[House Report 107-334]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-334
_______________________________________________________________________

                                     




                   NO CHILD LEFT BEHIND ACT OF 2001

                               __________

                           CONFERENCE REPORT

                              to accompany

                                 H.R. 1




   December 13 (legislative day, December 12), 2001.--Ordered to be 
                                printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
76-598                     WASHINGTON : 2001


107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-334

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



 
                    NO CHILD LEFT BEHIND ACT OF 2001

                                _______
                                

    December 13 (legislative day, December 12), 2001.--Ordered to be 
                                printed

                                _______
                                

 Mr. Boehner, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany H.R. 1]

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

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

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

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

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

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

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

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

                     TITLE IV--21ST CENTURY SCHOOLS

Sec. 401. 21st century schools.

   TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

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

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

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

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

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

                     TITLE VIII--IMPACT AID PROGRAM

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

                      TITLE IX--GENERAL PROVISIONS

Sec. 901. General provisions.

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

                             PART A--REPEALS

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

                         PART B--REDESIGNATIONS

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

                       PART C--HOMELESS EDUCATION

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

              PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT

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

                  PART E--HIGHER EDUCATION ACT OF 1965

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

                PART F--GENERAL EDUCATION PROVISIONS ACT

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

                  PART G--MISCELLANEOUS OTHER STATUTES

Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and 
          Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.

SEC. 3. REFERENCES.

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

SEC. 4. TRANSITION.

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

SEC. 5. EFFECTIVE DATE.

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

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

    The Act is amended--
            (1) in the heading of section 1, by striking 
        ``TABLE OF CONTENTS'' and inserting ``SHORT TITLE''; 
        and
            (2) by adding after section 1 the following new 
        section:

``SEC. 2. TABLE OF CONTENTS.

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

``Sec. 1. Short title.
``Sec. 2. Table of contents.



   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED



``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.

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

                 ``Subpart 1--Basic Program Requirements

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

                        ``Subpart 2--Allocations

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

           ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

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

                    ``Subpart 2--Early Reading First

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

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

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

        ``Subpart 4--Improving Literacy Through School Libraries

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

                ``PART C--EDUCATION OF MIGRATORY CHILDREN

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

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

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

                   ``Subpart 1--State Agency Programs

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

                   ``Subpart 2--Local Agency Programs

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

                     ``Subpart 3--General Provisions

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

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

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

                  ``PART F--COMPREHENSIVE SCHOOL REFORM

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

                  ``PART G--ADVANCED PLACEMENT PROGRAMS

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

                   ``PART H--SCHOOL DROPOUT PREVENTION

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

               ``Subpart 1--Coordinated National Strategy

``Sec. 1811. National activities.

            ``Subpart 2--School Dropout Prevention Initiative

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

                      ``PART I--GENERAL PROVISIONS

``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or 
          control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.



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



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

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

                      ``Subpart 1--Grants to States

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

          ``Subpart 2--Subgrants to Local Educational Agencies

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

             ``Subpart 3--Subgrants to Eligible Partnerships

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

                       ``Subpart 4--Accountability

``Sec. 2141. Technical assistance and accountability.

                    ``Subpart 5--National Activities

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

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

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

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

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

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

               ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

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

                     ``CHAPTER C--GENERAL PROVISIONS

``Sec. 2321. Authorization of appropriations.

                  ``Subpart 2--National Writing Project

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

                      ``Subpart 3--Civic Education

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

          ``Subpart 4--Teaching of Traditional American History

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

                ``Subpart 5--Teacher Liability Protection

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

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

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

             ``Subpart 1--State and Local Technology Grants

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

               ``Subpart 2--National Technology Activities

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

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

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

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

``Sec. 2441. Internet safety.



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



``Sec. 3001. Authorizations of appropriations; condition on 
          effectiveness of parts.

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

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

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

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

             ``Subpart 2--Accountability and Administration

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

                    ``Subpart 3--National Activities

``Sec. 3131. National professional development project.

                        ``Subpart 4--Definitions

``Sec. 3141. Eligible entity.

      ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

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

            ``Subpart 1--Program Development and Enhancement

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

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

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

                  ``Subpart 3--Professional Development

``Sec. 3231. Professional development grants.

           ``Subpart 4--Emergency Immigrant Education Program

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

                       ``Subpart 5--Administration

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

                      ``PART C--GENERAL PROVISIONS

``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.



