[House Report 106-394]
[From the U.S. Government Publishing Office]



106th Congress                                            Rept. 106-394
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1
_______________________________________________________________________

                                     



 
                      STUDENT RESULTS ACT OF 1999

                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                      EDUCATION AND THE WORKFORCE
                        HOUSE OF REPRESENTATIVES

                                   on

                                 H.R. 2

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




                October 18, 1999.--Ordered to be printed




106th Congress                                            Rept. 106-394
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1
_______________________________________________________________________

                                     




                      STUDENT RESULTS ACT OF 1999

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                      EDUCATION AND THE WORKFORCE

                        HOUSE OF REPRESENTATIVES

                                   on

                                 H.R. 2

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




                October 18, 1999.--Ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
69-148                     WASHINGTON : 1999

                                                                       
106th Congress                                            Rept. 106-394
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================




                      STUDENT RESULTS ACT OF 1999
                                _______


October 18, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Goodling, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                         [To accompany H.R. 2]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 2) to send more dollars to the 
classroom and for certain other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Student Results Act 
of 1999''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.

                        TITLE I--STUDENT RESULTS

                         Part A--Basic Program

Sec. 101. Low-achieving children meet high standards.
Sec. 102. Purposes and intent.
Sec. 103. Authorization of appropriations.
Sec. 104. Reservation and allocation.
Sec. 105. State plans.
Sec. 106. Local educational agency plans.
Sec. 107. Eligible school attendance areas.
Sec. 108. Schoolwide programs.
Sec. 109. Targeted assistance schools.
Sec. 110. School choice.
Sec. 111. Assessment and local educational agency and school 
improvement.
Sec. 112. State assistance for school support and improvement.
Sec. 113. Academic achievement awards program.
Sec. 114. Parental involvement changes.
Sec. 115. Qualifications for teachers and paraprofessionals.
Sec. 116. Professional development.
Sec. 117. Participation of children enrolled in private schools.
Sec. 118. Coordination requirements.
Sec. 119. Grants for the outlying areas and the Secretary of the 
Interior.
Sec. 120. Amounts for grants.
Sec. 121. Basic grants to local educational agencies.
Sec. 122. Concentration grants.
Sec. 123. Targeted grants.
Sec. 124. Special allocation procedures.
Sec. 125. Secular, neutral, and nonideological.

                Part B--Education of Migratory Children

Sec. 131. State allocations.
Sec. 132. State applications; services.
Sec. 133. Authorized activities.
Sec. 134. Coordination of migrant education activities.

                 Part C--Neglected or Delinquent Youth

Sec. 141. Neglected or delinquent youth.
Sec. 142. Findings.
Sec. 143. Allocation of funds.
Sec. 144. State plan and State agency applications.
Sec. 145. Use of funds.
Sec. 146. Purpose.
Sec. 147. Transition services.
Sec. 148. Programs operated by local educational agencies.
Sec. 149. Local educational agency applications.
Sec. 150. Uses of funds.
Sec. 151. Program requirements.
Sec. 152. Accountability.
Sec. 153. Program evaluations.

                       Part D--General Provisions

Sec. 161. General provisions.

                  Part E--Comprehensive School Reform

Sec. 171. Comprehensive school reform.

      TITLE II--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

Sec. 201. Magnet schools assistance.
Sec. 202. Continuation of awards.

                TITLE III--TEACHER LIABILITY PROTECTION

Sec. 301. Teacher liability protection.

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

       Subtitle A--Elementary and Secondary Education Act of 1965

Sec. 401. Amendments.

                   Part B--Native Hawaiian Education

Sec. 402. Native Hawaiian education.

                    Part C--Alaska Native Education

Sec. 403. Alaska Native education.

       Subtitle B--Amendments to the Education Amendments of 1978

Sec. 410. Amendments to the Educations Amendments of 1978.

          Subtitle C--Tribally Controlled Schools Act of 1988

Sec. 420. Tribally controlled schools.

                 TITLE V--GIFTED AND TALENTED CHILDREN

Sec. 501. Amendment to esea relating to gifted and talented children.

                  TITLE VI--RURAL EDUCATION ASSISTANCE

Sec. 601. Rural education.

    TITLE VII--MCKINNEY HOMELESS EDUCATION IMPROVEMENTS ACT OF 1999

Sec. 701. Short title.
Sec. 702. Findings.
Sec. 703. Purpose.
Sec. 704. Education for homeless children and youth.

               TITLE VIII--SCHOOLWIDE PROGRAM ADJUSTMENT

Sec. 801. Schoolwide funds.

SEC. 2. REFERENCES.

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

                        TITLE I--STUDENT RESULTS

                         PART A--BASIC PROGRAM

SEC. 101. LOW-ACHIEVING CHILDREN MEET HIGH STANDARDS.

  The heading for title I is amended by striking ``DISADVANTAGED'' and 
inserting ``LOW-ACHIEVING''.

SEC. 102. PURPOSES AND INTENT.

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

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

  ``(a) Findings.--Congress finds the following:
          ``(1) 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 standards.
          ``(2) High-poverty schools are much more likely to be 
        identified as failing to meet State 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.
          ``(3) 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.
          ``(4) Congress and the public would benefit from additional 
        data in order to evaluate the efficacy of the changes made to 
        this title in the Improving America's Schools Act of 1994.
          ``(5) States, local educational agencies, and schools should 
        be given as much flexibility as possible in exchange for 
        greater accountability for improving student achievement.
          ``(6) Programs funded under this part must demonstrate 
        increased effectiveness in improving schools in order to ensure 
        all children achieve to high standards.
  ``(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 and their 
        parents who are in need of family literacy services.
          ``(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 must 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 should 
        be held accountable for improving the academic achievement of 
        all students, and for identifying and turning around low-
        performing schools.
          ``(5) Federal education assistance is intended not only to 
        increase pupil achievement overall, but also more specifically 
        and importantly, to help ensure that all pupils, especially the 
        disadvantaged, meet challenging standards for curriculum 
        content and pupil performance. It can only be determined if 
        schools, local educational agencies, and States, are reaching 
        this goal if pupil achievement results are reported 
        specifically by disadvantaged and minority status.''.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

  (a) Local Educational Agency Grants.--Subsection (a) of section 1002 
(20 U.S.C. 6302(a)) is amended by striking ``$7,400,000,000 for fiscal 
year 1995'' and inserting ``$8,350,000,000 for fiscal year 2000''.
  (b) Education of Migratory Children.--Subsection (c) of section 1002 
(20 U.S.C. 6302(c)) is amended by striking ``$310,000,000 for fiscal 
year 1995'' and inserting ``$400,000,000 for fiscal year 2000''.
  (c) Prevention and Intervention Programs for Youth Who Are Neglected, 
Delinquent, or at Risk of Dropping Out.--Subsection (d) of section 1002 
(20 U.S.C. 6302(d)) is amended by striking ``$40,000,000 for fiscal 
year 1995'' and inserting ``$50,000,000 for fiscal year 2000''.
  (d) Capital Expenses.--Subsection (e) of section 1002 (20 U.S.C. 
6302(e)) is amended to read as follows:
  ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $15,000,000 for fiscal 
year 2000, $15,000,000 for fiscal year 2001, and $5,000,000 for fiscal 
year 2002.''.
  (e) Additional Assistance.--Subsection (f) of section 1002 is amended 
to read as follows:
  ``(f) School Improvement.--Each State may reserve for the purpose of 
carrying out its duties under section 1116 and 1117, the greater of one 
half of 1 percent of the amount allocated under this part, or 
$200,000.''.
  (f) State Administration.--Section 1002 is amended by adding at the 
end the following:
  ``(h) State Administration.--
          ``(1) State reservation.--Each State may reserve, from the 
        grants 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 parts A, C, and D, for fiscal year 1999, or 
        $400,000 ($50,000 for each outlying area), 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 2000 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 grants received by each State for that fiscal 
        year under parts A, C, and D of this title.
          ``(3) Special rule.--The amount allocated to each State under 
        this subsection may not exceed the amount of State funds 
        expended by the State educational agency to administer 
        elementary and secondary education programs in such State.''.

SEC. 104. RESERVATION AND ALLOCATION.

  Section 1003 (20 U.S.C. 6303) is repealed.

SEC. 105. STATE PLANS.

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

``SEC. 1111. STATE PLANS.

  ``(a) Plans Required.--
          ``(1) In general.--Any State desiring to receive a grant 
        under this part shall submit to the Secretary a plan, developed 
        in consultation with local educational agencies, teachers, 
        pupil services personnel, administrators (including 
        administrators of programs described in other parts of this 
        title), other staff, and parents, that satisfies the 
        requirements of this section and that is coordinated with other 
        programs under this Act, the Individuals with Disabilities 
        Education Act, the Carl D. Perkins Vocational and Technical 
        Education Act of 1998, and the Head Start Act.
          ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 14302.
  ``(b) Standards, Assessments, and Accountability.--
          ``(1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has adopted challenging content 
        standards and challenging student performance standards that 
        will be used by the State, its local educational agencies, and 
        its schools to carry out this part, except that a State shall 
        not be required to submit such standards to the Secretary.
          ``(B) The standards required by subparagraph (A) shall be the 
        same standards that the State applies to all schools and 
        children in the State.
          ``(C) The State shall have such standards for elementary and 
        secondary school children served under this part in subjects 
        determined by the State, but including at least mathematics and 
        reading or language arts, which shall include the same 
        knowledge, skills, and levels of performance expected of all 
        children.
          ``(D) Standards under this paragraph shall include--
                  ``(i) challenging content standards in academic 
                subjects that--
                          ``(I) specify what children are expected to 
                        know and be able to do;
                          ``(II) contain coherent and rigorous content; 
                        and
                          ``(III) encourage the teaching of advanced 
                        skills;
                  ``(ii) challenging student performance standards 
                that--
                          ``(I) are aligned with the State's content 
                        standards;
                          ``(II) describe two levels of high 
                        performance, proficient and advanced, that 
                        determine how well children are mastering the 
                        material in the State content standards; and
                          ``(III) describe a third level of 
                        performance, 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 standards, the State plan shall 
        describe a strategy for ensuring that such students are taught 
        the same knowledge and skills and held to the same expectations 
        as are all children.
          ``(2) Adequate yearly progress.--
                  ``(A) In general.--Each State plan shall demonstrate, 
                based on assessments described under paragraph (4), 
                what constitutes adequate yearly progress of--
                          ``(i) any school served under this part 
                        toward enabling all children to meet the 
                        State's challenging student performance 
                        standards;
                          ``(ii) any local educational agency that 
                        received funds under this part toward enabling 
                        all children in schools receiving assistance 
                        under this part to meet the State's challenging 
                        student performance standards; and
                          ``(iii) the State in enabling all children in 
                        schools receiving assistance under this part to 
                        meet the State's challenging student 
                        performance standards.
                  ``(B) Definition.--Adequate yearly progress shall be 
                defined in a manner that--
                          ``(i) applies the same high standards of 
                        academic performance to all students in the 
                        State;
                          ``(ii) takes into account the progress of all 
                        students in the State and in each local 
                        educational agency and school served under 
                        section 1114 or 1115;
                          ``(iii) uses the State challenging content 
                        and challenging student performance standards 
                        and assessments described in paragraphs (1) and 
                        (4);
                          ``(iv) compares separately, within each 
                        State, local educational agency, and school, 
                        the performance and progress of students by 
                        gender, each major ethnic and racial group, by 
                        English proficiency status, by migrant status, 
                        by students with disabilities as compared to 
                        nondisabled students, and by economically 
                        disadvantaged students as compared to students 
                        who are not economically disadvantaged (except 
                        that such disaggregation shall not be required 
                        in a case in which the number of students in a 
                        category is insufficient to yield statistically 
                        reliable information or the results would 
                        reveal individually identifiable information 
                        about an individual student);
                          ``(v) compares the proportions of students at 
                        the `basic', `proficient', and `advanced' 
                        levels of performance with the proportions of 
                        students at each of the 3 levels in the same 
                        grade in the previous school year;
                          ``(vi) at the State's discretion, may also 
                        include other academic measures such as 
                        promotion, completion of college preparatory 
                        courses, and high school completion, 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;
                          ``(vii) includes annual numerical goals for 
                        improving the performance of all groups 
                        specified in clause (iv) and narrowing gaps in 
                        performance between these groups; and
                          ``(viii) includes a timeline for ensuring 
                        that each group of students described in clause 
                        (iv) meets or exceeds the State's proficient 
                        level of performance on each State assessment 
                        used for the purposes of section 1111 and 
                        section 1116 within 10 years from the date of 
                        enactment of the Student Results Act of 1999.
                  ``(C) Annual improvement for states.--For a State to 
                make adequate yearly progress under subparagraph 
                (A)(iii), not less than 90 percent of the local 
                educational agencies within its jurisdiction shall meet 
                the State's criteria for adequate yearly progress.
                  ``(D) Annual improvement for local educational 
                agencies.--For a local educational agency to make 
                adequate yearly progress under subparagraph (A)(ii), 
                not less than 90 percent of the schools within its 
                jurisdiction must meet the State's criteria for 
                adequate yearly progress.
                  ``(E) Annual improvement for schools.--For a school 
                to make adequate yearly progress under subparagraph 
                (A)(i), not less than 90 percent of each group of 
                students described in subparagraph (A)(iv) who are 
                enrolled in such school are required to take the 
                assessments consistent with section 612(a)(17)(A) of 
                the Individuals with Disabilities Education Act and 
                paragraph (4)(F)(iv) on which adequate yearly progress 
                is based.
                  ``(F) Public notice and comment.--Each State shall 
                ensure that in developing its plan for adequate yearly 
                progress, 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.
                  ``(G) Review.--The Secretary shall review the 
                information from States on the adequate yearly progress 
                of schools and local educational agencies required 
                under subparagraphs (A) and (B) for the purpose of 
                determining State and local compliance with section 
                1116.
          ``(3) State authority.--If a State educational agency 
        provides evidence, which is satisfactory to the Secretary, that 
        neither the State educational agency nor any other State 
        government official, agency, or entity has sufficient 
        authority, under State law, to adopt curriculum content and 
        student performance standards, and assessments aligned with 
        such standards, which will be applicable to all students 
        enrolled in the State's public schools, then the State 
        educational agency may meet the requirements of this subsection 
        by--
                  ``(A) adopting standards and 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 performance standards, and 
                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) Assessments.--Each State plan shall demonstrate that 
        the State has implemented a set of high-quality, yearly student 
        assessments that include, at a minimum, assessments in 
        mathematics and reading or language arts, that will be used, 
        starting not later than the 2000-2001 school year, as the 
        primary means of determining the yearly performance of each 
        local educational agency and school served under this title in 
        enabling all children served under this part to meet the 
        State's challenging student performance standards. Such 
        assessments shall--
                  ``(A) be the same assessments used to measure the 
                performance of all children, if the State measures the 
                performance of all children;
                  ``(B) be aligned with the State's challenging content 
                and student performance standards and provide coherent 
                information about student attainment of such standards;
                  ``(C) be used for purposes for which such assessments 
                are valid and reliable, and be consistent with 
                relevant, nationally recognized professional and 
                technical standards for such assessments;
                  ``(D) measure the proficiency of students in the 
                academic subjects in which a State has adopted 
                challenging content and student performance standards 
                and be administered not less than one or more times 
                during--
                          ``(i) grades 3 through 5;
                          ``(ii) grades 6 through 9; and
                          ``(iii) grades 10 through 12;
                  ``(E) involve multiple up-to-date measures of student 
                performance, including measures that assess higher 
                order thinking skills and understanding;
                  ``(F) 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 necessary to measure 
                        the achievement of such students relative to 
                        State content and State student performance 
                        standards;
                          ``(iii) the inclusion of limited English 
                        proficient students who shall be assessed, to 
                        the extent practicable, in the language and 
                        form most likely to yield accurate and reliable 
                        information on what such students know and can 
                        do in content areas;
                          ``(iv) notwithstanding clause (iii), the 
                        assessment (using tests written in English) of 
                        reading or language arts of any student who has 
                        attended school in the United States (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 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; and
                  ``(G) include students who have attended schools in a 
                local educational agency for a full academic year but 
                have not attended a single school for a full academic 
                year, except that the performance of students who have 
                attended more than one school in the local educational 
                agency in any academic year shall be used only in 
                determining the progress of the local educational 
                agency;
                  ``(H) provide individual student reports, which 
                include assessment scores, or other information on the 
                attainment of student performance standards; and
                  ``(I) enable results to be disaggregated within each 
                State, local educational agency, and school by gender, 
                by each major racial and ethnic group, by English 
                proficiency status, 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.--
                  ``(A) In general.--Assessment measures that do not 
                meet the requirements of paragraph (4)(C) may be 
                included as one of the multiple measures, if a State 
                includes in the State plan information regarding the 
                State's efforts to validate such measures.
                  ``(B) Student proficiency in grades k-2.--States may 
                measure the proficiency of students in the academic 
                subjects in which a State has adopted challenging 
                content and student performance standards one or more 
                times during grades K-2.
          ``(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 assessments are not available and are 
        needed. The State shall make every effort to develop such 
        assessments and may request assistance from the Secretary if 
        linguistically accessible assessment measures are needed. Upon 
        request, the Secretary shall assist with the identification of 
        appropriate assessment measures in the needed languages, but 
        shall not mandate a specific assessment or mode of instruction.
          ``(7) Assessment development.--A State shall develop, and 
        implement State assessments that are aligned to challenging 
        State content standards that include, at a minimum, mathematics 
        and reading or language arts by the 2000-2001 school year.
          ``(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; and
                  ``(B) such other factors the State considers 
                appropriate to provide students an opportunity to 
                achieve the knowledge and skills described in the 
                challenging content standards adopted by the State.
  ``(c) Other Provisions To Support Teaching and Learning.--Each State 
plan shall contain assurances that--
          ``(1) the State educational agency will work with other 
        agencies, including educational service agencies or other local 
        consortia, and institutions to provide technical assistance to 
        local educational agencies and schools to carry out the State 
        educational agency's responsibilities under this part, 
        including technical assistance in providing professional 
        development under section 1119 and technical assistance under 
        section 1117; and
          ``(2)(A) where educational service agencies exist, the State 
        educational agency will consider providing professional 
        development and technical assistance through such agencies; and
          ``(B) where educational service agencies do not exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through other cooperative 
        agreements such as through a consortium of local educational 
        agencies;
          ``(3) the State educational agency will notify local 
        educational agencies and the public of the content and student 
        performance standards and assessments developed under this 
        section, and of the authority to operate schoolwide programs, 
        and will fulfill the State educational agency's 
        responsibilities regarding local educational agency improvement 
        and school improvement under section 1116, including such 
        corrective actions as are necessary;
          ``(4) the State educational agency will provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual schools participating in a program 
        assisted under this part;
          ``(5) the State educational agency will inform the Secretary 
        and the public of how Federal laws, if at all, hinder the 
        ability of States to hold local educational agencies and 
        schools accountable for student academic performance;
          ``(6) 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;
          ``(7) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that schools can easily 
        consolidate funds from other Federal, State, and local sources 
        for schoolwide programs under section 1114;
          ``(8) the State educational agency has involved the committee 
        of practitioners established under section 1603(b) in 
        developing the plan and monitoring its implementation; and
          ``(9) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under title XIV and, if the State 
        is an Ed-Flex Partnership State, waivers under the Education 
        Flexibility Partnership Act of 1999 (30 U.S.C. 589a et seq.).
  ``(d) Peer Review and Secretarial Approval.--
          ``(1) Secretarial duties.--The Secretary shall--
                  ``(A) establish a peer review process to assist in 
                the review of State plans;
                  ``(B) approve a State plan after its submission 
                unless the Secretary determines that the plan does not 
                meet the requirements of this section;
                  ``(C) 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;
                  ``(D) not decline to approve a State's plan before--
                          ``(i) offering the State an opportunity to 
                        revise its plan;
                          ``(ii) providing technical assistance in 
                        order to assist the State to meet the 
                        requirements under subsections (a), (b), and 
                        (c); and
                          ``(iii) providing a hearing;
                  ``(E) have the authority to disapprove a State plan 
                for not meeting the requirements of this part, but 
                shall not have the authority to require a State, as a 
                condition of approval of the State plan, to include in, 
                or delete from, such plan one or more specific elements 
                of the State's content standards or to use specific 
                assessment instruments or items; and
          ``(2) State revisions.--States shall revise their plans if 
        necessary to satisfy the requirements of this section. Revised 
        plans shall be submitted to the Secretary for approval not 
        later than 1 year after the date of the enactment of the 
        Student Results Act of 1999.
  ``(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 Student Results Act of 1999;
                  ``(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 State content 
        standards and State student performance standards, new 
        assessments, or a new definition of adequate yearly progress, 
        the State shall submit such information to the Secretary.
  ``(f) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal Government 
to mandate, direct, or control a State, local educational agency, or 
school's specific instructional content or student performance 
standards and assessments, curriculum, or program of instruction, as a 
condition of eligibility to receive funds under this part.
  ``(g) Penalties.--
          ``(1) In general.--If a State fails to meet the statutory 
        deadlines for demonstrating that it has in place challenging 
        content standards and student performance standards and 
        assessments, and a system for measuring and monitoring adequate 
        yearly progress, the State shall be ineligible to receive any 
        administrative funds under section 1002(h) that exceed the 
        amount received by the State for such purpose in the previous 
        year.
          ``(2) Additional funds.--Based on the extent to which such 
        content standards, performance standards, assessments, and 
        monitoring of adequate yearly progress, are not in place, 
        additional administrative funds shall be withheld in such 
        amount as the Secretary determines appropriate, except that for 
        each additional year that the State fails to comply with such 
        requirements, the Secretary shall withhold not less than \1/5\ 
        of the amount the State receives for administrative expenses 
        under section 1002(h).
          ``(3) Waiver.--Notwithstanding title XIV of this Act and the 
        Education Flexibility Partnership Act or any other provision of 
        law, a waiver shall not be granted except that a State may 
        request a 1-time, 1-year waiver to meet the requirements of 
        this section.
  ``(h) School Reports.--
          ``(1) In general.--
                  ``(A) Annual report.--Except as provided in 
                subparagraph (C), not later than the beginning of the 
                2001-2002 school year, a State that receives assistance 
                under this Act shall prepare and disseminate an annual 
                report on all schools that receive funds under this 
                part. States and local educational agencies may issue 
                report cards under this section only for local 
                educational agencies and schools receiving funds under 
                this part, except that if a State or local educational 
                agency issues a report card for all students, the State 
                or local educational agency may include the information 
                under this section as part of such report card.
                  ``(B) Implementation.--The State shall ensure the 
                dissemination of this information at all levels. Such 
                information 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.--In the event the State 
                does not include such information through a report 
                card, the State shall, not later than the beginning of 
                the 2001-2002 school year, publicly report the 
                information described in paragraph (2) through other 
                public means, such as posting on the Internet, 
                distribution to the media, and distribution through 
                public agencies, for all schools that receive funds 
                under this part.
          ``(2) Content of annual state reports.--
                  ``(A) Required information.--The State shall, at a 
                minimum, include in the annual State reports 
                information for the State on each local educational 
                agency and school receiving funds under this part 
                regarding--
                          ``(i) student performance on statewide 
                        assessments for the current and preceding years 
                        in at least reading or language arts and 
                        mathematics, including--
                                  ``(I) a comparison of the proportions 
                                of students who performed at `basic', 
                                `proficient', and `advanced' levels in 
                                each subject area, for each grade level 
                                at which assessments are required under 
                                this part, with proportions in each of 
                                the same 3 categories at the same grade 
                                levels in the previous school year; and
                                  ``(II) a statement of the percentage 
                                of students not tested and a listing of 
                                categories of the reasons why they were 
                                not tested;
                          ``(ii) retention in grade, completion of 
                        advanced placement courses, and 4-year 
                        graduation rates;
                          ``(iii) the professional qualifications of 
                        teachers in the aggregate, including the 
                        percentage of teachers teaching with emergency 
                        or provisional credentials, and the percentage 
                        of class sections not taught by fully qualified 
                        teachers; and
                          ``(iv) the professional qualifications of 
                        paraprofessionals, the number of 
                        paraprofessionals in the aggregate and the 
                        ratio of paraprofessionals to teachers in the 
                        classroom.
                  ``(B) Student data.--Student data in each report 
                shall contain disaggregated results for the following 
                categories:
                          ``(i) gender;
                          ``(ii) racial and ethnic group;
                          ``(iii) migrant status;
                          ``(iv) students with disabilities, as 
                        compared to students who are not disabled;
                          ``(v) economically disadvantaged students, as 
                        compared to students who are not economically 
                        disadvantaged; and
                          ``(vi) students with limited English 
                        proficiency, as compared to students who are 
                        proficient in English.
                  ``(C) Optional information.--A State may include in 
                its report any other information it determines 
                appropriate to reflect school quality and school 
                achievement, including information on average class 
                size by grade level, and information on school safety, 
                such as the incidence of school violence and drug and 
                alcohol abuse, and the incidence of student suspensions 
                and expulsions.
          ``(3) Content of local educational agencies reports.--
                  ``(A) Minimum requirements.--The State shall ensure 
                that each local educational agency collects appropriate 
                data and includes in its annual report for each school 
                that receives funds under this part, at a minimum--
                          ``(i) the information described in paragraphs 
                        (2)(A) and (2)(B) for each local educational 
                        agency and school--
                                  ``(I) in the case of a local 
                                educational agency--
                                          ``(aa) the number and 
                                        percentage of schools 
                                        identified for school 
                                        improvement, including schools 
                                        identified under section 
                                        1116(c) of this Act;
                                          ``(bb) information that shows 
                                        how students in its schools 
                                        perform on the statewide 
                                        assessment compared to students 
                                        in the State as a whole;
                                  ``(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 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.--In the event the local 
                educational agency does not include such information 
                through a report card, the local educational agency 
                shall, not later than the beginning of the 2001-2002 
                school year, publicly report the information described 
                in paragraph (3) through other public means, such as 
                posting on the Internet, distribution to the media, and 
                distribution through public agencies, only for schools 
                that receive funds under this part, except that if a 
                local educational agency issues a report card for all 
                students, the local educational agency may include the 
                information under this section as part of such report.
          ``(4) Dissemination and accessibility of reports.--
                  ``(A) State reports.--State annual reports under 
                paragraph (2) shall be disseminated to all schools and 
                local educational agencies in the State, and made 
                broadly available to the public through means such as 
                posting on the Internet, distribution to the media, and 
                distribution through public agencies.
                  ``(B) Local educational agency reports.--Local 
                educational agency reports under paragraph (3) shall be 
                disseminated to all schools receiving funds under this 
                part, in the school district and to all parents of 
                students attending these schools and made broadly 
                available to the public through means such as posting 
                on the Internet, distribution to the media, and 
                distribution through public agencies.
          ``(5) Parents Right-to-Know.--
                  ``(A) Qualifications.--A local educational agency 
                that receives funds under this part shall provide, upon 
                request, in an understandable and uniform format, to 
                any parent of a student attending any school receiving 
                funds under this part, 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 the qualifications of 
                        such paraprofessional.
                  ``(B) Additional information.--In addition to the 
                information which parents may request under 
                subparagraph (A), and the information provided in 
                subsection (c), a school which receives funds under 
                this part shall provide to each individual parent or 
                guardian--
                          ``(i) information on the level of performance 
                        of the individual student for whom they are the 
                        parent or guardian in each of the State 
                        assessments as required under this part; and
                          ``(ii) timely notice that the student for 
                        whom they are the parent or guardian has been 
                        assigned or has been taught for 2 or more 
                        consecutive weeks by a substitute teacher or by 
                        a teacher not fully qualified.
          ``(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. 106. LOCAL EDUCATIONAL AGENCY PLANS.

  (a) Subgrants.--Paragraph (1) of section 1112(a) (20 U.S.C. 
6312(a)(1)) is amended by striking ``the Goals 2000: Educate America 
Act'' and all that follows and inserting the following: ``the 
Individuals with Disabilities Education Act, the Carl D. Perkins 
Vocational and Technical Education Act of 1998, the Head Start Act, and 
other Acts, as appropriate.''.
  (b) Plan Provisions.--Subsection (b) of section 1112 (20 U.S.C. 
6312(b)) is amended--
          (1) by striking ``Each'' in the matter preceding paragraph 
        (1) and inserting ``In order to help low-achieving children 
        achieve to high standards, each'';
          (2) in paragraph (1)--
                  (A) by striking ``part'' each place it appears and 
                inserting ``title'';
                  (B) in subparagraph (B), by inserting ``low-
                achieving'' before ``children'';
                  (C) by striking ``and'' at the end of subparagraph 
                (B);
                  (D) by inserting ``and'' at the end of subparagraph 
                (C); and
                  (E) by adding at the end the following new 
                subparagraph:
                  ``(D) determine the literacy levels of first graders 
                and their need for interventions, and a description of 
                how the local educational agency will ensure that any 
                such assessments--
                          ``(i) are developmentally appropriate; and
                          ``(ii) use multiple measures to provide 
                        information about the variety of skills that 
                        scientifically based research has identified as 
                        leading to early acquisition of reading 
                        skills.'';
          (3) in paragraph (4)--
                  (A) in subparagraph (A), by striking ``, and school-
                to-work transition programs''; and
                  (B) in subparagraph (B), by striking ``under part C 
                or who were formerly eligible for services under part C 
                in the two-year period preceding the date of the 
                enactment of the Improving America's School Act of 
                1994, neglected or delinquent youth and youth at risk 
                of dropping out'' and inserting ``under part C, 
                neglected or delinquent youth, Indian children served 
                under title IX,'';
          (4) in paragraph (7), by striking ``eligible homeless 
        children'' and inserting ``homeless children'';
          (5) by striking the period at the end of paragraph (9) and 
        inserting ``; and''; and
          (6) by adding at the end the following new paragraphs:
          ``(10) a description of the actions the local educational 
        agency will take to assist its low-performing schools, 
        including schools identified under section 1116 as in need of 
        improvement; and
          ``(11) a description of how the agency will promote the use 
        of extended learning time, such as an extended school year and 
        before and after school and summer programs.''.
  (c) Assurances.--Subsection (c) of section 1112 (20 U.S.C. 6312(c)) 
is amended to read as follows:
  ``(c) Assurances.--
          ``(1) In general.--Each local educational agency plan shall 
        provide assurances that the local educational agency will--
                  ``(A) inform eligible schools and parents of 
                schoolwide project 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 performance standards;
                  ``(D) fulfill such agency's school improvement 
                responsibilities under section 1116, including taking 
                corrective actions under section 1116(b)(9);
                  ``(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 performance 
                standards established under section 641A(a) of the Head 
                Start Act;
                  ``(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 XIV of this Act, and if the 
                State is an Ed-Flex Partnership State, 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) upon publication, shall disseminate to local 
                educational agencies the Head Start performance 
                standards as in effect under section 641A(a) of the 
                Head Start Act, and such agencies affected by such 
                subparagraph shall plan for the implementation of such 
                subparagraph (taking into consideration existing State 
                and local laws, and local teacher contracts), including 
                pursuing the availability of other Federal, State, and 
                local funding sources to assist in compliance with such 
                subparagraph.
          ``(3) Inapplicability.--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.--Section 1112 is amended by 
striking subsection (d) and inserting the following:
  ``(d) Plan Development and Duration.--
          ``(1) Consultation.--Each local educational agency plan shall 
        be developed in consultation with teachers, 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 Student Results Act of 1999 and shall 
        remain in effect for the duration of the agency's participation 
        under this part.
          ``(3) Review.--Each such local educational agency shall 
        periodically review, and as necessary, revise its plan.''.
  (e) State approval.--Section 1112 (20 U.S.C. 6312(e)) is amended by 
striking subsection (e) and inserting the following:
  ``(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) will enable schools served under this part to 
                substantially help children served under this part meet 
                the standards expected of all children described in 
                section 1111(b)(1); and
                  ``(B) will meet the requirements of this section.''.
  (f) Parental Notification and Consent for English Language 
Instruction.--Section 1112 (20 U.S.C. 6312) is amended by adding at the 
end the following:
  ``(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; and
                  ``(C) how the English language instruction program 
                will specifically help the child acquire English and 
                meet age-appropriate standards for grade promotion and 
                graduation;
                  ``(D) what the specific exit requirements are for the 
                program;
                  ``(E) the expected rate of graduation from the 
                program into mainstream classes; and
                  ``(F) the expected rate of graduation from high 
                school for the program if funds under this part are 
                used for children in secondary schools.
          ``(2) Consent.--
                  ``(A) Agency requirements.--
                          ``(i) Each local educational agency that 
                        receives funds under this part shall 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 
                        which does not include classes which 
                        exclusively or almost exclusively use the 
                        English language in instruction or if 
                        instruction is not tailored for limited English 
                        proficient children.
                          ``(ii) 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 
                        obtained.
                          ``(iii)(I) If a response cannot be obtained 
                        after written notice and a reasonable and 
                        substantial effort has been made to obtain such 
                        consent, the local educational agency shall 
                        document, in writing, that it has given such 
                        written notice and its specific efforts made to 
                        obtain such consent.
                          ``(II) The proof of documentation shall be 
                        mailed or delivered in writing to the parents 
                        or guardian of the child at least 10 business 
                        days prior to providing any services under this 
                        part, and include a final notice requesting 
                        parental consent for such services.
                  ``(B) 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 Act shall--
                          ``(i) select among methods of instruction, if 
                        more than one method is offered in the program; 
                        and
                          ``(ii) have the right to have their child 
                        immediately removed from the program upon their 
                        request.
          ``(3) 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 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 Act; and
                  ``(B) if a parent of a participating child so 
                desires, notice of opportunities for regular meetings 
                for the purpose of formulating and responding to 
                recommendations from such parents.
          ``(4) 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. 107. ELIGIBLE SCHOOL ATTENDANCE AREAS.

  Section 1113 (20 U.S.C. 6313) is amended to read as follows:

``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 one 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 National School Lunch Act, 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 14505.
  ``(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;
                  ``(B) children in local institutions for neglected or 
                delinquent children; and
                  ``(C) where appropriate, neglected and delinquent 
                children in community day school programs.
          ``(4) School improvement reservation.--A local educational 
        agency shall 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 
        section 1116(b)(9).
          ``(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 eligible schools 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. 108. SCHOOLWIDE PROGRAMS.

  Section 1114 (20 U.S.C. 6314) is amended to read as follows:

``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
          ``(2) to help ensure that all children in such a school meet 
        challenging State standards for student performance, 
        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 50 percent of the children are from low-
        income families, or not less than 50 percent of the children 
        enrolled in the school are from such families.
          ``(2) State assurances.--A local educational agency may start 
        new schoolwide programs under this section only after the State 
        educational agency provides written information to each local 
        educational agency in the State that demonstrates that such 
        State educational agency has established the statewide system 
        of support and improvement required by subsections (c)(1) and 
        (e) of section 1117.
          ``(3) Identification of students not required.--(A) 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) 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.
          ``(4) Exemption from statutory and regulatory requirements.--
        (A) 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) 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)(i) 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.
          ``(5) 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)(E) 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 content standards 
                and the State student performance 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 performance 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 performance standards 
                        who are members of the target population of any 
                        program that is included in the schoolwide 
                        program;
                          ``(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.
                  ``(D) Instruction by fully qualified (as defined in 
                section 1610) teachers.
                  ``(E) In accordance with section 1119A, 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 performance standards.
                  ``(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, or a State-run preschool program, to 
                local elementary school programs.
                  ``(H) Measures to include teachers in the decisions 
                regarding the use of 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 performance 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 date 
        of enactment of the Student Results Act of 1999), 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;
                  ``(C) includes a list of State and local educational 
                agency programs and other Federal programs under 
                subsection (b)(4) that will be consolidated in the 
                schoolwide program;
                  ``(D) describes how the school will provide 
                individual student assessment results, including an 
                interpretation of those results, to the parents of a 
                child who participates in the assessments required by 
                section 1111(b)(4) and in a format and, to the extent 
                practicable, in a language that they can understand; 
                and
                  ``(E) provides for the collection of data on the 
                achievement and assessment results of students 
                disaggregated by gender, major ethnic or racial groups, 
                limited English proficiency status, migrant students, 
                by children with disabilities as compared to other 
                students, and by economically disadvantaged students as 
                compared to students who are not economically 
                disadvantaged, except that such disaggregation shall 
                not be required in a case in which the number of 
                students in a category is insufficient to yield 
                statistically reliable information or the results would 
                reveal individually identifiable information about an 
                individual student.
          ``(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 date of 
                        enactment of the Student Results Act of 1999, 
                        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 under such Act to 
                        reflect the provisions of this section;
                  ``(B) developed with the involvement of the community 
                to be served and individuals who will carry out such 
                plan, including teachers, principals, administrators 
                (including administrators of programs described in 
                other parts of this title), if appropriate pupil 
                services personnel, school staff and parents, 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 the Reading Excellence Act, the Carl D. 
                Perkins Vocational and Technical Education Act of 1998, 
                the Head Start Act, and part B of this title.
  ``(d) Accountability.--A schoolwide program under this section shall 
be subject to the school improvement provisions of section 1116.''.

SEC. 109. TARGETED ASSISTANCE SCHOOLS.

  (a) In General.--Subsection (a) of section 1115 (20 U.S.C. 6315(a)) 
is amended by striking ``section 1113(c)'' and inserting ``section 
1113(f)''.
  (b) Eligible Children.--Subsection (b) of section 1115 (20 U.S.C. 
6315(b)) is amended to read as follows:
  ``(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 
                where 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 performance standards on the basis of 
        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 developmentally 
        appropriate measures.
          ``(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 or Even Start 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 Targeted Assistance School Program.--Subsection (c) 
of section 1115 (20 U.S.C. 6315(c)) is amended to read as follows:
  ``(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 performance 
        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 performance 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 to elementary school programs;
                  ``(E) provide instruction by fully qualified teacher 
                as defined in section 1610;
                  ``(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 performance 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 performance 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 
                performance standards in the classroom.''.
  (d) Integration of Professional Development.--Subsection (d) of 
section 1115 (20 U.S.C. 6515(d) is amended to read as follows:
  ``(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) Comprehensive Services.--Paragraph (2) of section 1115(e) (20 
U.S.C. 6315(e)(2)) is amended--
          (1) by inserting ``and'' at the end of subparagraph (A);
          (2) by striking subparagraph (B); and
          (3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 110. SCHOOL CHOICE.

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

``SEC. 1115A. SCHOOL CHOICE.

  ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with State, local, and private funds, 
to develop and implement public school choice programs, for children 
eligible for assistance under this part, 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 assurances that--
          ``(1) all eligible students across grade levels served under 
        this part will have equal access to the program;
          ``(2) the program does not include schools that follow a 
        racially discriminatory policy;
          ``(3) describe how the school will use resources under this 
        part and from other sources to implement the plan;
          ``(4) the plan will be developed with the involvement of 
        parents and others in the community to be served and 
        individuals who will carry out the plan, including 
        administrators, teachers, principals, and other staff;
          ``(5) 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;
          ``(6) 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;
          ``(7) transportation services or the costs of transportation 
        may be provided by the local educational agency with funds 
        under this part; and
          ``(8) such local educational agency will comply with the 
        other requirements of this part.''.

SEC. 111. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
                    IMPROVEMENT.

  (a) Local Review.--Section 1116(a) (20 U.S.C. 6317(a)) is amended--
          (1) in paragraph (2), by striking ``1111(b)(2)(A)(i)'' and 
        inserting ``1111(b)(2)(B)'';
          (2) in paragraph (3), by striking ``individual school 
        performance profiles'' and inserting ``school reports'';
          (3) in paragraph (3), by striking ``and'' after the 
        semicolon;
          (4) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
          (5) by adding at the end the following:
          ``(5) review the effectiveness of the actions and activities 
        the schools are carrying out under this part with respect to 
        parental involvement assisted under this Act.''.
  (b) School Improvement.--Section 1116 (20 U.S.C. 6317) is amended by 
striking subsection (b) and by redesignating subsections (c) and (d) as 
subsections (b) and (c), respectively, and amending them to read as 
follows:
  ``(b) School Improvement.--
          ``(1) In general.--A local educational agency shall identify 
        for school improvement any school served under this part that--
                  ``(A) for 2 consecutive years failed to make adequate 
                yearly progress as defined in the State's plan under 
                section 1111(b)(2); or
                  ``(B) was in school improvement status under this 
                section on the day preceding the date of the enactment 
                of the Student Results Act of 1999.
          ``(2) Transition.--The 2-year period described in paragraph 
        (1)(A) shall include any continuous period of time immediately 
        preceding the date of the enactment of the Student Results Act 
        of 1999 during which a school did not make adequate yearly 
        progress as defined in the State's plan, as such plan was in 
        effect on the day preceding the date of such enactment.
          ``(3) Targeted assistance schools.--To determine if a school 
        that is conducting a targeted assistance program under section 
        1115 should be identified as in need of improvement under this 
        subsection, a local educational agency may choose to review the 
        progress of only those students in such school who are served 
        under this part.
          ``(4) Opportunity to review and present evidence.--
                  ``(A) In general.--Before identifying a school for 
                school improvement under paragraph (1), the local 
                educational agency shall provide the school with an 
                opportunity to review the school-level data, including 
                assessment data, on which the proposed identification 
                is based.
                  ``(B) Supporting evidence.--If the school principal 
                believes that the proposed identification is in error 
                for statistical or other substantive reasons, the 
                principal may provide supporting evidence to the local 
                educational agency, which such agency shall consider 
                before making a final determination.
          ``(5) Notification to parents.--A local educational agency 
        shall, in an easily understandable format, provide in writing 
        to parents of each student in a school identified for school 
        improvement--
                  ``(A) an explanation of what the school improvement 
                identification means and how the school compares in 
                terms of academic performance to other schools in the 
                local educational agency and State;
                  ``(B) the reasons for such identification;
                  ``(C) the data on which such identification is based;
                  ``(D) an explanation of what the school is doing to 
                address the problem of low achievement;
                  ``(E) an explanation of how parents can become 
                involved in upgrading the quality of the school;
                  ``(F) an explanation of the right of parents, 
                pursuant to paragraph (6), to transfer their child to 
                another public school, including a public charter 
                school, that is not in school improvement, and how such 
                transfer shall operate; and
                  ``(G) notification to parents in a format and, to the 
                extent practicable, in a language they can understand.
          ``(6) Public school choice option.--
                  ``(A) Schools identified for improvement.--
                          ``(i) Schools identified on or before 
                        enactment.--Not later than 18 months after the 
                        date of enactment of the Student Results Act of 
                        1999, a local educational agency shall provide 
                        all students enrolled in a school identified 
                        (on or before such date of enactment) for 
                        school improvement with an option to transfer 
                        to any other public school within the local 
                        educational agency or any public school 
                        consistent with subparagraph (B), including a 
                        public charter school that has not been 
                        identified for school improvement, unless such 
                        option to transfer is prohibited by State law, 
                        or local law, which includes school board-
                        approved local educational agency policy.
                          ``(ii) Schools identified after enactment.--
                        Not later than 18 months after the date on 
                        which a local educational agency identifies a 
                        school for school improvement, the agency shall 
                        provide all students enrolled in such school 
                        with an option described in clause (i).
                  ``(B) Cooperative agreement.--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 the transfer.
                  ``(C) Transportation.--The local educational agency 
                in which the schools have been identified for 
                improvement may use funds under this part to provide 
                transportation to students whose parents choose to 
                transfer their child or children to a different school.
                  ``(D) Continue option.--Once a school is no longer 
                identified for school improvement, the local 
                educational agency shall continue to provide public 
                school choice as an option to students in such school 
                for a period of not less than 2 years.
          ``(7) School plan.--
                  ``(A) In general.--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, and other 
                outside experts for approval by the local educational 
                agency. Such plan shall--
                          ``(i) incorporate scientifically-based 
                        research strategies that strengthen the core 
                        academic program in the school;
                          ``(ii) adopt policies that have the greatest 
                        likelihood of improving the performance of 
                        participating children in meeting the State's 
                        student performance standards;
                          ``(iii) address the professional development 
                        needs of staff, particularly teachers and 
                        principals;
                          ``(iv) establish specific goals and 
                        objectives the school will undertake for making 
                        adequate yearly progress which include specific 
                        numerical performance goals and targets for 
                        each of the groups of students identified in 
                        the disaggregated data pursuant to section 
                        1111(b)(2);
                          ``(v) identify how the school will provide 
                        written notification to parents, in a format 
                        and to the extent practicable in a language 
                        such parents can understand; and
                          ``(vi) specify the responsibilities of the 
                        local educational agency and the school under 
                        the plan.
                  ``(B) Conditional approval.--A local educational 
                agency may condition approval of a school plan on 
                inclusion of 1 or more of the corrective actions 
                specified in paragraph (9).
                  ``(C) Implementation.--A school 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.
                  ``(D) Review.--The local educational agency shall 
                promptly review the plan, work with the school as 
                necessary, and approve the plan if it meets the 
                requirements of this section.
          ``(8) Technical assistance.--
                  ``(A) In general.--For each school identified for 
                school improvement under paragraph (1), the local 
                educational agency shall provide technical assistance 
                as the school develops and implements its plan.
                  ``(B) Specific technical assistance.--Such technical 
                assistance--
                          ``(i) shall include effective methods and 
                        instructional strategies that are based upon 
                        scientifically based research that strengthens 
                        the core academic program in the school and 
                        addresses the specific elements of student 
                        performance problems in the school;
                          ``(ii) may be provided directly by the local 
                        educational agency, through mechanisms 
                        authorized under section 1117, or with the 
                        local educational agency's approval, by an 
                        institution of higher education, a private 
                        nonprofit organization, an educational service 
                        agency, a comprehensive regional assistance 
                        center under part A of title XIII, or other 
                        entities with experience in helping schools 
                        improve achievement.
                  ``(C) Technical assistance.--Technical assistance 
                provided under this section by the local 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 standards, each local 
        educational agency 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 (F), the local educational agency--
                          ``(i) may take corrective action at any time 
                        with respect to a school that has been 
                        identified under paragraph (1);
                          ``(ii) shall take corrective action with 
                        respect to any school that fails to make 
                        adequate yearly progress, as defined by the 
                        State, after the end of the second year 
                        following its identification under paragraph 
                        (1); 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 and local law, that--
                          ``(i) substantially and directly responds to 
                        the consistent academic failure that caused the 
                        local educational agency to take such action 
                        and to any underlying staffing, curricular, or 
                        other problems in the school; and
                          ``(ii) is designed to substantially increase 
                        the likelihood that students will perform at 
                        the proficient and advanced performance levels.
                  ``(C) Certain schools.--In the case of a school 
                described in subparagraph (A)(ii), the local 
                educational agency shall take not less than 1 of the 
                following corrective actions:
                          ``(i) Withhold funds from the school.
                          ``(ii) Decrease decisionmaking authority at 
                        the school level.
                          ``(iii) Make alternative governance 
                        arrangements, including reopening the school as 
                        a public charter school.
                          ``(iv) Reconstitute the school by requiring 
                        each person employed at the school to reapply 
                        for future employment at the same school or for 
                        any position in the local educational agency.
                          ``(v) Authorize students to transfer to other 
                        higher performing public schools served by the 
                        local educational agency, including public 
                        charter schools, 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 
                        subparagraph.
                          ``(vi) Institute and fully implement a new 
                        curriculum, including appropriate professional 
                        development for all relevant staff, that is 
                        based upon scientifically based research and 
                        offers substantial promise of improving 
                        educational achievement for low-performing 
                        students.
                  ``(D) Implementation delay.--A local educational 
                agency may delay, for a period not to exceed 1 year, 
                implementation of corrective action only if the failure 
                to make adequate yearly progress was justified due to 
                exceptional or uncontrollable circumstances such as a 
                natural disaster or a precipitous and unforeseen 
                decline in the financial resources of the local 
                educational agency or school.
                  ``(E) Publication.--The local educational agency 
                shall publish, and disseminate to the public and to 
                parents in a format and, to the extent practicable, in 
                a language that they can understand, any corrective 
                action it takes under this paragraph through such means 
                as the Internet, the media, and public agencies.
                  ``(F) Review.--(i) Before taking corrective action 
                with respect to any school under this paragraph, a 
                local educational agency shall provide the school an 
                opportunity to review the school level data, including 
                assessment data, on which the proposed determination is 
                made.
                  ``(ii) If the school believes that the proposed 
                determination is in error for statistical or other 
                substantive reasons, it may provide supporting evidence 
                to the local educational agency, which shall consider 
                such evidence before making a final determination.
          ``(10) State educational agency responsibilities.--If a State 
        educational agency determines that a local educational agency 
        failed to carry out its responsibilities under this section, it 
        shall take such action as it finds necessary, consistent with 
        this section, to improve the affected schools and to ensure 
        that the local educational agency carries out its 
        responsibilities under this section.
          ``(11) Special rule.--Schools that, for at least two of the 
        three years following identification under paragraph (1), make 
        adequate yearly progress toward meeting the State's proficient 
        and advanced levels of performance shall no longer be 
        identified for school improvement.
  ``(c) State Review and Local Educational Agency Improvement.--
          ``(1) In general.--A State educational agency 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 performance 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 educational agency 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 enactment of the Student Results Act of 1999.
          ``(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 Student Results Act 
        of 1999, 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 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 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.
          ``(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 reasons for such agency's 
        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 performance standards;
                                  ``(II) address the professional 
                                development needs of staff; and
                                  ``(III) include specific numerical 
                                performance goals and targets for each 
                                of the groups of students identified in 
                                the disaggregated data pursuant to 
                                section 1111(b)(2);
                          ``(iii) 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
                          ``(iv) specify the responsibilities of the 
                        State educational agency and the local 
                        educational agency under the plan.
                  ``(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 educational agency responsibility.--
                  ``(A) In general.--For each local educational agency 
                identified under paragraph (2), the State educational 
                agency shall provide technical or other assistance, if 
                requested, as authorized under section 1117, to better 
                enable the local educational agency--
                          ``(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 standards, each State 
        educational agency 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 educational agency--
                          ``(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 educational agency 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) Reconstitute school district 
                        personnel.
                          ``(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 two of the three years following identification under 
        paragraph (2), makes adequate yearly progress toward meeting 
        the State's proficient and advanced levels of performance shall 
        no longer be identified for school improvement.''.

SEC. 112. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

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

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

  ``(a) System for Support.--Each State educational agency 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 content standards and 
student performance standards.
  ``(b) Priorities.--In carrying out this section, a State educational 
agency 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 section 1116(b)(8) and 
        (9);
          ``(2) second, provide support and assistance to other local 
        educational agencies identified as in need of improvement under 
        section 1116; 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 educational agency--
          ``(1) shall use funds reserved under section 1002(f); and
          ``(2) may use State administrative funds authorized under 
        section 1002(h) for such purpose.
  ``(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 the State may seek approval from the Secretary to use 
funds made available under section 1002(h) for such approaches as part 
of the State plan.''.

SEC. 113. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

  Subpart 1 of part A of title I is amended by inserting after section 
1117 the following:

``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 50 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) Schools 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 eligible for free 
                and reduced priced lunches under the National School 
                Lunch Act.''.

SEC. 114. PARENTAL INVOLVEMENT CHANGES.

  (a) Local Educational Agency Policy.--Subsection (a) of section 1118 
(20 U.S.C. 6319(a)) is amended--
          (1) in paragraph (1), by striking ``programs, activities, and 
        procedures'' and inserting ``activities and procedures''.
          (2) in paragraph (2) by striking subparagraphs (E) and (F) 
        and inserting the following:
                  ``(E) conduct, with the involvement of parents, an 
                annual evaluation of the content and effectiveness of 
                the parental involvement policy in improving the 
                academic quality of the schools served under this part;
                  ``(F) involve parents in the activities of the 
                schools served under this part; and
                  ``(G) promote consumer friendly environments at the 
                local educational agency and schools served under this 
                part.'';
          (3) in paragraph (3) by adding at the end the following new 
        subparagraph:
          ``(C) Not less than 90 percent of the funds reserved under 
        subparagraph (A) shall be distributed to schools served under 
        this part.''.
  (b) Notice.--Paragraph (1) of section 1118(b) (20 U.S.C. 6319(b)(1)) 
is amended by inserting after the first sentence the following: 
``Parents shall be notified of the policy in a format, and to the 
extent practicable, in a language that they can understand.''.
  (c) Parental Involvement.--Paragraph (4) of section 1118(c) (20 
U.S.C. 6319(c)(4)) is amended--
          (1) in subparagraph (B), by striking ``performance profiles 
        required under section 1116(a)(3)'' and inserting ``school 
        reports required under section 1111'';
          (2) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (F) and (G), respectively;
          (3) by inserting after subparagraph (C) the following new 
        subparagraphs:
                  ``(D) notice of the schools' identification as a 
                school in school improvement under section 1116(b), if 
                applicable, and a clear explanation of what such 
                identification means;
                  ``(E) notice of the corrective action that has been 
                taken against the school under section 1116(b)(9) and 
                1116(c)(9), if applicable, and a clear explanation of 
                what such action means;''; and
          (4) in subparagraph (G) (as so redesignated), by striking 
        ``subparagraph (D)'' and inserting ``subparagraph (F)''.
  (d) Building Capacity for Involvement.--Subsection (e) of section 
1118 (20 U.S.C. 6319(e)) is amended to read as follows:
  ``(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 content standards and 
        State student performance standards, the provisions of section 
        1111(b)(8), State and local 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 as well 
        as information on how parents can participate in decisions 
        relating to the education of their children;
          ``(2) shall provide materials and training, such as--
                  ``(A) coordinating necessary literacy training from 
                other sources to help parents work with their children 
                to improve their children's achievement; and
                  ``(B) 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 home and school;
          ``(4) shall coordinate and integrate parent involvement 
        programs and activities with Head Start, 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 conduct other activities, as appropriate and 
        feasible, such as parent resource centers and opportunities for 
        parents to learn how to become full partners in the education 
        of their children;
          ``(6) shall ensure, to the extent possible, that information 
        related to school and parent programs, meetings, and other 
        activities is sent to the homes of participating children in 
        the language used in such homes;
          ``(7) shall provide such other reasonable support for 
        parental involvement activities under this section as parents 
        may request;
          ``(8) shall expand the use of electronic communications among 
        teachers, students, and parents, such as through the use of 
        websites and e-mail communications;
          ``(9) 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;
          ``(10) 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;
          ``(11) 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;
          ``(12) may train and support parents to enhance the 
        involvement of other parents;
          ``(13) may arrange meetings at a variety of times, such as in 
        the mornings and evenings, in order to maximize the 
        opportunities for parents to participate in school related 
        activities;
          ``(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;
          ``(15) may adopt and implement model approaches to improving 
        parental involvement, such as Even Start;
          ``(16) may establish a districtwide parent advisory council 
        to advise on all matters related to parental involvement in 
        programs supported under this part; and
          ``(17) may develop appropriate roles for community-based 
        organizations and businesses in parent involvement activities, 
        including providing information about opportunities for 
        organizations and businesses to work with parents and schools, 
        and encouraging the formation of partnerships between 
        elementary, middle, and secondary schools and local businesses 
        that include a role for parents.''.
  (e) Accessibility.--Subsection (f) of section 1118 (20 U.S.C. 
6319(f)) is amended to read as follows:
  ``(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. 115. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

  Section 1119 (20 U.S.C. 6301) is amended to read as follows:

``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 Student Results Act of 
        1999 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, 2003. 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 one year or more after the effective 
        date of the Student Results Act of 1999 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 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 one year after the 
effective date of the Student Results Act of 1999 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--
                  ``(A) 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
                  ``(B) 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 assessment, the ability effectively to 
                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 Student Results Act of 1999, 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) or (c).
                  ``(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.
          ``(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. 116. PROFESSIONAL DEVELOPMENT.

  Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended by 
inserting after section 1119 the following:

``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 eligible children (as defined in section 
1115(b)(1)(B)) through improved teacher quality.
  ``(b) Professional Development Activities.--
          ``(1) Required activities.--Professional development 
        activities under this section shall--
                  ``(A) support professional development activities 
                that give teachers, principals, and administrators the 
                knowledge and skills to provide students with the 
                opportunity to meet challenging State or local content 
                standards and student performance standards;
                  ``(B) support the recruiting, hiring, and training of 
                fully qualified teachers, including teachers fully 
                qualified through State and local alternative routes;
                  ``(C) advance teacher understanding of effective 
                instructional strategies based on scientifically-based 
                research for improving student achievement, at a 
                minimum, in reading or language arts and mathematics;
                  ``(D) be directly related to the curriculum and 
                content areas in which the teacher provides 
                instruction;
                  ``(E) be designed to enhance the ability of a teacher 
                to understand and use the State's standards for the 
                subject area in which the teacher provides instruction;
                  ``(F) be tied to scientifically based research 
                demonstrating the effectiveness of such professional 
                development activities or programs in increasing 
                student achievement or substantially increasing the 
                knowledge and teaching skills of teachers;
                  ``(G) be of sufficient intensity and duration (not to 
                include 1-day or short-term workshops and conferences) 
                to have a positive and lasting impact on the teacher's 
                performance in the classroom, except that this 
                paragraph shall not apply to an activity if such 
                activity is one component of a long-term comprehensive 
                professional development plan established by the 
                teacher and the teacher's supervisor based upon an 
                assessment of their needs, their students' needs, and 
                the needs of the local educational agency;
                  ``(H) be developed with extensive participation of 
                teachers, principals, parents, and administrators of 
                schools to be served under this part;
                  ``(I) to the extent appropriate, provide training for 
                teachers in the use of technology so that technology 
                and its applications are effectively used in the 
                classroom to improve teaching and learning in the 
                curriculum and academic content areas in which the 
                teachers provide instruction; and
                  ``(J) 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.
          ``(2) Optional activities.--Such professional development 
        activities may include--
                  ``(A) instruction in the use of data and assessments 
                to inform and instruct classroom practice;
                  ``(B) instruction in ways that teachers, principals, 
                pupil services personnel, and school administrators may 
                work more effectively with parents;
                  ``(C) 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;
                  ``(D) 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;
                  ``(E) instruction in ways to teach special needs 
                children;
                  ``(F) joint professional development activities 
                involving programs under this part, Head Start, Even 
                Start, or State-run preschool program personnel;
                  ``(G) instruction in experiential-based teaching 
                methods such as service or applied learning; and
                  ``(H) mentoring programs focusing on changing teacher 
                behaviors and practices to help novice teachers, 
                including teachers who are members of a minority group, 
                develop and gain confidence in their skills, to 
                increase the likelihood that they will continue in the 
                teaching profession, and generally to improve the 
                quality of their teaching.
  ``(c) 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.
  ``(d) Parental Participation.--Parents may participate in 
professional development activities under this part if the school 
determines that parental participation is appropriate.
  ``(e) 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.
  ``(f) Consolidation of Funds.--Funds provided under this part that 
are used for professional development purposes may be consolidated with 
funds provided under title II of this Act and other sources.
  ``(g) Definition.--The term `fully qualified' has the same meaning 
given such term in section 1610.
  ``(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(c)(9).''.

SEC. 117. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

  (a) General Requirement.--Subsection (a) of section 1120 (20 U.S.C. 
6321(a)) is amended to read as follows:
  ``(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.--Subsection (b) of section 1120 (20 U.S.C. 6321(b)) 
is amended to read as follows:
  ``(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 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 
        provide to the State educational agency, and maintain in its 
        records, 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 the local 
        educational agencies shall be provided to the State, and the 
        local educational agency shall forward the documentation 
        provided in subsection (b)(3) to the State.''.
  (c) Standards for Bypass.--Subsection (d) of section 1120 (20 U.S.C. 
6321(d)) is amended to read as follows:
  ``(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 14505 and 14506; and
          ``(3) in making the determination, consider one or more 
        factors, including the quality, size, scope, and location of 
        the program and the opportunity of eligible children to 
        participate.''.
  (d) Capital Expenses.--Effective September 30, 2002, subsection (e) 
of section 1120 (20 U.S.C. 6321(e)) is hereby repealed.

SEC. 118. COORDINATION REQUIREMENTS.

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

SEC. 119. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
                    INTERIOR.

  Section 1121 is amended to read as follows:

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

  ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a), the 
Secretary shall reserve a total of 1 percent to provide assistance to--
          ``(1) the outlying areas in the amount determined in 
        accordance with subsection (b); and
          ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (d).
  ``(b) Assistance to Outlying Areas.--
          ``(1) 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 fiscal years 2000 and 2001, 
        the Secretary shall carry out the competition described in 
        paragraph (3), except that the amount reserved to carry out 
        such competition shall not exceed 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) Termination of eligibility.--Notwithstanding 
                any other provision of law, the freely associated 
                States shall not receive any funds under this part 
                after September 30, 2001.
                  ``(D) Administrative costs.--The Secretary may 
                provide not more than five percent of the amount 
                reserved for grants under this paragraph to pay the 
                administrative costs of the Pacific Region Educational 
                Laboratory under subparagraph (B).
          ``(4) Special rule.--The provisions of Public Law 95-134, 
        permitting the consolidation of grants by the outlying areas, 
        shall not apply to funds provided to the freely associated 
        States under this section.
  ``(c) Definitions.--For the purposes of subsection (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. 120. AMOUNTS FOR GRANTS.

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

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

  ``(a) Allocation Formula.--Of the amount authorized to be 
appropriated to carry out this part for each of fiscal years 2000 
through 2004 (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 1999 plus 42.5 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 1999 shall be 
        allocated in accordance with section 1124;
          ``(2) an amount equal to the amount appropriated to carry out 
        section 1124A for fiscal year 1999 plus 7.5 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 1999 shall be 
        allocated in accordance with section 1124A; and
          ``(3) an amount equal to 50 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 1999 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. 121. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

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

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

  ``(a) Amount of Grants.--
          ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (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.
          ``(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 2000, 75.0 percent;
                          ``(ii) for fiscal year 2001, 77.5 percent;
                          ``(iii) for fiscal year 2002, 80.0 percent;
                          ``(iv) for fiscal year 2003, 82.5 percent;
                          ``(v) for fiscal year 2004 and succeeding 
                        fiscal years, 85.0 percent.
                  ``(C) Limitation.--If the application of subparagraph 
                (B) would result in any of the 50 States or the 
                District of Columbia receiving less under this part 
                than 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); and
                  ``(B) the number of children (determined under 
                paragraph (4) for either the preceding year as 
                described in that paragraph, or for the second 
                preceding year, as the Secretary finds appropriate) 
                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.
          ``(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 two 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.--The Secretary shall 
        determine 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 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. 122. CONCENTRATION GRANTS.

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

``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) but that 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--
          ``(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. 123. TARGETED GRANTS.

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

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

  ``(a) Eligibility of Local Educational Agencies.--A local educational 
agency in a State 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 two 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 12.20 
                                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 12.20 percent, 
                                but not more than 17.70 percent, of 
                                such population, multiplied by 1.75;
                                  ``(III) the number of such children 
                                constituting more than 17.70 percent, 
                                but not more than 22.80 percent, of 
                                such population, multiplied by 2.5;
                                  ``(IV) the number of such children 
                                constituting more than 22.80 percent, 
                                but not more than 29.70 percent, of 
                                such population, multiplied by 3.25; 
                                and
                                  ``(V) the number of such children 
                                constituting more than 29.70 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 1,917, inclusive, of 
                                the county's total population aged 5 to 
                                17, inclusive, multiplied by 1.0;
                                  ``(II) the number of such children 
                                between 1,918 and 5,938, inclusive, in 
                                such population, multiplied by 1.5;
                                  ``(III) the number of such children 
                                between 5,939 and 20,199, inclusive, in 
                                such population, multiplied by 2.0;
                                  ``(IV) the number of such children 
                                between 20,200 and 77,999, inclusive, 
                                in such population, multiplied by 2.5; 
                                and
                                  ``(V) the number of such children in 
                                excess of 77,999 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 two 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 14.265 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 14.265 percent, 
                                but not more than 21.553 percent, of 
                                such population, multiplied by 1.75;
                                  ``(III) the number of such children 
                                constituting more than 21.553 percent, 
                                but not more than 29.223 percent, of 
                                such population, multiplied by 2.5;
                                  ``(IV) the number of such children 
                                constituting more than 29.223 percent, 
                                but not more than 36.538 percent, of 
                                such population, multiplied by 3.25; 
                                and
                                  ``(V) the number of such children 
                                constituting more than 36.538 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 575, inclusive, of 
                                the agency's total population aged 5 to 
                                17, inclusive, multiplied by 1.0;
                                  ``(II) the number of such children 
                                between 576 and 1,870, inclusive, in 
                                such population, multiplied by 1.5;
                                  ``(III) the number of such children 
                                between 1,871 and 6,910, inclusive, in 
                                such population, multiplied by 2.0;
                                  ``(IV) the number of such children 
                                between 6,911 and 42,000, inclusive, in 
                                such population, multiplied by 2.5; and
                                  ``(V) the number of such children in 
                                excess of 42,000 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. 124. SPECIAL ALLOCATION PROCEDURES.

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

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

  ``(a) Allocations for Neglected Children.--
          ``(1) In general.--If a State educational agency determines 
        that a local educational agency in the State is unable or 
        unwilling to provide for the special educational needs of 
        children who are living in institutions for neglected children 
        as described in subparagraph (B) of section 1124(c)(1), the 
        State educational agency shall, if such agency assumes 
        responsibility for the special educational needs of such 
        children, receive the portion of such local educational 
        agency's allocation under sections 1124, 1124A, and 1125 that 
        is attributable to such children.
          ``(2) Special rule.--If the State educational agency does not 
        assume 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 two 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 one 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. 125. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.

  Part A is amended by adding at the end the following:

``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--EDUCATION OF MIGRATORY CHILDREN

SEC. 131. STATE ALLOCATIONS.

  Section 1303 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6393) is amended--
  (1) by amending subsection (a) to read as follows:
  ``(a) State Allocations.--
          ``(1) Fiscal year 2000.--For fiscal year 2000, 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 (e); multiplied by
                  ``(B) 40 percent of the average per-pupil expenditure 
                in the State, except that the amount determined under 
                this paragraph shall not be less than 32 percent, nor 
                more than 48 percent, of the average 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 is 
                        entitled to receive under this part, for fiscal 
                        year 2001 and succeeding fiscal years, an 
                        amount equal to--
                                  ``(I) the amount that such State 
                                received under this part for fiscal 
                                year 2000; 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 2000 under this part, the State 
                        shall receive, for fiscal year 2001 and 
                        succeeding fiscal years, an amount equal to--
                                  ``(I) the amount that such State 
                                would have received under this part for 
                                fiscal year 2000 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 2001 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 
                2000 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 expenditure per-pupil in the 
                        United States.'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Allocation to Puerto Rico.--
          ``(1) Fiscal year 2000.--For fiscal year 2000, 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 
        (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) Subsequent fiscal years.--For each fiscal year after 
        fiscal year 2000, 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 (a)(2)(B)(i)(I) and (a)(2)(B)(i)(II) 
        for the Commonwealth of Puerto Rico during the previous fiscal 
        year, 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.
          ``(3) Minimum allocation.--
                  ``(A) Fiscal year 2000.--The percentage in paragraph 
                (1)(A) shall not be less than 75.0 percent.
                  ``(B) Subsequent fiscal years.--The percentage in 
                paragraph (2)(A) shall not be less than--
                          ``(i) for fiscal year 2001, 77.5 percent;
                          ``(ii) for fiscal year 2002, 80.0 percent;
                          ``(iii) for fiscal year 2003, 82.5 percent; 
                        and
                          ``(iv) for fiscal year 2004 and succeeding 
                        fiscal years, 85.0 percent.
          ``(4) Special rule.--If the application of paragraph (3) 
        would result in any of the 50 States or the District of 
        Columbia receiving less under this part than it recieved under 
        this part for the preceding fiscal year, the percentage in 
        paragraph (1) or (2), respectively, shall be the greater of the 
        percentage in paragraph (1)(A) or (2)(A) the percentage used 
        for the preceding fiscal year.''; and
          (3) by striking subsections (d) and (e).

SEC. 132. STATE APPLICATIONS; SERVICES.

  (a) Program Information.--Section 1304(b) of the Elementary and 
Secondary Education Act of 1965 (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 parts A and C of title VII;
                  ``(C) the integration of services available under 
                this part with services provided by those other 
                programs; and
                  ``(D) measurable program goals and outcomes;'';
          (2) in paragraph (5), by striking ``the requirements of 
        paragraph (1); and'' 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;'';
          (3) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(7) a description of how the State will encourage programs 
        and projects assisted under this part to offer family literacy 
        services if the program or project serves a substantial number 
        of migratory children who have parents who do not have a high 
        school diploma or its recognized equivalent or who have low 
        levels of literacy.''.
  (b) Assurances.--Section 1304(c) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6394(c)) is amended--
          (1) in paragraph (1), by striking ``1306(b)(1);'' and 
        inserting ``1306(a);'';
          (2) 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
          (3) in paragraph (7), by striking ``section 1303(e)'' and 
        inserting ``paragraphs (1)(A) and (2)(B)(i) of section 
        1303(a)''.

SEC. 133. AUTHORIZED ACTIVITIES.

  Section 1306 of the Elementary and Secondary Education Act of 1965 
(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. 134. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

  (a) Duration.--Section 1308(a)(2) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6398(a)(2)) is amended by striking 
``subpart'' and inserting ``subsection''.
  (b) Student Records.--Section 1308(b) of the Elementary and Secondary 
Education Act of 1965 (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 for records to be 
        maintained and transferred when funds under this part are used 
        for such purpose. The Secretary may assist States to implement 
        a system 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 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) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6398(c)) is amended by 
striking ``$6,000,000'' and inserting ``$10,000,000''.
  (d) Incentive Grants.--Section 1308(d) of the Elementary and 
Secondary Education Act of 1965 (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 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 C--NEGLECTED OR DELINQUENT YOUTH

SEC. 141. 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. 142. FINDINGS.

  Section 1401(a) is amended--
          (1) in paragraph (3), by striking the following ``Preventing 
        students from dropping out of local schools and addressing'' 
        and inserting ``Addressing'';
          (2) by striking paragraphs (6) through (9) and adding 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.''.

SEC. 143. ALLOCATION OF FUNDS.

  Section 1412(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 for which a State agency in the Commonwealth of Puerto 
        Rico shall be eligible toreceive 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 allocation.--The percentage in paragraph (1)(A) 
        shall not be less than--
                  ``(A) for fiscal year 2000, 75.0 percent;
                  ``(B) for fiscal year 2001, 77.5 percent;
                  ``(C) for fiscal year 2002, 80.0 percent;
                  ``(D) for fiscal year 2003, 82.5 percent; and
                  ``(E) for fiscal year 2004 and succeeding fiscal 
                years, 85.0 percent.
          ``(3) Special rule.--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. 144. STATE PLAN AND STATE AGENCY APPLICATIONS.

  Section 1414 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 14306.
          ``(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; Peer Review.--
          ``(1) In general.--The Secretary shall approve each State 
        plan that meets the requirements of this part.
          ``(2) Peer review.--The Secretary may review any State plan 
        with the assistance and advice of individuals with relevant 
        expertise.
  ``(c) State Agency Applications.--Any State agency that desires to 
receive funds to carry out a program under this 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 14701 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 14501 of this title;
          ``(8) describes how the programs will be coordinated with 
        other appropriate State and Federal programs, such as programs 
        under the Job Training Partnership Act or title I of the 
        Workforce Investment Act of 1998, 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 the 
        youth has been completed or provide the youth with the skills 
        necessary to gain employment, continue the education of the 
        youth, or achieve a secondary school diploma or 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 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 or 
        other comparable programs, if applicable.''.

SEC. 145. USE OF FUNDS.

  Section 1415(a) is amended--
          (1) in paragraph (1)(B), by inserting ``and vocational and 
        technical training'' after ``secondary school completion''; and
          (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 period; and
                  (C) by striking clause (iii).

SEC. 146. PURPOSE.

  Section 1421 is amended by striking paragraph (3) and inserting the 
following:
          ``(3) operate programs for youth returning from correctional 
        facilities in local schools which may also serve youth at risk 
        of dropping out of school.''.

SEC. 147. TRANSITION SERVICES.

  Section 1418(a) is amended by striking ``10 percent'' and inserting 
``15 percent''.

SEC. 148. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

  Section 1422 is amended--
          (1) in subsection (a), by striking ``retained'';
          (2) by amending subsection (b) to read as follows:
  ``(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 of section 1422 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. 149. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

  Section 1423 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 youth 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 and other services to meet the 
        needs of students returning from correctional facilities and 
        other participating students;
          ``(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 programs under the Job Training Partnership 
        Act or title I of the Workforce Investment Act of 1998 and 
        vocational and technical education programs serving this at-
        risk population of youth.''.

SEC. 150. USES OF FUNDS.

  Section 1424 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;
          ``(3) the coordination of social and other services 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. 151. PROGRAM REQUIREMENTS.

  Section 1425 is amended--
          (1) in paragraph (1), by striking ``where feasible, ensure 
        educational programs'' and inserting the following: ``to the 
        extent practicable, ensure that educational programs'';
          (2) in paragraph (3), by striking ``where feasible,'' and 
        inserting the following: ``to the extent practicable,'';
          (3) in paragraph (8), by striking ``where feasible,'' and 
        inserting the following: ``to the extent practicable,'';
          (4) in paragraph (9), by inserting ``and technical'' after 
        ``vocational''; and
          (5) 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. 152. ACCOUNTABILITY.

  Section 1426(1) is amended by striking ``male students and for female 
students'' and inserting ``students''.

SEC. 153. PROGRAM EVALUATIONS.

  Section 1431(a) is amended by striking ``sex, and if feasible,'' and 
inserting ``gender,''.

                       PART D--GENERAL PROVISIONS

SEC. 161. GENERAL PROVISIONS.

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

                      ``PART F--GENERAL PROVISIONS

``SEC. 1601. FEDERAL REGULATIONS.

  ``(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
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;
                          ``(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 Student Results Act of 1999; 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 
        processbut 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. 1602. AGREEMENTS AND RECORDS.

  ``(a) Agreements.--All published proposed regulations shall conform 
to agreements that result from negotiated rulemaking described in 
section 1601 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. 1603. 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 performance 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. 1604. CONSTRUCTION.

  ``(a) Prohibition of Federal Mandates, Direction, or Control.--
Nothing in this title shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content or pupil performance standards and assessments, curriculum, or 
program of instruction as a condition of eligibility to receive funds 
under this title.
  ``(b) Equalized Spending.--Nothing in this title shall be construed 
to mandate equalized spending per pupil for a State, local educational 
agency, or school.
  ``(c) Building Standards.--Nothing in this title shall be construed 
to mandate national school building standards for a State, local 
educational agency, or school.

``SEC. 1605. APPLICABILITY TO HOME SCHOOLS.

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

``SEC. 1606. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC 
                    SCHOOLS.

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

``SEC. 1607. 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 
enactment of the Student Results Act of 1999.

``SEC. 1608. 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. 1609. GAO STUDIES.

  ``(a) Study on Paraprofessionals.--The General Accounting Office 
shall conduct a study of paraprofessionals under part A of title I.
  ``(b) Study on Portability.--The General Accounting Office shall 
conduct a study regarding how funds made available under this title 
could follow a child from school to school.
  ``(c) Study on Electronic Transfer of Migrant Student Records.--The 
General Accounting Office shall conduct a study on the feasibility of 
electronically transferring and maintaining migrant student records.
  ``(d) Evaluation by General Accounting Office.--Not later than 
October 1, 2001, the Comptroller General shall conduct a comprehensive 
analysis and evaluation regarding the impact on this title of 
individual waivers for schools, local educational agency waivers, and 
statewide waivers granted pursuant to the Education Flexibility 
Partnership Act of 1999 (20 U.S.C. 589a et seq.). The Comptroller 
General shall submit a report to the Committee on Education and the 
Workforce of the House of Representatives. In conducting such analysis 
and evaluation, the Comptroller General shall consider the following 
factors:
          ``(1) Consistency.--The extent to which the State's 
        educational flexibility plan is consistent with ensuring high 
        standards for all children and aligning the efforts of States, 
        local educational agencies, and schools to help children served 
        under this title to reach such standards.
          ``(2) State waivers.--Evaluate the effect that waivers of 
        State law have on addressing the needs and the performance of 
        students in schools subject to this title.
          ``(3) Allocation of funds.--The extent to which waivers have 
        affected the allocation of funds to schools, including schools 
        with the highest concentrations of poverty, and schools with 
        the highest educational needs, that are eligible to receive 
        funds under this title.

``SEC. 1610. DEFINITIONS.

  ``For purposes of this title--
          ``(1) The term `Secretary' means the Secretary of Education.
          ``(2) Fully qualified.--The term `fully qualified'--
                  ``(A) when used with respect to a public elementary 
                or secondary school teacher (other than a teacher 
                teaching in a public charter school), 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; 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; or
                          ``(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 high 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.
          ``(3) The term `scientifically-based research'--
                  ``(A) means the application of rigorous, systematic, 
                and objective procedures; and
                  ``(B) shall include research that--
                          ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                          ``(ii) involves rigorous data analyses that 
                        are adequate to test the stated hypotheses and 
                        justify the general conclusions drawn;
                          ``(iii) relies on measurements or 
                        observational methods that provide valid data 
                        across evaluators and observers and across 
                        multiple measurements and observations; and
                          ``(iv) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.

``SEC. 1611. 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 48.6 million 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 the Congress that 
Federal and State educational agencies should reduce the paperwork 
requirements placed on schools, teachers, principals, and other 
administrators.''.

                  PART E--COMPREHENSIVE SCHOOL REFORM

SEC. 171. COMPREHENSIVE SCHOOL REFORM.

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

                 ``PART G--COMPREHENSIVE SCHOOL REFORM

``SEC. 1701. COMPREHENSIVE SCHOOL REFORM.

  ``(a) Findings and Purpose.--
          ``(1) Findings.--Congress finds the following:
                  ``(A) A number of schools across the country have 
                shown impressive gains in student performance through 
                the use of comprehensive models for schoolwide change 
                that incorporate virtually all aspects of school 
                operations.
                  ``(B) No single comprehensive school reform model may 
                be suitable for every school, however, schools should 
                be encouraged to examine successful, externally 
                developed comprehensive school reform approaches as 
                they undertake comprehensive school reform.
                  ``(C) Comprehensive school reform is an important 
                means by which children are assisted in meeting 
                challenging State student performance standards.
          ``(2) Purpose.--The purpose of this section is to provide 
        financial incentives for schools to develop comprehensive 
        school reforms, based upon scientifically-based research and 
        effective practices that include an emphasis on basic academics 
        and parental involvement so that all children can meet 
        challenging State content and performance standards.
  ``(b) Program Authorized.--
          ``(1) In general.--The Secretary is authorized to provide 
        grants to State educational agencies to provide subgrants to 
        local educational agencies to carry out the purpose described 
        in subsection (a)(2).
          ``(2) Allocation.--
                  ``(A) Reservation.--Of the amount appropriated under 
                this section, the Secretary may reserve--
                          ``(i) not more than 1 percent for schools 
                        supported by the Bureau of Indian Affairs and 
                        in the United States Virgin Islands, Guam, 
                        American Samoa, and the Commonwealth of the 
                        Northern Mariana Islands; and
                          ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described under 
                        subsection (e).
                  ``(B) In general.--Of the amount of funds remaining 
                after the reservation under subparagraph (A), the 
                Secretary shall allocate to each State for a fiscal 
                year, an amount that bears the same ratio to the amount 
                appropriated for that fiscal year as the amount made 
                available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount 
                allocated under section 1124 to all States for that 
                year.
                  ``(C) Reallocation.--If a State does not apply for 
                funds under this section, the Secretary shall 
                reallocate any such funds to other States that the 
                Secretary considers in need of additional funds to 
                carry out the purposes of this section.
  ``(c) State Awards.--
          ``(1) State application.--
                  ``(A) In general.--Each State educational agency that 
                desires to receive a grant under this section shall 
                submit an application to the Secretary at such time, in 
                such manner and containing such other information as 
                the Secretary may reasonably require.
                  ``(B) Contents.--Each State application shall also 
                describe--
                          ``(i) the process and selection criteria by 
                        which the State educational agency, using 
                        expert review, will select local educational 
                        agencies to receive subgrants under this 
                        section.
                          ``(ii) how the agency will ensure that only 
                        comprehensive school reforms that are based on 
                        scientifically-based research receive funds 
                        under this section;
                          ``(iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms that are based on 
                        scientifically-based research;
                          ``(iv) how the agency will evaluate the 
                        implementation of such reforms and measure the 
                        extent to which the reforms resulted in 
                        increased student academic performance; and
                          ``(v) how the agency will provide, upon 
                        request, technical assistance to the local 
                        educational agency in evaluating, developing, 
                        and implementing comprehensive school reform.
          ``(2) Uses of funds.--
                  ``(A) In general.--Except as provided in subparagraph 
                (E), a State educational agency that receives an award 
                under this section shall use such funds to provide 
                competitive grants to local educational agencies 
                receiving funds under part A.
                  ``(B) Grant requirements.--A grant to a local 
                educational agency shall be--
                          ``(i) of sufficient size and scope to support 
                        the initial costs for the particular 
                        comprehensive school reform plan selected or 
                        designed by each school identified in the 
                        application of the local educational agency;
                          ``(ii) in an amount not less than $50,000 to 
                        each participating school; and
                          ``(iii) renewable for 2 additional 1-year 
                        periods after the initial 1-year grant is made 
                        if schools are making substantial progress in 
                        the implementation of their reforms.
                  ``(C) Priority.--The State, in awarding grants under 
                this paragraph, shall give priority to local 
                educational agencies that--
                          ``(i) plan to use the funds in schools 
                        identified as being in need of improvement or 
                        corrective action under section 1116(c); and
                          ``(ii) demonstrate a commitment to assist 
                        schools with budget allocation, professional 
                        development, and other strategies necessary to 
                        ensure the comprehensive school reforms are 
                        properly implemented and are sustained in the 
                        future.
                  ``(D) Grant consideration.--In making subgrant awards 
                under this part, the State educational agency shall 
                take into account the equitable distribution of awards 
                to different geographic regions within the State, 
                including urban and rural areas, and to schools serving 
                elementary and secondary students.
                  ``(E) Administrative Costs.--A State educational 
                agency that receives a grant award under this section 
                may reserve not more than 5 percent of such award for 
                administrative, evaluation, and technical assistance 
                expenses.
                  ``(F) Supplement.--Funds made available under this 
                section shall be used to supplement, not supplant, any 
                other Federal, State, or local funds that would 
                otherwise be available to carry out this section.
          ``(3) Reporting.--Each State educational agency that receives 
        an award under this section shall provide to the Secretary such 
        information as the Secretary may require, including the names 
        of local educational agencies and schools selected to receive 
        subgrant awards under this section, the amount of such award, 
        and a description of the comprehensive school reform model 
        selected and in use.
  ``(d) Local Awards.--
          ``(1) In general.--Each local educational agency that applies 
        for a subgrant under this section shall--
                  ``(A) identify which schools eligible for funds under 
                part A plan to implement a comprehensive school reform 
                program, including the projected costs of such a 
                program;
                  ``(B) describe the scientifically-based comprehensive 
                school reforms that such schools will implement;
                  ``(C) describe how the agency will provide technical 
                assistance and support for the effective implementation 
                of the scientifically-based school reforms selected by 
                such schools; and
                  ``(D) describe how the agency will evaluate the 
                implementation of such reforms and measure the results 
                achieved in improving student academic performance.
          ``(2) Components of the program.--A local educational agency 
        that receives a subgrant award under this section shall provide 
        such funds to schools that implement a comprehensive school 
        reform program that--
                  ``(A) employs innovative strategies and proven 
                methods for student learning, teaching, and school 
                management that are based on scientifically-based 
                research and effective practices and have been 
                replicated successfully in schools with diverse 
                characteristics;
                  ``(B) integrates a comprehensive design for effective 
                school functioning, including instruction, assessment, 
                classroom management, professional development, 
                parental involvement, and school management, that 
                aligns the school's curriculum, technology, 
                professional development into a comprehensive reform 
                plan for schoolwide change designed to enable all 
                students to meet challenging State content and 
                challenging student performance standards and addresses 
                needs identified through a school needs assessment;
                  ``(C) provides high-quality and continuous teacher 
                and staff professional development;
                  ``(D) includes measurable goals for student 
                performance and benchmarks for meeting such goals;
                  ``(E) is supported by teachers, principals, 
                administrators, and other professional staff;
                  ``(F) provides for the meaningful involvement of 
                parents and the local community in planning and 
                implementing school improvement activities;
                  ``(G) uses high quality external technical support 
                and assistance from an entity, which may be an 
                institution of higher education, with experience and 
                expertise in schoolwide reform and improvement;
                  ``(H) includes a plan for the evaluation of the 
                implementation of school reforms and the student 
                results achieved; and
                  ``(I) identifies how other resources, including 
                Federal, State, local, and private resources, available 
                to the school will be used to coordinate services to 
                support and sustain the school reform effort.
          ``(3) Special rule.--A school that receives funds to develop 
        a comprehensive school reform program shall not be limited to 
        using the approaches identified or developed by the Department 
        of Education, but may develop its own comprehensive school 
        reform programs for schoolwide change that comply with 
        paragraph (2).
  ``(e) Evaluation and Report.--
          ``(1) In general.--The Secretary shall develop a plan for a 
        national evaluation of the programs developed pursuant to this 
        section.
          ``(2) Evaluation.--This national evaluation shall evaluate 
        the implementation and results achieved by schools after 3 
        years of implementing comprehensive school reforms, and assess 
        the effectiveness of comprehensive school reforms in schools 
        with diverse characteristics.
          ``(3) Reports.--Prior to the completion of a national 
        evaluation, the Secretary shall submit an interim report 
        outlining first year implementation activities to the 
        Committees on Education and the Workforce and Appropriations of 
        the House of Representatives and the Committees on Health, 
        Education, Labor, and Pensions and Appropriations of the 
        Senate.
  ``(f) Definition.--The term `scientifically-based research'--
          ``(1) means the application of rigorous, systematic, and 
        objective procedures in the development of comprehensive school 
        reform models; and
          ``(2) shall include research that--
                  ``(A) employs systematic, empirical methods that draw 
                on observation or experiment;
                  ``(B) involves rigorous data analyses that are 
                adequate to test the stated hypotheses and justify the 
                general conclusions drawn;
                  ``(C) relies on measurements or observational methods 
                that provide valid data across evaluators and observers 
                and across multiple measurements and observations; and
                  ``(D) has been accepted by a peer-reviewed journal or 
                approved by a panel of independent experts through a 
                comparably rigorous, objective, and scientific review.
  ``(g) Authorization of Appropriations.--There are authorized to carry 
out this section $175,000,000 for fiscal year 2000 and such sums as may 
be necessary for each of the 4 succeeding fiscal years.

      TITLE II--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

SEC. 201. MAGNET SCHOOLS ASSISTANCE.

  Title V of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7201 et seq.) is amended to read a follows:

     ``TITLE V--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

                   ``PART A--MAGNET SCHOOL ASSISTANCE

``SEC. 5101. FINDINGS.

  ``The Congress finds that--
          ``(1) magnet schools are a significant part of our Nation's 
        effort to achieve voluntary desegregation in our Nation's 
        schools;
          ``(2) the use of magnet schools has increased dramatically 
        since the date of enactment of the Magnet Schools Assistance 
        program, with approximately 2,000,000 students nationwide now 
        attending such schools, of which more than 65 percent of the 
        students are nonwhite;
          ``(3) magnet schools offer a wide range of distinctive 
        programs that have served as models for school improvement 
        efforts;
          ``(4) in administering the Magnet Schools Assistance program, 
        the Federal Government has learned that--
                  ``(A) where magnet programs are implemented for only 
                a portion of a school's student body, special efforts 
                must be made to discourage the isolation of--
                          ``(i) magnet school students from other 
                        students in the school; and
                          ``(ii) students by racial characteristics;
                  ``(B) local educational agencies can maximize their 
                effectiveness in achieving the purposes of the Magnet 
                Schools Assistance program if such agencies have more 
                flexibility in the administration of such program in 
                order to serve students attending a school who are not 
                enrolled in the magnet school program;
                  ``(C) local educational agencies must be creative in 
                designing magnet schools for students at all academic 
                levels, so that school districts do not select only the 
                highest achieving students to attend the magnet 
                schools;
                  ``(D) consistent with desegregation guidelines, local 
                educational agencies must seek to enable participation 
                in magnet school programs by students who reside in the 
                neighborhoods where the programs operate; and
                  ``(E) in order to ensure that magnet schools are 
                sustained after Federal funding ends, the Federal 
                Government must assist school districts to improve 
                their capacity to continue to operate magnet schools at 
                a high level of performance; and
          ``(5) it is in the best interest of the Federal Government 
        to--
                  ``(A) continue the Federal Government's support of 
                school districts implementing court-ordered 
                desegregation plans and school districts voluntarily 
                seeking to foster meaningful interaction among students 
                of different racial and ethnic backgrounds, beginning 
                at the earliest stage of such students' education;
                  ``(B) ensure that all students have equitable access 
                to quality education that will prepare such students to 
                function well in a technologically oriented society and 
                a highly competitive economy;
                  ``(C) 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) ensure that grant recipients provide adequate 
                data which demonstrates an ability to improve student 
                achievement.

``SEC. 5102. 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 content standards and 
        challenging State student performance 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. 5103. 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. 5104. 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. 5105. ELIGIBILITY.

  ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive assistance under this part to carry 
out the purposes 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. 5106. 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 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 purposes 
                specified in section 5102;
                  ``(B) employ fully qualified teachers (as defined in 
                section 1119) 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. 5107. 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. 5108. 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 (as defined in section 1119), and instructional staff 
        where applicable, who are necessary for the conduct of programs 
        in magnet schools;
          ``(4) with respect to a magnet school program offered to less 
        than the entire student population of a school, for 
        instructional activities that--
                  ``(A) are designed to make available the special 
                curriculum that is offered by the magnet school project 
                to students who are enrolled in the school but who are 
                not enrolled in the magnet school program; and
                  ``(B) further the purposes of this 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.
  ``(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 content standards and challenging student performance 
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. 5109. 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. 5110. 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. 5111. EVALUATIONS.

  ``(a) Reservation.--The Secretary may reserve not more than two 
percent of the funds appropriated under section 5112(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. 5112. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

  ``(a) Authorization.--For the purpose of carrying out this part, 
there are authorized to be appropriated $120,000,000 for fiscal year 
2000 and such sums as may be necessary for each of fiscal years 2001 
through 2004.
  ``(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.

                     ``PART B--PUBLIC SCHOOL CHOICE

``SEC. 5201. SHORT TITLE.

  ``This part may be cited as the `Public School Choice Act of 1999'.

``SEC. 5202. FINDINGS AND PURPOSE.

  ``(a) Findings.--The Congress finds that--
          ``(1) a wide variety of educational opportunities, options, 
        and choices in the public school system is needed to help all 
        children achieve to high standards;
          ``(2) high-quality public school choice programs that are 
        genuinely open and accessible to all students (including poor, 
        minority, limited English proficient, and disabled students) 
        broaden educational opportunities and promote excellence in 
        education;
          ``(3) current research shows that--
                  ``(A) students learn in different ways, benefiting 
                from different teaching methods and instructional 
                settings; and
                  ``(B) family involvement in a child's education is a 
                key factor supporting student achievement;
          ``(4) public school systems have begun to develop a variety 
        of innovative programs that offer expanded choices to parents 
        and students; and
          ``(5) the Federal Government should support and expand 
        efforts to give students and parents the high-quality public 
        school choices they seek, to help eliminate barriers to 
        effective public school choice, and to disseminate the lessons 
        learned from high-quality choice programs so that all public 
        schools can benefit from these efforts.
  ``(b) Purpose.--It is the purpose of this part to identify and 
support innovative approaches to high-quality public school choice by 
providing financial assistance for the demonstration, development, 
implementation, and evaluation of, and dissemination of information 
about, public school choice projects that stimulate educational 
innovation for all public schools and contribute to standards-based 
school reform efforts.

``SEC. 5203. GRANTS.

  ``(a) In General.--From funds appropriated under section 5206(a) and 
not reserved under section 5206(b), the Secretary is authorized to make 
grants to State and local educational agencies to support programs that 
promote innovative approaches to high-quality public school choice.
  ``(b) Duration.--Grants under this part shall not exceed three years.

``SEC. 5204. USES OF FUNDS.

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

``SEC. 5205. GRANT APPLICATION; PRIORITIES.

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

``SEC. 5206. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--For the purpose of carrying out this part, there 
are authorized to be appropriated $20,000,000 for fiscal year 2000 and 
such sums as may be necessary for each of the 4 succeeding fiscal 
years.
  ``(b) Reservation for Evaluation, Technical Assistance, and 
Dissemination.--From the amount appropriated under subsection (a) for 
any fiscal year, the Secretary may reserve not more than 5 percent to 
carry out evaluations under subsection (c), to provide technical 
assistance, and to disseminate information.
  ``(c) Evaluations.--The Secretary may use funds reserved under 
subsection (b) to carry out one or more evaluations of programs 
assisted under this part, which shall, at a minimum, address--
          ``(1) how, and the extent to which, the programs supported 
        with funds under this part promote educational equity and 
        excellence; and
          ``(2) the extent to which public schools of choice supported 
        with funds under this part are--
                  ``(A) held accountable to the public;
                  ``(B) effective in improving public education; and
                  ``(C) open and accessible to all students.

``SEC. 5207. DEFINITIONS.

  ``For purposes of this part:
          ``(1) High-poverty local educational agency.--The term `high-
        poverty local educational agency' means a local educational 
        agency in which--
                  ``(A) the percentage of children, ages 5 to 17, from 
                families with incomes below the poverty line (as 
                defined by the Office of Management and Budget and 
                revised annually in accordance with section 673(2) of 
                the Community Services Block Grant Act (42 U.S.C. 
                9902(2))) applicable to a family of the size involved 
                for the most recent fiscal year for which satisfactory 
                data are available is 20 percent or greater; or
                  ``(B) the number of such children exceeds 10,000.
          ``(2) Other terms.--Other terms used in this part shall have 
        the meaning given such terms in section 14101 (20 U.S.C. 
        8801).''.

SEC. 202. CONTINUATION OF AWARDS.

  Notwithstanding the amendment made by section 201, any local 
educational agency or consortium of such agencies that was awarded a 
grant under section 5111 of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7211) 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--TEACHER LIABILITY PROTECTION

SEC. 301. TEACHER LIABILITY PROTECTION.

  The Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et 
seq.) is amended by adding at the end the following:

                ``TITLE XV--TEACHER LIABILITY PROTECTION

``SEC. 15001. SHORT TITLE.

  ``This title may be cited as the `Teacher Liability Protection Act of 
1999'.

``SEC. 15002. FINDINGS AND PURPOSE.

