gentleman bringing it to our 
attention.
  Mr. UDALL of New Mexico. Mr. Chairman, will the gentleman yield?
  Mr. BOEHNER. I am happy to yield to the gentleman from New Mexico.
  Mr. UDALL of New Mexico. Mr. Chairman, I thank the gentleman from 
Ohio (Chairman Boehner) and the subcommittee chairman, the gentleman 
from California (Mr. McKeon), for their comments and commitment to work 
to address this issue.
  Additionally, I would like to point out that the American Indian 
Higher Education Consortium, which represents 32 tribal colleges and 
universities, worked closely with Congress to create the program under 
section 117 to ensure a source of core operational funding for 
vocational educational opportunities.
  Dr. Jim Shanley, President of the American Indian Higher Education 
Consortium, has sent a letter in support of this effort. I appreciate 
the Chairman's cooperation during negotiations with the Senate.
  Mr. KILDEE. Mr. Chairman, will the gentleman yield?
  Mr. BOEHNER. I yield to the gentleman from Michigan.
  Mr. KILDEE. Mr. Chairman, I thank the gentleman for yielding to me.
  I would like to echo the comments of the gentleman from Ohio 
(Chairman Boehner) regarding this program. Congress did not intend to 
make eligibility changes in section 117 of the Carl Perkins Act. I will 
work with my colleagues to address this issue in conference.
  Mr. BOEHNER. Mr. Chairman, I yield the balance of my time to my 
colleague, the gentleman from Delaware (Mr. Castle).
  Mr. CASTLE. Mr. Chairman, I thank the gentleman for yielding time to 
me.
  Mr. Chairman, I think this is an excellent amendment. I think it is 
important that we understand that this

[[Page 8994]]

whole legislation and what we do at the Federal Government is basically 
aimed at helping children who are having problems, who are 
disadvantaged in some way or another.
  By disaggregating this information, as this amendment does, we really 
do that. By making it simpler, as this amendment does, we make sure the 
parents, schools, and students themselves understand exactly what is 
expected, what they have achieved, and where we are going in the 
direction of education. That is what it is all about.
  Having a rising tide will help all children. I think this amendment 
does it. I compliment the sponsor of it.
  Mr. DOOLEY of California. Mr. Chairman, I yield such time as he may 
consume to the gentleman from Rhode Island (Mr. Kennedy).
  Mr. KENNEDY of Rhode Island. Mr. Chairman, I thank the gentleman from 
California for his amendment and applaud him for his efforts. It is an 
important addition to this bill.
  I would also like to commend the chairman and ranking member of the 
Committee on Education and the Workforce on this landmark legislation.
  I had intended to offer an amendment that would have helped ensure 
that children arrive at school with all the tools that they need for 
success. I will instead engage the gentleman from Ohio (Chairman 
Boehner) and the ranking member, the gentleman from Michigan (Mr. 
Kildee), in a colloquy.
  On the basis of a growing body of scientific study, there is an 
increasing recognition that the foundations for learning are laid in a 
child's earliest years. Both the President's proposal and the 
bipartisan bill crafted by the committee took notice of this knowledge 
in providing for the Early Reading First Initiative to help the 
development of literacy skills in pre-school age children.
  My amendment would complement the Early Reading First Initiative by 
promoting young children's emotional and social development, as well as 
their literacy skills, so they will be prepared for success when they 
begin school.
  This approach was recommended by the National Academy of Sciences, 
and also urged by kindergarten teachers. It is a proven method to 
reduce special education placements, grade retention, juvenile arrests, 
and school dropouts.
  The CHAIRMAN. The time of the gentleman from California (Mr. Dooley) 
has expired.
  Mr. KENNEDY of Rhode Island. Mr. Chairman, I ask unanimous consent 
for 1 additional minute.
  The CHAIRMAN. That request must be for equal time on both sides.
  Mr. BOEHNER. Mr. Chairman, I ask unanimous consent that we have 10 
additional minutes on this amendment, equally split between both sides.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Ohio?
  There was no objection.
  Mr. KENNEDY of Rhode Island. Mr. Chairman, will the gentleman yield?
  Mr. DOOLEY of California. I yield to the gentleman from Rhode Island.
  Mr. KENNEDY of Rhode Island. Mr. Chairman, I thank the gentleman for 
yielding to me.
  Mr. Chairman, this is part of a strategy to improve test scores and 
academic achievement. It has been proven to work. I know the chairman 
and ranking member of the Committee share my commitment to ensuring 
that children enter school with all the tools they need. Their 
dedication to the educational needs of our youth is evidenced by their 
hard work on this bill.
  I would ask if the gentleman from Ohio (Chairman Boehner) would be 
willing to work with me in conference to address the goals of this 
amendment in the final legislation.
  Mr. BOEHNER. Mr. Chairman, will the gentleman yield?
  Mr. DOOLEY of California. I yield to the gentleman from Ohio.
  Mr. BOEHNER. Mr. Chairman, I thank the gentleman from Rhode Island 
for his kind words.
  Congress has a history of supporting programs that promote school 
readiness for young children. In the 105th Congress, we reformed the 
Head Start program to ensure better school readiness programs for pre-
schoolers.
  We have the Individuals with Disabilities Education Act part C 
program that provides early intervention services for infants and 
toddlers with disabilities. Just last year we created a new program for 
children ages 0 through 6, or I guess one day through 6, called Early 
Learning that addresses these same issues.
  I support the goal of this amendment, helping children to be fully 
ready to enter elementary school and ready to learn. I believe we can 
best achieve this goal by working within existing programs and systems. 
We should encourage providers in the existing programs to address all 
aspects of school readiness.
  I want to thank the gentleman from Rhode Island (Mr. Kennedy) for his 
thoughtful addition to this debate. I would be happy to work with him 
to help achieve this goal.
  Mr. KILDEE. Mr. Chairman, will the gentleman yield?
  Mr. DOOLEY of California. I yield to the gentleman from Michigan.
  Mr. KILDEE. Mr. Chairman, I have spoken with the gentleman from Rhode 
Island about this amendment. I think we should work to address this 
issue in conference, Mr. Chairman. It is sound policy to help put at-
risk children on a healthy trajectory earlier in their lives. Helping 
families and communities build children's emotional skills in the early 
years will lead to increased academic achievement.
  This amendment is a strong proposal to do just that, and I will 
support the efforts of the gentleman from Rhode Island (Mr. Kennedy) to 
address this issue in conference.
  Mr. KENNEDY of Rhode Island. Mr. Chairman, If the gentleman from 
California will continue to yield, I thank the gentleman from Michigan.
  Mr. DOOLEY of California. Mr. Chairman, I yield myself such time as I 
may consume.
  In closing, I urge all my colleagues to support this amendment. Once 
again, I want to compliment the gentleman from Ohio (Chairman Boehner) 
and the gentleman from California (Mr. George Miller) for their 
terrific work on this legislation.
  Mr. Chairman, I yield back the balance of my time.
  Mr. BOEHNER. I urge my colleagues to support the amendment, and I 
yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from California (Mr. Dooley).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 8 printed 
in House Report 107-69.