                    ``TITLE IV--21ST CENTURY SCHOOLS



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

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

                        ``Subpart 1--State Grants

``Sec. 4111. Reservations and allotments.
``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.

                     ``Subpart 2--National Programs

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

                       ``Subpart 3--Gun Possession

``Sec. 4141. Gun-free requirements.

                     ``Subpart 4--General Provisions

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

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

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

                  ``PART C--ENVIRONMENTAL TOBACCO SMOKE

``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.



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



                      ``PART A--INNOVATIVE PROGRAMS

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

                  ``Subpart 1--State and Local Programs

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

                       ``Subpart 2--State Programs

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

            ``Subpart 3--Local Innovative Education Programs

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

                     ``Subpart 4--General Provisions

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

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

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

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

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

          ``Subpart 3--Voluntary Public School Choice Programs

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

                   ``PART C--MAGNET SCHOOLS ASSISTANCE

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

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

``Sec. 5401. Authorization of appropriations.


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


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

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

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

            ``Subpart 3--Partnerships in Character Education

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

                ``Subpart 4--Smaller Learning Communities

``Sec. 5441. Smaller Learning Communities.

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

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

                ``Subpart 6--Gifted and Talented Students

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

                    ``Subpart 7--Star Schools Program

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

                       ``Subpart 8--Ready to Teach

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

            ``Subpart 9--Foreign Language Assistance Program

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

                    ``Subpart 10--Physical Education

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

               ``Subpart 11--Community Technology Centers

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

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

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

             ``Subpart 13--Excellence in Economic Education

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

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

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

                     ``Subpart 15--Arts in Education

``Sec. 5551. Assistance for arts education.

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

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

               ``Subpart 17--Combatting Domestic Violence

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

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

``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.

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

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

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

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

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

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



               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY



                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                       ``Subpart 1--Accountability

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

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

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

         ``Subpart 3--State and Local Flexibility Demonstration

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

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

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

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

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

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

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

                  ``PART B--RURAL EDUCATION INITIATIVE

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

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

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

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

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

                     ``Subpart 3--General Provisions

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

                      ``PART C--GENERAL PROVISIONS

``Sec. 6301. Prohibition against Federal mandates, direction, or 
          control.
``Sec. 6302. Rule of construction on equalized spending.



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



                       ``PART A--INDIAN EDUCATION

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

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

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

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

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

                    ``Subpart 3--National Activities

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

                   ``Subpart 4--Federal Administration

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

       ``Subpart 5--Definitions; Authorizations of Appropriations

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

                   ``PART B--NATIVE HAWAIIAN EDUCATION

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

                    ``PART C--ALASKA NATIVE EDUCATION

``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.



                        ``TITLE VIII--IMPACT AID



``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
``Sec. 8004. Policies and procedures relating to children residing on 
          Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.



                     ``TITLE IX--GENERAL PROVISIONS



                          ``PART A--DEFINITIONS

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

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

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

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

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

                            ``PART D--WAIVERS

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

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

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

                      ``Subpart 2--Other Provisions

``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal 
          funds.
``Sec. 9528. Armed forces recruiter access to students and student 
          recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for 
          teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.

                          ``PART F--EVALUATIONS

``Sec. 9601. Evaluations.''.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

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

    Title I of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.) is amended to read as follows:

   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

``SEC. 1001. STATEMENT OF PURPOSE.

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

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 1003. SCHOOL IMPROVEMENT.