  ``(a) Findings.--Congress makes the following findings:
          ``(1) The ability of teachers, principals and other school 
        professionals to teach, inspire and shape the intellect of our 
        Nation's elementary and secondary school students is deterred 
        and hindered by frivolous lawsuits and litigation.
          ``(2) Each year more and more teachers, principals and other 
        school professionals face lawsuits for actions undertaken as 
        part of their duties to provide millions of school children 
        quality educational opportunities.
          ``(3) Too many teachers, principals and other school 
        professionals face increasingly severe and random acts of 
        violence in the classroom and in schools.
          ``(4) Providing teachers, principals and other school 
        professionals a safe and secure environment is an important 
        part of the effort to improve and expand educational 
        opportunities.
          ``(5) Clarifying and limiting the liability of teachers, 
        principals and other school professionals who undertake 
        reasonable actions to maintain order, discipline and an 
        appropriate educational environment is an appropriate subject 
        of Federal legislation because--
                  ``(A) the scope of the problems created by the 
                legitimate fears of teachers, principals and other 
                school professionals about frivolous, arbitrary or 
                capricious lawsuits against teachers is of national 
                importance; and
                  ``(B) millions of children and their families across 
                the Nation depend on teachers, principals and other 
                school professionals for the intellectual development 
                of children.
  ``(b) Purpose.--The purpose of this title is to provide teachers, 
principals and other school professionals the tools they need to 
undertake reasonable actions to maintain order, discipline and an 
appropriate educational environment.

``SEC. 15003. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

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

``SEC. 15004. LIMITATION ON LIABILITY FOR TEACHERS.

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

``SEC. 15005. LIABILITY FOR NONECONOMIC LOSS.

  ``(a) General Rule.--In any civil action against a teacher, based on 
an action of a teacher acting within the scope of the teacher's 
responsibilities to a school or governmental entity, the liability of 
the teacher for noneconomic loss shall be determined in accordance with 
subsection (b).
  ``(b) Amount of Liability.--
          ``(1) In general.--Each defendant who is a teacher, shall be 
        liable only for the amount of noneconomic loss allocated to 
        that defendant in direct proportion to the percentage of 
        responsibility of that defendant (determined in accordance with 
        paragraph (2)) for the harm to the claimant with respect to 
        which that defendant is liable. The court shall render a 
        separate judgment against each defendant in an amount 
        determined pursuant to the preceding sentence.
          ``(2) Percentage of responsibility.--For purposes of 
        determining the amount of noneconomic loss allocated to a 
        defendant who is a teacher under this section, the trier of 
        fact shall determine the percentage of responsibility of that 
        defendant for the claimant's harm.

``SEC. 15006. DEFINITIONS.

  For purposes of this title:
          ``(1) Economic loss.--The term `economic loss' means any 
        pecuniary loss resulting from harm (including the loss of 
        earnings or other benefits related to employment, medical 
        expense loss, replacement services loss, loss due to death, 
        burial costs, and loss of business or employment opportunities) 
        to the extent recovery for such loss is allowed under 
        applicable State law.
          ``(2) Harm.--The term `harm' includes physical, nonphysical, 
        economic, and noneconomic losses.
          ``(3) Noneconomic losses.--The term `noneconomic losses' 
        means losses for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation and all other 
        nonpecuniary losses of any kind or nature.
          ``(4) School.--The term `school' means a public or private 
        kindergarten, a public or private elementary school or 
        secondary school (as defined in section 14101, or a home 
        school.
          ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, any other territory or possession of the United 
        States, or any political subdivision of any such State, 
        territory, or possession.
          ``(6) Teacher.--The term `teacher' means a teacher, 
        instructor, principal, administrator, or other educational 
        professional that works in a school, a local school board and 
        any member of such board, and a local educational agency and 
        any employee of such agency.

``SEC. 15007. EFFECTIVE DATE.

  ``(a) In General.--This title shall take effect 90 days after the 
date of enactment of the Student Results Act of 1999.
  ``(b) Application.--This title applies to any claim for harm caused 
by an act or omission of a teacher if that claim is filed on or after 
the effective date of the Student Results Act of 1999, without regard 
to whether the harm that is the subject of the claim or the conduct 
that caused the harm occurred before such effective date.''.

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

       Subtitle A--Elementary and Secondary Education Act of 1965

SEC. 401. AMENDMENTS.

  Part A of title IX of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801 et seq.) is amended to read as follows:

                       ``PART A--INDIAN EDUCATION

``SEC. 9101. FINDINGS.

  ``Congress finds that--
          ``(1) the Federal Government has a special responsibility to 
        ensure that educational programs for all American Indian and 
        Alaska Native children and adults--
                  ``(A) are based on high-quality, internationally 
                competitive content standards and student performance 
                standards and build on Indian culture and the Indian 
                community;
                  ``(B) assist local educational agencies, Indian 
                tribes, and other entities and individuals in providing 
                Indian students the opportunity to achieve 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 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. 9102. PURPOSE.

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

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

``SEC. 9111. PURPOSE.

  ``It is the purpose of this subpart 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 content standards and 
        State student performance 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. 9112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  ``(a) In General.--
          ``(1) Enrollment requirements.--A local educational agency 
        shall be eligible for a grant under this subpart for any fiscal 
        year if the number of Indian children eligible under section 
        9117 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 subpart does not establish a 
        parent committee under section 9114(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 subpart, except that any such tribe is not subject to 
        section 9114(c)(4), section 9118(c), or section 9119.

``SEC. 9113. 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 
        subpart an amount equal to the product of--
                  ``(A) the number of Indian children who are eligible 
                under section 9117 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 9112(b)) that is eligible for a grant under section 
        9112, and a school that is operated or supported by the Bureau 
        of Indian Affairs that is eligible for a grant under subsection 
        (d), that submits an application that is approved by the 
        Secretary, shall, subject to appropriations, receive a grant 
        under this subpart in an amount that is not less than $3,000.
          ``(2) Consortia.--Local educational agencies may form a 
        consortium for the purpose of obtaining grants under this 
        subpart.
          ``(3) Increase.--The Secretary may increase the minimum grant 
        under paragraph (1) to not more than $4,000 for all grantees if 
        the Secretary 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 contractwith, 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 subpart shall submit an application in 
accordance with section 9114, and shall otherwise be treated as a local 
educational agency for the purpose of this subpart, except that such 
school shall not be subject to section 9114(c)(4), section 9118(c), or 
section 9119.
  ``(e) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 9162(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. 9114. APPLICATIONS.

  ``(a) Application Required.--Each local educational agency that 
desires to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
  ``(b) Comprehensive Program Required.--Each application submitted 
under subsection (a) shall include a 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 
        subpart will be used for activities described in section 9115;
          ``(5) describes the professional development opportunities 
        that will be provided, as needed, to ensure that--
                  ``(A) teachers and other school professionals who are 
                new to the Indian community are prepared to work with 
                Indian children; and
                  ``(B) all teachers who will be involved in programs 
                assisted under this subpart have been properly trained 
                to carry out such programs; and
          ``(6) describes how the local educational agency--
                  ``(A) will periodically assess the progress of all 
                Indian children enrolled in the schools of the local 
                educational agency, including Indian children who do 
                not participate in programs assisted under this 
                subpart, in meeting the goals described in paragraph 
                (2);
                  ``(B) will provide the results of each assessment 
                referred to in subparagraph (A) to--
                          ``(i) the committee of parents described in 
                        subsection (c)(4); and
                          ``(ii) the community served by the local 
                        educational agency; and
                  ``(C) is responding to findings of any previous 
                assessments that are similar to the assessments 
                described in subparagraph (A).
  ``(c) Assurances.--Each application submitted under subsection (a) 
shall include assurances that--
          ``(1) the local educational agency will use funds received 
        under this subpart only to supplement the level of funds that, 
        in the absence of the Federal funds made available under this 
        subpart, such agency would make available for the education of 
        Indian children, and not to supplant such funds;
          ``(2) the local educational agency will 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 subpart; and
                  ``(B) determine the extent to which funds provided to 
                the local educational agency under this subpart are 
                effective in improving the educational achievement of 
                Indian students served by such agency;
          ``(3) the program for which assistance is sought--
                  ``(A) is based on a comprehensive local assessment 
                and prioritization of the unique educational and 
                culturally related academic needs of the American 
                Indian and Alaska Native students 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 9115(c), 
                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) has adopted reasonable bylaws for the conduct 
                of the activities of the committee and abides by such 
                bylaws.

``SEC. 9115. AUTHORIZED SERVICES AND ACTIVITIES.

  ``(a) General Requirements.--Each local educational agency that 
receives a grant under this subpart shall use the grant funds, in a 
manner consistent with the purpose specified in section 9111, 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 9114(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 content standards and State 
        student performance standards;
          ``(4) integrated educational services in combination with 
        other programs that meet the needs of Indian children and their 
        families;
          ``(5) career preparation activities to enable Indian students 
        to participate in programs such as the programs supported by 
        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 9111; 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 subpart to support a schoolwide program under section 
1114 if--
          ``(1) the committee composed of parents established pursuant 
        to section 9114(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 9111.
  ``(d) Limitation on Administrative Costs.--Not more than 5 percent of 
the funds provided to a grantee under this subpart for any fiscal year 
may be used for administrative purposes.

``SEC. 9116. INTEGRATION OF SERVICES AUTHORIZED.

  ``(a) Plan.--An entity receiving funds under this subpart may submit 
a plan to the Secretary for the integration of education and related 
services provided to Indian students.
  ``(b) 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 any Federal program, or portion thereof, 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 subpart;
          ``(4) describe the way in which services are to be integrated 
        and delivered and the results expected from the plan;
          ``(5) identify the projected expenditures under the plan in a 
        single budget;
          ``(6) identify the 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 9114(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 subpart 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 date of enactment of the Student Results Act of 
1999, 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 a 
        specific 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 part shall be construed 
so as to interfere with the ability of the Secretary or the lead agency 
to fulfill the responsibilities for the safeguarding of Federal funds 
pursuant to 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 Student Results Act of 1999, 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 Student Results Act of 1999, 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 andrelated 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. 9117. STUDENT ELIGIBILITY FORMS.

  ``(a) In General.--The Secretary shall require that, as part of an 
application for a grant under this subpart, each applicant shall 
maintain a file, with respect to each Indian child for whom the local 
educational agency provides a free public education, that contains a 
form that sets forth information establishing the status of the child 
as an Indian child eligible for assistance under this subpart and that 
otherwise meets the requirements of subsection (b).
  ``(b) Forms.--
          ``(1) In general.--The form described in subsection (a) shall 
        include--
                  ``(A) either--
                          ``(i)(I) the name of the tribe or band of 
                        Indians (as described in section 9161(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 9113, 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 9161(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 
        9113.
  ``(c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 9161.
  ``(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 9113, 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 subpart, the Secretary shall conduct a monitoring 
        and evaluation review of a sampling of the recipients of grants 
        under this subpart. The sampling conducted under this 
        subparagraph shall take into account the size of 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 subpart shall--
                  ``(A) be ineligible to apply for any other grant 
                under this part; 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 9113.
  ``(g) Tribal Grant and Contract Schools.--Notwithstanding any other 
provision of this section, in awarding funds under this subpart to a 
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 subpart (other than in the case 
described in subsection (g)(1)), the local educational agency shall--
          ``(1) establish a date on, or a period not longer than 31 
        consecutive days during which, the agency counts those 
        children, so long as that date or period occurs before the 
        deadline established by the Secretary for submitting an 
        application under section 9114; 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. 9118. PAYMENTS.

  ``(a) In General.--Subject to subsections (b) and (c), the Secretary 
shall pay to each local educational agency that submits an application 
that is approved by the Secretary under this subpart the amount 
determined under section 9113. The Secretary shall notify the local 
educational agency of the amount of the payment not later than June 1 
of the year for which the Secretary makes the payment.
  ``(b) Payments Taken Into Account by the State.--The Secretary may 
not make a grant under this subpart to a local educational agency for a 
fiscal year if, for such fiscal year, the State in which the local 
educational agency is located takes into consideration payments made 
under this subpart in determining the eligibility of the local 
educational agency for State aid, or the amount of the State aid, with 
respect to the free public education of children during such fiscal 
year or the preceding fiscal year.
  ``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
          ``(1) In general.--The Secretary may not pay a local 
        educational agency the full amount of a grant award determined 
        under section 9113 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 subpart 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 
subpart, any amounts that--
          ``(1) based on estimates made by local educational agencies 
        or other information, the Secretary determines will not be 
        needed by such agencies to carry out approved programs under 
        this subpart; or
          ``(2) otherwise become available for reallocation under this 
        subpart.

``SEC. 9119. STATE EDUCATIONAL AGENCY REVIEW.

  ``Before submitting an application to the Secretary under section 
9114, 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.

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

``SEC. 9121. 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 subpart with--
                  ``(A) other programs funded under this Act; and
                  ``(B) other Federal programs operated for the benefit 
                of American Indian and Alaska Native children.
  ``(b) Eligible Entities.--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;
                  ``(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 subpart for any fiscal year may be 
used for administrative purposes.

``SEC. 9122. 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).

               ``Subpart 3--National Research Activities

``SEC. 9141. NATIONAL ACTIVITIES.

  ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 9162(b) for each fiscal year to--
          ``(1) conduct research related to effective approaches for 
        the education of Indian children and adults;
          ``(2) evaluate federally assisted education programs from 
        which Indian children and adults may benefit;
          ``(3) collect and analyze data on the educational status and 
        needs of Indians; and
          ``(4) carry out other activities that are consistent with the 
        purpose of this part.
  ``(b) Eligibility.--The Secretary may carry out any of the activities 
described in subsection (a) directly or through grants to, or contracts 
or cooperative agreements with Indian tribes, Indian organizations, 
State educational agencies, local educational agencies, institutions of 
higher education, including Indian institutions of higher education, 
and other public and private agencies and institutions.
  ``(c) Coordination.--Research activities supported under this 
section--
          ``(1) shall be carried out in consultation with the Office of 
        Educational Research and Improvement to assure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; 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.

                  ``Subpart 4--Federal Administration

``SEC. 9151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  ``(a) Membership.--There is established a National Advisory Council 
on Indian Education (hereafter in this section referred to as the 
`Council'), which shall--
          ``(1) consist of 15 Indian members, who shall be appointed by 
        the President from lists of nominees furnished, from time to 
        time, by Indian tribes and organizations; and
          ``(2) represent different geographic areas of the United 
        States.
  ``(b) Duties.--The Council shall--
          ``(1) advise the Secretary concerning the funding and 
        administration (including the development of regulations and 
        administrative policies and practices) of any program, 
        including any program established under this part--
                  ``(A) with respect to which the Secretary has 
                jurisdiction; and
                  ``(B)(i) that includes Indian children or adults as 
                participants; or
                  ``(ii) that may benefit Indian children or adults;
          ``(2) make recommendations to the Secretary for filling the 
        position of Director of Indian Education whenever a vacancy 
        occurs; and
          ``(3) submit to 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. 9152. PEER REVIEW.

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

``SEC. 9153. PREFERENCE FOR INDIAN APPLICANTS.

  ``In making grants under subpart 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. 9154. 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.

       ``Subpart 5--Definitions; Authorizations of Appropriations

``SEC. 9161. DEFINITIONS.

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

``SEC. 9162. AUTHORIZATIONS OF APPROPRIATIONS.

  ``(a) Subpart 1.--For the purpose of carrying out subpart 1 of this 
part, there are authorized to be appropriated $62,000,000 for fiscal 
year 2000, and such sums as may be necessary for each of fiscal years 
2001 through 2004.
  ``(b) Subparts 2 and 3.--For the purpose of carrying out subparts 2 
and 3 of this part, there are authorized to be appropriated $4,000,000 
for fiscal year 2000, and such sums as may be necessary for each of the 
fiscal years 2001 through 2004.''.

                   PART B--NATIVE HAWAIIAN EDUCATION

SEC. 402. NATIVE HAWAIIAN EDUCATION.

  Part B of title IX of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7901 et seq.) is repealed.

                    PART C--ALASKA NATIVE EDUCATION

SEC. 403. ALASKA NATIVE EDUCATION.

  Part C of title IX of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7931 et seq.) is amended--
          (1) by repealing sections 9304 through 9306 and inserting the 
        following:

``SEC. 9304. 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 part.
          ``(2) Permissible activities.--Programs under this part may 
        include--
                  ``(A) the development and implementation of plans, 
                methods, and strategies to improve the education of 
                Alaska Natives;
                  ``(B) the development of curricula and educational 
                programs that address the educational needs of Alaska 
                Native students, including--
                          ``(i) curriculum materials that reflect the 
                        cultural diversity or the contributions of 
                        Alaska Natives;
                          ``(ii) instructional programs that make use 
                        of Native Alaskan languages; and
                          ``(iii) networks that introduce successful 
                        programs, materials, and techniques to urban 
                        and rural schools;
                  ``(C) professional development activities for 
                educators, including--
                          ``(i) programs to prepare teachers to address 
                        the cultural diversity and unique needs of 
                        Alaska Native students;
                          ``(ii) in-service programs to improve the 
                        ability of teachers to meet the unique needs of 
                        Alaska Native students; and
                          ``(iii) 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 part; and
                  ``(I) other activities, consistent with the purposes 
                of this part, to meet the educational needs of Alaska 
                Native children and adults.
          ``(3) Home instruction programs.--Home instruction programs 
        for Alaska Native preschool children 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 $10,000,000 for fiscal year 2000, and such sums as may be 
necessary for each of the fiscal years 2001 through 2004 to carry out 
this part.'';
          (2) in section 9307--
                  (A) by amending subsection (b) to read as follows:
  ``(b) Applications.--State and local educational agencies may apply 
for an award under this part only as part of a consortium involving an 
Alaska Native organization. This consortium may include other eligible 
applicants.'';
                  (B) by amending subsection (d) to read as follows:
  ``(d) Local Educational Agency Coordination.--Each applicant for an 
award under this part shall inform each local educational agency 
serving students who would participate in the project about its 
application.''; and
                  (C) by striking subsection (e); and
          (3) by redesignating sections 9307 and 9308 as sections 9305 
        and 9306, respectively.

       Subtitle B--Amendments to the Education Amendments of 1978

SEC. 410. AMENDMENTS TO THE EDUCATIONS 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; Declarations of Purposes.--
          ``(1) 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 performance standards 
        expected of all students.
          ``(2) Declarations of purposes.--Local school boards for 
        schools operated by the Bureau of Indian Affairs, in 
        cooperation and consultation with their tribal governing bodies 
        and their communities, are encouraged to adopt declarations of 
        purposes of education for their communities taking into account 
        the implications of such purposes on education in their 
        communities and for their schools. In adopting such 
        declarations of purpose, the school boards shall consider the 
        effect those declarations may have on the motivation of 
        students and faculties. Such declarations shall represent the 
        aspirations of the community for the kinds of people the 
        community would like its children to become, and shall include 
        assurances that all learners will become accomplished in things 
        and ways important to them and respected by their parents and 
        communities, shaping worthwhile and satisfying lives for 
        themselves, exemplifying the best values of the community and 
        humankind, and becoming increasingly effective in shaping the 
        character and quality of the world all learners share. These 
        declarations of purpose shall influence the standards for 
        accreditation to be accepted by the schools.
  ``(b) Studies and Surveys Relating to Standards.--Not later than 1 
year after the date of the enactment of the Student Results Act of 
1999, 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 equal 
educational opportunity for such children.
  ``(c) Revision of Minimum Academic Standards.--
          ``(1) In general.--Not later than 1 year after the date of 
        the enactment of the Student Results Act of 1999, 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 1 tribe but within the 
                        boundaries of more than 1 State, with the 
                        standards of the State improvement plan of 1 
                        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 than 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 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 as 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 than 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 distributionof 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. 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 1 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, 1999, 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 1 
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 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 enactment of the Student Results Act of 1999.
  ``(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 
                enactment of the Student Results Act of 1999, 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 Student Results Act of 1999.
  ``(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 Student 
        Results Act of 1999, 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 Student Results 
Act of 1999, 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 to 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 5 
                succeeding years.
          ``(2) Program for operation and maintenance.--
                  ``(A) In general.--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
                          ``(v) a system for the conduct of routine 
                        preventive maintenance.
                  ``(B) 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 Student Results Act of 1999.
  ``(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 annualamount 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, 2001, 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 2001, and for each 
        subsequent fiscal year, the Secretary shall adjust the formula 
        established under subsection (a) to--
                  ``(A) use 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) consider 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) take 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) use 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; and
                  ``(E) use 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 subparagraph (E) 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 \1/4\ 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 school site; 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 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 $200,000.00 
        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 1 or more other programs under a contract or 
        grant provided under the Indian Self-Determination and 
        Education Assistance Act;
the Secretary shall ensure that the Indian tribe or tribal organization 
is provided with the full amount of the administrative costs that are 
associated with operating the contract or grant school, and of the 
indirect costs, that are associated with all of such other programs, 
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 2 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.--
          ``(1) Studies.--Not later than 120 days after the date of 
        enactment of the Student Results Act of 1999, 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 Student Results Act of 1999, 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 Student Results 
Act of 1999, 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 enactment of 
        the Student Results Act of 1999, 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.
          ``(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.--(A) 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.
          ``(B) The supervisor--
                  ``(i) shall put into effect the decisions of the 
                school board;
                  ``(ii) 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
                  ``(iii) may appeal any such action of the local 
                school board to the appropriate education line officer 
                of the Bureau agency by filing a written statement 
                describing the action and the reasons the supervisor 
                believes such action should be overturned. A copy of 
                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 title 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 1 
        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 
enactment of the Student Results Act of 1999, 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
                  ``(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 enactment of the Student Results Act 
        of 1999 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 
        enactment of the Student Results Act of 1999, 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 enactment of the Student 
        Results Act of 1999, the new rate may be applied to the 
        compensation of employees of the school who worked at the 
        school on the date of 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 enactment of the Student Results Act of 1999, the school 
        board 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 3 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 1 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 title 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, 2001, 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, 2002, 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, 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 enactment of this Act and the Secretary is authorized to 
        repeal any regulation inconsistent with the provisions of this 
        Act.
          ``(2) General applicability of certain rules; legal authority 
        to be stated.--Regulations required to be adopted under 
        sections 2006 through 2018 and any revisions of the standards 
        developed under section 2001 or 2002 shall be deemed rules of 
        general applicability prescribed for the administrations of an 
        applicable program for the purposes of section 437 of the 
        Elementary and Secondary Education Amendments of 1967 and shall 
        be promulgated, submitted for congressional review, and take 
        effect in accordance with the provisions of such section. Such 
        regulations 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 enactment of this section, provided that the authority of 
        the Secretary to promulgate regulations under this part and the 
        Tribally Controlled Schools Act of 1988 shall expire if final 
        regulations are not promulgated within the time stated in this 
        sentence. If the Secretary determines that an extension of the 
        deadline in the preceding sentence is necessary, the Secretary 
        may submit proposed legislation to Congress for extension of 
        such deadline.
          ``(2) 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 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 1 tribe that has less than 500 
                        members; or
                          ``(ii) by 1 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
                  ``(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 or other similar programs operated 
by the Bureau shall coordinate 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 2000 and such sums as may be 
necessary for each of the fiscal years 2001, 2002, 2003, and 2004.

``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 2000 and such sums as may be 
necessary for each of the fiscal years 2001, 2002, 2003, and 2004.

``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) Financial plan.--The term `financial plan' means a plan 
        of services provided by each Bureau school.
          ``(8) 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.
          ``(9) 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.
          ``(10) 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.
          ``(11) Office.--The term `Office' means the Office of Indian 
        Education Programs within the Bureau.
          ``(12) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
          ``(13) Supervisor.--The term `supervisor' means the 
        individual in the position of ultimate authority at a Bureau 
        school.
          ``(14) 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.
          ``(15) 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.''.

          Subtitle C--Tribally Controlled Schools Act of 1988

SEC. 420. TRIBALLY CONTROLLED SCHOOLS.

  Sections 5202 through 5212 of Public Law 100-297 (25 U.S.C. 2501 et 
seq.) are amended to read as follows:

``SEC. 5202. FINDINGS.

  ``Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, Indians, finds that--
          ``(1) the Indian Self-Determination and Education Assistance 
        Act, which was a product of the legitimate aspirations and a 
        recognition of the inherent authority of Indian nations, was 
        and is a crucial positive step towards tribal and community 
        control;
          ``(2) 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 theschools 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) 1 grant per tribe or organization per fiscal year.--Not 
        more than 1 grant may be provided under this part with respect 
        to any Indian tribe or tribal organization for any fiscal year.
          ``(2) Nonsectarian use.--Funds 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.
  ``(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 enactment of the Student Results Act of 1999 
        shall be reviewed under the guidelines and regulations for 
        applications submitted under the Indian Self-Determination and 
        Education Assistance Act that were in effect at the time the 
        application was submitted, unless the Indian tribe or tribal 
        organization elects to have the application reviewed under the 
        provisions of subsection (b).
  ``(b) Additional Requirements for Bureau Funded Schools and Certain 
Electing Schools.--
          ``(1) Bureau funded schools.--A school that was a Bureau 
        funded school under title XI of the Education Amendments of 
        1978 on the date of enactment of the Student Results Act of 
        1999, 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.
  ``(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.

``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 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 2 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 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 insured 
                by an 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(f) (relating to limitation on remedies 
        relating to cost allowances).
          ``(9) Section 106(j) (relating to use of funds for matching 
        or cost participation requirements).
          ``(10) Section 106(k) (relating to allowable uses of funds).
          ``(11) Section 108(c) (Model Agreements provisions (1)(a)(5) 
        (relating to limitations of costs), (1)(a)(7) (relating to 
        records and monitoring), (1)(a)(8) (relating to property), and 
        (a)(1)(9) (relating to availability of funds).
          ``(12) Section 109 (relating to reassumption).
          ``(13) Section 111 (relating to sovereign immunity and 
        trusteeship rights unaffected).
  ``(b) Election for Grant in Lieu of Contract.--
          ``(1) In general.--Contractors for activities to which this 
        part applies who have entered into a contract under the Indian 
        Self-Determination and Education Assistance Act that is in 
        effect upon the date of enactment of the Student Results Act of 
        1999 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) 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) 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 a `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 V--GIFTED AND TALENTED CHILDREN

SEC. 501. AMENDMENT TO ESEA RELATING TO GIFTED AND TALENTED CHILDREN.

  Part B of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8031 et seq.) is amended to read as follows:

                 ``PART B--GIFTED AND TALENTED CHILDREN

``SEC. 10201. SHORT TITLE.

  ``This part may be cited as the `Jacob K. Javits Gifted and Talented 
Students Education Act of 1999'.

``SEC. 10202. FINDINGS.

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

``SEC. 10203. CONDITIONS ON EFFECTIVENESS OF SUBPARTS 1 AND 2.

  ``(a) Subpart 1.--Subpart 1 shall be in effect only for a fiscal year 
for which subpart 2 is not in effect.
  ``(b) Subpart 2.--
          ``(1) In general.--Subpart 2 shall be in effect only for--
                  ``(A) the first fiscal year for which the amount 
                appropriated to carry out this part equals or exceeds 
                $50,000,000; and
                  ``(B) all succeeding fiscal years.
          ``(2) Continuation of awards.--Notwithstanding any other 
        provision of this part, a State receiving a grant under subpart 
        2--
                  ``(A) shall give special consideration to a request 
                for the continuation of an award within the State, made 
                by any public or private agency, institution, or 
                organization that was awarded a grant or contract under 
                subpart 1 for a fiscal year for which such subpart was 
                in effect; and
                  ``(B) may use funds received under such grant for the 
                purpose of permitting the agency, institution, or 
                organization to continue to receive funds in accordance 
                with the terms of such award until the date on which 
                the award period terminates under such terms.

                ``Subpart 1--Discretionary Grant Program

``SEC. 10211. 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 a nationwide 
capability in elementary and secondary schools to meet the special 
educational needs of gifted and talented students.

``SEC. 10212. GRANTS TO MEET EDUCATIONAL NEEDS OF GIFTED AND TALENTED 
                    STUDENTS.

  ``(a) Establishment of Program.--
          ``(1) In general.--Subject to section 10203, 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.--Each entity desiring assistance under 
        this subpart shall submit an application to the Secretary at 
        such time, in such manner, and containing such information as 
        the Secretary may reasonably require. Each such application 
        shall describe how--
                  ``(A) the proposed gifted and talented services, 
                materials, and methods can be adapted, if appropriate, 
                for use by all students; and
                  ``(B) the proposed programs can be evaluated.
  ``(b) Uses of Funds.--Programs and projects assisted under this 
subpart may include the following:
          ``(1) Carrying out--
                  ``(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) 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. 10213. PROGRAM PRIORITIES.

  ``(a) General Priority.--In the administration of this subpart, the 
Secretary shall give highest priority to programs and projects designed 
to develop new information that--
          ``(1) improves the capability of schools to plan, conduct, 
        and improve programs to identify and serve gifted and talented 
        students; and
          ``(2) assists schools in the identification of, and provision 
        of services to, gifted and talented students who may not be 
        identified and served through traditional assessment methods 
        (including economically disadvantaged individuals, individuals 
        of limited English proficiency, and individuals with 
        disabilities).
  ``(b) Service Priority.--In approving applications for assistance 
under section 10212(a)(2), the Secretary shall ensure that in each 
fiscal year at least \1/2\ of the applications approved under such 
section address the priority described in subsection (a)(2).
  ``(c) Subgrants to Local Educational Agencies for Authorized 
Activities.--
          ``(1) In general.--For fiscal year 2001 and succeeding fiscal 
        years, the Secretary shall ensure that a percentage of the 
        excess amount described in paragraph (2) is used to increase 
        (in proportion to any increases in such excess amounts) the 
        number and size of the grants under this subpart to State 
        educational agencies to begin implementing activities described 
        in section 10222(b) through competitive subgrants to local 
        educational agencies.
          ``(2) Excess amount.--For purposes of paragraph (1), the 
        excess amount described in this paragraph is, for fiscal year 
        2001 and succeeding fiscal years, the amount (if any) by which 
        the funds appropriated to carry out this subpart for the year 
        exceed such funds for fiscal year 2000.

``SEC. 10214. GENERAL PROVISIONS FOR SUBPART.

  ``(a) Review, Dissemination, and Evaluation.--The Secretary--
          ``(1) shall use a peer review process in reviewing 
        applications under this subpart;
          ``(2) shall ensure that information on the activities and 
        results of programs and projects funded under this subpart is 
        disseminated to appropriate State and local educational 
        agencies and other appropriate organizations, including 
        nonprofit private organizations; and
          ``(3) shall evaluate the effectiveness of programs under this 
        subpart in accordance with section 14701, 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 Student Results Act of 1999.
  ``(b) Program Operations.--The Secretary shall ensure that the 
programs under this subpart are administered within the Department by a 
person who has recognized professional qualifications and experience in 
the field of the education of gifted and talented students and who--
  ``(1) shall administer and coordinate the programs authorized under 
this subpart;
          ``(2) shall serve as a focal point of national leadership and 
        information on the educational needs of gifted and talented 
        students and the availability of educational services and 
        programs designed to meet such needs; and
          ``(3) shall assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities which reflect the needs of gifted and talented 
        students.

                   ``Subpart 2--Formula Grant Program

``SEC. 10221. PURPOSE.

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

``SEC. 10222. ESTABLISHMENT OF PROGRAM; USE OF FUNDS.

  ``(a) In General.--In the case of each State that in accordance with 
section 10224 submits to the Secretary an application for a fiscal 
year, subject to section 10203, the Secretary shall make a grant for 
the year to the State for the uses specified in subsection (b). The 
grant shall consist of the allotment determined for the State under 
section 10223.
  ``(b) Authorized Activities.--Each State receiving a grant under this 
subpart shall use the funds provided under the grant to assist local 
educational agencies to develop or expand gifted and talented education 
programs through one or more of the following activities:
          ``(1) Development and implementation of programs to address 
        State and local needs for in-service training programs for 
        general educators, specialists in gifted and talented 
        education, administrators, or other personnel at the elementary 
        and secondary levels.
          ``(2) Making materials and services available through State 
        regional educational service centers, institutions of higher 
        education, or other entities.
          ``(3) Supporting innovative approaches and curricula used by 
        local educational agencies (or consortia of such agencies) or 
        schools or (consortia of schools).
          ``(4) Providing funds for challenging, high-level course 
        work, disseminated through new and emerging technologies 
        (including distance learning), for individual students or 
        groups of students in schools and local educational agencies 
        that do not have the resources otherwise to provide such course 
        work.
  ``(c) Competitive Process.--A State receiving a grant under this 
subpart shall distribute at least 95 percent of the amount of the grant 
to local educational agencies through a competitive process that 
results in an equitable distribution by geographic area within the 
State.
  ``(d) Limitations on Use of Funds.--
          ``(1) Course work provided through emerging technologies.--
        Activities under subsection (b)(4) may include development of 
        curriculum packages, compensation of distance-learning 
        educators, or other relevant activities, but funds provided 
        under this subpart may not be used for the purchase or 
        upgrading of technological hardware.
          ``(2) Administrative costs.--A State receiving a grant under 
        this subpart may use not more than 5 percent of the amount of 
        the grant for State administrative costs.

``SEC. 10223. ALLOTMENTS TO STATES.

  ``(a) Reservation of Funds.--From the amount made available to carry 
out this subpart for any fiscal year, the Secretary shall reserve \1/2\ 
of 1 percent for the Secretary of the Interior for programs under this 
subpart for teachers, other staff, and administrators in schools 
operated or funded by the Bureau of Indian Affairs.
  ``(b) State Allotments.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall allot the total amount made available to carry 
        out this subpart for any fiscal year and not reserved under 
        subsection (a) to the 50 States, the District of Columbia, and 
        the Commonwealth of Puerto Rico on the basis of their relative 
        populations of individuals aged 5 through 17, as determined by 
        the Secretary on the basis of the most recent satisfactory 
        data.
          ``(2) Minimum grant amount.--No State receiving an allotment 
        under paragraph (1) may receive less than \1/4\ of 1 percent of 
        the total amount allotted under such paragraph.
  ``(c) Reallotment.--If any State does not apply for an allotment 
under this section for any fiscal year, the Secretary shall reallot 
such amount to the remaining States in accordance with this section.

``SEC. 10224. APPLICATION.

  ``(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 
assurances that--
          ``(1) funds received under this subpart will be used to 
        support gifted and talented students in public schools and 
        public charter schools, including students from all economic, 
        ethnic, and racial backgrounds, students of limited English 
        proficiency, students with disabilities, and highly gifted 
        students;
          ``(2) not less than 95 percent of the amount of the funds 
        provided under the grant shall be used for the purpose of 
        making, in accordance with this subpart and on a competitive 
        basis, subgrants to local educational agencies;
          ``(3) funds received under this subpart shall be used only to 
        supplement, but not supplant, the amount of State and local 
        funds expended for specialized education and related services 
        provided for the education of gifted and talented students; and
          ``(4) the State shall develop procedures to evaluate program 
        effectiveness.
  ``(c) Approval.--To the extent funds are made available for this 
subpart, the Secretary shall approve an application of a State if such 
application meets the requirements of this section.

``SEC. 10225. ANNUAL REPORTING.

  ``Beginning 1 year after the date of the enactment of the Student 
Results Act of 1999, a State receiving a grant under this subpart shall 
submit an annual report to the Secretary that describes the number of 
students served and the activities supported with funds provided under 
this subpart. The report shall include a description of the measures 
taken to comply with paragraphs (1) and (4) of section 10224(b). To the 
extent practicable and otherwise authorized by law, this report shall 
be submitted as part of any consolidated State performance report for 
State formula grant programs under this Act.

   ``Subpart 3--National Center for Research and Development in the 
          Education of Gifted and Talented Children and Youth

``SEC. 10231. CENTER FOR RESEARCH AND DEVELOPMENT.

  ``(a) In General.--The Secretary (after consultation with experts in 
the field of the education of gifted and talented students) shall 
establish a National 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 
section 10212(b)(1).
  ``(b) Director.--Such National Center shall have a Director. The 
Secretary may authorize the Director to carry out such functions of the 
National Center as may be agreed upon through arrangements with 
institutions of higher education, State or local educational agencies, 
or other public or private agencies and organizations.
  ``(c) 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.

                    ``Subpart 4--General Provisions

``SEC. 10241. CONSTRUCTION.

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

``SEC. 10242. PARTICIPATION OF PRIVATE SCHOOL CHILDREN AND TEACHERS.

  ``In making grants and entering into contracts under this part, 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.

``SEC. 10243. DEFINITIONS.

  ``For purposes of this part:
          ``(1) The term `scientifically based research'--
                  ``(A) means the application of rigorous, systematic, 
                and objective procedures to obtain valid knowledge 
                relevant to the education of gifted and talented 
                children; 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.
          ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 10244. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) Subpart 1 or 2.--Subject to section 10203, there are authorized 
to be appropriated $10,000,000 to carry out subpart 1 or 2 for fiscal 
year 2000 and such sums as may be necessary for each of fiscal years 
2001 through 2004.
  ``(c) Subpart 3.--There are authorized to be appropriated to carry 
out subpart 3 $1,950,000 for each of fiscal years 2000 through 2004.''.

                  TITLE VI--RURAL EDUCATION ASSISTANCE

SEC. 601. RURAL EDUCATION.

  Part J of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8271 et seq.) is amended to read as follows:

                  ``PART J--RURAL EDUCATION INITIATIVE

``SEC. 10951. SHORT TITLE.

  ``This part may be cited as the `Rural Education Initiative Act of 
1999'.

``SEC. 10952. FINDINGS.

  ``Congress finds the following:
          ``(1) The National Center for Educational Statistics reports 
        that 46 percent of our Nation's public schools serve rural 
        areas.
          ``(2) While there are rural education initiatives identified 
        at the State and local level, no Federal education policy 
        focuses on the specific and unique needs of rural school 
        districts and schools.
          ``(3) 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.
          ``(4) 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.
          ``(5) 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 3 or more subject 
        areas than teachers in urban schools. Rural schools also face 
        other tough challenges, such as shrinking local tax bases, high 
        transportation costs, aging buildings, limited course 
        offerings, and limited resources.

              ``Subpart 1--Small and Rural School Program

``SEC. 10961. 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 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.
          ``(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 located in a community with a 
                Rural-Urban Continuum Code of 6, 7, 8, or 9, as 
                determined by the Secretary of Agriculture; 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 certification provided by the local educational 
        agency, or the State educational agency on behalf of the local 
        educational agency, that the local educational agency is 
        located in an area defined as rural by a governmental agency of 
        the State.
  ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II, IV, VI, parts A 
and C of title VII, and part I of title X.
  ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
  ``(e) Supplement Not Supplant.--Funds 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) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.

``SEC. 10962. PROGRAM AUTHORIZED.

  ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies 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) Eligibility.--
          ``(1) In general.--A local educational agency shall be 
        eligible to receive a grant under this section 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 located in a community with a 
                Rural-Urban Continuum Code of 6, 7, 8, or 9, as 
                determined by the Secretary of Agriculture; 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 certification provided by the local educational 
        agency, or the State educational agency on behalf of the local 
        educational agency, that the local educational agency is 
        located in an area defined as rural by a governmental agency of 
        the State.
  ``(c) Allocation.--
          ``(1) In general.--Except as provided in paragraph (3), the 
        Secretary shall award a grant to an eligible local educational 
        agency for a fiscal year in an amount equal to the initial 
        amount determined under paragraph (2) for the fiscal year minus 
        the total amount received under the provisions of law described 
        under section 10961(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.
          ``(5) 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.
  ``(d) Disbursal.--The Secretary shall disburse the funds awarded to a 
local educational agency under this section for a fiscal year not later 
than July 1 of that year.
  ``(e) 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.
  ``(f) 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. 10963. ACCOUNTABILITY.

  ``(a) Academic Achievement.--
          ``(1) In general.--Each local educational agency that uses or 
        receives funds under section 10961 or 10962 for a fiscal year 
        shall administer an assessment consistent with section 1111 of 
        title I.
          ``(2) Special rule.--Each local educational agency that uses 
        or receives funds under section 10961 or 10962 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 10961(c) shall--
          ``(1) after the 2d year that a local educational agency 
        participates in a program under section 10961 or 10962 and on 
        the basis of the results of the assessments described in 
        subsection (a), determine whether the students served by the 
        local educational agency participating in the program performed 
        in accordance with section 1111 of title I; and
          ``(2) only permit those local educational agencies that so 
        participated and met the requirements of section 1111(b)(2) of 
        title I to continue to so participate.

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

``SEC. 10971. PROGRAM AUTHORIZED.

  ``(a) Reservations.--From amounts appropriated under section 10982 
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 
        10982 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 10973 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 10982 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 10973 a specially qualified agency in 
                such State desiring a grant under this subpart shall 
                apply 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 
                located in a community with a Rural-Urban Continuum 
                Code of 6, 7, 8, or 9, as determined by the Secretary 
                of Agriculture.
          ``(2) Uses of funds.--Grant funds awarded to local 
        educational agencies or made available to schools under this 
        subpart shall be used for--
                  ``(A) educational technology, including software and 
                hardware;
                  ``(B) professional development;
                  ``(C) technical assistance;
                  ``(D) teacher recruitment and retention;
                  ``(E) parental involvement activities; or
                  ``(F) academic enrichment programs.

``SEC. 10972. 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. 10973. 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 to 
be achieved which may include specific educational goals and objectives 
relating to increased student academic achievement, decreased student 
drop-out rates, or such other factors that the State educational agency 
or specially qualified agency may choose to measure.

``SEC. 10974. 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 10973.
  ``(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 10971(b)(4)(A).
  ``(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. 10975. DEFINITIONS.

  ``For the purposes of 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 program under this subpart in a fiscal year, 
        that may apply directly to the Secretary for a grant in such 
        year in accordance with section 10971(b)(4).

                    ``Subpart 3--General Provisions

``SEC. 10981. DEFINITION.

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

``SEC. 10982. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this part 
$125,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of 4 succeeding fiscal years to be distributed equally between 
subparts 1 and 2.''.

    TITLE VII--MCKINNEY HOMELESS EDUCATION IMPROVEMENTS ACT OF 1999

SEC. 701. SHORT TITLE.

  This title may be cited as the ``Stewart B. McKinney Homeless 
Education Assistance Improvements Act of 1999''.

SEC. 702. FINDINGS.

  Congress makes the following findings:
          (1) An estimated 1,000,000 children in the United States will 
        experience homelessness this year.
          (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 4 
        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, homeless students still face 
        numerous barriers to education, including residency, 
        guardianship and registration requirements, as well as 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 need to remain in school so 
        that they acquire the skills necessary to escape poverty and 
        lead productive, healthy lives as adults.
          (6) In the 12 years since the passage of the McKinney Act, 
        educators and service providers have learned much about 
        policies and practices which help remove the barriers 
        described.

SEC. 703. PURPOSE.

  The purpose of this title is to strengthen subtitle B of title VII of 
the Stewart B. McKinney Homeless Assistance Act (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 such individuals receive a quality 
        education and secure their chance for a brighter future.

SEC. 704. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

  Subtitle B of title VII of the Stewart B. McKinney Homeless Education 
Assistance Act (42 U.S.C. 11431 et seq.) is amended to read as follows:

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

``SEC. 721. STATEMENT OF POLICY.

  ``It is the policy of 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 should 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 performance 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(c), 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 to all States for 
        that year, except that no State shall receive less than 
        $100,000.
          ``(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, 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) Definition.--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) In general.--(A) Subject to subparagraph (B), if the 
        amount allotted to the State educational agency for any fiscal 
        year under this subtitle exceeds the amount such agency 
        received for fiscal year 1990 under this subtitle, as the 
        subtitle was then in effect, such agency shall provide grants 
        to local educational agencies for purposes of section 723.
          ``(B) The State educational agency may reserve not more than 
        the greater of 5 percent of the amount such agency receives 
        under this subtitle for any fiscal year, or the amount such 
        agency received under this subtitle, as the subtitle was then 
        in effect, for fiscal year 1990, to conduct activities under 
        subsection (f) directly or through grants or contracts.
          ``(2) Special rule.--If the amount allotted to a State 
        educational agency for any fiscal year under this subtitle is 
        less than the amount such agency received for fiscal year 1990 
        under this subtitle, such agency, at such agency's discretion, 
        may provide grants to local educational agencies in accordance 
        with section 723 or may conduct activities under subsection (f) 
        directly or through grants or contracts.
          ``(3) Prohibition on segregating homeless students.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B) and section 723(a)(2)(B)(ii), in providing a free, 
                public education to a homeless child or youth, no State 
                receiving funds under this subtitle shall segregate 
                such child or youth, either in a separate school, or in 
                a separate program within a school, based solely on 
                such child or youth's status as homeless.
                  ``(B) Exception.--A State that has established a 
                separate school for homeless children in the fiscal 
                year preceding the date of the enactment of the Stewart 
                B. McKinney Homeless Education Assistance Improvement 
                Act of 1999 shall remain eligible to receive funds 
                under this subtitle for such program.
  ``(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 allowing homeless 
        children and youth to enroll in, attend, and succeed in, 
        school;
          ``(2) develop and carry out the State plan described in 
        subsection (g);
          ``(3) collect and transmit to the Secretary, 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 and youth who are preschool age, and families 
        of such children and youth; and
          ``(5) in order to improve the provision of comprehensive 
        education and related services to homeless children and youth 
        and their families, coordinate and collaborate with--
                  ``(A) educators, including child development and 
                preschool program personnel;
                  ``(B) providers of services to homeless and runaway 
                children and youth and homeless families (including 
                domestic violence agencies, shelter operators, 
                transitional housing facilities, runaway and homeless 
                youth centers, and transitional living programs for 
                homeless youth);
                  ``(C) local educational agency liaisons for homeless 
                children and youth; and
                  ``(D) community organizations and groups representing 
                homeless children and youth and their families.
  ``(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 describe how such 
        children and youth are or will be given the opportunity to meet 
        the same challenging State student performance standards all 
        students are expected to meet, shall describe the procedures 
        the State educational agency will use to identify such children 
        and youth in the State and to assess their special needs, and 
        shall--
                  ``(A) describe procedures for the prompt resolution 
                of disputes regarding the educational placement of 
                homeless children and youth;
                  ``(B) 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;
                  ``(C) 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;
                  ``(D) 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; and
                          ``(ii) 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;
                  ``(E) address problems set forth in the report 
                provided to the Secretary under subsection (f)(3);
                  ``(F) address other problems with respect to the 
                education of homeless children and youth, including 
                problems caused by--
                          ``(i) transportation issues; and
                          ``(ii) enrollment delays that are caused by--
                                  ``(I) immunization requirements;
                                  ``(II) residency requirements;
                                  ``(III) lack of birth certificates, 
                                school records, or other documentation; 
                                or
                                  ``(IV) guardianship issues;
                  ``(G) 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
                  ``(H) 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; and
                          ``(ii) designate an appropriate staff person, 
                        who may also be a coordinator for other Federal 
                        programs, as a liaison for homeless children 
                        and youth.
          ``(2) Compliance.--Each plan adopted under this subsection 
        shall also demonstrate how the State will ensure that local 
        educational agencies in the State will comply with the 
        requirements of paragraphs (3) through (9).
          ``(3) Local educational agency requirements.--
                  ``(A) In general.--Each local educational agency 
                serving a homeless child or youth assisted under this 
                subtitle shall, according to the child's or youth's 
                best interest, either--
                          ``(i) continue the child's or youth's 
                        education in the school of origin--
                                  ``(I) for the duration of their 
                                homelessness;
                                  ``(II) if the child becomes 
                                permanently housed, for the remainder 
                                of the academic year; or
                                  ``(III) in any case in which a family 
                                becomes homeless between academic 
                                years, for the following academic year; 
                                or
                          ``(ii) enroll the child or youth in any 
                        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 keep, to the extent 
                feasible, 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.
                  ``(C) Enrollment.--(i) Except as provided in clause 
                (iii), a school that a homeless child seeks to enroll 
                in shall, in accordance with this paragraph, 
                immediately enroll the homeless child or youth even if 
                the child or youth is unable to produce records 
                normally required for enrollment, such as previous 
                academic records, 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) A school described in clause (i) is not 
                required to accept a homeless child until the school 
                receives the immunization records for such child. If 
                the child or youth needs to obtain immunizations, the 
                enrolling school shall promptly refer parent or 
                guardian of the child or youth to the appropriate 
                authorities. If a child is denied enrollment because of 
                the lack of immunization records, the school denying 
                such enrollment shall refer the parents of the homeless 
                child or youth to the liaison in accordance with 
                subparagraph (E).
                  ``(D) Records.--Any record ordinarily kept by the 
                school, including immunization 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 district; and
                          ``(ii) in a manner consistent with section 
                        444 of the General Education Provisions Act.
                  ``(E) Enrollment disputes.--If there is a dispute 
                over school selection or enrollment--
                          ``(i) except as provided in subparagraph 
                        (C)(iii), 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 shall be 
                        provided with a written explanation of the 
                        school's decision regarding enrollment, 
                        including the right to appeal the decision; and
                          ``(iii) the parent or guardian shall be 
                        referred to the liaison, who shall carry out 
                        the dispute resolution process as described in 
                        paragraph (6)(D) as expeditiously as possible, 
                        after receiving notice 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 by the parents.
                  ``(G) Definition.--For purposes of this paragraph, 
                the term ``school of origin'' means the school that the 
                child or youth attended when permanently housed, or the 
                school in which the child or youth was last enrolled.
                  ``(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 according to the provisions of 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 (20 U.S.C. 6301 et seq.) 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 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.).
                  ``(B) Housing assistance.--If applicable, each State 
                and local educational agency that receives assistance 
                under this subtitle shall coordinate with State and 
                local housing agencies responsible for developing the 
                comprehensive housing affordability strategy described 
                in section 105 of the Cranston-Gonzales National 
                Affordable Housing Act (42 U.S.C. 12705) to minimize 
                educational disruption for children and youth who 
                become homeless.
                  ``(C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall be 
                designed to--
                          ``(i) ensure that homeless children and youth 
                        have access to available education and related 
                        support services; and
                          ``(ii) raise the awareness of school 
                        personnel and service providers of the effects 
                        of short-term stays in a shelter and other 
                        challenges associated with homeless children 
                        and youth.
          ``(6) Liaison.--
                  ``(A) Duties.--Each local liaison for homeless 
                children and youth, designated pursuant to subsection 
                (g)(1)(H)(ii), shall ensure that--
                          ``(i) homeless children and youth enroll in, 
                        and have an equal opportunity to succeed in, 
                        schools of that agency;
                          ``(ii) homeless families, children, and youth 
                        receive educational services for which such 
                        families, children, and youth are eligible, 
                        including Head Start and Even Start programs 
                        and preschool programs administered by the 
                        local educational agency, and referrals to 
                        health care services, dental services, mental 
                        health services, and other appropriate 
                        services;
                          ``(iii) the parents or guardians of homeless 
                        children and youth are informed of the 
                        education and related opportunities available 
                        to their children and are provided with 
                        meaningful opportunities to participate in the 
                        education of their children; and
                          ``(iv) public notice of the educational 
                        rights of homeless children and youth is 
                        disseminated where such children and youth 
                        receive services under this Act (such as family 
                        shelters and soup kitchens).
                  ``(B) Notice.--State coordinators 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.
                  ``(D) Dispute resolution.--Unless another individual 
                is designated by State law, the local educational 
                agency liaisons for homeless children and youth shall 
                provide resource information and assist in resolving 
                disputes under this subtitle, should they arise.
          ``(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 replace that 
                        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).
                          ``(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, 
                                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 in such agency (which may be 
        undertaken as a part of needs assessments for other 
        disadvantaged groups);
          ``(2) a description of the services and programs for which 
        assistance is sought and the problems to be addressed through 
        the provision of such services and programs;
          ``(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 that result in an equitable distribution 
        of geographic areas within the State 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 reflects 
                coordination with other local and State agencies that 
                serve homeless children and youth, and 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 three 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 content standards and 
        challenging State student performance 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 before- and after-school, mentoring, 
        and summer programs for homeless children and youth in which a 
        teacher or other qualified individual provides tutoring, 
        homework assistance, and supervision of educational activities;
          ``(8) 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 records, academic 
        records, guardianship records, and evaluations for special 
        programs or services;
          ``(9) 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;
          ``(10) the development of coordination between schools and 
        agencies providing services to homeless children and youth, 
        including programs funded under the Runaway and Homeless Youth 
        Act;
          ``(11) the provision of pupil services (including violence 
        prevention counseling) and referrals for such services;
          ``(12) activities to address the particular needs of homeless 
        children and youth that may arise from domestic violence;
          ``(13) the adaptation of space and purchase of supplies for 
        nonschool facilities made available under subsection (a)(2) to 
        provide services under this subsection;
          ``(14) the provision of school supplies, including those 
        supplies to be distributed at shelters or temporary housing 
        facilities, or other appropriate locations; and
          ``(15) 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 processand 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) Report.--The Secretary shall develop and issue not later than 
60 days after the date of enactment of the Stewart B. McKinney Homeless 
Education Assistance Improvements Act of 1999, a report to be made 
available to States, local educational agencies, and other applicable 
agencies regarding the following:
          ``(1) Enrollment.--Such report shall review successful ways 
        in which a State may assist local educational agencies to 
        enroll homeless students on an immediate basis. The report 
        issued by the Secretary shall--
                  ``(A) clarify that enrollment includes a homeless 
                child's or youth's right to actually attend school; and
                  ``(B) clarify requirements that States are to review 
                immunization and medical or school records and to make 
                such revisions as appropriate and necessary in order to 
                enroll homeless students in school more quickly.
          ``(2) Transportation.--The report shall also address the 
        transportation needs of homeless students. The report issued by 
        the Secretary shall--
                  ``(A) explicitly state that the goal of the 
                transportation provisions contained in this Act is to 
                provide educational stability by reducing mobility and 
                therefore provide an effective learning environment for 
                homeless children; and
                  ``(B) encourage States to follow programs implemented 
                in State law that have successfully addressed 
                transportation barriers for homeless children.
  ``(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 Stewart B. McKinney Homeless Education Assistance Improvement 
Act of 1999, 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 effectiveness of the programs supported under this 
        subtitle.

``SEC. 725. DEFINITIONS.

  ``For the purpose of this subtitle, unless otherwise stated--
          ``(1) the terms `local educational agency' and `State 
        educational agency' have the same meanings given such terms 
        under section 14101, of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801);
          ``(2) the term ``Secretary'' means the Secretary of 
        Education; and
          ``(3) 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 $36,000,000 for fiscal year 2000 and such sums as 
may be necessary for each of the fiscal years 2001 through 2004.''.

               TITLE VIII--SCHOOLWIDE PROGRAM ADJUSTMENT

SEC. 801. SCHOOLWIDE FUNDS.

  The Act is amended by adding at the end the following:

               ``TITLE XVI--SCHOOLWIDE PROGRAM ADJUSTMENT

``SEC. 16001. SCHOOLWIDE PROGRAM ADJUSTMENT.

  ``Notwithstanding the provisions of section 1114, a local educational 
agency may consolidate funds under part A of title I, 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.''.

                                Purpose

    The purpose of H.R. 2, the Student Results Act of 1999 is 
to authorize Title I of the Elementary and Secondary Education 
Act (ESEA) and other programs assisting low achieving students. 
Programs authorized in the bill are: Title I, Part A (Education 
of the Disadvantaged), Migrant Education, Neglected and 
Delinquent, Magnet Schools Assistance, Native American and 
Alaska Native Programs, Gifted and Talented, Rural Education, 
and the Stewart B. McKinney Homeless Assistance program.

                            Committee Action

    In December of 1998, organizations, associations and 
governmental bodies were invited to submit to the Committee on 
Education and the Workforce their legislative recommendations 
for the authorization of the Elementary and Secondary Education 
Act. The Committee received recommendations from more than 50 
respondents. Some of these submitting recommendations to the 
Committee were: American Association of School Administrators 
(AASA); American Federation of Teachers (AFT); Council of the 
Great City Schools; Council of Chief State School Officers; 
Council for American Private Education; Family Research 
Council; National Association of Bilingual Education (NABE); 
National Association of Elementary School Principals; National 
Conference of State Legislatures; National Indian Education 
Association (NIEA); National PTA; National School Boards 
Association; National Science Teachers Association (NSTA); 
Sylvan Learning Systems, Inc.; National Association for College 
Admission Counseling; National Association of Social Workers; 
National Association of State Directors of Special Education, 
Inc. (NASDE); National Center for Home Education; United States 
Catholic Conference; Citizens for Educational Freedom; The 
Center for Law and Education; Arizona University, College of 
Education; California Association of Private School 
Organizations; Delaware State Department of Education; Georgia 
State Department of Education; Kansas State Department of 
Education; Mississippi State Department of Education; New 
Jersey State Department of Education; Oklahoma State Department 
of Education; South Carolina State Department of Education; 
Texas Education Agency; Washington State Superintendent of 
Public Instruction; Wyoming State Department of Education; New 
Jersey Catholic Conference; the Texas Catholic Conference; 
American Library Association; Archdiocese of Los Angeles; 
Archdiocese of Miami; The Child Care Consortium; Educational 
Engineering; The Lutheran Church--Missouri Synod; National 
Center on Economic Education; Charles J. O'Malley & Associates, 
Inc.; Our Kids, Inc.; Pearson Education; The Riggs Institute; 
Smith, Bucklin & Associates, Inc.; Spalding Education 
Foundation; Voyager Expanded Learning; and Very Special Arts 
(VSA).

                                hearings

    The Committee on Education and the Workforce, the 
Subcommittee on Early Childhood, Youth and Families, and the 
Subcommittee on Oversight and Investigations together have held 
20 hearings both in and outside of Washington to review and 
make determinations on revising the Elementary and Secondary 
Education Act, specifically with regard to improving the 
education of the disadvantaged and low achieving students. A 
list of all of the hearings are as follows:

Full Committee Hearings

    1.  January 27, 1999, ``The Administration's Education 
Proposals and Priorities for FY 2000''
    2.  January 28, 1999, ``Implementing School Reform in 
States and Communities''
    3.  February 11, 1999, ``The Administration's Education 
Proposals and Priorities for FY 2000''
    4.  April 14, 1999, ``Title I of the Elementary and 
Secondary Education Act: An Overview''
    5.  June 10, 1999, ``Key Issues in the Authorization of 
Title I of the Elementary and Secondary Education Act''
    6.  July 13, 1999, ``Comprehensive School Reform: Current 
Status and Issues''
    7.  July 22, 1999, ``Helping Migrant, Neglected, and 
Delinquent Children Succeed in School''
    8.  July 27, 1999, ``Title I: What's Happening at the 
School District and School Building Level''

Subcommittee on Early Childhood, Youth and Families

    1.  April 8, 1999, ``What Congress Can Learn from 
Successful State Education Reform Efforts''
    2.  May 25, 1999, ``Education Reform: Putting the Needs of 
Our Children First''
    3.  June 9, 1999, ``Academic Accountability''
    4.  June 24, 1999, ``Examining the Bilingual Education 
Act''
    5.  July 15, 1999, ``Elementary and Secondary Education 
Act: Educating Diverse Populations''
    6.  July 20, 1999, ``Examining Education Programs 
Benefiting Native American Children''

Field hearings

    1.  June 21, 1999 `` Title I: Local Efforts to Boost 
Student Achievement,'' in Waterford, Michigan
    2.  July 7, 1999, ``Reauthorization of the Bilingual 
Education Act,'' in McAllen, Texas
    3.  August 12, 1999, ``Excellence in Education through 
Innovative Alternatives,'' Greenville, South Carolina
    4.  September 8, 1999, ``Challenges and Innovations in 
Elementary and Secondary Education,'' in Raleigh, North 
Carolina

Subcommittee on Oversight and Investigations

    1.  September 8, 1999, ``Improving Student Achievement and 
Reforming the Federal Role in Education''

Field hearing

    1.  April 19, 1999, ``Chicago Education Reforms and the 
Importance of Flexibility in Federal Education Programs

                           LEGISLATIVE ACTION

    On February 11, 1999, Representative Bill Goodling (R-PA) 
introduced H.R. 2, the Dollars to the Classroom Act. As 
introduced, the bill contained three Titles; the amendment in 
the nature of a substitute offered by Mr. Goodling replaced the 
language of the original bill with major changes to the 
Elementary and Secondary Education Act and other education programs. 
The original three titles in the bill have either moved through a 
separate legislative process or are currently moving on other bills. 
The original first Title of H.R. 2 contained the Dollars to the 
Classroom resolution, which in the 106th Congress is contained in H. 
Res. 303, Dollars to the Classroom introduced by Rep. Joseph R. Pitts, 
which passed the House of Representatives on October 12, 1999; it is 
also similar to H. Res. 139 from the 105th Congress, which passed the 
House of Representatives on October 27, 1997. The original second Title 
contained the ``Education Flexibility Partnership Act, Ed-Flex'' which 
became Public Law 106-25, through H.R. 800, that was introduced by 
Representatives Michael N. Castle and Tim Roemer. The original third 
Title, which modified federal arbitrage laws, is within the 
jurisdiction of the Committee on Ways and Means, and has been included 
in H.R. 2488, the ``Financial Freedom Act of 1999''.
    On the basis of the hearings, bills referred to the 
Committee and the Subcommittee, the recommendations of the 
Administration, and the recommendations of the education 
community, an amendment in the nature of a substitute was 
prepared. The Committee on Education and the Workforce 
considered this substitute, to H.R. 2, the Student Results Act 
of 1999 in legislative session on October 5, 6, 7, and 13, 1999 
during which 47 amendments were considered on which 28 roll 
call votes were taken. The Committee on Education and the 
Workforce with a majority of the Committee present, favorably 
reported H.R. 2 as amended, to the House of Representatives by 
a vote of 42 to 6 on October 13, 1999.
    Below is a description of the adopted amendments to H.R. 2:
     Goodling amendment in the Nature of a Substitute.
     Castle En Bloc amendment to clarify that only 
states, local educational agencies (LEAs) and schools who 
receive Title I funds do report cards or other public reports 
on the progress of groups of Title I students; ensures that if 
a state, LEA, or school already issues public report cards for 
all children that such report cards include the information 
under this Act for Title I students; clarifies that if a LEA 
issues no report card, they must publicly report information on 
schools receiving funds under this Act through some other 
public means; clarifies parental consent must be obtained for 
limited English proficient children in English language 
instruction programs funded under Title I, but such consent is 
not required for classes which are taught exclusively or almost 
exclusively in English; describes what an LEA must do when 
parental consent cannot be obtained to place a limited English 
proficient child in English instruction programs; allows LEAs 
to use Title I funds to provide improvements to schools in 
school improvements and for corrective action measures; allows 
LEAs in school improvement to get out of school improvement if 
they have made progress toward meeting the state's proficient 
and advanced levels of performance for two out of three years 
following such identification; and makes other technical and 
clarifying amendments.
     McCarthy amendment to make teacher mentoring 
programs an optional use of Title I funds.
     Souder amendment to permit school districts to 
offer public school choice if not prohibited by state or local 
law, including school board policies.
     Roemer amendment to create a new $20 million grant 
program to give funds to states to provide public school 
choice.
     Payne amendment to increase the schoolwide poverty 
threshold from 40% to 50%.
     Scott En Bloc amendment to allow school districts 
to use Title I funds to provide financial incentives and 
rewards to teachers who teach in failing schools for the 
purpose of attracting and retaining qualified and effective 
teachers and adds to the assessment of paraprofessionals that 
they can be assessed based on their ability to assist in 
instructing in reading readiness, writing readiness and math 
readiness, as appropriate.
     Clay amendment to require a GAO to evaluate the 
impact of Ed-Flex on Title I.
     Schaffer amendment to require public schools to 
ensure that educational services or other benefits provided by 
Title I are secular, neutral and nonideological.
     McIntosh amendment to provide limited civil 
litigation immunity for teachers, principals, local school 
board members, superintendents, and other educational 
professionals who engage in reasonable actions to maintain 
school discipline.
     Boehner amendment to repeal all Native Hawaiian 
programs under Part B, Title IX of the ESEA.
     Schaffer amendment to lower the authorization on 
capital expenses for private schools from $24 million to $15 
million for FY 2000, from $16 million to $15 million for FY 
2001, and from $8 million to $5 million for FY 2002.
     McIntosh amendment stating a Sense of Congress to 
encourage paperwork reduction practices by school districts and 
schools.
     Schaffer amendment to increase the state set aside 
for Academic Achievement Awards to schools from 25% to 30% and 
gives states the option to participate in such program.
     Hoekstra amendment to provide states flexibility 
in the method by which they report information about the 
quality and performance of Title I schools.
     Hoekstra amendment to reinstate the schoolwide 
poverty threshold to 40%. (An amendment by Mr. Payne increased 
it from 40% to 50%. The schoolwide poverty threshold is set at 
40% in H.R. 2).

                                Summary


                     Title I, Part A--Basic Program

    Title I, Part A of H.R. 2 extends and modifies Title I, 
Part A of the Elementary and Secondary Education Act (ESEA). 
Part A provides supplemental educational services to low-
achieving students to assist them in meeting challenging state 
student performance standards. The bill maintains the existing 
standards and assessments-based structure to Title I; strengthens 
academic accountability by holding all States, school districts and 
schools accountable for ensuring that their students meet high academic 
standards; provides for distribution of report cards on the academic 
quality of Title I schools, including the qualifications of teachers 
and teachers' aides, to parents and communities; gives families the 
opportunity to leave failing Title I schools and enroll in other public 
schools or charter schools; provides rewards to Title I schools that 
are closing the achievement gap; ensures that all newly-hired teachers 
funded by Title I are fully qualified; raises the qualifications of 
teachers' aides; and provides greater flexibility to schoolwide 
programs.

            Title I, Part B--Education of Migratory Children

    Title I, Part B of H.R. 2 extends and modifies Title I, 
Part C of the Elementary and Secondary Education Act, 
``Education of Migratory Children.'' The bill makes slight 
modifications to the eligibility requirements for receiving 
funds under this Part to better address the needs of migrant 
children. Some of the most important provisions seek to improve 
the transfer of migrant student records. These provisions 
direct the Secretary to assist States in developing effective 
methods for the transfer of student records and for determining 
the minimum data elements to be transferred. The bill also 
provides States with increased flexibility in the use of funds.

            Title I, Part C--Neglected and Delinquent Youth

    Title I, Part C of H.R. 2 makes several minor changes to 
Title I, Part D of ESEA for neglected and delinquent children. 
The majority of changes are made to insure the Subpart 2 
program for local educational agencies is focused primarily on 
addressing the needs of youth returning from local correctional 
facilities to their local schools or programs of alternative 
education. The amendments would still permit local educational 
agencies to serve the needs of other at risk children as long 
as they first meet the academic and other needs of youth 
returning from local correctional facilities. The bill also 
increases the amount of Subpart 1 funds States are to set aside 
to use to transition youth in State correctional facilities 
back to their local schools from 10 to 15 percent.

              Title I, Part D--Comprehensive School Reform

    Title I, Part D, of H.R. 2 puts into statutory form the 
comprehensive school reform grant program, which had previously 
existed by virtue of narrative, paragraph-style text included 
in the FY 1998 Labor, Health and Human Services, and Education 
Appropriations Act (P.L. 105-78). The comprehensive school 
reform grant program provides financial incentives for schools 
to develop comprehensive reforms to change an entire school. 
The reforms must be based upon reliable research and effective 
practices, and emphasize basic academics and parental 
involvement.

                  Title I, Part E--General Provisions

    Title I, Part E, of H.R. 2, includes general provisions 
governing Title I. Such provisions include negotiated 
rulemaking; State rulemaking; rules of construction; local 
educational agency cost limitations; General Accounting Office 
studies; and definitions.

                  Title II--Magnet Schools Assistance

    The Magnet Schools Assistance Program (MSAP) provides 
competitive grants to Local Education Agencies for magnet 
schools that are implementing school desegregation plans. 
Magnet schools offer special vocational or academic programs 
designed to attract students from outside the school's 
traditional enrollment area. MSAP grantees receive three-year 
awards, which cannot exceed $4 million per year. Funds may be 
used for planning and promoting academic programs, acquiring 
instructional equipment, and paying the salaries of fully 
qualified teachers who conduct programs in magnet schools. 
However, over the three-year period, a decreasing proportion of 
the grant may be used for planning activities; 50%, 15%, and 
10% respectively.

                      Title III--Teacher Liability

    Title III includes provisions which provide limited civil 
litigation immunity for teachers, principals, local school 
board members, superintendents, and other education 
professionals who engage in reasonable actions to maintain 
order, discipline, and a positive education environment in 
America's schools and classrooms.

     Title IV--Indian, Native Hawaiian, and Alaska Native Education

    Title IV amends Title IX of the Elementary and Secondary 
Education Act, as well as Title XI of the Education Amendments 
of 1978, and the Tribally Controlled Schools Act of 1988. Taken 
together, these statutes provide most of the federal 
government's education aid that is specifically targeted to 
American Indian and Alaska Native students and the schools and 
organizations which serve them. In updating and improving these 
programs, the Committee has focused on improving student 
achievement, targeting resources to the programs that are 
providing the best results, greatly increasing the flexibility 
of the programs at the local level so that Native Americans, 
Hawaiians and Alaskans can make the decisions which impact 
themselves, reducing the administrative burden placed on 
participating entities, increasing the amount of aid that 
actually reaches the classroom, and increasing the emphasis 
placed on family literacy services for the effected 
populations. In addition, with respect to education programs 
funded by the Bureau of Indian Affairs, the Committee has 
shifted as much authority and responsibility to the Tribes, 
tribal organizations, and local school boards as possible while 
maintaining accountability for the use of federal funds. The 
Committee recognizes that, if given the chance, these entities, 
working with the parents of Indian children can and will do a 
far better job of improving student achievement than any 
federal agency.

                 Title V--Gifted and Talented Children

    The Jacob K. Javits Gifted and Talented program was first 
authorized in 1988 to serve the educational needs of gifted and 
talented children. This program supports a national research 
effort and awards competitive grants to State and local 
educational agencies, institutions of higher education, and 
other public and private agencies and organizations to help 
build a nationwide capability to meet the needs of gifted and 
talented students in elementary and secondary schools. Since 
1989, the Javits Gifted and Talented Program has funded almost 
100 grants that have supported model programs and practices for 
educating gifted and talented students nationwide. The 
Committee amendment to this part makes minor changes to current 
law and incorporates a version of H.R. 637, ``The Gifted and 
Talented Students Education Act,'' introduced by Rep. Elton 
Gallegly (R-CA), to provide formula grants to States to 
implement successful research findings and model projects 
funded by the Javits program over the past 10 years.
    Subpart 1 of the Committee amendment eliminates previously 
unfunded subsections and stipulates that all research conducted 
shall be ``scientifically based.'' Subpart 2 provides formula 
grants, based on student population, to State educational 
agencies to support programs and services for gifted and 
talented students. Once the current program reaches funding 
sufficient to provide formula grants to the States, subpart 2 
activities are triggered and conducted in lieu of subpart 1. 
The trigger for subpart 2 activities is $50,000,000. Subpart 2 
authorizes State educational agencies to distribute grants to 
local educational agencies, including charter schools, on a 
competitive basis to provide gifted and talented students with 
programs and services. Authorized activities for subpart 2 
include: (1) professional development, including in-service 
training for general education teachers, administrators, or 
other personnel at the elementary and secondary levels; (2) 
innovative programs and services, including curriculum for 
high-ability students; (3) emerging technologies, including 
distance learning; and (4) technical assistance to schools and 
local districts. Subpart 3 maintains activities conducted by 
the National Research Center on the Gifted and Talented at 
$1,950,000 for both subparts 1 and 2.

                  Title VI--Rural Education Assistance

    The Committee amendment, a combination of H.R. 2725, ``The 
Rural Education Initiative Act,'' introduced by Rep. Bill 
Barrett (R-NE) and H.R. 2997, ``The Low-Income and Rural School 
Program,'' introduced by Rep. Van Hilleary (R-TN), addresses 
the unique problems associated with the education of students 
in rural school districts. Specifically, this amendment 
replaces Part J of Title X of the Elementary and Secondary 
Education Act, will address the different needs of (1) small, 
rural school districts and (2) low-income, rural school 
districts.
    Subpart 1 of the Committee amendment addresses the needs of 
small, rural school districts. A local educational agency would 
be able to use applicable funding to support local or statewide 
education reform efforts intended to improve the academic 
achievement of elementary and secondary school students and the 
quality of instruction provided for these students. A local 
educational agency would be eligible to use funding under this 
subpart if: (1) the total number of students in average daily 
attendance at all of the schools served by the local 
educational agency is less than 600; and (2) all of the schools 
served by the local educational agency are located in a 
community with a Rural-Urban Continuum Code (Beale Code) of 6, 
7, 8, or 9, as determined by the Secretary of Agriculture. An 
eligible local educational agency would be able to combine 
funds from Title II, Professional Development Programs; Title 
IV, Safe and Drug-Free Schools and Communities; Title VI, 
Innovative Education Program Strategies; Title VII (Part A), 
Bilingual Education; Title VII (Part C), Emergency Immigrant 
Education Program; and Title X (Part I), 21st Century Community 
Learning Centers formula grant programs and use the money to 
support local or statewide education reform efforts. Grants 
under this subpart would be awarded to eligible local 
educational agencies based on the number of students in average 
daily attendance less the amount they received from the 
aforementioned formula grant programs. Minimum grants for local 
educational agencies would not be less than $20,000. The 
maximum a local educational agency could receive would be 
$60,000. Local educational agencies participating in this 
initiative would have to meet high accountability standards by 
demonstrating the ability to meet academic achievement 
standards under Title I, such as the State's definition of 
adequate yearly progress. Schools failing to meet these 
requirements would not be eligible for continued funding.
    Subpart 2 of the Committee amendment addresses the needs of 
low-income, rural school districts. A local educational agency 
is eligible to use the applicable funding under subpart 2 if it 
serves (1) a school-age population, 20 percent or more of whom 
are from families with incomes below the poverty line; and (2) 
all of the schools served by the local educational agency are 
located in a community with a Rural-Urban Continuum Code (Beale 
Code) of 6, 7, 8, or 9, as determined by the Secretary of 
Agriculture. Funds for this subpart are allocated among states 
by formula based on enrollment in eligible districts within 
those states. States, in turn, allocate funds to eligible local 
educational agencies competitively or according to a state-
determined formula based on the number of students each 
eligible local educational agency serves. Funds awarded to 
local educational agencies or made available to schools under 
this subpart can be used for: educational technology; 
professional development; technical assistance; teacher 
recruitment and retention; parental involvement activities; or 
academic enrichment programs. A local education agency 
utilizing Subpart 2 may not utilize Subpart 1.

          Title VII--McKinney Homeless Education Improvements

    Subtitle B of title VII of the Stewart B. Mckinney Homeless 
Assistance Act authorizes formula grants to States, based on 
state allocations for grants to local educational agencies 
under title I, part A of the Elementary and Secondary Education 
Act. Grants must be used for State and local programs to 
provide equal access to a free, public education for homeless 
children and youth, including a public preschool education, 
equivalent to that provided to other children and youth. Grants 
must also be used to establish an Office of Coordinator of 
Education of Homeless Children and Youth within each State 
educational agency; implement professional development 
activities for school personnel; and provide each child or 
youth the opportunity to meet the same State student 
performance standards that others are expected to meet. The 
Committee amendment to this part strengthens the McKinney Act 
by amending it to incorporate a version of H.R. 2888, ``The 
Stewart B. McKinney Homeless Education Assistance Improvements 
Act of 1999,'' introduced by Rep. Judy Biggert (R-IL) and 
provisions in the Administration's ``Educational Excellence for 
All Children Act of 1999,'' to help homeless children enroll, 
attend, and succeed in school.

               Title VIII--Schoolwide Program Adjustment

    The Committee adopted an amendment to set the minimum 
percent of children from low-income families in order for a 
school to be eligible for a schoolwide program at 40 percent. 
See infra discussion on Committee Views, Title I, Part A, 
Schoolwide Programs.

                     Committee Statement and Views


                     Title I, Part A--Basic Program

Historical perspective

    Title I, the largest federal Elementary and Secondary 
Education Act (ESEA) program, provides supplemental educational 
services to children who are achieving below grade level. From 
the time it was first enacted in 1965 until the present, 
taxpayers have provided over $120 billion in funding, with the 
initial investment in 1965 of $960 million having risen to $7.7 
billion in 1999.
    The reach of Title I is broad. Title I grants or services 
are provided to almost all school districts in the country--
approximately 90 percent--and 58 percent of public schools. 
Approximately 11,000,000 students are served, including 167,000 
in private schools.
    Over its 34 year history, Title I has been confronted with 
continuing questions about its effectiveness at raising the 
academic achievement of the students it serves. One example is 
the Prospects study, a national longitudinal study of Title I. 
The 1993 interim report from this study showed that Title I did 
not appear to help at-risk students in high-poverty schools to 
close their academic achievement gaps with students in low-
poverty schools. The final report, released in 1997, confirmed 
the generally negative findings from the interim report:

          In the period covered by this study, children in 
        high-poverty schools began school academically behind 
        their peers in low-poverty schools, and were unable to 
        close this gap in achievement as they progressed 
        through school.
          When assessed against high academic standards, most 
        students failed to exhibit the skill and mastery in 
        reading and mathematics expected for their respective 
        grade levels. Students in high-poverty schools were, by 
        far, the least able to demonstrate the expected levels 
        of academic proficiency. (Prospects: The 
        Congressionally Mandated Study of Educational Growth 
        and Opportunity, Puma et.al. 1997, p. iv)

    On the other hand, the National Assessment of Title I 
(NATI), released in 1999, came to a different conclusion based 
on early results of changes made in the 1994 reauthorization. 
This study, mandated by Congress in the 1994 reauthorization of 
the Elementary and Secondary Education Act, found that the 
standards-based changes made in 1994 Title I legislation were 
working, in large part because the National Assessment of 
Educational Progress (NAEP) test scores improved from 1994 to 
1998. However, that is only part of the picture. Though NAEP 
reading scores did increase modestly from 1994-1998, they only 
returned to the level that the scores were in 1992, and when 
compared to the long-term trends in NAEP from the 1970s to 
1998, the scores are basically flat. More fundamentally, 
despite claims by the Clinton Administration, there is no 
direct link between NAEP and the changes made to Title I in 
1994. The NATI study itself points out that ``full 
implementation [of the 1994 reforms] in classrooms across the 
country has yet to be accomplished.'' Further, another report, 
the Status of Education Reform in Public Elementary Schools: 
Principals' Perspectives, indicated that most principals in 
Title I eligible schools were unaware of the standards-based 
reforms required by the 1994 legislation, and so it is even 
more difficult to attribute the increase in scores to the 1994 
changes in Title I. Though these reports only represent a 
sample of the studies that have been conducted since 1965, they 
are reflective of continuing concerns.
    Factually one thing remains clear. The effectiveness of 
Title I at improving the academic achievement of students below 
grade level continues to be open to question. H.R. 2, the 
Student Results Act, addresses this issue through its recurring 
emphasis on academic accountability--requiring final aligned 
assessments to be in place by the 2000-2001 school year; making 
report cards on the academic quality of Title I schools 
available to parents and communities; providing public school 
choice to parents of students enrolled in low performing Title 
I schools; and requiring all groups of students (economically 
disadvantaged, limited English proficient, and others) and not 
just students in the aggregate to show improvement.

Standards-based approach of Title I, Part A

    The structure of H.R. 2, the Student Results Act of 1999, 
maintains the existing standards-based approach to Title I that 
was adopted in the 1994 amendments (Improving America's Schools 
Act, P.L. 103-382) to Title I. The 1994 changes to the Title I 
statute required States to develop State content and 
performance standards by the 1997-98 school year, and State 
assessments aligned to those standards by the 2000-2001 school 
year. Student academic performance under Title I is measured by 
these assessments against a State's standards. In short, what 
this means is that students who receive Title I services are 
held accountable for meeting the same challenging state 
standards and assessments as all other non-Title I students. 
Though there has been progress in many States in implementing 
standards-based reform since the 1994 amendments, additional 
information is needed to reach a final conclusion at this 
juncture about the success or limitations of this approach in 
Title I.
    Why? Two primary reasons. First, the 1994 authorization of 
Title I did not require States to have their final assessments 
in place and aligned with their standards until the 2000-2001 
school year. To the Committee's knowledge, no State has 
reported that it has fully implemented its assessments as of 
the date of this committee report. So it is impossible to fully 
determine whether the approach that was started in 1994 is 
working or whether adjustments or other approaches are needed.
    Second, studies being conducted by the Department are not 
yet complete. For example, the Committee did not receive the 
long-awaited Longitudinal Evaluation of School Change and 
Performance (LESCP) on Title I schools until June of this year, 
well into the authorization cycle.Of all the Department's 
studies, this is the one study which was anticipated to shed the most 
light on whether the 1994 changes to Title I were working. Neither the 
Committee nor the public has received the full data sets (specifically 
test score results) on which the report was based. Nevertheless, the 
authorization process must go forward. The Committee has chosen to 
continue the standards-based approach to Title I, but understands that 
it may be necessary to revisit the whole notion of standards based 
reform (incorporated in Title I) as new data sheds light upon its 
implementation.

Ensuring quality and accountability for results--Academic 
        accountability for all students and subgroups of students

    Current Title I law provides for academic accountability 
through States and school districts who ensure that Title I 
schools are making adequate progress. The Student Results Act 
continues and builds upon this system of accountability.
    As mentioned earlier in this report, under Title I law, 
States develop state content and performance standards, and 
then align their assessments to those standards. For purposes 
of determining the academic progress of Title I students and 
schools, States, under current law, develop a definition of 
``adequate yearly progress'' that: (1) is consistent with 
guidelines established by the Secretary; (2) ``results in 
continuous and substantial yearly improvement of each local 
educational agency and school sufficient to achieve the goal of 
all children served under this part meeting the State's 
proficient and advanced levels of performance''; and (3) links 
progress primarily to performance on the state assessments but 
permitting progress to be established in part through the use 
of other measures. Once a State develops its definition, it 
then becomes the measure for determining whether Title I school 
districts and schools are making adequate yearly progress. 
Under current law, if a school or school district fails to make 
adequate yearly progress for two consecutive years, the school 
or school district is identified for school improvement. At 
that time, technical and other assistance is made available in 
an effort to bring about improvement. If the school or school 
district fails to make improvement after a period of 3 years, 
then corrective action must be taken to improve the school or 
school district. Corrective action may include such things as 
withholding funds, decreasing decision-making authority, 
reconstituting schools, making alternative governance 
arrangements, and authorizing students to transfer to other 
public schools.
    This basic framework of current law is maintained in H.R. 2 
with several additions that strengthen academic accountability. 
First, the definition of adequate yearly progress in section 
1111 is further refined to: (1) ensure that states, in defining 
adequate yearly progress, take into account the progress of all 
students in the state as a whole, at the school district level, 
and at the school building level; (2) ensure that within each 
State, school district and school the performance and progress 
of students can be compared according to race, ethnicity, 
gender, English proficiency status, migrant status, disability 
status, and by economically disadvantaged status; (3) compare 
the proportions of students and subgroups of students that are 
at the basic, proficient and advanced levels of performance; 
(4) include annual numerical goals for improving all of the 
subgroups of students and narrowing academic achievement gaps; 
and (5) include a timeline for all subgroups of students to 
meet or exceed the state's proficient level of performance 
within 10 years.
    Furthermore, under the bill, for a State to make adequate 
yearly progress, not less than 90 percent of the school 
districts within its jurisdiction are to meet the State's 
criteria for adequate yearly progress. For a school district to 
make adequate yearly progress, not less than 90 percent of the 
schools within its jurisdiction are to meet the State's 
criteria for adequate yearly progress. For a school to make 
adequate yearly progress, not less than 90 percent of each 
subgroup of students who are enrolled are required to take the 
state assessments.
    The Committee is aware and encouraged by several States 
that are already disaggregating data by subgroups of students, 
and reporting on the academic performance of such students at 
the local level. Alabama, Florida, Kansas, New York, North 
Carolina, and Texas provide several such examples according to 
recent report entitled State Education Indicators With a Focus 
on Title I, 1998. 
    The Committee is also aware that some States may choose to 
include in their state plans information on the progress of the 
same students from one school year to the next, and not 
inconsistent with federal privacy statutes or other laws. Such 
information, if included, could be provided through a variety 
of existing sources, including statewide assessments or local 
assessments in those State and local educational agencies that 
give such assessments in every grade.
    The Student Results Act also strengthens the academic 
accountability provisions found in section 1116 relating to 
school improvement. Section 111(b)(5) provides for parents to 
be notified if their child's school is designated for school 
improvement. This designation triggers the right of the parent 
to transfer their child out of such schools as discussed in 
greater detail in the section below. In addition, if a school 
in school improvement does not improve within two years of 
having been so designated, then corrective action shall be 
taken against such school. Under current law, the time period 
within which to improve and thereby avoid corrective action is 
three years.

School choice for students attending schools identified for school 
        improvement

    The Student Results Act provides a right of public school 
choice for students attending low-performing (i.e. schools 
identified for school improvement) Title I schools. Once a 
school is identified for school improvement, the school 
district must then develop and implement a public school choice 
program for parents of children attending such a school within 
18 months. While the Committee recognizes that it may take up 
to 18 months to implement this public choice program, the 
Committee considers 18 months to be an outer limit. It is 
expected that school districts will act expeditiously to 
implement a choice program.
    A recent Department of Education report (July 1999) 
entitled State ESEA Title I Participation Information, 1996-97, 
shows about 16 percent of Title I schools or 7,065 out of 
45,399 schools have been identified for school improvement. 
Attachment B in the Appendix are two tables fromthe 
aforementioned report which show the numbers of schools and school 
districts, state by state, that have been identified for school 
improvement.
    The Committee wishes to make clear that the choice program 
envisioned by this section is a requirement for school 
districts that have or will have schools identified for school 
improvement. School choice and the specific right to transfer 
to another public school is required to be implemented unless 
affirmatively prohibited by State or local law, which includes 
school board-approved local educational agency policy.
    One of the problems in education today is that some 
students, especially those participating in Title I programs, 
are trapped in substandard schools without a way out. This 
change to Title I provides a way out. It gives them the choice 
to transfer to another public school that is not low 
performing. And if there are no such schools within the school 
district, then the school district shall attempt to work out a 
school choice program involving schools in a neighboring school 
district.
    Just a few years ago the Committee heard from Ms. Alveda 
King, the niece of the late Dr. Martin Luther King, Jr., and 
herself a former public and private school teacher, about the 
importance of parental choice. She said, ``It has been 
demonstrated that when you implement a choice program, * * * 
that you empower the parents, the system improves, the schools 
begin to compete, and that hope arises.'' It is the Committee's 
hope that this choice provision, will indeed empower parents 
and lead to great improvements in low performing Title I 
schools.

School choice generally

    Section 110 continues and expands the authority of a local 
educational agency to use Title I funds to provide public 
school choice to Title I students. The bill provides a simple 
grant of authority to local educational agencies to, if they 
wish, use Title I funds, together with State, local and private 
funds to operate a public school choice program for Title I 
students. Two new features to this choice authorization are: 
(1) choice is expanded to include transfer to non-Title I 
schools and public charter schools; and (2) Title I funds may 
be used for transportation expenses for Title I children. Under 
current law, choice was only limited to transfer from one Title 
I school to another Title I school, and transportation expenses 
were prohibited.

Annual State academic reports and school report cards

    Section 105(b) of the Student Results Act of 1999 expands 
upon current provisions of the Elementary and Secondary 
Education Act which require schools to collect and report to 
the public information on the academic quality of Title I 
schools. Under section 1111 of current law, States must develop 
State student assessments that will be used to determine the 
adequate yearly performance of each local educational agency 
and school. These assessments must ``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 students with disabilities as 
compared to nondisabled students, and by economically 
disadvantaged students as compared to students who are not 
economically disadvantaged.''
    In addition, section 1116 of current law (relating to 
school improvement), requires each local educational agency to 
review the schools under the agency's jurisdiction to determine 
the extent to which each school is making progress toward 
helping its students meet the State's student performance 
standards. The local agency must ``publicize and disseminate to 
teachers and other staff, parents, students, and the community, 
the results of the annual review * * * in individual school 
performance profiles that include sound disaggregated results * 
* *''
    Similarly, section 1114(b)(2) of current law (relating to 
schoolwide programs), requires a school's comprehensive plan to 
provide for the reporting of disaggregated student assessment 
results.
    In recent years, many States have sought to provide more 
information to parents and other taxpayers on the quality of 
individual schools as a means to hold them accountable. A 
January 11, 1999 report by Education Week entitled Quality 
Counts '99: Rewarding Results, Punishing Failure, provided an 
in-depth look at the use of report cards at the State and local 
levels. The report noted that ``Thirty-six states will publish 
annual report cards on individual schools this year or require 
schools or districts to do so. Another four will start 
publishing them next year, and one more will join the club in 
2001.''
    The Student Results Act of 1999 builds upon current law and 
the efforts of States and localities to provide parents and 
taxpayers helpful information on the quality of Title I 
schools. In a focus group survey, Education Week found that 91% 
of taxpayers believed that ``widely publicized ratings on such 
things as test scores and graduation rates motivate public 
school teachers to work harder to improve schools' 
performance.'' However, only 24% of these same taxpayers 
indicated they had ever seen a school report card. The intent 
of the Student Results Act of 1999 is to ensure that 
information on academic performance of Title I schools is made 
available to parents and the public at large.
    Section 105(h) of the committee substitute to the Student 
Results Act authorizes annual State academic reports and school 
district report cards on Title I schools. If a State or school 
district reports on the academic performance of all students 
then this information would be required to be included in such 
reports covering all students. On this matter, if data is not 
currently reported on all students and schools, the Committee 
does not require, but does encourage States and school 
districts to consider expanding the coverage to include all 
such public schools and students as this will provide a better 
context for analysis of academic quality.
    The committee substitute clarifies that for the handful of 
States and school districts that do not provide annual academic 
reports or report cards, the information required to be 
reported under this Act may be provided through other public 
means. If States have other, more appropriate means to provide 
this information, then they should have the flexibility to do 
so.
    The information included in the annual State report and 
school district report cards will enable parents, taxpayers, 
and others to make informed judgments about the quality of 
education in Title I schools in their communities. The 
information to be included in the annual state report and the 
school district report cards includes: (1) student achievement 
data, based upon State assessments and disaggregated according 
to student subgroups (gender, racial/ethnic groups, 
Englishproficiency status, migrant status, students with disabilities, 
and economically disadvantaged); (2) retention rates; (3) graduation 
rates; (4) completion of advanced placement courses; and (5) the 
qualifications of both teachers and paraprofessionals. The reports may 
also include an analysis of how schools improved or declined from one 
year to the next. In addition, State annual reports and school district 
report cards may include information on such things as class size, 
school safety, and the incidences of student suspensions.
    During Committee consideration of the committee substitute 
on October 13, 1999, an amendment was offered by Rep. Peter 
Hoekstra (R-MI) which would allow States and school districts 
to report information on the academic quality of Title I 
schools (as referenced in the above paragraphs), either through 
report cards or some other means such as posting on the 
Internet, distribution to the media, and distribution through 
public agencies. The amendment, which passed by voice vote, 
provides greater flexibility to States and school districts in 
how they make the information available to the public, while 
not making any change in the content of what must be made 
public pursuant to the committee substitute.
    The Committee is aware that some States and school 
districts will need to make modest adjustments to be able to 
report the above-referenced information, and accordingly, 
language has been included to give States and school districts 
until the beginning of the 2001-2002 school year to first 
report the information.
    In addition to annual State academic reports and school 
district reports, the Student Results Act of 1999 expands 
accountability through a new ``parents right to know'' 
provision. Under this provision, local educational agencies 
must provide parents, upon request, information on the 
professional qualifications of their child's classroom teacher. 
Such information must include whether he or she is teaching 
under an emergency or other provisional status and whether 
their child is being taught by a paraprofessional. Local 
educational agencies receiving Title I funds must also provide 
to parents their child's performance on each of the State 
assessments. In addition, they must provide timely notice to 
parents if their child has been assigned or taught for two or 
more consecutive weeks by a substitute teacher or by a teacher 
not fully qualified.
    These provisions come amid a growing body of research 
showing that next to parental involvement, the quality of the 
teacher is the number one factor in determining student 
academic success. In fact, the impact of being taught by an 
unqualified teacher has been shown to have a lasting negative 
impact on student achievement. Therefore, the Committee 
believes parents in schools funded under Title I should have 
every right to be informed when their child is not being taught 
by a fully qualified teacher.

Incentives for academic excellence

    Under current law, authority is provided in Title I for 
States to recognize schools (``distinguished schools'') in 
which virtually all students have met the State's advanced 
level of student performance. The Student Results Act maintains 
this concept but improves upon it through the establishment of 
the Academic Achievement Awards Program in section 1117A. Under 
the committee substitute, States are required to set aside 25% 
of any increases in Title I funding to provide cash awards for 
Title I schools that have significantly closed the achievement 
gap or that have exceeded their adequate yearly progress goals. 
Teachers, whose students have consistently made gains in 
academic achievement in the areas in which the teacher provides 
instruction, may also receive cash awards. The Committee 
believes that such awards and recognition will help to motivate 
further gains in academic performance and focus our students, 
teachers, and schools on success.
    During Committee consideration of the committee substitute 
on October 13, 1999, an amendment was offered by Rep. Bob 
Schaffer (R-CO) to make the awards program permissive, rather 
than mandatory. The amendment also allowed States to set aside 
up to 30% of any increases in Title I funding. The amendment, 
which ultimately gives States greater flexibility with respect 
to whether or not to establish an awards program, passed by a 
vote of 23-20.

Local control and flexibility

    The Student Results Act significantly expands the existing 
flexibility in Title I at the local level. The flexibility 
accorded schools which utilize a schoolwide approach (whereby a 
school is able to consolidate several different federal 
education program funds with State and local resources to serve 
all students at the school) is strengthened by the lowering of 
the schoolwide poverty eligibility threshold from 50 percent to 
40 percent. Section 801 of the bill, which provides this 
authority, will enable more schools to consider utilizing this 
approach to serving Title I students. Given the growing 
popularity of the schoolwide approach (over 80 percent of 
schools eligible to implement a schoolwide program actually 
utilize such an approach) it can be expected that even more 
schools will take advantage of this opportunity. Since 1995, 
the number of schools implementing schoolwide programs has more 
than tripled, from about 5,000 to approximately 16,000. An 
explanation of schoolwide programs can be found under the 
heading of this report entitled ``Schoolwide Programs.''
    Another area where flexibility is maintained is in how a 
school district or school uses Title I resources. Under current 
law, Title I funds may be used to employ teachers and teachers' 
aides, purchase supplemental reading and math instructional 
services from a third party contractor, purchase computers, 
conduct professional development activities, and others. This 
flexibility in the use of funds is preserved in H.R. 2.
    The Committee would also note that for States that have 
become Ed Flex states under the recently enacted Education 
Flexibility Partnership Act (P. L. 106-25) or its predecessor, 
the Education Flexibility Partnership Demonstration Act, 
waivers may be obtained for many of the provisions of Title I. 
Ed Flex recognizes that there may not be one single best way to 
operate a federal education program. Texas and Maryland, in 
particular, are two States that have utilized ed flex authority 
to allow more schools to participate in schoolwide projects and 
to better target Title I funds to the lowest achieving 
students. Such waivers as well as waivers under the Secretary's 
Title XIV waiver authority would remain available to States and 
school districts under the bill.
    In addition to maintaining flexibility, H.R. 2 continues to 
ensure that almost all of Title I resources are directed to the 
local level. Approximately 1.5 percent of a State's Title I 
allocationis retained at the State level for administrative and 
school improvement expenses with the balance, 98.5 percent, going to 
the local level to be controlled and administered by local authorities.