                              {time}  1545


                 Amendment No. 8 Offered by Mr. Vitter

  Mr. VITTER. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 8 offered by Mr. Vitter:
       In part E of title VIII of the Elementary and Secondary 
     Education Act of 1965, as proposed to be amended by section 
     801 of the bill, after section 8519, insert the following 
     (and redesignate succeeding paragraphs, and any cross-
     references thereto, accordingly):

     ``SEC. 8520. ARMED SERVICES RECRUITING.

       ``Any secondary school that receives Federal funds under 
     this Act shall permit regular United States Armed Services 
     recruitment activities on school grounds, in a manner 
     reasonably accessible to all students of such school.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
Louisiana (Mr. Vitter) and a Member opposed each will control 5 
minutes.
  Mr. GEORGE MILLER of California. Mr. Chairman, I ask unanimous 
consent to claim the time in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
California (Mr. George Miller)?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentleman from Louisiana (Mr. 
Vitter).
  Mr. VITTER. Mr. Chairman, I yield myself 2 minutes.
  Mr. Chairman, I rise today to speak in favor of the Vitter-Sessions 
amendment to H.R. 1. This amendment will prevent discrimination against 
armed

[[Page 8995]]

services recruiters and will simply offer them fair access to secondary 
schools that accept Federal funding.
  Mr. Chairman, top Department of Defense manpower officials, as well 
as the actual military recruiters on the ground, in the trenches, if 
you will, face daunting challenges in beefing up our military with 
good, new, young recruits. That is particularly true in a flourishing 
economy.
  What I find truly dismaying and alarming, however, is that the 
Pentagon estimates there are some 2,000 schools nationally that 
actually have policies banning recruiters from their campuses.
  Should we discriminate against our national interests of a strong 
armed services by restricting which youth have access to choose a 
career in the U.S. military?
  Recruiters have stated that in many cases they have been denied 
access simply and solely because of school administrators' own personal 
antimilitary bias or lack of familiarity with the positive aspects of 
military service.
  What is going on clearly, Mr. Chairman, is pure, old-fashioned bad 
political correctness and antimilitary ideology being shoved down the 
throats of our young people.
  This amendment simply states that secondary educational institutions 
that receive Federal funding must allow the same Armed Forces that are 
sworn to protect and defend the lives of students and teachers access 
to students in those educational institutions, just like college 
recruiters, university recruiters, and employment recruiters are given 
access on those campuses.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself such 
time as I may consume.
  Mr. Chairman, I know of no real opposition to this amendment. There 
are some who obviously think that this is a decision school boards 
ought to be making. They are elected by the people in the community; if 
that is the view of the people in the communities, then maybe they 
ought to reflect that. But I know of no real opposition here.
  Mr. Chairman, I yield back the balance of my time.
  Mr. VITTER. Mr. Chairman, I yield 2 minutes to the gentleman from 
Texas (Mr. Sessions).
  Mr. SESSIONS. Mr. Chairman, I thank the gentleman from Louisiana (Mr. 
Vitter) for yielding me the time.
  This Vitter-Sessions amendment is very important for the Armed Forces 
of this country. We have heard today how school boards all across this 
country and up to 2,000 schools nationally have banned military 
recruiters from coming on their campus.
  It is of the utmost importance that the American military have the 
opportunity to not only come and tell their story about the military, 
but also to attract some of the brightest and best of our young people.
  Mr. Chairman, see, many times there are people who have no other 
opportunities, whether it be college or other directions, and the 
military stands as a fabulous, not only career, but an opportunity for 
public service that young men and young women all across our country, 
and they might not have that opportunity simply because a school board 
or a school superintendent or principal might have a bias against the 
military.
  I was on the U.S.S. John C. Stennis, which is one of our largest 
aircraft carriers, just a few weeks ago and spoke with person after 
person, young persons from all across this country, and many of them 
expressed to me that the vision and idea that they had not only about 
serving our Nation came from a member of the military who visited their 
campus, but also from a loved one who perhaps served in the military.
  Mr. Chairman, I will tell my colleagues this amendment to H.R. 1 of 
allowing the military the opportunity to recruit on school campuses all 
across America is not only in the best interests of America, but it is 
in the best interests of every one of our students.
  Mr. Chairman, I thank the gentleman from Louisiana (Mr. Vitter) for 
his leadership.
  Mr. VITTER. Mr. Chairman, I yield 30 seconds to the gentleman from 
Illinois (Mr. Shimkus).
  Mr. SHIMKUS. Mr. Chairman, I want to thank the gentleman from 
California (Mr. George Miller) for his kind words.
  Earlier today we debated the World War II memorial and remembered 
those who served. For schools to accurately depict history, they have 
to talk about those who served.
  Serving in the military is honorable. Military service increases 
self-esteem, discipline, devotion to duty, selfless service, and love 
of country. That is not too bad. No recruiters; no money.
  Let us open the door to those who serve our young men and women and 
allow them to serve this great Nation. We, as a Nation, will not be 
disappointed.
  Mr. VITTER. Mr. Chairman, I yield 30 seconds to the gentleman from 
North Carolina (Mr. Hayes).
  Mr. HAYES. Mr. Chairman, I enthusiastically support the Vitter-
Sessions amendment. It is hard to believe that recruiters do not have 
access to our young men and women, but this is an opportunity for 
character education.
  It is an opportunity for national security. This brings to our 
schools, through ROTC, character, honesty, integrity, core values of 
the military. I appreciate the gentleman bringing this to our 
attention, and I strongly support the Vitter-Sessions amendment and 
recommend my colleagues do the same.
  Mr. DeFAZIO. Mr. Chairman, I intend to vote against the Vitter 
amendment not because I personally believe military recruiters should 
be excluded from school grounds but because I strongly support the 
ability of local communities to determine what is best for their 
schools and their children.
  The CHAIRMAN. All time for debate has expired.
  The question is on the amendment offered by the gentleman from 
Louisiana (Mr. Vitter).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.
  Mr. VITTER. Mr. Chairman, I demand a recorded vote, and pending that, 
I make the point of order that a quorum is not present.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentleman from Louisiana (Mr. Vitter) 
will be postponed.
  The point of no quorum is considered withdrawn.
  The CHAIRMAN. It is now in order to consider Amendment Number 9 
printed in House Report 107-69.


                 Amendment No. 9 Offered by Mr. Tiberi

  Mr. TIBERI. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 9 offered by Mr. Tiberi:
       At the end of the provision proposed to be added by section 
     701 of the bill, add the following:

               ``PART C--LOCAL FLEXIBILITY DEMONSTRATION

     ``SEC. 7301. SHORT TITLE.

       This part may be cited as the ``Local Flexibility 
     Demonstration Act''.

     ``SEC. 7302. PURPOSE.