Limitations upon State and local administrative funds

    Under current law, States are permitted to set-aside 1% of 
the total Title I funds received by the State under Title I for 
State administrative expenses. The Student Results Act would 
continue to allow States to reserve up to 1% of the amount of 
funding received in FY 1999. If appropriations are greater than 
the FY1999 level, then the 1% would not apply to the increase 
above the FY1999 level. Additional administrative funding could 
be provided to States through a separate line item 
authorization.
    A large portion of these federal funds have been used in 
the past to finance up to 80 percent of the operating expenses 
of some State educational agencies. While some States have 
reduced the relative share of federal funds used for this 
purpose, the Committee believes that at a maximum, no more than 
50 percent of the State educational agency's operating expenses 
should be derived from Title I administrative funds. Section 
103(f) of the Student Results Act would limit the federal share 
to no more the State educational agency's share of operating 
expenses.
    At the school district level, no limit is currently placed 
on the amount that can be used for administrative expenses. The 
Department of Education's Study of Education Resources and 
Federal Funding: Preliminary Report, issued in June 1999, shows 
that about 8 percent of Title I funds at the school district 
level are spent on administrative costs. According to the 
study, this percentage is greater than any other federal 
elementary and secondary formula grant program except the Safe 
and Drug Free Schools program. In keeping with the Committee's 
continuing emphasis upon sending more dollars directly into the 
classroom, the Committee has limited Title I administrative 
costs at the school district level to no more than 4 percent of 
the district's Title I allocation. This limitation is found in 
section 161 of the bill. The Committee has further required, in 
section 161, the Secretary of Education to develop a definition 
of administrative expenses in consultation with others.

Ranking and priority for grades K-6

    Under current law once Title I funding reaches the school 
district, all schools with over 75 percent poverty must be 
served first, in rank order from highest to lowest poverty. 
This provision is intended to increase the number of high-
poverty schools that receive Title I funds, and that has been 
the effect. According to the National Assessment of Title I, 
Title I funds go to nearly all (95 percent) of schools with 
over 75 percent poverty, and nearly 75 percent of Title I funds 
go to schools with poverty levels of 50 percent or greater. 
Schools with lower poverty rates are less likely to receive 
Title I funds. Only 36 percent of schools with 35 percent or 
less poverty receive these funds.
    Once the schools with 75 percent and greater poverty are 
served, schools below 75 percent poverty are served in rank 
order from highest to lowest poverty. A school district may not 
serve a school below 75 percent poverty until all schools above 
75% poverty are served. However, school districts may choose to 
serve schools below 75 percent poverty within grade span 
groupings or within the district as a whole, but regardless of 
the choice, must serve these schools in rank order.
    Section 107(b)(3) of the Student Results Act would continue 
the ranking requirements as under current law with the 
modification that school districts, if they wish, may give 
priority to the elementary grades before serving other schools 
or grade levels. Essentially, this permissive authority would 
allow school districts to first serve elementary schools above 
75 percent poverty, in rank order, before serving other schools 
above 75 percent poverty and serve elementary schools below 75 
percent poverty, in rank order, before serving other schools 
below 75 percent poverty. Given the particular importance of 
the early years of a child's education, the Committee believes 
this priority will enable many school districts to more 
effectively utilize Title I funding in improving student 
academic achievement.

Schoolwide programs

    Under current law, schools with 50% or more poverty, may if 
they wish, choose to serve all students in the school. These 
schools are known as ``schoolwide programs.'' Under a 
schoolwide program, funds could, for example, be used to 
provide professional development to all of a school's teachers, 
upgrade instructional technology, or implement new curricula. 
Schoolwide programs also have the added flexibility of 
combining federal, State and local education funds to serve the 
entire school, rather than having to operate many separate 
federal education programs with multiple sets of rules and 
regulations. In addition, schoolwide programs utilize a 
strategic plan. Strategic plans allow Title I services to be 
considered within the broader context of a school's reform 
goals, and provide a framework for better integration of Title 
I within the regular academic program at the school.
    In recent years, more and more schools have opted to 
utilize the schoolwide approach under Title I. According to the 
National Assessment of Title I, the number of schools 
implementing schoolwide programs has more than tripled from 
about 5,000 to approximately 16,000 since 1995. Local school 
principals, teachers and administrators enjoy having the 
schoolwide option. As of 1997-98, 82% of eligible schools were 
using the schoolwide option and an additional 12% were 
considering implementing schoolwide programs.
    Principals and teachers have found the schoolwide approach 
offers increased opportunities to support comprehensive efforts 
to upgrade an entire school, and thereby more effectively help 
improve the achievement levels of the lowest achieving 
students. The February 25, 1999 testimony of Ms. Madeleine 
Manigold before the Subcommittee on Early Childhood, Youth, and 
Families, noted that Texas schoolwide programs had been 
particularly successful in improving the academic performance 
for all students and all groups of students in reading and 
mathematics. Further, her testimony indicated the performance 
gap has been closing at schools utilizing the schoolwide 
approach at an even greater rate than in the State of Texas as 
a whole.
    The State of Maryland has also had success with schoolwide 
programs. In Garrett County, through use of the schoolwide 
approach and an ed flex waiver, two elementary schools 
haveshown achievement on the Comprehensive Test of Basic Skills (also 
know as TerraNova) well above national averages.
    Sections 108 and 801 of H.R. 2 would continue to authorize 
the schoolwide approach, and expand it so that schools with 40% 
or more poverty could operate schoolwide programs. The 
Committee strongly endorses this increased flexibility at the 
local level and recognizes that many more schools may soon 
utilize this model for delivering Title I services than with 
the 50 percent threshold.
    Over the past year, it has come to the attention of the 
Committee that some schoolwide programs have not been utilizing 
the authority under current law to combine federal, State, and 
local education funds to serve the entire school, because of 
state and local fiscal accounting barriers. The consolidation 
of funds in order to use all available resources to upgrade the 
entire educational program in a high-poverty school is an 
integral component of a ``schoolwide'' program. Section 
108(b)(1) of H.R. 2 addresses this concern by making it clear 
that schools may ``consolidate'' funds. Current law states that 
the funds ``may be used in combination'' with other funds, 
which is unclear. Section 108(b)(4)(C)(i) of H.R. 2 addresses 
barriers that may discourage schools from consolidating funds 
by clarifying that schools do not need to conduct separate 
fiscal accounting by program to demonstrate that the intent and 
purpose of the programs are met. The statute does not require 
separate fiscal accounting records to demonstrate that the 
intent and purposes of all the programs that contribute funds 
toward the schoolwide program are met, but documentation is 
necessary. While the statute does not specify what type of 
documentation would be acceptable, the Committee anticipates 
acceptable documentation would include evidence that activities 
were conducted which address the intent and purposes of the 
programs. Finally, section 105(c)(7) also addresses schoolwide 
accounting barriers to consolidating funds by requiring states 
and localities to reduce any such barriers that schools may be 
experiencing.
    One of the components of a schoolwide program mentioned in 
the amendments to section 1114 are schoolwide reform 
strategies. Such strategies may include increasing the amount 
and quality of learning time, such as through extended school 
year and before and after school, and summer programs. The 
committee believes that after school and summer enrichment and 
gifted and talented programs provide special opportunities for 
schoolwide improvement and are important and valuable education 
reform tools.
    With respect to pre-kindergarten services, the Committee 
wishes to note that the Student Results Act retains as a 
component part of a schoolwide program provisions for assisting 
preschool children in the transition from early childhood 
programs, such as Head Start, Even Start, or State run 
preschool programs to elementary school programs. Specifically, 
the Committee improves upon these provisions by requiring local 
educational agencies to coordinate their educational services 
with those provided by local Head Start agencies, mirroring a 
provision added to last year's Head Start reauthorization. In 
addition, local educational agency plans must describe how 
local educational agencies will coordinate and integrate 
services relating to Head Start, Even Start and other preschool 
programs and how Title I funds will be used to support 
preschool programs for children.

Targeted assistance programs

    In addition to schoolwide programs, the other major program 
model for delivery of Title I services is the targeted 
assistance program. Under a targeted program, Title I services 
are focused upon the lowest achieving students in the school. 
For example, students may be ``pulled out'' of their regular 
classroom for several hours of more intensive instruction by a 
specialist teacher each week, or funds may be used to hire a 
paraprofessional who provides additional assistance to low 
achieving pupils in their regular classroom. School districts 
and schools have substantial discretion in determining how they 
will select pupils to be served by Title I, as long as their 
methods are applied consistently to all pupils in the grades to 
be served.
    Section 109 would essentially continue the targeted 
assistance program intact with a few minor changes. However, 
one significant change for both schoolwide programs and 
targeted assistance programs would be the scientifically based 
research requirement as mentioned below.

Scientifically based research

    Consistent with the Reading Excellence Act, the Committee 
believes that Title I programs--whether utilizing the 
schoolwide approach or the targeted approach--should be based 
on sound scientifically-based research. Dr. Reid Lyon of the 
National Institute of Child, Health and Development (NICHD), in 
testimony before the full Committee on July 27, 1999 noted that 
many educationally disadvantaged students continue to fail at 
mastering reading because the methods of instruction--though 
touted as ``research-based''--are not of the quality and rigor 
that they should be in order to bring about improvements in 
reading achievement. He said,

          * * * given that the term ``research-based'' implies 
        that the reading programs or approaches have been 
        objectively evaluated to determine for which children 
        the programs are most appropriate, why do so many 
        disadvantaged children continue to founder in reading? 
        One major reason is that the term ``research-based'' 
        currently means many things to many people, with 
        significant variations in the scientific quality of the 
        research described by the use of the term. For example, 
        some instructional reading programs touted as 
        ``research-based'' may be based upon mediocre and 
        substantially flawed scientific studies, while other 
        instructional programs are based on studies that meet 
        rigorous scientific criteria for research quality. The 
        problem is that many in the field of education do not 
        recognize the difference. To date, adherence to 
        scientific quality and criteria has not been a strong 
        guiding force in selecting and implementing 
        instructional reading programs and approaches for 
        children eligible for Title I services. [emphasis 
        added]

    To address this shortcoming, the Committee has included 
language in the bill which ensures that the instructional 
strategies used to provide Title I supplemental educational 
services must be of high quality and based on scientifically 
based research. This means the instructional strategies must 
have resulted from the application of rigorous, systematic, and 
objective procedures; must employ systematic empirical methods 
that draw on observation or experiment; involve rigorous data 
analyses; rely upon measurements or observational methods that 
provide valid data across evaluators and observers and across 
multiple measurements and observations; and have beenaccepted 
by a peer-reviewed journal or approved by a panel of independent 
experts through a comparably rigorous, objective, and scientific 
review.

Empowering parents

    For several years Title I has actively engaged parents in 
the education of their children through such things as parental 
compacts and formal parental involvement policies. School-
parent compacts, which are developed by parents and school 
officials, typically outline how parents, the school staff and 
students will share the responsibility for improving student 
achievement at the school. Such compacts also serve as the 
means by which the school and parents build and develop working 
partnerships to help children achieve to the advanced and 
proficient levels of performance on a state's assessments.
    In addition, Title I provides a structure for regular 
meetings at which parents are informed of the school's 
participation in Title I, what that participation means, and 
how the parents can be involved. Title I parents are also 
provided reports on the academic performance of their 
children's schools, their child's individual student assessment 
results, a description and explanation of the curriculum used 
at the school and the forms of assessments used to measure 
student progress, information on family literacy services, and 
in some cases, pays for the reasonable and necessary expenses 
of attending school-related meetings and training sessions.
    Section 114 of H.R. 2 would generally continue the existing 
approach of parental involvement as outlined above. However, 
the Committee wishes to note that there are several other new 
provisions in H.R. 2, which would put more power in the hands 
of parents. As mentioned earlier in this report, one of the 
most significant provisions in the Student Results Act is the 
parental public school choice option. For the first time, 
parents would be given the choice of opting their child out of 
a low performing Title I school, and transferring to another 
higher performing public school or public charter school. For 
families that need assistance with transportation, Title I 
funding could be used to assist with that purpose.
    Other significant parental empowerment provisions are the 
annual State academic reports on schools and the school 
district reports. H.R. 2 would require that parents be given 
information, through school district report cards and annual 
State reports, or through other means, on the academic quality 
of Title I schools. Such information would include, among other 
things, test scores at the school as compared to other Title I 
schools in the school district, and to the State as a whole. 
Such scores would be disaggregated according to race, 
ethnicity, migrant status, economically disadvantaged, 
disability status, and limited English proficiency status.
    A third parental empowerment provision is section 
105(h)(5), which would require school districts to make 
available, upon request, information regarding the 
qualifications of the Title I student's classroom teachers, 
including such information as whether the teacher has met State 
qualifications and licensing criteria for the grade levels and 
subject areas in which the teacher provides instruction, 
whether the teacher is teaching under emergency or other 
provisional status, and the baccalaureate degree major of the 
teachers and any other graduate certification or degree held by 
the teacher.
    A fourth parental empowerment aspect of H.R. 2 is the 
addition, in several places, of the requirement that 
information to parents be provided in a form and, to the extent 
practicable, a language that they can understand. The Committee 
believes that access by parents to all information provided by 
Title I programs is critical and that the form and language in 
which the information is provided should not be a barrier to 
full parental participation. While the Committee recognizes 
that it may be difficult to provide information to parents in 
all languages, it is the Committee's intent that State 
educational agencies, local educational agencies, and schools 
make reasonable efforts to ensure that parents receive 
information in a language they can understand.
    The Committee believes that these provisions will leverage 
improvements in the quality of Title I services by giving 
parents and communities the information they need to hold Title 
I schools accountable for results.

Testing of students in the English language

    Recognizing the many benefits of prompt acquisition of 
English language skills, the Committee has included language in 
the bill requested by the Clinton Administration regarding 
testing of certain Title I students in the English language. 
Section 105(b)(4)(F)(iv) of H.R. 2 would require all Title I 
students who have attended schools in the United States for at 
least three consecutive years be tested in reading and language 
arts in the English language. Attaining English proficiency, 
particularly for purposes of reading and language arts tests, 
is especially important for the success of limited English 
proficient students in the early years. However, recognizing 
that there may be some situations where limited English 
proficient students may have difficulty mastering the language, 
the local educational agency may extend the 3 year time frame 
mentioned above for one additional year on an individual case 
by case basis.

Parental rights and notification provisions

    Over the past few years, the Committee has heard a growing 
number of complaints from parents whose children have been 
placed and retained in bilingual education courses without 
their permission or knowledge. In many instances, these parents 
faced great resistance in their efforts to remove their 
children from such programs.
    Since the enactment of the Improving America's Schools Act, 
Title I, Part A has provided services to limited English 
proficient children. In fact, the Title I program far 
outdistances the Bilingual Education Act in the provision of 
services to limited English proficient children. For 1996-97, a 
total of 430,724 children received services under the Bilingual 
Education Act (with some children participating in several 
programs). At the same time, over 1.8 million limited English 
proficient children were served under Title 1, Part A. The 
Committee is concerned that many of the problems related to 
program participation that have arisen under the Title VII 
Bilingual Education Act will emerge under Title I, Part A, as 
well.
    Because of this concern, the Committee has included 
language in Title 1, Part A requiring local educational 
agencies to obtain informed parental consent prior to placing a 
child in an English language instruction program for limited 
English proficient children. This restriction would notapply to 
classes which exclusively, or almost exclusively, use the English 
language in instruction or where instruction is not tailored for 
limited English proficient children. The provision does allow LEAs to 
serve children if a response is not obtained from their parents after 
written notice and reasonable effort to obtain such consent. In such 
instances, a local educational agency must document, in writing, that 
it has given such written notice and has made specific efforts to 
obtain such consent. LEAs must then provide proof of such efforts, in 
writing, to the parents or guardian of the child at least 10 business 
days prior to the actual provision of services under this part. Such 
correspondence must include a final notice requesting parental consent 
for such services.
    The Committee wants to make it very clear that informed 
parental consent is only required for classes which are 
exclusively or almost exclusively taught in English or for 
classes not tailored for limited English proficient children. 
For example, mainstream classes in academic subjects that do 
not use a child's native language in instruction would not be 
covered under this provision.
    According to a November, 1997 report issued by the United 
States Commission on Civil Rights entitled Equal Educational 
Opportunity and Nondiscrimination for Students with Limited 
English Proficiency: Federal Enforcement of Title VI and Lau v. 
Nichols,

          School districts across the country are experiencing 
        serious tensions between school officials and parents 
        over placement. Many parents of students with limited 
        English proficiency are expressing dissatisfaction with 
        the education their children are receiving. For 
        example, in New York City, Maria Perez, a parent who is 
        fighting her child's placement in the city's bilingual 
        education program recently stated: ``what bothered me 
        was that they place children in bilingual programs and 
        keep them there for years and years. They aren't 
        learning English.'' The problems that prevent academic 
        success can and should be addressed by parents working 
        together with school personnel to determine where the 
        problems exist and how they can be solved.

    The parental consent provisions in this bill make it very 
clear that parents should play a major role in determining the 
placement of their child in an English language instruction 
program. Schools should not be making decisions regarding the 
placement of English language learners unless they have reached 
an agreement on such placement with the child's parents. 
Parents want their child to learn English as quickly as 
possible because they know it is the language of success. They 
should be able to prevent their child from being placed in a 
classroom which they do not believe will help them learn 
English and succeed in school. Parents should also have the 
ability to remove their child from such a classroom if they 
believe it is not in their child's best interest. The Committee 
agrees with the report of the Civil Rights Commission in 
stating that parents and schools should be working together to 
make the best possible decisions regarding the education of 
English language learners.
    Finally, H.R. 2 includes a provision requiring school 
districts to allow parents to choose the type of English 
language instruction program in which their child is enrolled 
if more than one type of program is offered. Again, the 
Committee believes parents should play a major role in guiding 
the education of their children.

Teachers, paraprofessionals, and professional development

    The Title I Follow-Up School Survey (Washington, DC: US 
Department of Education, 1998) found that approximately 74,600 
full time teachers were funded under Title I during the 1997-98 
school year, a level that has remained fairly consistent over 
the past 20 years.
    Given that up to half of Title I funds goes toward 
teachers, the Committee has been keenly interested in the 
quality of these teachers. The US Department of Education's 
1999 Study of Education Resources and Federal Funding, showed 
that in fact all Title I teachers possess a Bachelor's degree, 
while half have a Master's degree--reflecting the average 
educational attainment of teachers nationwide. However, while 
it is known that nationwide, 44% of middle schools teachers 
majored in an academic field, there is not reliable data on the 
percentage of Title I teachers with a major in an academic 
field. Teacher Quality: A Report on the Preparation and 
Qualifications of Public School Teachers, January 1999, 
National Center for Education Statistics. 
    Although not specifically dealing with Title I teachers, a 
report by the Education Trust entitled ``Good Teaching 
Matters''--Vol 3, Issue 2, ``Thinking K-16'' A publication of 
the Education Trust'', provides data compiled by Richard 
Ingersoll, a professor at the University of Georgia on the 
quality of teachers in poor schools. Specifically, he found 
that while only 15% of classes in low poverty schools are 
taught by teachers lacking a major in field, fully 25% of 
classes in high poverty schools are taught by such teachers. As 
the report notes, ``the very youngsters who are most dependent 
on their teachers for content knowledge are systematically 
taught by teachers with the least content knowledge.''
    The United States Department of Education's 1999 National 
Assessment of Title I noted teacher quality as one of the 
challenges continuing to face Title I.

          Along with the evidence that high-achieving high-
        poverty schools focus attention on challenging 
        standards for all students, comes the reality that many 
        teachers are not prepared to teach to challenging 
        standards. In a 1998 survey, only about one-third of 
        teachers in schools with 60% or more poor children 
        believe they are well-equipped to use standards in the 
        classroom. This is particularly noteworthy given 
        evidence that teachers' reported preparedness in both 
        subject matter and instructional strategies had a 
        positive relationship with student gains.

    It is the strongly held view of the Committee that each and 
every teacher hired using these funds be fully qualified to 
teach. In a series of hearings earlier this year, leading to 
the passage in the House of H.R. 1995, the ``Teacher 
Empowerment Act,'' the Committee was provided the most recent 
findings on the difference that a qualified teacher can make in 
the academic lives of students.
    Dr. Sandra Horn, University of Tennessee, Value Added 
Research and Assessment Center Knoxville, Tennessee, provided 
one such example. In her remarks, she stated:

          In the past few years, the team at the University of 
        Tennessee Value-Added Research and Assessment Center 
        (UT-VARAC) has examined the effects of class size, 
        class heterogeneity, past achievement level of 
        students, building change, and several other factors on 
        the academic growth of students. Although several of 
        the factors studied affect student gains to some 
        degree, in every case, the effect of the teacher has 
        been found to be far and away the most important 
        determinant of student academic growth. Effects of 
        ineffective teachers are cumulative and very large and 
        can be seen years after a student moves on to other 
        teachers. There is no evidence that effective teachers 
        can ever rectify the retardation of academic growth 
        that occurred under a previous poor teacher. And there 
        is evidence that teacher assignment patterns may indeed 
        be perpetuating and sustaining the achievement gap 
        between white students and minority students.

    The impact of quality teachers is also highlighted in the 
report by The Education Trust, reference above, entitled, 
``Good Teaching Matters.'' Among the findings highlighted in 
the report were those from a large-scale study in Texas 
conducted by Ronald Ferguson of Harvard University. His study 
``found that teacher quality--as measured by education, 
experience, and test scores on initial teacher licensing 
exams--has more impact on student achievement (explained some 
43% of the variance) than any other single factor, including 
family income and parent education.''
    Based on the same work outlined by Dr. Horn, the Education 
Trust report also notes that Dr. William Sanders of the 
University of Tennessee found that, ``students who scored at 
roughly the same level on mathematics tests in third grade were 
separated by differences of as much as 50 percentage points on 
sixth grade tests depending on the quality of the teachers to 
whom they were assigned. Scoring differences of this magnitude 
can represent the difference between placement in the remedial 
and accelerated tracks.''
    Additionally, the report noted that ``In North Carolina, 
Robert Strauss and Elizabeth Sawyer found that a 1% increase in 
teacher scores on the State's initial teacher licensing exam 
would bring about a 5% decrease in the number of North Carolina 
students failing the State's academic competency tests.''
    Given the importance of teacher quality, and the high 
proportion of federal education dollars used to fund teachers, 
the Student Results Act of 1999 includes language to ensure 
that at a minimum, all teachers hired under Title I will meet 
the teaching requirements within the State they are teaching. 
As part of this minimum level of education, these teachers will 
have to demonstrate their grasp of the subjects in which they 
teach. This not only raises the bar for teachers teaching under 
Title I, it also represents a signal to school administrators 
that every effort should be made to avoid assigning a teacher 
to a class in which the teacher has no academic subject 
knowledge.
    The Committee believes the combination of these minimum 
education levels, along with the increased information provided 
to the parents of students being taught by unqualified or 
under-qualified teachers, will have a significant and lasting 
impact on the quality of instruction under Title I and an 
increased level of academic achievement among students in Title 
I schools.
    The Student Results Act of 1999, also incorporates language 
from H.R. 1995, as passed, in which States must plan for how 
they will ensure all teachers in the State meet their minimum 
certification or licensure requirements and will be proficient 
in the academic subjects in which they teach.
            Paraprofessionals
    Teacher aides, otherwise referred to as paraprofessionals, 
have been a fixture of Title I since it's inception. In a 
report prepared for the National Education Association, 
Paraprofessionals in the Education Workforce, 1995, Anna Lou 
Pickett, referring to such programs as Title I and Head Start, 
noted that ``federal legislation in the 1960's and 70's 
designed to carry out the War on Poverty provided significant 
impetus and support for the employment of paraprofessionals.''
    Given this historical perspective, it may not be surprising 
that nearly 40 years later, some leading education experts, 
including those within the U.S. Department of Education, are 
beginning to openly question whether the use of Title I aides 
has amounted to simply a jobs program for those within the 
community. This view is supported by the fact that the use of 
paraprofessionals is often far greater in urban, and other 
traditionally higher unemployment, areas.
    A recent Los Angeles Times article (``Title I's $118 
Billion Fails to Close Gap''. 1/17/99) highlighted some of the 
concerns related to the use of paraprofessionals under Title I.

          * * * part of the problem, according to high-ranking 
        education officials and other experts, is that schools 
        squander Title I funds on clerical workers and 
        classroom aides who lack the expertise to teach poor 
        students the kind of high-level skills needed to 
        compete with their more affluent peers.
          ``It's pretty significant that half of the 
        instructional staff under Title I were 
        paraprofessionals,'' said Val Plisko, who supervises 
        independent evaluations for the Education Department's 
        Planning and Evaluation Service. ``For children who are 
        most at risk, you want the best-educated, the most 
        knowledgeable, the most effective teachers.''

    The 1999 National Assessment of Title I noted that there 
has been a growth of paraprofessionals since 1993, from 65,000 
full-time aides to 76,900 in 1997-98. (52,000 of these aides in 
1997-98 were in high-poverty schools). It is estimated that up 
to 25% of all Title I funds are used to hire paraprofessionals. 
``In California, the latest available figures indicate that the 
ratio of aides to teachers paid for by Title I funds is 4 to 1. 
At Los Angeles Unified, the nation's second-largest school 
district, the ratio is about 7 to 1.'' (1/17/99 Los Angeles 
Times)
    Nevertheless, some educators see significant value in the 
use of Title I funds for paraprofessionals when they are 
properly trained, and utilized effectively by a qualified 
teacher. However, there is growing evidence that the roles and 
responsibilities given to paraprofessionals by both teachers 
and principals, has gone beyond the original intent. Too often 
paraprofessionals are asked to carry out duties for which they 
are not qualified.
    Currently, under ESEA, paraprofessionals employed with 
Title I funds must meet three criteria: have the knowledge and 
skills necessary to assist Title I children in meeting 
education goals; be within two years of having a diploma or GED 
(except that paraprofessionals acting as translators have no 
such requirement); and be under the direct supervision of a 
teacher.
    In fact, most paraprofessionals meet the minimum education 
requirements under current law. According to the 1999 National 
Assessment of Title I, 99% of paraprofessionals have a high 
school diploma or GED. However, the educational attainment of 
paraprofessionals in high-poverty schools is often far below 
that of their peers in low-poverty schools. Specifically, while 
37% of paraprofessionals in low-poverty schools have a 
bachelors' degree, only 10% of those in high-poverty Title I 
schools have a bachelors' degree. Similarly, while 86% of 
teacher aides in low-poverty schools at the secondary level 
have a bachelors' degree, just 4% of their counterparts in 
high-poverty schools have a bachelor's degree.
    If paraprofessionals were strictly carrying out non-
instructional duties, the fact that many have a minimum level 
of education would not pose a significant problem. However, as 
noted in the 1999 National Assessment of Title I prepared for 
the U.S. Department of Education, paraprofessionals under Title 
I ``spend a majority of their time teaching despite their lack 
of the educational background to do so.'' Providing detail as 
to the extent of this problem, the Assessment noted the 
following findings: 98% of aides were either teaching or 
helping to teach students; 76% of aides spent at least some of 
this time teaching on their own, without a teacher present; and 
46% of aides in high-poverty schools spent half or more of this 
time on their own, without a teacher present.
    Given that Title I students are being extensively exposed 
to paraprofessionals, (often without the direct supervision of 
a teacher), the Committee is concerned with growing evidence 
that such trends may be having a negative impact upon student 
achievement. An article in the The New Republic (``The Trouble 
with Teacher's Aides,'' August 9, 1999) indicated that ``A 
recent Department of Education reanalysis of Title I data from 
the late '80s found `no positive impact' for students in 
classes with teacher aides.''
    A press release issued by the Educational Research Service 
in April 1999, entitled the ``Unexpected Lessons from the 
Tennessee Project Star Study'' provided further evidence of the 
impact paraprofessionals may have upon student achievement. The 
study found that classes of 25 students with a full-time 
teacher aide did not improve student achievement in grades K-3 
in reading or math. A follow up study found that students who 
had been taught in the regular/aide classes found consistent 
small negative affects on student achievement.
    In response to these and other concerns over the use of 
paraprofessionals, the Student Results Act of 1999 includes 
provisions to raise the educational level of paraprofessionals 
and to ensure they are provided with appropriate 
responsibilities.
    First, the language sets a higher threshold of 
qualifications for paraprofessionals, surpassing that of simply 
a high school diploma or its equivalent. Specifically, it 
requires paraprofessionals to have completed either two years 
of college; an associate's degree; or met a rigorous standard 
of quality through a formal assessment, knowledge of and the 
ability to instruct in reading, writing, or math, or reading 
readiness, writing readiness, or math readiness. The Committee 
emphasizes that such assessment shall not simply be met by 
receipt of a high school degree, or its equivalent.
    Secondly, the language sets clear guidelines for duties 
that paraprofessionals may carry out. The Committee believes 
that if paraprofessionals are hired under Title I, they should 
not simply serve in an administrative or child-supervisory 
capacity. Instead, paraprofessionals should, when qualified, 
assist primarily in providing instructional services to 
students. The Committee emphasizes language included under the 
Act which prohibits paraprofessionals from providing 
instruction if not working under the direct supervision of a 
fully qualified teacher. The language goes further with respect 
to instructional services in the area of reading, a subject in 
which 88% of paraprofessionals assist in providing instruction. 
Specifically, paraprofessionals may not provide instructional 
services to students in the area of reading unless the 
paraprofessional has demonstrated, through a State or local 
assessment, the ability to effectively carry out instruction in 
reading, writing, and math. This provision comes amid a growing 
consensus of the importance that students receive instruction 
founded upon scientifically based research and from fully 
qualified teachers.
    It is the intent of the Committee that the SEA carefully 
monitor the quality of the local formal assessment of 
paraprofessionals to ensure that the assessments are rigorous. 
The Committee intends that only qualified teachers provide 
instructional services to Title I students and that 
instructional services provided by paraprofessionals be 
restricted to one-on-one tutoring that reinforces and supports 
the instruction provided by the teacher.
    The Committee notes language that has been added to the 
Student Results Act prohibiting the Secretary from imposing any 
mandatory national certification of paraprofessionals.
    Finally, in an attempt to stem the continued growth of 
paraprofessionals hired under Title I, the provisions include a 
freeze on the hiring of paraprofessionals. The language does 
however, allow for vacancies created by departing 
paraprofessionals to be filled. The intent of the Committee is 
that local educational agencies could fill vacancies caused by 
the departure of a paraprofessional from a school, but would 
not be allowed to create ``new'' vacancies which would result 
in an increase in the number of paraprofessionals above what 
existed before departures. The Act provides an exception to 
this hiring freeze if the local educational agency is able to 
demonstrate that all teachers within the local educational 
agency are fully qualified. In any event, this exception does 
not waive the minimum qualifications paraprofessionals must 
meet, as described above and under subparagraphs (b) and (c) of 
section 1119.
    The Committee believes that these provisions, along with 
the increased information on the quality of paraprofessionals 
provided through report cards under this Act, will 
significantly increase the quality of paraprofessionals within 
Title I schools. During the course of the next several years, 
the Committee intends to continue to take a close examination 
of the role of paraprofessionals to determine if further 
changes to Title I need to be made in this area. As part of 
this process, the Act also includes a request for the General 
Accounting Office to begin taking a closer look at the extent 
to which paraprofessionals are utilized under Title I.
            Professional development
    The Study of Education Resources and Federal Funding found 
that in FY 1997, Title I expenditures on professional 
development at the district and school levels amounted to $191 
million. The study noted that use of Title I funds for 
professional development was widespread, with 86 percent of 
district coordinators reporting using at least some portion of 
their Title I funds for this purpose.
    Although widespread, the intensity of professional 
development provided to Title I teachers appears to be limited. 
The 1999 National Assessment of Title I found that ``55% of 
teachers in high-poverty schools reported spending less than 9 
hours per year on training in the content areas. Moreover, 70% 
of teachers in high-poverty schools report receiving less than 
9 hours per year of professional development related to State 
or district curriculum and performance standards * * * ''
    With the focus on teacher quality and the increased 
attention on ensuring fully qualified teachers in every 
classroom, it can be expected that professional development 
will constitute a growing proportion of the use of Title I 
funds in the coming years. In anticipation of this growth, the 
Student Results Act of 1999 builds upon current Title I 
provisions, and language from the House-passed Teacher 
Empowerment Act, H.R. 1995, to ensure that professional 
development under Title I is worthwhile.
    Through a series of hearings related to teacher quality, 
the Committee heard from a variety of witnesses on the 
importance and characteristics of high quality professional 
development.
    At a joint hearing with the Committee on Science, this 
Committee heard from Dr. Jane Butler Kahle, Condit Professor of 
Science Education at Miami University in Oxford Ohio, who 
provided an overview of the leading research in this area. She 
noted results from a systemic initiative in Ohio, which found 
that teachers participating in sustained professional 
development, when compared to those who had not, had students 
with higher test scores. For example, she noted, ``African-
American girls in classes of teachers with sustained 
professional development scored 9% higher on the science 
achievement test than did their peers in classrooms of teachers 
who had not participated.''
    While some professional development can lead to higher 
student achievement, it is clear that not all professional 
development leads to such results. Dr. Kahle also noted the 
work of Dr. D.H. Monk, which concluded that ``additional 
coursework in specific areas (e.g., number and kinds of science 
and mathematics courses) has a positive effect on student 
learning, while additional coursework by teachers in unrelated 
subjects has no, or a negative effect on student learning.'' 
Dr. Kahle concluded that ``short-term, finite programs 
(described in the vernacular as ``make and take'' or ``spray 
and pray'' workshops) usually do not result in improved content 
knowledge for teachers, or changes teaching practice, or 
enhanced student learning.''
    The reforms to professional development contained in the 
Student Results Act builds upon research and evaluations, such 
as the American Institute of Research's evaluation of the 
Eisenhower Professional Development program. These reports have 
begun to identify common characteristics of effective 
professional development.
    Specifically, professional development must be: (1) 
directly related to the curriculum and content areas in which 
the teacher provides instruction and be designed to enhance the 
ability of the teacher to understand and use the State's 
standards for the subject area in which they teach; (2) 
measured in terms of progress in increasing student achievement 
and improving content knowledge of teachers as demonstrated 
through reductions in out-of-field teaching and emergency 
certified teachers; (3) tied to challenging State or local 
content standards and student performance standards; (4) tied 
to scientifically based research demonstrating the 
effectiveness of such programs in increasing student 
achievement or substantially increasing the knowledge and 
teaching skills of such teachers; (5) developed with extensive 
participation of teachers, principals, and administrators of 
schools to be served under this part; and (6) 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.
    The Committee believes that with the focus on quality under 
both Title II of ESEA and the changes made under this Act to 
Title I, teachers will have the opportunity to participate in 
high level programs that have a direct impact in not only 
raising their own skills but also translating those skills into 
gains in academic achievement of their students.

Participation of children enrolled in private schools

    In general, under current law Title I services are provided 
to eligible private school children directly by the local 
educational agency or through a third party contract with the 
school district. As a part of the process, the local 
educational agency is required to provide timely and meaningful 
consultation with private school officials on how the needs of 
private school children will be identified, what kinds of Title 
I services will be offered, how and where the services will be 
provided, how the services will be assessed, the size and scope 
of the services, and the proportion of funds allocated.
    The 1998 Department of Education publication Title I 
Services for Private School Students under the Reauthorization 
of ESEA [Elementary and Secondary Education Act]: A Snapshot of 
Federal Assistance in Transition indicates that there is 
serious disagreement among public, private, and religious 
school representatives on the extent to which Title I 
consultations have been meaningful and timely. Catholic school 
officials have informed the Committee that in some areas of the 
country, local educational agencies provide little or no 
consultation with private school officials, and where 
consultation does occur, it can hardly be considered 
meaningful. In written testimony submitted to the Committee on 
Education and the Workforce on June 10, 1999, Mr. John R. 
Clark, Assistant Superintendent for the Diocese of Allentown 
Pennsylvania and Chairman of the United State Catholic 
Conference Federal Assistance Advisory Commission told how 
public and private school officials developed and implemented a 
specific signoff form by both parties as to the issues on which 
consultation takes place. This approach has worked well in 
Pennsylvania and the Committee wishes to offer the Pennsylvania 
model as an example to other local educational agencies of what 
has worked well in one jurisdiction. A copy is included as 
Attachment A in the Appendix to this committee report.
    The Committee has included language in Section 117(b) of 
the Student Results Act which tightens the requirements for 
``timely and meaningful consultation.'' Under H.R. 2, the local 
educational agency must consult with private school officials 
not only on how and where the services will be provided, as 
under current law, but they must also consult on the selection 
of the contractor that provides the services, in situations 
where contractors are utilized. In addition, the local 
educational agency must tell how the Title I services will be 
assessed, and how the results of that assessment will be used 
to improve the services to private school children. The 
consultations must involve not only meetings prior to the 
school district making a decision on the services, but also 
throughout the implementation and assessment of the services. 
Such measures will help ensure that high quality services are 
provided to private school children. The requirement that the 
services be assessed and that the district use the results to 
improve the services should help guard against private schools 
receiving poor quality services, and having no recourse. The 
Committee is aware of a situation in Compton, California where 
private schools had no choice but to continue to tolerate 
ineffective and poor quality services for an extended time, 
prior to the Department of Education reviewing the situation. 
Such situations should be less likely with these new provisions 
in place.
    H.R. 2 also provides a phase out over a three year period 
of the capital expense account for private schools, which had 
been used to offset the costs, for example, of renting space in 
``neutral'' sites to deliver instruction. With the June 23, 
1997 United States Supreme Court decision in Agostini v. Felton 
(521 U.S. 203 (1997)), such rentals are no longer essential to 
meeting federal constitutional requirements. In Agostini, the 
court abandoned the presumption that placing public employees 
within religious institutions inevitably results in either 
indoctrination, excessive entanglement, or a symbolic union 
between government and religion. However, the Committee is 
informed that in some school districts, long term contracts for 
the rental of neutral sites for the provision of services 
continue to exist, and in an effort to address such situations, 
the Committee has chosen to continue the authorization for 
capital expenses but only for a three year period, and in 
declining amounts each year.

                  Title I, Part A--Allocation Formulas

    H.R. 2 makes minor changes to the Title 1 Part A formula 
because the Committee believes that the significant changes 
made to the formula in the 1994 amendments have not been 
implemented due to 100 percent hold harmless provisions applied 
by the Appropriations Committees since 1995. In an effort to 
break that trend, the Committee has made a change in how new 
funds are to be distributed which is described below. The 
Committee is hopeful that the Appropriations Committees will 
abide by the authorizing statute so that Title 1 funds can be 
distributed to those areas where the most disadvantaged 
children live so those children who need these educational 
services the most can receive them.
    With respect to the share of Part A funds to be allocated 
under each of the authorized formulas--Basic, Concentration, 
and Targeted Grants--the bill provides that an amount equal to 
the FY1999 appropriation will be allocated under the Basic and 
Concentration Grant formulas (and in the same proportions as 
for FY1999--85% Basic Grants and 15% Concentration Grants). 
Next, any increases in funds over the FY1999 appropriation for 
Part A will be allocated one-half under the Targeted Grant 
formula and one-half under the Basic and Concentration Grant 
formulas (again, 85% Basic Grants and 15% Concentration Grants 
for this half of the increase).
    The major provisions of the Basic, Concentration, and 
Targeted Grant formulas in H.R. 2 are generally the same as 
under current law. However, the bill does make the following 
modifications to the current provisions of these formulas. 
First, a hold harmless rate, of 85% of previous year grants, 
will be applied to Concentration Grants. Currently, the ESEA 
provides a hold harmless rate of 85-95% of previous year grants 
for Basic and Targeted Grants, but no hold harmless for 
Concentration Grants. In addition, for the Concentration Grant 
formula only, H.R. 2 provides that hold harmless amounts would 
apply to all local educational agencies, including those which 
do not meet ``primary eligibility criteria''--i.e., the 6,500 
or 15% thresholds for receipt of Concentration Grants; however, 
this provision would no longer apply if a local educational 
agency does not meet the eligibility thresholds for 4 
consecutive years.
    Second, H.R. 2 deletes the Temporary Assistance for Needy 
Families (formerly the Aid to Families with Dependent Children) 
category of children counted in the Part A allocation formulas. 
There are extremely few of these children currently--only 
children aged 5-17 in families receiving Temporary Assistance 
for Needy Families payments in excess of the poverty income 
level for a family of 4 are counted. For FY1999, these children 
constituted only about 0.1% of all of the children counted in 
allocating Title I grants, and over 97% were of them were in a 
single state.
    Third, the expenditure factor used in all of the Title I 
allocation formulas will be increased for Puerto Rico in stages 
over the FY2000-2004 period. As a result, at the end of this 
period, the Puerto Rico expenditure factor will be at least 85% 
of the minimum expenditure factor applicable to the 50 States 
and the District of Columbia (for FY1999, it is 71.5% of this 
minimum). However, this provision will not be implemented if it 
would result in any State receiving less than its previous year 
grant under Part A.
    Fourth, the bill eliminates a number of provisions that 
were in effect only for past years and are no longer relevant. 
Further, some provisions are simplified and/or clarified, with 
no substantive amendment.
    H.R. 2 deletes provisions for the fourth Title I, Part A 
allocation formula which is currently authorized, although no 
funding is provided for it--the Education Finance Incentive 
Grant formula. It also deletes the current provision for the 
reservation of $5 million each year for grants to the freely 
associated states (Palau, Federated States of Micronesia, and 
the Republic of the Marshall Islands), which are no longer U.S. 
territories, replacing it, through FY2001 only, with a 
requirement for a similar amount of each year's Part A grant to 
be distributed through a competition among these areas as well 
as other outlying areas. However, the Committee wants to make 
clear that the outlying areas (U.S. Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Marianas) 
will receive their full allotment under the one percent 
reservation and do not have to compete for their share. The 
outlying areas, however, are eligible to compete for additional 
funds under the competition described above.

            Title I, Part B--Education of Migratory Children

Background

    Title I, Part C of the ESEA, program for the children of 
migrant workers was created to assist migrant children in 
overcoming problems associated with multiple moves which 
interrupted their education and prevented them from performing 
well in school. The program serves migrant children ages 3-21, 
as well as emancipated youth and formerly migrant children. 
Most migrant programs are administered by local educational 
agencies (LEAs) and operate during the summer months as well as 
the regular school year. Services provided by LEAs include 
instruction, health services, counseling and testing, career 
education, preschool services, and transportation to migrant 
services.

Views

    The children of migrant workers are some of the most 
vulnerable children in schools throughout the United States. 
Migrant children at greatest risk are those whose education is 
interrupted as they follow their parents along the migrant 
stream. According to the Department of Education, for 1996-97 
States reported approximately 580,000 Migrant Education Program 
participants, including 475,000 served during the regular 
school year and 285,000 served in the summer program.
    H.R. 2 extends the Title 1, Part C program serving the 
needs of migrant children and makes modest changes directed at 
improving services to this at-risk population. The dropout rate 
for this population of students is very high and the additional 
academic assistance they receive under this Act is often the 
determining factor in whether or not they stay in school and 
graduate.
    Of key interest to the Committee has been the ability of 
States to rapidly transfer student records in the absence of 
the costly Migrant Study Records Transfer System (MSRTS). MSRTS 
was eliminated as a part of the Improving America's Schools Act 
because it was found to be ineffective in completing its 
primary responsibility of transferring student records.
    Changes to this Act during the 103rd Congress directed the 
Secretary to pursue alternative strategies for the effective 
and efficient transfer of student records. Report language also 
encouraged States to develop agreements on transferring credits 
from one school to another.
    In the absence of MSRTS, the Department of Education found 
that most States and school districts have relied on mail, 
telephone and fax machine to transfer records for migrant 
students. Although 19 States have some type of electronic 
system in place, many of these systems are used for 
maintaining, rather than transferring, student records.
    The Committee believes the transfer of student records is 
key to the ability of schools to adequately serve the 
educational needs of migrant students. If basic, essential 
information regarding a child's grade, test scores and 
vaccination records are not transferred in an efficient manner, 
a child may be subjected to additional vaccinations and be 
incorrectly placed in a classroom above or below their actual 
academic abilities.
    As such, the Committee has modified the Title 1, Part C 
Migrant Education Program to require the Secretary to 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 is further required to 
work with States in order to determine the minimum data 
elements for records to be maintained and transferred when 
funds under this part are used for record transfer.
    In addition, the Committee has included language in H.R. 2 
to require a local educational agency receiving assistance 
under this Part to make student records available, at no cost, 
to another local educational agency requesting such records in 
order to meet the needs of a migratory child.
    The Committee wants to make it very clear that the timely 
transfer of student records is an important element of the 
Migrant Education Program. It expects States and local 
educational agencies to work together to ensure that student 
records are transferred as quickly as possible through the most 
effective possible means. It would further encourage States and 
local educational agencies to develop effective means of 
electronically transferring student records. The Committee 
believes that an additional focus on the electronic transfer of 
student records is vitally important to ensure that migrant 
children have access to high quality education.
    The Committee has also adopted the Clinton Administrations' 
proposal for simplifying the formula for distributing funds to 
the States. Under current law, counts of migrant students are 
based on estimates and full-time equivalents (FTEs) of these 
children. Current law requires either a burdensome collection 
of data or the continued use of increasingly dated FTE 
adjustment factors based on 1994 data. Under the 
Administration's proposal, a State's child count would be based 
on the number of eligible children, aged 3 through 21, residing 
in the State during the previous year, plus the number of 
children who received services in summer or intersession 
programs provided by the State. This approach is easier to 
understand and administer, minimizes the data-collection burden 
on the States, and encourages the identification and 
recruitment of eligible children. However, due to concerns that 
this new formula could cause a minor shift in funds, the 
Committee has included a hold-harmless, so that no State will 
receive less than the allocation it received in fiscal year 
2000. Only funding appropriated for this program over and above 
the amount appropriated for fiscal year 2000 will be 
distributed based on the new formula.
    The Committee has also modified the Title 1, Part C program 
for migrant children to eliminate the requirement that States 
develop both a comprehensive service-delivery plan and a 
program application. Key elements of the plan have been 
incorporated into the application requirements. This 
streamlining should reduce the paperwork burden on the States. 
The bill also provides States with greater flexibility in 
determining the activities to be provided with funds under this 
part as long as they are first used to meet the identified 
needs of migratory children that result from their migratory 
lifestyle and permit them to participate effectively in school.
    Over the years since the enactment of the Migrant Education 
Program, the number of migrant students graduating from high 
school has increased dramatically. However, it still lags 
significantly behind that of the general population. The 
Committee believes these changes willallow States and local 
schools to better meet the needs of this vulnerable population and 
insure they receive the best possible education.

            Title I, Part C--Neglected and Delinquent Youth

Background

    The Title I, Part D program provides formula grants to 
States for neglected and delinquent children being educated in 
State agency programs. These programs serve neglected and 
delinquent children and youth in institutions or community day 
programs, as well as those who are in adult correctional 
facilities. Funds are allocated to States on a formula based 
primarily on the number of children and youth in their State 
agency program who are enrolled in a regular program of 
instruction operated by the agency for at least 20 hours a week 
for children and youth, or 15 hours a week if the participant 
is an adult correctional facility. There is also a Subpart 2 
program for local educational agencies (LEAs), funded with 
allocations diverted from the Title I, Part A program, for 
districts with the high numbers or percentages of children in 
locally operated correction facilities. Funds are provided to 
LEAs for meeting the needs of youth returning from correctional 
facilities, for coordinating social and other services to help 
students complete their education, and for programs meeting the 
unique educational needs of students at risk of dropping out.

Views

    The Committee believes that far too many youth who spend 
time in correctional facilities do not graduate from high 
school. According to the Department of Education, one-third of 
16 and 17 year olds do not return to school after their release 
from a correctional facility and one-third of the enrolled 16 
and 17 year olds dropped out within 10 months. It is the view 
of the Committee that many of these students would stay in 
school and graduate if they received quality educational 
support during their incarceration and assistance in 
transitioning back into the school environment.
    To address these concerns, the Committee has made several 
changes to Subpart 1 and Subpart 2 of current law. 
Specifically, in Subpart 1, we have increased the percentage of 
funding each State agency is required to reserve to support 
projects that facilitate the transition of children from State-
operated institutions to local educational agencies from 10 
percent to 15 percent. The Committee believes that transition 
assistance plays a key role in determining whether or not 
delinquent youth will succeed in school and graduate.
    During the last reauthorization a new Subpart 2 was added 
to Part D to address the academic and other social service 
needs of youth in local correctional facilities. Its creation 
was based on evidence that children in local correctional 
facilities who were counted for the purpose of generating funds 
in Title I, Part A were, in most instances, not receiving 
services from Part A. Programs operated under this new Subpart 
were to address the academic needs of such youth while they 
were incarcerated and upon return to their local school. The 
portion of the program operated in local schools was intended 
to provide support to delinquent youth that were transitioning 
back into the regular school setting and to provide assistance 
to other youth at risk of dropping out.
    Concerns have been raised that the school portion of the 
Subpart 2 program has, more often than not, become a dropout 
prevention program that does not focus on assisting youth 
returning from correctional facilities. The Committee believes 
that other at-risk youth would benefit from the types of 
programs operated for delinquent youth under Subpart 2. 
However, it is the view of the Committee that programs under 
this Subpart should serve at-risk youth secondary to serving 
youth returning from correctional facilities. As such, the 
language in Subpart 2 has been revised to focus on the 
provision of services to youth returning from correctional 
facilities. If participating schools are able to serve other 
at-risk students at the same time, they are permitted to do so.
    The Committee has also modified the Subpart 2 program to 
allow the use of funds for several new activities, including 
curriculum-based youth entrepreneurship education, peer 
mediation, and mentoring.
    To be successful, it is the view of the Committee that 
curriculum-based youth entrepreneurship education programs must 
include organized academic materials that are sequentially 
based and which have been field-tested and based on sound 
educational practices. Additionally, such programs must have a 
demonstrated record of empowering disadvantaged youth with 
applied math and other analytical skills. There is growing 
evidence that innovative organizations and institutions working 
to instill entrepreneurial behavior, through classroom and 
practical experiences, and to expose young students to new 
career options, are highly effective in teaching some youth. 
Through such programs, students learn the basic skills required 
by entrepreneurs and gain a greater understanding of the 
relationship between academic subjects and the business world.
    In addition, mentoring programs have proven to be highly 
effective in assisting at risk and delinquent children to 
overcome academic and other problems by providing them with a 
strong adult role model. The Committee believes mentors, 
including senior volunteers, are highly effective in helping 
these youth.
    Delinquent youth are a high-risk population and the 
Committee believes they can easily turn to further involvement 
in criminal activities if they are not provided the support 
they need to stay in school and turn their lives around. The 
purpose of Subpart 2 is to insure they receive the assistance 
they need to graduate and lead productive lives.

              Title I, Part D--Comprehensive School Reform

    The Comprehensive School Reform Program (CSRP) was first 
funded in FY 1998 as part of the Departments of Labor, Health 
and Human Services, and Education Appropriations Act (P.L. 105-
78). The language in the appropriations bill in 1998 did not 
specifically amend Title I of the Elementary and Secondary 
Education Act. Rather the program was included in narrative, 
paragraph-style text in the conference report of the 
appropriations legislation. What theCommittee has done is 
incorporated the concepts from that legislation into a categorical 
grant included in the statutory text of Title I, Part E. This was done 
because the Committee has not been satisfied with the way the program 
has been implemented up until now, particularly given the absence of 
statutory format and content.
    Essentially, the CSRP provides financial incentives for 
schools to develop comprehensive reforms for the entire school, 
based upon reliable research and effective practices, with an 
emphasis on basic academics and parental involvement. These 
reforms are called ``comprehensive'' because they are intended 
to affect all aspects of school operations, including 
curriculum and instruction, school organization, professional 
development and resource use, rather than a piecemeal approach 
to reform. The intent is to provide another means by which to 
ensure that all children in a school achieve to a state's 
student performance standards.
    The Committee is aware of utilization of a number of pre-
existing comprehensive reform models throughout the country. 
While no one model fits all school situations, schools are 
encouraged to consider the positive aspects of existing design 
models as well as new approaches. The Committee is aware that 
some States, as well as the United States Department of 
Education, are attempting to limit comprehensive school reform 
to certain models or approaches. We disagree with such limits.
    The Comprehensive School Reform Grant Program included in 
Part D of the bill is authorized at $175,000,000. It provides 
formula grants to the States in proportion to their Title I 
Part A allocations under section 1124 to the State as a whole. 
Local educational agencies then apply to their State 
Educational Agency for the grants on behalf of individual 
schools that seek to implement comprehensive school reform. 
Grants to individual schools are for not less than $50,000 and 
renewable for two additional years after the initial one-year 
grant.
    The components of comprehensive school reform are: (1) 
utilization of innovative strategies and proven methods of 
learning, teaching and school management that are based on 
scientifically-based research; (2) integration of a 
comprehensive design; (3) provision of high quality and 
continuous professional development; (4) inclusion of 
measurable goals for student performance and benchmarks for 
meeting such goals; (5) support by teachers, administrators and 
other professional staff; (6) provision for the meaningful 
involvement of parents; (7) use of high quality external 
technical support; (8) inclusion of a plan for evaluation of 
the implementation of school reforms and student results 
achieved; and (9) identification of how other resources will be 
used to coordinate services to support and sustain the school 
reform effort.

                  Title I, Part E--General Provisions

    Title I, Part E, of H.R. 2, includes general provisions 
governing Title I. Such provisions include negotiated 
rulemaking; State rulemaking; rules of construction; local 
educational agency cost limitations; General Accounting Office 
studies; and definitions.

              Title II--Magnet Schools Assistance Program

Background

    The Magnet Schools Assistant Program provides competitive 
grants to Local Educational Agencies for magnet schools that 
are intended to reduce, eliminate, or prevent minority group 
isolation in elementary and secondary schools and to provide 
strengthened academic or vocational programs for students. In 
order to be eligible for a grant, a local educational agency 
must be participating in a court ordered or voluntary 
desegregation plan. Magnet Schools provide a special curriculum 
intended to attract students of different races.

Provisions of H.R. 2

    The Committee has made a number of revisions to the Magnet 
Schools Assistance Program, while keeping the basic structure 
intact. These revisions include an additional emphasis on 
student achievement and a renewed focus on serving magnet 
schools. Specifically, the bill reinstates the program's 
commitment to student achievement by not only stressing the 
need to reduce minority group isolation in elementary and 
secondary schools, but also by strengthening the finding and 
applications and requirements section in relation to academic 
performance. In addition, the bill includes professional 
development as a use of funds. As for renewing the program's 
focus on magnet schools, the bill eliminates two outdated 
priorities and repeals the Innovative Programs. However, any 
grant recipient that has an agreement in effect under the 
Innovative Programs will continue to receive funds through the 
end of the applicable grant cycle.

                      Title III--Teacher Liability

    The `teacher liability protection' provision provides 
limited civil litigation immunity for teachers, principals, 
local school board members, superintendents, and other 
education professionals who engage in reasonable actions to 
maintain order, discipline, and a positive education 
environment in America's schools and classrooms.

    Title IV--Indian, Native Hawaiian, and Alaskan Native Education

Background and committee views

    Programs designed to enhance the educational opportunities 
for native populations are administered by both the Department 
of Education under the Elementary and Secondary Education Act 
(ESEA) of 1965, and the Bureau of Indian affairs. Title IV of 
the Student Results Act updates and improves these programs as 
follows.

Department of Education programs

    Programs administered by the Department of Education are 
designed to provide financial support to reform and improve 
elementary and secondary school programs that serve American 
Indian students; improve and enrich the quality of education 
for Indian students; research and evaluate information on the 
effectiveness of Indian education programs; and improve 
educational opportunities for adult Indians. The majority of 
the funds are distributed under a formula basedon the number of 
Native American children in the LEA or BIA funded schools. For FY 1999, 
awards were made to 1,120 LEAs, 84 BIA grant/contract schools, and 70 
BIA operated schools, and served 460,782 students in 41 States. In 
addition, under Part C of the ESEA, the Department administers a number 
of competitive grant programs to provide supplemental education for 
Alaska Native children and adults.
    In updating and improving these programs, the Committee 
focused on improving student achievement, targeting resources 
to the programs that are providing the best results, greatly 
increasing the flexibility of the programs at the local level, 
reducing the administrative burden placed on participating 
entities, increasing the amount of aid that actually reaches 
the classroom, and increasing the emphasis placed on family 
literacy services for the effected populations. The centerpiece 
of the Committee's efforts is flexibility coupled with 
accountability for results. Specifically, the Committee 
included a new provision allowing LEAs which receive formula 
grants under Title IX Part A to commingle all of the federal 
funding they receive for educating Indian children, regardless 
of which agency provides it, into one coordinated, 
comprehensive program to meet the specific needs of Indian 
children. LEAs that choose to do this will submit a single plan 
describing how they intend to consolidate funding, and 
specifying the student achievement goals that they will meet. 
The Committee intends that these entities be given the maximum 
flexibility in implementing their plans, and expects the 
Secretary and the head of any effected agency to give 
applicants their fullest cooperation. The Committee is hopeful 
that the flexibility provided will allow LEAs to reduce 
administrative costs while improving services to Indian 
children. Additionally, the Committee has provided increased 
flexibility in counting eligible children for funding purposes 
to BIA funded schools. This is consistent with our efforts to 
reduce administrative burdens placed on grant recipients.
    The Committee has also accepted the Administration's 
proposed elimination of 4 unfunded programs under Part A. These 
programs include: Fellowships for Indian students; Indian 
Gifted and Talented programs; Grants to Tribes for 
Administrative Planning and Development; and Special Programs 
Relating to Adult Education. In taking this action, the 
Committee recognizes that none of these programs have been 
funded since Fiscal Year 1995, and that 2 of them have never 
been funded. This action is consistent with the Committee's 
philosophy of focusing resources on the programs which are 
providing the best results, and consistent with its 
responsibility to set priorities for the Appropriations 
Committee. The Committee notes that the services that would be 
provided under these programs to Indian youth and adults are 
currently funded through other authorities, including under 
other parts of this Act, the Higher Education Act, and through 
programs administered by the Bureau of Indian Affairs (BIA).
    The Committee has made significant reforms to programs for 
Alaska Natives under Part C. Specifically, the Committee has 
consolidated the 3 competitive grant programs serving Alaska 
Natives into a single, more efficient and flexible program to 
improve services.
    In an effort to ensure that more of the money provided 
reaches the classroom and serves the intended students, the 
Committee has limited recipients of funding under Title IX to 
using not more than 5 percent of the funding for administrative 
costs. This is consistent with the philosophy that a minimum of 
95 percent of federal education funds should reach the 
classroom.
    On a vote of 27-22, the Committee accepted an amendment 
offered by Representative Boehner, which eliminates the Native 
Hawaiian specific programs formerly authorized under Title IX, 
Part B, of the Elementary and Secondary Education Act. This 
action is consistent with attempts to reduce duplication of 
effort and focus scarce federal resources to those in greatest 
need. The Administration proposed similar action in its FY 1995 
budget request, citing as its rational the fact that similar 
assistance is available to all students, including Native 
Hawaiians, under programs such as Title I, the Gifted and 
Talented program, Even Start, Special Education, the Higher 
Education Act, and other, broader authorities. In taking this 
action, the Committee specifically considered available census 
data which shows that Native Hawaiian students already graduate 
from high school at a rate higher than the national average, 
and tend to come from families with incomes somewhat higher 
than the national average. The Committee notes that unlike 
other indigenous populations, there is no treaty relationship 
with the government of the United States, and no specific 
Constitutional responsibilities pertaining to Native Hawaiians 
as a distinct group. Unlike other indigenous populations, 
Native Hawaiians have a trust, established by the last Hawaiian 
princess, which exists solely to educate Native Hawaiian 
children. The Bishop Trust is currently one of the largest 
charitable trusts in the world, valued in excess of $10 
billion, and holds approximately 8 percent of all land in the 
State of Hawaii as well as a 10 percent share of Goldman Sachs. 
The Committee urges the Trust to redouble its efforts to 
educate Native Hawaiian children. The Committee also believes 
that these children should be given the same opportunities 
afforded to all of our children under the programs authorized 
in this and other acts. However, the Committee cannot justify 
the continuation of special programs serving only Native 
Hawaiian children.

Family literacy services

    Family literacy is a very effective method of stopping the 
cycle of illiteracy. It not only builds on the literacy skills 
of parents, but it insures their children will have every 
opportunity to succeed in school. Family literacy programs 
throughout the United States assist parents in obtaining the 
literacy and other skills they need to get a job, reduce their 
dependence on public assistance, and most importantly, to be 
their child's first and most important teacher. Family literacy 
strengthens families. Recognizing this, the Committee has 
included the provision of family literacy services as an 
allowable use of funds under formula and competitive grant 
programs authorized under Title IX. The Committee was pleased 
to hear the testimony of Ms. Rose Potvin regarding the FACE 
program operated by the Bureau of Indian Affairs. Language 
included in this legislation makes it clear that family 
literacy is a use of funds in BIA operated programs. The 
Committee encourages the BIA to expand the number of family 
literacy programs in order to insure positive outcomes for 
children and their parents.

Bureau of Indian Affairs programs

    The Committee is encouraged that progress continues to be 
made among Indian students at schools funded by the BIA. 
Members are pleased to note that the tribes and tribal 
organizations continue to take increased control of the schools 
that serve their children through contract or grant 
arrangements with the Bureau. The Committee recognizes that, if 
given the chance, these entities, working with the parents of 
Indian children, will do a far better job of improving student 
achievement than any federal agency. The Committee is also 
pleased with the continued growthin attendance at institutions 
of higher education of Indian students. It is estimated that current 
postsecondary enrollments are in excess of 130,000. In considering this 
legislation, the Committee has acted to increase local control of 
education, and to shift responsibility and authority for education to 
tribes and tribal organizations.
    Currently, Bureau funded schools are generally required to 
meet rigid education standards established by the Bureau. In an 
attempt to increase local control, this legislation allows 
schools that choose to do so to become accredited by a tribal, 
State or regional accrediting body and meet the standards of 
accreditation rather than those imposed by the Bureau. The 
Committee has modified the section on standards in recognition 
of the fact that Bureau-funded schools have made substantial 
progress in the last twenty years in their educational 
programs. In contrast to 1978, when the Committee first acted 
on this topic and fewer than 2 percent of Bureau-funded schools 
met accreditation standards, today, practically all schools 
exceed such standards.
    The Committee has also included a provision such that if 
the criteria with respect to accreditation are observed, the 
local school board and the administrator may choose the 
standards to be applied. Standards are required to be at least 
those necessary to meet State standards of the State or region 
in which the school is located. This does not mean that these 
standards must be the State or regional standards; rather, 
State or regional standards would be used as a floor.
    In addition, this legislation makes it clear that tribal 
entities may improve and expand educational programs at Bureau 
funded schools using their own resources. The Student Results 
Act gives tribes a greater say in repair and maintenance 
priorities; allows tribes to contract for training services; 
increases tribal authority to pick service providers for 
purchasing supplies; and gives tribes and local school boards 
more flexibility in making school staffing decisions. BIA 
inspectors will also be required to get a second opinion from 
an independent source (with tribal input) before fully and 
finally closing a BIA funded school for health and safety 
violations.
    In keeping with the philosophy of parental choice and local 
control, the Committee has included a provision to give tribes 
and parents of eligible students the choice of which Bureau 
funded school their children attend. In carrying out this 
provision, the Committee expects the Bureau's full cooperation 
in assuring that funding follows the child.
    The Committee remains concerned that, despite Congressional 
direction, the Bureau has never established a Division of 
Budget Analysis within the Office of Indian Education Programs. 
This legislation mandates the creation of this entity within 1 
year of the date of enactment of the Student Results Act. Some 
are concerned that the Bureau's budget requests may not be 
sufficient to provide a quality education for Native American 
students. Therefore, in addition to the creation of the Budget 
Division, the Committee has provided that the Comptroller 
General examine the funding of these schools in relationship to 
other comparable facilities, and examine the criteria used by 
the Bureau in developing its budget for education programs.
    The Committee has taken a number of actions to modify the 
school boundaries provisions. All such actions are intended to 
assure that schools take a proactive stance on identifying and 
providing services to all Indian students in their geographic 
service area.
    Finally, the Committee greatly increased the consultation 
required throughout these Acts. In considering future changes 
to Indian education programs, the Committee expects that the 
Bureau will take into account the full range of views of all 
interested parties, and will engage in a consultative process 
prior to taking action.

                 Title V--Gifted and Talented Children

    Despite the gains made through the Javits Gifted and 
Talented program in serving the educational needs of gifted and 
talented children, a large percentage of the nation's gifted 
and talented students are not benefiting from the results of 
the research, model projects, and exemplary programs. 
Therefore, subpart 2 of the Committee amendment authorizes 
formula grants to State educational agencies to support 
programs and services for gifted and talented students. These 
state formula grants, which are awarded competitively to local 
educational agencies, are designed to assist States in 
improving services to the nation's three million gifted and 
talented students. Such services may incorporate programs and 
strategies that research, model projects, and exemplary 
programs have shown to be effective in meeting these students' 
educational needs.
    The Committee recognizes that ongoing research, model 
projects, and exemplary programs are a necessary foundation for 
quality gifted and talented education programming. To build on 
that foundation, the Committee amendment stipulates that the 
Secretary prioritize funding for applications from State 
educational agencies that are designed to disseminate 
information and apply research results in classrooms, other 
appropriate learning environments, and personnel training 
programs. The Committee also acknowledges the importance of 
using such funds for identifying gifted and talented students 
who may not be identified and served through traditional 
assessment methods; mentoring and apprenticeship programs; 
modifications to curriculum; acceleration; distance learning 
programs; dual enrollment; teacher education; family education 
and support; and other educational activities designed to meet 
the needs of gifted and talented students.

                  Title VI--Rural Education Assistance

    Each year, many rural school districts forgo funding 
because they lack the enrollment, financial resources, and 
poverty data needed to compete against larger school districts 
for federal education grants. Rural school districts find it 
particularly difficult to fully benefit from federal funds 
because the unique needs of rural school districts are not 
addressed in federal formula programs. Generally, current 
federal education formulas unintentionally bypass small, rural 
school districts because the formulas do not produce enough 
revenue to substantially support education reform efforts 
designed to improve academic achievement. These school 
districts lie in remote areas distant from commercial centers, 
making it particularly difficult for teachers and 
administrators to utilize consortia, pooled resources and 
technical assistance. Rural school districts also have unique 
technology and communications infrastructure challenges due to 
theirremote locations. In addition, rural school districts 
cannot adequately compete for grants since they lack resources and do 
not have access to specialists in federal grant writing as do larger 
school districts. The Committee amendment provides rural school 
districts with increased flexibility and funding to enhance academic 
achievement and addresses the unique needs of those districts that 
cannot compete for federal education grants because they do not have 
adequate resources.

          Title VII--McKinney Homeless Education Improvements

    The McKinney Act currently requires that States provide 
estimates of the number of homeless children and youth in their 
States and information about their access to education and 
related services. This provision has resulted in widely varying 
data in both quality and quantity. States do not have the 
resources or the expertise to conduct these kinds of 
assessments, and the lack of a uniform method of data 
collection has resulted in unreliable national data. The 
Committee amendment eliminates the requirement that the State 
homeless coordinator estimate the number of homeless children 
in the State and the number of homeless children served by the 
program. Under the Committee amendment, this responsibility is 
placed under the authority of the Secretary who shall, either 
directly or through grants, contracts, or cooperative 
agreements, periodically collect and disseminate data and 
information on the number and location of homeless children and 
youth; the education and related services such children and 
youth receive; and the extent to which such needs are being 
met. The result of these changes to the McKinney Act will 
enable a more reliable and uniform data collection method that 
will help guide Congress in making accurate funding decisions.
    Many homeless children and youth are forced to wait days 
and even weeks before they can enroll in school because they do 
not have the necessary paperwork required for enrollment such 
as proof of residency, previous academic records, birth 
certificates, and other documentation. According to the FY 1997 
Department of Education Report to Congress (issued in 1999), 
States reported that lack of school records and birth 
certificates were among the most frequent reasons for homeless 
children and youth not attending school. In addition, the 
report noted that lack of documentation is among the reasons 
that 45 percent of homeless children and youth were not 
attending school on a regular basis during their homelessness. 
The Committee amendment directs schools to immediately enroll a 
homeless child even if they are unable to produce the documents 
normally required for enrollment. However, to help ensure a 
healthy environment for all students, the Committee amendment 
does not require schools to accept a homeless child until the 
enrolling school receives their immunization records. In cases 
where a homeless child is denied enrollment because of 
immunization records, the enrolling school shall promptly refer 
his or her parent or guardian to the homeless liaison to assist 
in resolving enrollment disputes. In addition, the Committee 
amendment directs the Secretary to issue a report to be made 
available to States, local educational agencies, and other 
applicable agencies. This report will address successful ways 
in which states can help local educational agencies immediately 
enroll homeless children.
    Nationwide, the lack of transportation is one of the most 
pervasive barriers to enrollment and success in school for 
homeless children and youth. According to the FY 1997 
Department of Education Report to Congress (issued in 1999), 
lack of transportation to or from temporary residences was the 
most frequent reason given by States as to why homeless 
children and youth did not attend school. Forty States listed 
transportation as a major need to be addressed to ensure the 
individual academic success of a homeless child or youth. The 
Committee amendment directs the Secretary to develop and issue 
a report to be made available to States, local educational 
agencies, and other applicable agencies. This report will 
encourage States to follow programs implemented in State law 
that have successfully addressed transportation barriers for 
homeless children and youth.

               Title VIII--Schoolwide Program Adjustment

    The Committee adopted an amendment to set the minimum 
percent of children from low-income families in order for a 
school to be eligible for a schoolwide program at 40 percent. 
See infra discussion on Committee Views, Title I, Part A--
Schoolwide Programs.
  Attachment A--Pennsylvania Department of Education Nonpublic School 
                             Sign-Off Pages



                          Attachment B--Tables



                      Section-by-Section Analysis

    Section 1 sets forth the short title and contains the table 
of contents.
    Section 2 states that all amendments and repeals contained 
in this bill refer to the Elementary and Secondary Education 
Act unless expressly stated otherwise.

                                Title I

Part A--Basic Program

    Section 101 amends the heading for Title I by striking 
``disadvantaged'' and inserting ``low-achieving.''
    Section 102 amends Section 1001 to state the findings; 
statement of purpose and intent, and recognition of need for 
the bill.
    Section 103 states the authorization of appropriations for 
Local Educational Agency (LEA) Grants; Migrant Education; 
Neglected and Delinquent; amends Section 1002(e) regarding 
capital expenses; repeals Section 1002(f); and authorizes 
appropriations for State administration purposes.
    Section 104 repeals Section 1003 regarding reservation and 
allocation.
    Section 105 amends Section 1111 to provide for State plans, 
including provisions for implementing challenging content and 
student performance standards, yearly student assessments and 
accountability standards; requires students who have attended 
school in the U.S. for at least three consecutive years be 
assessed in the English language; and requires annual State and 
LEA report cards.
    Section 106 sets forth provisions for amending Local 
Educational Agency plans, including provisions for parental 
notification and consent for English language instruction.
    Section 107 amends Section 1113 to provide for eligible 
school attendance areas, including provisions to permit school 
districts to give priority to elementary schools.
    Section 108 amends Section 1114 regarding schoolwide 
programs, including provisions to clarify that schoolwide 
programs are not required to maintain separate fiscal 
accounting records when State and local education funds are 
combined with federal education funds.
    Section 109 contains provisions regarding the Targeted 
Assistance Schools program.
    Section 110 amends Section 1115A regarding public school 
choice for Targeted Assistance Schools, including a provision 
to allow Title I funds to be used for transportation services.
    Section 111 contains provisions relating to local review, 
school improvement provisions, technical assistance, and 
corrective action; provisions for providing public school 
choice for student attending low-performing schools, including 
the use of funds for transportation services.
    Section 112 amends Section 1117 to provide for a system of 
statewide assistance of intensive and sustained school support 
and improvement for LEAs and schools served by Title I.
    Section 113 amends Subpart 1 of Title I, Part A to provide 
for the establishment of an academic achievement awards program 
that recognizes and financially rewards schools which have 
substantially closed the achievement gap and made outstanding 
yearly progress for two consecutive years.
    Section 114 amends Section 1118(a) relating to activities 
and procedures for involving parents in Title I programs, 
including provisions for building the capacity of parental 
involvement.
    Section 115 amends Section 1119 to specify the 
qualifications and duties permitted for teachers and 
paraprofessionals that teach and work in Title I schools.
    Section 116 amends Subpart 1, Title I, Part A to add 
Section 1119A to stipulate the purpose and required activities 
regarding professional development activities.
    Section 117 amends Section 1120(a) to provide for the 
participation of private school children in Title I services, 
including a new formula for allocation of funds; consultation 
and documentation requirements; and provisions to permit a 
bypass option for third party providers.
    Section 118 amends Section 1120B regarding coordination of 
activities requirement.
    Section 119 amends Section 1121 to provide for the 
distribution of funds for the outlying areas and the Secretary 
of the Interior.
    Section 120 amends Section 1122 regarding amounts allocated 
for Title I basic grants, concentration grants and targeted 
assistance grants; and special allocation procedures.
    Section 121 amends Section 1124 regarding Title I Basic 
Grants to LEAs.
    Section 122 amends Section 1124A regarding Title 
Concentration Grants to LEAs.
    Section 123 amends Section 1125 regarding Targeted Grants 
to LEAs.
    Section 124 amends Section 1126 to provide for special 
allocation procedures.
    Section 125 amends Title I, Part A to require public 
schools to ensure that Title I services are secular, neutral 
and non-ideological.

Part B--Migrant children

    Section 131 amends Section 1303(a) regarding state 
allocations to better address the needs of this at-risk 
population and improve the level of services rendered in their 
assistance; and strikes Sections 1303 (d) and (e) regarding 
consortium arrangements.
    Section 132 amends Section 1304(b), Program Information, to 
provide greater integration of services and encourage family 
literacy services; and makes technical amendments Section 
1304(c).
    Section 133 amends Section 1306, regarding authorized 
activities to provide greater flexibility for state and local 
educational agencies and to focus on previously unaddressed 
needs of migratory children.
    Section 134 amends Section 1308(a)(2) to provide for the 
coordination of migrant education activities; amends Section 
1308(b) to require the Secretary to assist states in efforts to 
improve student record transfers, determining the number of 
migratory children in each state, and establishing minimum data 
elements for maintained records; and amends Section 1308(d) to 
provide greater incentive for states to arrange consortium 
agreements with other states to improve the delivery of 
services.

Part C--Neglected and delinquent

    Section 141 amends the heading for part D of title I to 
read as follows: ``Prevention and Intervention Programs for 
Neglected or Delinquent Children and Youth''.
    Section 142 amends Section 1401 (a) pertaining to findings.
    Section 143 amends section 1412(b) regarding allocation of 
funds.
    Section 144 amends Section 1414, State Plan and State 
Agency Applications, to promote a greater focus on 
transitioning students from institutions to locally operated 
programs, to help insure that students stay in school.
    Section 145 amends section 1415(a) to make technical 
amendments.
    Section 146 amends Section 1421(3) pertaining to the 
purpose to focus more on transitioning students in dropout 
prevention efforts.
    Section 147 amends Section 1418(a), regarding transition 
services by striking ``10 percent'' and inserting ``15 
percent''.
    Section 148 amends Section 1422(a), by striking 
``retained''; amends 1422(b) to focus more on transitioning 
students; and amends 1422 by adding ``(d) Transitional and 
Academic Services'', by designing programs under this subpart 
to meet the needs of transitional students and to ensure that 
services to prevent students at risk of dropping out to not 
negatively impact the needs of the aforementioned students.
    Section 149 amends Section 1423, regarding local 
educational agency applications to focus more directly on 
students returning from correctional facilities.
    Section 150 amends Section 1424 regarding uses of funds to 
give priority to youth returning from correctional facilities.
    Section 151 amends Section 1425(1) by striking ``where 
feasible, ensure educational programs'' and inserting ``to the 
extent practicable, ensure that educational programs''; amends 
Section 1425(3), by striking ``where feasible,'' and inserting 
``to the extent practicable''; amends Section 1425(8), by 
striking ``where feasible,'' and inserting ``to the extent 
practicable''; amends Section 1425(9), by inserting ``and 
technical'' after ``vocational''; and amends Section 1425(11) 
by adding ``entrepreneurial leadership''.
    Section 152 amends Section 1426(1) by striking ``male 
students and for female students'' and inserting ``students''.
    Section 153 amends Section 1431(a) regarding program 
evaluations is amended by striking ``sex, and if feasible,'' 
and inserting ``gender''.

Part D--General provisions

    Section 161 amends Part F of Title I to provide for the 
general provisions; ``Section 1601 authorizes the Secretary to 
issue federal regulations and contains the provisions for the 
negotiated rulemaking process; Section 1602 contains the 
provisions regarding agreements and records; Section 1603 
contains the provisions regarding state administration, 
including provisions for rulemaking, support and facilitation, 
and the committee of practitioners; Section 1604 contains the 
provisions relating to construction, including provisions for 
prohibition of federal mandates, direction, or control, 
equalized spending, and building standards; Section 1605 
contains the provisions regarding home schools; Section 1606 
contains the provisions regarding non-recipient nonpublic 
schools; Section 1607 contains the provisions regarding local 
administrative cost limitation; Section 1608 contains the 
provisions relating to the prohibition on mandatory national 
certification of teachers and paraprofessionals; Section 1609 
contains the provisions regarding GAO studies; and Section 1610 
states the definitions.; and Section 1611 regarding a Sense of 
Congress supporting paperwork reduction activities.''

Part E--Comprehensive School Reform Program

    Section 171 amends Title I by adding a new Part G 
authorizing the Comprehensive School Reform Program; ``Section 
1701 states the findings and purpose; authorizes the program; 
provides the provisions for state awards, local awards, 
evaluation and reporting requirements; states the definition of 
``scientifically-based research''; and the authorization of 
appropriations.''

                  Title II--Magnet Schools Assistance

    Section 201 amends Title V regarding Magnet Schools 
Assistance and Public School Choice; ``Section 5101 states the 
findings; Section 5102 states the purpose; Section 5103 
authorizes the Secretary to make grants where appropriate; 
Section 5104 defines ``Magnet School''; Section 5105 contains 
the provisions regarding eligibility; Section 5106 provides the 
provisions for applications and requirements; Section 5107 
requires the Secretary to give priority to applicants who 
demonstrate the greatest need, propose to expand or revise 
magnet school projects, and propose to select students for 
Magnet Schools by a lottery system; Section 5108 provides the 
provisions for use of funds; Section 5109 states the 
prohibitions on usage of funds; Section 5110 contains the 
provisions relating limitations; Section 5111 contains the 
provisions regarding evaluations; and Section 5112 provides for 
the authorization of appropriations and reservation of 
funding.''

                    ``Part B--Public School Choice''

    ``Section 5201 cites this Part as ``The Public School 
Choice Act of 1999''; Section 5202 states the findings and 
purpose; Section 5203 contains the provisions for providing 
grants; Section 5204 states the uses of funds; Section 5205 
contains the provisions for grant application and priorities; 
Section 5206 provides for the authorization of appropriations; 
and Section 5207 states the definitions.''
    Section 202 contains the provisions for continuation of 
awards.

                title iii--teacher liability protection

    Section 301 amends the Elementary and Secondary Act of 1965 
to add a new Title XV; ``Section 15001 states the short title 
as the ``Teacher Liability Protection Act of 1999''; Section 
15002 states the findings and purpose; Section 15003 contains 
the provisions regarding preemption and election of state non-
applicability; Section 15004 contains the provisions for 
limitation on liability for teachers; Section 15005 contains 
the provisions for liability of non-economic loss; Section 
15006 provides for the definitions; and Section 15007 provides 
the effective date.''

     title iv--indian, native hawaiian, and alaska native education

    Section 401. Amendments. Amends Part A, Indian Education, 
of Title IX of the Elementary and Secondary Education Act of 
1965, as amended, by repealing previous sections 9123 (Indian 
student fellowships), 9124 (Indian gifted and talented grants), 
9125 (tribal education administration development) and 
repealing subpart 3 (which consists of section 9131, 
improvement of Indian adult education), and by further amending 
Part A to read as follows:

                       ``Part A--Indian Education

    ``Section 9101. Findings. Sets forth the findings for Part 
A.
    ``Section 9102. Purpose. Describes the purposes of Part A.

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

    ``Section 9111. Purpose. States that the purposes of 
Subpart 1 are to support local educational agencies (LEAs) in 
assisting Indian students to meet challenging State standards.
    ``Section 9112. Grants to Local Education Agencies. Permits 
grants to LEAs with a minimum number or proportion of Indian 
students and describes circumstances under which Indian tribes 
may receive such grants.
    ``Section 9113. Amount of Grants. Sets forth provisions 
relating to the amount of grants and of an allocation to the 
Secretary of the Interior for schools funded by the Bureau of 
Indian Affairs (BIA).
    ``Section 9114. Applications. Sets forth requirements for 
applications for grants, including requirements for 
comprehensive LEA programs developed with and approved by a 
committee of parents of Indian children, teachers, and students 
in the local LEA.
    ``Section 9115. Authorized Services and Activities. 
Describes authorized services and activities, allows for funds 
under this subpart to be used for school-wide projects, allows 
use of funds under this subpart to be used in school-wide 
projects and limits administrative costs.
    ``Section 9116. Integration of Services Authorized. Permits 
LEAs receiving grants to integrate all funds from all federal 
programs serving Indian students into a comprehensive program 
for the education of Indian students, according to a plan 
approved by the Secretary of Education or the Secretary of the 
Interior. Sets forth plan requirements, federal 
responsibilities, administrative requirements, and required 
reports from the Secretary of Education.
    ``Section 9117. Student Eligibility Forms. Enumerates the 
information requirements for student eligibility forms, 
requires the Secretary of Education to review a sample of such 
forms, sets child-count guidelines, and establishes criteria 
for tribal schools' child counts.
    ``Section 9118. Payments. Sets forth provisions relating to 
payments to LEAs.
    ``Section 9119. State Educational Agency Review. Requires 
LEAs to submit applications to State educational agencies for 
review and possible comment.

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

    ``Section 9121. Improvement of Educational Opportunities 
for Indian Children. Permits grants for improvement of 
educational opportunities and achievement for Indian children, 
defines the entities eligible for such grants, describes 
authorized activities, sets grant and application requirements, 
and limits administrative costs.
    ``Section 9122. Professional Development for Teachers and 
Education Professionals. Permits grants for educational 
training programs for Indians in educational professions 
serving Indian people, defines eligible entities, describes 
authorized activities, and requires a service obligation for 
recipients receiving training.

               ``Subpart 3--National Research Activities

    ``Section 9141. National Activities. Permits the Secretary 
of Education to carry out national research, evaluation, and 
data-collection activities related to the education of Indian 
children and adults, permits grants to eligible for entities 
for such activities, and requires consultation with the Office 
of Educational Research and Improvement.

                  ``Subpart 4--Federal Administration

    ``Section 9151. National Advisory Council on Indian 
Education. Establishes the National Advisory Council on Indian 
Education to advise the Secretary of Education on department 
programs benefiting Indian people.
    ``Section 9152. Peer Review. Permits the Secretary to use a 
peer review process for applications under subparts 2 or 3.
    ``Section 9153. Preferences for Indian Applicants. Directs 
the Secretary to give preference to Indian tribes, 
organizations, and higher education institutions in awarding 
grants under subparts 2 or 3.
    ``Section 9154. Minimum Grant Criteria. Establishes minimum 
criteria to receive grants under subpart 2.

       ``Subpart 5--Definitions; Authorizations of Appropriations

    ``Section 9161. Definitions. Contains definitions of terms 
used in Part A.
    ``Section 9162. Authorization of Appropriations. Authorizes 
appropriations for fiscal years 2000 through 2004 to carry out 
subparts 1, 2, and 3.

                   Part B--Native Hawaiian Education

    Section 402. Native Hawaiian Education. Repeals Part B, 
Native Hawaiians, of Title IX of the Elementary and Secondary 
Education Act of 1965.

                    Part C--Alaska Native Education

    Section 403. Alaskan Native Education. Amends Part C, 
Alaska Native education, of Title IX of the Elementary and 
Secondary Education Act of 1965. Repeals the Alaska Native 
Educational Planning, Curriculum Development, Teacher Training 
and Recruitment program, Alaska Native Home Based Education for 
Preschool Children program, and Alaska Native Student 
Enrichment program. Creates a new Section 9304.
    ``Section 9304. Program Authorized. Permits the Secretary 
to make grants and contracts with, specified Alaska Native and 
other entities for Alaska Native educational activities, 
including development and implementation of educational plans, 
curriculum development, professional development for educators, 
teacher recruitment, home instruction for preschoolers, family 
literacy services, student enrichment in science and math, 
research activities, and other activities consistent with the 
purposes of Part C. Describes home instruction programs, limits 
administrative costs, and authorizes appropriations for fiscal 
years 2000 through 2004 to carry out Part C.

       Subtitle B--Amendments to the Education Amendments of 1978

    Section 410. Amendments to the Education Amendments of 
1978. Amends Part B of Title XI of the Education Amendments of 
1978 as follows:

              ``Part B--Bureau of Indian Affairs Programs

    ``Section 1120. Findings and Declaration of Policy. Sets 
forth findings and declares Congressional policy.
    ``Section 1121. Accreditation and Standards for the Basic 
Education of Indian Children in Bureau of Indian Affairs 
Schools. Provides for accreditation and standards for basic 
education of Indian children in schools operated by BIA and in 
contract and grant schools. It states the purpose of standards 
for Bureau-operated schools, encourages school boards to adopt 
declarations of educational purpose, and mandates a study to 
revise standards for Bureau-funded schools. Published minimum 
academic standards are to be revised and applied to Bureau-
funded schools not otherwise accredited. Bureau-funded schools 
may elect to meet standards of accreditation as set forth by a 
tribal, State, regional, or national accrediting body (if 
tribal standards meet State standards) instead of those set by 
the Bureau. Alternative standards are allowed if they meet 
State minimum standards. Tribes or school board may waive 
standards and substitute more appropriate standards, but the 
Secretary of the Interior may reject the tribal standards. The 
Secretary must make an annual plan for meeting the standards. 
Federal educational funds may be used school-wide, and the 
Bureau must establish fiscal and accounting standards for 
contract and grant schools. Sets forth the requirements for 
closing or consolidating Bureau-operated schools, and requires 
tribal approval for closure or consolidation of Bureau-funded 
schools. Identifies procedures and criteria for secretarial 
consideration of applications to contract or grant non-Bureau-
funded schools or to expand Bureau-funded schools. None of this 
section's provisions may preclude expansion at a Bureau-funded 
school where expansion and its maintenance is paid for by non-
Bureau funds. Directs the Comptroller General to conduct a 
study of the adequacy of funding for Bureau funded schools, and 
the formulas used by the Bureau to establish such funding 
levels.
    ``Section 1122. National Criteria for Home Living 
Situations. Requires the Secretary to revise and implement 
national criteria for home-living (dormitory) situations at 
Bureau-funded boarding schools and dormitories.
    ``Section 1123. Regulations. Incorporates certain Bureau 
education regulations and sets requirements for changes in 
other Bureau education regulations.
    ``Section 1124. School Boundaries. Directs the Secretary to 
establish geographical attendance areas for Bureau-funded 
schools, enumerates schools' responsibility for educating 
children in their areas, and provides for changes in school 
boundaries and tribal provision of parental school choice.
    ``Section 1125. Facilities Construction. Directs the 
Secretary to bring Bureau-funded school facilities into 
compliance with tribal, State, and federal health and safety 
standards. Requires publication of the Bureau's system for 
prioritizing school replacement and construction projects, 
establishment of a long-term construction and replacement 
listing for all Bureau-funded schools, and distribution of 
school operation and maintenance funds by formula. Sets forth 
procedures for school closure or curtailment because of 
hazardous conditions at Bureau-operated schools.
    ``Section 1126. Bureau of Indian Affairs Education 
Functions. Describes and assigns Bureau education functions and 
responsibilities for policy and procedure, supervision of 
education-related personnel (including school-related finance, 
contracting, and facilities management personnel), program 
evaluation, and provision of support and technical assistance. 
Directs the Assistant Secretary to submit annual plans for 
school construction, operation, and maintenance. Authorizes the 
Director of the Bureau's education program to accept gifts and 
bequests for Bureau-operated schools.
    ``Section 1127. Allotment Formula. Directs the Secretary to 
establish an allotment formula for funding each Bureau-funded 
school, identifies factors to be considered in such formula, 
and allows for formula revision to meet standards, pro rata 
allotment of Bureau education appropriations, formula 
adjustments for certain factors, and reservations for school 
board activities and for emergencies. Provides definitions 
eligible Indian student for this section and permits non-
eligible students to pay tuition to attend BIA funded schools. 
Authorizes funding for students attending Richfield Dormitory, 
Utah.
    ``Section 1128. Administrative Cost Grants. Directs the 
Secretary to provide administrative cost grants to tribes or 
tribal organizations operating contract or grant schools, 
establishes a method for calculating the amount of such grants, 
allows grant recipients to combine grants with other 
administrative accounts, and defines terms used in this 
section. Requires a report on determining factors affecting 
tribal educational administrative costs, and authorizes 
appropriations for the appropriate fiscal year.
    ``Section 1129. Division of Budget Analysis. Directs the 
Secretary to establish a division of budget analysis within the 
Office of Indian Education Programs to prepare projections of 
the amounts necessary to fund Bureau education programs.
    ``Section 1130. Uniform Direct Funding and Support. Directs 
the Secretary to establish a system of uniform direct funding 
and support of Bureau-funded schools, based on the allotment 
formula in section 1127. Sets forth the timing and proportions 
of allotment distribution under the system, requires that 
expenditures for Bureau-operated schools be under local 
financial plans, and authorizes summer academic and support 
programs at Bureau-operated schools. Allows Bureau school 
supervisors to make acquisitions without competitive bidding 
under certain circumstances, sets requirements for funding 
educational technical assistance and training, allows a student 
project to be given to the student, excludes funding under this 
title from being considered federal funds for matching 
purposes, and authorizes cooperative agreements between Bureau 
schools, tribes, and LEAs.
    ``Section 1131. Policy for Indian Control of Indian 
Education. Establishes the policy for the Secretary of Indian 
control of Indian education and requires consultation with 
tribes.
    ``Section 1132. Indian Education Personnel. Directs the 
Secretary to set forth regulations to govern educational 
personnel, including qualifications, hiring, discharge, Indian 
preference, compensation, leave, voluntary services, proration 
of pay, extracurricular activities, and furloughs, and defines 
the terms used in the section.
    ``Section 1133. Computerized Management Information System. 
Directs the Secretary to establish a management information 
system in the Bureau education program office and at Bureau 
funded schools.
    ``Section 1134. Uniform Education Procedures and Practices. 
Directs the Secretary to set forth uniform procedures and 
practices for Bureau education.
    ``Section 1135. Recruitment of Indian Educators. Directs 
the Secretary to set forth a policy of recruitment of Indian 
educators.
    ``Section 1136. Biennial Report; Audits. Directs the 
Secretary to conduct a biennial report to Congress on the 
Bureau's Indian education program and tribally controlled 
community colleges, and directs the Interior Department's 
Inspector General to ensure audits of Bureau-funded schools at 
least every three years.
    ``Section 1137. Rights of Indian Students. Directs the 
Secretary to set forth rules and regulations to ensure the 
constitutional and civil rights of Indian students attending 
Bureau-funded schools.
    ``Section 1138. Regulations. Permits the Secretary to set 
forth regulations for compliance with this title, in 
consultation with interested parties.
    ``Section 1138A. Sets forth procedures for negotiated 
rulemaking.
    ``Section 1139. Early Childhood Development Program. 
Directs the Secretary to make grants to eligible tribal 
entities for early childhood development programs, establishes 
a formula for grant amounts, requires applications, describes 
permissible activities, requires coordination of family 
literacy services, and authorizes appropriations.
    ``Section 1140. Tribal Departments or Divisions of 
Education. Permits the Secretary to provide grants for the 
development and operation of tribal departments of education, 
describes grant purposes, sets priorities for grant awards, and 
authorizes appropriations.
    ``Section 1141. Definitions. Includes definitions of terms 
used in Part A.