       ``The purpose of this part is to create options for local 
     educational agencies--
       ``(1) to improve the academic achievement of all students, 
     and to focus the resources of the Federal Government upon 
     such achievement;
       ``(2) to improve teacher quality and subject matter 
     mastery, especially in mathematics, reading, and science;
       ``(3) to empower parents and schools to effectively address 
     the needs of their children and students;
       ``(4) to give local educational agencies maximum freedom in 
     determining how to boost academic achievement and implement 
     education reforms;
       ``(5) to eliminate Federal barriers to implementing 
     effective local education programs;
       ``(6) to hold local educational agencies accountable for 
     boosting the academic achievement of all students, especially 
     disadvantaged children; and
       ``(7) to narrow achievement gaps between the lowest and 
     highest performing groups of students so that no child is 
     left behind.

     ``SEC. 7303. AGREEMENTS TO PROVIDE LOCAL FLEXIBILITY.

       ``(a) Authority.--Except as otherwise provided in this 
     part, the Secretary shall enter into performance agreements--

[[Page 8996]]

       ``(1) with local educational agencies that meet their 
     State's definition of adequate yearly progress, that submit 
     approvable performance agreement proposals, and that are 
     selected under paragraph (2); and
       ``(2) under which the agencies may consolidate and use 
     funds as described in section 7304.
       ``(b) Selection of Local Educational Agencies.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall enter into performance agreements under this part with 
     not more than 100 local educational agencies. Each such local 
     educational agency shall be selected from among those local 
     educational agencies that--
       ``(A) submit a proposed performance agreement to the 
     Secretary and demonstrate, to the satisfaction of the 
     Secretary, that the agreement)
       ``(i) has substantial promise of meeting the requirements 
     of this part; and
       ``(ii) describes a plan to combine and use funds (as 
     authorized under section 7304) under the agreement to meet 
     the State's definition of adequate yearly progress);
       ``(B) provide information in the proposed performance 
     agreement regarding how the local educational agency has 
     notified the State of the local educational agency's intent 
     to submit a proposed performance agreement; and
       ``(C) have consulted and involved parents and educators in 
     the development of the proposed performance agreement.
       ``(2) Geographic distribution.--
       ``(A) In general.--
       ``(i) Initial agreements.--During the period of time that 
     expires 3 years after the date of enactment of the No Child 
     Left Behind Act of 2001, the Secretary may enter into not 
     more than 2 performance agreements under this part with local 
     educational agencies in each State.
       ``(ii) Subsequent agreements.--After the expiration of the 
     3-year period beginning on the date of enactment of the No 
     Child Left Behind Act of 2001, the Secretary may enter into 
     performance agreements under this part with any number of 
     local educational agencies in each State until the total 
     number of such agreements equals 100.
       ``(B) Urban and rural areas.--If more than 2 local 
     educational agencies in a State submit approvable performance 
     agreements under this part, the Secretary shall select local 
     educational agencies for performance agreements under this 
     part in a manner that ensures an equitable distribution among 
     such agencies serving urban and rural areas.
       ``(c) Required Terms of Performance Agreement.--Each 
     performance agreement entered into with the Secretary under 
     this part shall have each of the following terms:
       ``(1) Term.--The performance agreement shall be for a term 
     of 5 years.
       ``(2) Application of program requirements.--The performance 
     agreement shall provide that no requirements of any program 
     described in section 7304(b) and included by the local 
     educational agency in the scope of the agreement shall apply 
     to the agency, except as otherwise provided in this part.
       ``(3) List of programs.--The performance agreement shall 
     list which of the programs described in section 7304(b) are 
     included in the scope of the performance agreement.
       ``(4) Use of funds to improve student achievement.--The 
     performance agreement shall contain a 5-year plan describing 
     how the local educational agency intends to combine and use 
     the funds from programs included in the scope of the 
     performance agreement to advance the education priorities of 
     the State and the local educational agency, meet the general 
     purposes of the included programs, improve student 
     achievement, and narrow achievement gaps.
       ``(5) Local input.--The performance agreement shall contain 
     an assurance that the local educational agency will provide 
     parents, teachers, and schools with notice and an opportunity 
     to comment on the proposed terms of the performance agreement 
     in accordance with State law.
       ``(6) Fiscal responsibilities.--The performance agreement 
     shall contain an assurance that the local educational agency 
     will use fiscal control and fund accounting procedures that 
     will ensure proper disbursement of, and accounting for, 
     Federal funds consolidated and used under the performance 
     agreement.
       ``(7) Civil rights.--The performance agreement shall 
     contain an assurance that the local educational agency will 
     meet the requirements of applicable Federal civil rights laws 
     in carrying out the agreement and in consolidating and using 
     the funds under the agreement.
       ``(8) Private school participation.--The performance 
     agreement shall contain an assurance that the local 
     educational agency agrees that in consolidating and using 
     funds under the performance agreement--
       ``(A) the local educational agency will provide for the 
     equitable participation of students and professional staff in 
     private schools; and
       ``(B) that sections 8504, 8505, and 8506 shall apply to all 
     services and assistance provided with such funds in the same 
     manner as such sections apply to services and assistance 
     provided in accordance with section 8503.
       ``(9) Annual reports.--The performance agreement shall 
     contain an assurance that the local educational agency agrees 
     that not later than 1 year after the date on which the 
     Secretary enters into the performance agreement, and annually 
     thereafter during the term of the performance agreement, the 
     local educational agency shall disseminate widely to parents 
     and the general public, transmit to its State educational 
     agency and the Secretary, distribute to print and broadcast 
     media, and post on the Internet, a report that includes a 
     detailed description of how the local educational agency used 
     the funds consolidated under the agreement to improve student 
     academic achievement and reduce achievement gaps.
       ``(c) Approval.--Not later than 60 days after the receipt 
     of a proposed performance agreement submitted by a local 
     educational agency under this part, the Secretary shall 
     approve the performance agreement or provide the local 
     educational agency with a written determination that such 
     agreement fails to satisfy the requirements of this part.
       ``(d) Amendment to Performance Agreement.--
       ``(1) In general.--In each of the following circumstances, 
     the Secretary shall agree to amend a performance agreement 
     entered into with a local educational agency under this part:
       ``(A) Reduction in scope of performance agreement.--Not 
     later than 1 year after entering into the performance 
     agreement, a State seeks to amend the agreement to remove 
     from the scope any program described in section 7304(b).
       ``(B) Expansion of scope of performance agreement.--Not 
     later than 1 year after entering into the performance 
     agreement, a State seeks to amend the agreement to include in 
     its scope any additional program described in section 7304(b) 
     or any additional achievement indicators for which the State 
     will be held accountable.
       ``(2) Approval of amendment.--
       ``(1) In general.--Not later than 60 days after the receipt 
     of a proposed amendment to the performance agreement 
     submitted by a local educational agency, the Secretary shall 
     approve the amendment or provide the agency with a written 
     determination that the amendment fails to satisfy the 
     requirements of this part.
       ``(B) Treatment as approved.--Each amendment for which the 
     Secretary fails to take the action required in subparagraph 
     (A) in the time period described in such subparagraph shall 
     be considered to be approved.
       ``(3) Treatment of program funds withdrawn from 
     agreement.--Beginning on the effective date of an amendment 
     executed under paragraph (1)(A), each program requirement of 
     each program removed from the scope of a performance 
     agreement shall apply to the local educational agency's use 
     of funds made available under the program.