          Subtitle C--Tribally Controlled Schools Act of 1988

    Section 420 amends Part B of Title V of P.L. 100-297 as 
follows:
    ``Section 5202. Findings. Sets forth the findings of 
Congress.
    ``Section 5203. Declaration of Policy. Declares Congress' 
policy to maintain the federal government's trust relationship 
with Indian education, and affirms that the educational needs 
of the Indian peoples can best be met through a grant process.
    ``Section 5204. Grants Authorized. Directs the Secretary to 
make grants to Indian tribes and tribal organizations to 
operate tribally controlled schools, including Bureau-funded 
schools, for educational expenditures for educational, 
academic, residential, counseling, and administrative purposes, 
school operation and maintenance, and support services for the 
schools, including transportation. Limits an Indian tribe or 
organization to one grant for any fiscal year, limits certain 
uses of funds, and limits transfers of funds among school 
sites. Tribes are not authorized to require grant recipients 
other than the tribe to move funds between other grantees. 
Provides that applications for grants shall be voluntary, 
allows retrocession of grants, and prohibits termination of 
grants for administrative convenience.
    ``Section 5205. Composition of Grants. Describes the funds 
(and their statutory sources) of which the grants may be 
composed, exempts funds granted from certain Bureau 
requirements, requires separate accounts for facilities repair 
and construction funds and restricts use of such funds to those 
uses.
    ``Section 5206. Eligibility of Grants. Sets forth grant 
eligibility criteria for Bureau-funded schools and for non-
Bureau-funded schools, additional criteria and factors to be 
considered by the Secretary in determining eligibility. 
Specifies where reports are to be filed, requires documentation 
of tribal authorization of an application (while not making the 
tribe a party to a separate organization's grant or responsible 
for the grantee's actions), and provides for appeals of denied 
applications.
    ``Section 5207. Duration of Eligibility Determination. 
Provides that the Secretary's determination that a tribally 
controlled school is eligible for a grant shall remain in 
effect until it is revoked by the Secretary, and may not be 
revoked if specified conditions are being met. Requires 
grantees to submit annual reports and specifies their contents, 
including impartial evaluations.
    ``Section 5208. Payment of Grants; Investment of Funds. 
Sets forth procedures for payments to grantees, provides that 
interest accruing on grants shall be the property of the 
grantee and shall be spent on behalf of the tribally controlled 
school. Limits investment of grant funds, excludes grant funds 
from federal underrecovery or overrecovery determinations, and 
excludes grant funds from State computations for determining 
State aid to schools.
    ``Section 5209. Application With Respect to Indian Self-
Determination and Education Assistance Act. Applies certain 
provisions of the Indian Self-Determination and Education 
Assistance Act of 1975 to grants under Part B, allows self-
determination contractors for relevant programs to switch to 
coverage under this part, prohibits duplication of payments 
under the Indian Self-Determination Act and this part, and 
applies certain provisions of that act and the Equal Access to 
Justice Act to problems or disputes arising under Part B or 
administrative cost grants. Permits transfer and carryover of 
buildings, equipment, and funds to grantees.
    ``Section 5210. Role of the Director. Describes the role of 
the Director of the Office of Indian Education Programs.
    ``Section 5211. Regulations. Incorporates certain Bureau 
education regulations and sets requirements for changes in 
other Bureau education regulations.
    ``Section 5212. The Tribally Controlled Grant School 
Endowment Program. Limits the areas in which the Secretary may 
issue regulations under Part B, and prohibits regulations under 
this part from having the standing of federal statute in 
judicial review.
    ``Section 5213. Definitions. Contains definitions of terms 
used in Part C.

                 Title V--Gifted and Talented Children

    Section 501 amends Part B of Title X of the Elementary and 
Secondary Education Act relating to Gifted and Talented 
Children.

                 ``Part B--Gifted and Talented Children

    ``Section 10201 contains the short title.
    ``Section 10202 contains the findings.
    ``Section 10203 contains the conditions of effectiveness 
for Subparts 1 and 2.

                ``Subpart 1--Discretionary Grant Program

    ``Section 10211 defines the purpose of Subpart 1.
    ``Section 10212 authorizes grants to meet the educational 
needs of gifted and talented children, including provisions for 
the establishment of the program, use of funds, and 
coordination.
    ``Section 10213 defines program priorities, including 
general priority, service priority, and subgrants to local 
educational agencies.
    ``Section 10214 defines general provisions for Subpart 1, 
including requirements for review, dissemination, and 
evaluation; and program operations.

                   ``Subpart 2--Formula Grant Program

    ``Section 10221 defines the purpose of Subpart 2.
    ``Section 10222 authorizes the establishment of the program 
and use of funds for Subpart 2, including general provisions, 
authorized activities, competitive process, and limitations on 
the use of funds.
    ``Section 10223 contains the provisions for allotment to 
States, including reservation of funds, State allotments, 
minimum grant amount, and reallotment.
    ``Section 10224 defines the application for Subpart 2, 
including general provisions, contents, and approval.
    ``Section 10225 defines the conditions for annual reporting 
for Subpart 2.

   ``Subpart 3--National Center for Research and Development in the 
          Education of Gifted and Talented Children and Youth

    ``Section 10231 contains provisions for the Center for 
Research and Development, including general requirements, the 
director's responsibilities, and coordination.

                    ``Subpart 4--General Provisions

    ``Section 10241 stipulates that nothing in this part shall 
be construed to prohibit a recipient of funds from serving 
gifted and talented students simultaneously with students with 
similar educational needs, in the same educational settings 
where appropriate.
    ``Section 10242 allows for the participation of private 
school children and teachers.
    ``Section 10243 contains definitions.
    ``Section 10244 provides for the authorization of 
appropriations, including the amounts for Subparts 1, 2, and 3.

                  title vi--rural education assistance

    Section 601 amends Part J of Title X of the Elementary and 
Secondary Education Act relating to Rural Education.

                  ``Part J--Rural Education Initiative

    ``Section 10951 contains the short title.
    ``Section 10952 contains the findings.

              ``Subpart 1--Small and Rural School Program

    ``Section 10961 authorizes a formula grant program for 
Subpart 1 for small and rural schools, including alternative 
uses, eligibility, applicable funding, disbursal, supplement 
not supplant conditions, and consideration of a special rule.
    ``Section 10962 authorizes the program for Subpart 1, 
including general provisions, eligibility, certification, 
allocation of funds, disbursal, special rule of effectiveness, 
and supplement not supplant conditions.
    ``Section 10963 sets forth the accountability requirements 
for Subpart 1, including academic achievement and State 
educational agency determination regarding continuing 
participation.

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

    ``Section 10971 authorizes the program for Subpart 2, 
including reservations, grants to States, and local awards.
    ``Section 10972 defines the State distribution of funds for 
Subpart 2, including provisions for award basis and 
administrative costs.
    ``Section 10973 sets forth provisions for applications 
under Subpart 2.
    ``Section 10974 defines provisions for reports under 
Subpart 2, including State reports, specially qualified agency 
reports, and a report to Congress.
    ``Section 10975 contains definitions for Subpart 2.

                    ``Subpart 3--General Provisions

    ``Section 10981 contains a definition for this Part.
    ``Section 10982 provides for the authorization of 
appropriations, including the amounts for Subparts 1 and 2.

    title vii--mckinney homeless education improvements act of 1999

    Section 701 contains the short title.
    Section 702 contains the findings.
    Section 703 defines the purpose.
    Section 704 amends Subtitle B of Title VII of the Stewart 
B. McKinney Homeless Education Assistance Act.

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

    ``Section 721 contains the statement of policy for the 
education of homeless children and youth.
    ``Section 722 provides State and local grants, functions of 
the Office of Coordinator, and State plan.
    ``Section 723 provides for local educational agency grants 
for the education of homeless children and youth, including 
provisions for grants for State and local activities for the 
education of homeless children and youth, including provisions 
for general authority, application, allocation and 
reservations, activities, for general authority, application, 
awards, and authorized activities.
    ``Section 724 defines Secretarial responsibilities, 
including provisions for review of plans; technical assistance; 
a report to be made available to States, local educational 
agencies, and other applicable agencies; evaluation and 
dissemination; submission and distribution; determination by 
the Secretary; information; and a report to Congress.
    ``Section 725 contains definitions.
    ``Section 726 provides for the authorization of 
appropriations.

               title viii--schoolwide program adjustment

    Section 801. Schoolwide Funds is amended by adding at the 
end the following:

                title xvi--schoolwide program adjustment

    Section 16001. Schoolwide Program Adjustment. Establishes 
the minimum percent of children from low-income families in 
order for a school to be eligible for a schoolwide program at 
40 percent.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill authorizes Title I of the Elementary and 
Secondary Education Act and other programs assisting low 
achieving students. The bill does not prevent legislative 
branch employees from receiving the benefits of this 
legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. This bill authorizes Title I of the Elementary and 
Secondary Education Act and other programs assisting low 
achieving students as such the bill does not contain any 
unfunded mandates.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.


                             Correspondence

                                  Washington, DC, October 14, 1999.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.

Attn: Jo-Marie St. Martin.

    Dear Chairman Goodling: On October 6th, 1999 during the 
markup of H.R. 2, I was unavoidably detained. Consequently, I 
missed roll call vote #8 on the portability amendment offered 
by Representative Thomas E. Petri. Had I been present, I would 
have voted in favor of the amendment.
    I would appreciate your assistance in including this 
explanation at the appropriate place in the record. Thank you.
            Sincerely,
                                            Mark E. Souder,
                                                Member of Congress.
                                ------                                

          Committee on Education and the Workforce,
                                  House of Representatives,
                                  Washington, DC, October 13, 1999.
Hon. Bill Archer,
Chairman, Committee on Ways and Means, House of Representatives, 
        Longworth House Office Building, Washington, DC.
    Dear Chairman Archer: This letter is to confirm our mutual 
agreement regarding H.R. 2, ``Dollars to the Classroom'', which 
was considered by the Committee on Education and the Workforce 
on October 5, 6, 7, and 13, 1999. As you know, Title III of 
that bill is within the sole jurisdiction of the Committee on 
Ways and Means. The same or similar provisions were contained 
in Sec. 405, ``Additional increase in arbitrage rebate 
exception for governmental bonds used to finance educational 
facilities'' and Sec. 406, ``Modification of arbitrage rebate 
rules applicable to public school construction bonds'' of H.R. 
2488, ``Taxpayer Refund and Relief Act'', which as reported 
from the Ways and Means Committee, passed the House of 
Representatives and the Senate and was vetoed.
    While these provisions are within the sole jurisdiction of 
the Ways and Means Committee, I appeciate your willingness to 
allow the deletion of these provisions during the consideration 
of H.R. 2, by the Committee on Education and the Workforce and 
the House of Representatives. I agree that this procedural 
route should not be construed to prejudice the Committee on 
Ways and Means' jurisdictional interest and prerogatives on 
these provisions or any other simlar legislation and will not 
be considered as precedent for consideration of matters of 
jurisdictional interest to your Committee in the future.
    I thank you for working with me regarding this matter. Your 
letter and this response will be included in the Committee 
report to accompany H.R. 2. If you have questions regarding 
this matter, please do not hesitate to call me.
            Sincerely
                                           Bill Goodling, Chairman.
                                ------                                

          Committee on Education and the Workforce,
                                  House of Representatives,
                                  Washington, DC, October 13, 1999.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary, House of Representatives, Rayburn 
        House Office Building, Washington, DC.
    Dear Chairman Hyde: This letter is to confirm our agreement 
regarding H.R. 2, ``Dollars to the Classroom'', which was 
considered by the Committee on Education and the Workforce on 
October 5, 6, 7, and 13, 1999. I thank you for working with me, 
specifically regarding the amendments the Committee included in 
H.R. 2 on an amendment offered by Rep. McIntosh on teacher 
liability, which is within the jurisdiction of the Committee on 
the Judiciary. These provisions are similar to provisions that 
have been committeed to the Conference Committee to H.R. 1501, 
the Juvenile Justice Reform Act of 1999.
    While these provisions are within the jurisdiction of the 
Judiciary Committee, I appreciate your willingness to work with 
me in moving H.R. 2 forward without the need for a sequential 
referral to the Committee on the Judiciary. I agree that this 
procedural route should not be construed to prejudice the 
jurisdictional interest and prerogatives of the Committee on 
the Judiciary on these provisions or any other similar 
legislation and will not be considered as precedent for 
consideration of matters of jurisdictional interest to your 
Committee in the future. Furthermore, should the provisions of 
this bill, or any Senate amendments thereto, be considered in a 
conference with the Senate, I would have no objection to 
appointment of Members of the Committee on the Judiciary as 
conferees on these provisions.
    I thank you for working with me regarding this matter. Your 
letter and this response will be included in the Committee 
report to accompany H.R. 2. If you have questions regarding 
this matter, please do not hesitate to call me.
            Sincerely,
                                           Bill Goodling, Chairman.
                                ------                                

          Committee on Education and the Workforce,
                                  House of Representatives,
                                  Washington, DC, October 13, 1999.
Hon. James A. Leach,
Chairman, Committee on Banking, House of Representatives, Rayburn House 
        Office Building, Washington, DC.
    Dear Chairman Leach: This letter is to confirm our 
agreement regarding H.R. 2, ``Dollars to the Classroom'', which 
was considered by the Committee on Education and the Workforce 
on October 5, 6, 7, and 13, 1999. I thank you for working with 
me, specifically regarding the amendments the Committee 
included in H.R. 2 to the Stewart B. McKinney Homeless 
Assistance Act, specifically Subtitle B of Title VII, which are 
within the jurisdiction of the Committee on Banking and in 
addition the Committee on Education and the Workforce.
    While these provisions are within the jurisdiction of the 
Banking Committee, I appreciate your willingness to work with 
me in moving H.R. 2 forward without the need for a sequential 
referral to the Committee on Banking. I agree that this 
procedural route should not be construed to prejudice the 
jurisdictional interest and prerogatives of the Committee on 
Banking on these provisions or any other similar legislation 
and will not be considered as precedent for consideration of 
matters of jurisdictional interest to your Committee in the 
future. Furthermore, should the provisions of this bill, or any 
Senate amendments thereto, be considered in a conference with 
the Senate, I would have no objection to appointment of Members 
of the Committee on Banking as conferees on these provisions.
    I thank you for working with me regarding this matter. Your 
letter and this response will be included in the Committee 
report to accompany H.R. 2. If you have questions regarding 
this matter, please do not hesitate to call me.
            Sincerely,
                                           Bill Goodling, Chairman.
                                ------                                

                          House of Representatives,
               Committee on Banking and Financial Services,
                                   Washington, DC, October 5, 1999.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce, Rayburn House 
        Office Building, Washington, DC.
    Dear Bill: I am writing in regard to H.R. 2, Dollars to the 
Classroom Act, which the Committee on Education and the 
Workforce intends to consider on October 5, 1999. It is my 
understanding that you intend to include in H.R. 2 an amendment 
to Title VII of the Stewart B. McKinney Homeless Assistance 
Act. Pursuant to clause 1 of Rule X of the Rules of the House 
of Representatives, Title VII of the Stewart B. McKinney Act is 
within the jurisdiction of both the Committees on Banking and 
Financial Services and Education and the Workforce. I 
appreciate you making me aware of this provision and working 
together in the development of the amendment.
    Substantively, I do not object to the inclusion of the 
amendment in H.R. 2 during its consideration by the Committee 
on Education and the Workforce. Further, procedurally, in the 
interest of accommodating your desire to move H.R. 2, as 
amended, to the Floor in an expeditious manner, the Committee 
on Banking and Financial Services will not request a sequential 
referral of the legislation. Please be advised that my 
agreement not to seek a sequential referral is based on an 
understanding that this waiver will be without prejudice to the 
Banking Committee's jurisdictional claims over H.R. 2 and 
similar bills and that the Banking Committee's jurisdiction 
will be protected through the appointment of conferees should 
H.R. 2 or a similar bill go to conference.
    I appreciate your kind cooperation in these matters and 
would further appreciate the inclusion of this letter in the 
Education Committee's report on H.R. 2.
            Sincerely,
                                          James A. Leach, Chairman.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has yet to receive a cost estimate for 
H.R. 2 from the Director of the Congressional Budget Office, 
even though the Committee ordered the bill reported on 
Wednesday, October 13, 1999.

 Statement of Oversight Findings of the Committee on Government Reform

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform on the 
subject of H.R. 2.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 1, which grants Congress the power 
to lay and collect taxes, duties, imports and excises, to pay 
the debts and provide for the common defense and general 
welfare of the United States.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

            ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

           *       *       *       *       *       *       *



   TITLE I--HELPING [DISADVANTAGED] LOW-ACHIEVING CHILDREN MEET HIGH 
                               STANDARDS

[SEC. 1001. DECLARATION OF POLICY AND STATEMENT OF PURPOSE.

  [(a) Statement of Policy.--
          [(1) In general.--The Congress declares it to be the 
        policy of the United States that a high-quality 
        education for all individuals and a fair and equal 
        opportunity to obtain that education are a societal 
        good, are a moral imperative, and improve the life of 
        every individual, because the quality of our individual 
        lives ultimately depends on the quality of the lives of 
        others.
          [(2) Additional policy.--The Congress further 
        declares it to be the policy of the United States to 
        expand the program authorized by this title over the 
        fiscal years 1996 through 1999 by increasing funding 
        for this title by at least $750,000,000 over baseline 
        each fiscal year and thereby increasing the percentage 
        of eligible children served in each fiscal year with 
        the intent of serving all eligible children by fiscal 
        year 2004.
  [(b) Recognition of Need.--The Congress recognizes that--
          [(1) although the achievement gap between 
        disadvantaged children and other children has been 
        reduced by half over the past two decades, a sizable 
        gap remains, and many segments of our society lack the 
        opportunity to become well educated;
          [(2) the most urgent need for educational improvement 
        is in schools with high concentrations of children from 
        low-income families and achieving the National 
        Education Goals will not be possible without 
        substantial improvement in such schools;
          [(3) 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 and their 
        parents who are in need of family literacy services;
          [(4) while title I and other programs funded under 
        this Act contribute to narrowing the achievement gap 
        between children in high-poverty and low-poverty 
        schools, such programs need to become even more 
        effective in improving schools in order to enable all 
        children to achieve high standards; and
          [(5) in order for all students to master challenging 
        standards in core academic subjects as described in the 
        third National Education Goal described in section 
        102(3) of the Goals 2000: Educate America Act, students 
        and schools will need to maximize the time spent on 
        teaching and learning the core academic subjects.
  [(c) What Has Been Learned Since 1988.--To enable schools to 
provide all children a high-quality education, this title 
builds upon the following learned information:
          [(1) All children can master challenging content and 
        complex problem-solving skills. Research clearly shows 
        that children, including low-achieving children, can 
        succeed when expectations are high and all children are 
        given the opportunity to learn challenging material.
          [(2) Conditions outside the classroom such as hunger, 
        unsafe living conditions, homelessness, unemployment, 
        violence, inadequate health care, child abuse, and drug 
        and alcohol abuse can adversely affect children's 
        academic achievement and must be addressed through the 
        coordination of services, such as health and social 
        services, in order for the Nation to meet the National 
        Education Goals.
          [(3) Use of low-level tests that are not aligned with 
        schools' curricula fails to provide adequate 
        information about what children know and can do and 
        encourages curricula and instruction that focus on the 
        low-level skills measured by such tests.
          [(4) Resources are more effective when resources are 
        used to ensure that children have full access to 
        effective high-quality regular school programs and 
        receive supplemental help through extended-time 
        activities.
          [(5) Intensive and sustained professional development 
        for teachers and other school staff, focused on 
        teaching and learning and on helping children attain 
        high standards, is too often not provided.
          [(6) Insufficient attention and resources are 
        directed toward the effective use of technology in 
        schools and the role technology can play in 
        professional development and improved teaching and 
        learning.
          [(7) All parents can contribute to their children's 
        success by helping at home and becoming partners with 
        teachers so that children can achieve high standards.
          [(8) Decentralized decisionmaking is a key ingredient 
        of systemic reform. Schools need the resources, 
        flexibility, and authority to design and implement 
        effective strategies for bringing their children to 
        high levels of performance.
          [(9) Opportunities for students to achieve high 
        standards can be enhanced through a variety of 
        approaches such as public school choice and public 
        charter schools.
          [(10) Attention to academics alone cannot ensure that 
        all children will reach high standards. The health and 
        other needs of children that affect learning are 
        frequently unmet, particularly in high-poverty schools, 
        thereby necessitating coordination of services to 
        better meet children's needs.
          [(11) Resources provided under this title can be 
        better targeted on the highest-poverty local 
        educational agencies and schools that have children 
        most in need.
          [(12) Equitable and sufficient resources, 
        particularly as such resources relate to the quality of 
        the teaching force, have an integral relationship to 
        high student achievement.
  [(d) Statement of Purpose.--The purpose of this title is to 
enable schools to provide opportunities for children served to 
acquire the knowledge and skills contained in the challenging 
State content standards and to meet the challenging State 
performance standards developed for all children. This purpose 
shall be accomplished by--
          [(1) ensuring high standards for all children and 
        aligning the efforts of States, local educational 
        agencies, and schools to help children served under 
        this title to reach such standards;
          [(2) providing children an enriched and accelerated 
        educational program, including, when appropriate, the 
        use of the arts, through schoolwide programs or through 
        additional services that increase the amount and 
        quality of instructional time so that children served 
        under this title receive at least the classroom 
        instruction that other children receive;
          [(3) promoting schoolwide reform and ensuring access 
        of children (from the earliest grades) to effective 
        instructional strategies and challenging academic 
        content that includes intensive complex thinking and 
        problem-solving experiences;
          [(4) significantly upgrading the quality of 
        instruction by providing staff in participating schools 
        with substantial opportunities for professional 
        development;
          [(5) coordinating services under all parts of this 
        title with each other, with other educational services, 
        and, to the extent feasible, with health and social 
        service programs funded from other sources;
          [(6) affording parents meaningful opportunities to 
        participate in the education of their children at home 
        and at school;
          [(7) distributing resources, in amounts sufficient to 
        make a difference, to areas and schools where needs are 
        greatest;
          [(8) improving accountability, as well as teaching 
        and learning, by using State assessment systems 
        designed to measure how well children served under this 
        title are achieving challenging State student 
        performance standards expected of all children; and
          [(9) providing greater decisionmaking authority and 
        flexibility to schools and teachers in exchange for 
        greater responsibility for student performance.]

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

  (a) Findings.--Congress finds the following:
          (1) 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 standards.
          (2) High-poverty schools are much more likely to be 
        identified as failing to meet State 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.
          (3) 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.
          (4) Congress and the public would benefit from 
        additional data in order to evaluate the efficacy of 
        the changes made to this title in the Improving 
        America's Schools Act of 1994.
          (5) States, local educational agencies, and schools 
        should be given as much flexibility as possible in 
        exchange for greater accountability for improving 
        student achievement.
          (6) Programs funded under this part must demonstrate 
        increased effectiveness in improving schools in order 
        to ensure all children achieve to high standards.
  (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 and their 
        parents who are in need of family-literacy services.
          (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 must 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 
        should be held accountable for improving the academic 
        achievement of all students, and for identifying and 
        turning around low-performing schools.
          (5) Federal education assistance is intended not only 
        to increase pupil achievement overall, but also more 
        specifically and importantly, to help ensure that all 
        pupils, especially the disadvantaged, meet challenging 
        standards for curriculum content and pupil performance. 
        It can only be determined if schools, local educational 
        agencies, and States, are reaching this goal if pupil 
        achievement results are reported specifically by 
        disadvantaged and minority status.

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 [$7,400,000,000 for fiscal year 
1995] $8,350,000,000 for fiscal year 2000 and such sums as may 
be necessary for each of the four succeeding fiscal years.

           *       *       *       *       *       *       *

   (c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
[$310,000,000 for fiscal year 1995] $400,000,000 for fiscal 
year 2000 and such sums as may be necessary for each of the 
four 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 [$40,000,000 for fiscal year 1995] $50,000,000 for 
fiscal year 2000 and such sums as may be necessary for each of 
the four succeeding fiscal years.
  [(e) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$41,434,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
  [(f) Additional Assistance for School Improvement.--For the 
purpose of providing additional needed assistance to carry out 
sections 1116 and 1117, there are authorized to be appropriated 
such sums as may be necessary for fiscal year 1996 and each of 
the three succeeding fiscal years.]
  (e) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$15,000,000 for fiscal year 2000, $15,000,000 for fiscal year 
2001, and $5,000,000 for fiscal year 2002.
  (f) School Improvement.--Each State may reserve for the 
purpose of carrying out its duties under section 1116 and 1117, 
the greater of one half of 1 percent of the amount allocated 
under this part, or $200,000.

           *       *       *       *       *       *       *

  (h) State Administration.--
          (1) State reservation.--Each State may reserve, from 
        the grants 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 parts A, C, and D, for 
        fiscal year 1999, or $400,000 ($50,000 for each 
        outlying area), 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 2000 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 
        grants received by each State for that fiscal year 
        under parts A, C, and D of this title.
          (3) Special rule.--The amount allocated to each State 
        under this subsection may not exceed the amount of 
        State funds expended by the State educational agency to 
        administer elementary and secondary education programs 
        in such State.

[SEC. 1003. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

  [(a) Payment for School Improvement.--
          [(1) In general.--Except as provided in paragraph 
        (3), each State may reserve for the proper and 
        efficient performance of its duties under subsections 
        (c)(5) and (d) of section 1116, and section 1117, one-
        half of 1 percent of the funds allocated to the State 
        under subsections (a), (c), and (d), of section 1002 
        for fiscal year 1995 and each succeeding fiscal year.
          [(2) Minimum.--The total amount that may be reserved 
        by each State, other than the outlying areas, under 
        this subsection for any fiscal year, when added to 
        amounts appropriated for such fiscal year under section 
        1002(f) that are allocated to the State under 
        subsection (b), if any, may not be less than $200,000. 
        The total amount that may be reserved by each outlying 
        area under this subsection for any fiscal year, when 
        added to amounts appropriated for such fiscal year 
        under section 1002(f) that are allocated under 
        subsection (b) to the outlying area, if any, may not be 
        less than $25,000.
          [(3) Special rule.--If the amount reserved under 
        paragraph (1) when added to the amount made available 
        under section 1002(f) for a State is less than $200,000 
        for any fiscal year, then such State may reserve such 
        additional funds under subsections (a), (c), and (d) of 
        section 1002 as are necessary to make $200,000 
        available to such State.
  [(b) Additional State Allocations for School Improvement.--
From the amount appropriated under section 1002(f) for any 
fiscal year, each State shall be eligible to receive an amount 
that bears the same ratio to the amount appropriated as the 
amount allocated to the State under this part (other than 
section 1120(e)) bears to the total amount allocated to all 
States under this part (other than section 1120(e)).]

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

                 Subpart 1--Basic Program Requirements

[SEC. 1111. STATE PLANS.

  [(a) Plans Required.--
          [(1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary a 
        plan, developed in consultation with local educational 
        agencies, teachers, pupil services personnel, 
        administrators, other staff, and parents, that 
        satisfies the requirements of this section and that is 
        coordinated with other programs under this Act, the 
        Goals 2000: Educate America Act, and other Acts, as 
        appropriate, consistent with section 14306.
          [(2) Consolidation plan.--A State plan submitted 
        under paragraph (1) may be submitted as part of a 
        consolidation plan under section 14302.
  [(b) Standards and Assessments.--
          [(1) Challenging standards.--(A) Each State plan 
        shall demonstrate that the State has developed or 
        adopted challenging content standards and challenging 
        student performance standards that will be used by the 
        State, its local educational agencies, and its schools 
        to carry out this part, except that a State shall not 
        be required to submit such standards to the Secretary.
          [(B) If a State has State content standards or State 
        student performance standards developed under title III 
        of the Goals 2000: Educate America Act and an aligned 
        set of assessments for all students developed under 
        such title, or, if not developed under such title, 
        adopted under another process, the State shall use such 
        standards and assessments, modified, if necessary, to 
        conform with the requirements of subparagraphs (A) and 
        (D) of this paragraph, and paragraphs (2) and (3).
          [(C) If a State has not adopted State content 
        standards and State student performance standards for 
        all students, the State plan shall include a strategy 
        and schedule for developing State content standards and 
        State student performance standards for elementary and 
        secondary school children served under this part in 
        subjects as determined by the State, but including at 
        least mathematics and reading or language arts by the 
        end of the one-year period described in paragraph (6), 
        which standards shall include the same knowledge, 
        skills, and levels of performance expected of all 
        children.
          [(D) Standards under this paragraph shall include--
                  [(i) challenging content standards in 
                academic subjects that--
                          [(I) specify what children are 
                        expected to know and be able to do;
                          [(II) contain coherent and rigorous 
                        content; and
                          [(III) encourage the teaching of 
                        advanced skills;
                  [(ii) challenging student performance 
                standards that--
                          [(I) are aligned with the State's 
                        content standards;
                          [(II) describe two levels of high 
                        performance, proficient and advanced, 
                        that determine how well children are 
                        mastering the material in the State 
                        content standards; and
                          [(III) describe a third level of 
                        performance, partially proficient, to 
                        provide complete information about the 
                        progress of the lower performing 
                        children toward achieving to the 
                        proficient and advanced levels of 
                        performance.
          [(E) For the subjects in which students 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 standards, the 
        State plan shall describe a strategy for ensuring that 
        such students are taught the same knowledge and skills 
        and held to the same expectations as are all children.
          [(2) Yearly progress.--
                  [(A) Each State plan shall demonstrate, based 
                on assessments described under paragraph (3), 
                what constitutes adequate yearly progress of--
                          [(i) any school served under this 
                        part toward enabling children to meet 
                        the State's student performance 
                        standards; and
                          [(ii) any local educational agency 
                        that received funds under this part 
                        toward enabling children in schools 
                        receiving assistance under this part to 
                        meet the State's student performance 
                        standards.
                  [(B) Adequate yearly progress shall be 
                defined in a manner--
                          [(i) that is consistent with 
                        guidelines established by the Secretary 
                        that result in continuous and 
                        substantial yearly improvement of each 
                        local educational agency and school 
                        sufficient to achieve the goal of all 
                        children served under this part meeting 
                        the State's proficient and advanced 
                        levels of performance, particularly 
                        economically disadvantaged and limited 
                        English proficient children; and
                          [(ii) that links progress primarily 
                        to performance on the assessments 
                        carried out under this section while 
                        permitting progress to be established 
                        in part through the use of other 
                        measures.
          [(3) Assessments.--Each State plan shall demonstrate 
        that the State has developed or adopted a set of high-
        quality, yearly student assessments, including 
        assessments in at least mathematics and reading or 
        language arts, that will be used as the primary means 
        of determining the yearly performance of each local 
        educational agency and school served under this part in 
        enabling all children served under this part to meet 
        the State's student performance standards. Such 
        assessments shall--
                  [(A) be the same assessments used to measure 
                the performance of all children, if the State 
                measures the performance of all children;
                  [(B) be aligned with the State's challenging 
                content and student performance standards and 
                provide coherent information about student 
                attainment of such standards;
                  [(C) be used for purposes for which such 
                assessments are valid and reliable, and be 
                consistent with relevant, nationally recognized 
                professional and technical standards for such 
                assessments;
                  [(D) measure the proficiency of students in 
                the academic subjects in which a State has 
                adopted challenging content and student 
                performance standards and be administered at 
                some time during--
                          [(i) grades 3 through 5;
                          [(ii) grades 6 through 9; and
                          [(iii) grades 10 through 12;
                  [(E) involve multiple up-to-date measures of 
                student performance, including measures that 
                assess higher order thinking skills and 
                understanding;
                  [(F) provide for--
                          [(i) the participation in such 
                        assessments of all students;
                          [(ii) the reasonable adaptations and 
                        accommodations for students with 
                        diverse learning needs, necessary to 
                        measure the achievement of such 
                        students relative to State content 
                        standards; and
                          [(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, 
                        to determine such students' mastery of 
                        skills in subjects other than English;
                  [(G) include students who have attended 
                schools in a local educational agency for a 
                full academic year but have not attended a 
                single school for a full academic year, however 
                the performance of students who have attended 
                more than one school in the local educational 
                agency in any academic year shall be used only 
                in determining the progress of the local 
                educational agency;
                  [(H) provide individual student interpretive 
                and descriptive reports, which shall include 
                scores, or other information on the attainment 
                of student performance standards; and
                  [(I) enable results to be disaggregated 
                within each State, local educational agency, 
                and school by gender, by each major racial and 
                ethnic group, by English proficiency status, 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.
          [(4) Special rule.--Assessment measures that do not 
        meet the requirements of paragraph (3)(C) may be 
        included as one of the multiple measures, if a State 
        includes in the State plan information regarding the 
        State's efforts to validate such measures.
          [(5) Language assessments.--Each State plan shall 
        identify the languages other than English that are 
        present in the participating student population and 
        indicate the languages for which yearly student 
        assessments are not available and are needed. The State 
        shall make every effort to develop such assessments and 
        may request assistance from the Secretary if 
        linguistically accessible assessment measures are 
        needed. Upon request, the Secretary shall assist with 
        the identification of appropriate assessment measures 
        in the needed languages through the Office of Bilingual 
        Education and Minority Languages Affairs.
          [(6) Standard and assessment development.--(A) A 
        State that does not have challenging State content 
        standards and challenging State student performance 
        standards, in at least mathematics and reading or 
        language arts, shall develop such standards within one 
        year of receiving funds under this part after the first 
        fiscal year for which such State receives such funds 
        after the date of enactment of the Improving America's 
        Schools Act of 1994.
          [(B) A State that does not have assessments that meet 
        the requirements of paragraph (3) in at least 
        mathematics and reading or language arts shall develop 
        and test such assessments within four years (one year 
        of which shall be used for field testing such 
        assessment), of receiving funds under this part after 
        the first fiscal year for which such State receives 
        such funds after the date of enactment of the Improving 
        America's Schools Act of 1994 and shall develop 
        benchmarks of progress toward the development of such 
        assessments that meet the requirements of paragraph 
        (3), including periodic updates.
          [(C) The Secretary may extend for one additional year 
        the time for testing new assessments under subparagraph 
        (B) upon the request of the State and the submission of 
        a strategy to correct problems identified in the field 
        testing of such new assessments.
          [(D) If, after the one-year period described in 
        subparagraph (A), a State does not have challenging 
        State content and challenging student performance 
        standards in at least mathematics and reading or 
        language arts, a State shall adopt a set of standards 
        in these subjects such as the standards and assessments 
        contained in other State plans the Secretary has 
        approved.
          [(E) If, after the four-year period described in 
        subparagraph (B), a State does not have assessments, in 
        at least mathematics and reading or language arts, that 
        meet the requirement of paragraph (3), and is denied an 
        extension under subparagraph (C), a State shall adopt 
        an assessment that meets the requirement of paragraph 
        (3) such as one contained in other State plans the 
        Secretary has approved.
          [(7) Transitional assessments.--(A) If a State does 
        not have assessments that meet the requirements of 
        paragraph (3) and proposes to develop such assessments 
        under paragraph (6)(B), the State may propose to use a 
        transitional set of yearly statewide assessments that 
        will assess the performance of complex skills and 
        challenging subject matter.
          [(B) For any year in which a State uses transitional 
        assessments, the State shall devise a procedure for 
        identifying local educational agencies under paragraphs 
        (3) and (7) of section 1116(d), and schools under 
        paragraphs (1) and (7) of section 1116(c), that rely on 
        accurate information about the academic progress of 
        each such local educational agency and school.
          [(8) Requirement.--Each State plan shall describe--
                  [(A) how the State educational agency will 
                help each local educational agency and school 
                affected by the State plan develop the capacity 
                to comply with each of the requirements of 
                sections 1112(c)(1)(D), 1114(b), and 1115(c) 
                that is applicable to such agency or school; 
                and
                  [(B) such other factors the State deems 
                appropriate to provide students an opportunity 
                to achieve the knowledge and skills described 
                in the challenging content standards adopted by 
                the State.
  [(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
          [(1)(A) the State educational agency will implement a 
        system of school support teams under section 1117(c), 
        including provision of necessary professional 
        development for those teams;
          [(B) the State educational agency will work with 
        other agencies, including educational service agencies 
        or other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under 
        section 1119 and technical assistance under section 
        1117; and
          [(C)(i) where educational service agencies exist, the 
        State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
          [(ii) where educational service agencies do not 
        exist, the State educational agency will consider 
        providing professional development and technical 
        assistance through other cooperative agreements such as 
        through a consortium of local educational agencies;
          [(2) the State educational agency will notify local 
        educational agencies and the public of the standards 
        and assessments developed under this section, and of 
        the authority to operate schoolwide programs, and will 
        fulfill the State educational agency's responsibilities 
        regarding local educational agency improvement and 
        school improvement under section 1116, including such 
        corrective actions as are necessary;
          [(3) the State educational agency will provide the 
        least restrictive and burdensome regulations for local 
        educational agencies and individual schools 
        participating in a program assisted under this part;
          [(4) the State educational agency will encourage the 
        use of funds from other Federal, State, and local 
        sources for schoolwide reform in schoolwide programs 
        under section 1114;
          [(5) the Committee of Practitioners established under 
        section 1603(b) will be substantially involved in the 
        development of the plan and will continue to be 
        involved in monitoring the plan's implementation by the 
        State; and
          [(6) the State will coordinate activities funded 
        under this part with school-to-work, vocational 
        education, cooperative education and mentoring 
        programs, and apprenticeship programs involving 
        business, labor, and industry, as appropriate.
  [(d) Peer Review and Secretarial Approval.--
          [(1) In general.--The Secretary shall--
                  [(A) establish a peer review process to 
                assist in the review and recommendations for 
                revision of State plans;
                  [(B) appoint individuals to the peer review 
                process who are representative of State 
                educational agencies, local educational 
                agencies, teachers, and parents;
                  [(C) following an initial peer review, 
                approve a State plan the Secretary determines 
                meets the requirements of subsections (a), (b), 
                and (c);
                  [(D) if the Secretary determines that the 
                State plan does not meet the requirements of 
                subsection (a), (b), or (c), immediately notify 
                the State of such determination and the reasons 
                for such determination;
                  [(E) not decline to approve a State's plan 
                before--
                          [(i) offering the State an 
                        opportunity to revise its plan;
                          [(ii) providing technical assistance 
                        in order to assist the State to meet 
                        the requirements under subsections (a), 
                        (b), and (c); and
                          [(iii) providing a hearing; and
                  [(F) have the authority to disapprove a State 
                plan for not meeting the requirements of this 
                part, but shall not have the authority to 
                require a State, as a condition of approval of 
                the State plan, to include in, or delete from, 
                such plan one or more specific elements of the 
                State's content standards or to use specific 
                assessment instruments or items.
          [(2) Withholding.--The Secretary may withhold funds 
        for State administration and activities under section 
        1117 until the Secretary determines that the State plan 
        meets the requirements of this section.
  [(e) Duration of the Plan.--
          [(1) In general.--Each State plan shall--
                  [(A) remain in effect for the duration of the 
                State's participation under this part; and
                  [(B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
          [(2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption 
        of new State content standards and State student 
        performance standards, new assessments, or a new 
        definition of adequate progress, the State shall submit 
        such information to the Secretary.
  [(f) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal 
Government to mandate, direct, or control a State, local 
educational agency, or school's specific instructional content 
or student performance standards and assessments, curriculum, 
or program of instruction, as a condition of eligibility to 
receive funds under this part.
  [(g) Special Rule.--If the aggregate State expenditure by a 
State educational agency for the operation of elementary and 
secondary education programs in the State is less than such 
agency's aggregate Federal expenditure for the State operation 
of all Federal elementary and secondary education programs, 
then the State plan shall include assurances and specific 
provisions that such State will provide State expenditures for 
the operation of elementary and secondary education programs 
equal to or exceeding the level of Federal expenditures for 
such operation by October 1, 1998.]

SEC. 1111. STATE PLANS.

  (a) Plans Required.--
          (1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary a 
        plan, developed in consultation with local educational 
        agencies, teachers, pupil services personnel, 
        administrators (including administrators of programs 
        described in other parts of this title), other staff, 
        and parents, that satisfies the requirements of this 
        section and that is coordinated with other programs 
        under this Act, the Individuals with Disabilities 
        Education Act, the Carl D. Perkins Vocational and 
        Technical Education Act of 1998, and the Head Start 
        Act.
          (2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a 
        consolidated plan under section 14302.
  (b) Standards, Assessments, and Accountability.--
          (1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has adopted challenging 
        content standards and challenging student performance 
        standards that will be used by the State, its local 
        educational agencies, and its schools to carry out this 
        part, except that a State shall not be required to 
        submit such standards to the Secretary.
          (B) The standards required by subparagraph (A) shall 
        be the same standards that the State applies to all 
        schools and children in the State.
          (C) The State shall have such standards for 
        elementary and secondary school children served under 
        this part in subjects determined by the State, but 
        including at least mathematics and reading or language 
        arts, which shall include the same knowledge, skills, 
        and levels of performance expected of all children.
          (D) Standards under this paragraph shall include--
                  (i) challenging content standards in academic 
                subjects that--
                          (I) specify what children are 
                        expected to know and be able to do;
                          (II) contain coherent and rigorous 
                        content; and
                          (III) encourage the teaching of 
                        advanced skills;
                  (ii) challenging student performance 
                standards that--
                          (I) are aligned with the State's 
                        content standards;
                          (II) describe two levels of high 
                        performance, proficient and advanced, 
                        that determine how well children are 
                        mastering the material in the State 
                        content standards; and
                          (III) describe a third level of 
                        performance, 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 standards, the State plan 
        shall describe a strategy for ensuring that such 
        students are taught the same knowledge and skills and 
        held to the same expectations as are all children.
          (2) Adequate yearly progress.--
                  (A) In general.--Each State plan shall 
                demonstrate, based on assessments described 
                under paragraph (4), what constitutes adequate 
                yearly progress of--
                          (i) any school served under this part 
                        toward enabling all children to meet 
                        the State's challenging student 
                        performance standards;
                          (ii) any local educational agency 
                        that received funds under this part 
                        toward enabling all children in schools 
                        receiving assistance under this part to 
                        meet the State's challenging student 
                        performance standards; and
                          (iii) the State in enabling all 
                        children in schools receiving 
                        assistance under this part to meet the 
                        State's challenging student performance 
                        standards.
                  (B) Definition.--Adequate yearly progress 
                shall be defined in a manner that--
                          (i) applies the same high standards 
                        of academic performance to all students 
                        in the State;
                          (ii) takes into account the progress 
                        of all students in the State and in 
                        each local educational agency and 
                        school served under section 1114 or 
                        1115;
                          (iii) uses the State challenging 
                        content and challenging student 
                        performance standards and assessments 
                        described in paragraphs (1) and (4);
                          (iv) compares separately, within each 
                        State, local educational agency, and 
                        school, the performance and progress of 
                        students by gender, each major ethnic 
                        and racial group, by English 
                        proficiency status, by migrant status, 
                        by students with disabilities as 
                        compared to nondisabled students, and 
                        by economically disadvantaged students 
                        as compared to students who are not 
                        economically disadvantaged (except that 
                        such disaggregation shall not be 
                        required in a case in which the number 
                        of students in a category is 
                        insufficient to yield statistically 
                        reliable information or the results 
                        would reveal individually identifiable 
                        information about an individual 
                        student);
                          (v) compares the proportions of 
                        students at the ``basic'', 
                        ``proficient'', and ``advanced'' levels 
                        of performance with the proportions of 
                        students at each of the 3 levels in the 
                        same grade in the previous school year;
                          (vi) at the State's discretion, may 
                        also include other academic measures 
                        such as promotion, completion of 
                        college preparatory courses, and high 
                        school completion, 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;
                          (vii) includes annual numerical goals 
                        for improving the performance of all 
                        groups specified in clause (iv) and 
                        narrowing gaps in performance between 
                        these groups; and
                          (viii) includes a timeline for 
                        ensuring that each group of students 
                        described in clause (iv) meets or 
                        exceeds the State's proficient level of 
                        performance on each State assessment 
                        used for the purposes of section 1111 
                        and section 1116 within 10 years from 
                        the date of enactment of the Student 
                        Results Act of 1999.
                  (C) Annual improvement for states.--For a 
                State to make adequate yearly progress under 
                subparagraph (A)(iii), not less than 90 percent 
                of the local educational agencies within its 
                jurisdiction shall meet the State's criteria 
                for adequate yearly progress.
                  (D) Annual improvement for local educational 
                agencies.--For a local educational agency to 
                make adequate yearly progress under 
                subparagraph (A)(ii), not less than 90 percent 
                of the schools within its jurisdiction must 
                meet the State's criteria for adequate yearly 
                progress.
                  (E) Annual improvement for schools.--For a 
                school to make adequate yearly progress under 
                subparagraph (A)(i), not less than 90 percent 
                of each group of students described in 
                subparagraph (A)(iv) who are enrolled in such 
                school are required to take the assessments 
                consistent with section 612(a)(17)(A) of the 
                Individuals with Disabilities Education Act and 
                paragraph (4)(F)(iv) on which adequate yearly 
                progress is based.
                  (F) Public notice and comment.--Each State 
                shall ensure that in developing its plan for 
                adequate yearly progress, 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.
                  (G) Review.--The Secretary shall review the 
                information from States on the adequate yearly 
                progress of schools and local educational 
                agencies required under subparagraphs (A) and 
                (B) for the purpose of determining State and 
                local compliance with section 1116.
          (3) State authority.--If a State educational agency 
        provides evidence, which is satisfactory to the 
        Secretary, that neither the State educational agency 
        nor any other State government official, agency, or 
        entity has sufficient authority, under State law, to 
        adopt curriculum content and student performance 
        standards, and assessments aligned with such standards, 
        which will be applicable to all students enrolled in 
        the State's public schools, then the State educational 
        agency may meet the requirements of this subsection 
        by--
                  (A) adopting standards and 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 
                performance standards, and 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) Assessments.--Each State plan shall demonstrate 
        that the State has implemented a set of high-quality, 
        yearly student assessments that include, at a minimum, 
        assessments in mathematics and reading or language 
        arts, that will be used, starting not later than the 
        2000-2001 school year, as the primary means of 
        determining the yearly performance of each local 
        educational agency and school served under this title 
        in enabling all children served under this part to meet 
        the State's challenging student performance standards. 
        Such assessments shall--
                  (A) be the same assessments used to measure 
                the performance of all children, if the State 
                measures the performance of all children;
                  (B) be aligned with the State's challenging 
                content and student performance standards and 
                provide coherent information about student 
                attainment of such standards;
                  (C) be used for purposes for which such 
                assessments are valid and reliable, and be 
                consistent with relevant, nationally recognized 
                professional and technical standards for such 
                assessments;
                  (D) measure the proficiency of students in 
                the academic subjects in which a State has 
                adopted challenging content and student 
                performance standards and be administered not 
                less than one or more times during--
                          (i) grades 3 through 5;
                          (ii) grades 6 through 9; and
                          (iii) grades 10 through 12;
                  (E) involve multiple up-to-date measures of 
                student performance, including measures that 
                assess higher order thinking skills and 
                understanding;
                  (F) 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 necessary to measure the 
                        achievement of such students relative 
                        to State content and State student 
                        performance standards;
                          (iii) the inclusion of limited 
                        English proficient students who shall 
                        be assessed, to the extent practicable, 
                        in the language and form most likely to 
                        yield accurate and reliable information 
                        on what such students know and can do 
                        in content areas;
                          (iv) notwithstanding clause (iii), 
                        the assessment (using tests written in 
                        English) of reading or language arts of 
                        any student who has attended school in 
                        the United States (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 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; and
                  (G) include students who have attended 
                schools in a local educational agency for a 
                full academic year but have not attended a 
                single school for a full academic year, except 
                that the performance of students who have 
                attended more than one school in the local 
                educational agency in any academic year shall 
                be used only in determining the progress of the 
                local educational agency;
                  (H) provide individual student reports, which 
                include assessment scores, or other information 
                on the attainment of student performance 
                standards; and
                  (I) enable results to be disaggregated within 
                each State, local educational agency, and 
                school by gender, by each major racial and 
                ethnic group, by English proficiency status, 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.--
                  (A) In general.--Assessment measures that do 
                not meet the requirements of paragraph (4)(C) 
                may be included as one of the multiple 
                measures, if a State includes in the State plan 
                information regarding the State's efforts to 
                validate such measures.
                  (B) Student proficiency in grades k-2.--
                States may measure the proficiency of students 
                in the academic subjects in which a State has 
                adopted challenging content and student 
                performance standards one or more times during 
                grades K-2.
          (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 
        assessments are not available and are needed. The State 
        shall make every effort to develop such assessments and 
        may request assistance from the Secretary if 
        linguistically accessible assessment measures are 
        needed. Upon request, the Secretary shall assist with 
        the identification of appropriate assessment measures 
        in the needed languages, but shall not mandate a 
        specific assessment or mode of instruction.
          (7) Assessment development.--A State shall develop, 
        and implement State assessments that are aligned to 
        challenging State content standards that include, at a 
        minimum, mathematics and reading or language arts by 
        the 2000-2001 school year.
          (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; and
                  ``(B) such other factors the State considers 
                appropriate to provide students an opportunity 
                to achieve the knowledge and skills described 
                in the challenging content standards adopted by 
                the State.
  (c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
          (1) the State educational agency will work with other 
        agencies, including educational service agencies or 
        other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under 
        section 1119 and technical assistance under section 
        1117; and
          (2)(A) where educational service agencies exist, the 
        State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
          (B) where educational service agencies do not exist, 
        the State educational agency will consider providing 
        professional development and technical assistance 
        through other cooperative agreements such as through a 
        consortium of local educational agencies;
          (3) the State educational agency will notify local 
        educational agencies and the public of the content and 
        student performance standards and assessments developed 
        under this section, and of the authority to operate 
        schoolwide programs, and will fulfill the State 
        educational agency's responsibilities regarding local 
        educational agency improvement and school improvement 
        under section 1116, including such corrective actions 
        as are necessary;
          (4) the State educational agency will provide the 
        least restrictive and burdensome regulations for local 
        educational agencies and individual schools 
        participating in a program assisted under this part;
          (5) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at 
        all, hinder the ability of States to hold local 
        educational agencies and schools accountable for 
        student academic performance;
          (6) 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;
          (7) the State educational agency will modify or 
        eliminate State fiscal and accounting barriers so that 
        schools can easily consolidate funds from other 
        Federal, State, and local sources for schoolwide 
        programs under section 1114;
          (8) the State educational agency has involved the 
        committee of practitioners established under section 
        1603(b) in developing the plan and monitoring its 
        implementation; and
          (9) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under title XIV and, if the 
        State is an Ed-Flex Partnership State, waivers under 
        the Education Flexibility Partnership Act of 1999 (30 
        U.S.C. 589a et seq.).
  (d) Peer Review and Secretarial Approval.--
          (1) Secretarial duties.--The Secretary shall--
                  (A) establish a peer review process to assist 
                in the review of State plans;
                  (B) approve a State plan after its submission 
                unless the Secretary determines that the plan 
                does not meet the requirements of this section;
                  (C) 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;
                  (D) not decline to approve a State's plan 
                before--
                          (i) offering the State an opportunity 
                        to revise its plan;
                          (ii) providing technical assistance 
                        in order to assist the State to meet 
                        the requirements under subsections (a), 
                        (b), and (c); and
                          (iii) providing a hearing;
                  (E) have the authority to disapprove a State 
                plan for not meeting the requirements of this 
                part, but shall not have the authority to 
                require a State, as a condition of approval of 
                the State plan, to include in, or delete from, 
                such plan one or more specific elements of the 
                State's content standards or to use specific 
                assessment instruments or items; and
          (2) State revisions.--States shall revise their plans 
        if necessary to satisfy the requirements of this 
        section. Revised plans shall be submitted to the 
        Secretary for approval not later than 1 year after the 
        date of the enactment of the Student Results Act of 
        1999.
  (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 Student Results Act of 1999;
                  (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 State content standards and State student 
        performance standards, new assessments, or a new 
        definition of adequate yearly progress, the State shall 
        submit such information to the Secretary.
  (f) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal 
Government to mandate, direct, or control a State, local 
educational agency, or school's specific instructional content 
or student performance standards and assessments, curriculum, 
or program of instruction, as a condition of eligibility to 
receive funds under this part.
  (g) Penalties.--
          (1) In general.--If a State fails to meet the 
        statutory deadlines for demonstrating that it has in 
        place challenging content standards and student 
        performance standards and assessments, and a system for 
        measuring and monitoring adequate yearly progress, the State 
        shall be ineligible to receive any administrative funds under 
        section 1002(h) that exceed the amount received by the State 
        for such purpose in the previous year.
          (2) Additional funds.--Based on the extent to which 
        such content standards, performance standards, 
        assessments, and monitoring of adequate yearly 
        progress, are not in place, additional administrative 
        funds shall be withheld in such amount as the Secretary 
        determines appropriate, except that for each additional 
        year that the State fails to comply with such 
        requirements, the Secretary shall withhold not less 
        than \1/5\ of the amount the State receives for 
        administrative expenses under section 1002(h).
          (3) Waiver.--Notwithstanding title XIV of this Act 
        and the Education Flexibility Partnership Act or any 
        other provision of law, a waiver shall not be granted 
        except that a State may request a 1-time, 1-year waiver 
        to meet the requirements of this section.
  (h) School Reports.--
          (1) In general.--
                  (A) Annual report.--Except as provided in 
                subparagraph (C), not later than the beginning 
                of the 2001-2002 school year, a State that 
                receives assistance under this Act shall 
                prepare and disseminate an annual report on all 
                schools that receive funds under this part. 
                States and local educational agencies may issue 
                report cards under this section only for local 
                educational agencies and schools receiving 
                funds under this part, except that if a State 
                or local educational agency issues a report 
                card for all students, the State or local 
                educational agency may include the information 
                under this section as part of such report card.
                  (B) Implementation.--The State shall ensure 
                the dissemination of this information at all 
                levels. Such information 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.--In the event the 
                State does not include such information through 
                a report card, the State shall, not later than 
                the beginning of the 2001-2002 school year, 
                publicly report the information described in 
                paragraph (2) through other public means, such 
                as posting on the Internet, distribution to the 
                media, and distribution through public 
                agencies, for all schools that receive funds 
                under this part.
          (2) Content of annual state reports.--
                  (A) Required information.--The State shall, 
                at a minimum, include in the annual State 
                reports information for the State on each local 
                educational agency and school receiving funds 
                under this part regarding--
                          (i) student performance on statewide 
                        assessments for the current and 
                        preceding years in at least reading (or 
                        language arts) and mathematics, 
                        including--
                                  (I) a comparison of the 
                                proportions of students who 
                                performed at ``basic'', 
                                ``proficient'', and 
                                ``advanced'' levels in each 
                                subject area, for each grade 
                                level at which assessments are 
                                required under this part, with 
                                proportions in each of the same 
                                3 categories at the same grade 
                                levels in the previous school 
                                year; and
                                  (II) a statement of the 
                                percentage of students not 
                                tested and a listing of 
                                categories of the reasons why 
                                they were not tested;
                          (ii) retention in grade, completion 
                        of advanced placement courses, and 4-
                        year graduation rates;
                          (iii) the professional qualifications 
                        of teachers in the aggregate, including 
                        the percentage of teachers teaching 
                        with emergency or provisional 
                        credentials, and the percentage of 
                        class sections not taught by fully 
                        qualified teachers; and
                          (iv) the professional qualifications 
                        of paraprofessionals, the number of 
                        paraprofessionals in the aggregate and 
                        the ratio of paraprofessionals to 
                        teachers in the classroom.
                  (B) Student data.--Student data in each 
                report shall contain disaggregated results for 
                the following categories:
                          (i) gender;
                          (ii) racial and ethnic group;
                          (iii) migrant status;
                          (iv) students with disabilities, as 
                        compared to students who are not 
                        disabled;
                          (v) economically disadvantaged 
                        students, as compared to students who 
                        are not economically disadvantaged; and
                          (vi) students with limited English 
                        proficiency, as compared to students 
                        who are proficient in English.
                  (C) Optional information.--A State may 
                include in its report any other information it 
                determines appropriate to reflect school 
                quality and school achievement, including 
                information on average class size by grade 
                level, and information on school safety, such 
                as the incidence of school violence and drug 
                and alcohol abuse, and the incidence of student 
                suspensions and expulsions.
          (3) Content of local educational agencies reports.--
                  (A) Minimum requirements.--The State shall 
                ensure that each local educational agency 
                collects appropriate data and includes in its 
                annual report for each school that receives 
                funds under this part, at a minimum--
                          (i) the information described in 
                        paragraphs (2)(A) and (2)(B) for each 
                        local educational agency and school--
                                  (I) in the case of a local 
                                educational agency--
                                          (aa) the number and 
                                        percentage of schools 
                                        identified for school 
                                        improvement, including 
                                        schools identified 
                                        under section 1116(c) 
                                        of this Act;
                                          (bb) information that 
                                        shows how students in 
                                        its schools perform on 
                                        the statewide 
                                        assessment compared to 
                                        students in the State 
                                        as a whole;
                                  (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 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.--In the event the 
                local educational agency does not include such 
                information through a report card, the local 
                educational agency shall, not later than the 
                beginning of the 2001-2002 school year, 
                publicly report the information described in 
                paragraph (3) through other public means, such 
                as posting on the Internet, distribution to the 
                media, and distribution through public 
                agencies, only for schools that receive funds 
                under this part, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may 
                include the information under this section as 
                part of such report.
          (4) Dissemination and accessibility of reports.--
                  (A) State reports.--State annual reports 
                under paragraph (2) shall be, disseminated to 
                all schools and local educational agencies in 
                the State, and made broadly available to the 
                public through means such as posting on the 
                Internet, distribution to the media, and 
                distribution through public agencies.
                  (B) Local educational agency reports.--Local 
                educational agency reports under paragraph (3) 
                shall be disseminated to all schools receiving 
                funds under this part, in the school district 
                and to all parents of students attending these 
                schools and made broadly available to the 
                public through means such as posting on the 
                Internet, distribution to the media, and 
                distribution through public agencies.
          (5) Parents right-to-know.--
                  (A) Qualifications.--A local educational 
                agency that receives funds under this part 
                shall provide, upon request, in an 
                understandable and uniform format, to any 
                parent of a student attending any school 
                receiving funds under this part, 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 the 
                        qualifications of such 
                        paraprofessionals.
                  (B) Additional information.--In addition to 
                the information which parents may request under 
                subparagraph (A), and the information provided 
                in subsection (c), a school which receives 
                funds under this part shall provide to each 
                individual parent or guardian--
                          (i) information on the level of 
                        performance of the individual student 
                        for whom they are the parent or 
                        guardian in each of the State 
                        assessments as required under this 
                        part; and
                          (ii) timely notice that the student 
                        for whom they are the parent or 
                        guardian has been assigned or has been 
                        taught for 2 or more consecutive weeks 
                        by a substitute teacher or by a teacher 
                        not fully qualified.
          (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 Goals 2000: Educate 
        America Act, and other Acts, as appropriate, as 
        specified in section 14306.] the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        Head Start Act, and other Acts, as appropriate.
          (2) Consolidated application.--The plan may be 
        submitted as part of a consolidated application under 
        section 14304.
  (b) Plan Provisions.--[Each] In order to help low-achieving 
children achieve to high standards, each local educational 
agency plan shall include--
          (1) a description of additional high-quality student 
        assessments, if any, other than the assessments 
        described in the State plan under section 1111, that 
        the local educational agency and schools served under 
        this [part] title will use to--
                  (A) determine the success of children served 
                under this [part] title in meeting the State's 
                student performance standards and provide 
                information to teachers, parents, and students 
                on the progress being made toward meeting the 
                State student performance 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 
                [part] title to meet State standards and do 
                well in the local curriculum; [and]
                  (C) determine what revisions are needed to 
                projects under this [part] title so that such 
                children will meet the State's student 
                performance standards; and
                  (D) determine the literacy levels of first 
                graders and their need for interventions, and a 
                description of how the local educational agency 
                will ensure that any such assessments--
                          (i) are developmentally appropriate; 
                        and
                          (ii) use multiple measures to provide 
                        information about the variety of skills 
                        that scientifically based research has 
                        identified as leading to early 
                        acquisition of reading skills.

           *       *       *       *       *       *       *

          (4) 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, and other 
                preschool programs, including plans for the 
                transition of participants in such programs to 
                local elementary school programs, vocational 
                education programs[, and school-to-work 
                transition programs]; and
                  (B) services for children with limited 
                English proficiency or with disabilities, 
                migratory children served [under part C or who 
                were formerly eligible for services under part 
                C in the two-year period preceding the date of 
                the enactment of the Improving America's School 
                Act of 1994, neglected or delinquent youth and 
                youth at risk of dropping out] under part C, 
                neglected or delinquent youth, Indian children 
                served under title IX, served under part D, 
                homeless children, and immigrant children in 
                order to increase program effectiveness, 
                eliminate duplication, and reduce fragmentation 
                of the instructional program;

           *       *       *       *       *       *       *

          (7) a general description of the nature of the 
        programs to be conducted by such agency's schools under 
        sections 1114 and 1115 and, where appropriate, 
        educational services outside such schools for children 
        living in local institutions for neglected or 
        delinquent children, for neglected and delinquent 
        children in community day school programs, and for 
        [eligible] homeless children;

           *       *       *       *       *       *       *

          (9) where 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 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, agencies operating Even Start programs, 
        or another comparable public early childhood 
        development program[.]; and
          (10) 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; and
          (11) a description of how the agency will promote the 
        use of extended learning time, such as an extended 
        school year and before and after school and summer 
        programs.
  [(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 project authority;
                  [(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 content standards and State 
                student performance standards;
                  [(D) fulfill such agency's school improvement 
                responsibilities under section 1116, including 
                taking corrective actions under section 
                1116(c)(4);
                  [(E) coordinate and collaborate, to the 
                extent feasible and necessary as determined by 
                the local educational agency, with other 
                agencies providing services to children, youth, 
                and families, including health and social 
                services;
                  [(F) 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;
                  [(G) take into account the experience of 
                model programs for the educationally 
                disadvantaged, and the findings of relevant 
                research indicating that services may be most 
                effective if focused on students in the 
                earliest grades at schools that receive funds 
                under this part; and
                  [(H) beginning in fiscal year 1997 and in the 
                case that a local educational agency chooses to 
                use funds under this part to provide early 
                childhood development services to low-income 
                children below the age of compulsory school 
                attendance, ensure that such services comply 
                with the performance standards established 
                under section 641A(a) of the Head Start Act or 
                under section 651 of such Act, as such section 
                651 was in effect on the day preceding the date 
                of enactment of the Human Services Amendments 
                of 1994.
          [(2) Special rule.--In carrying out subparagraph (H) 
        of paragraph (1) the Secretary--
                  [(A) in fiscal year 1995, 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) in fiscal year 1996, shall disseminate 
                to local educational agencies the Head Start 
                Performance Standards revised pursuant to 
                section 641A(a) of the Head Start Act, and such 
                agencies effected 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.--Each local educational 
agency plan shall--
          [(1) be developed in consultation with teachers, 
        including vocational teachers, and pupil services 
        personnel, where appropriate, and parents of children 
        in schools served under this part; and
          [(2)(A) remain in effect for the duration of the 
        local educational agency's participation under this 
        part; and
          [(B) periodically be reviewed and revised, as 
        necessary, to reflect changes in the local educational 
        agency's strategies and programs.
  [(e) State Approval.--
          [(1) In general.--Each local educational agency plan 
        shall be filed according to a schedule established by 
        the State educational agency, except that a local 
        educational agency shall have not more than one year 
        after the date of enactment of the Improving America's 
        Schools Act of 1994 to have such plan provisionally 
        approved by the State educational agency and not more 
        than two years after the date of enactment of such Act 
        to have such plan finally approved 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 will enable schools served 
        under this part to substantially help all children 
        served under this part meet the standards expected of 
        all children described in section 1111(b)(1).
          [(3) Review.--The State educational agency shall 
        review the local educational agency's plan to determine 
        if such agency's professional development activities 
        are in accordance with section 1119.]
  (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 project 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 performance 
                standards;
                  (D) fulfill such agency's school improvement 
                responsibilities under section 1116, including 
                taking corrective actions under section 
                1116(b)(9);
                  (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 performance standards 
                established under section 641A(a) of the Head 
                Start Act;
                  (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 XIV 
                of this Act, and if the State is an Ed-Flex 
                Partnership State, 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) upon publication, shall disseminate to 
                local educational agencies the Head Start 
                performance standards as in effect under 
                section 641A(a) of the Head Start Act, and such 
                agencies affected by such subparagraph shall plan 
                for the implementation of such subparagraph (taking 
                into consideration existing State and local laws, and 
                local teacher contracts), including pursuing the 
                availability of other Federal, State, and local funding 
                sources to assist in compliance with such subparagraph.
          (3) Inapplicability.--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, 
        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 Student 
        Results Act of 1999 and shall remain in effect for the 
        duration of the agency's participation under this part.
          (3) Review.--Each such 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) will enable schools served under this 
                part to substantially help children served 
                under this part meet the standards expected of 
                all children described in section 1111(b)(1); 
                and
                  (B) will meet the requirements of this 
                section.

           *       *       *       *       *       *       *

  (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; and
                  (C) how the English language instruction 
                program will specifically help the child 
                acquire English and meet age-appropriate 
                standards for grade promotion and graduation;
                  (D) what the specific exit requirements are 
                for the program;
                  (E) the expected rate of graduation from the 
                program into mainstream classes; and
                  (F) the expected rate of graduation from high 
                school for the program if funds under this part 
                are used for children in secondary schools.
          (2) Consent.--
                  (A) Agency requirements.--
                          (i) Each local educational agency 
                        that receives funds under this part 
                        shall 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 which does not 
                        include classes which exclusively or 
                        almost exclusively use the English 
                        language in instruction or if 
                        instruction is not tailored for limited 
                        English proficient children.
                          (ii) 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 
                        obtained.
                          (iii)(I) If a response cannot be 
                        obtained after written notice and a 
                        reasonable and substantial effort has 
                        been made to obtain such consent, the 
                        local educational agency shall 
                        document, in writing, that it has given 
                        such written notice and its specific 
                        efforts made to obtain such consent.
                          (II) The proof of documentation shall 
                        be mailed or delivered in writing to 
                        the parents or guardian of the child at 
                        least 10 business days prior to 
                        providing any services under this part, 
                        and include a final notice requesting 
                        parental consent for such services.
                  (B) 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 Act 
                shall--
                          (i) select among methods of 
                        instruction, if more than one method is 
                        offered in the program; and
                          (ii) have the right to have their 
                        child immediately removed from the 
                        program upon their request.
          (3) 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 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 Act; 
                and
                  (B) if a parent of a participating child so 
                desires, notice of opportunities for regular 
                meetings for the purpose of formulating and 
                responding to recommendations from such 
                parents.
          (4) 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) Ranking order.--If funds allocated in accordance 
        with subsection (c) are insufficient to serve all 
        eligible school attendance areas, a local educational 
        agency shall--
                  [(A) annually rank, without regard to grade 
                spans, such agency's eligible school attendance 
                areas in which the concentration of children 
                from low-income families exceeds 75 percent 
                from highest to lowest according to the 
                percentage of children from low-income 
                families; and
                  [(B) serve such eligible school attendance 
                areas in rank order.
          [(4) Remaining funds.--If funds remain after serving 
        all eligible school attendance areas under paragraph 
        (3), a local educational agency shall--
                  [(A) annually rank such agency's remaining 
                eligible school attendance areas from highest 
                to lowest either by grade span or for the 
                entire local educational agency according to 
                the percentage of children from low-income 
                families; and
                  [(B) serve such eligible school attendance 
                areas in rank order either within each grade-
                span grouping or within the local educational 
                agency as a whole.
          [(5) Measures.--The local educational agency shall 
        use the same measure of poverty, which measure shall be 
        the number of children ages 5 through 17 in poverty 
        counted in the most recent census data approved by the 
        Secretary, the number of children eligible for free and 
        reduced priced lunches under the National School Lunch 
        Act, 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 (c).
          [(6) Exception.--This subsection shall not apply to a 
        local educational agency with a total enrollment of 
        less than 1,000 children.
          [(7) Waiver for desegregation plans.--The Secretary 
        may approve a local educational agency's written 
        request for a waiver of the requirements of subsections 
        (a) and (c), and permit such agency to treat as 
        eligible, and serve, any school that children attend 
        with a State-ordered or a court-ordered school 
        desegregation plan or a plan that continues to be 
        implemented in accordance with a State-ordered or 
        court-ordered desegregation plan, if (A) the number of 
        economically disadvantaged children enrolled in the 
        school is at least 25 percent of the school's total 
        enrollment; and (B) the Secretary determines on the 
        basis of a written request from such agency and in 
        accordance with such criteria as the Secretary 
        establishes, that approval of that request would 
        further the purposes of this part.
  [(b) Local Educational Agency Discretion.--
          [(1) In general.--Notwithstanding subsection (a)(2), 
        a local educational agency may--
                  [(A) designate as eligible any school 
                attendance area or school in which at least 35 
                percent of the children are from low-income 
                families;
                  [(B) use funds received under this part in a 
                school that is not in an eligible school 
                attendance area, if the percentage of children 
                from low-income families enrolled in the school 
                is equal to or greater than the percentage of 
                such children in a participating school 
                attendance area of such agency; and
                  [(C) elect not to serve an eligible school 
                attendance area or eligible school that has a 
                higher percentage of children from low-income 
                families if--
                          [(i) the school meets the 
                        comparability requirements of section 
                        1120A(c);
                          [(ii) the school is receiving 
                        supplemental funds from other State or 
                        local sources that are spent according 
                        to the requirements of section 1114 or 
                        1115; and
                          [(iii) the funds expended from such 
                        other sources equal or exceed the 
                        amount that would be provided under 
                        this part.
          [(2) Special rule.--Notwithstanding paragraph (1)(C), 
        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 paragraph (1).
  [(c) Allocations.--
          [(1) In general.--A local educational agency shall 
        allocate funds received under this part to eligible 
        school attendance areas or eligible schools, identified 
        under subsection (a) or (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) where appropriate, eligible homeless 
                children who do not attend participating 
                schools, including providing educationally 
                related support services to children in 
                shelters;
                  [(B) children in local institutions for 
                neglected or delinquent children; and
                  [(C) where appropriate, neglected and 
                delinquent children in community day school 
                programs.

[SEC. 1114. SCHOOLWIDE PROGRAMS.

  [(a) Use of Funds for Schoolwide Programs.--
          [(1) In general.--A local educational agency may use 
        funds under this part, in combination with other 
        Federal, State, and local funds, in order to upgrade 
        the entire educational program in a school described in 
        subparagraph (A) or (B) if, for the initial year of the 
        schoolwide program, the school meets either of the 
        following criteria:
                  [(A) For the school year 1995-1996--
                          [(i) the school serves an eligible 
                        school attendance area in which not 
                        less than 60 percent of the children 
                        are from low-income families; or
                          [(ii) not less than 60 percent of the 
                        children enrolled in the school are 
                        from such families.
                  [(B) For the school year 1996-1997 and 
                subsequent years--
                          [(i) the school serves an eligible 
                        school attendance area in which not 
                        less than 50 percent of the children 
                        are from low-income families; or
                          [(ii) not less than 50 percent of the 
                        children enrolled in the school are 
                        from such families.
          [(2) State assurances.--(A) A local educational 
        agency may start new schoolwide programs under this 
        section only after the State educational agency 
        provides written information to each local educational 
        agency in the State that demonstrates that such State 
        agency has established the statewide system of support 
        and improvement required by subsections (c)(1) and (e) 
        of section 1117.
          [(B) A school that desires to initiate a schoolwide 
        program under this section prior to the establishment 
        of the statewide system of support and improvement 
        required in subsections (c)(1) and (e) of section 1117 
        shall demonstrate to the local educational agency that 
        such school has received high quality technical 
        assistance and support from other providers of 
        assistance such as comprehensive technical assistance 
        centers, regional laboratories, institutions of higher 
        education, educational service agencies, or other local 
        consortia.
          [(3) Identification.--(A) 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) 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.
          [(4) Special rule.--(A) Except as provided in 
        subsection (b), the Secretary may, through publication 
        of a notice in the Federal Register, exempt schoolwide 
        programs under this section from statutory or 
        regulatory provisions of any other noncompetitive 
        formula grant program administered by the Secretary, or 
        any discretionary grant program administered by the 
        Secretary (other than formula or discretionary grant 
        programs under the Individuals with Disabilities 
        Education Act), to support schoolwide programs, if the 
        intent and purposes of such other programs are met.
          [(B) A school that chooses to use funds from such 
        other programs shall not be relieved of the 
        requirements relating to health, safety, civil rights, 
        gender equity, student and parental participation and 
        involvement, services to private school children, 
        maintenance of effort, comparability of services, uses 
        of Federal funds to supplement, not supplant non-
        Federal funds, or the distribution of funds to State or 
        local educational agencies that apply to the receipt of 
        funds from such programs.
          [(5) Professional development.--Each school receiving 
        funds under this part for any fiscal year shall devote 
        sufficient resources to effectively carry out the 
        activities described in subsection (b)(1)(D) in 
        accordance with section 1119 for such fiscal year, 
        except that a school may enter into a consortium with 
        another school to carry out such activities.
  [(b) Components of a Schoolwide Program.--
          [(1) In general.--A schoolwide program shall include 
        the following components:
                  [(A) A comprehensive needs assessment of the 
                entire school that is based on information on 
                the performance of children in relation to the 
                State content standards and the State student 
                performance 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 
                        performance described in section 
                        1111(b)(1)(D);
                          [(ii) are based on effective means of 
                        improving the achievement of children;
                          [(iii) use effective instructional 
                        strategies, which may include the 
                        integration of vocational and academic 
                        learning (including applied learning 
                        and team teaching strategies), that--
                                  [(I) 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
                                  [(II) include strategies for 
                                meeting the educational needs 
                                of historically underserved 
                                populations, including girls 
                                and women;
                          [(iv)(I) address the needs of all 
                        children in the school, but 
                        particularly the needs of children who 
                        are members of the target population of 
                        any program that is included in the 
                        schoolwide program, which may include--
                                  [(aa) counseling, pupil 
                                services, and mentoring 
                                services;
                                  [(bb) college and career 
                                awareness and preparation, such 
                                as college and career guidance, 
                                comprehensive career 
                                development, occupational 
                                information, enhancement of 
                                employability skills and 
                                occupational skills, personal 
                                finance education, job 
                                placement services, and 
                                innovative teaching methods 
                                which may include applied 
                                learning and team teaching 
                                strategies;
                                  [(cc) services to prepare 
                                students for the transition 
                                from school to work, including 
                                the formation of partnerships 
                                between elementary, middle, and 
                                secondary schools and local 
                                businesses, and the integration 
                                of school-based and work-based 
                                learning; and
                                  [(dd) incorporation of 
                                gender-equitable methods and 
                                practices; and
                          [(II) address how the school will 
                        determine if such needs have been met; 
                        and
                          [(vii) are consistent with, and are 
                        designed to implement, the State and 
                        local improvement plans, if any, 
                        approved under title III of the Goals 
                        2000: Educate America Act.
                  [(C) Instruction by highly qualified 
                professional staff.
                  [(D) In accordance with section 1119 and 
                subsection (a)(5), professional development for 
                teachers and aides, and, where appropriate, 
                pupil services personnel, parents, principals, 
                and other staff to enable all children in the 
                school to meet the State's student performance 
                standards.
                  [(E) Strategies to increase parental 
                involvement, such as family literary services.
                  [(F) Plans for assisting preschool children 
                in the transition from early childhood 
                programs, such as Head Start, Even Start, or a 
                State-run preschool program, to local 
                elementary school programs.
                  [(G) Measures to include teachers in the 
                decisions regarding the use of assessments 
                described in section 1112(b)(1) in order to 
                provide information on, and to improve, the 
                performance of individual students and the 
                overall instructional program.
                  [(H) Activities to ensure that students who 
                experience difficulty mastering any of the 
                standards required by section 1111(b) during 
                the course of the school year shall be provided 
                with effective, timely additional assistance, 
                which shall include--
                          [(i) measures to ensure that students 
                        difficulties are identified on a timely 
                        basis and to provide sufficient 
                        information on which to base effective 
                        assistance;
                          [(ii) to the extent the school 
                        determines feasible using funds under 
                        this part, periodic training for 
                        teachers in how to identify such 
                        difficulties and to provide assistance 
                        to individual students; and
                          [(iii) for any student who has not 
                        met such standards, teacher-parent 
                        conferences, at which time the teacher 
                        and parents shall discuss--
                                  [(I) what the school will do 
                                to help the student meet such 
                                standards;
                                  [(II) what the parents can do 
                                to help the student improve the 
                                student's performance; and
                                  [(III) additional assistance 
                                which may be available to the 
                                student at the school or 
                                elsewhere in the community.
          [(2) Plan.--(A) 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 
        before the date of enactment of the Improving America's 
        Schools Act of 1994), in consultation with the local 
        educational agency and its school support team or other 
        technical assistance provider under subsections (c)(1) 
        and (e) of section 1117, a comprehensive plan for 
        reforming the total instructional program in the school 
        that--
                  [(i) incorporates the components described in 
                paragraph (1);
                  [(ii) describes how the school will use 
                resources under this part and from other 
                sources to implement those components;
                  [(iii) includes a list of State and local 
                educational agency programs and other Federal 
                programs under subsection (a)(4) that will be 
                included in the schoolwide program;
                  [(iv) describes how the school will provide 
                individual student assessment results, 
                including an interpretation of those results, to 
                the parents of a child who participates in the 
                assessment required by section 1111(b)(3);
                  [(v) provides for the collection of data on 
                the achievement and assessment results of 
                students disaggregated by gender, major ethnic 
                or racial groups, limited English proficiency 
                status, migrant students, and by children with 
                disabilities as compared to other students, and 
                by economically disadvantaged students as 
                compared to students who are not economically 
                disadvantaged;
                  [(vi) seeks to produce statistically sound 
                results for each category for which assessment 
                results are disaggregated through the use of 
                oversampling or other means; and
                  [(vii) provides for the public reporting of 
                disaggregated data only when such reporting is 
                statistically sound.
          [(B) Plans developed before a State has adopted 
        standards and a set of assessments that meet the 
        criteria in paragraphs (1) and (3) of section 1111(b) 
        shall be based on an analysis of available data on the 
        achievement of students in the school and effective 
        instructional and school improvement practices.
          [(C) The comprehensive plan shall be--
                  [(i) developed during a one-year period, 
                unless--
                          [(I) the local educational agency, 
                        after considering the recommendation of 
                        the technical assistance providers 
                        under subsections (c) and (e) of 
                        section 1117, determines that less time 
                        is needed to develop and implement the 
                        schoolwide program; or
                          [(II) the school is operating a 
                        schoolwide program on the day preceding 
                        the date of enactment of the Improving 
                        America's Schools Act of 1994, in which 
                        case such school may continue to 
                        operate such program, but shall develop 
                        a new plan during the first year of 
                        assistance under such Act to reflect 
                        the provisions of this section;
                  [(ii) developed with the involvement of the 
                community to be served and individuals who will 
                carry out such plan, including teachers, 
                principals, other staff, and, where 
                appropriate, pupil services personnel, and 
                parents, and, if the plan relates to a 
                secondary school, students from such school;
                  [(iii) in effect for the duration of the 
                school's participation under this part and 
                reviewed and revised, as necessary, by the 
                school;
                  [(iv) available to the local educational 
                agency, parents, and the public, and the 
                information contained in such plan shall be 
                translated, to the extent feasible, into any 
                language that a significant percentage of the 
                parents of participating children in the school 
                speak as their primary language; and
                  [(v) where appropriate, developed in 
                coordination with programs under the School-to-
                Work Opportunities Act of 1994, the Carl D. 
                Perkins Vocational and Technical Education Act 
                of 1998, and the National and Community Service 
                Act of 1990.
  [(c) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of 
section 1116.]

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 one 
                        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 National School Lunch Act, 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 14505.
  (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;
                  (B) children in local institutions for 
                neglected or delinquent children; and
                  (C) where appropriate, neglected and 
                delinquent children in community day school 
                programs.
          (4) School improvement reservation.--A local 
        educational agency shall 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 section 
        1116(b)(9).
          (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 
        eligible schools 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
          (2) to help ensure that all children in such a school 
        meet challenging State standards for student 
        performance, 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 50 percent of the children are from low-income 
        families, or not less than 50 percent of the children 
        enrolled in the school are from such families.
          (2) State assurances.--A local educational agency may 
        start new schoolwide programs under this section only 
        after the State educational agency provides written 
        information to each local educational agency in the 
        State that demonstrates that such State educational 
        agency has established the statewide system of support 
        and improvement required by subsections (c)(1) and (e) 
        of section 1117.
          (3) Identification of students not required.--(A) 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) 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.
          (4) Exemption from statutory and regulatory 
        requirements.--(A) 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) 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)(i) 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.
          (5) 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)(E) 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 content standards and the 
                State student performance 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 
                        performance 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 performance 
                        standards who are members of the target 
                        population of any program that is 
                        included in the schoolwide program;
                          (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.
                  (D) Instruction by fully qualified (as 
                defined in section 1610) teachers.
                  (E) In accordance with section 1119A, 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 performance standards.
                  (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, or a State-run 
                preschool program, to local elementary school 
                programs.
                  (H) Measures to include teachers in the 
                decisions regarding the use of 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 performance 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 date of enactment of the Student 
        Results Act of 1999), 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;
                  (C) includes a list of State and local 
                educational agency programs and other Federal 
                programs under subsection (b)(4) that will be 
                consolidated in the schoolwide program;
                  (D) describes how the school will provide 
                individual student assessment results, 
                including an interpretation of those results, 
                to the parents of a child who participates in 
                the assessments required by section 1111(b)(4) 
                and in a format and, to the extent practicable, 
                in a language that they can understand; and
                  (E) provides for the collection of data on 
                the achievement and assessment results of 
                students disaggregated by gender, major ethnic 
                or racial groups, limited English proficiency 
                status, migrant students, by children with 
                disabilities as compared to other students, and 
                by economically disadvantaged students as 
                compared to students who are not economically 
                disadvantaged, except that such disaggregation 
                shall not be required in a case in which the 
                number of students in a category is 
                insufficient to yield statistically reliable 
                information or the results would reveal 
                individually identifiable information about an 
                individual student.
          (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 date 
                        of enactment of the Student Results Act 
                        of 1999, 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 under such Act to reflect 
                        the provisions of this section;
                  (B) developed with the involvement of the 
                community to be served and individuals who will 
                carry out such plan, including teachers, 
                principals, administrators (including 
                administrators of programs described in other 
                parts of this title), if appropriate pupil 
                services personnel, school staff and parents, 
                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 the Reading Excellence Act, 
                the Carl D. Perkins Vocational and Technical 
                Education Act of 1998, the Head Start Act, and 
                part B of this title.
  (d) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of 
section 1116.

SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

  (a) In General.--In all schools selected to receive funds 
under section [1113(c)] 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 part 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 where the local educational agency 
                provides a free public education, yet are of an 
                age at which such children can benefit from an 
                organized instructional program provided in a 
                school or other educational setting.
          [(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 performance standards 
        on the basis of multiple, educationally related, 
        objective criteria established by the local educational 
        agency and supplemented by the school, except that 
        children from preschool through grade two shall be 
        selected solely on the basis of such criteria as 
        teacher judgment, interviews with parents, and 
        developmentally appropriate measures.
          [(2) Children included.--(A)(i) Children who are 
        economically disadvantaged, children with disabilities, 
        migrant children or limited English proficient 
        children, are eligible for services under this part on 
        the same basis as other children selected to receive 
        services under this part.
          [(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 two years 
        preceding the year for which the determination is made, 
        participated in a Head Start or Even Start program, is 
        eligible for services under this part.
          [(C)(i) A child who, at any time in the two years 
        preceding the year for which the determination is made, 
        received services under the program for youth who are 
        neglected, delinquent, or at risk of dropping out under 
        part D (or its predecessor authority) may be 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 may be eligible for services 
        under this part.
          [(D) A child who is homeless and attending any school 
        in the local educational agency may be 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 part the opportunity to meet the State's 
        student performance 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 student performance standards expected 
                for all children;
                  [(B) be based on effective means for 
                improving achievement of children;
                  [(C) ensure that planning for students served 
                under this part is incorporated into existing 
                school planning;
                  [(D) use effective instructional strategies 
                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;
                  [(E) coordinate with and support the regular 
                education program, which may include--
                          [(i) counseling, mentoring, and other 
                        pupil services;
                          [(ii) college and career awareness 
                        and preparation, such as college and 
                        career guidance, comprehensive career 
                        development, occupational information, 
                        enhancement of employability skills and 
                        occupational skills, personal finance 
                        education, job placement services, and 
                        innovative teaching methods which may 
                        include applied learning and team 
                        teaching strategies;
                          [(iii) services to prepare students 
                        for the transition from school to work, 
                        including the formation of partnerships 
                        between elementary, middle, and 
                        secondary schools and local businesses, 
                        and the integration of school-based and 
                        work-based learning; and
                          [(iv) services to assist preschool 
                        children in the transition from early 
                        childhood programs to elementary school 
                        programs;
                  [(F) provide instruction by highly qualified 
                staff;
                  [(G) in accordance with subsection (e)(3) and 
                section 1119, provide opportunities for 
                professional development with resources 
                provided under this part, and from other 
                sources to the extent feasible, for 
                administrators and for teachers and other 
                school staff who work with participating 
                children in programs under this section or in 
                the regular education program; and
                  [(H) provide strategies to increase parental 
                involvement, such as family literary 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 performance 
        by--
                  [(A) the coordination of resources provided 
                under this part with other resources to enable 
                the children served to meet the State content 
                standards and State student performance 
                standards; 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 performance 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 performance standards in the 
                classroom.
  [(d) Assignment of Personnel.--To promote the integration of 
staff supported with funds under this part and children served 
under this part into the regular school program and overall 
school planning and improvement efforts, public school 
personnel who are paid with funds received under this part 
may--
          [(1) assume limited duties that are assigned to 
        similar personnel who are not so paid, including duties 
        beyond classroom instruction or that do not benefit 
        participating children, so long as the amount of time 
        spent on such duties is the same proportion of total 
        work time as prevails with respect to similar personnel 
        at the same school;
          [(2) participate in general professional development 
        and school planning activities; and
          [(3) collaboratively teach with regular classroom 
        teachers, if such collaborative teaching directly 
        benefits participating children.]
  (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 where 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 performance standards 
        on the basis of 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 
        developmentally appropriate measures.
          (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 or Even Start 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 performance 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 performance 
                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 to elementary 
                school programs;
                  (E) provide instruction by fully qualified 
                teachers as defined in section 1610;
                  (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 performance 
        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 performance 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 performance 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) * * *
          (2) Comprehensive services.--If health, nutrition, 
        and other social services are not otherwise available 
        to eligible children in a targeted assistance school 
        and such school, if appropriate, has engaged in a 
        comprehensive needs assessment and established a 
        collaborative partnership with local service providers, 
        and if funds are not reasonably available from other 
        public or private sources to provide services under 
        this part, 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) compensation of a coordinator; and]
                  [(C)] (B) professional development necessary 
                to assist teachers, pupil services personnel, 
                other staff, and parents in identifying and 
                meeting the comprehensive needs of eligible 
                children.

           *       *       *       *       *       *       *


[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 choice programs, for 
children eligible for assistance under this part, which permit 
parents to select the public school that their children will 
attend.
  [(b) Choice Plan.--A local educational agency that chooses to 
implement a school choice plan shall first develop a 
comprehensive plan that includes assurances that--
          [(1) all eligible students across grade levels will 
        have equal access to the program;
          [(2) the program does not include schools which 
        follow a racially discriminatory policy;
          [(3) describe how the school will use resources under 
        this part and from other sources to implement the plan;
          [(4) describe how the school will provide individual 
        student assessment results, including an interpretation 
        of such results, to the parents of a child who 
        participates in the assessment required by section 
        1111(b)(3);
          [(5) the plan will be developed with the involvement 
        of the community to be served and individuals who will 
        carry out the plan, including teachers, principals, and 
        other staff, parents, and, if the plan relates to a 
        secondary school, students from the school;
          [(6) the plan will be made available to parents and 
        the public;
          [(7) the program will not include schools that do not 
        receive funds under this part;
          [(8) the program will not use funds under this part 
        to pay for transportation costs;
          [(9) both the sending and receiving schools agree to 
        the student transfer; and
          [(10) such local educational agency will comply with 
        the other requirements of this part.]

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 assurances that--
          (1) all eligible students across grade levels served 
        under this part will have equal access to the program;
          (2) the program does not include schools that follow 
        a racially discriminatory policy;
          (3) describe how the school will use resources under 
        this part and from other sources to implement the plan;
          (4) the plan will be developed with the involvement 
        of parents and others in the community to be served and 
        individuals who will carry out the plan, including 
        administrators, teachers, principals, and other staff;
          (5) 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;
          (6) 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;
          (7) transportation services or the costs of 
        transportation may be provided by the local educational 
        agency with funds under this part; and
          (8) such local educational agency will comply with 
        the other requirements of this part.