     ``SEC. 7304. CONSOLIDATION AND USE OF FUNDS.

       ``(a) In General.--
       ``(1) Authority.--Under a performance agreement entered 
     into under this part, a local educational agency may 
     consolidate, subject to subsection (c), Federal funds made 
     available to the agency under the provisions listed in 
     subsection (b) and use such funds for any educational purpose 
     permitted under this Act.
       ``(2) Program requirements.--Except as otherwise provided 
     in this part, a local educational agency may use funds under 
     paragraph (1) notwithstanding the program requirements of the 
     program under which the funds were made available to the 
     State.
       ``(b) Eligible Programs.--Funds made available under 
     programs under each of the following provisions of this Act 
     may be consolidated and used under subsection (a):
       ``(1) Title II.
       ``(2) Part A of title IV.
       ``(3) Subpart 1 of part A of title V.
       ``(4) Part B of title V.

     ``SEC. 7305. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.

       ``Each local educational agency that has entered into a 
     performance agreement with the Secretary under this part may 
     use for administrative purposes not more than 4 percent of 
     the total amount of funds allocated to the agency under the 
     programs included in the scope of the performance agreement.

     ``SEC. 7306. PERFORMANCE REVIEW AND PENALTIES.

       ``(a) Midterm Review.--The Secretary may not enter into a 
     performance agreement under this part unless the agreement 
     includes a provision permitting the Secretary, after notice 
     and an opportunity for a hearing, to terminate the agreement 
     if, during the term of the agreement, the local educational 
     agency that is party to the agreement fails to make adequate 
     yearly progress for 3 consecutive years.
       ``(b) Final Review.--If, at the end of the 5-year term of a 
     performance agreement entered into under this part, a local 
     educational agency that is party to the agreement has not met 
     the achievement goals contained in the performance agreement, 
     the Secretary may not renew the agreement under section 7307 
     and, beginning on the date on which such term ends, the local 
     educational agency shall be required to comply with each of 
     the program requirements in effect on such date for each 
     program included in the performance agreement.

[[Page 8997]]



     ``SEC. 7307. RENEWAL OF PERFORMANCE AGREEMENT.

       ``(a) In General.--Except as provided in section 7306(b) 
     and in accordance with this section, the Secretary shall 
     renew for 1 additional 5-year term a performance agreement 
     entered into under this part if the State that is party to 
     the agreement has met or has substantially met, by the end of 
     the original term of the agreement, the achievement goals 
     contained in the agreement.
       ``(b) Notification.--The Secretary may not renew a 
     performance agreement under this part unless, not less than 6 
     months before the end of the original term of the agreement, 
     the local educational agency seeking the renewal notifies the 
     Secretary of its intention to renew.
       ``(c) Effective Date.--A renewal under this section shall 
     be effective at the end of the original term of the agreement 
     or on the date on which the local educational agency seeking 
     renewal provides to the Secretary all data required under the 
     agreement, whichever is later.

     ``SEC. 7308. REPORTS.

       ``(a) Transmittal to Congress.--Not later than 60 days 
     after the Secretary receives a report described in section 
     7303(c)(9), the Secretary shall make the report available to 
     the Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Health, Education, Labor 
     and Pensions of the Senate.
       ``(b) Limitation.--A State in which a local educational 
     agency that is party to a performance agreement entered into 
     under this part is located may not require such local 
     educational agency to provide any application information 
     with respect to the programs included within the scope of 
     such performance agreement other than that information that 
     is required to be included in the report described in section 
     7303(c)(9).

     ``SEC. 7309. DEFINITIONS.

       ``In this part, the following definitions apply:
       ``(1) Adequate yearly progress.--The term `adequate yearly 
     progress' means the adequate yearly progress determined by 
     the State in which a local educational agency is located 
     pursuant to section 1111(b)(2)(C).
       ``(2) All students.--The term `all students' means all 
     students attending public schools or charter schools that are 
     participating in the State's accountability and assessment 
     system.''.

  The CHAIRMAN. Pursuant to House Resolution 143, the gentleman from 
Ohio (Mr. Tiberi) and the gentleman from California (Mr. George Miller) 
will each control 15 minutes.
  The Chair recognizes the gentleman from Ohio (Mr. Tiberi).
  Mr. TIBERI. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I first would like to thank the gentleman from Ohio 
(Mr. Boehner), chairman of the Committee on Education and the 
Workforce, and the gentleman from Delaware (Mr. Castle), the chairman 
of the Subcommittee on Education Reform, for their fine work on this 
piece of legislation and for their support for the amendment that I am 
offering at this time.
  Mr. Chairman, this amendment expands upon what is already in this 
bill, which is a good bill; and it will make this bill a better bill.
  Under this amendment sponsored by myself and the gentleman from 
Delaware (Mr. Castle), local school districts could sign performance 
agreements with the Secretary of Education to allow them to consolidate 
non-title I formula grant programs together.
  Only two districts per State in all 50 States, for a total of 100 
school districts, may do this. If approved by the Secretary, districts 
could be relieved of the requirements of those Federal programs that 
they consolidate.
  If a school district is a failing school district, they may not 
apply. School districts that fail to make progress during the 
performance agreement contract may not continue to participate, thus 
the Secretary may cancel the agreement.
  This piece of legislation is supported by the National School Boards 
Association, the Association of School Administrators, and the Council 
of Great City Schools. It offers local flexibility, local 
accountability, which will equal results.
  Let us pass this amendment. Let us give additional tools to our 
locally elected school board members, to our local superintendents, so 
they can help the young men and women in our classroom.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself such 
time as I may consume.
  Mr. Chairman, I rise in opposition to this amendment. I think 
basically the core problem with this amendment is that, in fact, the 
block grant, the manner in which it is constructed and the school 
districts that would, in fact, qualify for it really stands 
accountability on its head.
  In fact, you have the ability of a school district to be failing, if 
you will, essentially almost 4 years out of 5 years, and at the same 
time receive the ability to do this.
  Mr. Chairman, I realize that the amendment suggests if you make 
inadequate yearly progress, you can then have the block grant approach. 
But the fact of the matter is, you can fail to meet adequately yearly 
progress for 2 years, you could meet it a 3rd year or you could be back 
again in 2 years and you continue to get the block grant approach.
  I think that that takes away much of the accountability that we have 
sought to have in this legislation. I think allowing the school 
districts to use these grants eliminates the very purpose of which we 
establish these priorities.
  Why would we want to have a district eliminating spending on teacher 
quality when we continue to have large numbers of uncertified and 
unqualified teachers? Clearly in the legislation before us, we allow 
for greater flexibility. We also recognize that there is a purpose and 
a reason for these priorities. That is why we do not go to a block 
grant.
  We try to provide that flexibility, but we also try to make sure that 
the purposes for which that money was sent is maintained by allowing 
school districts to move some of that money back and forth across those 
lines, but not too to engage in the block grant approach.
  So for those reasons, Mr. Chairman, I oppose this amendment and would 
ask my colleagues to oppose this amendment.
  I think that the arrangement that we have arrived at within the 
current legislation that is before us, that the gentleman from Indiana 
(Mr. Roemer) and others worked on to provide a substantially greater 
level of flexibility for districts, is a better answer than to provide 
these block grants.
  Mr. Chairman, I reserve the balance of my time.
  Mr. TIBERI. Mr. Chairman, I yield 3 minutes to the gentleman from 
Delaware (Mr. Castle), the chairman of the Subcommittee on Education 
Reform.
  Mr. CASTLE. Mr. Chairman, I thank the gentleman from Ohio (Mr. 
Tiberi), the sponsor of the amendment, for yielding the time to me.
  Mr. Chairman, I join in support of it.
  Before I speak to that, I would like to point out something which is 
very important. We are actually talking about an amendment to something 
else that was really created by the gentleman from Ohio (Mr. Boehner), 
the chairman of the Committee on Education and the Workforce, the 
gentlewoman from Hawaii (Mrs. Mink), who is here on the floor right 
now, and various others, which is something called local Straight A's, 
which we have never had before.
  I think it is very important that all of us understand what we are 
dealing with here, because I think local Straight A's was actually an 
ingenious concept to really introduce flexibility in the use of Federal 
dollars with respect to State and local governments which so many of us 
have talked about for so long.
  First of all, it is open to all districts and States, local 
flexibility. Second, it is automatic flexibility. You can do it, you do 
not have to get approval. You just go about doing it.
  You can transfer up to 50 percent of the funds in any of the various 
Federal programs with the exception of title I. Money can only be 
transferred into title I, and you still must meet the program 
requirements.
  You can transfer up to 50 percent of the money and it coexists with 
other proposals, such as education flexibility. It is something that 
virtually all of us in the committee, once it was shaped, agreed upon 
as something which is a vast improvement to what we have now. I would 
hope that all of us in this Congress would understand that and would 
support it.

[[Page 8998]]

  Mr. Chairman, turning to the program at hand, which is, for lack of a 
better term, superlocal flexibility, this is an extension beyond that. 
The gentleman from Ohio (Mr. Tiberi) has very carefully thought this 
out and deserves a lot of credit for it. And my colleagues heard the 
description of it here.
  But there are certain things we need to understand. First of all, 
this is a pilot program which can only apply to 100 districts in 50 
States, no more than two per State across our country. So we are not 
dealing with all the States.
  Second, this program, unlike the local flexibility, would be subject 
to the approval of the Secretary. So you would have to enter into an 
agreement with the Secretary in order to make sure that you are 
carrying out your educational purposes correctly.
  Next, the school district would have to make adequate, clear progress 
or they cannot apply for this. So they would have to be able to 
demonstrate that. It does include a variety of programs, the Teachers 
Program in title II; the title IV(A), block grant; the title V(A), safe 
and drug free schools; the technology programs and certain of the 
bilingual programs.

                              {time}  1600

  But the title I accountability remains and is still part of the 
underlying concepts of what every school district has to do. The 
schools must meet the general purposes of the program.
  I believe, because of the limitation on it, it is a pilot program, 
because of the Secretarial approval, because title I is still 
protected, that giving this extension to those schools who feel they 
can go this far, and I am not sure there are that many who feel they 
can, but up to these 100 districts is worthwhile.
  I happen to believe in pilot programs when I think it can extend the 
good purpose of what we are trying to do in education. I believe that 
is a concept that is embodied in the super-local flexibility program 
which we have here before us. Remember, no school has to participate.
  So I would encourage everyone to look at it to consider supporting 
it, hopefully supporting it, and joining in giving us more flexibility 
as we give more money back to the State and local education areas.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 2 minutes to 
the gentleman from Wisconsin (Mr. Kind).
  Mr. KIND. Mr. Chairman, I thank the gentleman from California for 
yielding me this time. I, as a member of the Committee on Education and 
the Workforce, reluctantly rise in opposition to the amendment.
  Mr. Speaker, I have been a strong proponent for greater flexibility 
at the local school level and in the course of drafting H.R. 1, working 
in a bipartisan fashion, for the need for greater consolidation of the 
Federal programs. H.R. 1 contains that consolidation and flexibility.
  But with that consolidation comes incredible flexibility already 
built into the core bill. In fact, between the various titles, 
excluding title I, the targeted title for disadvantaged students, the 
rest of the titles on H.R. 1 have 50 percent flexibility in the 
transfer of funds from title to title. Therefore, I really do not see 
the need for this amendment.
  As the gentleman from Delaware (Mr. Castle) pointed out, I doubt 
there are going to be many school districts that are in a position to 
take advantage of it or willing to take advantage, because I believe 
there are merits to having some specific titles with specific goals and 
purposes underneath those titles.
  In an era in which we are facing a 2.2 million teacher shortage over 
the next 10 years, it does not really make sense to allow flexibility 
of taking money out of the recruitment and retention and investing it 
in quality teaching programs when we have such a shortfall.
  At a time when most of us, especially parents with kids in the school 
district already who are very concerned about school safety issues and 
the bullying that is taking place on the school grounds, whether or not 
schools should be taking money out of school safety programs or after-
school programs, for instance, I just do not think this is a judicious 
use of the amendment process in asking for complete flexibility, even 
though it is in a limited fashion, even though it is targeted at the 
local school districts, because we have already built in in the 
underlying bill an incredible amount of flexibility that we are giving 
local school districts.
  I do not think many of us really want to be able to answer back to 
the constituents who we represent and the taxpayers when it comes to 
accountability issues.
  I think the gentleman from California (Mr. George Miller) did point 
out a glaring weakness in the amendment, and that is in overriding 
accountability provisions that are contained in H.R. 1. We are going to 
deviate from that aspect with this amendment. So I encourage my 
colleagues to oppose this and vote for the underlying bill.
  Mr. TIBERI. Mr. Chairman, I yield 3 minutes to the gentleman from 
Georgia (Mr. Isakson).
  Mr. ISAKSON. Mr. Chairman, I thank the gentleman from Ohio (Mr. 
Tiberi) for bringing this amendment to the floor. I rise in support of 
it because I recognize there are unique circumstances where this type 
of flexibility ought to be available to our systems.
  Rather than making a general speech, I would like to use two specific 
examples, the city of Dalton public schools in Georgia and the city of 
Gainesville public schools in Georgia.
  Ten years ago, both these systems had a Hispanic population that was 
less than a fraction of a percent. Today, in the city of Dalton, the 
percentage of Hispanic students is almost 60 percent, as it is in the 
city of Gainesville.
  This amendment recognizes that there are certain circumstances where 
the uniqueness of challenges that confront a system are overriding.
  To let my colleagues know how pressing that is, in the city of 
Dalton, a gentleman by the name of Erwin Mitchell, 7 years ago, started 
something called the Georgia Project, a project that exchanges teachers 
from Georgia with the University of Monterey in Mexico to teach 
Hispanic-speaking teachers English and English-speaking teachers 
Spanish so when they exchange those students, and they come to Georgia, 
that we have the ability to train children from their primary language 
of Spanish to the language of English in a rapid period of time.
  This type of a circumstance directly addresses the gentleman's 
amendment. Those two systems could apply to the Secretary and say we 
have unique circumstances to which we aspire to perform. But we must 
and need to move resources earmarked for one program into our programs 
to speakers of other languages other than English.
  It is a 5-year agreement. It is performance based. It allows a system 
that has very unique circumstances, but circumstances that are entirely 
troubling, to address them and confront them and use Federal funds to 
do so.
  So I think the gentleman from Ohio (Mr. Tiberi) and the gentleman 
from Delaware (Mr. Castle) have recognized that there are places and 
there are times and there are circumstances where maximum flexibility 
should and ought to be granted. It should be based on the Department's 
willingness to approve the application of the local system and a 
contract between the two parties to address specifically the problem 
that they are confronted with.
  I think the gentleman from Ohio (Mr. Tiberi) and the gentleman from 
Delaware (Mr. Castle) have recognized we have unique circumstances, 
that this local flexibility allows us to address those; and I commend 
the amendment to the body.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 3 minutes to 
the gentlewoman from Hawaii (Mrs. Mink).
  Mrs. MINK of Hawaii. Mr. Chairman, I thank the gentleman for yielding 
me this time.
  Mr. Chairman, I had the privilege of serving on the working group. 
From the moment that the two sides, the majority and minority met, 
there were two things which we laid on the table