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

  (a) Local Review.--Each local educational agency receiving 
funds under this part shall--
          (1) use the State assessments described in the State 
        plan;
          (2) use any additional measures or indicators 
        described in the local educational agency's plan to 
        review annually the progress of each school served 
        under this part to determine whether the school is 
        meeting, or making adequate progress as defined in 
        section [1111(b)(2)(A)(i)] 1111(b)(2)(B) toward 
        enabling its students to meet the State's student 
        performance standards described in the State plan;
          (3) publicize and disseminate to teachers and other 
        staff, parents, students, and the community, the 
        results of the annual review under paragraph (2) of all 
        schools served under this part in [individual school 
        performance profiles] school reports that include 
        statistically sound disaggregated results as required 
        by section 1111(b)(3)(I); [and]
          (4) provide the results of the local annual review to 
        schools so that the schools can continually refine the 
        program of instruction to help all children served 
        under this part in those schools meet the State's 
        student performance standards[.]; and
          (5) review the effectiveness of the actions and 
        activities the schools are carrying out under this part 
        with respect to parental involvement assisted under 
        this Act.
  [(b) Designation of Distinguished Schools.--Each State 
educational agency and local educational agency receiving funds 
under this part shall designate distinguished schools in 
accordance with section 1117.
  [(c) School Improvement.--
          [(1) In general.--A local educational agency shall 
        identify for school improvement any school served under 
        this part that--
                  [(A) has been in program improvement under 
                section 1020 of the Elementary and Secondary 
                Education Act of 1965 (as such section was in 
                effect on the day preceding the date of 
                enactment of the Improving America's Schools 
                Act of 1994), for at least two consecutive 
                school years prior to such day;
                  [(B) has not made adequate progress as 
                defined in the State's plan under section 
                1111(b)(2)(A)(i) for two consecutive school 
                years, except that--
                          [(i) this subparagraph shall not 
                        apply to a school if almost every 
                        student in such school is meeting the 
                        State's advanced level of performance; 
                        or
                          [(ii) in the case of a targeted 
                        assistance school, such school may be 
                        reviewed on the progress of only those 
                        students that have been or are served 
                        under this part; or
                  [(C) has failed to meet the criteria 
                established by the State through the State's 
                transitional procedure under section 
                1111(b)(7)(B) for two consecutive years.
          [(2) Requirement.--(A) Each school identified under 
        paragraph (1) shall--
                  [(i) in consultation with parents, the local 
                educational agency, and the school support 
                team, develop or revise a school plan in ways 
                that have the greatest likelihood of improving 
                the performance of participating children in 
                meeting the State's student performance 
                standards; and
                  [(ii) submit the plan or revised plan to the 
                local educational agency for approval.
          [(B) Before identifying a school for school 
        improvement under paragraph (1), the local educational 
        agency shall provide the school with an opportunity to 
        review the school-level data, including assessment 
        data, on which such identification is based. If the 
        school believes that such identification for school 
        improvement is in error for statistical or other 
        substantive reasons, such school may provide evidence 
        to the local educational agency to support such belief.
          [(C) During the first year immediately following such 
        identification, the school shall implement such 
        school's plan or revised plan.
          [(3) Professional development.--(A) Each school 
        identified under paragraph (1) shall, as part of the 
        school plan under paragraph (2), improve the skills of 
        its staff by providing effective professional 
        development activities. A school shall demonstrate such 
        school's compliance with this paragraph by--
                  [(i) devoting to such activities, over two 
                consecutive years, an amount equivalent to at 
                least 10 percent of the funds received by the 
                school under this part during one fiscal year; 
                or
                  [(ii) otherwise demonstrating that such 
                school is effectively carrying out professional 
                development activities.
          [(B) A school may use funds from any source to meet 
        the requirements of this subsection.
          [(C) Decisions about how to use the funds made 
        available under this part which the school makes 
        available for professional development shall be made by 
        teachers, principals, and other school staff in that 
        school.
          [(4) Technical assistance.--(A) For each school 
        identified under paragraph (1), the local educational 
        agency shall provide technical or other assistance as 
        the school develops and implements such school's plan 
        or revised plan, such as a joint plan between the local 
        educational agency and school that addresses specific 
        elements of student performance problems and that 
        specifies school and local educational agency 
        responsibilities under the plan, and waivers or 
        modifications of requirements of local educational 
        agency policy or regulation that impede the ability of 
        the school to educate students.
          [(B) Such technical assistance may be provided 
        directly by the local educational agency, through 
        mechanisms authorized under section 1117, or with the 
        local educational agency's approval, by an institution 
        of higher education, a private nonprofit organization, 
        an educational service agency, a comprehensive regional 
        assistance center under part A of title XIII, or other 
        entities with experience in helping schools improve 
        achievement.
          [(5) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (4) and taking other remediation 
        measures, the local educational agency may take 
        corrective action at any time against a school that has 
        been identified under paragraph (1), but, during the 
        third year following identification under paragraph 
        (1), shall take such action against any school that 
        still fails to make adequate progress.
          [(B)(i) Corrective actions are those, consistent with 
        State and local law, determined and made public and 
        disseminated by the local educational agency, which may 
        include--
                  [(I) withholding funds;
                  [(II) interagency collaborative agreements 
                between the school and other public agencies to 
                provide health, counseling, and other social 
                services needed to remove barriers to learning;
                  [(III) revoking authority for a school to 
                operate a schoolwide program;
                  [(IV) decreasing decisionmaking authority at 
                the school level;
                  [(V) making alternative governance 
                arrangements such as the creation of a public 
                charter school;
                  [(VI) reconstituting the school staff; and
                  [(VII) authorizing students to transfer, 
                including transportation costs, to other public 
                schools served by the local educational agency.
          [(ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this part shall not include the 
        actions described in subclause (I), (III), (IV), (VI), 
        or (VII) of clause (i) until the State has developed 
        assessments that meet the requirements of subparagraph 
        (C) of section 1111(b)(3).
          [(C) Prior to implementing any corrective action, the 
        local educational agency may refrain from such 
        corrective action for one additional year to the extent 
        that the failure to make progress can be attributed to 
        extenuating circumstances as determined by the local 
        educational agency.
          [(D) A school that is no longer operating its 
        schoolwide program due to a corrective action may not 
        resume operation of such a program until the local 
        educational agency determines that the school has 
        adequately reformed its schoolwide program plan to 
        enable the school to make adequate progress toward 
        meeting the State's challenging student performance 
        standards.
          [(6) State educational agency responsibilities.--The 
        State educational agency shall--
                  [(A) make technical assistance under section 
                1117 available to the schools farthest from 
                meeting the State's challenging student 
                performance standards, if requested by the 
                school or local educational agency; and
                  [(B) if such agency determines that a local 
                educational agency failed to carry out the 
                local educational agency's responsibilities 
                under paragraphs (4) and (5), take such 
                corrective actions as the State educational 
                agency deems appropriate and which are in 
                compliance with State law.
          [(7) Special rule.--Schools that, for at least two of 
        the three years following identification under 
        paragraph (1), make adequate progress toward meeting 
        the State's proficient and advanced levels of 
        performance shall no longer need to be identified for 
        school improvement.
  [(d) State Review and Local Educational Agency Improvement.--
          [(1) In general.--A State educational agency 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 progress as defined in section 
                1111(b)(2)(A)(ii) toward meeting the State's 
                student performance 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, including 
                statistically sound disaggregated results, as 
                required by section 1111(b)(3)(I).
          [(2) Rewards.--In the case of a local educational 
        agency that for three consecutive years has met or 
        exceeded the State's definition of adequate progress as 
        defined in section 1111(b)(2)(A)(ii), the State may 
        make institutional and individual rewards of the kinds 
        described for individual schools in paragraph (2) of 
        section 1117(c).
          [(3) Identification.--(A) A State educational agency 
        shall identify for improvement any local educational 
        agency that--
                  [(i) for two consecutive years, is not making 
                adequate progress as defined in section 
                1111(b)(2)(A)(ii) in schools served under this 
                part toward meeting the State's student 
                performance standards, except that schools 
                served by the local educational agency that are 
                operating targeted assistance programs may be 
                reviewed on the basis of the progress of only 
                those students served under this part; or
                  [(ii) has failed to meet the criteria 
                established by the State through such State's 
                transitional procedure under section 
                1111(b)(7)(B) for two consecutive years.
          [(B) Before identifying a local educational agency 
        for improvement under paragraph (1), the State 
        educational agency shall provide the local educational 
        agency with an opportunity to review the school-level 
        data, including assessment data, on which such 
        identification is based. If the local educational 
        agency believes that such identification for 
        improvement is in error due to statistical or other 
        substantive reasons, such local educational agency may 
        provide evidence to the State educational agency to 
        support such belief.
          [(4) Local educational agency revisions.--(A) Each 
        local educational agency identified under paragraph (3) 
        shall, in consultation with schools, parents, and 
        educational experts, revise its local educational 
        agency plan under section 1112 in ways that have the 
        greatest likelihood of improving the performance of 
        schools served by the local educational agency under 
        this part in meeting the State's student performance 
        standards.
          [(B) Such revision shall include determining why the 
        local educational agency's plan failed to bring about 
        increased achievement.
          [(5) State educational agency responsibility.--(A) 
        For each local educational agency identified under 
        paragraph (3), the State educational agency shall--
                  [(i) provide technical or other assistance, 
                if requested, as authorized under section 1117, 
                to better enable the local educational agency 
                to--
                          [(I) develop and implement the local 
                        educational agency's revised plan; and
                          [(II) work with schools needing 
                        improvement; and
                  [(ii) make available to the local educational 
                agencies farthest from meeting the State's 
                standards, if requested, assistance under 
                section 1117.
          [(B) Technical or other assistance may be provided by 
        the State educational agency directly, or by an 
        institution of higher education, a private nonprofit 
        organization, an educational service agency or other 
        local consortium, a technical assistance center, or 
        other entities with experience in assisting local 
        educational agencies improve achievement, and may 
        include--
                  [(i) interagency collaborative agreements 
                between the local educational agency and other 
                public agencies to provide health, pupil 
                services, and other social services needed to 
                remove barriers to learning; and
                  [(ii) waivers or modification of requirements 
                of State law or regulation (in States in which 
                such waivers are permitted) that impede the 
                ability of a local educational agency to 
                educate students.
          [(6) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (5) and taking other remediation 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency that has been identified under 
        paragraph (3), but, during the fourth year following 
        identification under paragraph (3), shall take such 
        action against any local educational agency that still 
        fails to make adequate progress.
          [(B)(i) Corrective actions are those actions, 
        consistent with State law, determined and made public 
        and disseminated by the State educational agency, which 
        may include--
                  [(I) the withholding of funds;
                  [(II) reconstitution of school district 
                personnel;
                  [(III) removal of particular schools from the 
                jurisdiction of the local educational agency 
                and establishment of alternative arrangements 
                for public governance and supervision of such 
                schools;
                  [(IV) appointment by the State educational 
                agency of a receiver or trustee to administer 
                the affairs of the local educational agency in 
                place of the superintendent and school board;
                  [(V) the abolition or restructuring of the 
                local educational agency;
                  [(VI) the authorizing of students to transfer 
                from a school operated by one local educational 
                agency to a school operated by another local 
                educational agency; and
                  [(VII) a joint plan between the State and the 
                local educational agency that addresses 
                specific elements of student performance 
                problems and that specifies State and local 
                responsibilities under the plan.
          [(ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this part shall not include the 
        actions described in subclauses (I), (II), and (III) of 
        clause (i) until the State has developed assessments 
        that meet the requirements of paragraph (3)(C) of 
        section 1111(b).
          [(C) Prior to implementing any corrective action, the 
        State educational agency shall provide due process and 
        a hearing (if State law provides for such due process 
        and a hearing) to any local educational agency 
        identified under paragraph (3) and may refrain from 
        such corrective action for one year after the four-year 
        period described in subparagraph (A) to the extent that 
        the failure to make progress can be attributed to such 
        extenuating circumstances as determined by the State 
        educational agency.
          [(7) Special rule.--Local educational agencies that 
        for at least two of the three years following 
        identification under paragraph (3) make adequate 
        progress toward meeting the State's standards no longer 
        need to be identified for local educational agency 
        improvement.]
  (b) School Improvement.--
          (1) In general.--A local educational agency shall 
        identify for school improvement any school served under 
        this part that--
                  (A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the 
                State's plan under section 1111(b)(2); or
                  (B) was in school improvement status under 
                this section on the day preceding the date of 
                the enactment of the Student Results Act of 
                1999.
          (2) Transition.--The 2-year period described in 
        paragraph (1)(A) shall include any continuous period of 
        time immediately preceding the date of the enactment of 
        the Student Results Act of 1999 during which a school 
        did not make adequate yearly progress as defined in the 
        State's plan, as such plan was in effect on the day 
        preceding the date of such enactment.
          (3) Targeted assistance schools.--To determine if a 
        school that is conducting a targeted assistance program 
        under section 1115 should be identified as in need of 
        improvement under this subsection, a local educational 
        agency may choose to review the progress of only those 
        students in such school who are served under this part.
          (4) Opportunity to review and present evidence.--
                  (A) In general.--Before identifying a school 
                for school improvement under paragraph (1), the 
                local educational agency shall provide the 
                school with an opportunity to review the 
                school-level data, including assessment data, 
                on which the proposed identification is based.
          (B) Supporting evidence.--If the school principal 
        believes that the proposed identification is in error 
        for statistical or other substantive reasons, the 
        principal may provide supporting evidence to the local 
        educational agency, which such agency shall consider 
        before making a final determination.
          (5) Notification to parents.--A local educational 
        agency shall, in an easily understandable format, 
        provide in writing to parents of each student in a 
        school identified for school improvement--
                  (A) an explanation of what the school 
                improvement identification means and how the 
                school compares in terms of academic 
                performance to other schools in the local 
                educational agency and State;
                  (B) the reasons for such identification;
                  (C) the data on which such identification is 
                based;
                  (D) an explanation of what the school is 
                doing to address the problem of low 
                achievement;
                  (E) an explanation of how parents can become 
                involved in upgrading the quality of the 
                school;
                  (F) an explanation of the right of parents, 
                pursuant to paragraph (6), to transfer their 
                child to another public school, including a 
                public charter school, that is not in school 
                improvement, and how such transfer shall 
                operate; and
                  (G) notification to parents in a format and, 
                to the extent practicable, in a language they 
                can understand.
          (6) Public school choice option.--
                  (A) Schools identified for improvement.--
                          (i) Schools identified on or before 
                        enactment.--Not later than 18 months 
                        after the date of enactment of the 
                        Student Results Act of 1999, a local 
                        educational agency shall provide all 
                        students enrolled in a school 
                        identified (on or before such date of 
                        enactment) for school improvement with 
                        an option to transfer to any other 
                        public school within the local 
                        educational agency or any public school 
                        consistent with subparagraph (B), 
                        including a public charter school that 
                        has not been identified for school 
                        improvement, unless such option to 
                        transfer is prohibited by State law, or 
                        local law, which includes school board-
                        approved local educational agency 
                        policy.
                          (ii) Schools identified after 
                        enactment.--Not later than 18 months 
                        after the date on which a local 
                        educational agency identifies a school 
                        for school improvement, the agency 
                        shall provide all students enrolled in 
                        such school with an option described in 
                        clause (i).
          (B) Cooperative agreement.--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 the transfer.
          (C) Transportation.--The local educational agency in 
        which the schools have been identified for improvement 
        may use funds under this part to provide transportation 
        to students whose parents choose to transfer their 
        child or children to a different school.
          (D) Continue option.--Once a school is no longer 
        identified for school improvement, the local 
        educational agency shall continue to provide public 
        school choice as an option to students in such school 
        for a period of not less than 2 years.
          (7) School plan.--
                  (A) In general.--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, and other outside 
                experts for approval by the local educational 
                agency. Such plan shall--
                  (i) incorporate scientifically-based research 
                strategies that strengthen the core academic 
                program in the school;
                  (ii) adopt policies that have the greatest 
                likelihood of improving the performance of 
                participating children in meeting the State's 
                student performance standards;
                  (iii) address the professional development 
                needs of staff, particularly teachers and 
                principals;
                  (iv) establish specific goals and objectives 
                the school will undertake for making adequate 
                yearly progress which include specific 
                numerical performance goals and targets for 
                each of the groups of students identified in 
                the disaggregated data pursuant to section 
                1111(b)(2);
                  (v) identify how the school will provide 
                written notification to parents, in a format 
                and to the extent practicable in a language 
                such parents can understand; and
                  (vi) specify the responsibilities of the 
                local educational agency and the school under 
                the plan.
          (B) Conditional approval.--A local educational agency 
        may condition approval of a school plan on inclusion of 
        1 or more of the corrective actions specified in 
        paragraph (9).
          (C) Implementation.--A school 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.
          (D) Review.--The local educational agency shall 
        promptly review the plan, work with the school as 
        necessary, and approve the plan if it meets the 
        requirements of this section.
          (8) Technical assistance.--
                  (A) In general.--For each school identified 
                for school improvement under paragraph (1), the 
                local educational agency shall provide 
                technical assistance as the school develops and 
                implements its plan.
          (B) Specific technical assistance.--Such technical 
        assistance--
                  (i) shall include effective methods and 
                instructional strategies that are based upon 
                scientifically based research that strengthens 
                the core academic program in the school and 
                addresses the specific elements of student 
                performance problems in the school;
                  (ii) may be provided directly by the local 
                educational agency, through mechanisms 
                authorized under section 1117, or with the 
                local educational agency's approval, by an 
                institution of higher education, a private 
                nonprofit organization, an educational service 
                agency, a comprehensive regional assistance 
                center under part A of title XIII, or other 
                entities with experience in helping schools 
                improve achievement.
          (C) Technical assistance.--Technical assistance 
        provided under this section by the local 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 
        standards, each local educational agency 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 (F), the local educational 
                agency--
                          (i) may take corrective action at any 
                        time with respect to a school that has 
                        been identified under paragraph (1);
                          (ii) shall take corrective action 
                        with respect to any school that fails 
                        to make adequate yearly progress, as 
                        defined by the State, after the end of 
                        the second year following its 
                        identification under paragraph (1); 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 and local law, that--
                          (i) substantially and directly 
                        responds to the consistent academic 
                        failure that caused the local 
                        educational agency to take such action 
                        and to any underlying staffing, 
                        curricular, or other problems in the 
                        school; and
                          (ii) is designed to substantially 
                        increase the likelihood that students 
                        will perform at the proficient and 
                        advanced performance levels.
                  (C) Certain schools.--In the case of a school 
                described in subparagraph (A)(ii), the local 
                educational agency shall take not less than 1 
                of the following corrective actions:
                          (i) Withhold funds from the school.
                          (ii) Decrease decisionmaking 
                        authority at the school level.
                          (iii) Make alternative governance 
                        arrangements, including reopening the 
                        school as a public charter school.
                          (iv) Reconstitute the school by 
                        requiring each person employed at the 
                        school to reapply for future employment 
                        at the same school or for any position 
                        in the local educational agency.
                          (v) Authorize students to transfer to 
                        other higher performing public schools 
                        served by the local educational agency, 
                        including public charter schools, 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 subparagraph.
                          (vi) Institute and fully implement a 
                        new curriculum, including appropriate 
                        professional development for all 
                        relevant staff, that is based upon 
                        scientifically based research and 
                        offers substantial promise of improving 
                        educational achievement for low-
                        performing students.
                  (D) Implementation delay.--A local 
                educational agency may delay, for a period not 
                to exceed 1 year, implementation of corrective 
                action only if the failure to make adequate 
                yearly progress was justified due to 
                exceptional or uncontrollable circumstances 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources 
                of the local educational agency or school.
                  (E) Publication.--The local educational 
                agency shall publish, and disseminate to the 
                public and to parents in a format and, to the 
                extent practicable, in a language that they can 
                understand, any corrective action it takes 
                under this paragraph through such means as the 
                Internet, the media, and public agencies.
                  (F) Review.--(i) Before taking corrective 
                action with respect to any school under this 
                paragraph, a local educational agency shall 
                provide the school an opportunity to review the 
                school level data, including assessment data, 
                on which the proposed determination is made.
                  (ii) If the school believes that the proposed 
                determination is in error for statistical or 
                other substantive reasons, it may provide 
                supporting evidence to the local educational 
                agency, which shall consider such evidence 
                before making a final determination.
          (10) State educational agency responsibilities.--If a 
        State educational agency determines that a local 
        educational agency failed to carry out its 
        responsibilities under this section, it shall take such 
        action as it finds necessary, consistent with this 
        section, to improve the affected schools and to ensure 
        that the local educational agency carries out its 
        responsibilities under this section.
          (11) Special rule.--Schools that, for at least two of 
        the three years following identification under 
        paragraph (1), make adequate yearly progress toward 
        meeting the State's proficient and advanced levels of 
        performance shall no longer be identified for school 
        improvement.
  (c) State Review and Local Educational Agency Improvement.--
          (1) In general.--A State educational agency 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 
                performance 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 educational agency 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 enactment of the 
                Student Results Act of 1999.
          (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 Student Results Act of 1999, 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 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 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.
          (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 reasons for such agency's 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 performance standards;
                                  (II) address the professional 
                                development needs of staff; and
                                  (III) include specific 
                                numerical performance goals and 
                                targets for each of the groups 
                                of students identified in the 
                                disaggregated data pursuant to 
                                section 1111(b)(2);
                          (iii) 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
                          (iv) specify the responsibilities of 
                        the State educational agency and the 
                        local educational agency under the 
                        plan.
                  (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 educational agency responsibility.--
                  (A) In general.--For each local educational 
                agency identified under paragraph (2), the 
                State educational agency shall provide 
                technical or other assistance, if requested, as 
                authorized under section 1117, to better enable 
                the local educational agency--
                          (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 
        standards, each State educational agency 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 educational 
                agency--
                          (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 
                        educational agency 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) Reconstitute of school district 
                        personnel;
                          (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 two of the three years following 
        identification under paragraph (2), makes adequate 
        yearly progress toward meeting the State's proficient 
        and advanced levels of performance shall no longer be 
        identified for school improvement.

           *       *       *       *       *       *       *


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

  [(a) System for Support.--
          [(1) State support.--Each State educational agency 
        shall establish a statewide system of intensive and 
        sustained support and improvement for schools receiving 
        funds under this part, including schoolwide programs 
        and schools in need of program improvement, in order to 
        increase the opportunity for all students in such 
        schools to meet the State's content standards and 
        student performance standards.
          [(2) Meeting requirements.--Funds reserved under 
        section 1003(a) or appropriated under section 1002(f) 
        shall be used to meet the requirements of this section. 
        In addition to such funds a State educational agency 
        may use State administrative funds reserved under 
        section 1603(c) to meet such requirements.
  [(b) Regional Centers.--Such a statewide system shall work 
with and receive support and assistance from the comprehensive 
regional technical assistance centers under part A of title 
XIII and the educational regional laboratories under section 
941(h) of the Educational Research, Development, Dissemination, 
and Improvement Act of 1994.
  [(c) Provisions.--The system shall include at a minimum, the 
following:
          [(1) School support teams.--
                  [(A) Each State educational agency, in 
                consultation with local educational agencies 
                and schools, shall establish a system of school 
                support teams to provide information and 
                assistance to schoolwide programs and to assist 
                such programs in providing an opportunity to 
                all students to meet the State's student 
                performance standards.
                  [(B) If funds are sufficient, school support 
                teams shall provide information and assistance 
                to--
                          [(i) schools--
                                  [(I) in which the number of 
                                students in poverty is equal to 
                                or greater than 75 percent of 
                                the total number of students 
                                enrolled in such school; and
                                  [(II) identified as in need 
                                of improvement under section 
                                1116(c)(1); and
                          [(ii) other schools in need of 
                        improvement.
                  [(C) Each such team shall be composed of 
                persons, including teachers, pupil services 
                personnel, representatives of organizations 
                knowledgeable about successful schoolwide 
                projects or comprehensive school reform 
                (especially distinguished educators described 
                in paragraph (3)), and other persons who are 
                knowledgeable about research and practice on 
                teaching and learning, particularly about 
                strategies for improving the educational 
                opportunities for low-achieving students 
                (including alternative and applied learning), 
                such as representatives of institutions of 
                higher education, regional educational 
                laboratories or research centers, and outside 
                consultant groups.
                  [(D) A school support team shall work 
                cooperatively with each school and make 
                recommendations as the school develops the 
                school's schoolwide program plan or school 
                improvement plan, review each plan, and make 
                recommendations to the school and the local 
                educational agency.
                  [(E) During the operation of the schoolwide 
                program or during school improvement 
                activities, a school support team shall--
                          [(i) periodically review the progress 
                        of the school in enabling children in 
                        the school to meet the State's student 
                        performance standards under this part;
                          [(ii) identify problems in the design 
                        and operation of the instructional 
                        program; and
                          [(iii) make recommendations for 
                        improvement to the school and the local 
                        educational agency.
          [(2) Distinguished schools.--
                  [(A) Each State shall designate as a 
                distinguished school any school served under 
                this part which, for three consecutive years, 
                has exceeded the State's definition of adequate 
                progress as defined in section 
                1111(b)(2)(A)(i), and, any school in which--
                          [(i) virtually all students have met 
                        the State's advanced level of student 
                        performance; and
                          [(ii) equity in participation and 
                        achievement of students by sex has been 
                        achieved or significantly improved.
                  [(B) Schools designated under this paragraph 
                may serve as models and provide support to 
                other schools, especially schoolwide programs 
                and schools in school improvement, to assist 
                such schools in meeting the State's student 
                performance standards.
                  [(C) States shall use funds reserved under 
                section 1003(a) and funds made available under 
                section 1002(f) to allow schools identified 
                under this paragraph to carry out the 
                activities described in subparagraph (B) and 
                may use such funds to provide awards to such 
                schools to further such school's education 
                programs under this part, provide additional 
                incentives for continued success, and reward 
                individuals or groups in the school for 
                exemplary performance.
                  [(D) A local educational agency may also 
                recognize the success of a distinguished school 
                by providing additional institutional and 
                individual rewards, such as greater 
                decisionmaking authority at the school building 
                level, increased access to resources or 
                supplemental services such as summer programs 
                that may be used to sustain or increase 
                success, additional professional development 
                opportunities, opportunities to participate in 
                special projects, and individual financial 
                bonuses.
          [(3) Distinguished educators.--
                  [(A) In order to provide assistance to 
                schools and local educational agencies 
                identified as needing improvement and schools 
                participating in schoolwide programs, each 
                State, in consultation with local educational 
                agencies and using funds reserved under section 
                1003(a) and made available under section 
                1002(f), shall establish a corps of 
                distinguished educators.
                  [(B) When possible, distinguished educators 
                shall be chosen from schools served under this 
                part that have been especially successful in 
                enabling children to meet or make outstanding 
                progress toward meeting the State's student 
                performance standards, such as the schools 
                described in paragraph (2).
                  [(C) Distinguished educators shall provide, 
                as part of the statewide system, intensive and 
                sustained assistance to the schools and local 
                educational agencies farthest from meeting the 
                State's student performance standards and to 
                schoolwide programs as such programs develop 
                and implement their plans, including 
                participation in the support teams described in 
                paragraph (1).
  [(d) Implementation.--In order to implement this section 
funds reserved under section 1003(a) and funds made available 
under section 1002(f) may be used by a State for release time 
for teachers and administrators, travel, training, and other 
related costs.
  [(e) Alternatives.--The State may devise additional 
approaches to providing the assistance described in paragraphs 
(1) and (3) of subsection (c), such as providing assistance 
through institutions of higher education and educational 
service agencies or other local consortia, and the State may 
seek approval from the Secretary to use funds reserved under 
section 1003 and funds made available under section 1002(f) for 
such approaches as part of the State plan.]

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

  (a) System for Support.--Each State educational agency 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 content standards and student performance 
standards.
  (b) Priorities.--In carrying out this section, a State 
educational agency 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 section 1116(b)(8) and (9);
          (2) second, provide support and assistance to other 
        local educational agencies identified as in need of 
        improvement under section 1116; 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 educational agency--
          (1) shall use funds reserved under section 1002(f); 
        and
          (2) may use State administrative funds authorized 
        under section 1002(h) for such purpose.
  (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 the State may seek 
approval from the Secretary to use funds made available under 
section 1002(h) for such approaches as part of the State plan.

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 50 
                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) Schools 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 eligible for free and reduced priced 
                lunches under the National School Lunch Act.

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] 
        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) * * *

           *       *       *       *       *       *       *

                  [(E) conduct, with the involvement of 
                parents, an annual evaluation of the content 
                and effectiveness of the parental involvement 
                policy developed under this section--
                          [(i) to determine the effectiveness 
                        of the policy in increasing the 
                        participation of parents; and
                          [(ii) to identify barriers to greater 
                        participation by parents in activities 
                        authorized by this section, giving 
                        particular attention to parents who are 
                        economically disadvantaged, are 
                        disabled, have limited English 
                        proficiency, have limited literacy, or 
                        are of any racial or ethnic minority 
                        background; and
                  [(F) use the findings of the evaluations 
                described in subparagraph (E) in designing 
                strategies for school improvement and revising, 
                if necessary, the parental involvement policies 
                described in this subsection and subsection 
                (b)(1).]
                  (E) conduct, with the involvement of parents, 
                an annual evaluation of the content and 
                effectiveness of the parental involvement 
                policy in improving the academic quality of the 
                schools served under this part;
                  (F) involve parents in the activities of the 
                schools served under this part; and
                  (G) promote consumer friendly environments at 
                the local educational agency and schools served 
                under this part.
          (3) Reservation.--(A) * * *

           *       *       *       *       *       *       *

          (C) Not less than 90 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 that they can 
        understand. Such policy shall be updated periodically 
        to meet the changing needs of parents and the school.

           *       *       *       *       *       *       *

  (c) Policy Involvement.--Each school served under this part 
shall--
          (1) * * *

           *       *       *       *       *       *       *

          (4) provide parents of participating children--
                  (A) timely information about programs under 
                this part;
                  (B) school [performance profiles required 
                under section 1116(a)(3)] school reports 
                required under section 1111 and their child's 
                individual student assessment results, 
                including an interpretation of such results, as 
                required under section 1111(b)(3)(H);
                  (C) a description and explanation of the 
                curriculum in use at the school, the forms of 
                assessment used to measure student progress, 
                and the proficiency levels students are 
                expected to meet;
                  (D) notice of the schools' identification as 
                a school in school improvement under section 
                1116(b), if applicable, and a clear explanation 
                of what such identification means;
                  (E) notice of the corrective action that has 
                been taken against the school under section 
                1116(b)(9) and 1116(c)(9), if applicable, and a 
                clear explanation of what such action means;
                  [(D)] (F) opportunities for regular meetings 
                to formulate suggestions, share experiences 
                with other parents, and participate as 
                appropriate in decisions relating to the 
                education of their children if such parents so 
                desire; and
                  [(E)] (G) timely responses to parents' 
                suggestions under subparagraph [(D)] (F); and

           *       *       *       *       *       *       *

  [(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 National 
        Education Goals, the State's content standards and 
        State student performance standards, the provisions of 
        section 1111(b)(8), State and local 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 as well as information on 
        how parents can participate in decisions relating to 
        the education of their children;
          [(2) shall provide materials and training, such as--
                  [(A) coordinating necessary literacy training 
                from other sources to help parents work with 
                their children to improve their children's 
                achievement; and
                  [(B) 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 home and school;
          [(4) shall coordinate and integrate parent 
        involvement programs and activities with Head Start, 
        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 develop appropriate roles for community-
        based organizations and businesses in parent 
        involvement activities, including providing information 
        about opportunities for organizations and businesses to 
        work with parents and schools, and encouraging the 
        formation of partnerships between elementary, middle, 
        and secondary schools and local businesses that include 
        a role for parents;
          [(6) shall conduct other activities, as appropriate 
        and feasible, such as parent resource centers and 
        providing opportunities for parents to learn about 
        child development and child rearing issues beginning at 
        the birth of a child, that are designed to help parents 
        become full partners in the education of their 
        children;
          [(7) shall ensure, to the extent possible, that 
        information related to school and parent programs, 
        meetings, and other activities is sent to the homes of 
        participating children in the language used in such 
        homes;
          [(8) 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;
          [(9) 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;
          [(10) 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;
          [(11) may train and support parents to enhance the 
        involvement of other parents;
          [(12) may arrange meetings at a variety of times, 
        such as in the mornings and evenings, in order to 
        maximize the opportunities for parents to participate 
        in school related activities;
          [(13) 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;
          [(14) may adopt and implement model approaches to 
        improving parental involvement, such as Even Start; and
          [(15) shall provide such other reasonable support for 
        parental involvement activities under this section as 
        parents may request.
  [(f) Accessibility.--In carrying out the parental involvement 
requirements of this part, local educational agencies and 
schools, to the extent practicable, shall provide full 
opportunities for the participation of parents with limited 
English proficiency or with disabilities, including providing 
information and school profiles in a language and form such 
parents understand.]
  (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 content 
        standards and State student performance standards, the 
        provisions of section 1111(b)(8), State and local 
        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 as well as 
        information on how parents can participate in decisions 
        relating to the education of their children;
          (2) shall provide materials and training, such as--
                  (A) coordinating necessary literacy training 
                from other sources to help parents work with 
                their children to improve their children's 
                achievement; and
                  (B) 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 home 
        and school;
          (4) shall coordinate and integrate parent involvement 
        programs and activities with Head Start, 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 conduct other activities, as appropriate 
        and feasible, such as parent resource centers and 
        opportunities for parents to learn how to become full 
        partners in the education of their children;
          (6) shall ensure, to the extent possible, that 
        information related to school and parent programs, 
        meetings, and other activities is sent to the homes of 
        participating children in the language used in such 
        homes;
          (7) shall provide such other reasonable support for 
        parental involvement activities under this section as 
        parents may request;
          (8) shall expand the use of electronic communications 
        among teachers, students, and parents, such as through 
        the use of websites and e-mail communications;
          (9) 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;
          (10) 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;
          (11) 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;
          (12) may train and support parents to enhance the 
        involvement of other parents;
          (13) may arrange meetings at a variety of times, such 
        as in the mornings and evenings, in order to maximize 
        the opportunities for parents to participate in school 
        related activities;
          (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;
          (15) may adopt and implement model approaches to 
        improving parental involvement, such as Even Start;
          (16) may establish a districtwide parent advisory 
        council to advise on all matters related to parental 
        involvement in programs supported under this part; and
          (17) may develop appropriate roles for community-
        based organizations and businesses in parent 
        involvement activities, including providing information 
        about opportunities for organizations and businesses to 
        work with parents and schools, and encouraging the 
        formation of partnerships between elementary, middle, 
        and secondary schools and local businesses that include 
        a role for parents.
  (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 undersection 1111 in a format, and to the 
extent practicable, in a language such parents understand.

           *       *       *       *       *       *       *


[SEC. 1119. PROFESSIONAL DEVELOPMENT.

  [(a) Program Requirements.--
          [(1) In general.--Each local educational agency 
        receiving assistance under this part shall provide 
        high-quality professional development that will improve 
        the teaching of the academic subjects, consistent with 
        the State content standards, in order to enable all 
        children to meet the State's student performance 
        standards.
          [(2) Program design.--Such professional development 
        activities shall be designed by principals, teachers, 
        and other school staff in schools receiving assistance 
        under this part.
  [(b) Professional Development Activities.--
          [(1) Required activities.--Such professional 
        development activities shall--
                  [(A) support instructional practices that are 
                geared to challenging State content standards 
                and create a school environment conducive to 
                high achievement in the academic subjects;
                  [(B) support local educational agency plans 
                under section 1112 and school plans under 
                section 1114;
                  [(C) draw on resources available under this 
                part, title III of the Goals 2000: Educate 
                America Act, title II of this Act, and from 
                other sources;
                  [(D) where appropriate, as determined by the 
                local educational agency, include strategies 
                for developing curricula and teaching methods 
                that integrate academic and vocational 
                instruction (including applied learning and 
                team teaching strategies); and
                  [(E) include strategies for identifying and 
                eliminating gender and racial bias in 
                instructional materials, methods, and 
                practices.
          [(2) Optional activities.--Such professional 
        development activities may include--
                  [(A) instruction in the use of assessments;
                  [(B) instruction in ways that teachers, 
                principals, pupil services personnel, and 
                school administrators may work more effectively 
                with parents;
                  [(C) 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;
                  [(D) instruction in the use of technology;
                  [(E) 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;
                  [(F) instruction in ways to teach special 
                needs children;
                  [(G) instruction in gender-equitable 
                education methods, techniques, and practices;
                  [(H) joint professional development 
                activities involving programs under this part, 
                Head Start, Even Start, or State-run preschool 
                program personnel; and
                  [(I) instruction in experiential-based 
                teaching methods such as service learning.
  [(c) Program Participation.--Each local educational agency 
receiving assistance under this part is encouraged to 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.
  [(d) Parental Participation.--Parents may participate in 
professional development activities under this part if the 
school determines that parental participation is appropriate.
  [(e) 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.
  [(f) Effective Teaching Strategies.--Knowledge of effective 
teaching strategies that is gained through professional 
development activities under this section may be shared with 
teachers who are not participating in targeted assistance 
programs under this part.
  [(g) Combinations of Funds.--Funds provided under this part 
that are used for professional development purposes may 
becombined with funds provided under title II of this Act, title III of 
the Goals 2000: Educate America Act, and other sources.
  [(h) State Review.--
          [(1) In general.--The State educational agency shall 
        review the local educational agency's plan under 
        section 1112(b) to determine if such agency's 
        professional development activities--
                  [(A) are tied to challenging State student 
                content and student performance standards;
                  [(B) reflect research on teaching and 
                learning where possible;
                  [(C) are designed to have a positive impact 
                on the teacher's performance in the classroom;
                  [(D) contribute to continuous improvement in 
                the classroom or throughout the school;
                  [(E) include methods to teach children with 
                special needs;
                  [(F) are developed with the extensive 
                participation of teachers; and
                  [(G) include gender-equitable education 
                methods, techniques, and practices.
          [(2) Technical assistance.--If a local educational 
        agency's plan for professional development does not 
        include the activities described in paragraph (1), the 
        State educational agency shall provide technical 
        assistance to such local educational agencies to enable 
        such agencies to make progress toward inclusion of such 
        activities in the local educational agency's 
        professional development activities.
          [(3) 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(d)(6).
  [(i) Instructional Aides.--
          [(1) In general.--If a local educational agency uses 
        funds received under this part to employ instructional 
        aides, the local educational agency shall ensure that 
        such aides--
                  [(A) possess the knowledge and skills 
                sufficient to assist participating children in 
                meeting the educational goals of this part;
                  [(B) have a secondary school diploma, or its 
                recognized equivalent, or earn either within 
                two years of employment, except that a local 
                educational agency may employ an instructional 
                aide that does not meet the requirement of this 
                subparagraph if such aide possesses proficiency 
                in a language other than English that is needed 
                to enhance the participation of children in 
                programs under this part; and
                  [(C) are under the direct supervision of a 
                teacher who has primary responsibility for 
                providing instructional services to eligible 
                children.
          [(2) Inclusion in activities.--Each local educational 
        agency receiving funds under this part, when feasible, 
        shall include instructional aides in professional 
        development activities.]

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 Student Results Act of 1999 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, 2003. 
        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 one year or more after the 
        effective date of the Student Results Act of 1999 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 
                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 one year 
after the effective date of the Student Results Act of 1999 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--
                  (A) 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
                  (B) 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 
                assessment, the ability effectively to 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 Student Results Act of 
                1999, 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) or 
                (c).
                  (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.
          (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 eligible children (as 
defined in section 1115(b)(1)(B)) through improved teacher 
quality.
  (b) Professional Development Activities.--
          (1) Required activities.--Professional development 
        activities under this section shall--
                  (A) support professional development 
                activities that give teachers, principals, and 
                administrators the knowledge and skills to 
                provide students with the opportunity to meet 
                challenging State or local content standards 
                and student performance standards;
                  (B) support the recruiting, hiring, and 
                training of fully qualified teachers, including 
                teachers fully qualified through State and 
                local alternative routes;
                  (C) advance teacher understanding of 
                effective instructional strategies based on 
                scientifically-based research for improving 
                student achievement, at a minimum, in reading 
                or language arts and mathematics;
                  (D) be directly related to the curriculum and 
                content areas in which the teacher provides 
                instruction;
                  (E) be designed to enhance the ability of a 
                teacher to understand and use the State's 
                standards for the subject area in which the 
                teacher provides instruction;
                  (F) be tied to scientifically based research 
                demonstrating the effectiveness of such 
                professional development activities or programs 
                in increasing student achievement or 
                substantially increasing the knowledge and 
                teaching skills of teachers;
                  (G) be of sufficient intensity and duration 
                (not to include 1-day or short-term workshops 
                and conferences) to have a positive and lasting 
                impact on the teacher's performance in the 
                classroom, except that this paragraph shall not 
                apply to an activity if such activity is one 
                component of a long-term comprehensive 
                professional development plan established by 
                the teacher and the teacher's supervisor based 
                upon an assessment of their needs, their 
                students' needs, and the needs of the local 
                educational agency;
                  (H) be developed with extensive participation 
                of teachers, principals, parents, and 
                administrators of schools to be served under 
                this part;
                  (I) to the extent appropriate, provide 
                training for teachers in the use of technology 
                so that technology and its applications are 
                effectively used in the classroom to improve 
                teaching and learning in the curriculum and 
                academic content areas in which the teachers 
                provide instruction; and
                  (J) 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.
          (2) Optional activities.--Such professional 
        development activities may include--
                  (A) instruction in the use of data and 
                assessments to inform and instruct classroom 
                practice;
                  (B) instruction in ways that teachers, 
                principals, pupil services personnel, and 
                school administrators may work more effectively 
                with parents;
                  (C) 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;
                  (D) 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;
                  (E) instruction in ways to teach special 
                needs children;
                  (F) joint professional development activities 
                involving programs under this part, Head Start, 
                Even Start, or State-run preschool program 
                personnel;
                  (G) instruction in experiential-based 
                teaching methods such as service or applied 
                learning; and
                  (H) mentoring programs focusing on changing 
                teacher behaviors and practices to help novice 
                teachers, including teachers who are members of 
                a minority group, develop and gain confidence 
                in their skills, to increase the likelihood 
                that they will continue in the teaching 
                profession, and generally to improve the 
                quality of their teaching.
  (c) 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.
  (d) Parental Participation.--Parents may participate in 
professional development activities under this part if the 
school determines that parental participation is appropriate.
  (e) 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.
  (f) Consolidation of Funds.--Funds provided under this part 
that are used for professional development purposes may be 
consolidated with funds provided under title II of this Act and 
other sources.
  (g) Definition.--The term ``fully qualified'' has the same 
meaning given such term in section 1610.
  (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(c)(9).

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).
          [(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.
          [(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.
          [(5) Provision of services.--The local educational 
        agency may provide such services 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 and where the services will be 
                provided;
                  [(D) how the services will be assessed; and
                  [(E) the size and scope of the equitable 
                services to be provided to the eligible private 
                school children, and what is the proportion of 
                funds allocated under subsection (a)(4) for 
                such services.
          [(2) Timing.--Such consultation 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.
          [(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.]
  (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 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 provide to the State educational agency, and 
        maintain in its records, 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 the local 
        educational agencies shall be provided to the State, 
        and the local educational agency shall forward the 
        documentation provided in subsection (b)(3) to the 
        State.

           *       *       *       *       *       *       *

  [(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; and
          [(2) arrange for the provision of services to such 
        children through arrangements that shall be subject to 
        the requirements of this section and sections 14505 and 
        14506.
  [(e) Capital Expenses.--
          [(1) In general.--(A) From the amount appropriated 
        for this subsection under section 1002(e) 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.
          [(4) Definition.--For the purpose of this subsection, 
        the term ``capital expenses'' means--
                  [(A) expenditures for noninstructional goods 
                and services, such as the purchase, lease, or 
                renovation of real and personal property, 
                including mobile educational units and leasing 
                of neutral sites or spaces;
                  [(B) insurance and maintenance costs;
                  (D) other comparable goods and services.
                  [(C) transportation; and
                  [(D) other comparable goods and services.]
  (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 14505 and 
        14506; and
          (3) in making the determination, consider one or more 
        factors, including the quality, size, scope, and 
        location of the program and the opportunity of eligible 
        children to participate.

           *       *       *       *       *       *       *


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) [to the extent feasible and 
appropriate to the circumstances, including the extent to which 
such local educational agency is able to secure the cooperation 
of parents and local Head Start agencies and, if feasible, 
other early childhood development programs.] with local Head 
Start agencies, and if feasible, other early childhood 
development programs.
  (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, serving children 
who will attend the schools of such agency, including--
          (1) * * *

           *       *       *       *       *       *       *

          (3) conducting meetings involving parents, 
        kindergarten or elementary school teachers, and Head 
        Start teachers or, if appropriate, teachers from other 
        early childhood development programs, to discuss the 
        developmental and other needs of individual children; 
        [and]
          (4) organizing and participating in joint transition 
        related training of school staff, Head Start 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.

           *       *       *       *       *       *       *


                         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 on the basis of their 
        respective need for such assistance according to such 
        criteria as the Secretary determines will best carry 
        out the purpose of this part; and
          [(2) the Secretary of the Interior in the amount 
        necessary to make payments pursuant to subsection (c).
  [(b) Assistance to the Outlying Areas.--
          [(1) In general.--From amounts made available under 
        subsection (a) in each fiscal year the Secretary shall 
        make grants to local educational agencies in the 
        outlying areas (other than the outlying areas assisted 
        under paragraph (3)).
          [(2) Competitive grants.--(A) The Secretary shall 
        reserve $5,000,000 from the amounts made available 
        under subsection (a) in each fiscal year to award 
        grants on a competitive basis, to local educational 
        agencies in the Federated States of Micronesia, the 
        Republic of the Marshall Islands, and the Republic of 
        Palau. The Secretary shall award such grants according 
        to the recommendations of the Pacific Region 
        Educational Laboratory which shall conduct a 
        competition for such grants.
          [(B) Except as provided in subparagraph (D), grant 
        funds awarded under this part only may be used for 
        programs described in this Act, including teacher 
        training, curriculum development, instructional 
        materials, or general school improvement and reform.
          [(C) Grant funds awarded under this paragraph only 
        may be used to provide direct educational services.
          [(D) The Secretary may provide 5 percent of the 
        amount made available for grants under this paragraph 
        to pay the administrative costs of the Pacific Region 
        Educational Laboratory regarding activities assisted 
        under this paragraph.
  [(c) Allotment to the Secretary of the Interior.--
          [(1) In general.--The amount 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. ALLOCATIONS TO STATES.

  [(a) In General.--
          [(1) Fiscal year 1995.--For fiscal year 1995, 
        appropriations for this part shall be allocated 
        according to the provisions of sections 1005, except 
        subsection (a)(3), and 1006, part A of chapter 1 of 
        title I, Elementary and Secondary Education Act of 
        1965, as in effect on September 30, 1994, except that 
        the State minimum for section 1005 shall be the lesser 
        of 0.25 percent of total appropriations or the average 
        of 0.25 percent of total appropriations and 150 percent 
        of the national average grant per child counted for 
        grants under section 1005 multiplied by the State's 
        number of children counted for such grants, and for 
        grants under section 1006, the State minimum shall be 
        the lesser of--
                  [(A) 0.25 percent of total appropriations; 
                and
                  [(B) the average of--
                          [(i) 0.25 percent of total 
                        appropriations; and
                          [(ii) the greater of 150 percent of 
                        the national average grant per child 
                        counted for grants under such section 
                        1006 multiplied by the State total 
                        number of such children, or $340,000.
          [(2) Succeeding fiscal years.--For fiscal years 1996 
        through 1999, an amount of the appropriations for this 
        part equal to the appropriation for fiscal year 1995 
        for section 1005, shall be allocated in accordance with 
        section 1124, and an amount equal to the appropriation 
        for fiscal year 1995 for section 1006 shall be 
        allocated in accordance with section 1124A. Any 
        additional appropriations under section 1002(a) for any 
        fiscal year, after application of the preceding 
        sentence, 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) In general.--For fiscal year 1995, 
        notwithstanding subsection (b) and without regard to 
        amounts available for delinquent children under subpart 
        2 of part D, the amount made available to each local 
        educational agency under such section 1005 shall be at 
        least 85 percent of the amount such local educational 
        agency received for the preceding year under such 
        section 1005.
          [(2) Fiscal year 1996.--Notwithstanding subsection 
        (b) and without regard to amounts available for 
        delinquent children under subpart 2 of part D, for 
        fiscal year 1996 the total amount made available to 
        each local educational agency under each of sections 
        1124 and 1124A for any fiscal year shall be at least 
        100 percent of the total amount such local educational 
        agency was allocated under such sections (or their 
        predecessor authorities) for the preceding fiscal year.
          [(3) Fiscal years 1997-1999.--For fiscal years 1997 
        through 1999, notwithstanding subsection (b) and 
        without regard to amounts available for delinquent 
        children under subpart 2 of part D, the amount made 
        available to each local educational agency under each 
        of sections 1124 and 1125 shall be at least 95 percent 
        of the previous year's amount if the number of children 
        counted for grants under section 1124 is at least 30 
        percent of the total number of children aged 5 to 17 
        years, inclusive, in the local educational agency, 90 
        percent of the previous year amount if this percentage 
        is between 15 percent and 30 percent, and 85 percent if 
        this percentage is below 15 percent. For fiscal years 
        1997 and 1998, in calculating grants on the basis of 
        population data for counties, the Secretary shall apply 
        the hold-homeless percentages in the preceding sentence 
        to counties. For fiscal years 1996 through 1998, if the 
        Secretary's allocation for a county is not sufficient 
        to meet the hold-harmless requirements of this 
        paragraph for every local educational agency within 
        that county, then the State educational agency shall 
        reallocate funds proportionately from all other local 
        educational agencies in the State that are receiving 
        funds in excess of the hold-harmless amounts specified 
        in this paragraph.
  [(d) Ratable Reductions.--
          [(1) In general.--If the sums made available under 
        this part for any fiscal year are insufficient to pay 
        the full amounts that all States are eligible to 
        receive under subsection (c) for such year, the 
        Secretary shall ratably reduce such amounts for such 
        year.
          [(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for 
        such fiscal year, amounts that were reduced under 
        paragraph (1) shall be increased on the same basis as 
        such amounts reduced.
  [(e) Definition.--For the purpose of this section and 
sections 1124 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.--The grant which a local educational agency in a 
        State is eligible to receive under this subpart for a 
        fiscal year shall (except as provided in section 1126), 
        be determined by multiplying the number of children 
        counted under subsection (c) by 40 percent of the 
        amount determined under the next sentence. The amount 
        determined under this sentence shall be the average per 
        pupil expenditure in the State except that--
                  [(A) if the average per pupil expenditure in 
                the State is less than 80 percent of the 
                average per pupil expenditure in the United 
                States, such amount shall be 80 percent of the 
                average per pupil expenditure in the United 
                States; or
                  [(B) if the average per pupil expenditure in 
                the State is more than 120 percent of the 
                average per pupil expenditure in the United 
                States, such amount shall be 120 percent of the 
                average per pupil expenditure in the United 
                States.
          [(2) Basis for calculating grants.--For fiscal years 
        1995 through 1998, grants shall be calculated by the 
        Secretary on the basis of the number of children 
        counted under subsection (c) for counties, and State 
        educational agencies shall suballocate county amounts 
        to local educational agencies, in accordance with 
        regulations published by the Secretary. In any State in 
        which a large number of local educational agencies 
        overlap county boundaries, the State educational agency 
        may apply to the Secretary for authority during any 
        particular fiscal year to make the allocations under 
        this part (other than section 1124A) directly to local 
        educational agencies without regard to the counties. If 
        the Secretary approves an application of a State 
        educational agency for a particular year under this 
        subparagraph, the State educational agency shall 
        provide assurances that--
                  [(A) such allocations will be made using 
                precisely the same factors for determining a 
                grant as are used under this part;
                  [(B) such allocations will be made using 
                alternative data approved by the Secretary that 
                the State determines best reflects the 
                distribution of children in poor families and 
                is adjusted to be equivalent in proportion to 
                the number of children determined in accordance 
                with subsection (c); or
                  [(C) such allocations will be made using data 
                that the State educational agency submits to 
                the Secretary for approval that more accurately 
                target poverty.
        In addition, the State educational agency shall provide 
        assurances that a procedure will be established through 
        which local educational agencies dissatisfied with the 
        determinations made by the State educational agency may 
        appeal directly to the Secretary for a final 
        determination. Beginning in fiscal year 1999, grants 
        shall be calculated by the Secretary on the basis of 
        population data compiled for local educational 
        agencies, unless the Secretary and the Secretary of 
        Commerce determine that use of the updated population 
        data would be inappropriate or unreliable taking into 
        consideration the recommendations of the study to be 
        conducted by the National Academy of Sciences. If the 
        Secretary and the Secretary of Commerce determine that 
        some or all of the data referred to in this paragraph 
        are inappropriate or unreliable, the Secretaries shall 
        jointly issue a report setting forth their reasons in 
        detail. In years when grants are calculated by the 
        Secretary on the basis of local educational agency 
        data, for each local educational agency serving an area 
        with a total population of at least 20,000 persons, the 
        grant under this section shall be the amount determined 
        by the Secretary. For local educational agencies 
        serving areas with total populations of fewer than 
        20,000 persons, the State educational agency may 
        either--
                  [(i) distribute to such local educational 
                agencies grants under this section equal to the 
                amounts determined by the Secretary; and
                  [(ii) use an alternative method, approved by 
                the Secretary, to distribute the share of the 
                State's total grants under this section that is 
                based on local educational agencies with total 
                populations of fewer than 20,000 persons. Such 
                an alternative method of distributing grants 
                under this section among a State's local 
                educational agencies serving areas with total 
                populations of fewer than 20,000 persons shall 
                be based upon population data that the State 
                educational agency determines best reflect the 
                current distribution of children in poor families 
                among the State's local educational agencies serving 
                areas with total populations of fewer than 20,000 
                persons. If a local educational agency serving an area 
                with total population of less than 20,000 persons is 
                dissatisfied with the determination of its grant by 
                the State education agency, then such local educational 
                agency may appeal this determination to the Secretary. 
                The Secretary must respond to this appeal within 45 
                days of receipt.
          [(3) Puerto rico.--For each fiscal year, the 
        Secretary shall determine the percentage which the 
        average per pupil expenditure in the Commonwealth of 
        Puerto Rico is of the lowest average per pupil 
        expenditure of any of the 50 States. The grant which 
        the Commonwealth of Puerto Rico shall be eligible to 
        receive under this section for a fiscal year shall be 
        the amount arrived at by multiplying the number of 
        children counted under subsection (c) for the 
        Commonwealth of Puerto Rico by the product of--
                  [(A) the percentage determined under the 
                preceding sentence; and
                  [(B) 32 percent of the average per pupil 
                expenditure in the United States.
          [(4) Definition.--For purposes of this subsection, 
        the term ``State'' does not include Guam, American 
        Samoa, the Virgin Islands, the Northern Mariana 
        Islands, and Palau.
  [(b) Minimum Number of Children To Qualify.--Subject to the 
succeeding sentence, a local educational agency shall be 
eligible for a basic grant for a fiscal year under this subpart 
only if the number of children counted under subsection (c) in 
the school district of such local educational agency is at 
least 10. Beginning in fiscal year 1996, no local educational 
agency shall be eligible for a grant under this section if the 
number of children counted for grants under this section is 
equal to 2 percent or less of the total school age population 
in the local educational agency. For fiscal years 1996 through 
1998, grants not made as a result of applying the preceding 
sentence 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.
  [(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 aged 5 to 17, 
                inclusive, in the school district of such 
                agency from families above the poverty level as 
                determined under paragraph (5); and
                  [(C) the number of children 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.
          [(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. For 
        fiscal year 1999 and beyond, the District of Columbia 
        and the Commonwealth of Puerto Rico shall be treated as 
        individual local educational agencies. If a local 
        educational agency contains two 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 1997 and 
        every 2 years thereafter, the Secretary shall use 
        updated data on the number of children, aged 5 to 17, 
        inclusive, from families below the poverty level for 
        counties or local educational agencies, published by 
        the Department of Commerce, unless the Secretary and 
        the Secretary of Commerce determine that use of the 
        updated population data would be inappropriate or 
        unreliable, taking into consideration the 
        recommendations of the study to be conducted by the 
        National Academy of Sciences. 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 jointly issue a report setting 
        forth their reasons in detail. 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) Study.--(A) The Secretary of Education shall, 
        within 30 days after the date of enactment of the 
        Improving America's School's Act of 1994, contract with 
        the National Academy of Sciences (hereafter in this 
        section referred to as the ``Academy'') to study the 
        program to produce intercensal poverty data for small 
        geographic areas and certain age cohorts being 
        developed by the Bureau of the Census.
          [(B) In conducting its study, the Academy shall 
        consider such matters as--
                  [(i) the methodology used to produce and 
                publish intercensal poverty data, and possible 
                alternative methods to improve the usefulness 
                of the data for Federal program purposes;
                  [(ii) the availability of alternative 
                indicators of poverty for small geographic 
                areas, against which the poverty data produced 
                and published by the Bureau of the Census could 
                be compared;
                  [(iii) the reliability of the poverty data 
                produced and published by the Bureau of the 
                Census, particularly for less populous 
                geographic areas;
                  [(iv) the reliability of intercensal poverty 
                data produced and published by the Bureau of 
                the Census, as compared over time to similar 
                data produced by the Bureau of the Census 
                during the most recent decennial census; and
                  [(v) the usefulness of poverty data produced 
                and published by the Bureau of the Census for 
                Federal programs that allocate funds to State 
                and sub-State areas based, in whole or in part, 
                on such data.
          [(C) The Academy shall submit to the Secretary and 
        the Secretary of Commerce, as well as to the Committee 
        on Education and Labor and the Committee on Post Office 
        and Civil Service of the House of Representatives and 
        the Committee on Labor and Human Resources and the 
        Committee on Governmental Affairs of the Senate--
                  [(i) not later than 18 months after the date 
                on which a contract is entered into under 
                subsection (a), and not later than every 18 
                months thereafter, such interim reports on the 
                Academy's activities under this Act that the 
                Academy deems appropriate, including a detailed 
                statement of the Academy's findings and 
                conclusions with respect to any poverty data 
                which the Bureau of the Census publishes and 
                produces, within 90 days of such publication; 
                and
                  [(ii) not later than December 31, 1998, a 
                final report which shall include a more 
                detailed statement of the Academy's findings 
                and conclusions with respect to the use of any 
                intercensal poverty data produced and published 
                by the Bureau of the Census as the basis for 
                allocating Federal funds under this Act.
          [(D) Of the funds appropriated under section 1002(f) 
        of this Act, the Secretary shall use such sums as are 
        necessary in each of fiscal years 1995, 1996, 1997, 
        1998, and 1999 to carry out the provisions of this 
        paragraph.
          [(5) Other children to be counted.--For purposes of 
        this section, the Secretary shall determine the number 
        of children aged 5 to 17, inclusive, from families 
        above the poverty level on the basis of the number of 
        such children from families receiving an annual income, 
        in excess of the current criteria of poverty, from 
        payments under a State program funded under part A of 
        title IV of the Social Security Act; 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 of such ages 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.
          [(6) 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. For purposes of this section, the 
        Secretary shall consider all children who are in 
        correctional institutions to be living in institutions 
        for delinquent children.
  [(d) State Minimum.--Notwithstanding subsection (b)(1) or (d) 
of 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, the Commonwealth of the Northern Mariana 
        Islands, and Palau, which is eligible for a grant under 
        this part for any fiscal year shall be eligible for an 
        additional grant under this section for that fiscal 
        year if--
                  [(i) the number of children counted under 
                section 1124(c) in the county (for fiscal years 
                1996 through 1998), or local educational agency 
                (for fiscal years beginning with 1999) for the 
                fiscal year exceeds 6,500; or
                  [(ii) the number of children counted under 
                section 1124(c) exceeds 15 percent of the total 
                number of children aged 5 to 17, inclusive, in 
                the county (for fiscal years 1996 through 
                1998), or local educational agency (for fiscal 
                years beginning with 1999) in that fiscal year.
          [(B) Notwithstanding such subsections (b)(1) and (d) 
        of 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 
                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) Suballocation.--For fiscal years 1996 through 
        1998, county amounts shall be suballocated to local 
        educational agencies meeting the criteria of paragraph 
        (1)(A) by State educational agencies, in accordance 
        with regulations published by the Secretary. For fiscal 
        years 1995 through 1998, grants shall be calculated by 
        the Secretary 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 published by the Secretary. In any State in 
        which a large number of local educational agencies 
        overlap county boundaries, the State educational agency 
        may apply to the Secretary for authority during any 
        particular fiscal year to make the allocations under 
        this part (other than this section) directly to local 
        educational agencies without regard to the counties. If 
        the Secretary approves an application of a State 
        educational agency for a particular year under this 
        paragraph, the State educational agency shall provide 
        assurances that--
                  [(A) such allocations will be made using 
                precisely the same factors for determining a 
                grant as are used under this part;
                  [(B) such allocations will be made using 
                alternative data approved by the Secretary that 
                the State determines best reflects the 
                distribution of children in poor families and 
                is adjusted to be equivalent in proportion to 
                the number of children determined in accordance 
                with section 1124(c); or
                  [(C) such allocations will be made using data 
                that the State educational agency submits to 
                the Secretary for approval that more accurately 
                target poverty.
        In addition, the State educational agency shall provide 
        assurances that a procedure will be established through 
        which local educational agencies dissatisfied with the 
        determinations made by the State educational agency may 
        appeal directly to the Secretary for a final 
        determination. A State may reserve not more than 2 
        percent of its allocations in fiscal years 1996 through 
        1998 under this section for the purpose of making 
        grants to local educational agencies that meet the 
        criteria of clause (i) or (ii) of paragraph (1)(A), but 
        are in ineligible counties. For fiscal years beginning 
        with 1999, for each local educational agency serving an 
        area with a total population of at least 20,000 
        persons, the grant under this section shall be the 
        amount determined by the Secretary. For local 
        educational agencies serving areas with total 
        populations of fewer than 20,000 persons, the State 
        educational agency may either (i) distribute to such 
        local educational agencies grants under this section 
        equal to the amounts determined by the Secretary; or 
        (ii) use an alternative method, approved by the 
        Secretary, to distribute the share of the State's total 
        grants under this section that is based on local 
        educational agencies with total populations of fewer 
        than 20,000 persons. Such an alternative method of 
        distributing grants under this section among a State's 
        local educational agencies serving areas with total 
        populations of fewer than 20,000 persons shall be based 
        upon population data that the State educational agency 
        determines best reflects the current distribution of 
        children in poor families among the State's local 
        educational agencies serving areas with total 
        populations of fewer than 20,000 persons and meeting 
        the eligibility criteria of paragraph (1)(A). If a 
        local educational agency serving an area with total 
        population of less than 20,000 persons is dissatisfied 
        with the determination of its grant by the State 
        educational agency, then such local educational agency 
        may appeal this determination to the Secretary. The 
        Secretary shall respond to this appeal within 45 days 
        of receipt. The Secretary shall consult with the 
        Secretary of Commerce regarding whether available data 
        on population for local educational agencies serving 
        areas with total populations of fewer than 20,000 
        persons are sufficiently reliable to be used to 
        determine final grants to such areas meeting the 
        eligibility criteria of paragraph (1)(A).
  [(b) Reservation of Funds.--Of the total amount of funds 
available for this section and sections 1124 and 1125, an 
amount equal to the appropriation for fiscal year 1995 for 
section 1006 of this Act (as such section was in effect on the 
day preceding the date of enactment of this Act) shall be 
available to carry out this section.
  [(c) Ratable Reduction Rule.--If the sums available under 
subsection (b) for any fiscal year for making payments under 
this section are not sufficient to pay in full the total 
amounts which all States are eligible to receive under 
subsection (a) for such fiscal year, the maximum amounts which 
all States are eligible to receive under subsection (a) for 
such fiscal year shall be ratably reduced. In the case that 
additional funds become available for making such payments for 
any fiscal year during which the preceding sentence is 
applicable, such reduced amounts shall be increased on the same 
basis as they were reduced.
  [(d) 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--
          [(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. 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 the second sentence of 
                subparagraph 1124(a)(1)(A).
          [(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)(3).
  [(c) Weighted Child Count.--
          [(1) Fiscal years 1966-1998.--
                  [(A) In general.--The weighted child count 
                used to determine a county's allocation under 
                this section is the larger of the two 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 12.20 
                                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 
                                12.20 percent, but not more 
                                than 17.70 percent, of such 
                                population, multiplied by 1.75;
                                  [(III) the number of such 
                                children constituting more than 
                                17.70 percent, but not more 
                                than 22.80 percent, of such 
                                population, multiplied by 2.5;
                                  [(IV) the number of such 
                                children constituting more than 
                                22.80 percent, but not more 
                                than 29.70 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  [(V) the number of such 
                                children constituting more than 
                                29.70 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 
                                1,917, inclusive, of the 
                                county's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                  [(II) the number of such 
                                children between 1,918 and 
                                5,938, inclusive, in such 
                                population, multiplied by 1.5;
                                  [(III) the number of such 
                                children between 5,939 and 
                                20,199, inclusive, in such 
                                population, multiplied by 2.0;
                                  [(IV) the number of such 
                                children between 20,200 and 
                                77,999, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  [(V) the number of such 
                                children in excess of 77,999 in 
                                such population, multiplied by 
                                3.0.
                  [(B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor 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) Fiscal years after 1999.--
                  [(A) In general.--For each fiscal year 
                beginning with fiscal year 1999 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 two 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 14.265 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 
                                14.265 percent, but not more 
                                than 21.553 percent, of such 
                                population, multiplied by 1.75;
                                  [(III) the number of such 
                                children constituting more than 
                                21.553 percent, but not more 
                                than 29.223 percent, of such 
                                population, multiplied by 2.5;
                                  [(IV) the number of such 
                                children constituting more than 
                                29.223 percent, but not more 
                                than 36.538 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  [(V) the number of such 
                                children constituting more than 
                                36.538 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 575, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  [(II) the number of such 
                                children between 576 and 1,870, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                  [(III) the number of such 
                                children between 1,871 and 
                                6,910, inclusive, in such 
                                population, multiplied by 2.0;
                                  [(IV) the number of such 
                                children between 6,911 and 
                                42,000, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  [(V) the number of such 
                                children in excess of 42,000 in 
                                such population, multiplied by 
                                3.0.
                  [(B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor 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) Local Educational Agency Allocations.--For fiscal years 
1995 through 1998, grants shall be calculated by the Secretary 
on the basis of the number of children counted under section 
1124 for counties, and State educational agencies shall 
suballocate county amounts to local educational agencies, in 
accordance with regulations published by the Secretary. In any 
State in which a large number of local educational agencies 
overlap county boundaries, the State educational agency may 
apply to the Secretary for authority during any particular 
fiscal year to make the allocations under this part (other than 
section 1124A) directly to local educational agencies without 
regard to the counties. If the Secretary approves an 
application of a State educational agency for a particular year 
under this subparagraph, the State educational agency shall 
provide assurances that--
          [(1) such allocations will be made using precisely 
        the same factors for determining a grant as are used 
        under this part;
          [(2) such allocations will be made using alternative 
        data approved by the Secretary that the State 
        determines best reflects the distribution of children 
        in poor families and is adjusted to be equivalent in 
        proportion to the number of children determined in 
        accordance with section 1124(c); or
          [(3) such allocations will be made using data that 
        the State educational agency submits to the Secretary 
        for approval that more accurately target poverty.
In addition, the State educational agency shall provide 
assurances that a procedure will be established through which 
local educational agencies dissatisfied with the determinations 
made by the State educational agency may appeal directly to the 
Secretary for a final determination. For fiscal years beginning 
in 1999, for each local educational agency serving an area with 
a total population of at least 20,000 persons, the grant under 
this section shall be the amount determined by the Secretary. 
For local educational agencies serving areas with total 
populations of fewer than 20,000 persons, the State educational 
agency may either (1) distribute to such local educational 
agencies grants under this section equal to the amounts 
determined by the Secretary; or (2) use an alternative method, 
approved by the Secretary, to distribute the share of the 
State's total grants under this section that is based on local 
educational agencies with total populations of fewer than 
20,000 persons. Such an alternative method of distributing 
grants under this section among a State's local educational 
agencies serving areas with total populations of fewer than 
20,000 persons shall be based upon population data that the 
State educational agency determines best reflects the current 
distribution of children in poor families among the State's 
local educational agencies serving areas with total populations 
of fewer than 20,000 persons. If a local educational agency 
serving an area with total populations of less than 20,000 
persons is dissatisfied with the determination of its grant by 
the State educational agency, then the local educational agency 
may appeal this determination to the Secretary. The Secretary 
shall respond to this appeal within 45 days of receipt.
  [(e) State Minimum.--Notwithstanding any other provision of 
this section or subsection (b)(1) or (d) of 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 1124(c)(1)(C), the State educational 
        agency shall, if such agency assumes responsibility for 
        the special educational needs of such children, receive 
        the portion of such local educational agency's 
        allocation under sections 1124, 1124A, and 1125 that is 
        attributable to such children.
          [(2) Special rule.--If the State educational agency 
        does not assume such responsibility, any other State or 
        local public agency that does assume such 
        responsibility shall receive that portion of the local 
        educational agency's allocation.
  [(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 two 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 one 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. 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 fiscal years 2000 and 
        2001, the Secretary shall carry out the competition 
        described in paragraph (3), except that the amount 
        reserved to carry out such competition shall not exceed 
        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) Termination of eligibility.--
                Notwithstanding any other provision of law, the 
                freely associated States shall not receive any 
                funds under this part after September 30, 2001.
                  (D) Administrative costs.--The Secretary may 
                provide not more than five percent of the 
                amount reserved for grants under this paragraph 
                to pay the administrative costs of the Pacific 
                Region Educational Laboratory under 
                subparagraph (B).
          (4) Special rule.--The provisions of Public Law 95-
        134, permitting the consolidation of grants by the 
        outlying areas, shall not apply to funds provided to 
        the freely associated States under this section.
  (c) Definitions.--For the purposes of subsection (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 authorized to be 
appropriated to carry out this part for each of fiscal years 
2000 through 2004 (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 1999 plus 42.5 
        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 1999 shall be allocated in 
        accordance with section 1124;
          (2) an amount equal to the amount appropriated to 
        carry out section 1124A for fiscal year 1999 plus 7.5 
        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 1999 shall be allocated in 
        accordance with section 1124A; and
          (3) an amount equal to 50 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 1999 
        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.
          (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 2000, 75.0 percent;
                  (ii) for fiscal year 2001, 77.5 percent;
                  (iii) for fiscal year 2002, 80.0 percent;
                  (iv) for fiscal year 2003, 82.5 percent;
                  (v) for fiscal year 2004 and succeeding 
                fiscal years, 85.0 percent.
          (C) Limitation.--If the application of subparagraph 
        (B) would result in any of the 50 States or the 
        District of Columbia receiving less under this part 
        than 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); and
                  (B) the number of children (determined under 
                paragraph (4) for either the preceding year as 
                described in that paragraph, or for the second 
                preceding year, as the Secretary finds 
                appropriate) 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.
          (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 two 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.--The Secretary 
        shall determine 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 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) but that 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--
          (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 two 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 12.20 
                                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 
                                12.20 percent, but not more 
                                than 17.70 percent, of such 
                                population, multiplied by 1.75;
                                  (III) the number of such 
                                children constituting more than 
                                17.70 percent, but not more 
                                than 22.80 percent, of such 
                                population, multiplied by 2.5;
                                  (IV) the number of such 
                                children constituting more than 
                                22.80 percent, but not more 
                                than 29.70 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  (V) the number of such 
                                children constituting more than 
                                29.70 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 
                                1,917, inclusive, of the 
                                county's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                  (II) the number of such 
                                children between 1,918 and 
                                5,938, inclusive, in such 
                                population, multiplied by 1.5;
                                  (III) the number of such 
                                children between 5,939 and 
                                20,199,
                          (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 14.265 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 
                                14.265 percent, but not more 
                                than 21.553 percent, of such 
                                population, multiplied by 1.75;
                                  (III) the number of such 
                                children constituting more than 
                                21.553 percent, but not more 
                                than 29.223 percent, of such 
                                population, multiplied by 2.5;
                                  (IV) the number of such 
                                children constituting more than 
                                29.223 percent, but not more 
                                than 36.538 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  (V) the number of such 
                                children constituting more than 
                                36.538 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 575, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  (II) the number of such 
                                children between 576 and 1,870, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                  (III) the number of such 
                                children between 1,871 and 
                                6,910, inclusive, in such 
                                population, multiplied by 2.0;
                                  (IV) the number of such 
                                children between 6,911 and 
                                42,000, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  (V) the number of such 
                                children in excess of 42,000 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 
                weighted child count, 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 two 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 one 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. 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 C--EDUCATION OF MIGRATORY CHILDREN

           *       *       *       *       *       *       *


SEC. 1303. STATE ALLOCATIONS.

  [(a) State Allocations.--Each State (other than the 
Commonwealth of Puerto Rico) is entitled to receive under this 
part, for each fiscal year, an amount equal to--
          [(1) 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 (e); multiplied by
          [(2) 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.
  [(b) Allocation to Puerto Rico.--For each fiscal year, the 
amount for which the Commonwealth of Puerto Rico is eligible 
under this section shall be equal to--
          [(1) the number of migratory children in Puerto Rico, 
        determined under subsection (a)(1); multiplied by
          [(2) the product of--
                  [(A) the percentage that the average per-
                pupil expenditure in 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.]
  (a) State Allocations.--
          (1) Fiscal year 2000.--For fiscal year 2000, 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 (e); multiplied by
                  (B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this paragraph shall 
                not be less than 32 percent, nor more than 48 
                percent, of the average 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 is entitled to receive under this 
                        part, for fiscal year 2001 and 
                        succeeding fiscal years, an amount 
                        equal to--
                                  (I) the amount that such 
                                State received under this part 
                                for fiscal year 2000; 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 
                        2000 under this part, the State shall 
                        receive, for fiscal year 2001 and 
                        succeeding fiscal years, an amount 
                        equal to--
                                  (I) the amount that such 
                                State would have received under 
                                this part for fiscal year 2000 
                                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 2001 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 2000 
                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 
                        expenditure per-pupil in the United 
                        States.
  (b) Allocation to Puerto Rico.--
          (1) Fiscal year 2000.--For fiscal year 2000, 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 (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) Subsequent fiscal years.--For each fiscal year 
        after fiscal year 2000, 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 (a)(2)(B)(i)(I) and 
        (a)(2)(B)(i)(II) for the Commonwealth of Puerto Rico 
        during the previous fiscal year, 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.
          (3) Minimum allocation.--
                  (A) Fiscal year 2000.--The percentage in 
                paragraph (1)(A) shall not be less than 75.0 
                percent.
                  (B) Subsequent fiscal years.--The percentage 
                in paragraph (2)(A) shall not be less than--
                          (i) for fiscal year 2001, 77.5 
                        percent;
                          (ii) for fiscal year 2002, 80.0 
                        percent;
                          (iii) for fiscal year 2003, 82.5 
                        percent; and
                          (iv) for fiscal year 2004 and 
                        succeeding fiscal years, 85.0 percent.
          (4) Special rule.--If the application of paragraph 
        (3) would result in any of the 50 States or the 
        District of Columbia receiving less under this part 
        than it recieved under this part for the preceding 
        fiscal year, the percentage in paragraph (1) or (2), 
        respectively, shall be the greater of the percentage in 
        paragraph (1)(A) or (2)(A) the percentage used for the 
        preceding fiscal year.

           *       *       *       *       *       *       *

  [(d) Consortium Arrangements.--
          [(1) In general.--In the case of a State that 
        receives a grant of $1,000,000 or less under this 
        section, the Secretary shall consult with the State 
        educational agency to determine whether consortium 
        arrangements with another State or other appropriate 
        entity would result in delivery of services in a more 
        effective and efficient manner.
          [(2) Proposals.--Any State, regardless of the amount 
        of such State's allocation, may submit a consortium 
        arrangement to the Secretary for approval.
          [(3) Approval.--The Secretary shall approve a 
        consortium arrangement under paragraph (1) or (2) if 
        the proposal demonstrates that the arrangement will--
                  [(A) reduce administrative costs or program 
                function costs for State programs; and
                  [(B) make more funds available for direct 
                services to add substantially to the welfare or 
                educational attainment of children to be served 
                under this part.
  [(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing 
in each State for purposes of this section, the Secretary 
shall--
          [(1) use such information as the Secretary finds most 
        accurately reflects the actual number of migratory 
        children;
          [(2) develop and implement a procedure for more 
        accurately reflecting cost factors for different types 
        of summer and intersession program designs;
          [(3) adjust the full-time equivalent number of 
        migratory children who reside in each State to take 
        into account--
                  [(A) the special needs of those children 
                participating in special programs provided 
                under this part that operate during the summer 
                and intersession periods; and
                  [(B) the additional costs of operating such 
                programs; and
          [(4) conduct an analysis of the options for adjusting 
        the formula so as to better direct services to the 
        child whose education has been interrupted.]

SEC. 1304. STATE APPLICATIONS; SERVICES.

  (a) * * *
  (b) Program Information.--Each such application shall 
include--
          (1) a description of how, in planning, implementing, 
        and evaluating programs and projects assisted under 
        this part, the State and its local operating agencies 
        will ensure that the special educational needs of 
        migratory children, including preschool migratory 
        children, are identified and [addressed through a 
        comprehensive plan for needs assessment and service 
        delivery that meets the requirements of section 1306;] 
        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 parts A and 
                C of title VII;
                  (C) the integration of services available 
                under this part with services provided by those 
                other programs; and
                  (D) measurable program goals and outcomes;

           *       *       *       *       *       *       *

          (5) a description of how the State will determine the 
        amount of any subgrants the State will award to local 
        operating agencies, taking into account [the 
        requirements of paragraph (1); and] the numbers and 
        needs of migratory children, the requirements of 
        subsection (d), and the availability of funds from 
        other Federal, State, and local programs;
          (6) such budgetary and other information as the 
        Secretary may require[.]; and
          (7) a description of how the State will encourage 
        programs and projects assisted under this part to offer 
        family literacy services if the program or project 
        serves a substantial number of migratory children who 
        have parents who do not have a high school diploma or 
        its recognized equivalent or who have low levels of 
        literacy.
  (c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
          (1) funds received under this part will be used 
        only--
                  (A) for programs and projects, including the 
                acquisition of equipment, in accordance with 
                section [1306(b)(1)] 1306(a); and

           *       *       *       *       *       *       *

          (3) in the planning and operation of programs and 
        projects at both the State and local operating agency 
        level, there is [appropriate] consultation with parent 
        advisory councils for programs of one school year in 
        duration, and that all such programs and projects are 
        carried [out, to the extent feasible,] out in a manner 
        consistent with section [1118;] 1118, unless 
        extraordinary circumstances make implementation 
        consistent with such section impractical;

           *       *       *       *       *       *       *

          (7) the State will assist the Secretary in 
        determining the number of migratory children under 
        section [1303(e)] paragraphs (1)(A) and (2)(B)(i) of 
        section 1303(a), through such procedures as the 
        Secretary may require.

           *       *       *       *       *       *       *


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

  [(a) Comprehensive Plan.--
          [(1) In general.--Each State that receives assistance 
        under this part shall ensure that the State and its 
        local operating agencies identify and address the 
        special educational needs of migratory children in 
        accordance with a comprehensive State plan that--
                  [(A) is integrated with other programs under 
                this Act, the Goals 2000: Educate America Act, 
                or other Acts, as appropriate, consistent with 
                section 14306;
                  [(B) may be submitted as a part of 
                consolidated application under section 14302;
                  [(C) provides that migratory children will 
                have an opportunity to meet the same 
                challenging State content standards and 
                challenging State student performance 
                standards, set out in such plans, that all 
                children are expected to meet;
                  [(D) specifies measurable program goals and 
                outcomes;
                  [(E) encompasses the full range of services 
                that are available for migratory children from 
                appropriate local, State, and Federal 
                educational programs;
                  [(F) is the product of joint planning among 
                such local, State, and Federal programs, 
                including programs under part A, early 
                childhood programs, and bilingual education 
                programs under part A of title VII; and
                  [(G) provides for the integration of services 
                available under this part with services 
                provided by such other programs.
          [(2) Duration of the plan.--Each such comprehensive 
        State plan shall--
                  [(A) remain in effect for the duration of the 
                State's participation under this part; and
                  [(B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
  [(b) Authorized Activities.--
          [(1) In general.--In implementing the comprehensive 
        plan described in subsection (a), each local operating 
        agency shall have the flexibility to determine the 
        activities to be provided with funds made available 
        under this part, except that--
                  [(A) before funds under this part are used to 
                provide services described in subparagraph (B), 
                such funds shall be used to meet the identified 
                needs of migratory children that--
                          [(i) result from the effects of their 
                        migratory lifestyle, or are needed to 
                        permit migratory children to 
                        participate effectively in school; and
                          [(ii) are not addressed by services 
                        provided under other programs, 
                        including programs under part A; and
                  [(B) all migratory children who are eligible 
                to receive services under part A shall receive 
                such services with funds provided under this 
                part or under part A.
          [(2) Construction.--Nothing in this part shall be 
        construed to prohibit a local operating agency from 
        serving migrant students simultaneously with students 
        with similar educational needs, in the same educational 
        settings where appropriate.
          [(3) Special rule.--Notwithstanding section 1114, a 
        school that receives funds under this part shall 
        continue to address the identified needs described in 
        paragraph (1)(A).]

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. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

  (a) Improvement of Coordination.--
          (1) * * *
          (2) Duration.--Grants under this [subpart] subsection 
        may be awarded for not more than five years.
  [(b) Assistance and Reporting.--
          [(1) Student records.--(A) The Secretary shall 
        solicit information on how student records are 
        transferred from one school to another and shall 
        solicit recommendations on whether new procedures and 
        technologies for record transfer should be employed to 
        better meet the needs of the migrant population.
          [(B) The Secretary shall also seek recommendations on 
        the most effective means for determining the number of 
        students or full-time equivalent students in each State 
        for the purpose of allocating funds under this part.
          [(2) Report to congress.--(A) Not later than April 
        30, 1995, the Secretary shall report to the Committee 
        on Labor and Human Resources of the Senate and the 
        Committee on Education and Labor of the House of 
        Representatives the Secretary's findings and 
        recommendations, and shall include in this report, 
        recommendations for interim measures that may be taken 
        to ensure continuity of services in this program.
          [(B) The Secretary shall assist States in developing 
        effective methods for the transfer of student records 
        and in determining the number of students or full-time 
        equivalent students in each State if such interim 
        measures are required.]
  (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 for records to be maintained and 
        transferred when funds under this part are used for 
        such purpose. The Secretary may assist States to 
        implement a system 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 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.--For the purpose of carrying out 
this section in any fiscal year, the Secretary shall reserve 
not more than [$6,000,000] $10,000,000 of the amount 
appropriated to carry out this part for such year.
  [(d) Incentive Grants.--
          [(1) In general.--From the amounts made available to 
        carry out this section, the Secretary shall reserve not 
        more than $1,500,000 to award, on a competitive basis, 
        grants in the amount of not more than $250,000 to State 
        educational agencies with consortium agreements under 
        section 1303(d).
          [(2) Limitation.--Not less than 10 of such grants 
        shall be awarded to States which receive allocations of 
        less than $1,000,000 if such States have approved 
        agreements.]
  (d) Incentive Grants.--From the amounts made available to 
carry out this section for any fiscal year, the Secretary may 
reserve not more than $3,000,000 to award grants of not more 
than $250,000 on a competitive basis to State educational 
agencies that propose a consortium arrangement with another 
State or other appropriate entity that the Secretary 
determines, pursuant to criteria that the Secretary shall 
establish, will improve the delivery of services to migratory 
children whose education is interrupted.

           *       *       *       *       *       *       *


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

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

SEC. 1401. FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

  (a) Findings.--Congress finds the following:
          (1) * * *

           *       *       *       *       *       *       *

          (3) [Preventing students from dropping out of local 
        schools and addressing] Addressing the educational 
        needs of delinquent youth can help reduce the dropout 
        rate and involvement in delinquent activities at the 
        same time.

           *       *       *       *       *       *       *

          [(6) A continuing need exists for activities and 
        programs to reduce the incidence of youth dropping out 
        of school.
          [(7) Federal dropout prevention programs have 
        demonstrated effectiveness in keeping children and 
        youth in school.
          [(8) Pregnant and parenting teens are a high at-risk 
        group for dropping out of school and should be targeted 
        by dropout prevention programs.
          [(9) Such youth need a strong dropout prevention 
        program which provides such youth with high level 
        skills and which provides supports to youth returning 
        from correctional facilities in order to keep such 
        youth in school.]
          (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.
  [(b) Purpose.--It is the purpose of this part--
          [(1) to improve educational services to children in 
        local and State institutions for neglected or 
        delinquent children and youth so that such children and 
        youth have the opportunity to meet the same challenging 
        State content standards and challenging State student 
        performance standards that all children in the State 
        will be expected to meet;
          [(2) to provide such children and youth the services 
        needed to make a successful transition from 
        institutionalization to further schooling or 
        employment; and
          [(3) to prevent at-risk youth from dropping out of 
        school and to provide dropouts and youth returning from 
        institutions with a support system to ensure their 
        continued education.]
  (b) Subgrants to State Agencies in Puerto Rico.--
          (1) In general.--For each fiscal year, the amount of 
        the subgrant for 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 allocation.--The percentage in paragraph 
        (1)(A) shall not be less than--
                  (A) for fiscal year 2000, 75.0 percent;
                  (B) for fiscal year 2001, 77.5 percent;
                  (C) for fiscal year 2002, 80.0 percent;
                  (D) for fiscal year 2003, 82.5 percent; and
                  (E) for fiscal year 2004 and succeeding 
                fiscal years, 85.0 percent.
          (3) Special rule.--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. 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 needs of neglected and delinquent youth 
        and, where applicable, youth at risk of dropping out of 
        school which is integrated with other programs under 
        this Act, the Goals 2000: Educate America Act, or other 
        Acts, as appropriate, consistent with section 14306.
          [(2) Contents.--Each such State plan shall--
                  [(A) describe the program goals, objectives, 
                and performance measures established by the 
                State that will be used to assess the 
                effectiveness of the program in improving 
                academic and vocational skills of children in 
                the program;
                  [(B) provide that, to the extent feasible, 
                such children will have the same opportunities 
                to learn as such children would have if such 
                children were in the schools of local 
                educational agencies in the State; and
                  [(C) contain assurances that the State 
                educational agency will--
                          [(i) ensure that programs assisted 
                        under this 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; Peer Review.--
          [(1) In general.--The Secretary shall approve each 
        State plan that meets the requirements of this part.
          [(2) Peer review.--The Secretary may review any State 
        plan with the assistance and advice of individuals with 
        relevant expertise.
  [(c) State Agency Applications.--Any State agency that 
desires to receive funds to carry out a program under this 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 14701 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 14501 of 
        this title;
          [(8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as programs under the Job Training Partnership Act or 
        title I of the Workforce Investment Act of 1998, 
        vocational education programs, State and local dropout 
        prevention programs, and special education programs;
          [(9) describes how appropriate professional 
        development will be provided to teachers and other 
        staff;
          [(10) designates an individual in each affected 
        institution to be responsible for issues relating to 
        the transition of children and youth from the 
        institution to locally operated programs;
          [(11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring 
        for participating youth;
          [(12) provides assurances that the agency will assist 
        in locating alternative programs through which students 
        can continue their education if students are not 
        returning to school after leaving the correctional 
        facility;
          [(13) provides assurances that the agency will work 
        with parents to secure parents' assistance in improving 
        the educational achievement of their children and 
        preventing their children's further involvement in 
        delinquent activities;
          [(14) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that 
        the agency will notify the youth's local school if 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;
          [(15) provides assurances that the agency will work 
        with youth who dropped out of school before entering 
        the facility to encourage the youth to reenter school 
        once the term of the youth has been completed or 
        provide the youth with the skills necessary to gain 
        employment, continue the education of the youth, or 
        achieve a secondary school diploma or the recognized 
        equivalent if the youth does not intend to return to 
        school;
          [(16) provides assurances that teachers and other 
        qualified staff are also trained to work with children 
        with disabilities and other students with special needs 
        taking into consideration the unique needs of such 
        students;
          [(17) describes any additional services provided to 
        youth, such as career counseling, and assistance in 
        securing student loans and grants; and
          [(18) 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 or other comparable programs, if 
        applicable.]

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 
        14306.
          (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; Peer Review.--
          (1) In general.--The Secretary shall approve each 
        State plan that meets the requirements of this part.
          (2) Peer review.--The Secretary may review any State 
        plan with the assistance and advice of individuals with 
        relevant expertise.
  (c) State Agency Applications.--Any State agency that desires 
to receive funds to carry out a program under this 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 14701 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 14501 of 
        this title;
          (8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as programs under the Job Training Partnership Act or 
        title I of the Workforce Investment Act of 1998, 
        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 the youth has been completed or 
        provide the youth with the skills necessary to gain 
        employment, continue the education of the youth, or 
        achieve a secondary school diploma or 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 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 or other comparable programs, if 
        applicable.

SEC. 1415. USE OF FUNDS.

  (a) In General.--
          (1) Uses.--A State agency shall use funds received 
        under this subpart only for programs and projects 
        that--
                  (A) * * *
                  (B) concentrate on providing participants 
                with the knowledge and skills needed to make a 
                successful transition to secondary school 
                completion and vocational and technical 
                training, further education, or employment.
          (2) Programs and projects.--Such programs and 
        projects--
                  (A) may include the acquisition of equipment;
                  (B) shall be designed to support educational 
                services that--
                          (i) except for institution-wide 
                        projects under section 1416, are 
                        provided to children identified by the 
                        State agency as failing, or most at 
                        risk of failing, to meet the State's 
                        challenging State content standards and 
                        challenging State student performance 
                        standards; and
                          (ii) supplement and improve the 
                        quality of the educational services 
                        provided to such children by the State 
                        agency[; and].
                          [(iii) afford such children an 
                        opportunity to learn to such 
                        challenging State standards;]

           *       *       *       *       *       *       *


SEC. 1418. TRANSITION SERVICES.

  (a) Transition Services.--Each State agency shall reserve not 
more than [10] 15 percent of the amount such agency receives 
under this subpart for any fiscal year to support projects that 
facilitate the transition of children from State-operated 
institutions to local educational agencies.

           *       *       *       *       *       *       *


SEC. 1421. PURPOSE.

  The purpose of this subpart is to support the operation of 
local educational agency programs which involve collaboration 
with locally operated correctional facilities to--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) operate dropout prevention programs in local 
        schools for youth at risk of dropping out of school and 
        youth returning from correctional facilities.]
          (3) operate programs for youth returning from 
        correctional facilities in local schools which may also 
        serve youth at risk of dropping out of school.

SEC. 1422.  PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

  (a) Local Subgrants.--With funds [retained] made available 
under section 1402(b), the State educational agency shall award 
subgrants to local educational agencies with high numbers or 
percentages of youth residing in locally operated (including 
county operated) correctional facilities for youth (including 
facilities involved in day programs).
  [(b) Special Rule.--A local educational agency which includes 
a correctional facility that operates a school is not required 
to operate a dropout prevention program if more than 30 percent 
of the youth attending such facility will reside outside the 
boundaries of the local educational agency upon leaving such 
facility.]
  (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.

           *       *       *       *       *       *       *

  (d) Transitional and Academic Services.--Transitional and 
supportive programs operated in local educational agencies 
under this subpart shall be designed primarily to meet the 
transitional and academic needs of students returning to local 
educational agencies or alternative education programs from 
correctional facilities. Services to students at risk of 
dropping out of school shall not have a negative impact on 
meeting the transitional and academic needs of the students 
returning from correctional facilities.

SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

  Eligible local educational agencies desiring assistance under 
this section shall submit an application to the State 
educational agency, containing such information as the State 
educational agency may require. Each such application shall 
include--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) as appropriate, a description of the dropout 
        prevention program operated by participating schools 
        and the types of services such schools will provide to 
        at-risk youth in participating schools and youth 
        returning from correctional facilities;
          [(5) as appropriate, a description of the youth 
        expected to be served by the dropout prevention program 
        and how the school will be coordinating existing 
        educational programs to meet unique education needs;
          [(6) as appropriate, a description of how schools 
        will coordinate with existing social and health 
        services to meet the needs of students at risk of 
        dropping out of school and other participating 
        students, including prenatal health care and nutrition 
        services related to the health of the parent and child, 
        parenting and child development classes, child care, 
        targeted re-entry and outreach programs, referrals to 
        community resources, and scheduling flexibility;
          [(7) as appropriate, a description of any 
        partnerships with local businesses to develop training 
        and mentoring services for participating students;
          [(8) as appropriate, a description of how the program 
        will involve parents in efforts to improve the 
        educational achievement of their children, assist in 
        dropout prevention activities, and prevent the 
        involvement of their children in delinquent activities;
          [(9) a description of how the program under this 
        subpart will be coordinated with other Federal, State, 
        and local programs, such as programs under the Job 
        Training Partnership Act or title I of the Workforce 
        Investment Act of 1998 and vocational education 
        programs serving this at-risk population of youth;]
          (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 youth 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 and other services to 
        meet the needs of students returning from correctional 
        facilities and other participating students;
          (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 programs under the Job 
        Training Partnership Act or title I of the Workforce 
        Investment Act of 1998 and vocational and technical 
        education programs serving this at-risk population of 
        youth;

           *       *       *       *       *       *       *


SEC. 1424. USES OF FUNDS.

  Funds provided to local educational agencies under this 
subpart may be used, where appropriate, for--
          [(1) dropout prevention programs which serve youth at 
        educational risk, including pregnant and parenting 
        teens, youth who have come in contact with the juvenile 
        justice system, youth at least one year behind their 
        expected grade level, migrant youth, immigrant youth, 
        students with limited-English proficiency and gang 
        members;
          [(2) the coordination of health and social services 
        for such individuals if there is a likelihood that the 
        provision of such services, including day care and drug 
        and alcohol counseling, will improve the likelihood 
        such individuals will complete their education; and
          [(3) programs to meet the unique education needs of 
        youth at risk of dropping out of school, which may 
        include vocational education, special education, career 
        counseling, and assistance in securing student loans or 
        grants.]
          (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;
          (3) the coordination of social and other services 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. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
                    FUNDS UNDER THIS SECTION.

  Each correctional facility entering into an agreement with a 
local educational agency under section 1422(a) to provide 
services to youth under this section shall--
          (1) [where feasible, ensure educational programs] to 
        the extent practicable, ensure that educational 
        programs in juvenile facilities are coordinated with 
        the student's home school, particularly with respect to 
        special education students with an individualized 
        education program;

           *       *       *       *       *       *       *

          (3) [where feasible,] to the extent practicable, 
        provide transition assistance to help the youth stay in 
        school, including coordination of services for the 
        family, counseling, assistance in accessing drug and 
        alcohol abuse prevention programs, tutoring, and family 
        counseling;

           *       *       *       *       *       *       *

          (8) [where feasible,] to the extent practicable, 
        involve parents in efforts to improve the educational 
        achievement of their children and prevent the further 
        involvement of such children in delinquent activities;
          (9) coordinate funds received under this program with 
        other local, State, and Federal funds available to 
        provide services to participating youth, such as funds 
        made available under the Job Training Partnership Act 
        or title I of the Workforce Investment Act of 1998, and 
        vocational and technical education funds;

           *       *       *       *       *       *       *

          [(11) if appropriate, work with local businesses to 
        develop training and mentoring programs for 
        participating youth.]
          (11) if appropriate, work with local businesses to 
        develop training, curriculum-based youth 
        entrepreneurship education, and mentoring programs for 
        youth.

SEC. 1426. ACCOUNTABILITY.

  The State educational agency may--
          (1) reduce or terminate funding for projects under 
        this section if a local educational agency does not 
        show progress in reducing dropout rates for [male 
        students and for female students] students over a 3-
        year period; and

           *       *       *       *       *       *       *


                     Subpart 3--General Provisions

SEC. 1431. PROGRAM EVALUATIONS.

  (a) Scope of Evaluation.--Each State agency or local 
educational agency that conducts a program under subpart 1 or 2 
shall evaluate the program, disaggregating data on 
participation by [sex, and if feasible,] gender, by race, 
ethnicity, and age, not less than once every three years to 
determine the program's impact on the ability of participants 
to--
          (1) * * *

           *       *       *       *       *       *       *


                      [PART F--GENERAL PROVISIONS

[SEC. 1601. FEDERAL REGULATIONS.

  [(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
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, 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 two key issues, 
                including--
                          [(i) schoolwide programs; and
                          [(ii) standards and assessment;
                  [(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 policy 
                options that shall be provided to the 
                individuals selected by the Secretary under 
                subparagraph (A) 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 July 1, 1995; 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 with 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. 1602. COORDINATION OF FEDERAL, STATE, AND LOCAL ADMINISTRATION.

  [(a) Program Assistance Manual.--The Secretary shall, not 
later than six months after the publication of final 
regulations under this title, prepare and distribute to State 
educational agencies, State agencies operating programs under 
parts C and D, and local educational agencies, and shall make 
available to parents and other interested individuals, 
organizations, and agencies, a manual for this title to--
          [(1) assist such agencies in--
                  [(A) enhancing the quality, increasing the 
                depth, or broadening the scope of activities 
                for programs under this title;
                  [(B) applying for program funds under this 
                title; and
                  [(C) meeting the program objectives under 
                this title;
          [(2) assist State educational agencies in achieving 
        proper and efficient administration of programs funded 
        under this title;
          [(3) assist parents to become involved in the 
        planning for, and implementation and evaluation of, 
        programs and projects under this title; and
          [(4) ensure that officers and employees of the 
        Department, including officers and employees of the 
        Secretary and officers and employees of the Department 
        charged with auditing programs carried on under this 
        title, uniformly interpret, apply, and enforce 
        requirements under this title throughout the United 
        States.
  [(b) Contents of Policy Manual.--The policy manual shall, 
with respect to programs carried out under this title, contain 
descriptions, statements, procedural and substantive rules, 
opinions, policy statements and interpretations and indices to 
and amendments of the foregoing, and in particular, whether or 
not such descriptions, statements, procedural and substantive 
rules, opinions, policy statements and interpretations and 
indices are required under section 552 of title 5, United 
States Code, to be published or made available. The manual 
shall include--
          [(1) a statement of the requirements applicable to 
        the programs carried out under this title, including 
        such requirements contained in this title, the General 
        Education Provisions Act, other applicable statutes, 
        and regulations issued under the authority of such 
        statutes;
          [(2) an explanation of the purpose of each 
        requirement and its interrelationship with other 
        applicable requirements; and
          [(3) model forms and instructions developed by the 
        Secretary for use by State and local educational 
        agencies, at the discretion of such agencies, 
        including, application forms, application review 
        checklists, and instruments for monitoring programs 
        under this title.
  [(c) Response to Inquiries.--The Secretary shall respond with 
written guidance not later than 90 days after any written 
request (return receipt requested) from a State or local 
educational agency regarding a policy, question, or 
interpretation under this title is received. In the case of a 
request from a local educational agency, such agency is 
required to address its request to the State educational agency 
first.

[SEC. 1603. 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; and
                  [(C) 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 content 
        standards and challenging State student performance 
        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;
                  [(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.
  [(c) Payment for State Administration.--Each State may 
reserve for the proper and efficient performance of its duties 
under this title the greater of--
          [(1) 1.00 percent of the funds received under 
        subsections (a), (c), and (d) of section 1002; or
          [(2) $400,000, or $50,000 in the case of the outlying 
        areas.

[SEC. 1604. CONSTRUCTION.

  [(a) Prohibition of Federal Mandates, Direction, or 
Control.--Nothing in this title shall be construed to authorize 
an officer or employee of the Federal Government to mandate, 
direct, or control a State, local educational agency, or 
school's specific instructional content or pupil performance 
standards and assessments, curriculum, or program of 
instruction as a condition of eligibility to receive funds 
under this title.
  [(b) Equalized Spending.--Nothing in this title shall be 
construed to mandate equalized spending per pupil for a State, 
local educational agency, or school.
  [(c) Building Standards.--Nothing in this title shall be 
construed to mandate national school building standards for a 
State, local educational agency, or school.]

                       PART F--GENERAL PROVISIONS

SEC. 1601. FEDERAL REGULATIONS.

  (a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
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;
                          (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 Student Results Act of 
                1999; 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. 1602. AGREEMENTS AND RECORDS.

  (a) Agreements.--All published proposed regulations shall 
conform to agreements that result from negotiated rulemaking 
described in section 1601 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. 1603. 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 
        performance 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. 1604. CONSTRUCTION.

  (a) Prohibition of Federal Mandates, Direction, or Control.--
Nothing in this title shall be construed to authorize an 
officer or employee of the Federal Government to mandate, 
direct, or control a State, local educational agency, or 
school's specific instructional content or pupil performance 
standards and assessments, curriculum, or program of 
instruction as a condition of eligibility to receive funds 
under this title.
  (b) Equalized Spending.--Nothing in this title shall be 
construed to mandate equalized spending per pupil for a State, 
local educational agency, or school.
  (c) Building Standards.--Nothing in this title shall be 
construed to mandate national school building standards for a 
State, local educational agency, or school.

SEC. 1605. APPLICABILITY TO HOME SCHOOLS.

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

SEC. 1606. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC SCHOOLS.

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

SEC. 1607. 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 enactment 
of the Student Results Act of 1999.

SEC. 1608. 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. 1609. GAO STUDIES.