[[Page 8999]]

and said from the viewpoint of the minority we could not possibly ever 
accept. One had to do with vouchers and the other had to do with the 
block grants that we refer to as Straight A's. There was absolutely no 
possibility that our position could have been misunderstood.
  So as we worked our way through all of the other matters that we were 
confronted with in trying to develop a core bill, to the very end we 
were absolutely certain that we would not accept a block grant 
provision.
  What has been written into the bill is not a block grant position at 
all. It has to do with the transferability of funds from one program, 
keeping the identified program restrictions. One could move from 
teacher development into technology or into school safety, but if one 
did transfer the funds from one project to another, one had to be sure 
that the program restrictions were completely adhered to. That is not a 
block grant. That is not Straight A's. That was the commitment that we 
made on both sides in order to dispose of the possibility that we could 
really engage in a debate on block grants.
  Yet, here we are in developing this particular debate today, struck 
with a block grant provision which is exactly the antithesis of what we 
said we were going to come out and defend on the floor.
  This is a pilot program. Certainly that is what it is. Two school 
districts in every State is a modest beginning. It is a pilot program. 
But without question, it is a block grant because it completely 
obliterates the program definitions. One could just take the money and 
spend it for whatever one wanted to. That certainly obliterates the 
function of accountability for this Chamber.
  We are accountable to taxpayers. It is our job to define what the 
needs of our school districts are. We have defined it as teacher 
quality being very, very important, the necessity to upgrade our school 
systems so that they can meet the challenges of the future and 
technology, school safety, and so forth.
  We allow transferability. We are not being stiff about it. But 
certainly we can see this before us without all the camouflage that 
this is nothing more than a Straight A's on a pilot program designed to 
go into the States and give to school districts the opportunity to 
spend this particular title money for anything that they please. That 
is certainly not accountability for us.
  If we are demanding accountability on the schools and on the 
teachers, on the principal, we ought to be accountable for defining how 
monies are to be spent and not allow it to go for a block grant kind of 
distribution.
  Mr. TIBERI. Mr. Chairman, I yield 2 minutes to the gentleman from 
Florida (Mr. Keller).
  Mr. KELLER. Mr. Chairman, I thank the gentleman for yielding me this 
time. I rise today in strong support of the Tiberi-Castle amendment.
  For many years, the most dreaded words school board members would 
hear is we are from Washington D.C. and we are here to help you. Why? 
Because they only get 7 cents on every educational dollar from 
Washington, D.C., yet over half of the red tape that they have to fill 
out because of us. They wanted dramatic red-tape relief and 
flexibility.
  Right now, the bill as is is pretty good. They can use up to 50 
percent of their non-title I money any way they want, switching it 
around. But what we are saying in this particular amendment to 100 
school districts is we are going to give you a chance to put your money 
where your mouth is. We are going to give complete flexibility to the 
first 100 districts who take us up on it, other than their title I 
money, to use it however they want, however they see fit in exchange 
for accountability.
  That means, if a particular school does not have a problem with 
teacher development or have a problem with drug prevention, but they do 
not have computers wired to the Internet, then they can switch the 
money they had from teacher development and wire the computers to the 
Internet.
  Similarly, if another school is completely wired to the Internet, but 
they do not have enough money to hire new teachers or teacher 
development, they can switch that money.
  Complete flexibility, giving them the opportunity to do what is best. 
No longer will we have a situation, we are here from Washington and we 
are here to help. This gives them flexibility. It provides local 
control. It is a positive step to improving our children's education.
  If a school district does not believe that this is in their best 
interest, then they certainly do not have to apply for it. I suspect 
that we will have 100 school districts promptly apply to this.
  I urge all my colleagues to vote yes on the Tiberi-Castle amendment.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 3 minutes to 
the gentleman from Indiana (Mr. Roemer).
  Mr. ROEMER. Mr. Chairman, I rise in opposition to the amendment 
offered by the gentleman from Ohio (Mr. Tiberi) and do so for three 
reasons.
  One reason is because we are here in this body to legislate and to 
write substantive legislation in order to improve education for 
children, not to respond with bumper sticker slogans like Straight A's 
that make appeals to politics.
  I am afraid that this proposal that we have offered is Straight A's, 
plain and simple. It may be camouflaged. It may be Straight A's ultra-
lite, but it is block grants.
  I encourage my colleagues, I implore my colleagues to read the bill 
that we have worked on for 5 months. The bill we have worked on for 5 
months sends Federal dollars directly to the classroom. Under this 
amendment, one could divert up to 4 percent of the money for 
administrative costs. We want the kids and the teachers getting the 
money.
  Secondly, the priorities are set by the communities, the local 
community, the LEA, not the State, not a State plan, not a Governor, 
our local communities.
  Thirdly, it targets funds to the students that need it, the poor 
students, the title I.
  Lastly, it provides flexibility and local control.
  That is all in the bill. Why do we want to change that for a bumper 
sticker solution like Straight A's.
  The second reason we should defeat this amendment is because it flies 
in the face of accountability. Everything we are trying to do in this 
bill is trying to attach accountability and better results with 
flexibility. But under this amendment, one can have a school fail to 
meet adequate yearly progress for 4 out of 5 years, that is a failing 
school; and one still gets rewarded for that failure.
  One is still able to divert funds to administrative costs or do other 
things with the money instead of improving it for those children that 
are not performing adequately.
  Lastly, the Achilles heel of this bill is teacher quality. That is 
something this Congress is going to have to continue to work on for a 
decade to come. I do not think this bill adequately solves and looks in 
innovative ways to solve that problem. This amendment exacerbates that 
problem even more by allowing one to transfer money out of teacher 
quality as well, too.
  The base bill is strong. It allows transferability of up to 50 
percent of funds as one meets adequate yearly progress. It is flexible. 
It targets money to the poorest kids. It emphasizes teacher quality.
  Do not succumb to the bumper-sticker solution to complicated 
education problems in our communities. Vote down this amendment. Keep 
with the bipartisan bill.
  Mr. TIBERI. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman 
from Michigan (Mr. Upton).
  Mr. UPTON. Mr. Chairman, I rise in strong support of the Tiberi-
Castle amendment.
  I visit a school almost every week in my district; and I talk to a 
lot of teachers, parents, administrators, and, yes, school board 
officials, too. I have always believed in strong local control, that 
the folks at the local level know best what they need to do for their 
students and their teachers and their systems.