  (a) Study on Paraprofessionals.--The General Accounting 
Office shall conduct a study of paraprofessionals under part A 
of title I.
  (b) Study on Portability.--The General Accounting Office 
shall conduct a study regarding how funds made available under 
this title could follow a child from school to school.
  (c) Study on Electronic Transfer of Migrant Student 
Records.--The General Accounting Office shall conduct a study 
on the feasibility of electronically transferring and 
maintaining migrant student records.
  (d) Evaluation by General Accounting Office.--Not later than 
October 1, 2001, the Comptroller General shall conduct a 
comprehensive analysis and evaluation regarding the impact on 
this title of individual waivers for schools, local educational 
agency waivers, and statewide waivers granted pursuant to the 
Education Flexibility Partnership Act of 1999 (20 U.S.C. 589a 
et seq.). The Comptroller General shall submit a report to the 
Committee on Education and the Workforce of the House of 
Representatives. In conducting such analysis and evaluation, 
the Comptroller General shall consider the following factors:
          (1) Consistency.--The extent to which the State's 
        educational flexibility plan is consistent with 
        ensuring high standards for all children and aligning 
        the efforts of States, local educational agencies, and 
        schools to help children served under this title to 
        reach such standards.
          (2) State waivers.--Evaluate the effect that waivers 
        of State law have on addressing the needs and the 
        performance of students in schools subject to this 
        title.
          (3) Allocation of funds.--The extent to which waivers 
        have affected the allocation of funds to schools, 
        including schools with the highest concentrations of 
        poverty, and schools with the highest educational 
        needs, that are eligible to receive funds under this 
        title.

SEC. 1610. DEFINITIONS.

  For purposes of this title--
          (1) The term ``Secretary'' means the Secretary of 
        Education.
          (2) Fully qualified.--The term ``fully qualified''--
                  (A) when used with respect to a public 
                elementary or secondary school teacher (other 
                than a teacher teaching in a public charter 
                school), 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; 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; or
                          (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 high 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.
          (3) The term ``scientifically-based research''--
                  (A) means the application of rigorous, 
                systematic, and objective procedures; and
                  (B) shall include research that--
                          (i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                          (ii) involves rigorous data analyses 
                        that are adequate to test the stated 
                        hypotheses and justify the general 
                        conclusions drawn;
                          (iii) relies on measurements or 
                        observational methods that provide 
                        valid data across evaluators and 
                        observers and across multiple 
                        measurements and observations; and
                          (iv) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.

SEC. 1611. 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 48.6 
        million 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 the Congress that 
Federal and State educational agencies should reduce the 
paperwork requirements placed on schools, teachers, principals, 
and other administrators.

                  PART G--COMPREHENSIVE SCHOOL REFORM

SEC. 1701. COMPREHENSIVE SCHOOL REFORM.

  (a) Findings and Purpose.--
          (1) Findings.--Congress finds the following:
                  (A) A number of schools across the country 
                have shown impressive gains in student 
                performance through the use of comprehensive 
                models for schoolwide change that incorporate 
                virtually all aspects of school operations.
                  (B) No single comprehensive school reform 
                model may be suitable for every school, 
                however, schools should be encouraged to 
                examine successful, externally developed 
                comprehensive school reform approaches as they 
                undertake comprehensive school reform.
                  (C) Comprehensive school reform is an 
                important means by which children are assisted 
                in meeting challenging State student 
                performance standards.
          (2) Purpose.--The purpose of this section is to 
        provide financial incentives for schools to develop 
        comprehensive school reforms, based upon 
        scientifically-based research and effective practices 
        that include an emphasis on basic academics and 
        parental involvement so that all children can meet 
        challenging State content and performance standards.
  (b) Program Authorized.--
          (1) In general.--The Secretary is authorized to 
        provide grants to State educational agencies to provide 
        subgrants to local educational agencies to carry out 
        the purpose described in subsection (a)(2).
          (2) Allocation.--
                  (A) Reservation.--Of the amount appropriated 
                under this section, the Secretary may reserve--
                          (i) not more than 1 percent for 
                        schools supported by the Bureau of 
                        Indian Affairs and in the United States 
                        Virgin Islands, Guam, American Samoa, 
                        and the Commonwealth of the Northern 
                        Mariana Islands; and
                          (ii) not more than 1 percent to 
                        conduct national evaluation activities 
                        described under subsection (e).
                  (B) In general.--Of the amount of funds 
                remaining after the reservation under 
                subparagraph (A), the Secretary shall allocate 
                to each State for a fiscal year, an amount that 
                bears the same ratio to the amount appropriated 
                for that fiscal year as the amount made 
                available under section 1124 to the State for 
                the preceding fiscal year bears to the total 
                amount allocated under section 1124 to all 
                States for that year.
                  (C) Reallocation.--If a State does not apply 
                for funds under this section, the Secretary 
                shall reallocate any such funds to other States 
                that the Secretary considers in need of 
                additional funds to carry out the purposes of 
                this section.
  (c) State Awards.--
          (1) State application.--
                  (A) In general.--Each State educational 
                agency that desires to receive a grant under 
                this section shall submit an application to the 
                Secretary at such time, in such manner and 
                containing such other information as the 
                Secretary may reasonably require.
                  (B) Contents.--Each State application shall 
                also describe--
                          (i) the process and selection 
                        criteria by which the State educational 
                        agency, using expert review, will 
                        select local educational agencies to 
                        receive subgrants under this section.
                          (ii) how the agency will ensure that 
                        only comprehensive school reforms that 
                        are based on scientifically-based 
                        research receive funds under this 
                        section;
                          (iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms are that 
                        based on scientifically-based research;
                          (iv) how the agency will evaluate the 
                        implementation of such reforms and 
                        measure the extent to which the reforms 
                        resulted in increased student academic 
                        performance; and
                          (v) how the agency will provide, upon 
                        request, technical assistance to the 
                        local educational agency in evaluating, 
                        developing, and implementing 
                        comprehensive school reform.
          (2) Uses of funds.--
                  (A) In general.--Except as provided in 
                subparagraph (E), a State educational agency 
                that receives an award under this section shall 
                use such funds to provide competitive grants to 
                local educational agencies receiving funds 
                under part A.
                  (B) Grant requirements.--A grant to a local 
                educational agency shall be--
                          (i) of sufficient size and scope to 
                        support the initial costs for the 
                        particular comprehensive school reform 
                        plan selected or designed by each 
                        school identified in the application of 
                        the local educational agency;
                          (ii) in an amount not less than 
                        $50,000 to each participating school; 
                        and
                          (iii) renewable for 2 additional 1-
                        year periods after the initial 1-year 
                        grant is made if schools are making 
                        substantial progress in the 
                        implementation of their reforms.
                  (C) Priority.--The State, in awarding grants 
                under this paragraph, shall give priority to 
                local educational agencies that--
                          (i) plan to use the funds in schools 
                        identified as being in need of 
                        improvement or corrective action under 
                        section 1116(c); and
                          (ii) demonstrate a commitment to 
                        assist schools with budget allocation, 
                        professional development, and other 
                        strategies necessary to ensure the 
                        comprehensive school reforms are 
                        properly implemented and are sustained 
                        in the future.
                  (D) Grant consideration.--In making subgrant 
                awards under this part, the State educational 
                agency shall take into account the equitable 
                distribution of awards to different geographic 
                regions within the State, including urban and 
                rural areas, and to schools serving elementary 
                and secondary students.
                  (E) Administrative Costs.--A State 
                educational agency that receives a grant award 
                under this section may reserve not more than 5 
                percent of such award for administrative, 
                evaluation, and technical assistance expenses.
                  (F) Supplement.--Funds made available under 
                this section shall be used to supplement, not 
                supplant, any other Federal, State, or local 
                funds that would otherwise be available to 
                carry out this section.
          (3) Reporting.--Each State educational agency that 
        receives an award under this section shall provide to 
        the Secretary such information as the Secretary may 
        require, including the names of local educational 
        agencies and schools selected to receive subgrant 
        awards under this section, the amount of such award, 
        and a description of the comprehensive school reform 
        model selected and in use.
  (d) Local Awards.--
          (1) In general.--Each local educational agency that 
        applies for a subgrant under this section shall--
                  (A) identify which schools eligible for funds 
                under part A plan to implement a comprehensive 
                school reform program, including the projected 
                costs of such a program;
                  (B) describe the scientifically-based 
                comprehensive school reforms that such schools 
                will implement;
                  (C) describe how the agency will provide 
                technical assistance and support for the 
                effective implementation of the scientifically-
                based school reforms selected by such schools; 
                and
                  (D) describe how the agency will evaluate the 
                implementation of such reforms and measure the 
                results achieved in improving student academic 
                performance.
          (2) Components of the program.--A local educational 
        agency that receives a subgrant award under this 
        section shall provide such funds to schools that 
        implement a comprehensive school reform program that--
                  (A) employs innovative strategies and proven 
                methods for student learning, teaching, and 
                school management that are based on 
                scientifically-based research and effective 
                practices and have been replicated successfully 
                in schools with diverse characteristics;
                  (B) integrates a comprehensive design for 
                effective school functioning, including 
                instruction, assessment, classroom management, 
                professional development, parental involvement, 
                and school management, that aligns the school's 
                curriculum, technology, professional 
                development into a comprehensive reform plan 
                for schoolwide change designed to enable all 
                students to meet challenging State content and 
                challenging student performance standards and 
                addresses needs identified through a school 
                needs assessment;
                  (C) provides high-quality and continuous 
                teacher and staff professional development;
                  (D) includes measurable goals for student 
                performance and benchmarks for meeting such 
                goals;
                  (E) is supported by teachers, principals, 
                administrators, and other professional staff;
                  (F) provides for the meaningful involvement 
                of parents and the local community in planning 
                and implementing school improvement activities;
                  (G) uses high quality external technical 
                support and assistance from an entity, which 
                may be an institution of higher education, with 
                experience and expertise in schoolwide reform 
                and improvement;
                  (H) includes a plan for the evaluation of the 
                implementation of school reforms and the 
                student results achieved; and
                  (I) identifies how other resources, including 
                Federal, State, local, and private resources, 
                available to the school will be used to 
                coordinate services to support and sustain the 
                school reform effort.
          (3) Special rule.--A school that receives funds to 
        develop a comprehensive school reform program shall not 
        be limited to using the approaches identified or 
        developed by the Department of Education, but may 
        develop its own comprehensive school reform programs 
        for schoolwide change that comply with paragraph (2).
  (e) Evaluation and Report.--
          (1) In general.--The Secretary shall develop a plan 
        for a national evaluation of the programs developed 
        pursuant to this section.
          (2) Evaluation.--This national evaluation shall 
        evaluate the implementation and results achieved by 
        schools after 3 years of implementing comprehensive 
        school reforms, and assess the effectiveness of 
        comprehensive school reforms in schools with diverse 
        characteristics.
          (3) Reports.--Prior to the completion of a national 
        evaluation, the Secretary shall submit an interim 
        report outlining first year implementation activities 
        to the Committees on Education and the Workforce and 
        Appropriations of the House of Representatives and the 
        Committees on Health, Education, Labor, and Pensions 
        and Appropriations of the Senate.
  (f) Definition.--The term ``scientifically-based research''--
          (1) means the application of rigorous, systematic, 
        and objective procedures in the development of 
        comprehensive school reform models; and
          (2) shall include research that--
                  (A) employs systematic, empirical methods 
                that draw on observation or experiment;
                  (B) involves rigorous data analyses that are 
                adequate to test the stated hypotheses and 
                justify the general conclusions drawn;
                  (C) relies on measurements or observational 
                methods that provide valid data across 
                evaluators and observers and across multiple 
                measurements and observations; and
                  (D) has been accepted by a peer-reviewed 
                journal or approved by a panel of independent 
                experts through a comparably rigorous, 
                objective, and scientific review.
  (g) Authorization of Appropriations.--There are authorized to 
carry out this section $175,000,000 for fiscal year 2000 and 
such sums as may be necessary for each of the 4 succeeding 
fiscal years.

           *       *       *       *       *       *       *


                       [TITLE V--PROMOTING EQUITY

                   [PART A--MAGNET SCHOOLS ASSISTANCE

[SEC. 5101. FINDINGS.

  [The Congress finds that--
          [(1) magnet schools are a significant part of our 
        Nation's effort to achieve voluntary desegregation in 
        our Nation's schools;
          [(2) the use of magnet schools has increased 
        dramatically since the date of enactment of the Magnet 
        Schools Assistance program, with approximately 
        1,400,000 students nationwide now attending such 
        schools, of which more than 60 percent of the students 
        are nonwhite;
          [(3) magnet schools offer a wide range of distinctive 
        programs that have served as models for school 
        improvement efforts;
          [(4) in administering the Magnet Schools Assistance 
        program, the Federal Government has learned that--
                  [(A) where magnet programs are implemented 
                for only a portion of a school's student body, 
                special efforts must be made to discourage the 
                isolation of--
                          [(i) magnet school students from 
                        other students in the school; and
                          [(ii) students by racial 
                        characteristics;
                  [(B) local educational agencies can maximize 
                their effectiveness in achieving the purposes 
                of the Magnet Schools Assistance program if 
                such agencies have more flexibility in the 
                administration of such program in order to 
                serve students attending a school who are not 
                enrolled in the magnet school program;
                  [(C) local educational agencies must be 
                creative in designing magnet schools for 
                students at all academic levels, so that school 
                districts do not skim off only the highest 
                achieving students to attend the magnet 
                schools;
                  [(D) consistent with desegregation 
                guidelines, local educational agencies must 
                seek to enable participation in magnet school 
                programs by students who reside in the 
                neighborhoods where the programs operate; and
                  [(E) in order to ensure that magnet schools 
                are sustained after Federal funding ends, the 
                Federal Government must assist school districts 
                to improve their capacity to continue to 
                operate magnet schools at a high level of 
                performance; and
          [(5) it is in the best interest of the Federal 
        Government to--
                  [(A) continue the Federal Government's 
                support of school districts implementing court-
                ordered desegregation plans and school 
                districts seeking to foster meaningful 
                interaction among students of different racial 
                and ethnic backgrounds, beginning at the 
                earliest stage of such students' education;
                  [(B) ensure that all students have equitable 
                access to quality education that will prepare 
                such students to function well in a culturally 
                diverse, technologically oriented, and highly 
                competitive, global community; and
                  [(C) 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.

[SEC. 5102. 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 
        content standards and challenging State student 
        performance standards;
          [(3) the development and design of innovative 
        educational methods and practices; 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 skills of students attending such 
        schools.

[SEC. 5103. 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. 5104. 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. 5105. ELIGIBILITY.

  [A local educational agency, or consortium of such agencies 
where appropriate, is eligible to receive assistance under this 
part to carry out the purposes 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. 5106. 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 
                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 implement services and activities that are 
                consistent with other programs under this Act, 
                the Goals 2000: Educate America Act, and other 
                Acts, as appropriate, in accordance with the 
                provisions of section 14306; 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 
                purposes specified in section 5102;
                  [(B) employ State certified or licensed 
                teachers in the courses of instruction assisted 
                under this part to teach or supervise others 
                who are teaching the subject matter of the 
                courses of instruction;
                  [(C) not engage in discrimination based on 
                race, religion, color, national origin, sex, or 
                disability in--
                          [(i) the hiring, promotion, or 
                        assignment of employees of the agency 
                        or other personnel for whom the agency 
                        has any administrative responsibility;
                          [(ii) the assignment of students to 
                        schools, or to courses of instruction 
                        within the school, of such agency, 
                        except to carry out the approved plan; 
                        and
                          [(iii) designing or operating 
                        extracurricular activities for 
                        students;
                  [(D) carry out a high-quality education 
                program that will encourage greater parental 
                decisionmaking and involvement; and
                  [(E) give students residing in the local 
                attendance area of the proposed magnet school 
                projects equitable consideration for placement 
                in those projects.
  [(c) Special Rule.--No application may be approved under this 
section unless the Assistant Secretary of Education for Civil 
Rights determines that the assurances described in subsection 
(b)(2)(C) will be met.

[SEC. 5107. 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;
          [(3) propose to select students to attend magnet 
        school projects by methods such as lottery, rather than 
        through academic examination;
          [(4) propose to implement innovative educational 
        approaches that are consistent with the State's and 
        local educational agency's approved systemic reform 
        plans, if any, under title III of the Goals 2000: 
        Educate America Act; and
          [(5) propose to draw on comprehensive community 
        involvement plans.

[SEC. 5108. 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 certified or licensed by the State, 
        and instructional staff where applicable, who are 
        necessary for the conduct of programs in magnet 
        schools; and
          [(4) with respect to a magnet school program offered 
        to less than the entire student population of a school, 
        for instructional activities that--
                  [(A) are designed to make available the 
                special curriculum that is offered by the 
                magnet school project to students who are 
                enrolled in the school but who are not enrolled 
                in the magnet school program; and
                  [(B) further the purposes of this part.
  [(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' reading skills or 
knowledge of mathematics, science, history, geography, English, 
foreign languages, art, or music, or to improving vocational 
skills.

[SEC. 5109. 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. 5110. 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 
June 1 of the applicable fiscal year.

[SEC. 5111. INNOVATIVE PROGRAMS.

  [(a) In General.--From amounts reserved under subsection (d) 
for each fiscal year, the Secretary shall award grants to local 
educational agencies or consortia of such agencies described in 
section 5105 to enable such agencies or consortia to conduct 
innovative programs that--
          [(1) carry out the purpose of this part; and
          [(2) involve strategies other than magnet schools, 
        such as neighborhood or community model schools--
                  [(A) organized around a special emphasis, 
                theme or concept; and
                  [(B) involving extensive parent and community 
                involvement.
  [(b) Applicability.--Sections 5103, 5106, 5107, and 5108, 
shall not apply to grants awarded under subsection (a).
  [(c) Applications.--Each local educational agency or 
consortia of such agencies desiring a grant under this section 
shall submit an application to the Secretary at such time, in 
such manner, and containing such information and assurances as 
the Secretary may reasonably require.
  [(d) Innovative Programs.--The Secretary shall reserve not 
more than 5 percent of the funds appropriated under section 
5113(a) for each fiscal year to award grants under this 
section.

[SEC. 5112. EVALUATIONS.

  [(a) Reservation.--The Secretary may reserve not more than 
two percent of the funds appropriated under section 5113(a) for 
any fiscal year to carry out evaluations of projects 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. 5113. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

  [(a) Authorization.--For the purpose of carrying out this 
part, there are authorized to be appropriated $120,000,000 for 
fiscal year 1995 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.

                  [PART B--WOMEN'S EDUCATIONAL EQUITY

[SEC. 5201. SHORT TITLE; FINDINGS.

  [(a) Short Title.--This part may be cited as the ``Women's 
Educational Equity Act of 1994''.
  [(b) Findings.--The Congress finds that--
          [(1) since the enactment of title IX of the Education 
        Amendments of 1972, women and girls have made strides 
        in educational achievement and in their ability to 
        avail themselves of educational opportunities;
          [(2) because of funding provided under the Women's 
        Educational Equity Act, more curricula, training, and 
        other educational materials concerning educational 
        equity for women and girls are available for national 
        dissemination;
          [(3) teaching and learning practices in the United 
        States are frequently inequitable as such practices 
        relate to women and girls, for example--
                  [(A) sexual harassment, particularly that 
                experienced by girls, undermines the ability of 
                schools to provide a safe and equitable 
                learning or workplace environment;
                  [(B) classroom textbooks and other 
                educational materials do not sufficiently 
                reflect the experiences, achievements, or 
                concerns of women and, in most cases, are not 
                written by women or persons of color;
                  [(C) girls do not take as many mathematics 
                and science courses as boys, girls lose 
                confidence in their mathematics and science 
                ability as girls move through adolescence, and 
                there are few women role models in the 
                sciences; and
                  [(D) pregnant and parenting teenagers are at 
                high risk for dropping out of school and 
                existing dropout prevention programs do not 
                adequately address the needs of such teenagers;
          [(4) efforts to improve the quality of public 
        education also must include efforts to ensure equal 
        access to quality education programs for all women and 
        girls;
          [(5) Federal support should address not only research 
        and development of innovative model curricula and 
        teaching and learning strategies to promote gender 
        equity, but should also assist schools and local 
        communities implement gender equitable practices;
          [(6) Federal assistance for gender equity must be 
        tied to systemic reform, involve collaborative efforts 
        to implement effective gender practices at the local 
        level, and encourage parental participation; and
          [(7) excellence in education, high educational 
        achievements and standards, and the full participation 
        of women and girls in American society, cannot be 
        achieved without educational equity for women and 
        girls.

[SEC. 5202. STATEMENT OF PURPOSES.

  [It is the purpose of this part--
          [(1) to promote gender equity in education in the 
        United States;
          [(2) to provide financial assistance to enable 
        educational agencies and institutions to meet the 
        requirements of title IX of the Educational Amendments 
        of 1972; and
          [(3) to promote equity in education for women and 
        girls who
  [An application under this part shall--
          [(1) set forth policies and procedures that will 
        ensure a comprehensive evaluation of the activities 
        assisted under this part, including an evaluation of 
        the practices, policies, and materials used by the 
        applicant and an evaluation or estimate of the 
        continued significance of the work of the project 
        following completion of the award period;
          [(2) where appropriate, demonstrate how funds 
        received under this part will be used to promote the 
        attainment of one or more of the National Education 
        Goals;
          [(3) demonstrate how the applicant will address 
        perceptions of gender roles based on cultural 
        differences or stereotypes;
          [(4) where appropriate, describe how funds under this 
        part will be used in a manner that is consistent with 
        programs under the School-to-Work Opportunities Act of 
        1994;
          [(5) for applications for assistance under section 
        5203(b)(1), demonstrate how the applicant will foster 
        partnerships and, where applicable, share resources 
        with State educational agencies, local educational 
        agencies, institutions of higher education, community-
        based organizations (including organizations serving 
        women), parent, teacher, and student groups, businesses 
        or other recipients of Federal educational funding 
        which may include State literacy resource centers;
          [(6) for applications for assistance under section 
        5203(b)(1), demonstrate how parental involvement in the 
        project will be encouraged; and
          [(7) for applications for assistance under section 
        5203(b)(1), describe plans for continuation of the 
        activities assisted under this part with local support 
        following completion of the grant period and 
        termination of Federal support under this part.

[SEC. 5205. CRITERIA AND PRIORITIES.

  [(a) Criteria and Priorities.--
          [(1) In general.--The Secretary shall establish 
        separate criteria and priorities for awards under 
        paragraphs (1) and (2) of section 5203(b) to ensure 
        that funds under this part areused for programs that 
most effectively will achieve the purposes of this part.
          [(2) Criteria.--The criteria described in subsection 
        (a) may include the extent to which the activities 
        assisted under this part--
                  [(A) address the needs of women and girls of 
                color and women and girls with disabilities;
                  [(B) meet locally defined and documented 
                educational equity needs and priorities, 
                including compliance with title IX of the 
                Education Amendments of 1972;
                  [(C) are a significant component of a 
                comprehensive plan for educational equity and 
                compliance with title IX of the Education 
                Amendments of 1972 in the particular school 
                district, institution of higher education, 
                vocational-technical institution, or other 
                educational agency or institution; and
                  [(D) implement an institutional change 
                strategy with long-term impact that will 
                continue as a central activity of the applicant 
                after the grant under this part has terminated.
  [(b) Priorities.--In approving applications under this part, 
the Secretary may give special consideration to applications--
          [(1) submitted by applicants that have not received 
        assistance under this part or under part C of title IX 
        of this Act (as such part was in effect on October 1, 
        1988);
          [(2) for projects that will contribute significantly 
        to directly improving teaching and learning practices 
        in the local community; and
          [(3) for projects that will--
                  [(A) provide for a comprehensive approach to 
                enhancing gender equity in educational 
                institutions and agencies;
                  [(B) draw on a variety of resources, 
                including the resources of local educational 
                agencies, community-based organizations, 
                institutions of higher education, and private 
                organizations;
                  [(C) implement a strategy with long-term 
                impact that will continue as a central activity 
                of the applicant after the grant under this 
                part has terminated;
                  [(D) address issues of national significance 
                that can be duplicated; and
                  [(E) address the educational needs of women 
                and girls who suffer multiple or compound 
                discrimination based on sex and on race, ethnic 
                origin, disability, or age.
  [(c) Special Rule.--To the extent feasible, the Secretary 
shall ensure that grants awarded under this part for each 
fiscal year address--
          [(1) all levels of education, including preschool, 
        elementary and secondary education, higher education, 
        vocational education, and adult education;
          [(2) all regions of the United States; and
          [(3) urban, rural, and suburban educational 
        institutions.
  [(d) Coordination.--Research activities supported under this 
part--
          [(1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        ensure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by the Office; and
          [(2) may include collaborative research activities 
        which are jointly funded and carried out with the 
        Office of Educational Research and Improvement.
  [(e) Limitation.--Nothing in this part shall be construed as 
prohibiting men and boys from participating in any programs or 
activities assisted with funds under this part.

[SEC. 5206. REPORT.

  [The Secretary, not later than January 1, 1999, shall submit 
to the President and the Congress a report on the status of 
educational equity for girls and women in the Nation.

[SEC. 5207. ADMINISTRATION.

  [(a) Evaluation and Dissemination.--The Secretary shall 
evaluate in accordance with section 14701, and disseminate, 
materials and programs developed under this part and shall 
report to the Congress regarding such evaluation materials and 
programs not later than January 1, 1998.
  [(b) Program Operations.--The Secretary shall ensure that the 
activities assisted under this part are administered within the 
Department by a person who has recognized professional 
qualifications and experience in the field of gender equity 
education.

[SEC. 5208. AUTHORIZATION OF APPROPRIATIONS.

  [For the purpose of carrying out this part, there are 
authorized to be appropriated $5,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the four 
succeeding fiscal years, of which not less than two-thirds of 
the amount appropriated under this section for each fiscal year 
shall be available to carry out the activities described in 
section 5203(b)(1).

         [PART C--ASSISTANCE TO ADDRESS SCHOOL DROPOUT PROBLEMS

[SEC. 5301. SHORT TITLE.

  [This part may be cited as the ``School Dropout Assistance 
Act''.

[SEC. 5302. PURPOSE.

  [The purpose of this part is to reduce the number of children 
who do not complete their elementary and secondary education by 
providing grants to local educational agencies to establish--
          [(1) effective programs to identify potential student 
        dropouts, including pregnant and parenting teenagers, 
        and prevent such students from dropping out of school;
          [(2) effective programs to identify and encourage 
        children who have already dropped out to reenter school 
        and complete their elementary and secondary education;
          [(3) effective early intervention programs designed 
        to identify at-risk students in elementary and 
        secondary schools; and
          [(4) model systems for collecting and reporting 
        information to local school officials on the number, 
        ages, sex, race or ethnicity, and grade levels of the 
        children not completing their elementary and secondary 
        education and the reasons why such children have 
        dropped out of school.

[SEC. 5303. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  [(a) Allotment to Categories of Local Educational Agencies.--
From the amount appropriated under section 5308 for any fiscal 
year, the Secretary shall first reserve not more than 
$2,000,000 for the purposes of evaluating programs carried out 
with assistance under this part in accordance with section 
14701. From the remaining amount, the Secretary shall allot the 
following percentages to each of the following categories of 
local educational agencies:
          [(1) Local educational agencies administering schools 
        with a total enrollment of 100,000 or more elementary 
        and secondary school students shall be allotted 25 
        percent of such remaining amount.
          [(2) Local educational agencies administering schools 
        with a total enrollment of at least 20,000 but less 
        than 100,000 elementary and secondary school students 
        shall be allotted 40 percent of such remaining amount.
          [(3) Local educational agencies administering schools 
        with a total enrollment of less than 20,000 elementary 
        and secondary school students shall be allotted 30 
        percent of such remaining amount. Grants may be made 
        under this paragraph to educational service agencies 
        and consortia of not more than 5 local educational 
        agencies in any case in which the total enrollment of 
        the largest such local educational agency is less than 
        20,000 elementary and secondary students. Such agencies 
        and consortia may also apply for assistance under this 
        part in conjunction with the State educational agency. 
        Not less than 20 percent of funds available under this 
        paragraph shall be awarded to local educational 
        agencies administering schools with a total enrollment 
        of less than 2,000 elementary and secondary school 
        students.
          [(4) Community-based organizations shall be allotted 
        5 percent of such remaining amount. Grants under this 
        paragraph shall be made after consultation between the 
        community-based organization and the local educational 
        agency that is to benefit from such a grant.
  [(b) Special Consideration.--
          [(1) In general.--The Secretary shall give special 
        consideration to awarding funds available for each 
        category described in paragraphs (1), (2), and (3) of 
        subsection (a) to local educational agencies 
        participating in an educational partnership.
          [(2) Educational partnerships.--For the purpose of 
        this part the term ``educational partnerships' means a 
        partnership between--
                  [(A) a local educational agency; and
                  [(B) a business concern or business 
                organization, community-based organization, 
                nonprofit private organization, institution of 
                higher education, State educational agency, 
                State or local public agency, private industry 
                council (established under the Job Training 
                Partnership Act), museum, library, or 
                educational television or broadcasting station.
  [(c) Award of Grant.--
          [(1) In general.--From the amount allotted for any 
        fiscal year to a category of local educational agencies 
        under subsection (a), the Secretary shall award as many 
        grants as practicable within each such category to 
        local educational agencies and educational partnerships 
        whose applications have been approved by the Secretary 
        for such fiscal year under section 5304 and whose 
        applications propose a program of sufficient size, 
        scope, and quality to be effective.
          [(2) Additional funds.--Any local educational agency 
        or educational partnership that has received a grant 
        under this part shall be eligible for additional funds 
        as provided under subsection (d).
          [(3) Terms and conditions.--Grants under this part 
        shall be made under such terms and conditions as the 
        Secretary shall prescribe.
  [(d) Use of Funds When Not Fully Allotted to Categories Under 
Subsection (a).--
          [(1) In general.--Whenever the Secretary determines 
        that the full amount of the sums allotted under any 
        category set forth under subsection (a) will not be 
        required for applications of the local educational 
        agencies in the case of categories described in 
        paragraphs (1), (2), or (3) of subsection (a), the 
        Secretary shall make the amount not so required 
        available to another category under subsection (a). In 
        carrying out the provisions of this subsection, the 
        Secretary shall assure that the transfer of amounts 
        from one category to another is made to a category in 
        which there is the greatest need for funds.
          [(2) Peer review.--In order to transfer funds under 
        this subsection, the Secretary shall use a peer review 
        process to determine that such excess funds are not 
        needed to fund projects in particular categories and 
        shall prepare a list of the categories in which funds 
        were not fully expended and the reasons therefor, and 
        make such list available to local educational agencies 
        and educational partnerships upon request. The 
        Secretary may use the peer review process to determine 
        grant recipients of funds transferred in accordance 
        with this subsection.
  [(e) Federal Share.--
          [(1) Federal share.--The Federal share of a grant 
        under this part may not exceed--
                  [(A) 90 percent of the total cost of a 
                project for the first year for which the 
                project receives assistance under this part; 
                and
                  [(B) 75 percent of such cost in each such 
                succeeding fiscal year.
          [(2) Remaining costs.--The remaining cost of a 
        project that receives assistance under this part may be 
        paid from any source other than funds made available 
        under this part, except that not more than 10 percent 
        of the remaining cost in any fiscal year may be 
        provided from Federal sources other than this part.
          [(3) Non-federal share.--The share of payments from 
        sources other than funds made available under this part 
        may be in cash or in kind fairly evaluated, including 
        plant, equipment or services.

[SEC. 5404. APPLICATION.

  [(a) Application Required.--
          [(1) In general.--A grant under this part may be made 
        only to a local educational agency or an educational 
        partnership which submits an application to the 
        Secretary containing such information as may be 
        required by the Secretary by regulation.
          [(2) Duration.--Each such application shall be for a 
        three-year period.
  [(b) Contents.--Each such application shall--
          [(1) provide documentation of--
                  [(A) the number of children who were enrolled 
                in the schools to be served by the applicant 
                for the five academic years prior to the date 
                application is made who have not completed 
                their elementary or secondary education and who 
                are classified as school dropouts; and
                  [(B) the percentage that such number of 
                children is of the total school-age population 
                in the applicant's schools;
          [(2) include a plan for the development and 
        implementation of a school dropout information 
        collection and reporting system for documenting the 
        extent and nature of the dropout problem, which system 
        shall collect and cross tabulate data, where feasible, 
        by sex according to race or ethnicity and socioeconomic 
        status;
          [(3) include a plan for coordinated activities 
        involving not less than one secondary school and its 
        feeder junior high or middle schools and elementary 
        schools for local educational agencies that have feeder 
        systems;
          [(4) when applicable, describe how programs assisted 
        under this part will be coordinated with, and not 
        duplicate, programs assisted under title I;
          [(5) include a description of how the program 
        assisted under this part is consistent with the second 
        National Education Goal, relating to school completion, 
        and other Federal programs as appropriate; and
          [(6) contain such other information as the Secretary 
        considers necessary to determine the nature of the 
        local needs, the quality of the proposed project, and 
        the capability of the applicant to carry out the 
        project.
  [(c) Priority.--The Secretary shall, in approving 
applications under this section, give priority to applications 
which--
          [(1) demonstrate the replication of successful 
        programs conducted in other local educational agencies 
        or the expansion of successful programs within a local 
        educational agency; and
          [(2) reflect very high numbers or very high 
        percentages of school dropouts in the schools of the 
        applicant in each category described in section 
        5303(a).
  [(d) Special Consideration.--The Secretary shall give 
additional special consideration to applications that include--
          [(1) provisions which emphasize early intervention 
        services designed to identify at-risk students in 
        elementary or early secondary schools; and
          [(2) provisions for significant parental involvement.
  [(e) Grants for New Grantees.--In awarding grants under this 
part the Secretary shall use only the priorities and special 
considerations described in subsections (c) and (d).
  [(f) Continuation of Assistance.--For the two fiscal years 
beginning after the date of enactment of the Improving 
America's Schools Act of 1994, the Secretary shall approve an 
application under this section for a local educational agency 
which received funding in fiscal year 1994 under the School 
Dropout Demonstration Assistance Act of 1988 (20 U.S.C. 3241 et 
seq.) and which--
          [(1) satisfies the requirements of this section;
          [(2) qualifies for special consideration or priority 
        under--
                  [(A) section 5303(b); and
                  [(B) subsections (c) and (d) of this section; 
                and
          [(3) provides evidence that the program for which 
        such agency is seeking assistance is effective in--
                  [(A) providing early intervention services to 
                at-risk students in elementary and secondary 
                schools;
                  [(B) identifying potential student dropouts; 
                and
                  [(C) preventing students from dropping out of 
                school.

[SEC. 5305. AUTHORIZED ACTIVITIES.

  [Grants under this part shall be used to carry out activities 
and services described in applications approved under section 
5304. In addition, grants may be used for educational, 
occupational, and basic skills testing services and activities, 
including--
          [(1) the establishment of systemwide or school-level 
        policies, procedures, and plans for dropout prevention 
        and school reentry;
          [(2) the development and implementation of 
        activities, including extended day or summer programs, 
        designed to address poor achievement, basic skills 
        deficiencies, language deficiencies, or course 
        failures, in order to assist students at risk of 
        dropping out of school and students reentering school, 
        including youth returning to school from a correctional 
        or other facility operated for delinquent youth;
          [(3) the establishment or expansion of work-study, 
        apprentice, or internship programs;
          [(4) the use of resources of the community, including 
        contracting with public or private entities or 
        community-based organizations of demonstrated 
        performance, to provide services to the grant recipient 
        or the target population;
          [(5) the evaluation and revision of program placement 
        of students at risk;
          [(6) the evaluation of program effectiveness of 
        dropout programs;
          [(7) the development and implementation of programs 
        for traditionally underserved groups of students;
          [(8) the implementation of activities which will 
        improve student motivation and the school learning 
        environment;
          [(9) the provision of training for school personnel 
        on strategies and techniques designed to--
                  [(A) identify children at risk of dropping 
                out of school;
                  [(B) intervene in the instructional program 
                for such children with support and remedial 
                services;
                  [(C) develop realistic expectations for 
                student performance; and
                  [(D) improve student-staff interactions;
          [(10) the study of the relationship between drugs and 
        school dropouts and between youth gangs and school 
        dropouts, and the coordination of dropout prevention 
        and reentry programs with appropriate drug prevention 
        and community organizations for the prevention of youth 
        gangs;
          [(11) the study of the relationship between disabling 
        conditions and student dropouts;
          [(12) the study of the relationship between the 
        dropout rate for gifted and talented students compared 
        to the dropout rate for the general student enrollment;
          [(13) the use of educational telecommunications and 
        broadcasting technologies and educational materials 
        designed to extend, motivate, and reinforce school, 
        community, and home dropout prevention and reentry 
        activities;
          [(14) the development and implementation of efforts 
        to identify and address factors in a student's decision 
        to drop out of school that are related to gender and 
        family roles, including activities and services 
        designed to meet the needs of pregnant and parenting 
        teenagers;
          [(15) the provision of other educational, 
        occupational and testing services and activities which 
        directly relate to the purpose of this part;
          [(16) activities which offer jobs and college 
        admissions for successful completion of the program for 
        which assistance is sought;
          [(17) summer employment programs;
          [(18) occupational training programs;
          [(19) career opportunity and skills counseling;
          [(20) job placement services;
          [(21) the development of skill employment competency 
        testing programs;
          [(22) special school staff training projects; and
          [(23) mentoring programs.

[SEC. 5306.  DISTRIBUTION OF ASSISTANCE; LIMITATION ON COSTS.

  [(a) Distribution of Assistance.--The Secretary shall ensure 
that, to the extent practicable, in approving grant 
applications under this part--
          [(1) grants are equitably distributed on a geographic 
        basis within each category set forth in section 
        5303(a);
          [(2) the amount of a grant to a local educational 
        agency or an educational partnership for a fiscal year 
        is proportionate to the extent and severity of the 
        local school dropout problem;
          [(3) not less than 30 percent of the amount available 
        for grants in each fiscal year is used for activities 
        relating to school dropout prevention; and
          [(4) not less than 30 percent of the amount available 
        for grants in each fiscal year is used for activities 
        relating to persuading school dropouts to return to 
        school and assisting former school dropouts with 
        specialized services once school dropouts return to 
        school.
  [(b) Administrative Costs.--Not more than five percent of any 
grant made under this part may be used for administrative 
costs.

[SEC. 5307. REPORTS.

  [(a) Annual Reports.--The Secretary shall submit to the 
Congress a report by January 1 of each year, beginning on 
January 1, 1995, which sets forth the progress of the 
Commissioner of Education Statistics, established under section 
403(b) of the National Education Statistics Act of 1994, to 
implement a definition and data collection process for school 
dropouts in elementary and secondary schools, including 
statistical information for the number and percentage of 
elementary and secondary school students by gender, race, and 
ethnic origin who drop out of school each year, including 
dropouts--
          [(1) throughout the Nation by rural and urban 
        location as defined by the Secretary; and
          [(2) in each of the individual States and the 
        District of Columbia.
  [(b) Recommendations.--The report under subsection (a) shall 
also contain recommendations on ways in which the Federal 
Government, States and localities can further support the 
implementation of an effective methodology to accurately 
measure school dropout and retention rates on the national, 
State, and local levels.

[SEC. 5308. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $50,000,000 for 
fiscal year 1995, and such sums as may be necessary for each of 
the 4 succeeding fiscal years, to carry out this part.]

      TITLE V--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

                    PART A--MAGNET SCHOOL ASSISTANCE

SEC. 5101. FINDINGS.

  The Congress finds that--
          (1) magnet schools are a significant part of our 
        Nation's effort to achieve voluntary desegregation in 
        our Nation's schools;
          (2) the use of magnet schools has increased 
        dramatically since the date of enactment of the Magnet 
        Schools Assistance program, with approximately 
        2,000,000 students nationwide now attending such 
        schools, of which more than 65 percent of the students 
        are nonwhite;
          (3) magnet schools offer a wide range of distinctive 
        programs that have served as models for school 
        improvement efforts;
          (4) in administering the Magnet Schools Assistance 
        program, the Federal Government has learned that--
                  (A) where magnet programs are implemented for 
                only a portion of a school's student body, 
                special efforts must be made to discourage the 
                isolation of--
                          (i) magnet school students from other 
                        students in the school; and
                          (ii) students by racial 
                        characteristics;
                  (B) local educational agencies can maximize 
                their effectiveness in achieving the purposes 
                of the Magnet Schools Assistance program if 
                such agencies have more flexibility in the 
                administration of such program in order to 
                serve students attending a school who are not 
                enrolled in the magnet school program;
                  (C) local educational agencies must be 
                creative in designing magnet schools for 
                students at all academic levels, so that school 
                districts do not select only the highest 
                achieving students to attend the magnet 
                schools;
                  (D) consistent with desegregation guidelines, 
                local educational agencies must seek to enable 
                participation in magnet school programs by 
                students who reside in the neighborhoods where 
                the programs operate; and
                  (E) in order to ensure that magnet schools 
                are sustained after Federal funding ends, the 
                Federal Government must assist school districts 
                to improve their capacity to continue to 
                operate magnet schools at a high level of 
                performance; and
          (5) it is in the best interest of the Federal 
        Government to--
                  (A) continue the Federal Government's support 
                of school districts implementing court-ordered 
                desegregation plans and school districts 
                voluntarily seeking to foster meaningful 
                interaction among students of different racial 
                and ethnic backgrounds, beginning at the 
                earliest stage of such students' education;
                  (B) ensure that all students have equitable 
                access to quality education that will prepare 
                such students to function well in a 
                technologically oriented society and a highly 
                competitive economy;
                  (C) 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) ensure that grant recipients provide 
                adequate data which demonstrates an ability to 
                improve student achievement.

SEC. 5102. 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 
        content standards and challenging State student 
        performance 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. 5103. 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. 5104. 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. 5105. ELIGIBILITY.

  A local educational agency, or consortium of such agencies 
where appropriate, is eligible to receive assistance under this 
part to carry out the purposes 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. 5106. 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 
                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 
                purposes specified in section 5102;
                  (B) employ fully qualified teachers (as 
                defined in section 1119) 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. 5107. 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. 5108. 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 (as defined in section 
        1119), and instructional staff where applicable, who 
        are necessary for the conduct of programs in magnet 
        schools;
          (4) with respect to a magnet school program offered 
        to less than the entire student population of a school, 
        for instructional activities that--
                  (A) are designed to make available the 
                special curriculum that is offered by the 
                magnet school project to students who are 
                enrolled in the school but who are not enrolled 
                in the magnet school program; and
                  (B) further the purposes of this 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.
  (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 content standards and challenging 
student performance 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. 5109. 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. 5110. 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. 5111. EVALUATIONS.

  (a) Reservation.--The Secretary may reserve not more than two 
percent of the funds appropriated under section 5112(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. 5112. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

  (a) Authorization.--For the purpose of carrying out this 
part, there are authorized to be appropriated $120,000,000 for 
fiscal year 2000 and such sums as may be necessary for each of 
fiscal years 2001 through 2004.
  (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.

                      PART B--PUBLIC SCHOOL CHOICE

SEC. 5201. SHORT TITLE.

  This part may be cited as the ``Public School Choice Act of 
1999''.

SEC. 5202. FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds that--
          (1) a wide variety of educational opportunities, 
        options, and choices in the public school system is 
        needed to help all children achieve to high standards;
          (2) high-quality public school choice programs that 
        are genuinely open and accessible to all students 
        (including poor, minority, limited English proficient, 
        and disabled students) broaden educational 
        opportunities and promote excellence in education;
          (3) current research shows that--
                  (A) students learn in different ways, 
                benefiting from different teaching methods and 
                instructional settings; and
                  (B) family involvement in a child's education 
                is a key factor supporting student achievement;
          (4) public school systems have begun to develop a 
        variety of innovative programs that offer expanded 
        choices to parents and students; and
          (5) the Federal Government should support and expand 
        efforts to give students and parents the high-quality 
        public school choices they seek, to help eliminate 
        barriers to effective public school choice, and to 
        disseminate the lessons learned from high-quality 
        choice programs so that all public schools can benefit 
        from these efforts.
  (b) Purpose.--It is the purpose of this part to identify and 
support innovative approaches to high-quality public school 
choice by providing financial assistance for the demonstration, 
development, implementation, and evaluation of, and 
dissemination of information about, public school choice 
projects that stimulate educational innovation for all public 
schools and contribute to standards-based school reform 
efforts.

SEC. 5203. GRANTS.

  (a) In General.--From funds appropriated under section 
5206(a) and not reserved under section 5206(b), the Secretary 
is authorized to make grants to State and local educational 
agencies to support programs that promote innovative approaches 
to high-quality public school choice.
  (b) Duration.--Grants under this part shall not exceed three 
years.

SEC. 5204. USES OF FUNDS.

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

SEC. 5205. GRANT APPLICATION; PRIORITIES.

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

SEC. 5206. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--For the purpose of carrying out this part, 
there are authorized to be appropriated $20,000,000 for fiscal 
year 2000 and such sums as may be necessary for each of the 4 
succeeding fiscal years.
  (b) Reservation for Evaluation, Technical Assistance, and 
Dissemination.--From the amount appropriated under subsection 
(a) for any fiscal year, the Secretary may reserve not more 
than 5 percent to carry out evaluations under subsection (c), 
to provide technical assistance, and to disseminate 
information.
  (c) Evaluations.--The Secretary may use funds reserved under 
subsection (b) to carry out one or more evaluations of programs 
assisted under this part, which shall, at a minimum, address--
          (1) how, and the extent to which, the programs 
        supported with funds under this part promote 
        educational equity and excellence; and
          (2) the extent to which public schools of choice 
        supported with funds under this part are--
                  (A) held accountable to the public;
                  (B) effective in improving public education; 
                and
                  (C) open and accessible to all students.

SEC. 5207. DEFINITIONS.

  For purposes of this part:
          (1) High-poverty local educational agency.--The term 
        ``high-poverty local educational agency'' means a local 
        educational agency in which--
                  (A) the percentage of children, ages 5 to 17, 
                from families with incomes below the poverty 
                line (as defined by the Office of Management 
                and Budget and revised annually in accordance 
                with section 673(2) of the Community Services 
                Block Grant Act (42 U.S.C. 9902(2))) applicable 
                to a family of the size involved for the most 
                recent fiscal year for which satisfactory data 
                are available is 20 percent or greater; or
                  (B) the number of such children exceeds 
                10,000.
          (2) Other terms.--Other terms used in this part shall 
        have the meaning given such terms in section 14101 (20 
        U.S.C. 8801).

           *       *       *       *       *       *       *

                              ----------                              


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

                       [PART A--INDIAN EDUCATION

[SEC. 9101. FINDINGS.

  [The Congress finds that--
          [(1) the Federal Government has a special 
        responsibility to ensure that educational programs for 
        all American Indian and Alaska Native children and 
        adults--
                  [(A) are based on high-quality, 
                internationally competitive content standards 
                and student performance standards and build on 
                Indian culture and the Indian community;
                  [(B) assist local educational agencies, 
                Indian tribes, and other entities and 
                individuals in providing Indian students the 
                opportunity to achieve such standards; and
                  [(C) meet the special educational and 
                culturally related academic needs of American 
                Indian and Alaska Native students;
          [(2) since the date of 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, for example, 9 percent of Indian 
        students who were eighth graders in 1988 had already 
        dropped out of school by 1990;
          [(5) during the period from 1980 to 1990, the 
        percentage of Indian individuals living at or below the 
        poverty level increased from 24 percent to 31 percent, 
        and the readiness of Indian children to learn is 
        hampered by the high incidence of poverty, 
        unemployment, and health problems among Indian children 
        and their families; and
          [(6) research related specifically to the education 
        of Indian children and adults is very limited, and much 
        of the research is of poor quality or is focused on 
        limited local or regional issues.

[SEC. 9102. PURPOSE.

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

        [Subpart 1--Formula Grants to Local Educational Agencies

[SEC. 9111. PURPOSE.

  [It is the purpose of this subpart 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 content standards 
        and State student performance standards that are used 
        for all students; and
          [(2) are designed to assist Indian students meet 
        those standards and assist the Nation in reaching the 
        National Education Goals.

[SEC. 9112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  [(a) In General.--
          [(1) Enrollment requirements.--A local educational 
        agency shall be eligible for a grant under this subpart 
        for any fiscal year if the number of Indian children 
        eligible under section 9116 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 subpart does not 
        establish a parent committee under section 9114(c)(4) 
        for such grant, an Indian tribe that represents no 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 subpart.

[SEC. 9113. 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 subpart an amount equal to the 
        product of--
                  [(A) the number of Indian children who are 
                eligible under section 9116 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) of 
        this section, a local educational agency or an Indian 
        tribe (as authorized under section 9112(b)) that is 
        eligible for a grant under section 9112, and a school 
        that is operated or supported by the Bureau of Indian 
        Affairs that is eligible for a grant under subsection 
        (d), that submits an application that is approved by 
        the Secretary, shall, subject to appropriations, 
        receive a grant under this subpart in an amount that is 
        not less than $3,000.
          [(2) Consortia.--Local educational agencies may form 
        a consortium for the purpose of obtaining grants under 
        this Act.
          [(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 quality programs.
  [(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.--In addition to the grants awarded under subsection 
(a), and subject to paragraph (2), the Secretary shall allocate 
to the Secretary of the Interior an amount equal to the product 
of--
          [(1) the total number of Indian children enrolled in 
        schools that are operated by--
                  [(A) the Bureau of Indian Affairs; or
                  [(B) an Indian tribe, or an organization 
                controlled or sanctioned by an Indian tribal 
                government, for the children of such tribe 
                under a contract with, or grant from, the 
                Department of the Interior under the Indian 
                Self-Determination Act or the Tribally 
                Controlled Schools Act of 1988 (part B of title 
                V of the Augustus F. Hawkins-Robert T. Stafford 
                Elementary and Secondary School Improvement 
                Amendments of 1988); and
          [(2) the greater of--
                  [(A) the average per-pupil expenditure of the 
                State in which the school is located; or
                  [(B) 80 percent of the average per-pupil 
                expenditure in the United States.
  [(e) Ratable Reductions.--If the sums appropriated for any 
fiscal year under section 9162(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. 9114. APPLICATIONS.

  [(a) Application Required.--Each local educational agency 
that desires to receive a grant under this subpart shall submit 
an application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may reasonably 
require.
  [(b) Comprehensive Program Required.--Each application 
submitted under subsection (a) shall include a 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, and promotes the goals 
        in, the State and local improvement plans, either 
        approved or being developed, under title III of the 
        Goals 2000: Educate America Act or, if such plans are 
        not approved or being developed, with the State and 
        local plans under sections 1111 and 1112 of this Act; 
        and
          [(B) includes academic content and student 
        performance goals for such children, and benchmarks for 
        attaining such goals, that are based on the challenging 
        State standards adopted under title I for all children;
          [(3) explains how Federal, State, and local programs, 
        especially under title I, will meet the needs of such 
        students;
          [(4) demonstrates how funds made available under this 
        subpart will be used for activities described in 
        section 9115;
          [(5) describes the professional development 
        opportunities that will be provided, as needed, to 
        ensure that--
                  [(A) teachers and other school professionals 
                who are new to the Indian community are 
                prepared to work with Indian children; and
                  [(B) all teachers who will be involved in 
                programs assisted under this subpart have been 
                properly trained to carry out such programs; 
                and
          [(6) describes how the local educational agency--
                  [(A) will periodically assess the progress of 
                all Indian children enrolled in the schools of 
                the local educational agency, including Indian 
                children who do not participate in programs 
                assisted under this subpart, in meeting the 
                goals described in paragraph (2);
                  [(B) will provide the results of each 
                assessment referred to in subparagraph (A) to--
                          [(i) the committee of parents 
                        described in subsection (c)(4); and
                          [(ii) the community served by the 
                        local educational agency; and
                  [(C) is responding to findings of any 
                previous assessments that are similar to the 
                assessments described in subparagraph (A).
  [(c) Assurances.--Each application submitted under subsection 
(a) shall include assurances that--
          [(1) the local educational agency will use funds 
        received under this subpart only to supplement the 
        level of funds that, in the absence of the Federal 
        funds made available under this subpart, such agency 
        would make available for the education of Indian 
        children, and not to supplant such funds;
          [(2) the local educational agency will 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 subpart; and
                  [(B) determine the extent to which funds 
                provided to the local educational agency under 
                this subpart are effective in improving the 
                educational achievement of Indian students 
                served by such agency;
          [(3) the program for which assistance is sought--
                  [(A) is based on a local assessment and 
                prioritization of the special educational and 
                culturally related academic needs of the 
                American Indian and Alaska Native students for 
                whom the local educational agency is providing 
                an education;
                  [(B) will use the best available talents and 
                resources, including individuals from the 
                Indian community; and
                  [(C) was developed by such agency in open 
                consultation with parents of Indian children 
                and teachers, and, if appropriate, Indian 
                students from secondary schools, including 
                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) the membership of which is at least more 
                than one-half 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 9115(c), 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 Indians and Alaskan Native 
                        students; and
                  [(E) has adopted reasonable bylaws for the 
                conduct of the activities of the committee and 
                abides by such bylaws.

[SEC. 9115. AUTHORIZED SERVICES AND ACTIVITIES.

  [(a) General Requirements.--Each local educational agency 
that receives a grant under this subpart shall use the grant 
funds, in a manner consistent with the purpose specified in 
section 9111, for services and activities that--
          [(1) are designed to carry out the comprehensive plan 
        of the local educational agency for Indian students, 
        and described in the application of the local 
        educational agency submitted to the Secretary under 
        section 9114(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 content 
        standards and State student performance standards;
          [(4) integrated educational services in combination 
        with other programs that meet the needs of Indian 
        children and their families;
          [(5) school-to-work transition activities to enable 
        Indian students to participate in programs such as the 
        programs supported by the School-to-Work Opportunities 
        Act of 1994 and 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; and
          [(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to meet the 
        purpose described in section 9111.
  [(c) Schoolwide Programs.--Notwithstanding any other 
provision of law, a local educational agency may use funds made 
available to such agency under this subpart to support a 
schoolwide program under section 1114 if--
          [(1) the committee composed of parents established 
        pursuant to section 9114(c)(4) approves the use of the 
        funds for the schoolwide program; and
          [(2) the schoolwide program is consistent with the 
        purpose described in section 9111.

[SEC. 9116. STUDENT ELIGIBILITY FORMS.

  [(a) In General.--The Secretary shall require that, as part 
of an application for a grant under this subpart, each 
applicant shall maintain a file, with respect to each Indian 
child for whom the local educational agency provides a free 
public education, that contains a form that sets forth 
information establishing the status of the child as an Indian 
child eligible for assistance under this subpart and that 
otherwise meets the requirements of subsection (b).
  [(b) Forms.--
          [(1) In general.--The form described in subsection 
        (a) shall include--
                  [(A) either--
                          [(i)(I) the name of the tribe or band 
                        of Indians (as defined in section 
                        9161(4)) 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 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 9113, 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 defined in section 9161(4)) 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 9113.
  [(c) Statutory Construction.--Nothing in this section shall 
be construed to affect a definition contained in section 9161.
  [(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 9113, 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 underthis subpart, the Secretary 
shall conduct a monitoring and evaluation review of a sampling of the 
recipients of grants under this subpart. The sampling conducted under 
this subparagraph shall take into account 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 subpart shall--
                  [(A) be ineligible to apply for any other 
                grant under this subpart; and
                  [(B) be liable to the United States for any 
                funds that have not been expended.
          [(3) Excluded children.--A student who provides false 
        information for the form required under subsection (d) 
        shall not be counted for the purpose of computing the 
        amount of a grant under section 9113.
  [(g) Distribution.--For the purposes of the distribution of 
funds under this subpart to schools that receive funding from 
the Bureau of Indian Affairs pursuant to--
          [(1) section 1130 of the Education Amendments of 
        1978; and
          [(2) the Act of April 16, 1934 (48 Stat. 596, chapter 
        147),
the Secretary shall, in lieu of meeting the requirements of 
this section for counting Indian children, use a count of the 
number of students in such schools certified by the Bureau of 
Indian Affairs.

[SEC. 9117. PAYMENTS.

  [(a) In General.--Subject to subsections (b) and (c), the 
Secretary shall pay to each local educational agency that 
submits an application that is approved by the Secretary under 
this subpart the amount determined under section 9113. The 
Secretary shall notify the local educational agency of the 
amount of the payment not later than June 1 of the year for 
which the Secretary makes the payment.
  [(b) Payments Taken Into Account by the State.--The Secretary 
may not make a grant under this subpart to a local educational 
agency for a fiscal year if, for such fiscal year, the State in 
which the local educational agency is located takes into 
consideration payments made under this subpart (or under 
subpart 1 of the Indian Education Act of 1988) 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 9113 for any fiscal year 
        unless the State educational agency notifies the 
        Secretary, and the Secretary determines, that with 
        respect to the provision of free public education by 
        the local educational agency for the preceding fiscal 
        year, that the combined fiscal effort of the local 
        educational agency and the State, computed on either a 
        per student or aggregate expenditure basis was not less 
        than 90 percent of the amount of the combined fiscal 
        effort, computed on the same basis, for the second 
        preceding fiscal year.
          [(2) Failure.--If, for any fiscal year, the Secretary 
        determines that a local educational agency 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 subpart 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 one 
        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 subpart, any amounts that--
          [(1) based on estimates made by local educational 
        agencies or other information, the Secretary determines 
        will not be needed by such agencies to carry out 
        approved programs under this subpart; or
          [(2) otherwise become available for reallocation 
        under this subpart.

[SEC. 9118. STATE EDUCATIONAL AGENCY REVIEW.

  [(a) Application.--Each entity desiring assistance 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 reasonably require except that this subsection 
shall not apply to Bureau-funded schools.
  [(b) Special Rule.--Before submitting an application under 
subsection (a) to the Secretary, the entity shall submit its 
application to the State educational agency. The State 
educational agency may comment on such application, however if 
such agency comments on such application such agency shall 
comment on all applications submitted by entities within the 
State and shall provide such comments to the appropriate local 
educational agency, which local educational agency shall be 
given an opportunity to respond to such comments.

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

[SEC. 9121.  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 subpart with--
                  [(A) other programs funded under this Act; 
                and
                  [(B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native 
                children.
  [(b) Eligible Entities.--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 deprived 
                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 
                special health, social, and psychological 
                problems of Indian children;
                  [(E) special compensatory and other programs 
                and projects designed to assist and encourage 
                Indian children to enter, remain in, or reenter 
                school, and to increase the rate of secondary 
                school graduation;
                  [(F) comprehensive guidance, counseling, and 
                testing services;
                  [(G) early childhood and kindergarten 
                programs, including family-based preschool 
                programs that emphasize school readiness and 
                parental skills, and the provision of services 
                to Indian children with disabilities;
                  [(H) partnership projects between local 
                educational agencies and institutions of higher 
                education that allow secondary school students 
                to enroll in courses at the postsecondary level 
                to aid such students in the transition from 
                secondary school to postsecondary education;
                  [(I) partnership projects between schools and 
                local businesses for school-to-work transition 
                programs designed to provide Indian youth with 
                the knowledge and skills the youth need to make 
                an effective transition from school to a first 
                job in a high-skill, high-wage career;
                  [(J) programs designed to encourage and 
                assist Indian students to work toward, and gain 
                entrance into, an institution of higher 
                education; or
                  [(K) other services that meet the purpose 
                described in subsection (a)(1).
          [(2) Preservice or inservice training.--Preservice or 
        inservice training of professional and paraprofessional 
        personnel may be a part of any program assisted under 
        this section.
  [(d) Grant Requirements and Applications.--
          [(1) Grant requirements.--(A) 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 a 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 subsection 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) shall contain--
                  [(i) a description of how parents of Indian 
                children and representatives of Indian tribes 
                have been, and will be, involved in developing 
                and implementing the activities for which 
                assistance is sought;
                  [(ii) assurances that the applicant will 
                participate, at the request of the Secretary, 
                in any national evaluation of activities 
                assisted under this section; and
                  [(iii) such other assurances and information 
                as the Secretary may reasonably require.

[SEC. 9122. PROFESSIONAL DEVELOPMENT.

  [(a) Purposes.--The purposes of this section are--
          [(1) to increase the number of qualified Indian 
        individuals in 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 education, the training received 
        pursuant to a grant under this section shall be in a 
        program that results in a graduate degree.
  [(e) Application.--
          [(1) In general.--Each eligible entity desiring a 
        grant under this section shall submit an application to 
        the Secretary at such time, in such manner and 
        accompanied by such information, as the Secretary may 
        reasonably require.
          [(2) Preference.--In awarding grants under this 
        section, the Secretary shall give preference to 
        applications describing programs that train Indian 
        individuals.
  [(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 program 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).

[SEC. 9123. FELLOWSHIPS FOR INDIAN STUDENTS.

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

[SEC. 9124. GIFTED AND TALENTED.

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

[SEC. 9125.  GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE PLANNING AND 
                    DEVELOPMENT.

  [(a) In General.--The Secretary may make grants to Indian 
tribes, and tribal organizations approved by Indian tribes, to 
plan and develop a centralized tribal administrative entity 
to--
          [(1) coordinate all education programs operated by 
        the tribe or within the territorial jurisdiction of the 
        tribe;
          [(2) develop education codes for schools within the 
        territorial jurisdiction of the tribe;
          [(3) provide support services and technical 
        assistance to schools serving children of the tribe; 
        and
          [(4) perform child-find screening services for the 
        preschool-aged children of the tribe to--
                  [(A) ensure placement in appropriate 
                educational facilities; and
                  [(B) coordinate the provision of any needed 
                special services for conditions such as 
                disabilities and English language skill 
                deficiencies.
  [(b) Period of Grant.--Each grant under this section may be 
awarded for a period of not more than 3 years, except that such 
grant may be renewed upon the termination of the initial period 
of the grant if the grant recipient demonstrates to the 
satisfaction of the Secretary that renewing the grant for an 
additional 3-year period is necessary to carry out the 
objectives of the grant described in subsection (c)(2)(A).
  [(c) Application for Grant.--
          [(1) In general.--Each Indian tribe and tribal 
        organization desiring a grant under this section shall 
        submit an application to the Secretary at such time, in 
        such manner, containing such information, and 
        consistent with such criteria, as the Secretary may 
        prescribe in regulations.
          [(2) Contents.--Each application described in 
        paragraph (1) shall contain--
                  [(A) a statement describing the activities to 
                be conducted, and the objectives to be 
                achieved, under the grant; and
                  [(B) a description of the method to be used 
                for evaluating the effectiveness of the 
                activities for which assistance is sought and 
                determining whether such objectives are 
                achieved.
          [(3) Approval.--The Secretary may approve an 
        application submitted by a tribe or tribal organization 
        pursuant to this section only if the Secretary is 
        satisfied that such application, including any 
        documentation submitted with the application--
                  [(A) demonstrates that the applicant has 
                consulted with other education entities, if 
                any, within the territorial jurisdiction of the 
                applicant who will be affected by the 
                activities to be conducted under the grant;
                  [(B) provides for consultation with such 
                other education entities in the operation and 
                evaluation of the activities conducted under 
                the grant; and
                  [(C) demonstrates that there will be adequate 
                resources provided under this section or from 
                other sources to complete the activities for 
                which assistance is sought, except that the 
                availability of such other resources shall not 
                be a basis for disapproval of such application.
  [(d) Restriction.--A tribe may not receive funds under this 
section if such tribe receives funds under section 1144 of the 
Indian Education Amendments of 1978.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Department of Education $3,000,000 
for each of the fiscal years 1995 through 1999 to carry out 
this section.

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

[SEC. 9131.  IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT 
                    INDIANS.

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

                [Subpart 4--National Research Activities

[SEC. 9141. NATIONAL ACTIVITIES.

  [(a) Authorized Activities.--The Secretary may use funds made 
available under section 9162(b) for each fiscal year to--
          [(1) conduct research related to effective approaches 
        for the education of Indian children and adults;
          [(2) evaluate federally assisted education programs 
        from which Indian children and adults may benefit;
          [(3) collect and analyze data on the educational 
        status and needs of Indians; and
          [(4) carry out other activities that are consistent 
        with the purpose of this part.
  [(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through 
grants to, or contracts or cooperative agreements with Indian 
tribes, Indian organizations, State educational agencies, local 
educational agencies, institutions of higher education, 
including Indian institutions of higher education, and other 
public and private agencies and institutions.
  [(c) Coordination.--Research activities supported under this 
section--
          [(1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        assure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by the Office; and
          [(2) may include collaborative research activities 
        which are jointly funded and carried out by the Office 
        of Indian Education and the Office of Educational 
        Research and Improvement.

                   [Subpart 5--Federal Administration

[SEC. 9151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  [(a) Membership.--There is established a National Advisory 
Council on Indian Education (hereafter in this section referred 
to as the ``Council''), which shall--
          [(1) consist of 15 Indian members, who shall be 
        appointed by the President from lists of nominees 
        furnished, from time to time, by Indian tribes and 
        organizations; and
          [(2) represent different geographic areas of the 
        United States.
  [(b) Duties.--The Council shall--
          [(1) advise the Secretary concerning the funding and 
        administration (including the development of 
        regulations and administrative policies and practices) 
        of any program, including any program established under 
        this part--
                  [(A) with respect to which the Secretary has 
                jurisdiction; and
                  [(B)(i) that includes Indian children or 
                adults as participants; or
                  [(ii) that may benefit Indian children or 
                adults;
          [(2) make recommendations to the Secretary for 
        filling the position of Director of Indian Education 
        whenever a vacancy occurs; and
          [(3) submit to 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. 9152. PEER REVIEW.

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

[SEC. 9153. PREFERENCE FOR INDIAN APPLICANTS.

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

[SEC. 9154. MINIMUM GRANT CRITERIA.

  [The Secretary may not approve an application for a grant 
under subpart 2 or 3 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.

       [Subpart 6--Definitions; Authorizations of Appropriations

[SEC. 9161. DEFINITIONS.

  [As used in this part:
          [(1) Adult.--The term ``adult'' means an individual 
        who--
                  [(A) has attained the age of 16 years; or
                  [(B) has attained an age that is greater than 
                the age of compulsory school attendance under 
                an applicable State law.
          [(2) Adult education.--The term ``adult education'' 
        has the meaning given such term in section 203 of the 
        Adult Education and Family Literacy Act.
          [(3) 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.
          [(4) 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 enactment of the Act 
                entitled the ``Improving America's Schools Act 
                of 1994''.

[SEC. 9162. AUTHORIZATIONS OF APPROPRIATIONS.

  [(a) Subpart 1.--For the purpose of carrying out subpart 1 of 
this part, there are authorized to be appropriated to the 
Department of Education $61,300,000 for fiscal year 1995 and 
such sums as may be necessary for each of the four succeeding 
fiscal years.
  [(b) Subparts 2 Through 4.--For the purpose of carrying out 
subparts 2, 3, and 4 of this part, there are authorized to be 
appropriated to the Department of Education $26,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the four succeeding fiscal years.
  [(c) Subpart 5.--For the purpose of carrying out subpart 5 of 
this part, there are authorized to be appropriated to the 
Department of Education $3,775,000 for fiscal year 1995 and 
such sums as may be necessary for each of the four succeeding 
fiscal years.

                       [PART B--NATIVE HAWAIIANS

[SEC. 9201. SHORT TITLE.

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

[SEC. 9202. FINDINGS.

  [The Congress finds and declares as follows:
          [(1) Native Hawaiians are a distinct and unique 
        indigenous people with a historical continuity to the 
        original inhabitants of the Hawaiian archipelago, whose 
        society was organized as a nation and internationally 
        recognized as such by the United States, Britain, 
        France, and Japan, as evidenced by treaties governing 
        friendship, commerce, and navigation.
          [(2) At the time of the arrival of the first non-
        indigenous people in Hawai`i in 1778, the Native 
        Hawaiian people lived in a highly organized, self-
        sufficient subsistence social system based on a 
        communal land tenure system with a sophisticated 
        language, culture, and religion.
          [(3) A unified monarchial government of the Hawaiian 
        Islands was established in 1810 under Kamehameha I, the 
        first King of Hawai`i.
          [(4) From 1826 until 1893, the United States 
        recognized the sovereignty and independence of the 
        Kingdom of Hawai`i, which was established in 1810 under 
        Kamehameha I, extended full and complete diplomatic 
        recognition to the Kingdom of Hawai`i, and entered into 
        treaties and conventions with the Kingdom of Hawai`i to 
        govern friendship, commerce and navigation in 1826, 
        1842, 1849, 1875, and 1887.
          [(5) In 1893, the sovereign, independent, 
        internationally recognized, and indigenous government 
        of Hawai`i, the Kingdom of Hawai`i, was overthrown by a 
        small group of non-Hawaiians, including United States 
        citizens, who were assisted in their efforts by the 
        United States Minister, a United States naval 
        representative, and armed naval forces of the United 
        States. Because of the participation of United States 
        agents and citizens in the overthrow of the Kingdom of 
        Hawai`i, the Congress, on behalf of the people of the 
        United States, apologized to Native Hawaiians for the 
        overthrow and the deprivation of the rights of Native 
        Hawaiians to self-determination through Public Law 103-
        150 (107 Stat. 1510).
          [(6) In 1898, the joint resolution entitled ``A Joint 
        Resolution to provide for annexing the Hawaiian Islands 
        to the United States'', approved July 7, 1898 (30 Stat. 
        750), ceded absolute title of all lands held by the 
        Republic of Hawai`i, including the government and crown 
        lands of the former Kingdom of Hawai`i, to the United 
        States, but mandated that revenue generated from these 
        lands be used ``solely for the benefit of the 
        inhabitants of the Hawaiian Islands for educational and 
        other public purposes''.
          [(7) By 1919, the Native Hawaiian population had 
        declined from an estimated 1,000,000 in 1778 to an 
        alarming 22,600, and in recognition of this severe 
        decline, the Congress in 1921 enacted the Hawaiian 
        Homes Commission Act, 1920, which designated 
        approximately 200,000 acres of ceded public lands for 
        homesteading by Native Hawaiians.
          [(8) Through the enactment of the Hawaiian Homes 
        Commission Act, 1920, the Congress affirmed the special 
        relationship between the United States and the Native 
        Hawaiians, as expressed by then Secretary of the 
        Interior Franklin K. Lane, who was quoted in the 
        committee report for the Hawaiian Homes Commission Act, 
        1920, as saying: ``One thing that impressed me . . . 
        was the fact that the natives of the island who are our 
        wards, I should say, and for whom in a sense we are 
        trustees, are falling off rapidly in numbers and many 
        of them are in poverty.''.
          [(9) In 1938, the United States Congress again 
        acknowledged the unique status of the Hawaiian people 
        by including in the Act of June 20, 1938 (52 Stat. 781 
        et seq.), a provision to lease lands within the 
        National Parks extension to Native Hawaiians and to 
        permit fishing in the area ``only by native Hawaiian 
        residents of said area or of adjacent villages and by 
        visitors under their guidance.''.
          [(10) Under the Act entitled ``An Act to provide for 
        the admission of the State of Hawai`i into the Union'' 
        approved March 18, 1959 (73 Stat. 4), the United States 
        transferred responsibility for the administration of 
        the Hawaiian Home Lands to the State of Hawai`i but 
        reaffirmed the trust relationship which existed between 
        the United States and the Hawaiian people by retaining 
        the exclusive power to enforce the trust, including the 
        power to approve land exchanges and legislative 
        amendments affecting the rights of beneficiaries under 
        such Act.
          [(11) In 1959, under the Act entitled ``An Act to 
        provide for the admission of the State of Hawai`i into 
        the Union'', approved March 18, 1959 (73 Stat. 4), the 
        United States ceded to the State of Hawai`i title to 
        the public lands formerly held by the United States, 
        but mandated that such lands be held by the State ``in 
        public trust' and reaffirmed the special relationship 
        which existed between the United States and the 
        Hawaiian people by retaining the legal responsibility 
        to enforce the public trust responsibility of the State 
        of Hawai`i for the betterment of the conditions of 
        Native Hawaiians, as defined in section 201(a) of the 
        Hawaiian Homes Commission Act, 1920.
          [(12) The United States assumed special 
        responsibilities for Native Hawaiian lands and 
        resources at the time of the annexation of the 
        Territory in 1898, upon adoption of the Hawaiian Homes 
        Commission Act, 1920, and upon admission of the State 
        of Hawai`i into the Union in 1959, and has retained 
        certain of those responsibilities.
          [(13) In recognition of the special relationship 
        which exists between the United States and the Native 
        Hawaiian people, the Congress has extended to Native 
        Hawaiians the same rights and privileges accorded to 
        American Indian, Alaska Native, Eskimo, and Aleut 
        communities under the Native American Programs Act of 
        1974, the American Indian Religious Freedom Act, the 
        National Museum of the American Indian Act, the Native 
        American Graves Protection and Repatriation Act, the 
        National Historic Preservation Act, and the Native 
        American Languages Act.
          [(14) In recognition of the special relationship 
        which exists between the United States and the Native 
        Hawaiian people, the Congress has enacted numerous 
        special provisions of law for the benefit of Native 
        Hawaiians in the areas of health, education, labor, and 
        housing.
          [(15) In 1981, the Senate instructed the Office of 
        Education to submit to the Congress a comprehensive 
        report on Native Hawaiian education. The report, 
        entitled the ``Native Hawaiian Educational Assessment 
        Project'', was released in 1983 and documented that 
        Native Hawaiians scored below parity with national 
        norms on standardized achievement tests, were 
        disproportionately represented in many negative social 
        and physical statistics, indicative of special 
        educational needs, and had educational needs which were 
        related to their unique cultural situation, such as 
        different learning styles and low self-image.
          [(16) In recognition of the educational needs of 
        Native Hawaiians, in 1988, the Congress enacted title 
        IV of the Augustus F. Hawkins-Robert T. Stafford 
        Elementary and Secondary School Improvement Amendments 
        of 1988 to authorize and develop supplemental 
        educational programs to benefit Native Hawaiians.
          [(17) In 1993, the Kamehameha Schools Bishop Estate 
        released a ten-year update of the Native Hawaiian 
        Educational Assessment Project, which found that 
        despite the successes of the programs established under 
        title IV of the Augustus F. Hawkins-Robert T. Stafford 
        Elementary and Secondary School Improvement Amendments 
        of 1988, many of the same educational needs still exist 
        for Native Hawaiians. For example--
                  [(A) educational risk factors continue to 
                start even before birth for many Native 
                Hawaiian children, including--
                          [(i) late or no prenatal care;
                          [(ii) half of Native Hawaiian women 
                        who give birth are unmarried; and
                          [(iii) high rates of births to 
                        teenage parents;
                  [(B) Native Hawaiian students continue to 
                begin their school experience lagging behind 
                other students in terms of readiness factors 
                such as vocabulary test scores;
                  [(C) Native Hawaiian students continue to 
                score below national norms on standardized 
                education achievement tests at all grade 
                levels;
                  [(D) both public and private schools continue 
                to show a pattern of lower percentages of 
                Native Hawaiian students in the uppermost 
                achievement levels and in gifted and talented 
                programs;
                  [(E) Native Hawaiian students continue to be 
                overrepresented among students qualifying for 
                special education programs provided to students 
                with learning disabilities, mild mental 
                retardation, emotional impairment, and other 
                such disabilities;
                  [(F) Native Hawaiians continue to be 
                underrepresented in institutions of higher 
                education and among adults who have completed 
                four or more years of college;
                  [(G) Native Hawaiians continue to be 
                disproportionately represented in many negative 
                social and physical statistics, indicative of 
                special educational needs, for example--
                          [(i) Native Hawaiian students are 
                        more likely to be retained in grade 
                        level and to be excessively absent in 
                        secondary school;
                          [(ii) Native Hawaiian students are 
                        the highest users of drugs and alcohol 
                        in the State of Hawai`i; and
                          [(iii) Native Hawaiian children 
                        continue to be disproportionately 
                        victimized by child abuse and neglect; 
                        and
                  [(H) Native Hawaiians now comprise over 23 
                percent of the students served by the State of 
                Hawai`i Department of Education and there are 
                and will continue to be geographically rural, 
                isolated areas with a high Native Hawaiian 
                population density.
          [(18) The findings described in paragraphs (1) 
        through (17) are contrary to the high rate of literacy 
        and integration of traditional culture and Western 
        education achieved by Native Hawaiians through a 
        Hawaiian language-based public school system 
        established in 1840 by Kamehameha III.
          [(19) After the overthrow of the Kingdom of Hawai`i 
        in 1893, Hawaiian medium schools were banned. After 
        annexation, throughout the territorial and statehood 
        period, and until 1986, use of Hawaiian as a medium of 
        education in public schools was declared unlawful, 
        thereby causing incalculable harm to a culture that 
        placed a very high value on the power of language, as 
        exemplified in the traditional saying: ``I ka ``olelo 
        no ke ola; I ka ``olelo no ka make. In the language 
        rests life; In the language rests death.''.
          [(20) Despite the consequences of over 100 years of 
        nonindigenous influence, the Native Hawaiian people are 
        determined to preserve, develop, and transmit to future 
        generations their ancestral territory, and their 
        cultural identity in accordance with their own 
        spiritual and traditional beliefs, customs, practices, 
        language, and social institutions.
          [(21) The State of Hawai`i, in the constitution and 
        statutes of the State of Hawai`i--
                  [(A) reaffirms and protects the unique right 
                of the Native Hawaiian people to practice and 
                perpetuate their culture and religious customs, 
                beliefs, practices, and language; and
                  [(B) recognizes the traditional language of 
                the Native Hawaiian people as an official 
                language of the State of Hawai`i, which may be 
                used as the language of instruction for all 
                subjects and grades in the public school 
                system.

[SEC. 9203. PURPOSE.

  [It is the purpose of this part to--
          [(1) authorize and develop supplemental educational 
        programs to assist Native Hawaiians in reaching the 
        National Education Goals;
          [(2) provide direction and guidance to appropriate 
        Federal, State, and local agencies to focus resources, 
        including resources made available under this part, on 
        Native Hawaiian education, through the establishment of 
        a Native Hawaiian Education Council, and five island 
        councils;
          [(3) supplement and expand existing programs and 
        authorities in the area of education to further the 
        purposes of the title; and
          [(4) encourage the maximum participation of Native 
        Hawaiians in planning and management of Native Hawaiian 
        Education Programs.

[SEC. 9204.  NATIVE HAWAIIAN EDUCATION COUNCIL AND ISLAND COUNCILS.

  [(a) Establishment of Native Hawaiian Education Council.--In 
order to better effectuate the purposes of this part through 
the coordination of educational and related services and 
programs available to Native Hawaiians, including those 
programs receiving funding under this part, the Secretary is 
authorized to establish a Native Hawaiian Education Council 
(hereafter in this part referred to as the ``Education 
Council'').
  [(b) Composition of Education Council.--The Education Council 
shall consist of not more than 25 members, including a 
representative of--
          [(1) each recipient of funds from the Secretary under 
        this part;
          [(2) the State of Hawai`i Department of Education;
          [(3) the State of Hawai`i Office of Hawaiian Affairs;
          [(4) Native Hawaiian educational organizations, such 
        as Alu Like, Inc., Kamehameha Schools Bishop Estate, 
        Hawaiian Language Immersion Advisory Council, Aha 
        Punana Leo, and the Queen Lili``uokalani Trust and 
        Children's Center; and
          [(5) each Native Hawaiian education island council 
        established under subsection (f).
  [(c) Conditions and Terms.--At least three-fourths of the 
members of the Education Council shall be Native 
Hawaiians.Members of the Education Council shall be appointed for 
three-year terms.
  [(d) Administrative Grant for the Education Council.--The 
Secretary shall make a direct grant to the Education Council in 
order to enable the Education Council to--
          [(1) coordinate the educational and related services 
        and programs available to Native Hawaiians, including 
        the programs assisted under this part, and assess the 
        extent to which such services and programs meet the 
        needs of Native Hawaiians; and
          [(2) provide direction and guidance, through the 
        issuance of reports and recommendations, to appropriate 
        Federal, State, and local agencies in order to focus 
        and improve the use of resources, including resources 
        made available under this part, on Native Hawaiian 
        education.
  [(e) Additional Duties of the Education Council.--
          [(1) In general.--The Education Council shall provide 
        copies of any reports and recommendations issued by the 
        Education Council to the Secretary, the Committee on 
        Indian Affairs of the Senate, and the Committee on 
        Education and Labor of the House of Representatives, 
        including any information that the Education Council 
        provides to the Secretary pursuant to subsection (i).
          [(2) Annual report.--The Education Council shall 
        present to the Secretary an annual report on the 
        Education Council's activities.
          [(3) Island council support and assistance.--The 
        Education Council shall provide such administrative 
        support and financial assistance to the island councils 
        established pursuant to subsection (f) as the Secretary 
        deems appropriate.
  [(f) Establishment of Island Councils.--
          [(1) In general.--In order to better effectuate the 
        purposes of this part and to ensure the adequate 
        representation of island and community interests within 
        the Education Council, the Office of Hawaiian Affairs 
        of the State of Hawai`i is authorized to facilitate the 
        establishment of Native Hawaiian education island 
        councils (hereafter in this part referred to as 
        ``island councils'') for the following islands:
                  [(A) Hawai`i.
                  [(B) Maui and Lana`i.
                  [(C) Moloka`i.
                  [(D) Kaua`i and Ni`ihau.
                  [(E) O`ahu.
          [(2) Composition of island councils.--Each island 
        council shall consist of parents, students, and other 
        community members who have an interest in the education 
        of Native Hawaiians, and shall be representative of the 
        educational needs of all age groups, from preschool 
        through adulthood. At least three-fourths of the 
        members of each island council shall be Native 
        Hawaiians
  [(g) Administrative Provisions Relating to Education Council 
and Island Councils.--The Education Council and each island 
council shall meet at the call of the chairperson of the 
respective council, or upon the request of the majority of the 
members of the respective council, but in any event not less 
than four times during each calendar year. The provisions of 
the Federal Advisory Committee Act shall not apply to the 
Education Council and each island council.
  [(h) Compensation.--Members of the Education Council and each 
island council shall not receive any compensation for services 
on the Education Council and each island council, respectively.
  [(i) Report.--Not later than four years after the date of the 
enactment of the Improving America's Schools Act of 1994, the 
Secretary shall prepare and submit to the Committee on Indian 
Affairs of the Senate, and the Committee on Education and Labor 
of the House of Representatives, a report which summarizes the 
annual reports of the Education Council, describes the 
allocation and utilization of funds under this part, and 
contains recommendations for changes in Federal, State, and 
local policy to advance the purposes of this part.
  [(j) Authorization of Appropriations.--There are authorized 
to be appropriated $500,000 for fiscal year 1995, and such sums 
as may be necessary for each of the 4 succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9205. NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, to expand the operation of 
Family-Based Education Centers throughout the Hawaiian Islands. 
The programs of such centers may be conducted in the Hawaiian 
language, the English language, or a combination thereof, and 
shall include--
          [(1) parent-infant programs for prenatal through 
        three-year-olds;
          [(2) preschool programs for four- and five-year-olds;
          [(3) continued research and development; and
          [(4) a long-term followup and assessment program, 
        which may include educational support services for 
        Native Hawaiian language immersion programs or 
        transition to English speaking programs.
  [(b) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the centers 
described in subsection (a), there are authorized to be 
appropriated $6,000,000 for fiscal year 1995, and such sums as 
may be necessary for each of the four succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9206. NATIVE HAWAIIAN HIGHER EDUCATION PROGRAM.

  [(a) General Authority.--
          [(1) In general.--The Secretary is authorized to make 
        direct grants, to Native Hawaiian educational 
        organizations or educational entities with experience 
        in developing or operating Native Hawaiian programs or 
        programs of instruction conducted in the Native 
        Hawaiian language, to enable such organizations or 
        entities to provide a program of baccalaureate and 
        post-baccalaureate fellowship assistance to Native 
        Hawaiian students.
          [(2) Activities.--Such program may include--
                  [(A) full or partial fellowship support for 
                Native Hawaiian students enrolled at two- or 
                four-year degree granting institutions of 
                higher education with awards to be based on 
                academic potential and financial need; and
                  [(B) full or partial fellowship support for 
                Native Hawaiian students enrolled at post-
                baccalaureate degree granting institutions of 
                higher education with priority given to 
                providing fellowship support for professions in 
                which Native Hawaiians are underrepresented and 
                with fellowship awards to be based on academic 
                potential and financial need;
                  [(C) counseling and support services for 
                students receiving fellowship assistance under 
                paragraph (1);
                  [(D) college preparation and guidance 
                counseling at the secondary school level for 
                students who may be eligible for fellowship 
                support pursuant to subsection (a)(2)(A);
                  [(E) appropriate research and evaluation of 
                the activities authorized by this section; and
                  [(F) implementation of faculty development 
                programs for the improvement and matriculation 
                of Native Hawaiian students.
  [(b) Special Conditions Required.--For the purpose of 
fellowships awarded under subsection (a), fellowship conditions 
shall be established whereby fellowship recipients obtain an 
enforceable contract obligation to provide their professional 
services, either during the fellowship period or upon 
completion of a baccalaureate or post-baccalaureate degree 
program, to the Native Hawaiian community.
  [(c) Special Rule.--No policy shall be made in implementing 
this section to prevent a Native Hawaiian student enrolled at 
an accredited two- or four-year degree granting institution of 
higher education outside of the State of Hawai`i from receiving 
a fellowship pursuant to subsections (a) and (b) of this 
section.
  [(d) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated $2,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9207. NATIVE HAWAIIAN GIFTED AND TALENTED PROGRAM.

  [(a) General Authority.--The Secretary is authorized to make 
a grant, to a Native Hawaiian educational organization or an 
educational entity with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, for a gifted and talented 
program designed to--
          [(1) address the special needs of Native Hawaiian 
        elementary and secondary school students who are gifted 
        and talented students; and
          [(2) provide those support services to the families 
        of such students that are needed to enable such 
        students to benefit from the program.
  [(b) Uses of Funds.--The program funded under this section 
may include--
          [(1) the identification of the special needs of 
        Native Hawaiian gifted and talented students, 
        particularly with respect to--
                  [(A) the emotional and psychosocial needs of 
                such students; and
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such students to benefit from 
                the program;
          [(2) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise 
        of resulting in substantial progress toward meeting the 
        educational needs of such students, including 
        demonstrating and exploring the use of the Native 
        Hawaiian language and exposure to Native Hawaiian 
        cultural traditions;
          [(3) leadership programs designed to--
                  [(A) replicate programs throughout the State 
                of Hawai`i for gifted and talented students who 
                are not served under this section; and
                  [(B) coordinate with other Native American 
                gifted and talented leadership programs, 
                including the dissemination of information 
                derived from the program conducted under this 
                section; and
          [(4) appropriate research, evaluation, and related 
        activities pertaining to--
                  [(A) the needs of such students; and
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such students to benefit from 
                the program.
  [(c) Information Provision.--The Secretary is authorized to 
facilitate the establishment of a national network of Native 
Hawaiian and American Indian Gifted and Talented Centers, and 
ensure that the information developed by these centers shall be 
readily available to the educational community at large.
  [(d) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(e) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the program 
described in this section, there are authorized to be 
appropriated $1,500,000 for fiscal year 1995, and such sums as 
may be necessary for each of the 4 succeeding fiscal years, to 
carry out this section. Funds appropriated under the authority 
of this subsection shall remain available until expended.

[SEC. 9208. NATIVE HAWAIIAN SPECIAL EDUCATION PROGRAM.

  [(a) General Authority.--The Secretary is authorized to make 
grants to, or enter into contracts with, Native Hawaiian 
educational organizations or educational entities with 
experience in developing or operating Native Hawaiian programs 
or programs of instruction conducted in the Native Hawaiian 
language, to operate a program to address the special education 
needs of Native Hawaiian students. Such program may include--
          [(1) the identification of Native Hawaiian students 
        with disabilities or who are otherwise in need of 
        special educational services;
          [(2) the identification of the special education 
        needs of such students, particularly with respect to--
                  [(A) the emotional and psychosocial needs of 
                such students; and
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such students to benefit from 
                the program;
          [(3) the conduct of educational activities consistent 
        with part B of the Education of Individuals with 
        Disabilities Education Act which hold reasonable 
        promise of resulting in substantial progress toward 
        meeting the educational needs of such students;
          [(4) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise 
        of resulting in substantial progress toward meeting the 
        educational needs of such students, including 
        demonstrating and exploring the use of the Native 
        Hawaiian language and exposure to Native Hawaiian 
        cultural traditions; and
          [(5) appropriate research, evaluation, and related 
        activities pertaining to--
                  [(A) the needs of such students;
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such student to benefit from 
                the program; and
                  [(C) the outcomes and benefits of activities 
                assisted under this section upon such students.
  [(b) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the program 
described in this section, there are authorized to be 
appropriated $2,000,000 for fiscal year 1995, and such sums as 
may be necessary for each of the four succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9209. NATIVE HAWAIIAN CURRICULUM DEVELOPMENT, TEACHER TRAINING 
                    AND RECRUITMENT PROGRAM.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, for the following purposes:
          [(1) Curricula.--The development of curricula to 
        address the needs of Native Hawaiian students, 
        particularly elementary and secondary school students, 
        which may include programs of instruction conducted in 
        the Native Hawaiian language, and mathematics and 
        science curricula incorporating the relevant 
        application of Native Hawaiian culture and traditions.
          [(2) Preteacher training.--The development and 
        implementation of preteacher training programs in order 
        to ensure that student teachers within the State of 
        Hawai`i, particularly student teachers who are likely 
        to be employed in schools with a high concentration of 
        Native Hawaiian students, are prepared to better 
        address the unique needs of Native Hawaiian students, 
        within the context of Native Hawaiian culture, language 
        and traditions.
          [(3) Inservice teacher training.--The development and 
        implementation of inservice teacher training programs, 
        in order to ensure that teachers, particularly teachers 
        employed in schools with a high concentration of Native 
        Hawaiian students, are prepared to better address the 
        unique needs of Native Hawaiian students, within the 
        context of Native Hawaiian culture, language and 
        traditions.
          [(4) Teacher recruitment.--The development and 
        implementation of teacher recruitment programs to meet 
        the objectives of--
                  [(A) enhancing teacher recruitment within 
                communities with a high concentration of Native 
                Hawaiian students; and
                  [(B) increasing the numbers of teachers who 
                are of Native Hawaiian ancestry.
  [(b) Priority.--In awarding grants under this section, the 
Secretary shall give priority to awarding grants for activities 
described in subsection (a) that--
          [(1) focus on the needs of at-risk youth; or
          [(2) employ a program of instruction conducted in the 
        Native Hawaiian language, except that entities 
        receiving grants awarded pursuant to subsection (a)(2) 
        shall coordinate in the development of new curricula.
  [(c) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $2,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9210. NATIVE HAWAIIAN COMMUNITY-BASED EDUCATION LEARNING CENTERS.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to collaborative efforts between community-based 
Native Hawaiian organizations and community colleges, to 
develop, establish, and operate a minimum of three community-
based education learning centers.
  [(b) Purpose.--The learning centers described in subsection 
(a) shall meet the needs of families and communities through 
interdepartmental and interagency coordination of new and 
existing public and private programs and services, which may 
include--
          [(1) preschool programs;
          [(2) after-school programs; and
          [(3) vocational and adult education programs.
  [(c) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $1,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9211. ADMINISTRATIVE PROVISIONS.

  [(a) Application Required.--No grant may be made under this 
part, nor any contract be entered into under this part, 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 
title.
  [(b) Special Rule.--Each application submitted under this 
title shall be accompanied by the comments of each local 
educational agency serving students who will participate in the 
project for which assistance is sought.

[SEC. 9212. DEFINITIONS.

  [For the purposes of this part--
          [(1) The term ``Native Hawaiian'' means any 
        individual who is--
                  [(A) a citizen of the United States; and
                  [(B) a descendant of the aboriginal people, 
                who prior to 1778, occupied and exercised 
                sovereignty in the area that now comprises the 
                State of Hawai`i, as evidenced by--
                          [(i) genealogical records;
                          [(ii) Kupuna (elders) or Kama`aina 
                        (long-term community residents) 
                        verification; or
                          [(iii) certified birth records.
          [(2) The term ``Native Hawaiian educational 
        organization'' means a private nonprofit organization 
        that--
                  [(A) serves the interests of Native 
                Hawaiians;
                  [(B) has Native Hawaiians in substantive and 
                policymaking positions within the organization;
                  [(C) has a demonstrated expertise in the 
                education of Native Hawaiian youth; and
                  [(D) has demonstrated expertise in research 
                and program development.
          [(3) The term ``Native Hawaiian Organization'' means 
        a private nonprofit organization that--
                  [(A) serves the interests of Native 
                Hawaiians;
                  [(B) has Native Hawaiians in substantive and 
                policymaking positions within the 
                organizations; and
                  [(C) is recognized by the Governor of Hawai`i 
                for the purpose of planning, conducting, or 
                administering programs (or portions of 
                programs) for the benefit of Native Hawaiians.
          [(4) The term ``Native Hawaiian language'' means the 
        single Native American language indigenous to the 
        original inhabitants of the State of Hawai`i.
          [(5) The term ``Office of Hawaiian Affairs'' means 
        the Office of Hawaiian Affairs established by the 
        Constitution of the State of Hawai`i.
          [(6) The term ``Native Hawaiian community-based 
        organization'' means any organization which is composed 
        primarily of Native Hawaiians from a specific community 
        and which assists in the social, cultural and 
        educational development of Native Hawaiians in that 
        community.]

                        PART A--INDIAN EDUCATION

SEC. 9101. FINDINGS.

  Congress finds that--
          (1) the Federal Government has a special 
        responsibility to ensure that educational programs for 
        all American Indian and Alaska Native children and 
        adults--
                  (A) are based on high-quality, 
                internationally competitive content standards 
                and student performance standards and build on 
                Indian culture and the Indian community;
                  (B) assist local educational agencies, Indian 
                tribes, and other entities and individuals in 
                providing Indian students the opportunity to 
                achieve 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 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. 9102. PURPOSE.

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

        Subpart 1--Formula Grants to Local Educational Agencies

SEC. 9111. PURPOSE.

  It is the purpose of this subpart 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 content standards 
        and State student performance 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. 9112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  (a) In General.--
          (1) Enrollment requirements.--A local educational 
        agency shall be eligible for a grant under this subpart 
        for any fiscal year if the number of Indian children 
        eligible under section 9117 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 subpart does not 
        establish a parent committee under section 9114(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 subpart, except that any 
        such tribe is not subject to section 9114(c)(4), 
        section 9118(c), or section 9119.

SEC. 9113. 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 subpart an amount equal to the 
        product of--
                  (A) the number of Indian children who are 
                eligible under section 9117 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 9112(b)) that is eligible for 
        a grant under section 9112, and a school that is 
        operated or supported by the Bureau of Indian Affairs 
        that is eligible for a grant under subsection (d), that 
        submits an application that is approved by the 
        Secretary, shall, subject to appropriations, receive a 
        grant under this subpart in an amount that is not less 
        than $3,000.
          (2) Consortia.--Local educational agencies may form a 
        consortium for the purpose of obtaining grants under 
        this subpart.
          (3) Increase.--The Secretary may increase the minimum 
        grant under paragraph (1) to not more than $4,000 for 
        all grantees if the Secretary 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 subpart shall submit an 
application in accordance with section 9114, and shall 
otherwise be treated as a local educational agency for the 
purpose of this subpart, except that such school shall not be 
subject to section 9114(c)(4), section 9118(c), or section 
9119.
  (e) Ratable Reductions.--If the sums appropriated for any 
fiscal year under section 9162(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. 9114. APPLICATIONS.

  (a) Application Required.--Each local educational agency that 
desires to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably 
require.
  (b) Comprehensive Program Required.--Each application 
submitted under subsection (a) shall include a 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 
        subpart will be used for activities described in 
        section 9115;
          (5) describes the professional development 
        opportunities that will be provided, as needed, to 
        ensure that--
                  (A) teachers and other school professionals 
                who are new to the Indian community are 
                prepared to work with Indian children; and
                  (B) all teachers who will be involved in 
                programs assisted under this subpart have been 
                properly trained to carry out such programs; 
                and
          (6) describes how the local educational agency--
                  (A) will periodically assess the progress of 
                all Indian children enrolled in the schools of 
                the local educational agency, including Indian 
                children who do not participate in programs 
                assisted under this subpart, in meeting the 
                goals described in paragraph (2);
                  (B) will provide the results of each 
                assessment referred to in subparagraph (A) to--
                          (i) the committee of parents 
                        described in subsection (c)(4); and
                          (ii) the community served by the 
                        local educational agency; and
                  (C) is responding to findings of any previous 
                assessments that are similar to the assessments 
                described in subparagraph (A).
  (c) Assurances.--Each application submitted under subsection 
(a) shall include assurances that--
          (1) the local educational agency will use funds 
        received under this subpart only to supplement the 
        level of funds that, in the absence of the Federal 
        funds made available under this subpart, such agency 
        would make available for the education of Indian 
        children, and not to supplant such funds;
          (2) the local educational agency will 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 subpart; and
                  (B) determine the extent to which funds 
                provided to the local educational agency under 
                this subpart are effective in improving the 
                educational achievement of Indian students 
                served by such agency;
          (3) the program for which assistance is sought--
                  (A) is based on a comprehensive local 
                assessment and prioritization of the unique 
                educational and culturally related academic 
                needs of the American Indian and Alaska Native 
                students 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 
                9115(c), 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) has adopted reasonable bylaws for the 
                conduct of the activities of the committee and 
                abides by such bylaws.

SEC. 9115. AUTHORIZED SERVICES AND ACTIVITIES.

  (a) General Requirements.--Each local educational agency that 
receives a grant under this subpart shall use the grant funds, 
in a manner consistent with the purpose specified in section 
9111, 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 9114(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 content standards 
        and State student performance standards;
          (4) integrated educational services in combination 
        with other programs that meet the needs of Indian 
        children and their families;
          (5) career preparation activities to enable Indian 
        students to participate in programs such as the 
        programs supported by 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 9111; 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 subpart to support a schoolwide 
program under section 1114 if--
          (1) the committee composed of parents established 
        pursuant to section 9114(c)(4) approves the use of the 
        funds for the schoolwide program; and
          (2) the schoolwide program is consistent with the 
        purpose described in section 9111.
  (d) Limitation on Administrative Costs.--Not more than 5 
percent of the funds provided to a grantee under this subpart 
for any fiscal year may be used for administrative purposes.

SEC. 9116. INTEGRATION OF SERVICES AUTHORIZED.

  (a) Plan.--An entity receiving funds under this subpart may 
submit a plan to the Secretary for the integration of education 
and related services provided to Indian students.
  (b) 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 any Federal program, or portion 
thereof, 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 subpart;
          (4) describe the way in which services are to be 
        integrated and delivered and the results expected from 
        the plan;
          (5) identify the projected expenditures under the 
        plan in a single budget;
          (6) identify the 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 9114(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 subpart 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 date of enactment of the Student 
Results Act of 1999, 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 part shall be 
construed so as to interfere with the ability of the Secretary 
or the lead agency to fulfill the responsibilities for the 
safeguarding of Federal funds pursuant to 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 Student Results Act of 
        1999, 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 Student Results Act of 
        1999, 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. 9117. STUDENT ELIGIBILITY FORMS.

  (a) In General.--The Secretary shall require that, as part of 
an application for a grant under this subpart, each applicant 
shall maintain a file, with respect to each Indian child for 
whom the local educational agency provides a free public 
education, that contains a form that sets forth information 
establishing the status of the child as an Indian child 
eligible for assistance under this subpart and that otherwise 
meets the requirements of subsection (b).
  (b) Forms.--
          (1) In general.--The form described in subsection (a) 
        shall include--
                  (A) either--
                          (i)(I) the name of the tribe or band 
                        of Indians (as described in section 
                        9161(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 9113, 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 9161(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 9113.
  (c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 9161.
  (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 9113, 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 subpart, the Secretary 
        shall conduct a monitoring and evaluation review of a 
        sampling of the recipients of grants under this 
        subpart. The sampling conducted under this subparagraph 
        shall take into account the size of 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 subpart shall--
                  (A) be ineligible to apply for any other 
                grant under this part; 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 9113.
  (g) Tribal Grant and Contract Schools.--Notwithstanding any 
other provision of this section, in awarding funds under this 
subpart to a 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 subpart (other than 
in the case described in subsection (g)(1)), the local 
educational agency shall--
          (1) establish a date on, or a period not longer than 
        31 consecutive days during which, the agency counts 
        those children, so long as that date or period occurs 
        before the deadline established by the Secretary for 
        submitting an application under section 9114; 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. 9118. PAYMENTS.

  (a) In General.--Subject to subsections (b) and (c), the 
Secretary shall pay to each local educational agency that 
submits an application that is approved by the Secretary under 
this subpart the amount determined under section 9113. The 
Secretary shall notify the local educational agency of the 
amount of the payment not later than June 1 of the year for 
which the Secretary makes the payment.
  (b) Payments Taken Into Account by the State.--The Secretary 
may not make a grant under this subpart to a local educational 
agency for a fiscal year if, for such fiscal year, the State in 
which the local educational agency is located takes into 
consideration payments made under this subpart in determining 
the eligibility of the local educational agency for State aid, 
or the amount of the State aid, with respect to the free public 
education of children during such fiscal year or the preceding 
fiscal year.
  (c) Reduction of Payment for Failure To Maintain Fiscal 
Effort.--
          (1) In general.--The Secretary may not pay a local 
        educational agency the full amount of a grant award 
        determined under section 9113 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 
                subpart 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 subpart, any amounts that--
          (1) based on estimates made by local educational 
        agencies or other information, the Secretary determines 
        will not be needed by such agencies to carry out 
        approved programs under this subpart; or
          (2) otherwise become available for reallocation under 
        this subpart.

SEC. 9119. STATE EDUCATIONAL AGENCY REVIEW.

  Before submitting an application to the Secretary under 
section 9114, 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, itshall comment on all applications 
submitted by local educational agencies in the State and shall provide 
those comments to the respective local educational agencies, with an 
opportunity to respond.

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

SEC. 9121. 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 subpart with--
                  (A) other programs funded under this Act; and
                  (B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native 
                children.
  (b) Eligible Entities.--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;
                  (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 subpart for any fiscal 
year may be used for administrative purposes.

SEC. 9122. 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 grantunder 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).

                Subpart 3--National Research Activities

SEC. 9141. NATIONAL ACTIVITIES.

  (a) Authorized Activities.--The Secretary may use funds made 
available under section 9162(b) for each fiscal year to--
          (1) conduct research related to effective approaches 
        for the education of Indian children and adults;
          (2) evaluate federally assisted education programs 
        from which Indian children and adults may benefit;
          (3) collect and analyze data on the educational 
        status and needs of Indians; and
          (4) carry out other activities that are consistent 
        with the purpose of this part.
  (b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through 
grants to, or contracts or cooperative agreements with Indian 
tribes, Indian organizations, State educational agencies, local 
educational agencies, institutions of higher education, 
including Indian institutions of higher education, and other 
public and private agencies and institutions.
  (c) Coordination.--Research activities supported under this 
section--
          (1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        assure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by the Office; 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.

                   Subpart 4--Federal Administration

SEC. 9151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  (a) Membership.--There is established a National Advisory 
Council on Indian Education (hereafter in this section referred 
to as the ``Council''), which shall--
          (1) consist of 15 Indian members, who shall be 
        appointed by the President from lists of nominees 
        furnished, from time to time, by Indian tribes and 
        organizations; and
          (2) represent different geographic areas of the 
        United States.
  (b) Duties.--The Council shall--
          (1) advise the Secretary concerning the funding and 
        administration (including the development of 
        regulations and administrative policies and practices) 
        of any program, including any program established under 
        this part--
                  (A) with respect to which the Secretary has 
                jurisdiction; and
                  (B)(i) that includes Indian children or 
                adults as participants; or
                  (ii) that may benefit Indian children or 
                adults;
          (2) make recommendations to the Secretary for filling 
        the position of Director of Indian Education whenever a 
        vacancy occurs; and
          (3) submit to 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. 9152. PEER REVIEW.

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

SEC. 9153. PREFERENCE FOR INDIAN APPLICANTS.

  In making grants under subpart 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. 9154. 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.

        Subpart 5--Definitions; Authorizations of Appropriations

SEC. 9161. DEFINITIONS.

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

SEC. 9162. AUTHORIZATIONS OF APPROPRIATIONS.

  (a) Subpart 1.--For the purpose of carrying out subpart 1 of 
this part, there are authorized to be appropriated $62,000,000 
for fiscal year 2000, and such sums as may be necessary for 
each of fiscal years 2001 through 2004.
  (b) Subparts 2 and 3.--For the purpose of carrying out 
subparts 2 and 3 of this part, there are authorized to be 
appropriated $4,000,000 for fiscal year 2000, and such sums as 
may be necessary for each of the fiscal years 2001 through 
2004.

PART C--ALASKA NATIVE EDUCATION

           *       *       *       *       *       *       *


[SEC. 9304.  ALASKA NATIVE EDUCATIONAL PLANNING, CURRICULUM 
                    DEVELOPMENT, TEACHER TRAINING AND RECRUITMENT 
                    PROGRAM.

  [(a) General Authority.--The Secretary shall make direct 
grants to Alaska Native organizations or educational entities 
with experience in developing or operating Alaska Native 
programs or programs of instruction conducted in Alaska Native 
languages, or to partnerships involving Alaska Native 
organizations, for the following purposes:
          [(1) Educational planning.--The consolidation of 
        existing educational plans, recommendations and 
        research into implementation methods and strategies to 
        improve schooling for Alaska Natives.
          [(2) Implementation of educational plans.--The 
        adoption and implementation of specific educational 
        plans developed under subsection (1) above.
          [(3) Curricula.--The development of curricula to 
        address the needs of Alaska Native students, 
        particularly elementary and secondary school students, 
        which may include innovative programs and pilot and 
        demonstration programs to develop and introduce 
        curriculum materials that reflect cultural diversities 
        or the contributions of Alaska Native people, programs 
        of instruction conducted in Native languages, and the 
        development of networks to introduce successful 
        techniques, programs and curriculum materials to rural 
        and urban schools, including:
                  [(A) multimedia social studies curricula 
                which fully and accurately portray the role of 
                Native Americans historically and 
                contemporarily; and
                  [(B) curricula and teaching materials for 
                instructions in Native languages.
          [(4) Preteacher training.--The development and 
        implementation of preteacher training programs in order 
        to ensure that student teachers within the State of 
        Alaska, particularly student teachers who are likely to 
        be employed in schools with a high concentration of 
        Alaska Native students, are prepared to better address 
        the cultural diversity and unique needs of Alaska 
        Native students;
          [(5) Teacher recruitment.--The development and 
        implementation of teacher recruitment programs to meet 
        the objectives of--
                  [(A) increasing the numbers of teachers who 
                are Alaska Natives;
                  [(B) enhancing teacher recruitment within 
                communities with a high concentration of Alaska 
                Native students; and
                  [(C) improving the teacher selection 
                processes in order to recruit teachers who are 
                more positively responsive to rural conditions 
                and who are suited for effective cross-cultural 
                instruction.
          [(6) Inservice teacher training.--The development and 
        implementation of inservice teacher training programs 
        in order to ensure that teachers are prepared to better 
        address the unique needs of Alaska Native students.
  [(b) Administrative Costs.--Not more than 10 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9305.  ALASKA NATIVE HOME BASED EDUCATION FOR PRESCHOOL CHILDREN.

  [(a) General Authority.--The Secretary shall make direct 
grants to Alaska Native organizations or educational entities 
with experience in developing or operating Alaska Native 
programs, or to partnerships involving Alaska Native 
organizations, to implement home instruction programs for 
Alaska Native preschool youngsters. The objective of such 
programs shall be to develop parents as educators for their 
children and to assure the active involvement of parents in the 
education of their children from the earliest ages.
  [(b) Program Elements.--Home based education programs for 
Alaska Native children shall include--
          [(1) parent-infant programs for prenatal through 
        three-year olds;
          [(2) preschool programs for four- and five-year olds;
          [(3) training, education and support programs to 
        teach parents skills in observation, reading readiness, 
        story telling and critical thinking;
          [(4) continued research and development; and
          [(5) a long-term followup and assessment program.
  [(c) Eligibility of HIPPY Programs.--Programs based on the 
HIPPY (Home Instruction Program for Preschool Youngsters) model 
shall be eligible for funding under this section.
  [(d) Administrative Costs.--Not more than 10 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(e) Authorization of Appropriations.--There is authorized to 
be appropriated $2,000,000 for fiscal year 1995, and such sums 
as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9306. ALASKA NATIVE STUDENT ENRICHMENT PROGRAMS.

  [(a) General Authority.--The Secretary shall make a grant or 
grants to Alaska Native educational organizations or 
educational entities with experience in developing or operating 
Alaska Native programs, or to partnerships including Alaska 
Native organizations, for enrichment programs for Alaska Native 
students in the areas of science and mathematics education. The 
programs shall be designed to--
          [(1) prepare qualified students from rural areas who 
        are preparing to enter village high schools to excel in 
        science and mathematics; and
          [(2) provide those support services to the families 
        of such students that are needed to enable such 
        students to benefit from the program.
  [(b) Uses of Funds.--The program funded under this section 
may include--
          [(1) the identification of the students eligible to 
        participate in the program;
          [(2) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise 
        of resulting in substantial enrichment of the 
        educational performance of the participating students;
          [(3) leadership programs designed to provide for the 
        replication of the program in other subject matter 
        areas and the dissemination of information derived from 
        the program; and
          [(4) appropriate research, evaluation and related 
        activities pertaining to the benefits of such 
        enrichment programs.
  [(c) Administrative Costs.--Not more than 10 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $1,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.]

SEC. 9304. 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 part.
          (2) Permissible activities.--Programs under this part 
        may include--
                  (A) the development and implementation of 
                plans, methods, and strategies to improve the 
                education of Alaska Natives;
                  (B) the development of curricula and 
                educational programs that address the 
                educational needs of Alaska Native students, 
                including--
                          (i) curriculum materials that reflect 
                        the cultural diversity or the 
                        contributions of Alaska Natives;
                          (ii) instructional programs that make 
                        use of Native Alaskan languages; and
                          (iii) networks that introduce 
                        successful programs, materials, and 
                        techniques to urban and rural schools;
                  (C) professional development activities for 
                educators, including--
                          (i) programs to prepare teachers to 
                        address the cultural diversity and 
                        unique needs of Alaska Native students;
                          (ii) in-service programs to improve 
                        the ability of teachers to meet the 
                        unique needs of Alaska Native students; 
                        and
                          (iii) 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 part; and
                  (I) other activities, consistent with the 
                purposes of this part, to meet the educational 
                needs of Alaska Native children and adults.
          (3) Home instruction programs.--Home instruction 
        programs for Alaska Native preschool children 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 $10,000,000 for fiscal year 2000, and such sums 
as may be necessary for each of the fiscal years 2001 through 
2004 to carry out this part.

SEC. [9307.] 9305. ADMINISTRATIVE PROVISIONS.

  (a)  * * *
  [(b) Applications by Local School Districts or State 
Educational Entities.--Local school districts or State 
educational entities shall apply for funding under this part in 
partnership with Alaska Native organizations.]
  (b) Applications.--State and local educational agencies may 
apply for an award under this part only as part of a consortium 
involving an Alaska Native organization. This consortium may 
include other eligible applicants.

           *       *       *       *       *       *       *

  [(d) Local Educational Agency Coordination.--Each local 
educational agency serving students who will participate in the 
program for which assistance is sought shall be informed 
regarding each application submitted under this part, except 
that approval by or concurrence from such local educational 
agency shall not be required.]
  (d) Local Educational Agency Coordination.--Each applicant 
for an award under this part shall inform each local 
educational agency serving students who would participate in 
the project about its application.
  [(e) Implementation of Authorities.--The Secretary shall 
expeditiously obligate funds appropriated as provided in this 
part.]

SEC. [9308.] 9306. DEFINITIONS.

  For purposes of this part--
          (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.

           *       *       *       *       *       *       *


               TITLE X--PROGRAMS OF NATIONAL SIGNIFICANCE

              PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

           *       *       *       *       *       *       *


                 [PART B--GIFTED AND TALENTED CHILDREN

[SEC. 10201. SHORT TITLE.

  [This part may be cited as the ``Jacob K. Javits Gifted and 
Talented Students Education Act of 1994''.

[SEC. 10202. FINDINGS AND PURPOSES.

  [(a) Findings.--The Congress finds and declares that--
          [(1) all students can learn to high standards and 
        must develop their talents and realize their potential 
        if the United States is to prosper;
          [(2) gifted and talented students are a national 
        resource vital to the future of the Nation and its 
        security and well-being;
          [(3) too often schools fail to challenge students to 
        do their best work, and students who are not challenged 
        will not learn to challenge State content standards and 
        challenge State student performance standards, fully 
        develop their talents, and realize their potential;
          [(4) unless the special abilities of gifted and 
        talented students are recognized and developed during 
        such students' elementary and secondary school years, 
        much of such students' special potential for 
        contributing to the national interest is likely to be 
        lost;
          [(5) gifted and talented students from economically 
        disadvantaged families and areas, and students of 
        limited-English proficiency are at greatest risk of 
        being unrecognized and of not being provided adequate 
        or appropriate educational services;
          [(6) State and local educational agencies and private 
        nonprofit schools often lack the necessary specialized 
        resources to plan and implement effective programs for 
        the early identification of gifted and talented 
        students and for the provision of educational services 
        and programs appropriate to their special needs;
          [(7) the Federal Government can best carry out the 
        limited but essential role of stimulating research and 
        development and personnel training and providing a 
        national focal point of information and technical 
        assistance that is necessary to ensure that the 
        Nation's schools are able to meet the special 
        educational needs of gifted and talented students, and 
        thereby serve a profound national interest; and
          [(8) the experience and knowledge gained in 
        developing and implementing programs for gifted and 
        talented students can and should be used as a basis 
        to--
                  [(A) develop a rich and challenging 
                curriculum for all students; and
                  [(B) provide all students with important and 
                challenging subject matter to study and 
                encourage the habits of hard work.
  [(b) Statement of Purpose.--It is the purpose of this part--
          [(1) to provide financial assistance to State and 
        local educational agencies, institutions of higher 
        education, and other public and private agencies and 
        organizations, to initiate a coordinated program of 
        research, demonstration projects, personnel training, 
        and similar activities designed to build a nationwide 
        capability in elementary and secondary schools to meet 
        the special educational needs of gifted and talented 
        students;
          [(2) to encourage the development of rich and 
        challenging curricula for all students through the 
        appropriate application and adaptation of materials and 
        instructional methods developed under this part; and
          [(3) to supplement and make more effective the 
        expenditure of State and local funds, for the education 
        of gifted and talented students.

[SEC. 10203. CONSTRUCTION.

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

[SEC. 10204. AUTHORIZED PROGRAMS.

  [(a) Establishment of Program.--
          [(1) In general.--From the sums appropriated under 
        section 10207 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, or other public agencies and private 
        agencies and organizations (including Indian tribes and 
        Indian organizations (as such terms are defined by the 
        Indian Self-Determination and Education Assistance Act) 
        and Native Hawaiian organizations) to assist such 
        agencies, institutions, and organizations which submit 
        applications in carrying out programs or projects 
        authorized by this part that are designed to meet the 
        educational needs of gifted and talented students, 
        including the training of personnel in the education of 
        gifted and talented students and in the use, where 
        appropriate, of gifted and talented services, 
        materials, and methods for all students.
          [(2) Application.--Each entity desiring assistance 
        under this part shall submit an application to the 
        Secretary at such time, in such manner, and containing 
        such information as the Secretary may reasonably 
        require. Each such application shall describe how--
                  [(A) the proposed gifted and talented 
                services, materials, and methods can be 
                adapted, if appropriate, for use by all 
                students; and
                  [(B) the proposed programs can be evaluated.
  [(b) Uses of Funds.--Programs and projects assisted under 
this section may include--
          [(1) professional development (including fellowships) 
        for personnel (including leadership personnel) involved 
        in the education of gifted and talented students;
          [(2) 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, summer 
        programs, mentoring programs, service learning 
        programs, and cooperative programs involving business, 
        industry, and education;
          [(3) training of personnel and parents involved in 
        gifted and talented programs with respect to the impact 
        of gender role socialization on the educational needs 
        of gifted and talented children and in gender equitable 
        education methods, techniques and practices;
          [(4) implementing innovative strategies, such as 
        cooperative learning, peer tutoring and service 
        learning;
          [(5) strengthening the capability of State 
        educational agencies and institutions of higher 
        education to provide leadership and assistance to local 
        educational agencies and nonprofit private schools in 
        the planning, operation, and improvement of programs 
        for the identification and education of gifted and 
        talented students and the appropriate use of gifted and 
        talented programs and methods to serve all students;
          [(6) programs of technical assistance and information 
        dissemination, including how gifted and talented 
        programs and methods, where appropriate, may be adapted 
        for use by all students; and
          [(7) carrying out--
                  [(A) research on methods and techniques for 
                identifying and teaching gifted and talented 
                students, and for using gifted and talented 
                programs and methods to serve all students; and
                  [(B) program evaluations, surveys, and the 
                collection, analysis, and development of 
                information needed to accomplish the purposes 
                of this part.
  [(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 agency, or a combination 
        or consortium of such institutions and agencies, for 
        the purpose of carrying out activities described in 
        paragraph (7) of subsection (b).
          [(2) Director.--Such National Center shall have a 
        Director. The Secretary may authorize the Director to 
        carry out such functions of the National Center as may 
        be agreed upon through arrangements with other 
        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)(7) or (c).
  [(e) Coordination.--Research activities supported under this 
section--
          [(1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        ensure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by such Office; and
          [(2) may include collaborative research activities 
        which are jointly funded and carried out with such 
        Office.

[SEC. 10205. PROGRAM PRIORITIES.

  [(a) General Priority.--In the administration of this part 
the Secretary shall give highest priority--
          [(1) to the identification of and the 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); and
          [(2) to programs and projects designed to develop or 
        improve the capability of schools in an entire State or 
        region of the Nation through cooperative efforts and 
        participation of State and local educational agencies, 
        institutions of higher education, and other public and 
        private agencies and organizations (including business, 
        industry, and labor), to plan, conduct, and improve 
        programs for the identification of and service to 
        gifted and talented students, such as mentoring and 
        apprenticeship programs.
  [(b) Service Priority.--In approving applications for 
assistance under section 10204(a)(2), the Secretary shall 
assure that in each fiscal year at least one-half of the 
applications approved under such section address the priority 
described in subsection (a)(1).

[SEC. 10206. GENERAL PROVISIONS.

  [(a) Participation of Private School Children and Teachers.--
In making grants and entering into contracts under this part, 
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 part;
          [(2) ensure that information on the activities and 
        results of programs and projects funded under this part 
        is disseminated to appropriate State and local agencies 
        and other appropriate organizations, including 
        nonprofit private organizations; and
          [(3) evaluate the effectiveness of programs under 
        this part in accordance with section 14701, both in 
        terms of the impact on students traditionally served in 
        separate gifted and talented programs and on other 
        students, and submit the results of such evaluation to 
        Congress not later than January 1, 1998.
  [(c) Program Operations.--The Secretary shall ensure that the 
programs under this part 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 the programs authorized by this part;
          [(2) coordinate all programs for gifted and talented 
        students administered by the Department;
          [(3) 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
          [(4) 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. 10207. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $10,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the four succeeding fiscal years to carry out the provisions of 
this part.]

                  PART B--GIFTED AND TALENTED CHILDREN

SEC. 10201. SHORT TITLE.

  This part may be cited as the ``Jacob K. Javits Gifted and 
Talented Students Education Act of 1999''.

SEC. 10202. FINDINGS.

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

SEC. 10203. CONDITIONS ON EFFECTIVENESS OF SUBPARTS 1 AND 2.

  (a) Subpart 1.--Subpart 1 shall be in effect only for a 
fiscal year for which subpart 2 is not in effect.
  (b) Subpart 2.--
          (1) In general.--Subpart 2 shall be in effect only 
        for--
                  (A) the first fiscal year for which the 
                amount appropriated to carry out this part 
                equals or exceeds $50,000,000; and
                  (B) all succeeding fiscal years.
          (2) Continuation of awards.--Notwithstanding any 
        other provision of this part, a State receiving a grant 
        under subpart 2--
                  (A) shall give special consideration to a 
                request for the continuation of an award within 
                the State, made by any public or private 
                agency, institution, or organization that was 
                awarded a grant or contract under subpart 1 for 
                a fiscal year for which such subpart was in 
                effect; and
                  (B) may use funds received under such grant 
                for the purpose of permitting the agency, 
                institution, or organization to continue to 
                receive funds in accordance with the terms of 
                such award until the date on which the award 
                period terminates under such terms.

                 Subpart 1--Discretionary Grant Program

SEC. 10211. 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 a nationwide capability in elementary and 
secondary schools to meet the special educational needs of 
gifted and talented students.

SEC. 10212. GRANTS TO MEET EDUCATIONAL NEEDS OF GIFTED AND TALENTED 
                    STUDENTS.

  (a) Establishment of Program.--
          (1) In general.--Subject to section 10203, 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.--Each entity desiring assistance 
        under this subpart shall submit an application to the 
        Secretary at such time, in such manner, and containing 
        such information as the Secretary may reasonably 
        require. Each such application shall describe how--
                  (A) the proposed gifted and talented 
                services, materials, and methods can be 
                adapted, if appropriate, for use by all 
                students; and
                  (B) the proposed programs can be evaluated.
  (b) Uses of Funds.--Programs and projects assisted under this 
subpart may include the following:
          (1) Carrying out--
                  (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) 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. 10213. PROGRAM PRIORITIES.

  (a) General Priority.--In the administration of this subpart, 
the Secretary shall give highest priority to programs and 
projects designed to develop new information that--
          (1) improves the capability of schools to plan, 
        conduct, and improve programs to identify and serve 
        gifted and talented students; and
          (2) assists schools in the identification of, and 
        provision of services to, gifted and talented students 
        who may not be identified and served through 
        traditional assessment methods (including economically 
        disadvantaged individuals, individuals of limited 
        English proficiency, and individuals with 
        disabilities).
  (b) Service Priority.--In approving applications for 
assistance under section 10212(a)(2), the Secretary shall 
ensure that in each fiscal year at least \1/2\ of the 
applications approved under such section address the priority 
described in subsection (a)(2).
  (c) Subgrants to Local Educational Agencies for Authorized 
Activities.--
          (1) In general.--For fiscal year 2001 and succeeding 
        fiscal years, the Secretary shall ensure that a 
        percentage of the excess amount described in paragraph 
        (2) is used to increase (in proportion to any increases 
        in such excess amounts) the number and size of the 
        grants under this subpart to State educational agencies 
        to begin implementing activities described in section 
        10222(b) through competitive subgrants to local 
        educational agencies.
          (2) Excess amount.--For purposes of paragraph (1), 
        the excess amount described in this paragraph is, for 
        fiscal year 2001 and succeeding fiscal years, the 
        amount (if any) by which the funds appropriated to 
        carry out this subpart for the year exceed such funds 
        for fiscal year 2000.

SEC. 10214. GENERAL PROVISIONS FOR SUBPART.

  (a) Review, Dissemination, and Evaluation.--The Secretary--
          (1) shall use a peer review process in reviewing 
        applications under this subpart;
          (2) shall ensure that information on the activities 
        and results of programs and projects funded under this 
        subpart is disseminated to appropriate State and local 
        educational agencies and other appropriate 
        organizations, including nonprofit private 
        organizations; and
          (3) shall evaluate the effectiveness of programs 
        under this subpart in accordance with section 14701, 
        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 Student Results Act of 
        1999.
  (b) Program Operations.--The Secretary shall ensure that the 
programs under this subpart are administered within the 
Department by a person who has recognized professional 
qualifications and experience in the field of the education of 
gifted and talented students and who--
          (1) shall administer and coordinate the programs 
        authorized under this subpart;
          (2) shall serve as a focal point of national 
        leadership and information on the educational needs of 
        gifted and talented students and the availability of 
        educational services and programs designed to meet such 
        needs; and
          (3) shall assist the Assistant Secretary of the 
        Office of Educational Research and Improvement in 
        identifying research priorities which reflect the needs 
        of gifted and talented students.

                    Subpart 2--Formula Grant Program

SEC. 10221. PURPOSE.

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

SEC. 10222. ESTABLISHMENT OF PROGRAM; USE OF FUNDS.

  (a) In General.--In the case of each State that in accordance 
with section 10224 submits to the Secretary an application for 
a fiscal year, subject to section 10203, the Secretary shall 
make a grant for the year to the State for the uses specified 
in subsection (b). The grant shall consist of the allotment 
determined for the State under section 10223.
  (b) Authorized Activities.--Each State receiving a grant 
under this subpart shall use the funds provided under the grant 
to assist local educational agencies to develop or expand 
gifted and talented education programs through one or more of 
the following activities:
          (1) Development and implementation of programs to 
        address State and local needs for in-service training 
        programs for general educators, specialists in gifted 
        and talented education, administrators, or other 
        personnel at the elementary and secondary levels.
          (2) Making materials and services available through 
        State regional educational service centers, 
        institutions of higher education, or other entities.
          (3) Supporting innovative approaches and curricula 
        used by local educational agencies (or consortia of 
        such agencies) or schools or (consortia of schools).
          (4) Providing funds for challenging, high-level 
        course work, disseminated through new and emerging 
        technologies (including distance learning), for 
        individual students or groups of students in schools 
        and local educational agencies that do not have the 
        resources otherwise to provide such course work.
  (c) Competitive Process.--A State receiving a grant under 
this subpart shall distribute at least 95 percent of the amount 
of the grant to local educational agencies through a 
competitive process that results in an equitable distribution 
by geographic area within the State.
  (d) Limitations on Use of Funds.--
          (1) Course work provided through emerging 
        technologies.--Activities under subsection (b)(4) may 
        include development of curriculum packages, 
        compensation of distance-learning educators, or other 
        relevant activities, but funds provided under this 
        subpart may not be used for the purchase or upgrading 
        of technological hardware.
          (2) Administrative costs.--A State receiving a grant 
        under this subpart may use not more than 5 percent of 
        the amount of the grant for State administrative costs.

SEC. 10223. ALLOTMENTS TO STATES.

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

SEC. 10224. APPLICATION.

  (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 assurances that--
          (1) funds received under this subpart will be used to 
        support gifted and talented students in public schools 
        and public charter schools, including students from all 
        economic, ethnic, and racial backgrounds, students of 
        limited English proficiency, students with 
        disabilities, and highly gifted students;
          (2) not less than 95 percent of the amount of the 
        funds provided under the grant shall be used for the 
        purpose of making, in accordance with this subpart and 
        on a competitive basis, subgrants to local educational 
        agencies;
          (3) funds received under this subpart shall be used 
        only to supplement, but not supplant, the amount of 
        State and local funds expended for specialized 
        education and related services provided for the 
        education of gifted and talented students; and
          (4) the State shall develop procedures to evaluate 
        program effectiveness.
  (c) Approval.--To the extent funds are made available for 
this subpart, the Secretary shall approve an application of a 
State if such application meets the requirements of this 
section.

SEC. 10225. ANNUAL REPORTING.

  Beginning 1 year after the date of the enactment of the 
Student Results Act of 1999, a State receiving a grant under 
this subpart shall submit an annual report to the Secretary 
that describes the number of students served and the activities 
supported with funds provided under this subpart. The report 
shall include a description of the measures taken to comply 
with paragraphs (1) and (4) of section 10224(b). To the extent 
practicable and otherwise authorized by law, this report shall 
be submitted as part of any consolidated State performance 
report for State formula grant programs under this Act.

    Subpart 3--National Center for Research and Development in the 
          Education of Gifted and Talented Children and Youth

SEC. 10231. CENTER FOR RESEARCH AND DEVELOPMENT.

  (a) In General.--The Secretary (after consultation with 
experts in the field of the education of gifted and talented 
students) shall establish a National 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 section 10212(b)(1).
  (b) Director.--Such National Center shall have a Director. 
The Secretary may authorize the Director to carry out such 
functions of the National Center as may be agreed upon through 
arrangements with institutions of higher education, State or 
local educational agencies, or other public or private agencies 
and organizations.
  (c) 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.

                     Subpart 4--General Provisions

SEC. 10241. CONSTRUCTION.

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

SEC. 10242. PARTICIPATION OF PRIVATE SCHOOL CHILDREN AND TEACHERS.

  In making grants and entering into contracts under this part, 
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.

SEC. 10243. DEFINITIONS.

  For purposes of this part:
          (1) The term ``scientifically based research''--
                  (A) means the application of rigorous, 
                systematic, and objective procedures to obtain 
                valid knowledge relevant to the education of 
                gifted and talented children; 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.
          (2) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

SEC. 10244. AUTHORIZATION OF APPROPRIATIONS.

  (a) Subpart 1 or 2.--Subject to section 10203, there are 
authorized to be appropriated $10,000,000 to carry out subpart 
1 or 2 for fiscal year 2000 and such sums as may be necessary 
for each of fiscal years 2001 through 2004.
  (c) Subpart 3.--There are authorized to be appropriated to 
carry out subpart 3 $1,950,000 for each of fiscal years 2000 
through 2004.

           *       *       *       *       *       *       *


             [PART J--URBAN AND RURAL EDUCATION ASSISTANCE

[SEC. 10951. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Demonstration Grants.--
          [(1) In general.--There are authorized to be 
        appropriated $125,000,000 for fiscal year 1995, and 
        such sums as may be necessary for each of the four 
        succeeding fiscal years, to carry out subparts 1 and 2 
        (other than section 10975).
          [(2) Reservation for subpart 1.--The Secretary shall 
        reserve 50 percent of the amount appropriated under 
        paragraph (1) to carry out subpart 1.
          [(3) Reservation for subpart 2.--The Secretary shall 
        reserve 50 percent of the amount appropriated under 
        paragraph (1) to carry out subpart 2 (other than 
        section 10975).
  [(b) Higher Education Grants.--There are authorized to be 
appropriated $25,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years 
to carry out section 10975.
  [(c) Federal Funds To Supplement Not Supplant Non-Federal 
Funds.--An eligible local educational agency may use funds 
received under this part only to supplement and, to the extent 
practicable, increase the level of funds that would, in the 
absence of such Federal funds, be made available from non-
Federal sourcesfor the education of students participating in 
activities assisted under this part, and in no such case may such funds 
be used to supplant funds from non-Federal sources.

[SEC. 10952. DEFINITIONS.

  [Except as otherwise provided, for the purposes of this part:
          [(1) Central city.--The term ``central city'' has the 
        same meaning used by the Bureau of the Census.
          [(2) Metropolitan statistical area.--The term 
        ``metropolitan statistical area'' has the same meaning 
        used by the Bureau of the Census.
          [(3) Poverty level.--The term ``poverty level'' means 
        the criteria of poverty used by the Bureau of the 
        Census in compiling the most recent decennial census.
          [(4) Rural eligible local educational agency.--The 
        term ``rural eligible local educational agency'' means 
        a local educational agency--
                  [(A)(i) in which at least 15 percent of the 
                children enrolled in the schools served by such 
                agency are eligible to be counted under part A 
                of title I; and
                  [(ii) which is not in a metropolitan 
                statistical area; or
                  [(B) in which the total enrollment in the 
                schools served by such agency is less than 
                2,500 students and that does not serve schools 
                located in a metropolitan statistical area.
          [(5) Urban eligible local educational agency.--The 
        term ``urban eligible local educational agency'' means 
        a local educational agency that--
                  [(A) serves the largest central city in a 
                State;
                  [(B) enrolls more than 30,000 students and 
                serves a central city with a population of at 
                least 200,000 in a metropolitan statistical 
                area; or
                  [(C) enrolls between 25,000 and 30,000 
                students and serves a central city with a 
                population of at least 140,000 in a 
                metropolitan statistical area.

            [Subpart 1--Urban Education Demonstration Grants

[SEC. 10961. FINDINGS.

  [The Congress finds that--
          [(1) the ability of the Nation's major urban public 
        school systems to meet the Nation's educational goals 
        will determine the country's economic competitiveness 
        and academic standing in the world community;
          [(2) the quality of public education in the Nation's 
        major urban areas has a direct effect on the economic 
        development of the Nation's inner-cities;
          [(3) the success of urban public schools in boosting 
        the achievement of its minority youth attending such 
        schools will determine the ability of the Nation to 
        close the gap between the ``haves and the have-nots'' 
        in society;
          [(4) the cost to America's businesses to provide 
        remedial education to high school graduates is 
        approximately $21,000,000,000 per year;
          [(5) approximately one-third of the Nation's 
        workforce will be members of minority groups by the 
        year 2000;
          [(6) urban schools enroll a disproportionately large 
        share of the Nation's poor and ``at-risk'' youth;
          [(7) urban schools enroll approximately one-third of 
        the Nation's poor, 40 percent of the Nation's African 
        American children, and 30 percent of the Nation's 
        Hispanic youth;
          [(8) nearly 20 percent of the Nation's limited-
        English-proficient children and 15 percent of the 
        Nation's disabled youth are enrolled in urban public 
        schools;
          [(9) the academic performance of students in the 
        average inner-city public school system is below that 
        of students in most other kinds of school systems;
          [(10) urban public school systems have higher dropout 
        rates, more problems with health care, and less 
        parental participation than other kinds of school 
        systems;
          [(11) urban preschoolers have one-half the access to 
        early childhood development programs as do other 
        children;
          [(12) shortages of teachers in urban public school 
        systems are 2.5 times greater than such shortages in 
        other kinds of school systems;
          [(13) declining numbers of urban minority high school 
        graduates are pursuing postsecondary educational 
        opportunities;
          [(14) urban public school systems have greater 
        problems with teenage pregnancy, discipline, drug 
        abuse, and gangs than do other kinds of school systems;
          [(15) 75 percent of urban public school buildings are 
        over 25 years old, 33 percent of such buildings are 
        over 50 years old, and such buildings are often in 
        serious disrepair and create poor and demoralizing 
        working and learning conditions;
          [(16) solving the challenges facing our Nation's 
        urban schools will require the concerted and 
        collaborative efforts of all levels of government and 
        all sectors of the community;
          [(17) Federal and State funding of urban public 
        schools has not adequately reflected need; and
          [(18) Federal funding that is well-targeted, 
        flexible, and accountable would contribute 
        significantly to addressing the comprehensive needs of 
        inner-city public schools.

[SEC. 10962. PURPOSE.

  [It is the purpose of this subpart to provide financial 
assistance to--
          [(1) assist urban public schools in meeting the 
        National Education Goals;
          [(2) improve the educational and social well-being of 
        urban public school children;
          [(3) close the achievement gap between urban and 
        nonurban public school children, while improving the 
        achievement level of all children nationally;
          [(4) conduct coordinated research on urban public 
        education problems, solutions, and promising practices;
          [(5) improve the Nation's global economic and 
        educational competitiveness by improving the Nation's 
        urban schools; and
          [(6) encourage community, parental, and business 
        collaboration in the improvement of urban schools.

[SEC. 10963. URBAN SCHOOL GRANTS.

  [(a) Authority.--The Secretary is authorized to make grants 
to eligible local educational agencies serving an urban area or 
State educational agencies in the case where the State 
educational agency is the local educational agency for 
activities designed to assist in local school improvement 
efforts and school reform, and to assist the schools of such 
agencies in meeting the National Education Goals.
  [(b) Authorized Activities.--Funds under this section may be 
used to--
          [(1) increase the academic achievement of urban 
        public school children to at least the national 
        average, such as--
                  [(A) effective public schools programs;
                  [(B) tutoring, mentoring, and other 
                activities to improve academic achievement 
                directly;
                  [(C) activities designed to increase the 
                participation of minority and female students 
                in entry level and advanced courses in 
                mathematics and science;
                  [(D) supplementary academic instruction;
                  [(E) efforts to improve problem-solving and 
                higher-order thinking skills;
                  [(F) programs to increase student motivation 
                for learning; and
                  [(G) efforts to lengthen the school day or 
                school year, or to reduce class sizes;
          [(2) ensure the readiness of all urban public school 
        children for school, such as--
                  [(A) full workday, full calendar-year 
                comprehensive early childhood development 
                programs;
                  [(B) parenting classes and parent involvement 
                activities;
                  [(C) activities designed to coordinate 
                prekindergarten and child care programs;
                  [(D) efforts to integrate developmentally 
                appropriate prekindergarten services into the 
                overall public school program;
                  [(E) upgrading the qualifications of early 
                childhood education staff and standards for 
                programs;
                  [(F) collaborative efforts with health and 
                social service agencies to provide 
                comprehensive services and to facilitate the 
                transition from home to school;
                  [(G) establishment of comprehensive child 
                care centers in public secondary schools for 
                students who are parents and their children; 
                and
                  [(H) augmenting early childhood development 
                programs to meet the special educational and 
                cultural needs of limited-English-proficient 
                preschool children;
          [(3) increase the graduation rates of urban public 
        school students to at least the national average, such 
        as--
                  [(A) dropout prevention activities and 
                support services for public school students at-
                risk of dropping out of school;
                  [(B) reentry, outreach, and support 
                activities to recruit students who have dropped 
                out of school to return to school;
                  [(C) development of systemwide policies and 
                practices that encourage students to stay in 
                school;
                  [(D) efforts to provide individualized 
                student support, such as mentoring programs;
                  [(E) collaborative activities between 
                schools, parents, community groups, agencies, 
                and institutions of higher education aimed at 
                preventing individuals from dropping out of 
                school;
                  [(F) programs to increase student attendance; 
                and
                  [(G) alternative programs for students, 
                especially bilingual and special education 
                students, who have dropped out of school or are 
                at risk of dropping out of school;
          [(4) prepare urban public school students to enter 
        higher education, pursue careers, and exercise their 
        responsibilities as citizens, such as--
                  [(A) activities designed to increase the 
                number and percentages of students, 
                particularly minority students, enrolling in 
                postsecondary educational institutions after 
                graduation from public secondary schools;
                  [(B) in-school youth employment, vocational 
                education, and career education programs that 
                improve the transition from school to work;
                  [(C) activities designed in collaboration 
                with colleges and universities to assist urban 
                public school graduates in completing higher 
                education;
                  [(D) efforts to increase voter registration 
                among eligible public secondary school 
                students;
                  [(E) activities designed to promote community 
                service and volunteerism among students, 
                parents, teachers, and the community; and
                  [(F) civic education and other programs 
                designed to enhance responsible citizenship and 
                understanding of the political process;
          [(5) recruit and retain qualified teachers, such as--
                  [(A) school-based management projects and 
                activities;
                  [(B) programs designed to test efforts to 
                increase the professionalization of teachers or 
                to bring teachers up to national voluntary 
                standards;
                  [(C) alternative routes to certification for 
                qualified individuals from business, the 
                military, and other fields;
                  [(D) efforts to recruit and retain teachers, 
                particularly minority teachers, specializing in 
                critical shortage areas, including early 
                childhood teachers, mathematics and science 
                teachers, and special education and bilingual 
                teachers;
                  [(E) upgrading the skills of teacher aides 
                and paraprofessionals to permit such 
                individuals to become certified teachers;
                  [(F) activities specifically designed to 
                increase the number of minority teachers in 
                urban schools;
                  [(G) incentives for teachers to work in 
                inner-city public schools; and
                  [(H) collaborative activities with urban 
                universities to revise and upgrade teacher 
                training programs;
          [(6) provide for ongoing staff development to 
        increase the professional capacities of the teaching 
        staff and the skills of teacher aides and 
        paraprofessionals;
          [(7) decrease the use of drugs and alcohol among 
        urban public school students and enhance the physical 
        and emotional health of such students, such as--
                  [(A) activities designed to improve the self-
                esteem and self-worth of urban public school 
                students;
                  [(B) the provision of health care services 
                and other social services and the coordination 
                of such services with other health care 
                providers;
                  [(C) programs designed to improve safety and 
                discipline and reduce in-school violence, 
                vandalism, and gang activity;
                  [(D) activities that begin in the early 
                grades and are designed to prevent drug and 
                alcohol abuse and smoking among students and 
                teachers;
                  [(E) collaborative activities with other 
                agencies, businesses, and community groups to 
                discourage the advertisement and glorification 
                of drugs and alcohol;
                  [(F) efforts to enhance health education and 
                nutrition education; and
                  [(G) alternative public schools, and schools-
                within-schools programs, including bilingual 
                and special education programs for public 
                school students with special needs; or
          [(8) plan, develop, operate, or expand programs and 
        activities that are designed to assist urban public 
        schools in meeting the National Education Goals, 
        including--
                  [(A) training of teachers and other 
                educational personnel in subject areas, or in 
                instructional technology and methods that will 
                improve the delivery of services in urban 
                settings and assist in the achievement of the 
                National Education Goals, including staff 
                development efforts that emphasize 
                multicultural and gender and disability bias-
                free curricula;
                  [(B) coordination and collaboration with 
                other municipal agencies, child care 
                organizations, universities, or the private 
                sector;
                  [(C) parental involvement and outreach 
                efforts and other activities designed to 
                enhance parental encouragement of student 
                learning;
                  [(D) pupil services and other support 
                services that contribute to progress in 
                achieving National Education Goals;
                  [(E) efforts to acquire and improve access to 
                educational technology;
                  [(F) assist the schools most in need of 
                services by replicating successful efforts of 
                other urban local educational agencies and 
                expanding successful programs within the 
                eligible agency; or
                  [(G) efforts to improve and strengthen the 
                curriculum and coordinate services across grade 
                levels.
  [(c) Applications.--
          [(1) In general.--An eligible local educational 
        agency desiring to receive a grant under this section 
        shall submit an application to the Secretary at such 
        time, in such manner, and accompanied by such 
        information as the Secretary may reasonably require, 
        consistent with this section.
          [(2) Duration.--An application submitted pursuant to 
        paragraph (1) may be for a period of not more than five 
        years.
  [(d) Payments.--The Secretary shall make an award only to 
urban eligible local educational agencies that--
          [(1) comply with the provisions of section 10966; and
          [(2) demonstrate to the satisfaction of the Secretary 
        that the data submitted pursuant to section 10961 shows 
        progress toward meeting National Education Goals.
  [(e) Administrative Costs.--Not more than five percent of any 
award made under this subpart may be used for administrative 
costs.

[SEC. 10964. SPECIAL RULES.

  [(a) Special Consideration.--In making awards under this 
subpart, the Secretary shall give special consideration to 
urban eligible local educational agencies in which there is--
          [(1) low achievement;
          [(2) high poverty; and
          [(3) racial isolation.
  [(b) Flexibility.--Each urban eligible local educational 
agency shall have the flexibility to serve homeless children, 
children in schools undergoing desegregation, immigrants, 
migrants, or other highly mobile populations within the program 
assisted under this subpart.

            [Subpart 2--Rural Education Demonstration Grants

[SEC. 10971. FINDINGS.

  [The Congress finds that--
          [(1) the ability of America's rural public school 
        systems to meet the National Education Goals will 
        contribute to the economic competitiveness and academic 
        standing of the Nation in the world community;
          [(2) approximately 60 percent of the Nation's public 
        school districts are rural with a population of less 
        than 2,500;
          [(3) about 1 out of every 4 of America's rural school 
        children are living below the poverty line;
          [(4) the quality of public education in the rural 
        areas of the Nation has a direct effect on the economic 
        development of the rural communities of the Nation;
          [(5) the success of rural public schools in boosting 
        the achievement of minority youth attending such 
        schools will determine the ability of the Nation to 
        close the gap between the haves and the have-nots in 
        society;
          [(6) the academic performance of students in the 
        average rural school system is below that of students 
        in most other suburban school systems;
          [(7) the average age of rural public school buildings 
        is more than 45 years old and such buildings are often 
        in serious disrepair, creating poor and demoralizing 
        working and learning conditions;
          [(8) shortages of teachers for rural public school 
        systems is greater than in other kinds of school 
        systems;
          [(9) solving the challenges facing the Nation's rural 
        public schools will require the concerted and 
        collaborative efforts of all levels of government and 
        all sectors of the community;
          [(10) additional Federal funding would contribute 
        significantly to addressing the comprehensive needs of 
        rural schools;
          [(11) rural public schools enroll a 
        disproportionately large share of the Nation's poor and 
        at-risk youth;
          [(12) a declining number of rural public secondary 
        school graduates are pursuing postsecondary education 
        opportunities;
          [(13) rural preschoolers have less access to early 
        childhood development programs than other children; and
          [(14) Federal and State funding of rural public 
        schools has not adequately reflected need.

[SEC. 10972. PURPOSE.

  [It is the purpose of this subpart to provide financial 
assistance to rural public schools most in need, to encourage 
the comprehensive restructuring of America's rural schools, the 
appropriate use of telecommunications technologies for 
learning, and to support innovative programs which improve 
performance through programs and projects designed to--
          [(1) assist rural public schools in meeting National 
        Education Goals;
          [(2) encourage rural public schools to engage in 
        school reform;
          [(3) develop pilot projects that experiment with 
        innovative ways to teach rural public school children 
        more effectively;
          [(4) improve the educational and social well-being of 
        rural public school children;
          [(5) close the achievement gap between children 
        attending rural public schools and other children, 
        while improving the achievement level of all children 
        nationally;
          [(6) conduct coordinated research on rural education 
        problems, solutions, promising practices, and distance 
        learning technologies;
          [(7) improve the Nation's global economic and 
        educational competitiveness by improving the Nation's 
        rural public schools;
          [(8) encourage community, parental, and business 
        collaboration in the improvement of rural public 
        schools;
          [(9) encourage rural school consortia for the purpose 
        of increasing efficiency and course offerings;
          [(10) encourage a positive role for rural public 
        schools in local rural entrepreneurship and the 
        identification of rural community economic development 
        opportunities;
          [(11) encourage community-as-school concepts, which 
        include the role public schools can play to assist with 
        rural community economic revitalization; and
          [(12) provide for the recruitment and meaningful 
        inservice opportunities for rural public school 
        teachers.

[SEC. 10973. RURAL SCHOOL GRANTS.

  [(a) Authority.--The Secretary is authorized to make grants 
to rural eligible local educational agencies, or State 
educational agencies in the case where the State educational 
agency is the local educational agency, for activities designed 
to assist in local school improvement efforts.
  [(b) Award Rules.--
          [(1) Less than $50,000,000.--If the amount made 
        available to carry out this subpart for any fiscal year 
        is less than $50,000,000, the Secretary shall award 
        grants under this section on a competitive basis.
          [(2) Equal to or greater than $50,000,000.--If the 
        amount made available to carry out this subpart for any 
        fiscal year is equal to or greater than $50,000,000, 
        the Secretary shall award grants under this section so 
        that a rural eligible local educational agency in each 
        State receives such a grant.
  [(c) Administrative Costs.--Not more than five percent of a 
grant awarded under section 10573 shall be used for 
administrative costs.
  [(d) Duration.--Each grant under this section shall be 
awarded for a period of not more than five years.

[SEC. 10974. USES OF FUNDS.

  [(a) In General.--Grant funds made available under section 
10973 may be used by rural eligible local educational agencies 
to meet the National Education Goals through programs designed 
to--
          [(1) increase the academic achievement of rural 
        public school children to at least the national average 
        of such achievement, including education reform 
        initiatives, such as--
                  [(A) effective public schools programs;
                  [(B) tutoring, mentoring, and other 
                activities to improve academic achievement 
                directly;
                  [(C) supplementary academic instruction;
                  [(D) efforts to improve problem-solving and 
                higher-order critical thinking skills; and
                  [(E) efforts to lengthen the school day, 
                school year, or reduce class sizes;
          [(2) develop pilot projects that experiment with 
        innovative ways to teach rural public school children 
        more effectively;
          [(3) encourage the formation of rural school 
        consortia for the purpose of increasing efficiency and 
        course offerings;
          [(4) provide meaningful inservice training 
        opportunities for rural public school teachers;
          [(5) assist rural schools in acquiring and improving 
        access to educational technology, including distance 
        learning technologies;
          [(6) ensure the readiness of all rural children for 
        school, such as--
                  [(A) full workday, full calendar-year 
                comprehensive early childhood development 
                programs;
                  [(B) parenting classes, including parenting 
                classes for teenage parents, and parent 
                involvement activities;
                  [(C) activities designed to coordinate 
                prekindergarten and child care programs;
                  [(D) efforts to integrate developmentally 
                appropriate prekindergarten services into the 
                overall public school program;
                  [(E) improving the skills of early childhood 
                education staff and standards for programs;
                  [(F) collaborative efforts with health and 
                social service agencies to provide 
                comprehensive services and to facilitate the 
                transition from home to school;
                  [(G) establishment of comprehensive child 
                care centers in public secondary schools for 
                student parents and their children; and
                  [(H) augmenting early childhood development 
                programs to meet the special educational and 
                cultural needs of limited-English proficient 
                children, children with disabilities, and 
                migrant preschool children;
          [(7) increase the graduation rates of rural public 
        school students to at least the national average of 
        such rate, when funds are used to serve secondary 
        schools, such as--
                  [(A) dropout prevention activities and 
                support services for students at-risk of 
                dropping out of school;
                  [(B) reentry, outreach and support activities 
                to recruit students who have dropped out of 
                school to return to school;
                  [(C) development of systemwide policies and 
                practices that encourage students to stay in 
                school;
                  [(D) efforts to provide individualized 
                student support;
                  [(E) collaborative activities between 
                schools, parents, community groups, agencies, 
                and institutions of higher education aimed at 
                preventing individuals from dropping out of 
                school;
                  [(F) programs to increase student attendance; 
                and
                  [(G) alternative programs for students, 
                especially bilingual, special education, and 
                migrant students, who have dropped out of 
                school or are at risk of dropping out of 
                school;
          [(8) prepare rural public school students to enter 
        higher education, pursue careers, and exercise their 
        responsibilities as citizens, such as--
                  [(A) activities designed to increase the 
                number and percentages of students, enrolling 
                in postsecondary educational institutions after 
                graduation from secondary schools;
                  [(B) in-school youth employment, vocational 
                education, and career education programs that 
                improve the transition from school to work;
                  [(C) activities designed in collaboration 
                with colleges and universities to assist rural 
                public school graduates in completing higher 
                education;
                  [(D) activities designed in conjunction with 
                community colleges to provide a kindergarten 
                through grade 14 experience for rural public 
                school secondary school students;
                  [(E) efforts to increase voter registration 
                among eligible public secondary school students 
                attending schools served by rural eligible 
                local educational agencies;
                  [(F) activities designed to promote community 
                service and volunteerism among students, 
                parents, teachers, and the community;
                  [(G) civic education, law-related education, 
                and other programs designed to enhance 
                responsible citizenship and understanding of 
                the political process; and
                  [(H) encouraging a positive role for rural 
                public schools in local rural entrepreneurship 
                and the identification of rural community 
                economic development opportunities;
          [(9) recruit and retain qualified teachers, such as--
                  [(A) school-based management projects and 
                activities;
                  [(B) programs designed to increase the status 
                of the teaching profession;
                  [(C) alternative routes to certification for 
                qualified individuals from business, the 
                military, and other fields;
                  [(D) efforts to recruit and retain teachers 
                in critical shortage areas, including early 
                childhood teachers, mathematics and science 
                teachers, foreign language teachers, and 
                special education and bilingual teachers;
                  [(E) upgrading the skills of existing 
                classroom teachers through the use of year-
                round, systematic, comprehensive inservice 
                training programs;
                  [(F) upgrading the skills of teacher aides 
                and paraprofessionals to assist such 
                individuals in becoming certified teachers;
                  [(G) efforts specifically designed to 
                increase the number of minority teachers in 
                rural public schools;
                  [(H) programs designed to encourage parents 
                and students to enter the teaching profession;
                  [(I) incentives for teachers to work in rural 
                public schools;
                  [(J) collaborative activities with colleges 
                and universities to revise and upgrade teacher 
                training programs to meet the needs of rural 
                public school students; and
                  [(K) training activities for the purpose of 
                incorporating distance learning technologies; 
                or
          [(10) decrease the use of drugs and alcohol among 
        rural public school students, and to enhance the 
        physical and emotional health of such students, such 
        as--
                  [(A) activities designed to improve the self-
                esteem and self-worth of rural students;
                  [(B) the provision of health care services 
                and other social services and the coordination 
                of such services with other health care 
                providers;
                  [(C) programs designed to improve safety and 
                discipline and reduce in-school violence and 
                vandalism;
                  [(D) activities that begin in the early 
                grades and are designed to prevent drug and 
                alcohol abuse and smoking among students;
                  [(E) collaborative activities with other 
                agencies, businesses, and community groups;
                  [(F) efforts to enhance health education and 
                nutrition education; and
                  [(G) alternative public schools, and schools-
                within-schools programs, including bilingual, 
                migrant, and special education programs for 
                students with special needs.
  [(b) Applications.--Each eligible entity desiring a grant 
under section 10973 shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require. Each grant 
awarded under section 10973 shall be of sufficient size and 
scope to achieve significant rural school improvement.

[SEC. 10975. HIGHER EDUCATION GRANTS.

  [(a) Grants.--The Secretary is authorized to make grants to 
institutions of higher education, consortia of such 
institutions, or partnerships between institutions of higher 
education and local educational agencies to assist rural 
schools and rural eligible local educational agencies in 
undertaking local school improvement activities.
  [(b) Authorized Activities.--Grant funds under this section 
may be used to--
          [(1) assist rural schools in meeting National 
        Education Goals;
          [(2) assist in the recruitment and training of 
        teachers in rural schools;
          [(3) assist rural schools in the development of 
        appropriate innovative school improvement initiatives;
          [(4) provide inservice training opportunities for 
        teachers in rural schools; and
          [(5) provide technical assistance in the use and 
        installation of innovative telecommunications 
        technology.
  [(c) Applications.--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.

                  [Subpart 3--White House Conferences

[SEC. 10981. WHITE HOUSE CONFERENCE ON URBAN EDUCATION.

  [(a) Authorization To Call Conference.--
          [(1) In general.--The President is authorized to call 
        and conduct a White House Conference on Urban Education 
        (referred to in this section as the ``Conference'') 
        which shall be held not earlier than November 1, 1995, 
        and not later than October 30, 1996.
          [(2) Purpose.--The purpose of the Conference shall be 
        to--
                  [(A) develop recommendations and strategies 
                for the improvement of urban education;
                  [(B) marshal the forces of the private 
                sector, governmental agencies at all levels, 
                parents, teachers, communities, and education 
                officials to assist urban public schools in 
                achieving National Education Goals; and
                  [(C) conduct the initial planning for a 
                permanent national advisory commission on urban 
                education.
  [(b) Composition of Conference.--
          [(1) In general.--The Conference shall be comprised 
        of 12 individuals, including--
                  [(A) representatives of urban public school 
                systems, including members of the governing 
                body of local educational agencies, and school 
                superintendents;
                  [(B) representatives of the Congress, the 
                Department of Education, and other Federal 
                agencies;
                  [(C) State elected officials and 
                representatives from State educational 
                agencies; and
                  [(D) individuals with special knowledge of 
                and expertise in urban education.
          [(2) Selection.--The President shall select one-third 
        of the participants of the Conference, the majority 
        leader of the Senate, in consultation with the minority 
        leader of the Senate, shall select one-third of such 
        participants, and the Speaker of the House of 
        Representatives, in consultation with the minority 
        leader of the House, shall select the remaining one-
        third of such participants.
          [(3) Representation.--In selecting the participants 
        of the Conference, the President, the majority leader 
        of the Senate, and the Speaker of the House of 
        Representatives shall ensure that the participants are 
        as representative of the ethnic, racial, and linguistic 
        diversity of cities as is practicable.
  [(c) Report.--
          [(1) In general.--Not later than 120 days following 
        the termination of the Conference, a final report of 
        the Conference, containing such findings and 
        recommendations as may be made by the Conference, shall 
        be submitted to the President. The final report shall 
        be made public and, not later than 90 days after 
        receipt by the President, transmitted to the Congress 
        together with a statement of the President containing 
        recommendations for implementing the report.
          [(2) Publication and distribution.--The Conference is 
        authorized to publish and distribute the report 
        described in this section. Copies of the report shall 
        be provided to the Federal depository libraries and 
        made available to local urban public school leaders.

[SEC. 10982. WHITE HOUSE CONFERENCE ON RURAL EDUCATION.

  [(a) Authorization To Call Conference.--
          [(1) In general.--The President is authorized to call 
        and conduct a White House Conference on Rural Education 
        (hereafter in this section referred to as the 
        ``Conference'').
          [(2) Date.--The Conference shall be held not earlier 
        than November 1, 1995, and not later than October 30, 
        1996.
          [(3) Purpose.--The purposes of the Conference shall 
        be to--
                  [(A) develop recommendations and strategies 
                for the improvement of rural public education;
                  [(B) marshal the forces of the private 
                sector, governmental agencies at all levels, 
                parents, teachers, communities, and education 
                officials to assist rural public schools in 
                achieving National Education Goals, and make 
                recommendations on the roles rural public 
                schools can play to assist with local rural 
                community economic revitalization; and
                  [(C) conduct the initial planning for a 
                permanent national commission on rural public 
                education.
  [(b) Composition of Conference.--
          [(1) In general.--The Conference shall be comprised 
        of--
                  [(A) representatives of eligible public 
                school systems, including members of the 
                governing body of local educational agencies, 
                school superintendents, and classroom teachers;
                  [(B) representatives of the Congress, the 
                Department, and other Federal agencies;
                  [(C) State elected officials and 
                representatives from State educational 
                agencies;
                  [(D) individuals with special knowledge of, 
                and expertise in, rural education, including 
                individuals involved with rural postsecondary 
                education; and
                  [(E) individuals with special knowledge of, 
                and expertise in, rural business.
          [(2) Selection.--The President shall select one-third 
        of the participants of the Conference, the majority 
        leader of the Senate, in consultation with the minority 
        leader of the Senate, shall select one-third of such 
        participants, and the Speaker of the House of 
        Representatives, in consultation with the minority 
        leader of the House, shall select the remaining one-
        third of such participants.
          [(3) Representation.--In selecting the participants 
        of the Conference, the President, the majority leader 
        of the Senate, and the Speaker of the House of 
        Representatives shall ensure that the participants are 
        as representative of the ethnic, racial, and language 
        diversity of rural areas as is practicable.
  [(c) Report.--
          [(1) In general.--Not later than 120 days following 
        the termination of the Conference, a final report of 
        the Conference, containing such findings and 
        recommendations as may be made by the Conference, shall 
        be submitted to the President. The final report shall 
        be made public and, not later than 90 days after 
        receipt by the President, transmitted to the Congress 
        together with a statement of the President containing 
        recommendations for implementing the report.
          [(2) Publication and distribution.--The Conference is 
        authorized to publish and distribute the report 
        described in this section. Copies of the report shall 
        be provided to the Federal depository libraries and 
        made available to local rural school leaders and 
        teachers.]

                   PART J--RURAL EDUCATION INITIATIVE

SEC. 10951. SHORT TITLE.

  This part may be cited as the ``Rural Education Initiative 
Act of 1999''.

SEC. 10952. FINDINGS.

  Congress finds the following:
          (1) The National Center for Educational Statistics 
        reports that 46 percent of our Nation's public schools 
        serve rural areas.
          (2) While there are rural education initiatives 
        identified at the State and local level, no Federal 
        education policy focuses on the specific and unique 
        needs of rural school districts and schools.
          (3) 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.
          (4) 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.
          (5) 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 3 or more subject areas than 
        teachers in urban schools. Rural schools also face 
        other tough challenges, such as shrinking local tax 
        bases, high transportation costs, aging buildings, 
        limited course offerings, and limited resources.

               Subpart 1--Small and Rural School Program

SEC. 10961. 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 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.
          (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 located in a community 
                with a Rural-Urban Continuum Code of 6, 7, 8, 
                or 9, as determined by the Secretary of 
                Agriculture; 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 certification provided by 
        the local educational agency, or the State educational 
        agency on behalf of the local educational agency, that 
        the local educational agency is located in an area 
        defined as rural by a governmental agency of the State.
  (c) Applicable Funding.--In this section, the term 
``applicable funding'' means funds provided under each of 
titles II, IV, VI, parts A and C of title VII, and part I of 
title X.
  (d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the 
applicable funding to local educational agencies for 
alternative uses under this section for the fiscal year at the 
same time that the State educational agency disburses the 
applicable funding to local educational agencies that do not 
intend to use the applicable funding for such alternative uses 
for the fiscal year.
  (e) Supplement Not Supplant.--Funds 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) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered 
to be references to funds for this section.

SEC. 10962. PROGRAM AUTHORIZED.

  (a) In General.--The Secretary is authorized to award grants 
to eligible local educational agencies 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) Eligibility.--
          (1) In general.--A local educational agency shall be 
        eligible to receive a grant under this section 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 located in a community 
                with a Rural-Urban Continuum Code of 6, 7, 8, 
                or 9, as determined by the Secretary of 
                Agriculture; 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 certification provided by 
        the local educational agency, or the State educational 
        agency on behalf of the local educational agency, that 
        the local educational agency is located in an area 
        defined as rural by a governmental agency of the State.
  (c) Allocation.--
          (1) In general.--Except as provided in paragraph (3), 
        the Secretary shall award a grant to an eligible local 
        educational agency for a fiscal year in an amount equal 
        to the initial amount determined under paragraph (2) 
        for the fiscal year minus the total amount received 
        under the provisions of law described under section 
        10961(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.
          (5) 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.
  (d) Disbursal.--The Secretary shall disburse the funds 
awarded to a local educational agency under this section for a 
fiscal year not later than July 1 of that year.
  (e) 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.
  (f) 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. 10963. ACCOUNTABILITY.

  (a) Academic Achievement.--
          (1) In general.--Each local educational agency that 
        uses or receives funds under section 10961 or 10962 for 
        a fiscal year shall administer an assessment consistent 
        with section 1111 of title I.
          (2) Special rule.--Each local educational agency that 
        uses or receives funds under section 10961 or 10962 
        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 10961(c) shall--
          (1) after the 2d year that a local educational agency 
        participates in a program under section 10961 or 10962 
        and on the basis of the results of the assessments 
        described in subsection (a), determine whether the 
        students served by the local educational agency 
        participating in the program performed in accordance 
        with section 1111 of title I; and
          (2) only permit those local educational agencies that 
        so participated and met the requirements of section 
        1111(b)(2) of title I to continue to so participate.

             Subpart 2--Low-Income And Rural School Program

SEC. 10971. PROGRAM AUTHORIZED.

  (a) Reservations.--From amounts appropriated under section 
10982 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 10982 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 10973 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 10982 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 10973 a 
                specially qualified agency in such State 
                desiring a grant under this subpart shall apply 
                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 located in a community with a Rural-Urban 
                Continuum Code of 6, 7, 8, or 9, as determined 
                by the Secretary of Agriculture.
          (2) Uses of funds.--Grant funds awarded to local 
        educational agencies or made available to schools under 
        this subpart shall be used for--
                  (1) educational technology, including 
                software and hardware;
                  (2) professional development;
                  (3) technical assistance;
                  (4) teacher recruitment and retention;
                  (5) parental involvement activities; or
                  (6) academic enrichment programs.

SEC. 10972. 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. 10973. 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 to be achieved which may include specific 
educational goals and objectives relating to increased student 
academic achievement, decreased student drop-out rates, or such 
other factors that the State educational agency or specially 
qualified agency may choose to measure.

SEC. 10974. 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 10973.
  (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 10971(b)(4)(A).
  (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. 10975. DEFINITIONS.

  For the purposes of 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 program under this 
        subpart in a fiscal year, that may apply directly to 
        the Secretary for a grant in such year in accordance 
        with section 10971(b)(4).

                     Subpart 3--General Provisions

SEC. 10981. DEFINITION.

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

SEC. 10982. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part $125,000,000 for fiscal year 2000 and such sums as may be 
necessary for each of 4 succeeding fiscal years to be 
distributed equally between subparts 1 and 2.

           *       *       *       *       *       *       *


                 TITLE XV--TEACHER LIABILITY PROTECTION

SEC. 15001. SHORT TITLE.

  This title may be cited as the ``Teacher Liability Protection 
Act of 1999''.

SEC. 15002. FINDINGS AND PURPOSE.

  (a) Findings.--Congress makes the following findings:
          (1) The ability of teachers, principals and other 
        school professionals to teach, inspire and shape the 
        intellect of our Nation's elementary and secondary 
        school students is deterred and hindered by frivolous 
        lawsuits and litigation.
          (2) Each year more and more teachers, principals and 
        other school professionals face lawsuits for actions 
        undertaken as part of their duties to provide millions 
        of school children quality educational opportunities.
          (3) Too many teachers, principals and other school 
        professionals face increasingly severe and random acts 
        of violence in the classroom and in schools.
          (4) Providing teachers, principals and other school 
        professionals a safe and secure environment is an 
        important part of the effort to improve and expand 
        educational opportunities.
          (5) Clarifying and limiting the liability of 
        teachers, principals and other school professionals who 
        undertake reasonable actions to maintain order, 
        discipline and an appropriate educational environment 
        is an appropriate subject of Federal legislation 
        because--
                  (A) the scope of the problems created by the 
                legitimate fears of teachers, principals and 
                other school professionals about frivolous, 
                arbitrary or capricious lawsuits against 
                teachers is of national importance; and
                  (B) millions of children and their families 
                across the Nation depend on teachers, 
                principals and other school professionals for 
                the intellectual development of children.
  (b) Purpose.--The purpose of this title is to provide 
teachers, principals and other school professionals the tools 
they need to undertake reasonable actions to maintain order, 
discipline and an appropriate educational environment.

SEC. 15003. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

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

SEC. 15004. LIMITATION ON LIABILITY FOR TEACHERS.

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

SEC. 15005. LIABILITY FOR NONECONOMIC LOSS.

  (a) General Rule.--In any civil action against a teacher, 
based on an action of a teacher acting within the scope of the 
teacher's responsibilities to a school or governmental entity, 
the liability of the teacher for noneconomic loss shall be 
determined in accordance with subsection (b).
  (b) Amount of Liability.--
          (1) In general.--Each defendant who is a teacher, 
        shall be liable only for the amount of noneconomic loss 
        allocated to that defendant in direct proportion to the 
        percentage of responsibility of that defendant 
        (determined in accordance with paragraph (2)) for the 
        harm to the claimant with respect to which that 
        defendant is liable. The court shall render a separate 
        judgment against each defendant in an amount determined 
        pursuant to the preceding sentence.
          (2) Percentage of responsibility.--For purposes of 
        determining the amount of noneconomic loss allocated to 
        a defendant who is a teacher under this section, the 
        trier of fact shall determine the percentage of 
        responsibility of that defendant for the claimant's 
        harm.

SEC. 15006. DEFINITIONS.

  For purposes of this title:
          (1) Economic loss.--The term ``economic loss'' means 
        any pecuniary loss resulting from harm (including the 
        loss of earnings or other benefits related to 
        employment, medical expense loss, replacement services 
        loss, loss due to death, burial costs, and loss of 
        business or employment opportunities) to the extent 
        recovery for such loss is allowed under applicable 
        State law.
          (2) Harm.--The term ``harm'' includes physical, 
        nonphysical, economic, and noneconomic losses.
          (3) Noneconomic losses.--The term ``noneconomic 
        losses'' means losses for physical and emotional pain, 
        suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss 
        of society and companionship, loss of consortium (other 
        than loss of domestic service), hedonic damages, injury 
        to reputation and all other nonpecuniary losses of any 
        kind or nature.
          (4) School.--The term ``school'' means a public or 
        private kindergarten, a public or private elementary 
        school or secondary school (as defined in section 
        14101, or a home school.
          (5) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, any other 
        territory or possession of the United States, or any 
        political subdivision of any such State, territory, or 
        possession.
          (6) Teacher.--The term ``teacher'' means a teacher, 
        instructor, principal, administrator, or other 
        educational professional that works in a school, a 
        local school board and any member of such board, and a 
        local educational agency and any employee of such 
        agency.

SEC. 15007. EFFECTIVE DATE.

  (a) In General.--This title shall take effect 90 days after 
the date of enactment of the Student Results Act of 1999.
  (b) Application.--This title applies to any claim for harm 
caused by an act or omission of a teacher if that claim is 
filed on or after the effective date of the Student Results Act 
of 1999, without regard to whether the harm that is the subject 
of the claim or the conduct that caused the harm occurred 
before such effective date.

                TITLE XVI--SCHOOLWIDE PROGRAM ADJUSTMENT

SEC. 16001. SCHOOLWIDE PROGRAM ADJUSTMENT.

  Notwithstanding the provisions of section 1114, a local 
educational agency may consolidate funds under part A of title 
I, 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.
                              ----------                              


                      Education Amendments of 1978

                       TITLE XI--INDIAN EDUCATION

Part A--Assistance to Local Educational Agencies

           *       *       *       *       *       *       *


               PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

[SEC. 1121. STANDARDS FOR THE BASIC EDUCATION OF INDIAN CHILDREN IN 
                    BUREAU OF INDIAN AFFAIRS SCHOOLS.

  [(a)(1) The purpose of the standards developed under this 
section shall be to afford Indian students being served by a 
Bureau funded school with the same opportunities as all other 
students to achieve the National Education Goals embodied in 
the Goals 2000: Educate America Act. Consistent with the 
provisions of this section and section 1131, the Secretary 
shall take such actions as are necessary to coordinate 
standards developed and implemented under this section with 
those in the State improvement plans developed and implemented 
pursuant to the Goals 2000: Educate America Act for the States 
in which each Bureau funded school operates. In developing and 
reviewing such standards and coordination, the Secretary shall 
utilize the findings and recommendations of the panel 
established in section 315(b)(4) of such Act.
  [(2) The Secretary shall take immediate steps to encourage 
school boards of Bureau funded schools to engage their 
communities in adopting declarations of purposes of education 
in their communities, analyzing the implications of such 
purposes for their schools, and determining how such purposes 
may be made to motivate students and faculties and otherwise 
animate their schools by May 1, 1995. Such declarations shall 
represent the aspirations of a community for the kinds of 
persons such community wants its children to increasingly 
become, and shall include such purposes as assuring that all 
learners are becoming accomplished in ways important to 
themselves and respected by their parents and communities, 
shaping worthwhile and satisfying lives for themselves, 
exemplifying the best values of the community and humankind, 
and becoming increasingly effective in shaping the character 
and quality of the world all learners share.
  [(b) Within 18 months of the publication of the voluntary 
national content standards described in section 203(a)(2) of 
the Goals 2000: Educate America Act, the Secretary, in 
consultation with the Secretary of Education and Indian 
organizations and tribes, shall carry out or cause to be 
carried out by contract with an Indian organization such 
studies and surveys, making the fullest use possible of other 
existing studies, surveys, and plans, as are necessary 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 equal educational opportunity for such children.
  [(c)(1) The Secretary shall revise the minimum academic 
standards published in the Federal Register of September 9, 
1985 (50 Fed. Reg. 174) for the basic education of Indian 
children in accordance with the purpose described in subsection 
(a) and the findings of the studies and surveys described in 
subsection (b), and shall publish such revised standards in the 
Federal Register for the purpose of receiving comments from the 
tribes and other interested parties. Within 21 months of the 
date of enactment of the Improving America's Schools Act of 
1994, the Secretary shall establish final standards, distribute 
such standards to all the tribes and publish such final 
standards in the Federal Register. The Secretary shall revise 
such final 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.
  [(2) The standards described in paragraph (1) shall apply to 
Bureau schools, and subject to subsection (f), to contract or 
grant schools, and may also serve as a model for educational 
programs for Indian children in public schools. In establishing 
and revising such standards, the Secretary shall take into 
account the special needs of Indian students and the support 
and reinforcement of the specific cultural heritage of each 
tribe.
  [(d) 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 shall 
be in compliance with the minimum standards required for 
accreditation of schools in the State where the school is 
located.
  [(e) 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 subsection (c) and (d), where such standards 
are deemed by such body to be inappropriate. The tribal 
governing body or designated school board shall, within 60 days 
thereafter, submit to the Secretary a proposal for alternative 
standards that take into account the specific needs of the 
tribe's children. Such revised 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 unreviewable.
  [(f)(1) The Secretary, through contracting and grant-making 
procedures, shall assist school boards of contract or grant 
schools in the 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. At 
the request of a contract or grant school board, the Secretary 
shall provide alternative or modified standards for the 
standards established under subsections (c) and (d) to take 
into account the needs of the Indian children and the contract 
or grant school.
  [(2) Within 1 year of the date of the enactment of the Indian 
Education Technical Amendments Act of 1985, 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 or grant schools. Such standards shall yield data 
results comparable to those used by Bureau schools.
  [(g) Subject to subsections (e) and (f), the Secretary shall 
begin to implement the standards established under this section 
immediately upon the date of their establishment. Not later 
than January 1, 1995, and at each time thereafter 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 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 time lines for bringing each school up to the level 
required by such standards.
  [(h)(1) 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, except that, 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, the requirements of this 
subsection shall not apply. The requirements of this subsection 
shall not apply when a temporary closure, consolidation, or 
substantial curtailment is required by plant conditions which 
constitute an immediate hazard to health and safety.
  [(2) The Secretary shall, by regulation, promulgate standards 
and procedures for the closing, consolidation, or substantial 
curtailment of Bureau schools in accordance with the 
requirements of this subsection.
  [(3) Whenever closure, transfer to any other 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 as soon as such consideration or review begins, 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 any other 
authority, consolidate, or substantially curtail a school, the 
affected tribe, tribal governing body, and designated local 
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 Congress and published in the Federal Register.
  [(4) The Secretary may terminate, contract, transfer to any 
other authority, or consolidate or substantially curtail the 
operation or facilities of--
          [(A) any Bureau funded school that is operated on or 
        after April 1, 1987,
          [(B) any program of such a school that is operated on 
        or after April 1, 1987, 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) There are authorized to be appropriated such sums as may 
be necessary, for academic program costs, in order to bring all 
Bureau schools and contract or grant schools up to the level 
required by the applicable standards established under this 
section.
  [(j)(1) All Bureau funded schools shall include within their 
curriculum a program of instruction relating to alcohol and 
substance abuse prevention and treatment. The Assistant 
Secretary shall provide the technical assistance necessary to 
develop and implement such a program for students in 
kindergarten and grades 1 through 12, at the request of--
          [(A) any Bureau school (subject to the approval of 
        the school board of such school);
          [(B) any school board of a school operating under a 
        contract entered into under the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450 et seq.); or
          [(C) any school board of a school operating under a 
        grant under the Tribally Controlled Schools Act of 
        1988.
  [(2) In schools operated directly by the Bureau, the 
Secretary shall provide for--
          [(A) accurate reporting of all incidents relating to 
        alcohol and substance abuse; and
          [(B) individual student crisis intervention.
  [(3) The programs requested under paragraph (1) shall be 
developed in consultation with the Indian tribe that is to be 
served by such program and health personnel in the local 
community of such tribe.
  [(4) Schools requesting program assistance under this 
subsection are encouraged to involve family units and, where 
appropriate, tribal elders and Native healers in such 
instructions.
  [(k) For purposes of this section, 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.
  [(l)(1)(A)(i) The Secretary shall only consider the factors 
described in subparagraphs (B) and (C) 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) The Secretary shall give consideration to all of the 
factors under clause (i), but none of the applications under 
clause (i) may be denied based primarily upon the geographic 
proximity of public education.
  [(B) The Secretary shall consider the following factors 
relating to the program that is the subject of an application 
described in subparagraph (A):
          [(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 or, 
        in the case of a Bureau funded school, of projected 
        needs analysis done either by a tribe or by Bureau 
        personnel.
          [(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.
  [(C) The Secretary shall consider with respect to 
applications described in subparagraph (A) the following 
factors relating to all the educational services available at 
the time the application is considered:
          [(i) Geographic and demographic factors in the 
        affected areas.
          [(ii) Adequacy and comparability of programs already 
        available.
          [(iii) Consistency of available programs with tribal 
        educational codes or tribal legislation on education.
          [(iv) The history and success of these services for 
        the proposed population to be served, as determined 
        from all factors and not just standardized examination 
        performance.
  [(2)(A) The Secretary shall make a determination of whether 
to approve any application described in paragraph (1)(A) by not 
later than the date that is 180 days after the day on which 
such application is submitted to the Secretary.
  [(B) If the Secretary fails to make the determination 
described in subparagraph (A) with respect to an application by 
the date described in subparagraph (A), the application shall 
be treated as having been approved by the Secretary.
  [(3)(A) Any application described in paragraph (1)(A) may be 
submitted to 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)--
          [(i) shall provide information concerning each of the 
        factors described in paragraph (1)(B), and
          [(ii) may provide information concerning the factors 
        described in paragraph (1)(C).
  [(4) 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 
        by not later than the date that is 180 days after the 
        day on which 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)(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 with the commencement of the academic year succeeding 
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 by reason of 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.

[SEC. 1122. NATIONAL CRITERIA FOR DORMITORY SITUATIONS.

  [(a) The Secretary, in consultation with the Secretary of the 
Department of Education, and in consultation with Indian 
organizations and tribes, shall conduct or cause to be 
conducted by contract with an Indian organization, a study of 
the costs applicable to boarding arrangements for Indian 
students provided in Bureau schools, and contract or grant 
schools, for the purpose of establishing national criteria for 
such dormitory situations. Such criteria shall include adult-
child ratios, needs for counselors (including special needs 
related to off-reservation boarding arrangements), space, and 
privacy.
  [(b) Not later than January 1, 1996, the Secretary shall 
propose such criteria, and shall distribute such proposed 
criteria to the tribes and publish such proposed criteria in 
the Federal Register for the purpose of receiving comments from 
the tribes and other interested parties. Within 18 months of 
the date of the enactment of the Improving America's Schools 
Act of 1994, the Secretary shall establish final criteria, 
distribute such final criteria to all the tribes, and publish 
such final criteria in the Federal Register. The Secretary 
shall revise such final criteria periodically as necessary. Any 
revisions to the criteria established under this section shall 
be developed subject to requirements established under section 
1131.
  [(c) The Secretary shall begin to implement the criteria 
established under this section immediately upon the date of the 
establishment of such criteria. Not later than January 1, 1997, 
and at each time thereafter 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 Bureau contract boarding schools up to the 
criteria established under this section. Such plan shall 
include predictions for the relative need for each boarding 
school in the future, detailed information on the status of 
each school in relation to the criteria established under this 
section, specific cost estimates for meeting such criteria at 
each school, and specific time lines for bringing each school 
up to the level required by such criteria.
  [(d)(1) The criteria established under this section may be 
waived in the same manner as the standards provided under 
section 1121(c) may be waived under section 1121(e).
  [(2) 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.
  [(e) There are authorized to be appropriated such sums as may 
be necessary in order to bring each school up to the level 
required by the criteria established under this section.

[SEC. 1123. REGULATIONS.

  [(a) 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. Accordingly, such 
provisions may be altered only by means of an amendment to this 
subsection that is contained in an Act or joint resolution 
which is enacted into law. To the extent that such provisions 
of part 32 do not conform with this Act or any statutory 
provision of law enacted before the date of enactment of this 
Act, the provisions of this Act and the provisions of such 
other statutory law shall govern.
  [(b) The provisions of parts 31, 33, 36, 39, 42, and 43 of 
title 25 of the Code of Federal Regulations, as in effect on 
January 1, 1987, shall be applied by the Federal Government and 
shall not, before July 1, 1989, be amended, revoked, or altered 
in any manner. No officer or employee of the executive branch 
shall have the authority to issue any other regulations, prior 
to July 1, 1989, that supersede, supplement, or otherwise 
affect the provisions of such parts. To the extent that the 
provisions of such parts do not conform with this Act or any 
statutory provision of law enacted before the date of enactment 
of this Act, the provisions of this Act and the provisions of 
such other statutory law shall govern.
  [(c) After June 30, 1989, no regulation prescribed for the 
application of any program provided under this title shall 
become effective unless--
          [(1) the regulation has been published as a proposed 
        regulation in the Federal Register,
          [(2) an opportunity of not less than 90 days has been 
        afforded the public to comment on the published 
        proposed regulation, and
          [(3) the regulation has, after such period for public 
        comment, been published in the Federal Register as a 
        final regulation.
  [(d) For purposes of this section, 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) The Secretary shall, in accordance with this section, 
establish separate geographical attendance areas for each 
Bureau school.
  [(b)(1) Except as provided in paragraph (2), on or after July 
1, 1985, no attendance area shall be changed 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 (i) afforded 
at least six months notice of the intention of the Bureau to 
change or establish such attendance area, and (ii) given 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.
  [(2) In any case where there is more than 1 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) In any case where there is only 1 Bureau operated 
program located on an Indian reservation, the attendance area 
for the program shall be the boundaries of the reservation 
served, and those students residing near the reservation shall 
also receive services from such program.
  [(d) The Bureau shall include in the regulations the 
requirement that each appropriate education line officer 
coordinate and consult with the affected tribes and relevant 
school boards in the establishment of such geographic 
boundaries.

[SEC. 1125. FACILITIES CONSTRUCTION.

  [(a) The Secretary shall immediately begin to bring all 
schools, dormitories, and other facilities operated by the 
Bureau or under contract or grant with the Bureau in connection 
with the education of Indian children into compliance with all 
applicable Federal, tribal, or State health and safety 
standards, whichever provide 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 (29 U.S.C. 794), and with 
the Americans with Disabilities Act of 1990, except that 
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 enactment of the 
Improving America's Schools Act of 1994.
  [(b) By January 1, 1996, and at each time thereafter 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 such facilities 
into compliance with such standards. 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 time lines 
for bringing each school into compliance with such standards.
  [(c) Within six months of the date of enactment of this Act, 
the Secretary shall submit to the appropriate committees of 
Congress, and publish in the Federal Register, the system used 
to establish priorities for school construction projects. At 
the time any budget request for school construction is 
presented, the Secretary shall publish in the Federal Register 
and submit with the budget request the current list of all 
school construction priorities.
  [(d)(1) A Bureau school may be closed or consolidated, and 
the programs of a Bureau school may be substantially curtailed, 
by reason of plant conditions that constitute an immediate 
hazard tohealth and safety only if a health and safety officer 
of the Bureau determines that such conditions exist at the Bureau 
school.
  [(2)(A) In making determinations described in paragraph (1) 
before July 1, 1989, health and safety officers of the Bureau 
shall use the health and safety guidelines of the Bureau that 
were in effect on January 1, 1988.
  [(B)(i) If--
          [(I) the Secretary fails to publish in the Federal 
        Register in final form before July 1, 1989, and
          [(II) action described in paragraph (1) is taken 
        after June 30, 1989, and before the date on which such 
        regulations are published in final form in the Federal 
        Register by reason of the condition of any plant,
an inspection of the condition of such plant shall be conducted 
by an appropriate tribal, county, municipal, or State health 
and safety officer 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.
  [(ii) The inspection required under clause (i) shall be 
conducted by a health and safety officer designated jointly by 
the Secretary and the tribes affected by the action described 
in paragraph (1). If the Secretary and such tribes are unable 
to agree on the designation of the health and safety officer, 
the Secretary shall designate the health and safety officer and 
shall provide notice of such designation to each of such tribes 
before the inspection is conducted by such officer.
  [(iii) If the health and safety officer conducting an 
inspection of a plant required under clause (i) determines that 
conditions at the plant do not constitute an immediate hazard 
to health and safety, any consolidation or curtailment that was 
made by reason of conditions at the plant shall immediately 
cease and any school closed by reason of conditions at the 
plant shall be reopened immediately.
  [(3) If--
          [(A) a Bureau school is temporarily closed or 
        consolidated, or the programs of a Bureau school are 
        substantially curtailed, by reason of plant conditions 
        that constitute an immediate hazard to health and 
        safety, and
          [(B) the Secretary estimates that the closure, 
        consolidation, or curtailment will be more than 1 year 
        in duration,
the Secretary shall submit to the Congress, by not later than 
the date that is 6 months after the date on which the closure, 
consolidation, or curtailment is initiated, a report which sets 
forth the reasons for such temporary actions and the actions 
the Secretary is taking to eliminate the conditions that 
constitute the hazard.
  [(e) There are authorized to be appropriated such sums as may 
be necessary to carry out subsection (a).

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

  [(a) 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.
  [(b) The Director of the Office shall direct and supervise 
the operations of all personnel directly and substantially 
involved with provision of education services by the Bureau, 
including school or institution custodial or maintenance 
personnel. The Assistant Secretary for Indian Affairs shall 
provide for the adequate coordination between the affected 
Bureau Offices and the Office to facilitate the consideration 
of all contract functions relating to education. Except as 
required by section 1129, nothing in this Act shall be 
construed to require the provision of separate support services 
for Indian education.
  [(c) Education personnel who are under the direction and 
supervision of the Director of the Office 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, and curriculum.
  [(d)(1) The Assistant Secretary shall submit in the annual 
Budget a plan--
          [(A) for school facilities to be constructed under 
        the system required by section 1125(c);
          [(B) for establishing priorities among projects and 
        for the improvement and repair of education facilities, 
        which together shall form the basis for the 
        distribution of appropriated funds; and
          [(C) including a 5-year plan for capital 
        improvements.
  [(2)(A) 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 education facility;
          [(ii) similar treatment of all Bureau funded schools;
          [(iii) a notice of an allocation of appropriated 
        funds from the Director of the Office directly to the 
        appropriate education line officers; and
          [(iv) a system for the conduct of routine preventive 
        maintenance.
  [(B) The appropriate education line officers shall make 
arrangements for the maintenance of education facilities with 
the local supervisors of the Bureau maintenance personnel who 
are under the authority of the agency superintendent or area 
directors, respectively. 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 part 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. Subject to 
the requirements of subsection (b) of this section, nothing in 
this Act shall be construed to require the provision of 
separate operations and maintenance personnel for the Office.
  [(3) The requirements of this subsection shall be implemented 
not later than July 1, 1995.
  [(e) 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 of, 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 use to which such 
gift or bequest is put, and any positive results achieved by 
such action.
  [(f) For the purpose of this section the term ``functions'' 
includes powers and duties.

[SEC. 1127. ALLOTMENT FORMULA.