[[Page 9000]]

  This is not a mandate. This amendment allows the school district to 
participate if they choose to participate. It is their decision, not 
some boilerplate language that comes down from on high.

                              {time}  1615

  Now, as I have been listening to the debate for the last few minutes, 
I hear a number of Members on the other side of the issue in fact 
saying these words. They talk about we need to look at and define what 
the needs of our school districts are; ``we'' being, I guess, the 
Federal Government. No, the locals need to decide what is best for the 
needs of their school districts, and that is exactly what this 
amendment does. The school districts themselves determine what their 
needs are. They alone decide whether they want to participate or not, 
and whether it be teacher training or the Safe and Drug Free School 
Act, technology training, or all those things.
  No, they cannot steal money from title I, but they can put some of 
this money into title I to expand that program. The flexibility is 
there. If my colleagues are for local control, if they want those 
decisions made at the local level, they need to vote for the Tiberi-
Castle amendment.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield 3\1/2\ minutes 
to the gentleman from New Jersey (Mr. Andrews).
  Mr. ANDREWS. Mr. Chairman, I thank the gentleman from California for 
yielding me this time, and I rise in support of the bipartisan 
agreement to this bill and in respectful opposition to this amendment.
  I understand the rationale of those who support this amendment; that 
local school decision-makers more often than not make good decisions on 
behalf of their students, and I agree with that conclusion. But I 
believe that the flaw in this amendment is its misunderstanding of the 
historical reasons why we have separate Federal programs for 
educational needs. These programs are not borne out of a conclusion 
that Washington knows best. They are borne out of the historical 
reality that very often States and localities do not address, for a 
variety of reasons, particular local needs.
  Two of the areas in this proposal that are of particular concern are 
teacher quality and technology. Many of us have read the recent 
research studies which show that there will be an acute and severe 
teacher shortage in our country in the years to come. Certainly we do 
not have all the answers as to how to address that demand for teacher 
quality, but we do know that very often, teacher quality ranks toward 
the bottom of concerns of local school districts because of other 
political considerations that are understandable. If they want to get 
rid of varsity football, there will be 500 parents at a school board 
meeting; but if they want to get rid of sabbaticals or summer programs 
for the teachers, probably no one will show up.
  In the area of technology, a similar argument applies. If the school 
district decides it wants to get rid of the marching band or the drama 
club, dozens of parents will come out and understandably protest 
against such a decision; but if there is a decision to cut back on the 
software contract or a decision not to upgrade the computers in the 
learning resource center quite as quickly, we very often find no one 
cares.
  So I believe that the importance of defeating this amendment is the 
recognition of the historical reality that Federal programs here are to 
serve a discrete and necessary purpose that still compels and demands 
our support. For that reason, I would ask my colleagues to join with 
the bipartisan consensus of this bill and defeat the amendment.
  Mr. TIBERI. Mr. Chairman, I yield 2 minutes to the gentleman from 
Ohio (Mr. Boehner), the chairman of the Committee on Education and the 
Workforce.
  Mr. BOEHNER. Mr. Chairman, let me thank my colleague from Ohio and 
congratulate him on this amendment, along with his partner, the 
gentleman from Delaware (Mr. Castle).
  Now, our friends across the aisle, who we have worked closely with 
through this whole process, are right, they do not like this, and it is 
why we do not have Straight A's in the bill, that is why we do not have 
50 States, and that is why we do not have seven States. Now we are down 
to 100 school districts in America as a demonstration project for one 
reason, to let innovation shine.
  Now, I think all my colleagues understand that title I is protected 
under this demonstration project. Bilingual education programs are 
protected. All of the targeting of resources going to school districts 
is protected. All of the accountability standards that we have in our 
bill still exist. But what it does say is that for 100 districts in 
America, two in every State, we are going to give them an opportunity, 
if they would like, in exchange for a higher accountability standard, 
to have more increased flexibility.
  Now, think about this for a moment. What happened in American 
industry over the last 15 years? They began to empower their workers, 
and as they began to empower their workers, guess what happened? We got 
all kinds of new productivity in the economy. Every good company in 
America today does everything they can to empower every one of their 
workers.
  What we are saying with this amendment is let us empower 100 school 
districts in America to bring to Washington their best innovative ideas 
about how they can better educate the children in their school district 
in exchange for more flexibility and more accountability.
  I think this is an opportunity to try. This is not the camel's nose 
under the tent. This is an opportunity to say let us see what is 
happening in America. Let us give them an opportunity to see how high 
they can set the bar and to see what they can accomplish. It is a good 
amendment and it deserves our support.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield the balance of 
my time to the gentleman from Oregon (Mr. Wu).
  The CHAIRMAN. The gentleman from Oregon is recognized for 2\1/2\ 
minutes.
  Mr. WU. Mr. Chairman, I want to say this as respectfully as I 
possibly can to all my friends in the Chamber. For the folks who just 
passed a huge, huge mandate on local schools, mandatory national 
testing, I find this flip-flop of positions absolutely breathtaking. It 
is one of the striking things we can do in this Chamber.
  We debated block grants in the First Congressional District of 
Oregon, and the decision was pretty darn clear. Not only do Oregonians, 
and I think most Americans, want some accountability for public dollars 
spent for public purposes, that is the least that we can do for Federal 
funds that are spent for identifiable purposes in this bill.
  Also, I think Oregonians and most Americans can recognize that block 
grants are step one of a cynical two-step process. First, you muddy up 
the waters so that you cannot identify where the money is going 
anymore; and then the second step is you cut. You cut the support. It 
is like stretching out a chicken's neck. That is step one. And then the 
chop comes down.
  Step two. It is a cynical two-step process to cut Federal support for 
education. That was the debate we had in Oregon. The perspective I have 
on this prevailed in that debate, and I hope it does today.
  I urge opposition respectfully to the gentleman's amendment.
  Mr. TIBERI. Mr. Chairman, I yield myself the balance of my time.
  The CHAIRMAN. The gentleman from Ohio is recognized for 2\1/2\ 
minutes.
  Mr. TIBERI. Mr. Chairman, in Ohio, we have 611 school districts. 
Within my Congressional District, I have urban, suburban, and rural 
public school districts. I know of at least one school district, the 
one I happened to graduate from, that would not be eligible to even 
apply for this program.
  The point of the matter is, out of those rural, suburban, and urban 
school districts, those superintendents and school board members of 
those public schools within my district have told me what their 
problems are, and their