  [(a)(1) The Secretary shall establish, by regulation adopted 
in accordance with section 1139, 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 size 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 boarding arrangements, 
                where determined necessary by a tribal 
                governing body or designated local school 
                board;
                  [(vii) costs associated with greater lengths 
                of service by educational personnel; and
                  [(viii) special programs 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) Upon the establishment of the standards required by 
sections 1121 and 1122, the Secretary shall revise the formula 
established under this subsection to reflect the cost and 
funding standards so established. Prior to January 1, 1996, the 
Secretary shall review the formula established under this 
section and shall take such steps as may be necessary to 
increase the availability of counseling services for students 
in off-reservation boarding schools and other Bureau operated 
residential facilities. Concurrent with suchaction, the 
Secretary shall review the standards established under section 1121 to 
be certain that adequate provision is made for parental notification 
regarding, and consent for, such counseling services.
  [(b) Notwithstanding any other provisions 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)(1) For fiscal year 1990, and for each subsequent fiscal 
year, the Secretary shall adjust the formula established under 
subsection (a) to--
          [(A) use 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) consider 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; and
          [(C) take into account the provision of residential 
        services on a less than 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.
  [(2)(A) The Secretary shall reserve for national school board 
training 0.2 percent of the funds appropriated for each fiscal 
year for distribution under this section. Such training shall 
be conducted through the same organizations through which, and 
in the same manner in which, the training was conducted in 
fiscal year 1992, except that the contracts for distribution of 
such funds shall require that such funds be distributed by the 
recipient organizations in a manner that assures the same pro 
rata share is made available for training for each school board 
in the system. If the contract for such training is not awarded 
before May 1 of each fiscal year, the contract under which such 
training was provided for the fiscal year preceding such fiscal 
year shall be renewed by the Secretary for such fiscal year. 
The agenda for the training sessions shall be established by 
the school boards through their regional or national 
organizations.
  [(B) For each year in which the Secretary uses a weighted 
unit formula established under subsection (a) to fund Bureau 
schools, a Bureau school which generates less than 168 weighted 
units shall receive an additional 2 weighted units to defray 
school board activities.
  [(C) 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) $5,000, or
          [(ii) the lesser of--
                  [(I) $15,000, or
                  [(II) 1 percent of such allotted funds,
for school board activities for such school, including and 
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.
  [(3) The Secretary shall adjust the formula established under 
subsection (a) to use a weighted unit of 2.0 for each eligible 
Indian student that--
          [(A) is gifted and talented, and
          [(B) is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by 
the school.
  [(4)(A) The Secretary shall adjust the formula established 
under subsection (a) to use a weighted unit of 0.25 for each 
eligible Indian student who is enrolled in a year-long credit 
course in an Indian or Native language as part of the regular 
curriculum of a school, in considering the number of eligible 
Indian students served by such school.
  [(B) The adjustment required under subparagraph (A) 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 following the 
        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.
  [(d) 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, 
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 at a schoolsite (as defined in 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 enacted to meet increased 
pay costs attributable to school level personnel shall be 
distributed under this section.
  [(f) For the purpose of this section, the term ``eligible 
Indian student'' means a student who--
          [(1) is a member of or is at least a \1/4\ 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 to 
        Indians 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 boarding school.
  [(g)(1) 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.
  [(2) 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,
          [(B) the school board consents,
          [(C) the student is a dependent of a Bureau, Indian 
        Health Service, or tribal government, employee who 
        lives on or near the school site, or
          [(D) 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, is in addition 
        to the school's allocation under this section.
  [(3) 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 is in addition to 
funding under this section.
  [(h) Notwithstanding any other provision of law, at the 
election of the school board of a Bureau school made at any 
time during the fiscal year, a portion equal to not more than 
15 percent of the funds allocated with respect to a school 
under this section for any fiscal year shall remain available 
to the school for expenditure without fiscal year limitation. 
The Assistant Secretary shall take steps as may be necessary to 
implement this provision immediately.
  [(i) Beginning with academic year 1994-1995, tuition for the 
out-of-State students boarding 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 amount 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)(1) The Secretary shall, subject to the availability of 
appropriated funds, 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 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) 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)(1) 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) 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)(1) 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) The administrative cost percentage rate shall be 
determined to the \1/100\ of a decimal point.
  [(d)(1)(A) 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.
  [(B) 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 subparagraph (A).
  [(2) 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.
  [(3) 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.
  [(4) 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--
          [(A) 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
          [(B) operates 1 or more other programs under a 
        contract or grant provided under the Indian Self-
        Determination and Education Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal 
organization is provided with the full amount of the 
administrative costs, and of the indirect costs, that are 
associated with operating the contract or grant school, a 
school operated under the Tribally Controlled Schools Act of 
1988, and all of such other programs, except that funds 
appropriated for implementation of this section shall be used 
only to supply the amount of the grant required to be provided 
by this section.
  [(e) For purposes of this section:
          [(1)(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) 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)(A) Except as otherwise provided in this 
        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 
                2 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) The term ``maximum base rate'' means 50 percent.
          [(5) The term ``minimum base rate'' means 11 percent.
          [(6) The term ``standard direct cost base'' means 
        $600,000.
          [(7) 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.
  [(f)(1) Upon the date of enactment of the Indian Education 
Amendments of 1988, the Secretary shall--
          [(A) conduct such studies as may be needed to 
        establish an empirical basis for determining relevant 
        factors substantially affecting the required 
        administrative costs of tribal elementary and secondary 
        educational 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) 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) In carrying out the studies required under this 
subsection, the Secretary shall obtain the input of, and afford 
an opportunity to participate to, the Inspector General of the 
Department of the Interior.
  [(4) Determinations described in paragraph (2)(C) shall be 
based on what is pragmatically possible to do at each location 
studied, given prudent management practice, irrespective of 
whether required administrative services were actually or fully 
delivered at these sites, or other services were delivered 
instead, during the period of the study.
  [(5) Upon completion of the studies conducted under paragraph 
(1), but in no case later than October 1, 1989, the Secretary 
shall submit to the Congress a report on the findings of the 
studies, together with determinations based upon such findings 
that would affect the definitions of terms used in the formula 
that is set forth in subsection (c).
  [(6) The Secretary shall include in the Bureau's 
justification for each appropriations request for each fiscal 
year beginning after fiscal year 1989, a projection of the 
overall costs associated with the formula set forth in 
subsection (c) for all tribal elementary or secondary 
educational programs which the Secretary expects to be funded 
in the fiscal year for which the appropriations are sought.
  [(7) 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.
  [(g)(1) There are authorized to be appropriated for each 
fiscal year such sums as may be necessary to carry out this 
section.
  [(2) 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 grant determined under subsection (b) bears to 
the total of all grants determined under subsection (b) for all 
tribes and tribal organizations for such fiscal year.
  [(h)(1) Notwithstanding any other provision of this section, 
the amount of the grants provided under this section for fiscal 
year 1989 shall--
          [(A) in lieu of being determined under subsection 
        (b), be determined for each tribal elementary or 
        secondary educational program on the same basis that 
        indirect costs were determined for such programs for 
        fiscal year 1988, and
          [(B) be subject to the provisions of subsection (d).
  [(2) Notwithstanding any other provision of this section, the 
amount of the grant provided under this section for fiscal year 
1990 with respect to each tribal elementary and secondary 
educationalprogram that was operated by a tribe or tribal 
organization in fiscal year 1989 shall be equal to--
          [(A) if the amount of the grant determined under 
        subsection (b) for fiscal year 1990 with respect to 
        such program exceeds the amount received by the tribe 
        or tribal organization with respect to such program for 
        administrative costs for fiscal year 1988 (or fiscal 
        year 1989 if such program was not operated by the tribe 
        or tribal organization during fiscal year 1988), the 
        sum of--
                  [(i) such amount received, plus
                  [(ii) \1/3\ of the excess of--
                          [(I) such amount determined under 
                        subsection (b), over
                          [(II) such amount received, or
          [(B) if such amount received exceeds such amount 
        determined under subsection (b), the excess of--
                  [(i) such amount received, over
                  [(ii) an amount equal to \1/3\ of the excess 
                of--
                          [(I) such amount received, over
                          [(II) such amount determined under 
                        subsection (b).
  [(3) Notwithstanding any other provision of this section, the 
amount of the grants provided under this section for fiscal 
year 1991 with respect to each tribal elementary and secondary 
educational program that was operated by a tribe or tribal 
organization in fiscal year 1989 shall be equal to--
          [(A) if the amount of the grant determined under 
        subsection (b) for fiscal year 1991 with respect to 
        such program exceeds the amount received by the tribe 
        or tribal organization with respect to such program for 
        administrative costs for fiscal year 1990, the sum of--
                  [(i) such amount received, plus
                  [(ii) \1/2\ of the excess of--
                          [(I) such amount determined under 
                        subsection (b), over
                          [(II) such amount received, or
          [(B) if such amount received exceeds such amount 
        determined under subsection (b), the excess of--
                  [(i) such amount received, over
                  [(ii) an amount equal to \1/2\ of the excess 
                of--
                          [(I) such amount received over,
                          [(II) such amount determined under 
                        subsection (b).
  [(i) 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) Within 24 months of the date of enactment of the 
Improving America's Schools Act of 1994, the Secretary shall 
establish within the Office 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) The Division shall have the capacity to conduct such 
studies, surveys, or other activities as are necessary to 
gather demographic information on Bureau-funded schools 
(current and future) and project the amount necessary to 
provide Indian students in such schools the educational program 
set forth in this part.
  [(c) The Division shall prepare projections on such amounts, 
along with such other information as the Director of the Office 
shall require, for each fiscal year beginning after October 1, 
1996. The Director of the Office and the Assistant Secretary 
for Indian Affairs shall use such reports when preparing their 
annual budget submissions.

[SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

  [(a)(1) Within six months after the date of enactment of the 
Improving America's Schools Act of 1994, the Secretary shall 
establish, by regulation adopted in accordance with section 
1139, 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)(A) For the purpose of affording adequate notice of 
funding available pursuant to the allotments made by section 
1127, amounts appropriated in an appropriation 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, on 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 actual student attendance.
  [(3)(A) Notwithstanding any law or regulation, the supervisor 
of a Bureau school may expend an aggregate of not more than 
$35,000 of the amount allotted the school under section 1127 to 
acquire supplies and equipment for the school without 
competitive bidding if--
          [(i) the cost for any single item purchased does not 
        exceed $10,000;
          [(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 prices paid, the quantities acquired, and any other 
        information the supervisor or school board considers 
        relevant.
  [(B) 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) 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) 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,
        to fund allotments made under section 1127, 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) In the case of all Bureau schools, allotted funds shall 
be expended on the basis of local financial plans which shall 
be prepared by the local school supervisor in active 
consultation with the local school board for each school, and 
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. The supervisor shall provide 
the appropriate 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. The supervisor 
of the school 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 line education 
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) 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 withina specific period of 
time negotiated under such agreement. The Secretary may approve 
applications for funding tribal divisions of education and the 
development of tribal codes of education from funds appropriated 
pursuant to section 104(a) of such Act.
  [(d) 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)(1) 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 of Indian Affairs shall provide for the utilization 
of any such school facility during any summer in which such 
utilization is requested.
  [(2) Notwithstanding any other provision of law, funds 
authorized under the Act of April 16, 1934 (25 U.S.C. 452 et 
seq.) 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) The Assistant Secretary of 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)(1) From funds allotted to a Bureau school under section 
1127, the Secretary shall, if specifically requested by the 
tribal governing body (within the meaning of section 1121(k)), 
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) 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) 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) Notwithstanding any other provision of law, funds 
received by a Bureau funded school under this title shall not 
be considered Federal funds for purposes of meeting a matching 
funds requirement in any Federal program.

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

  [(a) It shall be the policy of the Secretary and the Bureau, 
in carrying out the functions of the Bureau, to facilitate 
Indian control of Indian affairs in all matters relating to 
education.
  [(b)(1) All actions under this Act shall be done with active 
consultation with tribes.
  [(2) 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 other alternatives, with the views and concerns of 
the interested parties given effect unless the Secretary 
determines, from information educed or presented by the 
interested parties during 1 or more of the discussions and 
deliberations, that there is a substantial reason for another 
course of action. 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. EDUCATION PERSONNEL.

  [(a)(1) 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, and removal of civil 
service employees, shall not apply to educators or to education 
positions (as defined in subsection (n)).
  [(2) Paragraph (1) shall take effect 1 year after the date of 
enactment of this Act.
  [(b) Not later than the effective date of subsection (a)(2), 
the Secretary shall prescribe regulations to carry out this 
section. Such regulations shall govern--
          [(1) the establishment of education positions,
          [(2) the establishment of qualifications for 
        educators,
          [(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 length of the school year applicable to 
        education positions described in subsection (n)(1)(A),
          [(10) the leave system for educators, and
          [(11) such other matters as may be appropriate.
  [(c)(1) 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
          [(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 (d)(2)(A), a determination by a 
        school board that such a person be hired shall be 
        followed by the 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 paragraph 
        (1)(A)(ii) or that such individual has applied at the 
        national level for an education position.
  [(2) 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)(1) In prescribing regulations to govern the appointment 
of educators, the Secretary shall require--
          [(A)(i) that educators employed in a school (other 
        than the supervisor of the school) shall be hired by 
        the supervisor of the school unless there are no 
        qualified applicants available, in which case the 
        vacant position shall be filled at the national level 
        from the 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; and
          [(iii) educators employed in an agency office of the 
        Bureau shall be hired by the superintendent for 
        education of the agency office;
          [(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, 
        and that subject to paragraph (2), a determination by 
        the school board that such individual should or should 
        not be so employed shall be followed by the supervisor 
        (or with respect to the position of supervisor, by the 
        agency superintendent for education); and
          [(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, 
        subject to paragraph (3), a determination by such 
        school board that such individual should or should not 
        be employed shall be followed by the agency 
        superintendent for education.
  [(2)(A) The supervisor of a school may appeal to the 
appropriate agency education line officer any determination by 
the local school board for the school that an individual be 
employed, or not be employed, in an education position in the 
school (other than that of supervisor) by filing a written 
statement describing the determination and the reasons the 
supervisor believes such determination should be overturned. A 
copy of such statement shall be submitted to the local school 
board and such board shall be afforded an opportunity to 
respond, in writing, to such appeal. After reviewing such 
written appeal and response, the education line officer may, 
for good cause, overturn the determination of the local school 
board. The education line officer shall transmit the 
determination of such appeal in the form of a written opinion 
to such board and to such supervisor identifying the reasons 
for overturning such determination.
  [(B) The education line officer of an agency office of the 
Bureau may appeal to the Director of the Office any 
determination by the local school board for the school that an 
individual be employed, or not be employed, as the supervisor 
of a school by filing a written statement describing the 
determination and the reasons the supervisor believes such 
determination should be overturned. A copy of such statement 
shall be submitted to the local school board and such board 
shall be afforded an opportunity to respond, in writing, to 
such appeal. After reviewing such written appeal and response, 
the Director may, for good cause, overturn the determination of 
the local school board. The Director shall transmit the 
determination of such appeal in the form of a written opinion 
to such board and to such education line officer identifying 
the reasons for overturning such determination.
  [(3) The education line officer of an agency office of the 
Bureau may appeal to the Director of the Office any 
determination by the agency school board that an individual be 
employed, or not be employed, in an education position in such 
agency office by filing a written statement describing the 
determination and the reasons the supervisor believes such 
determination should be overturned. A copy of such statement 
shall be submitted to the agency school board and such board 
shall be afforded an opportunity to respond, in writing, to 
such appeal. After reviewing such written appeal and response, 
the Director may, for good cause, overturn the determination of 
the agency school board. The Director shall transmit the 
determination of such appeal in the form of a written opinion 
to such board and to such education line officer identifying 
the reasons for overturning such determination.
  [(4) 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 immediately be forwarded to the Secretary, who 
shall, as soon as possible 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. 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 had 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.
  [(5) Except as expressly provided, nothing in this section 
shall be construed as conferring upon local school boards, 
authority over, or control of, educators.
  [(e)(1) 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) educators employed in Bureau schools shall be 
        notified 60 days prior to the end of the school year 
        whether their employment contract will be renewed for 
        the following year.
  [(2) 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) 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)(1) Notwithstanding any provision of the Indian 
preference laws, such laws shall not apply in the case of any 
personnel action within the purview of this section respecting 
an applicant or employee not entitled to Indian preference if 
each tribal organization concerned grants, in writing, a waiver 
of the application of such laws with respect to such personnel 
action, if such a waiver is in writing deemed to be a necessity 
by the tribal organization, except that this paragraph shall in 
no way relieve the Bureau of 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) 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 
        (43 U.S.C. 1602(c); 85 Stat. 688)); or
          [(B) in connection with any personnel action referred 
        to in this subsection, any local school board as 
        defined in section 1146, and which has been delegated 
        by such governing body the authority to grant a waiver 
        under such subsection with respect to such personnel 
        action.
  [(3) The term ``Indian preference laws'' means section 12 of 
the Act of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986) or any 
other provision of law granting a preference to Indians in 
promotions and other personnel actions, except that such term 
shall not be considered to include section 7(b) of the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 
450e(b)).
  [(g) Subject to the authority of the Office of Personnel 
Management to determine finally the applicability of chapter 51 
of title 5, United States Code, to specific positions and 
employees in the executive branch, the Secretary shall 
determine in accordance with subsection (a)(1) the 
applicability or inapplicability of such chapter to positions 
and employees in the Bureau.
  [(h)(1)(A) Except as otherwise provided in this section, the 
Secretary shall fix the basic compensation or annual salary 
rate for educators and education positions at rates comparable 
to the 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.
  [(B) By not later than October 28, 1988, the Secretary shall 
establish, for contracts for the 1991-1992 academic year, and 
thereafter, the rates 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 enactment of 
such amendments and thereafter) to comparable positions in 
overseas schools under the Defense Department Overseas Teachers 
Pay and Personnel Practices Act, unless the Secretary 
establishes such rates within such 6-month period through 
collective bargaining with the appropriate union representative 
of the education employees that is recognized by the Bureau.
  [(C) By not later than October 28, 1988, the Secretary shall 
establish the rates of basic compensation or annual salary 
rates for the positions of teachers and counselors (including 
dormitory and home-living counselors)--
          [(i) for contracts for the 1989-1990 academic year, 
        at rates which reflect \1/3\ of the changes in the 
        rates applicable to suchpositions on April 28, 1988, 
that must be made to conform the rates to the rates established under 
subparagraph (B) for such positions for contracts for the 1991-1992 
academic year, and
          [(ii) for contracts for the 1990-1991 academic year, 
        at rates which reflect \2/3\ of such changes.
  [(D) The establishment of rates of basic compensation and 
annual salary rates by the Secretary under subparagraphs (B) 
and (C) shall not preclude the use of regulations and 
procedures used by the Bureau before the enactment of the 
Indian Education Amendments of 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.
  [(E)(i) Except as provided in clause (ii), the establishment 
of rates of basic compensation and annual salary rates by the 
Secretary 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 the election under paragraph (2) of subsection 
(o).
  [(ii) Any individual described in clause (i) may, during the 
5-year period beginning on the date on which the Secretary 
establishes rates of basic compensation and annual salary rates 
under subparagraph (B), make an irrevocable election to have 
the basic compensation rate or annual salary rate of such 
individual determined in accordance with this paragraph.
  [(iii) If an individual makes the election described in 
clause (ii), such election shall not affect the application to 
the individual of the same retirement system and leave system 
that applies to the individual during the fiscal year preceding 
the fiscal year in which such election is made, except that the 
individual must use leave accrued during a contract period by 
the end of that contract period.
  [(F) The President shall include with the budget submitted 
under section 1105 of title 31, United States Code, for each of 
the fiscal years 1990, 1991, and 1992 a written statement by 
the Secretary which specifies--
          [(i) the amount of funds the Secretary needs to pay 
        basic compensation and the annual salaries of educators 
        for such fiscal year, and
          [(ii) the amount of funds the Secretary estimates 
        would be needed to pay basic compensation and the 
        annual salaries of educators for such fiscal year if 
        the amendments made to this paragraph by the Indian 
        Education Amendments of 1988 had not been enacted.
  [(2) Each educator employed in an education position in 
Alaska shall be paid a cost-of-living allowance equal to 25 
percent of the rate of basic compensation to which such 
educator is entitled.
  [(3)(A) The Secretary may pay a postdifferential 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 1 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) The request under clause (i) shall be deemed granted as 
requested 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 by 
reason of this subparagraph at the beginning of a school year 
after either--
          [(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.
  [(i) Any individual--
          [(1) who on the date of enactment of this Act is 
        holding a position which is determined under subsection 
        (f) to be an education position and who elects under 
        subsection (o)(2) to be covered under the provisions of 
        this section, or
          [(2) who is an employee of the Federal Government or 
        the municipal government of the District of Columbia 
        and is transferred, promoted, or reappointed, without 
        break in service, from a position under a different 
        leave system to an education position,
shall be credited for the purpose of the leave system provided 
under regulations prescribed pursuant to subsection (b)(10), 
with the annual and sick leave to such individual's credit 
immediately before the effective date of such election, 
transfer, promotion, or reappointment.
  [(j) 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) shall not be so 
liquidated.
  [(k) 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.
  [(l) 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.
  [(m) In the case of any educator employed in an education 
position described in subsection (n)(1)(A) who--
          [(1) is employed at the close of a school year,
          [(2) agrees in writing to serve in such a 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 such receipt 
        of additional compensation.
  [(n) For the purpose of this section--
          [(1) 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) The term ``educator'' means an individual whose 
        services are required, or who is employed, in an 
        education position.
  [(o)(1) Subsections (a) through (n) of this section apply to 
an educator hired after November 1, 1979 (and to an educator 
who elected application under paragraph (2)) and to the 
position in which such individual is employed. Subject to 
paragraph (2), the enactment of this Act shall not affect the 
continued employment of an individual employed on October 31, 
1979 in an education position, or such individual's right to 
receive the compensation attached to such position.
  [(2) Any individual employed in an education position on 
October 31, 1979, may, not later than November 1, 1983, make an 
irrevocable election to be covered under the provisions of 
subsections (a) through (n) of this section.
  [(p)(1) An educator who was employed in an education position 
on October 31, 1979, who was eligible to make an election under 
paragraph (2) of subsection (o) at that time, and who did not 
makethe election under paragraph (2) of subsection (o), may not 
be placed on furlough (within the meaning of section 7511(a)(5) of 
title 5, United States Code) without the consent of such educator for 
an aggregate of more than 4 weeks within the same calendar year, 
unless--
          [(A) the supervisor, with the approval of the local 
        school board (or of the education line officer upon 
        appeal under paragraph (2)), of the Bureau school at 
        which such educator provides services determines that a 
        longer period of furlough is necessary due to an 
        insufficient amount of funds available for personnel 
        compensation at such school, as determined under the 
        financial plan process as determined under section 
        1130(b) of this Act, and
          [(B) all educators (other than principals and 
        clerical employees) providing services at such Bureau 
        school are placed on furloughs of equal length, except 
        that the supervisor, with the approval of the local 
        school board (or of the agency education line officer 
        upon appeal under paragraph (2)), may continue 1 or 
        more educators in pay status if--
                  [(i) such educators are needed to operate 
                summer programs, attend summer training 
                sessions, or participate in special activities 
                including curriculum development committees; 
                and
                  [(ii) such educators are selected based upon 
                such educator's qualifications, after public 
                notice of the minimum qualifications reasonably 
                necessary and without discrimination as to 
                supervisory, nonsupervisory, or other status of 
                the educators who apply.
  [(2) The supervisor of a Bureau school may appeal to the 
appropriate agency education line officer any refusal by the 
local school board to approve any determination of the 
supervisor that is described in paragraph (1)(A) by filing a 
written statement describing the determination and the reasons 
the supervisor believes such determination should be approved. 
A copy of such statement shall be submitted to the local school 
board and such board shall be afforded an opportunity to 
respond, in writing, to such appeal. After reviewing such 
written appeal and response, the education line officer may, 
for good cause, approve the determination of the supervisor. 
The educational line officer shall transmit the determination 
of such appeal in the form of a written opinion to such local 
school board and to the supervisor identifying the reasons for 
approving such determination.

[SEC. 1133. MANAGEMENT INFORMATION SYSTEM.

  [The Secretary shall establish within the Office, within 1 
year after the date of the enactment of the Indian Education 
Amendments of 1984, a computerized management information 
system, which shall provide information to the Office. Such 
information shall include--
          [(1) student enrollment;
          [(2) curriculum;
          [(3) staff;
          [(4) facilities;
          [(5) community demographics;
          [(6) student assessment information; and
          [(7) information on the administrative and program 
        costs attributable to each Bureau program, divided into 
        discreet elements.

[SEC. 1134. BUREAU EDUCATION POLICIES.

  [Within 180 days of the date of enactment of this Act, the 
Secretary shall develop, publish in the Federal Register, and 
submit to all agency and area offices of the Bureau, all tribal 
governments, and the appropriate committees of the Congress, a 
draft set of education policies, procedures, and practices for 
education-related action of the Bureau. The Secretary shall, 
within 1 year of the date of enactment of this Act, provide 
that such uniform policies, procedures, and practices shall be 
finalized and promulgated. Thereafter, such policies, 
procedures, and practices and their periodic revisions, shall 
serve as the foundation for future Bureau actions in education.

[SEC. 1135. 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, and shall report such practices and procedures to 
the Congress.

[SEC. 1136. 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. 1137. BIENNIAL REPORT.

  [(a) The Secretary shall submit to each appropriate committee 
of the Congress a detailed biennial report on the state of 
education within the Bureau and any problems encountered in the 
field of education during the 2-year period covered by the 
report. Such report shall contain suggestions for improving the 
Bureau educational system and increasing 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, 
among other things, include--
          [(1) information on the funds provided previously 
        private schools under section 208 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        458d) and recommendations with respect to the future 
        use of such funds;
          [(2) the needs and costs of operation and maintenance 
        of tribally controlled community colleges eligible for 
        assistance under the Tribally Controlled Community 
        College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) 
        and recommendations with respect to meeting such needs 
        and costs; and
          [(3) the plans required by sections 1121(g), 1122(c), 
        and 1125(b), of this Act.
  [(b) 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 school at least 
once in every three years. Audits of Bureau schools shall be 
based upon the extent to which such school has complied with 
its local financial plan under section 1129.

[SEC. 1138. RIGHTS OF INDIAN STUDENTS.

  [Within six months of the date of enactment of this Act, the 
Secretary shall prescribe such rules and regulations as are 
necessary to ensure the constitutional and civil rights of 
Indian students attending Bureau 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. 1140. 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 title 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.

[SEC. 1141. PRORATION OF PAY.

  [(a) 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.
  [(b) During the course of such year the employee may change 
election once.
  [(c) That portion of the employee's pay which would be paid 
between academic school years may be paid in lump sum at the 
election of the employee.
  [(d) For the purposes of this section the terms ``educator'' 
and ``education position'' have the meaning contained in 
paragraphs (1) and (2) of section 1132(n). This section applies 
to those individuals employed under the provisions of section 
1132 of this title or title 5, United States Code.

[SEC. 1142. EXTRACURRICULAR ACTIVITIES.

  [(a) 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.
  [(b) If an employee elects not to be compensated through the 
stipend established by this section, the appropriate provisions 
of title 5, United States Code, shall apply.
  [(c) This section applies to all Bureau employees, whether 
employed under section 1132 of this title or title 5, United 
States Code.

[SEC. 1143. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

  [(a) 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)(1) 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 (f) for such fiscal year (less amounts 
provided under subsection (e)) 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) 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 1 tribe that has less than 500 
                members, or
                  [(ii) by 1 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)(1) 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) Applications submitted under paragraph (1) shall set 
forth the early childhood development program that the 
applicant desires to operate.
  [(d) 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) educational testing, and
                  [(E) 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) The Secretary shall, out of funds appropriated under the 
authority of subsection (f), include in the grants provided 
under subsection (a) amounts for administrative costs incurred 
by the tribe or tribal organization in establishing and 
maintaining the early childhood development program.
  [(f) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $10,000,000 
for fiscal year 1995 and such sums as may be necessary for each 
of the fiscal years 1996, 1997, 1998, and 1999.

[SEC. 1144. TRIBAL DEPARTMENTS OF EDUCATION.

  [(a) 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 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 (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 (25 U.S.C. 450h) that 
        are in effect on the date application for such grants 
        are made.
  [(c)(1) In approving and funding applications for 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) 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) 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) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $2,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the fiscal years 1996, 1997, 1998, and 1999.

[SEC. 1145. PAYMENTS.

  [(a)(1) Except as otherwise provided in this subsection, the 
Secretary shall make payments to grantees under this part in 2 
payments--
          [(A) one payment to be made not later than July 15 of 
        each year in an amount equal to one-half 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) For any school for which no payment 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) 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) 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) of this subsection.

[SEC. 1146. DEFINITIONS.

  [For the purpose of this part, unless otherwise specified--
          [(1) the term ``agency school board'' means a body, 
        the members of which are appointed by the school boards 
        of the schools located within such agency, 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;
          [(2) the term ``Bureau'' means the Bureau of Indian 
        Affairs of the Department of the Interior;
          [(3) the term ``Bureau funded school'' means--
                  [(A) a Bureau school;
                  [(B) a contract school; or
                  [(C) a school for which assistance is 
                provided under the Tribally Controlled Schools 
                Act of 1988;
          [(4) 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) the term ``contract or grant school'' means an 
        elementary or secondary school or a 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 (25 U.S.C. 
        450f, 450h(a), and 458d) or under the Tribally 
        Controlled Schools Act of 1988 (25 U.S.C. 2504);
          [(6) the term ``education line officer'' means 
        education personnel under the supervision of the 
        Director, whether located in central, area, or agency 
        offices;
          [(7) the term ``financial plan'' means a plan of 
        services to be provided by each Bureau school;
          [(8) 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 
        Indian tribes;
          [(9) 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;
          [(10) 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;
          [(11) the term ``Office'' means the Office of Indian 
        Education Programs within the Bureau;
          [(12) the term ``Secretary'' means the Secretary of 
        the Interior;
          [(13) the term ``supervisor'' means the individual in 
        the position of ultimate authority at a Bureau school; 
        and
          [(14) 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 (43 
        U.S.C. 1801 et seq.) which is recognized as eligible 
        for the special programs and services provided by the 
        United States to Indians because of their status as 
        Indians.]

               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; Declarations of Purposes.--
          (1) 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 performance standards expected of all 
        students.
          (2) Declarations of purposes.--Local school boards 
        for schools operated by the Bureau of Indian Affairs, 
        in cooperation and consultation with their tribal 
        governing bodies and their communities, are encouraged 
        to adopt declarations of purposes of education for 
        their communities taking into account the implications 
        of such purposes on education in their communities and 
        for their schools. In adopting such declarations of 
        purpose, the school boards shall consider the effect 
        those declarations may have on the motivation of 
        students and faculties. Such declarations shall 
        represent the aspirations of the community for the 
        kinds of people the community would like its children 
        to become, and shall include assurances that all 
        learners will become accomplished in things and ways 
        important to them and respected by their parents and 
        communities, shaping worthwhile and satisfying lives 
        for themselves, exemplifying the best values of the 
        community and humankind, and becoming increasingly 
        effective in shaping the character and quality of the 
        world all learners share. These declarations of purpose 
        shall influence the standards for accreditation to be 
        accepted by the schools.
  (b) Studies and Surveys Relating to Standards.--Not later 
than 1 year after the date of the enactment of the Student 
Results Act of 1999, 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 equal educational opportunity for such 
children.
  (c) Revision of Minimum Academic Standards.--
          (1) In general.--Not later than 1 year after the date 
        of the enactment of the Student Results Act of 1999, 
        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 1 
                        tribe but within the boundaries of more 
                        than 1 State, with the standards of the 
                        State improvement plan of 1 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 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. 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 1 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, 1999, 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 
1 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 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 enactment of the 
Student Results Act of 1999.
  (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 enactment of the Student Results Act of 
                1999, 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 Student Results Act of 
        1999.
  (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 Student Results Act of 1999, 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 
Student Results Act of 1999, 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 to 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 5 succeeding years.
          (2) Program for operation and maintenance.--
                  (A) In general.--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
                          (v) a system for the conduct of 
                        routine preventive maintenance.
                  (B) 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 Student Results 
        Act of 1999.
  (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, 2001, 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 2001, and for 
        each subsequent fiscal year, the Secretary shall adjust 
        the formula established under subsection (a) to--
                  (A) use 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) consider 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) take 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) use 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; and
                  (E) use 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 subparagraph (E) 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 \1/4\ 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 school site; 
                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 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 $200,000.00 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 1 or more other programs under a 
        contract or grant provided under the Indian Self-
        Determination and Education Assistance Act;
the Secretary shall ensure that the Indian tribe or tribal 
organization is provided with the full amount of the 
administrative costs that are associated with operating the 
contract or grant school, and of the indirect costs, that are 
associated with all of such other programs, 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 
                2 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.--
          (1) Studies.--Not later than 120 days after the date 
        of enactment of the Student Results Act of 1999, 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 grantdetermined 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 Student Results Act of 1999, 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 Student Results Act of 1999, 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 
        enactment of the Student Results Act of 1999, 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.
          (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.--(A) 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.
          (B) The supervisor--
                  (i) shall put into effect the decisions of 
                the school board;
                  (ii) 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
                  (iii) may appeal any such action of the local 
                school board to the appropriate education line 
                officer of the Bureau agency by filing a 
                written statement describing the action and the 
                reasons the supervisor believes such action 
                should be overturned. A copy of 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 title 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 1 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 
enactment of the Student Results Act of 1999, 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
                  (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 enactment 
        of the Student Results Act of 1999 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 enactment of the Student Results Act of 1999, 
        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 enactment of the Student Results 
        Act of 1999, the new rate may be applied to the 
        compensation of employees of the school who worked at 
        the school on of the date of 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 enactment of 
        the Student Results Act of 1999, the school board 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 3 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 1 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 title 
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, 2001, 
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, 2002, 
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, 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 thetribal 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 enactment of this Act and the 
        Secretary is authorized to repeal any regulation 
        inconsistent with the provisions of this Act.
          (2) General applicability of certain rules; legal 
        authority to be stated.--Regulations required to be 
        adopted under sections 2006 through 2018 and any 
        revisions of the standards developed under section 2001 
        or 2002 shall be deemed rules of general applicability 
        prescribed for the administrations of an applicable 
        program for the purposes of section 437 of the 
        Elementary and Secondary Education Amendments of 1967 
        and shall be promulgated, submitted for congressional 
        review, and take effect in accordance with the 
        provisions of such section. Such regulations 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 be 
        issued by the Secretary no later than 18 months after 
        enactment of this section, provided that the authority 
        of the Secretary to promulgate regulations under this 
        part and the Tribally Controlled Schools Act of 1988 
        shall expire if final regulations are not promulgated 
        within the time stated in this sentence. If the 
        Secretary determines that an extension of the deadline 
        in the preceding sentence is necessary, the Secretary 
        may submit proposed legislation to Congress for 
        extension of such deadline.
          (2) 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 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 1 tribe that has less 
                        than 500 members; or
                          (ii) by 1 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
                  (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 or other similar 
programs operated by the Bureau shall coordinate 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 2000 
and such sums as may be necessary for each of the fiscal years 
2001, 2002, 2003, and 2004.

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 2000 
and such sums as may be necessary for each of the fiscal years 
2001, 2002, 2003, and 2004.

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) Financial plan.--The term ``financial plan'' 
        means a plan of services provided by each Bureau 
        school.
          (8) 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.
          (9) 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.
          (10) 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.
          (11) Office.--The term ``Office'' means the Office of 
        Indian Education Programs within the Bureau.
          (12) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (13) Supervisor.--The term ``supervisor'' means the 
        individual in the position of ultimate authority at a 
        Bureau school.
          (14) 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.
          (15) 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.
                              ----------                              


                TRIBALLY CONTROLLED SCHOOLS ACT OF 1988

PART B--TRIBALLY CONTROLLED SCHOOL GRANTS

           *       *       *       *       *       *       *


[SEC. 5202. FINDINGS.

  [The Congress, after careful review of the Federal 
Government's historical and special legal relationship with, 
and resulting responsibilities to, Indians, finds that--
          [(1) the Indian Self-Determination and Education 
        Assistance Act, which was a product of the legitimate 
        aspirations and a recognition of the inherent authority 
        of Indian nations, was and is a crucial positive step 
        towards tribal and community control;
          [(2) 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 to the Indian people 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 the 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 nor created the diverse 
        opportunities and personal satisfaction which 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.--The 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.--The 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.--The Congress declares that a major 
national goal of the United States is to provide the resources, 
processes, and structures 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.--The 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.--The 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.--The Congress hereby repudiates and rejects 
House Concurrent Resolution 108 of the 83rd Congress and any 
policy of unilateral termination of Federal relations with any 
Indian Nation.

[SEC. 5204. GRANTS AUTHORIZED.

  [(a) In General.--
          [(1) 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 schools;
                  [(B) operate other tribally controlled 
                schools eligible for assistance under this part 
                and submit applications (which are approved by 
                their tribal governing bodies) to the Secretary 
                for such grants; or
                  [(C) elect to assume operation of Bureau 
                schools with assistance under this part and 
                submit applications (which are approved by 
                their tribal governing bodies) to the Secretary 
                for such grants.
          [(2) 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 provided.
          [(3)(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 operation 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).
          [(C) If funds allocated to a tribally controlled 
        school under title I of the Elementary and Secondary 
        Education Act of 1965, the Individuals with 
        Disabilities Education Act, or any Federal education 
        law other than title XI of the Education Amendments of 
        1978 are included in a grant provided under this part, 
        a portion of the grant equal to the amount of the funds 
        allocated under such law shall be expended only for 
        those activities for which funds provided under such 
        law may be expended under the terms of such law.
  [(b) Limitations.--
          [(1) No more than one grant may be provided under 
        this part with respect to any Indian tribe or tribal 
        organization for any fiscal year.
          [(2) Funds provided under any grant made under this 
        part may not be used in connection with religious 
        worship or sectarian instruction.
          [(3) Funds provided under any grant made under this 
        part may not be expended for administrative costs (as 
        defined under section 1128A(e)(1) of the Education 
        Amendments of 1978) in

        excess of the amount generated for such costs under 
        section 1128A of such Act.
  [(c) Limitation on Transfer of Funds Among Schoolsites.--
          [(1) In the case of a grantee which operates schools 
        at more than one schoolsite, the grantee may expend no 
        more than the lesser of--
                  [(A) 10 percent of the funds allocated for a 
                schoolsite under section 1128 of the Education 
                Amendments of 1978, or
                  [(B) $400,000 of such funds,
        at any other schoolsite.
          [(2) 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 
        with, the Bureau for which a discreet student count is 
        identified under the funding formula established under 
        section 1128 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 into applying for, or accepting,
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.--Whenever an 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 not more than 
120 days after the date on which the tribal governing body 
requests the retrocession, or such later date as may be 
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.
  [The tribe requesting retrocession shall specify whether the 
retrocession is to status as a Bureau school or as a contract 
school under title XI of the Education Amendments of 1978. 
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--
          [(1) with assistance under this part, or
          [(2) upon assumption of operation of the program 
        under this part if it was a Bureau funded school under 
        title XI of the Education Amendments of 1978 before 
        receiving assistance under this part.
  [(g) No Termination for Administrative Convenience.--Grants 
provided under this Act may not be terminated, modified, 
suspended, or reduced only 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 1128 and 1128A of the 
        Education Amendments of 1978 with respect to the 
        tribally controlled schools eligible for assistance 
        under this part that 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 (25 U.S.C. 450j), or any other 
        provision of law, other facilities accounts for such 
        schools for such fiscal year (including but not limited 
        to all those referenced under section 1216(d) of the 
        Education Amendments of 1978, or any other law), and
          [(3) the total amount 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 allocated to such schools for such fiscal 
        year.
  [(b) Special Rules.--
          [(1) In the allocation of funds under sections 1128, 
        1128A, and 1126(d) of the Education Amendments of 1978, 
        tribally controlled schools for which grants are 
        provided under this part shall be treated as contract 
        schools.
          [(2) In the 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, tribally 
        controlled schools for which grants are provided under 
        this part shall be treated as Bureau schools.
          [(3)(A) Funds allocated to a tribally controlled 
        school by reason of paragraph (1) or (2) 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).
          [(4) Notwithstanding the provision of paragraph 
        5204(a)(2) of the Tribally Controlled Schools Act of 
        1988 (25 U.S.C. 2503(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 such 
        paragraph (a)(2), the grantee shall maintain a separate 
        account for such funds and shall, at the end of the 
        period designated for the work covered by the funds 
        received, render a separate accounting of the work done 
        and the funds used to the Secretary. Funds received 
        from these accounts may only be used for the purposes 
        for which they were appropriated and for the work 
        encompassed by the application or submission under 
        which they were received, except that 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 one-fourth of the total cost of such 
        new construction. 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 funds: Provided, 
        That such period may be extended upon mutual agreement.
          [(5) If the Secretary fails to make a determination 
        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 of 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) In General.--
          [(1) A tribally controlled school is eligible for 
        assistance under this part if the school--
                  [(A) was, on April 28, 1988, 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 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) Any application which has been submitted under 
        the Indian Self-Determination and Education Assistance 
        Act by an Indian tribe for a school which is not in 
        operation on the date of enactment of this Act 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 Schools and Certain 
Electing Schools.--
          [(1) A school that was a Bureau funded school under 
        title XI of the Education Amendments of 1978 on April 
        28, 1988, 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 of 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)(A) By no 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) if the school 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 Indian 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) substantive knowledge of operating the 
                school,
                  [(iv) adequately trained personnel, or
                  [(v) any other necessary components in the 
                operation of the school.
  [(c) Additional Requirements for a School Which is Not a 
Bureau Funded School.--
          [(1) 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 of 
                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)(A) By no 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 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 to education; and
                          [(IV) the history and success of 
                        these services for the proposed 
                        population to be served, as determined 
                        from all factors and not just 
                        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 an earlier date, at the Secretary's 
        discretion.
  [(d) Applications and Reports.--
          [(1) All applications and reports submitted to the 
        Secretary under this part, and any amendments to such 
        applications or reports, shall be filed with the agency 
        or area education officer designated by the Director of 
        the Office of Indian Education 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 is submitted to the 
        Secretary.
          [(2) Any application that is submitted under this 
        part 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 in subsection (c)(2)(E), a grant provided under this 
part, and any transfer of the operation of a Bureau school made 
undersubsection (b), shall become effective beginning with 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) Whenever the Secretary declines to provide a 
        grant under this part, 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) 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) The Secretary shall reconsider any amended 
        application submitted under this part within 60 days 
        after the amended application is submitted to the 
        Secretary.

[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.--Each recipient of a grant provided 
under this part shall submit to the Secretary and to the tribal 
governing body (within the meaning of section 1121(j) of the 
Education Amendments of 1978) of the tribally controlled school 
an annual report that shall be limited to--
          [(1) an annual financial statement reporting revenue 
        and expenditures as defined by the cost accounting 
        established by the grantee;
          [(2) a biannual financial audit conducted pursuant to 
        the standards of the Single Audit Act of 1984;
          [(3) an annual submission to the Secretary of the 
        number of students served and a brief description of 
        programs offered under the grant; and
          [(4) a program evaluation conducted by an impartial 
        entity, to be based on the standards established for 
        purposes of subsection (c)(1)(A)(ii).
  [(c) Revocation of Eligibility.--
          [(1)(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 as recognized 
                        by the Secretary of Education, 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 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 school accepts 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 once every 3 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 
                        enactment of this Act, such evaluation 
                        to be conducted by an impartial 
                        evaluator agreed to by the Secretary 
                        and the grantee. If the Secretary and a 
                        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 purposes of 
        subparagraph (A)(ii) shall be consistent with section 
        1121(e) of the Education Amendments of 1978.
          [(2) 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 1121(j) 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 any remedial actions.
        The Secretary shall provide such technical assistance 
        as is necessary 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) Except as otherwise provided in this subsection, 
        the Secretary shall make payments to grantees under 
        this part in 2 payments, of which--
                  [(A) the first payment shall be made not 
                later than July 15 of each year in an amount 
                equal to one-half 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) 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) 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) 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) 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) Notwithstanding any other provision of law, any 
        interest or investment income that accrues on any funds 
        provided under this part after such funds are paid to 
        the Indian tribe or tribal organization and before such 
        funds are expended for the purpose for which such funds 
        were provided under this part shall be the property of 
        the Indian tribe or tribal organization and shall not 
        be taken into account by any officer or employee of the 
        Federal Government in determining whether to provide 
        assistance, or the amount of assistance, under any 
        provision of Federal law.
          [(2) Funds provided under this part may be--
                  [(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
                  [(B) deposited only into accounts that are 
                insured by an agency or instrumentality of the 
                United States.
  [(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.--All provisions 
of sections 5, 6, 7, 104, 105(f), 106(f), 109, and 111 of the 
Indian Self-Determination and Education Assistance Act, except 
those provisions relating to indirect costs and length of 
contract, shall apply to grants provided under this part.
  [(b) Election for Grant in Lieu of Contract.--
          [(1) 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 enactment of this 
        Act 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) 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) the date that is 60 days after the date 
                of such election.
          [(3) 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. For fiscal year 
        1989, the Secretary may waive this paragraph for 
        elections received prior to September 30, 1988.
  [(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 service if a grant has been made under 
this part to pay such expenses.
  [(d) Transfers and Carryovers.--
          [(1) A tribe or tribal organization assuming the 
        operation of 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 (25 
        U.S.C. 450 et seq.).
          [(2) A tribe or tribal organization assuming the 
        operation of a contract school with assistance under 
        this part shall be entitled to the transfer or use of 
        the 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 
        (25 U.S.C. 450 et seq.).
          [(3) 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 than 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) of this Act, any dispute regarding the amount of a 
grant under section 5205 (and the amount of any funds referred 
to in that section), any payments to be made under section 5208 
of this Act, and any dispute involving an administrative cost 
grant under section 1128A of the Education Amendments of 1978 
(25 U.S.C. 2008a) shall be handled 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 (Public Law 93-658; 25 U.S.C. 450 et 
seq.). 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. [25 U.S.C. 2510] 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. [25 U.S.C. 2511] DEFINITIONS.

  [For purposes of this part--
          [(1) The term ``eligible Indian student'' has the 
        meaning of such term in section 1128(f) of the 
        Education Amendments of 1978 (25 U.S.C. 2008(f)).
          [(2) The term ``Indian 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 Alaskan Native Claims 
        Settlement Act), which is recognized as eligible for 
        the specialprograms and services provided by the United 
States to Indians because of their status as Indians.
          [(3)(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 perform 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.
          [(4) The term ``Secretary'' means the Secretary of 
        the Interior.
          [(5) 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.
          [(6) The term ``a 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.
          [(7) The term ``Bureau'' means the Bureau of Indian 
        Affairs of the Department of the Interior.]

SEC. 5202. FINDINGS.

  Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, Indians, finds that--
          (1) the Indian Self-Determination and Education 
        Assistance Act, which was a product of the legitimate 
        aspirations and a recognition of the inherent authority 
        of Indian nations, was and is a crucial positive step 
        towards tribal and community control;
          (2) 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) 1 grant per tribe or organization per fiscal 
        year.--Not more than 1 grant may be provided under this 
        part with respect to any Indian tribe or tribal 
        organization for any fiscal year.
          (2) Nonsectarian use.--Funds 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.
  (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 
        enactment of the Student Results Act of 1999 shall be 
        reviewed under the guidelines and regulations for 
        applications submitted under the Indian Self-
        Determination and Education Assistance Act that were in 
        effect at the time the application was submitted, 
        unless the Indian tribe or tribal organization elects 
        to have the application reviewed under the provisions 
        of subsection (b).
  (b) Additional Requirements for Bureau Funded Schools and 
Certain Electing Schools.--
          (1) Bureau funded schools.--A school that was a 
        Bureau funded school under title XI of the Education 
        Amendments of 1978 on the date of enactment of the 
        Student Results Act of 1999, 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.
  (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.

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 
                sent 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 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 2 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 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 
                insured by an 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(f) (relating to limitation on 
        remedies relating to cost allowances).
          (9) Section 106(j) (relating to use of funds for 
        matching or cost participation requirements).
          (10) Section 106(k) (relating to allowable uses of 
        funds).
          (11) Section 108(c) (Model Agreements provisions 
        (1)(a)(5) (relating to limitations of costs), (1)(a)(7) 
        (relating to records and monitoring), (1)(a)(8) 
        (relating to property), and (a)(1)(9) (relating to 
        availability of funds).
          (12) Section 109 (relating to reassumption).
          (13) Section 111 (relating to sovereign immunity and 
        trusteeship rights unaffected).
  (b) Election for Grant in Lieu of Contract.--
          (1) In general.--Contractors for activities to which 
        this part applies who have entered into a contract 
        under the Indian Self-Determination and Education 
        Assistance Act that is in effect upon the date of 
        enactment of the Student Results Act of 1999 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 than 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) 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) 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 a ``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.

           *       *       *       *       *       *       *

                              ----------                              


SUBTITLE B OF THE STEWART B. MCKINNEY HOMELESS EDUCATION ASSISTANCE ACT

         [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 shall ensure that 
        each child of a homeless individual and each homeless 
        youth has equal access to the same free, appropriate 
        public education, including a public preschool 
        education, as provided to other children and 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 will review and 
        undertake steps to revise such laws, regulations, 
        practices, or policies to ensure that homeless children 
        and youth are afforded the same free, appropriate 
        public education as provided to other children and 
        youth;
          [(3) homelessness alone should not be sufficient 
        reason to separate students from the mainstream school 
        environment; and
          [(4) homeless children and youth should 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 performance 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(c), 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 to all States for 
        that year, except that no State shall receive less than 
        $100,000.
          [(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 Virgin Islands, Guam, American 
        Samoa, the Commonwealth of the Northern Mariana 
        Islands, and Palau (until the effective date of the 
        Compact of Free Association with the Government of 
        Palau), according to their respective need for 
        assistance under this subtitle, as determined by the 
        Secretary.
          [(B)(i) The Secretary is authorized to 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, 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) Definition.--As used in this subsection, the 
        term ``State'' shall not include the Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, or Palau.
  [(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 children, 
        and homeless 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) In general.--(A) Subject to subparagraph (B), if 
        the amount allotted to the State educational agency for 
        any fiscal year under this subtitle exceeds the amount 
        such agency received for fiscal year 1990 under this 
        subtitle, such agency shall provide grants to local 
        educational agencies for purposes of section 723.
          [(B) The State educational agency may reserve not 
        more than the greater of 5 percent of the amount such 
        agency receives under this subtitle for any fiscal 
        year, or the amount such agency received under this 
        subtitle for fiscal year 1990, to conduct activities 
        under subsection (f) directly or through grants or contracts.
          [(2) Special rule.--If the amount allotted to a State 
        educational agency for any fiscal year under this 
        subtitle is less than the amount such agency received 
        for fiscal year 1990 under this subtitle, such agency, 
        at such agency's discretion, may provide grants to 
        local educational agencies in accordance with section 
        723 or may conduct activities under subsection (f) 
        directly or through grants or contracts.
  [(f) Functions of the Office of Coordinator.--The Coordinator 
of Education of Homeless Children and Youth established in each 
State shall--
          [(1) estimate the number of homeless children and 
        youth in the State and the number of such children and 
        youth served with assistance provided under the grants 
        or contracts under this subtitle;
          [(2) 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 
        allowing homeless children and youth to enroll in, 
        attend, and succeed in, school;
          [(3) develop and carry out the State plan described 
        in subsection (g);
          [(4) prepare and submit to the Secretary not later 
        than October 1, 1997, and on October 1 of every third 
        year thereafter, a report on the information gathered 
        pursuant to paragraphs (1) and (2) and such additional 
        information as the Secretary may require to carry out 
        the Secretary's responsibilities under this subtitle;
          [(5) facilitate coordination between the State 
        educational agency, the State social services agency, 
        and other agencies providing services to homeless 
        children and youth, including homeless children and 
        youth who are preschool age, and families of such 
        children and youth; and
          [(6) develop relationships and coordinate with other 
        relevant education, child development, or preschool 
        programs and providers of services to homeless 
        children, homeless families, and runaway and homeless 
        youth (including domestic violence agencies, shelter 
        operators, transitional housing facilities, runaway and 
        homeless youth centers, and transitional living 
        programs for homeless youth), to improve the provision 
        of comprehensive services to homeless children and 
        youth and their families.
  [(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 describe how such children and youth are or 
        will be given the opportunity to meet the same 
        challenging State student performance standards all 
        students are expected to meet, shall describe the 
        procedures the State educational agency will use to 
        identify such children and youth in the State and to 
        assess their special needs, and shall--
                  [(A) describe procedures for the prompt 
                resolution of disputes regarding the 
                educational placement of homeless children and 
                youth;
                  [(B) describe programs for school personnel 
                (including principals, attendance officers, 
                teachers and enrollment personnel), to heighten 
                the awareness of such personnel of the specific 
                needs of runaway and homeless youth;
                  [(C) 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;
                  [(D) 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; 
                        and
                          [(ii) 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;
                  [(E) address problems set forth in the report 
                provided to the Secretary under subsection 
                (f)(4);
                  [(F) address other problems with respect to 
                the education of homeless children and youth, 
                including problems caused by--
                          [(i) transportation issues; and
                          [(ii) enrollment delays that are 
                        caused by--
                                  [(I) immunization 
                                requirements;
                                  [(II) residency requirements;
                                  [(III) lack of birth 
                                certificates, school records, 
                                or other documentation; or
                                  [(IV) guardianship issues;
                  [(G) demonstrate that the State educational 
                agency and local educational agencies in the 
                State have developed, and will review and 
                revise, policies to remove barriers to the 
                enrollment and retention of homeless children 
                and youth in schools in the State; and
                  [(H) contain an assurance that the State 
                educational agency and local educational 
                agencies in the State will adopt policies and 
                practices to ensure that homeless children and 
                youth are not isolated or stigmatized.
          [(2) Compliance.--Each plan adopted under this 
        subsection shall also show how the State will ensure 
        that local educational agencies in the State will 
        comply with the requirements of paragraphs (3) through 
        (9).
          [(3) Local educational agency requirements.--(A) The 
        local educational agency of each homeless child and 
        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--
                          [(I) for the remainder of the 
                        academic year; or
                          [(II) in any case in which a family 
                        becomes homeless between academic 
                        years, for the following academic year; 
                        or
                  [(ii) enroll the child or youth in any school 
                that nonhomeless students who live in the 
                attendance area in which the child or youth is 
                actually living are eligible to attend.
          [(B) In determining the best interests of the child 
        or youth under subparagraph (A), the local educational 
        agency shall comply, to the extent feasible, with the 
        request made by a parent or guardian regarding school 
        selection.
          [(C) For purposes of this paragraph, the term 
        ``school of origin'' means the school that the child or 
        youth attended when permanently housed, or the school 
        in which the child or youth was last enrolled.
          [(D) The choice regarding placement shall be made 
        regardless of whether the child or youth lives with the 
        homeless parents or has been temporarily placed 
        elsewhere by the parents.
          [(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 according to the 
        provisions of 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 education;
                  [(D) programs for gifted and talented 
                students; and
                  [(E) school meals programs.
          [(5) Records.--Any record ordinarily kept by the 
        school, including immunization records, academic 
        records, birth certificates, guardianship records, and 
        evaluations for special services or programs, of each 
        homeless child or youth shall be maintained--
                  [(A) so that the records are available, in a 
                timely fashion, when a child or youth enters a 
                new school district; and
                  [(B) in a manner consistent with section 444 
                of the General Education Provisions Act.
          [(6) Coordination.--Each local educational agency 
        serving homeless children and youth that receives 
        assistance under this subtitle shall coordinate with 
        local social services agencies and other agencies or 
        programs providing services to such children or youth 
        and their families, including services and programs 
        funded under the Runaway and Homeless Youth Act.
          [(7) Liaison.--(A) Each local educational agency that 
        receives assistance under this subtitle shall designate 
        a homelessness liaison to ensure that--
                  [(i) homeless children and youth enroll and 
                succeed in the schools of that agency; and
                  [(ii) homeless families, children, and youth 
                receive educational services for which such 
                families, children, and youth are eligible, 
                including Head Start and Even Start programs 
                and preschool programs administered by the 
                local educational agency, and referrals to 
                health care services, dental services, mental 
                health services, and other appropriate 
                services.
          [(B) State coordinators and local educational 
        agencies shall inform school personnel, service 
        providers, and advocates working with homeless families 
        of the duties of the liaisons.
          [(8) Review and revisions.--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). 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. Special 
        attention shall be given to ensuring the enrollment and 
        attendance of homeless children and youth who are not 
        currently attending school.
          [(9) Coordination.--Where 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-Gonzalez National 
        Affordable Housing Act to minimize educational 
        disruption for children who become homeless.

[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.--Unless otherwise specified, services 
        under paragraph (1) may be provided through programs on 
        school grounds or at other facilities. Where such 
        services are provided through programs to homeless 
        students on school grounds, schools may provide 
        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, in the same 
        setting or classroom. To the maximum extent 
        practicable, such services shall be provided through 
        existing programs and mechanisms that integrate 
        homeless individuals with nonhomeless individuals.
          [(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 according to 
guidelines issued by the Secretary. Each such application shall 
include--
          [(1) a description of the services and programs for 
        which assistance is sought and the problems to be 
        addressed through the provision of such services and 
        programs;
          [(2) 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;
          [(3) an assurance that the applicant complies with, 
        or will use requested funds to come into compliance 
        with, paragraphs (3) through (9) of section 722(g); and
          [(4) a description of policies and procedures 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 section 722(g) and from amounts made 
        available to such agency under section 726, award 
        grants under this section to local educational agencies 
        submitting an application under subsection (b) on the 
        basis of the need of such agencies.
          [(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 
                reflects coordination with other local and 
                State agencies that serve homeless children and 
                youth, as well as the State plan required by 
                section 722(g);
                  [(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 agency 
                determines appropriate.
          [(3) Duration of grants.--Grants awarded under this 
        section shall be for terms not to exceed three 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 
        content standards and challenging State student 
        performance standards the State establishes for other 
        children or 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 education, and school 
        meals 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), 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 before- and after-school, 
        mentoring, and summer programs for homeless children 
        and youth in which a teacher or other qualified 
        individual provides tutoring, homework assistance, and 
        supervision of educational activities;
          [(8) where 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 records, academic records, 
        guardianship records, and evaluations for special 
        programs or services;
          [(9) 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;
          [(10) the development of coordination between schools 
        and agencies providing services to homeless children 
        and youth, including programs funded under the Runaway 
        and Homeless Youth Act;
          [(11) the provision of pupil services (including 
        violence prevention counseling) and referrals for such 
        services;
          [(12) activities to address the particular needs of 
        homeless children and youth that may arise from 
        domestic violence;
          [(13) the adaptation of space and purchase of 
        supplies for nonschool facilities made available under 
        subsection (a)(2) to provide services under this 
        subsection;
          [(14) the provision of school supplies, including 
        those supplies to be distributed at shelters or 
        temporary housing facilities, or other appropriate 
        locations; and
          [(15) 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 plans submitted 
by the State educational agencies 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.
  [(c) 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.
  [(d) 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.
  [(e) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered 
by the Secretary under subsection (d), 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).
  [(f) Reports.--The Secretary shall prepare and submit a 
report to the Committee on Education and Labor of the House of 
Representatives and the Committee on Labor and Human Resources 
of the Senate on the programs and activities authorized by this 
subtitle by December 31, 1997, and every third year thereafter.

[SEC. 725. DEFINITIONS.

  [For the purpose of this subtitle, unless otherwise stated--
          [(1) the term ``Secretary'' means the Secretary of 
        Education; and
          [(2) 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 $30,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the fiscal years 
1996, 1997, 1998, and 1999.]

         Subtitle B--Education for Homeless Children and Youth

SEC. 721. STATEMENT OF POLICY.

  It is the policy of 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 should 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 performance 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(c), 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 to all States for that year, except 
        that no State shall receive less than $100,000.
          (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, 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) Definition.--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) In general.--(A) Subject to subparagraph (B), if 
        the amount allotted to the State educational agency for 
        any fiscal year under this subtitle exceeds the amount 
        such agency received for fiscal year 1990 under this 
        subtitle, as the subtitle was then in effect, such 
        agency shall provide grants to local educational 
        agencies for purposes of section 723.
          (B) The State educational agency may reserve not more 
        than the greater of 5 percent of the amount such agency 
        receives under this subtitle for any fiscal year, or 
        the amount such agency received under this subtitle, as 
        the subtitle was then in effect, for fiscal year 1990, 
        to conduct activities under subsection (f) directly or 
        through grants or contracts.
          (2) Special rule.--If the amount allotted to a State 
        educational agency for any fiscal year under this 
        subtitle is less than the amount such agency received 
        for fiscal year 1990 under this subtitle, such agency, 
        at such agency's discretion, may provide grants to 
        local educational agencies in accordance with section 
        723 or may conduct activities under subsection (f) 
        directly or through grants or contracts.
          (3) Prohibition on segregating homeless students.--
                  (A) In general.--Except as provided in 
                subparagraph (B) and section 723(a)(2)(B)(ii), 
                in providing a free, public education to a 
                homeless child or youth, no State receiving 
                funds under this subtitle shall segregate such 
                child or youth, either in a separate school, or 
                in a separate program within a school, based 
                solely on such child or youth's status as 
                homeless.
                  (B) Exception.--A State that has established 
                a separate school for homeless children in the 
                fiscal year preceding the date of the enactment 
                of the Stewart B. McKinney Homeless Education 
                Assistance Improvement Act of 1999 shall remain 
                eligible to receive funds under this subtitle 
                for such program.
  (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 
        allowing homeless children and youth to enroll in, 
        attend, and succeed in, school;
          (2) develop and carry out the State plan described in 
        subsection (g);
          (3) collect and transmit to the Secretary, 
        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 and 
        youth who are preschool age, and families of such 
        children and youth; and
          (5) in order to improve the provision of 
        comprehensive education and related services to 
        homeless children and youth and their families, 
        coordinate and collaborate with--
                  (A) educators, including child development 
                and preschool program personnel;
                  (B) providers of services to homeless and 
                runaway children and youth and homeless 
                families (including domestic violence agencies, 
                shelter operators, transitional housing 
                facilities, runaway and homeless youth centers, 
                and transitional living programs for homeless 
                youth);
                  (C) local educational agency liaisons for 
                homeless children and youth; and
                  (D) community organizations and groups 
                representing homeless children and youth and 
                their families.
  (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 describe how such children and youth are or 
        will be given the opportunity to meet the same 
        challenging State student performance standards all 
        students are expected to meet, shall describe the 
        procedures the State educational agency will use to 
        identify such children and youth in the State and to 
        assess their special needs, and shall--
                  (A) describe procedures for the prompt 
                resolution of disputes regarding the 
                educational placement of homeless children and 
                youth;
                  (B) 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;
                  (C) 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;
                  (D) 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; 
                        and
                          (ii) 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;
                  (E) address problems set forth in the report 
                provided to the Secretary under subsection 
                (f)(3);
                  (F) address other problems with respect to 
                the education of homeless children and youth, 
                including problems caused by--
                          (i) transportation issues; and
                          (ii) enrollment delays that are 
                        caused by--
                                  (I) immunization 
                                requirements;
                                  (II) residency requirements;
                                  (III) lack of birth 
                                certificates, school records, 
                                or other documentation; or
                                  (IV) guardianship issues;
                  (G) 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
                  (H) 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; and
                          (ii) designate an appropriate staff 
                        person, who may also be a coordinator 
                        for other Federal programs, as a 
                        liaison for homeless children and 
                        youth.
          (2) Compliance.--Each plan adopted under this 
        subsection shall also demonstrate how the State will 
        ensure that local educational agencies in the State 
        will comply with the requirements of paragraphs (3) 
        through (9).
          (3) Local educational agency requirements.--
                  (A) In general.--Each local educational 
                agency serving a homeless child or youth 
                assisted under this subtitle shall, according 
                to the child's or youth's best interest, 
                either--
                          (i) continue the child's or youth's 
                        education in the school of origin--
                                  (I) for the duration of their 
                                homelessness;
                                  (II) if the child becomes 
                                permanently housed, for the 
                                remainder of the academic year; 
                                or
                                  (III) in any case in which a 
                                family becomes homeless between 
                                academic years, for the 
                                following academic year; or
                          (ii) enroll the child or youth in any 
                        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 keep, to the extent feasible, 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.
                  (C) Enrollment.--(i) Except as provided in 
                clause (iii), a school that a homeless child 
                seeks to enroll in shall, in accordance with 
                this paragraph, immediately enroll the homeless 
                child or youth even if the child or youth is 
                unable to produce records normally required for 
                enrollment, such as previous academic records, 
                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) A school described in clause (i) is not 
                required to accept a homeless child until the 
                school receives the immunization records for 
                such child. If the child or youth needs to 
                obtain immunizations, the enrolling school 
                shall promptly refer parent or guardian of the 
                child or youth to the appropriate authorities. 
                If a child is denied enrollment because of the 
                lack of immunization records, the school 
                denying such enrollment shall refer the parents 
                of the homeless child or youth to the liaison 
                in accordance with subparagraph (E).
                  (D) Records.--Any record ordinarily kept by 
                the school, including immunization 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 
                        district; and
                          (ii) in a manner consistent with 
                        section 444 of the General Education 
                        Provisions Act.
                  (E) Enrollment disputes.--If there is a 
                dispute over school selection or enrollment--
                          (i) except as provided in 
                        subparagraph (C)(iii), 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 shall be 
                        provided with a written explanation of 
                        the school's decision regarding 
                        enrollment, including the right to 
                        appeal the decision; and
                          (iii) the parent or guardian shall be 
                        referred to the liaison, who shall 
                        carry out the dispute resolution 
                        process as described in paragraph 
                        (6)(D) as expeditiously as possible, 
                        after receiving notice 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 by the parents.
                  (G) Definition.--For purposes of this 
                paragraph, the term ``school of origin'' means 
                the school that the child or youth attended 
                when permanently housed, or the school in which 
                the child or youth was last enrolled.
                  (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 according to the 
        provisions of 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 
                (20 U.S.C. 6301 et seq.) 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 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.).
                  (B) Housing assistance.--If applicable, each 
                State and local educational agency that 
                receives assistance under this subtitle shall 
                coordinate with State and local housing 
                agencies responsible for developing the 
                comprehensive housing affordability strategy 
                described in section 105 of the Cranston-
                Gonzales National Affordable Housing Act (42 
                U.S.C. 12705) to minimize educational 
                disruption for children and youth who become 
                homeless.
                  (C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall 
                be designed to--
                          (i) ensure that homeless children and 
                        youth have access to available 
                        education and related support services; 
                        and
                          (ii) raise the awareness of school 
                        personnel and service providers of the 
                        effects of short-term stays in a 
                        shelter and other challenges associated 
                        with homeless children and youth.
          (6) Liaison.--
                  (A) Duties.--Each local liaison for homeless 
                children and youth, designated pursuant to 
                subsection (g)(1)(H)(ii), shall ensure that--
                          (i) homeless children and youth 
                        enroll in, and have an equal 
                        opportunity to succeed in, schools of 
                        that agency;
                          (ii) homeless families, children, and 
                        youth receive educational services for 
                        which such families, children, and 
                        youth are eligible, including Head 
                        Start and Even Start programs and 
                        preschool programs administered by the 
                        local educational agency, and referrals 
                        to health care services, dental 
                        services, mental health services, and 
                        other appropriate services;
                          (iii) the parents or guardians of 
                        homeless children and youth are 
                        informed of the education and related 
                        opportunities available to their 
                        children and are provided with 
                        meaningful opportunities to participate 
                        in the education of their children; and
                          (iv) public notice of the educational 
                        rights of homeless children and youth 
                        is disseminated where such children and 
                        youth receive services under this Act 
                        (such as family shelters and soup 
                        kitchens).
                  (B) Notice.--State coordinators 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.
                  (D) Dispute resolution.--Unless another 
                individual is designated by State law, the 
                local educational agency liaisons for homeless 
                children and youth shall provide resource 
                information and assist in resolving disputes 
                under this subtitle, should they arise.
          (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 replace that 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).
                          (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, 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 in such agency 
        (which may be undertaken as a part of needs assessments 
        for other disadvantaged groups);
          (2) a description of the services and programs for 
        which assistance is sought and the problems to be 
        addressed through the provision of such services and 
        programs;
          (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 that result in an 
        equitable distribution of geographic areas within the 
        State 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 
                reflects coordination with other local and 
                State agencies that serve homeless children and 
                youth, and 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 three 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 
        content standards and challenging State student 
        performance 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 before- and after-school, 
        mentoring, and summer programs for homeless children 
        and youth in which a teacher or other qualified 
        individual provides tutoring, homework assistance, and 
        supervision of educational activities;
          (8) 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 
        records, academic records, guardianship records, and 
        evaluations for special programs or services;
          (9) 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;
          (10) the development of coordination between schools 
        and agencies providing services to homeless children 
        and youth, including programs funded under the Runaway 
        and Homeless Youth Act;
          (11) the provision of pupil services (including 
        violence prevention counseling) and referrals for such 
        services;
          (12) activities to address the particular needs of 
        homeless children and youth that may arise from 
        domestic violence;
          (13) the adaptation of space and purchase of supplies 
        for nonschool facilities made available under 
        subsection (a)(2) to provide services under this 
        subsection;
          (14) the provision of school supplies, including 
        those supplies to be distributed at shelters or 
        temporary housing facilities, or other appropriate 
        locations; and
          (15) 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) Report.--The Secretary shall develop and issue not later 
than 60 days after the date of enactment of the Stewart B. 
McKinney Homeless Education Assistance Improvements Act of 
1999, a report to be made available to States, local 
educational agencies, and other applicable agencies regarding 
the following:
          (1) Enrollment.--Such report shall review successful 
        ways in which a State may assist local educational 
        agencies to enroll homeless students on an immediate 
        basis. The report issued by the Secretary shall--
                  (A) clarify that enrollment includes a 
                homeless child's or youth's right to actually 
                attend school; and
                  (B) clarify requirements that States are to 
                review immunization and medical or school 
                records and to make such revisions as 
                appropriate and necessary in order to enroll 
                homeless students in school more quickly.
          (2) Transportation.--The report shall also address 
        the transportation needs of homeless students. The 
        report issued by the Secretary shall--
                  (A) explicitly state that the goal of the 
                transportation provisions contained in this Act 
                is to provide educational stability by reducing 
                mobility and therefore provide an effective 
                learning environment for homeless children; and
                  (B) encourage States to follow programs 
                implemented in State law that have successfully 
                addressed transportation barriers for homeless 
                children.
  (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 Stewart B. McKinney Homeless Education 
Assistance Improvement Act of 1999, 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 effectiveness of the programs supported under 
        this subtitle.

SEC. 725. DEFINITIONS.

  For the purpose of this subtitle, unless otherwise stated--
          (1) the terms ``local educational agency'' and 
        ``State educational agency'' have the same meanings 
        given such terms under section 14101, of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801);
          (2) the term ``Secretary'' means the Secretary of 
        Education; and
          (3) 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 $36,000,000 for fiscal year 2000 
and such sums as may be necessary for each of the fiscal years 
2001 through 2004.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

H.R. 2 strengthens title I assistance for disadvantaged children
    Title I is the nation's flagship program to help our public 
schools, and it provides approximately 11 million disadvantaged 
children with supplementary educational services designed to 
ensure the achievement of challenging academic standards. This 
program is critical to helping communities provide high quality 
instruction and educational services to disadvantaged children.
    Key changes to Title I in the last reauthorization of ESEA 
in 1994 have solidly put Title I on track of driving increased 
academic achievement. Prior to 1994, questions arose as to the 
effectiveness of Title I and its impact on student achievement. 
Congress refocused Title I during the 1994 reauthorization to 
require systemic educational reform by the States. States are 
required to have challenging State standards and assessments 
aligned with those standards for all children, including those 
assisted under Title I.
    The strong 1994 reforms of Title I are starting to have a 
good effect in the classrooms. Earlier this year, the U.S. 
Department of Education issued ``Promising Results, Continuing 
Challenges: The Final Report of the National Assessment of 
Title I.'' This in-depth analysis of Title I concluded that the 
initial results of Title I's systemic accountability system 
have proven successful. Out of the six States reporting data, 
five showed improvements in math achievement and four in 
reading. Out of the 13 urban school districts reporting, 9 
showed substantial increases in either math or reading 
achievement. Most importantly, the National Assessment told us 
that, when fully implemented, systemic reform will very likely 
close the achievement gap between disadvantaged students and 
their non-disadvantaged peers.
    H.R. 2 maintains and strengthens these reforms. The bill 
continues the improved targeting of Title I resources to the 
highest poverty schools, and strengthens increased teacher and 
paraprofessional quality. It maintains the requirements for 
State systemic reform, based on challenging standards and 
aligned assessments. A new focus is added to include State, 
school district and school report cards to help parents and 
states monitor student achievement. The bill requires that 
States ensure all of their teachers are fully qualified by the 
year 2003. Additionally, the bill prohibits the use of Title I 
funds for private school vouchers.
    The bill also enhances accountability by requiring the 
reporting of disaggregated data based on at-risk populations, 
and provides additional focus on turning around failing schools 
through the investment of additional help and resources. We can 
no longer tolerate low-performing schools that place the 
education of our children at risk. This means that school 
districts must provide successful intervention to help the 
students of low-performing schools reach high standards, or 
face strong corrective action measures.
    We are also pleased that this legislation maintains and 
strengthens the Magnet Schools Assistance Program (MSAP), the 
Javits Gifted and Talented Program, and McKinney Homeless 
Assistance Program. The MSAP continues the focus on assisting 
those school districts under voluntary or court ordered 
desegregation programs to establish, develop, and implement 
magnet schools. Despite the elimination of statutory language 
specifically requiring the Office of Civil Rights to review 
applications for assistance under this program, it is our 
intent that the Secretary of Education will continue this 
practice.
    While we are supportive of the bill as a whole, we have 
serious concerns regarding changes in the schoolwide poverty 
requirements, the exclusion of the Women's Educational Equity 
Act, and the repeal of the Native Hawaiian Education Programs 
from the Elementary and Secondary Education Act.
The 50% poverty eligibility for schoolwide programs should be 
        maintained
    The bill as reported lowers the poverty eligibility 
threshold for schoolwide programs from 50% to 40%. Presently, 
schools with over 50 percent of their student population from 
low-income families can operate a schoolwide program. 
Schoolwide authority is considered advantageous only if there 
are a significant number of children in poverty. By lowering 
the poverty threshold to 40%, the Majority is diluting the 
program's focus on poor children.
    During Committee consideration of H.R. 2, the Committee 
passed an amendment by Representative Payne, by a vote of 24-
21, to retain the schoolwide threshold at 50%. Later in the 
markup, the Majority inexplicably reversed itself and passed an 
amendment to move the threshold back to 40%. We are very 
troubled that after approving an amendment to raise the 
schoolwide threshold, the Committee took a step backwards and 
reversed itself. This is unacceptable, and, we will continue to 
fight to retain the 50% threshold.
The Women's Educational Equity Act should be maintained
    We strongly oppose elimination of the Women's Educational 
Equity Act (WEEA). Just as the gender gap in education is 
beginning to narrow, the Majority is ignoring girls' 
educational needs and eliminating a current, long-standing 
program that ensures fairness and equal opportunities in 
schools. WEEA represents the federal commitment to ensure that 
girls' futures are determined not be their gender, but by their 
own interests, aspirations, and abilities.
    Since 1974, WEEA has funded the development and 
dissemination of curricular materials; training programs; 
guidance activities; and other projects to combat inequitable 
educational practices. WEEA provides a resource for teachers, 
administrators, and parents and provides the materials and 
tools to help schools comply with Title IX, the federal law 
prohibiting sex discrimination in federally funded education 
institutions. Through an 800 number, e-mail, and a web site, 
the WEEA Publishing Center makes these materials and models 
widely available to teachers, administrators, and parents.
    WEEA has funded over 700 programs since its inception, and 
the requests for assistance and information are growing. From 
February to August of this year, the WEEA Resource Center 
received over 750 requests for technical assistance. Past and 
current WEEA-funded projects include making math and science 
opportunities more accessible to girls, and programs such as 
``Expanding Your Horizons'' expose girls and women to non-
traditional careers.
    The Majority cited the results of a 1994 GAO study as its 
reason for eliminating this very important program. It argued 
that the Womens' Education Equity Center lacked the staff to 
implement this program. The Majority also argued that a small 
percentage of the grants made its way to the state and local 
levels. During the 1980s, WEEA fought a constant battle with 
funding and authorization. It has only been since the GAO 
report was printed and the Democratic president was elected, 
that the Womens' Education Equity Center has been able to grow 
and improve. The Majority must not rely on a dated report that 
is no longer relevant to justify the elimination of this 
program.
    The Majority also argues this program is not needed. Girls 
are doing better than boys in school in reading and writing. 
Although there has been much improvement in girls 
accomplishments, this does not justify the elimination of the 
program that added to these gains. Girls are achieving now 
because of the federal government's focus and attention on 
these inequities.
    Moreover, although there has been gains, girls are still 
lagging behind boys in many important subjects, such as math, 
science, and technology.
    WEEA helps girls acquire the skills and self-confidence 
they will need to support themselves and help support their 
families. Efforts to improve education will fail unless we 
address the different needs of different students. Excellence 
and equity go hand in hand. The repeal of this critical program 
undermines this country's commitment to equity in the 
classroom.

The Native Hawaiian Education Programs should not be repealed

    We oppose the repeal of the Native Hawaiian Education 
Programs from the Elementary and Secondary Education Act 
(ESEA).
    The Native Hawaiian Education Program has been in effect 
since 1988, when it was first included in Title IX of ESEA 
together with funding for Native American and Native Alaskan 
education programs. Native Hawaiians are Native Americans, and 
like Native American Indians, they have suffered greatly at the 
hand of the U.S. Government, most significantly due to the 
illegal overthrow of the Hawaiian Monarchy by military force in 
1893. As a result, Native Hawaiians were disenfranchised from 
their land, their culture, and their ability to self govern. 
Eliminating this program negates the steady progress that has 
been made in recent years to make amends for the terrible 
travesty of the overthrow.
    From 1826 until 1893, the United States recognized the 
Kingdom of Hawaiian as a sovereign, independent nation and 
accorded her full and complete diplomatic recognition. During 
this time, treaties and trade agreements were enacted into 
between these two nations. However, in 1893, a powerful group 
of American businessmen engineered the overthrow with the use 
of U.S. Naval forces. Queen Liliuokalani was imprisoned and 
over 1.8 million acres of land belonging to the Crown, referred 
to as Crown lands or ceeded lands, were confiscated without 
compensation or due process.
    This takeover was illegal. There was no treaty of 
annexation. There was no referendum of consent by the Native 
Hawaiian people. Recently, the National Archives disclosed 
amongst its treasures a 556 page petition dated 1897-1989 
protesting the annexation of Hawaii by the U.S. It was signed 
by 21,259 Native Hawaiian people. A second petition had more 
than 17,000 signatures. Historians advise that this number of 
signatories constitutes nearly 100% of the adult Native 
Hawaiian population at that time.
    Today, out of a total of 211,033 acres of land occupied by 
the military, the ownership of 112,137 acres can be traced to 
the royal family. No compensation was ever paid for these 
lands.
    In 1920, Congress answered the cries of injustice by 
decreeing that 20,000 acres of land confiscated by the federal 
government be returned to the Native Hawaiians as an act of 
contrition. Unfortunately, these lands were in places where no 
one lived or wanted to live. They were in the most remote 
places--isolated without any infrastructure or access to jobs. 
Today, Native Hawaiians live in segregated reservations much 
like the Indian tribes. Their current despair is due to this 
forced isolation.
    The Native Hawaiian Education Act was established out of 
our moral and legal responsibility for the destruction that 
occurred to this community. The $20 million that funds this 
program to help educate Native Hawaiian children can't begin to 
make up for the loss of a nation, of an identity, a culture, 
and a heritage, but it can help fulfill our moral and legal 
obligations.
    Justice requires that we fulfill our trust obligations to 
the Native Hawaiian community. This modest program has helped 
these children, who suffer the lowest reading and math scores, 
whose families suffer the highest percentage of poverty, and 
whose health statistics and mortality rates are alarming by all 
measures. We do this for the Native American and Native Alaskan 
communities. The Majority would never dream of eliminating the 
funding for these equally important programs. We must not 
repeal this important program for the Native Hawaiian 
population.
    We urge the Committee to uphold the honor of the United 
States and restore the Native Hawaiian Education program to 
this legislation.

Democratic amendments opposed by the majority

    We are disappointed that the Majority opposed a number of 
amendments that would have strengthened the bill. Mr. Martinez 
offered an amendment to strike the parental consent 
requirements related to limited English proficient children, 
and one to ensure that the needs ofgirls and at-risk groups 
were considered in constructing professional development programs. Mr. 
Fattah offered two amendments to increase the comparability 
requirements in Title I to even out within district inequities 
pertaining to curriculum and certified teachers and to require States 
to reduce State finance inequities. Mr. Owens offered three amendments 
to increase training for educators dealing with technology, to train 
paraprofessionals, and to help wire and repair our nation's public 
schools.
    Mr. Scott also offered amendments to focus on childhood 
services, truancy prevention, and to cap the amount of Title I 
funds for transportation to 10 percent. Mr. Roemer offered an 
amendment to increase the Title I authorization by $1.5 
million. Mr. Andrews offered an amendment to authorize pre-
kindergarten as a use of funds under schoolwide programs.
    Ms. Sanchez offered an amendment to establish a parental 
training center, and an amendment to establish a dropout 
prevention program for pregnant and parenting teens. Ms. 
Woolsey offered an amendment to ensure that the needs of girls 
were addressed in professional development programs. Mr. 
Hinojosa offered four amendments. The first amendment, which 
was withdrawn, would have required an electronic migrant 
student records transfer system. Two amendments would have 
established a National Migrant Parent Advisory Council and a 
dropout prevention program. Mr. Hinojosa's fourth amendment 
would have reauthorized Title VII of ESEA--Bilingual and 
Emergency Immigrant Education.

                                   William L. Clay.
                                   Dale E. Kildee.
                                   Major R. Owens.
                                   Patsy T. Mink.
                                   Tim Roemer.
                                   Lynn Woolsey.
                                   Chaka Fattah.
                                   Carolyn McCarthy.
                                   Ron Kind.
                                   Harold Ford, Jr.
                                   David Wu.
                                   George Miller.
                                   Matthew G. Martinez.
                                   Donald M. Payne.
                                   Robert E. Andrews.
                                   Robert C. Scott.
                                   Carlos Romero-Barcelo.
                                   Ruben Hinojosa.
                                   John F. Tierney.
                                   Loretta Sanchez.
                                   Dennis J. Kucinich.
                                   Rush Holt.

                            ADDITIONAL VIEWS

    During the House Education and the Workforce Committee's 
markup of H.R. 2, the Student Results Act of 1999, Congressman 
Chaka Fattah offered and we supported two amendments that would 
focus the Federal government's efforts on measuring and 
ensuring that all public school students receive an equal and 
adequate education regardless of where they live. Both 
amendments received the full support of our Democratic 
colleagues on the Committee.
    Congressman Fattah's first amendment focused on the 
comparability of educational services. This amendment would 
have strengthened current law by requiring districts receiving 
Title I funds to establish policies, no later than July 1, 
2002, to ensure that Title I schools are comparable to non-
Title I schools. Schools would be compared on three qualitative 
factors including:
          1. the rates at which classes are taught by 
        experienced and fully qualified teachers in Title I and 
        non-Title I schools;
          2. the curriculum, in terms of both the range of 
        courses offered, and the opportunity to participate in 
        rigorous courses, including advanced placement (AP) 
        courses; and
          3. the quality and availability of instructional 
        materials and instructional resources including 
        technology.
    For example, Title I schools would be expected to have 
teachers who are well qualified, in terms of experience and 
education, as teachers in non-Title I schools. Similarly, 
students in Title I schools would be expected to have equal 
access to a high-quality curriculum, including gifted and 
talented classes, Advanced Placement courses, and courses that 
address the State's content standards, as students in non-Title 
I schools. Finally, Title I schools would also be expected to 
be as comparably equipped with computers and other educational 
technologies as non-Title I schools.
    Currently, most districts comply with the comparability 
requirement by ensuring equivalence in pupil/teacher ratios or 
in instructional staff salaries/pupil. Although these measures 
are important, they often address quantity rather than the 
quality of resources available between Title I and non-Title I 
schools.
    While providing districts considerable flexibility in 
devising their comparability policies, my comparability 
amendment is focused toward ensuring that the comparability 
provision results in comparable quality as well as quantity of 
resources.
    The second amendment Congressman Fattah offered to H.R. 2 
on educational equity would simply require that States certify 
to the Secretary of Education that either the per pupil 
expenditures are ``substantially equal'' across the state or 
that achievement levels are ``substantially equal'' across the 
state. The amendment further calls for consultation with the 
National Academy of Sciences to develop definitions for 
``substantially equal'' and ``per pupil expenditures''.
    When the issue of school finance equity has been raised 
supporters of the status quo have argued that achievement is 
not directly related to quantity of dollars and services 
provided to public school students. We strongly disagree with 
this assertion. The obsolescence of our nation's school finance 
systems is having a devastating effect on both educational 
equity and educational quality in school districts all over the 
country. There has been no significant change in these systems 
for 70 years. Court challenges pending in 23 states are finding 
not only that they perpetuate gross disparities in the 
resources that are available to districts of different wealth, 
but also that these antiquated systems are geared to meeting 
minimum standards rather than to providing the high quality, 
world class education our children need to compete in today's 
global economy.
    The United States consistently ranks last among the top ten 
industrialized nations in the educational attainment of its 
students. Most of the school districts in the country need 
enriched and expanded curricula, better facilities, higher 
quality and greater quantity of text books, instructional 
equipment, audiovisual materials, consumable supplies, computer 
labs and libraries. Poorer school districts have inferior 
course offerings, dilapidated facilities, higher drop out 
rates, and failing scores. We cannot lift our national 
performance without addressing the need of these districts. We 
cannot preserve our viability as a nation unless we can insure 
that all children have the level of education they need to be 
citizens and to compete in the labor market.

                                   Chaka Fattah.
                                   John F. Tierney.
                                   Bobby Scott.
                                   Patsy T. Mink.
                                   George Miller.
                                   Donald M. Payne.

                ADDITIONAL VIEWS OF HON. DALE E. KILDEE

                  repeal of indian education programs

    The Federal responsibility to honor our commitments with 
Native Americans is one that Congress must take extremely 
seriously. The government to government relationship that the 
Federal government has with Indian tribes is a critically 
important piece of our history and heritage as a nation. In 
general, the mission of Federal Indian education programs has 
been to support traditional Native cultures and values, to 
enable Native learners to become contributing members of their 
communities, to promote Native control of educational 
institutions, and to improve educational opportunities and 
resources for American Indians throughout the United States.
    Unfortunately, a portion of H.R. 2 does not recognize these 
important priorities. H.R. 2 repeals four existing programs 
authorized under Title IX of the Elementary and Secondary 
Education Act (ESEA). These programs are: Fellowships for 
Indian students; Indian Gifted and Talented programs, Grants to 
Tribes for Administrative Planning and Development, and Indian 
Adult Education. While these programs are presently unfunded, 
they represent a piece of the commitment to Native Americans 
that Congress is required to honor. The continuation of these 
programs should be a moral obligation of the Congress. It is my 
hope that as we consider this bill on the floor and in 
conference that these critically important programs can be 
maintained.
                                                    Dale E. Kildee.

                ADDITIONAL VIEWS OF HON. LORETTA SANCHEZ

    As a Representative of a district that relies heavily on 
federal Title I funding, I am dedicated to ensuring that this 
aid, designed to ensure that academic services reach our 
nation's most disadvantaged students and communities, meets the 
high expectations we have of this important program.
    I believe there is nothing more important to the future of 
our country than the opportunity for a high-quality education 
for all Americans. I offered two amendments to improve the 
Title I legislation, H.R. 2, recently marked up by the House 
Education and the Workforce Committee, in an effort to meet 
this goal.
    My dropout prevention amendment would ensure that pregnant 
and parenting teens do not fall through the cracks in our 
national dropout prevention efforts. Although ESEA has 
historically made efforts to ensure that girls have equal 
access to education, too many young women are still dropping 
out of school. This is a serious problem that needs to be 
addressed.
    The U.S. has the highest teen pregnancy rate of any 
industrialized nation. Almost 1 million teens become pregnant 
each year, and tragically, 80 percent of these pregnancies are 
unintended. Pregnancy and parenting account for half the female 
dropout rate and one-fourth of the dropout rate for all 
students. Two-thirds of girls who give birth before age 18 will 
not complete high school. And the younger a girl becomes 
pregnant, the more likely it is that she will not complete high 
school.
    If we do not maintain the programs required by current law, 
we allow these young women and men to disappear from our 
nation's high schools--relegating them to difficult lives, 
increasing the burden they bear without high school diplomas, 
and increasing the possibility that the nation's taxpayers will 
later be asked to support them through public assistance.
    I also offered a Parent Training and Information Center 
amendment. Under this proposal, the Secretary of Education 
would create a grant program to empower communities interested 
in providing an independent source of information for parents. 
These centers would offer parents assistance in understanding 
how they can make the right educational choices for their 
children.
    I am pleased that H.R. 2 includes strong accountability 
measures designed to assure all students of a quality education 
and high standards. But this is top-down accountability, 
requiring local education agencies to report to the government 
on their progress in these areas. A critical piece is missing: 
bottom-up accountability. Schools should answer--first and 
foremost--to parents, the individuals most entitled and best 
equipped to foster their children's educational growth and 
success.
    My amendment creates that piece. It would ensure that 
families have the tools they need to make sure their children's 
schools are providing the high quality and constant improvement 
that this bill is designed to guarantee. And it will help them 
understand their choices when schools aren't meeting these 
guarantees.
    But along with the clear call for independent centers, this 
amendment makes clear that these centers are part of a 
collaborative effort to improve schools in the community. they 
must meet with school district personnel to discuss the grant 
proposal before applying for it and school officials must sit 
on the centers' boards. These centers will know what's going on 
in their communities, and can relate to local schools and 
families. They can help make parents full partners in their 
children's education.
    There is nothing more important to the future of our 
country than the opportunity for a high-quality education for 
all Americans. I believe that a key part of my job is 
protecting the youth of America, and that means ensuring that 
they are provided with the best possible education. I was 
disappointed that these proposals failed to garner the 
majority's support, but my belief in their importance has not 
been reduced. That is why I look forward to introducing these 
amendments again before the full House.

                DISSENTING VIEWS OF HON. RUBEN HINOJOSA

    H.R. 2 is unfortunately an opportunity missed for the 
hundreds of thousands of migrant students across this country. 
Migrant students are arguably the most disadvantaged students 
in our Nation. While there are Federal programs to serve those 
students, and for the most part they serve them well, there are 
also areas in which we need major changes to meet the needs of 
these very disadvantaged children. During Committee 
deliberations on the bill, I unsuccessfully offered two 
amendments that would have improved significantly Federal 
migrant education programs and the services provided to migrant 
children. My first amendment would have established a data 
information system that would have provided immediate 
information on the previous educational activities of migrant 
students when they entered a new school. The second amendment 
would have created a national parent advisory committee on 
migrant education. The failure of the Committee to adopt these 
provisions only perpetuates the problems migrant children must 
face in trying to receive an education.
    Top on the list of needed changes is a revamped and 
revitalized data collection system. Since the passage of the 
last reauthorization of the Elementary and Secondary Education 
Act in 1994, there has been no coordinated system of data 
collection. While the system in place at that time was clearly 
outdated and in need of reworking, its elimination without an 
adequate replacement has been devastating. The results have 
been nothing less than catastrophic for migrant children. The 
negative consequences range from many children receiving 
multiple inoculations for the same disease, a serious threat to 
their health, to a total lack of records that can be 
transferred from school to school. Children are therefore often 
placed in inappropriate education programs and the ability of 
older children to accumulate credits toward high school 
graduation is put severely at risk.
    Of all youth, migrant students are the most at risk of not 
meeting state standards or even being assessed to those 
standards. The lack of a national, efficient, and cohesive 
system for transferring the records of migrant students impedes 
schools abilities to provide appropriate education and related 
services to migrant students and their families. Currently, 
states use an uncoordinated and incoherent hodge-podge of 
electronic and paper systems. These conditions make it nearly 
impossible to determine progress toward meeting challenging 
state standards.
    A second area of missed opportunity is the creation of a 
National Parent Advisory Committee for migrant programs. A 
national parent advisory council would ensure that the voice of 
the parent and the family is heard in implementing Federal 
migrant policies. It is difficult to implement any large 
Federal education program, but migrant education programs are 
not just about educating children they also are about 
accommodating a migrant family lifestyle that has unique 
problems and characteristics that must be addressed if migrant 
children are to learn. In many ways, migrant children are 
national children. Their annual voyages take them across city, 
county, state, and regional lines. Their programs must have a 
national focus that transcends those geographical barriers that 
form the educational systems for most children. Most 
educational policies are developed at the local level with the 
input of local advisory councils. Migrant education policies 
are mostly developed at the national level and need the input 
of a national parent advisory council.
                                                    Ruben Hinojosa.

                   DISSENTING VIEWS OF HON. RON PAUL

         i. introduction--the failure of centralized education

    Congress is once again preparing to exceed its 
constitutional limits as well as ignore the true lesson of the 
last thirty years of education failure by reauthorizing Title I 
of the Early Secondary Education Act (ESEA). Like most federal 
programs, Title I was launched with the best of intentions, 
however, good intentions are no excuse for Congress to exceed 
its constitutional limitations by depriving parents, local 
communities and states of their rightful authority over 
education. The tenth amendment does not contain an exception 
for ``good intentions!''
    The Congress that created Title I promised the American 
public that, in exchange for giving up control over their 
schools and submitting to increased levels of taxation, 
federally-empowered ``experts'' would create an educational 
utopia. However, rather than ushering in a new golden age of 
education, increased federal involvement in education has, not 
coincidently, coincided with a decline in American public 
education. In 1963, when federal spending on education was less 
than nine hundred thousand dollars, the average Scholastic 
Achievement Test (SAT) score was approximately 980. Thirty 
years later, when federal education spending ballooned to 19 
billion dollars, the average SAT score had fallen to 902. 
Furthermore, according to the National Assessment of 
Educational Progress (NAEP) 1992 Survey, only 37% of America's 
12th graders were actually able to read at a 12th grade level!

     ii. esea's orwellian formula: federal mandates=local control!

    Supporters of a constitutional education policy should be 
heartened that Congress has finally recognized that simply 
throwing federal taxpayer money at local schools will not 
improve education. However, too many in Congress continue to 
cling to the belief that the ``right federal program'' 
conceived by enlightened members and staffers will lead to 
educational nirvana. In fact, a cursory review of this 
legislation reveals at least five new mandates imposed on the 
states by this bill--yet the drafters of this legislation 
somehow manage to claim with a straight face that this bill 
promotes local control!
    One mandate requires states to give priority to K-6 
education programs in allocating their Title I dollars. At 
first glance this may seem reasonable, however, many school 
districts may need to devote an equal, or greater, amount of 
resources to high school education. In fact, the principal of a 
rural school in my district has expressed concern that they may 
have to stop offering programs that use Title I funds if this 
provision becomes law! What makes DC-based politicians and 
bureaucrats better judges of the needs of this small East Texas 
school district than that school's principal?
    Another mandate requires teacher aides to be ``fully 
qualified'' if the aides are to be involved in instructing 
students. Again, while this may appear to be simply a matter of 
following sound practice, the cost of hiring qualified teaching 
assistants will add a great burden to many small and rural 
school districts. Many of these districts may have to go 
without teachers aides, placing another burden on our already 
overworked public school teachers.
    Some may claim that this bill does not contain ``mandates'' 
as no state must accept federal funds. However, since obeying 
federal educrats is the only way states and localities can 
retrieve any of the education funds unjustly taken from their 
citizens by oppressive taxation, it is the rare state that will 
not submit to federal specifications.

           iii. true accountability requires parental control

    One of the mantras of those who promote marginal reforms of 
federal education programs is the need to ``hold schools 
accountable for their use of federal funds.'' This is the 
justification for requiring Title I schools to produce ``report 
cards'' listing various indicators of school performance. Of 
course, no one would argue against holding schools accountable, 
but accountable to whom? The Federal Government? Simply 
requiring schools to provide information about the schools, 
without giving parents the opportunity to directly control 
their child's education does not hold schools accountable to 
parents. As long as education dollars remain in the hands of 
bureaucrats not parents, schools will remain accountable to 
bureaucrats instead of parents.
    Furthermore, maximum decentralization is the key to 
increasing education quality. This is because decentralized 
systems are controlled by those who know the unique needs of an 
individual child, whereas centralized systems are controlled by 
bureaucrats who impose a ``one-size fits all'' model. The model 
favored by bureaucrats can never meet the special needs of 
individual children in the local community because the 
bureaucrats have no way of knowing those particular needs. 
Small wonder that students in states with decentralized 
education score 10 percentage points higher on the NAEP tests 
in math and reading than students in states with centralized 
education.
    Fortunately there is an alternative educational policy to 
the one before us today that respects the Constitution and 
improves education by restoring true accountability to 
America's education system. Returning real control to the 
American people by returning direct control of the education 
dollars to America's parents and concerned citizens is the only 
proper solution. This is precisely why I have introduced the 
Family Education Freedom Act (H.R. 935). The Family Education 
Freedom Act provides parents with a $3,000 per child tax credit 
for the K-12 education expenses. I have also introduced the 
Education Tax Credit Act (H.R. 936), which provides a $3,000 
tax credit for cash contributions to scholarships as well as 
any cash and in-kind contribution to public, private, or 
religious schools.
    By placing control of education funding directly into the 
hands of parents and concerned citizens, my bills restore true 
accountability to education. When parents control education 
funding, schools must respond to the parents' desire for a 
quality education, otherwise the parent will seek other 
educational options for their child.

                             iv. conclusion

    Instead of fighting over what type of federal intervention 
is best for education, Congress should honor their 
constitutional oath and give complete control over America's 
educational system to the states and people. Therefore, 
Congress should reject this legislation and instead work to 
restore true accountability to America's parents by defunding 
the education bureaucracy and returning control of the 
education dollar to America's parents.
                                                          Ron Paul.

                                  