[[Page 9001]]

problems with respect to Federal funding are, in many cases, quite 
different. What we are doing today with this amendment, Mr. Chairman, 
is giving them the elected school boards in public schools throughout 
America, the ability to decide how to spend the dollars that they send 
to Washington, D.C.
  I urge this House to support the amendment.
  Mr. PETRI. Mr. Chairman, I rise in support of the Tiberi-Castle 
amendment, which would place academic results instead of rules and 
regulations at the center of federal education programs.
  Since enactment of the Elementary and Secondary Education Act 36 
years ago, our approach to helping schools has been very inflexible and 
heavy-handed. We have set strict regulations as to what communities can 
and cannot do with federal education dollars, and what priorities they 
have to set.
  It has become clear that this approach hasn't worked. After all the 
billions of dollars spent by the federal government since 1965, we 
haven't seen a narrowing of the rich-poor educational gap, schools are 
neither safe nor drug-free, and it seems that much of the 
``professional development'' money is wasted. It's far past time to try 
another approach.
  I have strongly supported previous proposals to give states and 
localities more flexibility in the use of federal funds, in return for 
real accountability, such as the ``Straight A's'' bill in the last 
Congress and the President's ``Charter States'' proposal in the 
original version of H.R. 1.
  I think the Tiberi-Castle amendment is also a step forward in this 
regard.
  Building on the ``Local A's'' provision in the Committee-reported 
bill, up to 100 school districts can enter into performance agreements 
with the Secretary of Education and consolidate programs, freeing 
themselves from requirements, regulations, and paperwork associated 
with many federal programs, and allocating resources to more closely 
fit local needs.
  Participation is completely voluntary, and no school district will 
have their federal funding reduced by one penny for participating.
  This amendment will apply the central premise of charter schools--
freedom in return for academic results--to local educational agencies, 
and allow them to spend more time and resources on teaching and less on 
meeting requirements of various federal programs.
  I urge my colleagues to support this amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Ohio (Mr. Tiberi).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.


                             Recorded Vote

  Mr. GEORGE MILLER of California. Mr. Chairman, I demand a recorded 
vote.
  A recorded vote was ordered.
  The CHAIRMAN. The Chair announces that, pursuant to clause 6 of rule 
XVIII, proceedings will resume on amendment No. 8 offered by the 
gentleman from Louisiana (Mr. Vitter) immediately after this vote, and 
that a vote on amendment No. 8, if ordered, will be reduced to 5 
minutes.
  The vote was taken by electronic device, and there were--ayes 217, 
noes 209, not voting 6, as follows:

                             [Roll No. 132]

                               AYES--217

     Aderholt
     Akin
     Armey
     Bachus
     Baker
     Ballenger
     Barr
     Bartlett
     Barton
     Bass
     Bereuter
     Biggert
     Bilirakis
     Blunt
     Boehner
     Bonilla
     Bono
     Brady (TX)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Castle
     Chabot
     Chambliss
     Coble
     Collins
     Combest
     Cooksey
     Cox
     Crane
     Crenshaw
     Culberson
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeLay
     DeMint
     Diaz-Balart
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Everett
     Ferguson
     Flake
     Fletcher
     Foley
     Fossella
     Frelinghuysen
     Gallegly
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Goode
     Goodlatte
     Goss
     Graham
     Graves
     Green (WI)
     Greenwood
     Grucci
     Gutknecht
     Hall (TX)
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hilleary
     Hobson
     Hoekstra
     Horn
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Isakson
     Issa
     Istook
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     Kerns
     King (NY)
     Kingston
     Kirk
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas (OK)
     Manzullo
     McCrery
     McHugh
     McInnis
     McKeon
     Mica
     Miller (FL)
     Miller, Gary
     Moran (KS)
     Myrick
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Paul
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reynolds
     Riley
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Scarborough
     Schaffer
     Schrock
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Souder
     Spence
     Stearns
     Stump
     Sununu
     Sweeney
     Tancredo
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Thune
     Tiahrt
     Tiberi
     Toomey
     Traficant
     Upton
     Vitter
     Walden
     Walsh
     Wamp
     Watkins
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson
     Wolf
     Young (AK)
     Young (FL)

                               NOES--209

     Ackerman
     Allen
     Andrews
     Baca
     Baird
     Baldacci
     Baldwin
     Barcia
     Barrett
     Becerra
     Bentsen
     Berkley
     Berman
     Berry
     Bishop
     Blagojevich
     Blumenauer
     Boehlert
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (FL)
     Brown (OH)
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Clay
     Clayton
     Clement
     Clyburn
     Condit
     Conyers
     Costello
     Coyne
     Cramer
     Crowley
     Cummings
     Davis (CA)
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dicks
     Dingell
     Doggett
     Dooley
     Doyle
     Edwards
     Engel
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Filner
     Ford
     Frost
     Gephardt
     Gilman
     Gonzalez
     Gordon
     Green (TX)
     Gutierrez
     Hall (OH)
     Harman
     Hastings (FL)
     Hill
     Hilliard
     Hinchey
     Hinojosa
     Hoeffel
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson (CT)
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind (WI)
     Kleczka
     Kucinich
     LaFalce
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Lucas (KY)
     Luther
     Maloney (CT)
     Maloney (NY)
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Millender-McDonald
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (VA)
     Morella
     Murtha
     Nadler
     Napolitano
     Neal
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Phelps
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rivers
     Rodriguez
     Roemer
     Ross
     Rothman
     Roybal-Allard
     Rush
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Schakowsky
     Schiff
     Scott
     Serrano
     Sherman
     Shows
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stark
     Stenholm
     Strickland
     Stupak
     Tanner
     Tauscher
     Thompson (CA)
     Thompson (MS)
     Thurman
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Velazquez
     Visclosky
     Waters
     Watt (NC)
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                             NOT VOTING--6

     Abercrombie
     Cubin
     Frank
     Granger
     Hansen
     Moakley

                              {time}  1646

  Messrs. GORDON, LARSEN of Washington, and SCHIFF changed their vote 
from ``aye'' to ``no.''
  Mr. HORN changed his vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.

                          ____________________