    ``(a) State Reservations.--Each State shall reserve 2 
percent of the amount the State receives under subpart 2 of 
part A for fiscal years 2002 and 2003, and 4 percent of the 
amount received under such subpart for fiscal years 2004 
through 2007, to carry out subsection (b) and to carry out the 
State's responsibilities under sections 1116 and 1117, 
including carrying out the State educational agency's statewide 
system of technical assistance and support for local 
educational agencies.
    ``(b) Uses.--Of the amount reserved under subsection (a) 
for any fiscal year, the State educational agency--
            ``(1) shall allocate not less than 95 percent of 
        that amount directly to local educational agencies for 
        schools identified for school improvement, corrective 
        action, and restructuring, for activities under section 
        1116(b); or
            ``(2) may, with the approval of the local 
        educational agency, directly provide for these 
        activities or arrange for their provision through other 
        entities such as school support teams or educational 
        service agencies.
    ``(c) Priority.--The State educational agency, in 
allocating funds to local educational agencies under this 
section, shall give priority to local educational agencies 
that--
            ``(1) serve the lowest-achieving schools;
            ``(2) demonstrate the greatest need for such funds; 
        and
            ``(3) demonstrate the strongest commitment to 
        ensuring that such funds are used to enable the lowest-
        achieving schools to meet the progress goals in school 
        improvement plans under section 1116 (b)(3)(A)(v).
    ``(d) Unused Funds.--If, after consultation with local 
educational agencies in the State, the State educational agency 
determines that the amount of funds reserved to carry out 
subsection (b) is greater than the amount needed to provide the 
assistance described in that subsection, the State educational 
agency shall allocate the excess amount to local educational 
agencies in accordance with--
            ``(1) the relative allocations the State 
        educational agency made to those agencies for that 
        fiscal year under subpart 2 of part A; or
            ``(2) section 1126(c).
    ``(e) Special Rule.--Notwithstanding any other provision of 
this section, the amount of funds reserved by the State 
educational agency under subsection (a) in any fiscal year 
shall not decrease the amount of funds each local educational 
agency receives under subpart 2 below the amount received by 
such local educational agency under such subpart for the 
preceding fiscal year.
    ``(f) Reporting.--The State educational agency shall make 
publicly available a list of those schools that have received 
funds or services pursuant to subsection (b) and the percentage 
of students from each school from families with incomes below 
the poverty line.
    ``(g) Assistance for Local School Improvement.--
            ``(1) Program authorized.--The Secretary shall 
        award grants to States to enable the States to provide 
        subgrants to local educational agencies for the purpose 
        of providing assistance for school improvement 
        consistent with section 1116.
            ``(2) State allotments.--Such grants shall be 
        allotted among States, the Bureau of Indian Affairs, 
        and the outlying areas, in proportion to the funds 
        received by the States, the Bureau of Indian Affairs, 
        and the outlying areas, respectively, for the fiscal 
        year under parts A, C, and D of this title. The 
        Secretary shall expeditiously allot a portion of such 
        funds to States for the purpose of assisting local 
        educational agencies and schools that were in school 
        improvement status on the date preceding the date of 
        enactment of the No Child Left Behind Act of 2001.
            ``(3) Reallocations.--If a State does not receive 
        funds under this subsection, the Secretary shall 
        reallocate such funds to other States in the same 
        proportion funds are allocated under paragraph (2).
            ``(4) State applications.--Each State educational 
        agency that desires to receive funds under this 
        subsection shall submit an application to the Secretary 
        at such time, and containing such information, as the 
        Secretary shall reasonably require, except that such 
        requirement shall be waived if a State educational 
        agency submitted such information as part of its State 
        plan under this part. Each State application shall 
        describe how the State educational agency will allocate 
        such funds in order to assist the State educational 
        agency and local educational agencies in complying with 
        school improvement, corrective action, and 
        restructuring requirements of section 1116.
            ``(5) Local educational agency grants.--A grant to 
        a local educational agency under this subsection shall 
        be--
                    ``(A) of sufficient size and scope to 
                support the activities required under sections 
                1116 and 1117, but not less than $50,000 and 
                not more than $500,000 for each participating 
                school;
                    ``(B) integrated with other funds awarded 
                by the State under this Act; and
                    ``(C) renewable for 2 additional 1-year 
                periods if schools are meeting the goals in 
                their school improvement plans developed under 
                section 1116.
            ``(6) Priority.--The State, in awarding such 
        grants, shall give priority to local educational 
        agencies with the lowest-achieving schools that 
        demonstrate--
                    ``(A) the greatest need for such funds; and
                    ``(B) the strongest commitment to ensuring 
                that such funds are used to provide adequate 
                resources to enable the lowest-achieving 
                schools to meet the goals under school and 
                local educational agency improvement, 
                corrective action, and restructuring plans 
                under section 1116.
            ``(7) Allocation.--A State educational agency that 
        receives a grant under this subsection shall allocate 
        at least 95 percent of the grant funds directly to 
        local educational agencies for schools identified for 
        school improvement, corrective action, or restructuring 
        to carry out activities under section 1116(b), or may, 
        with the approval of the local educational agency, 
        directly provide for these activities or arrange for 
        their provision through other entities such as school 
        support teams or educational service agencies.
            ``(8) Administrative costs.--A State educational 
        agency that receives a grant award under this 
        subsection may reserve not more than 5 percent of such 
        grant funds for administration, evaluation, and 
        technical assistance expenses.
            ``(9) Local awards.--Each local educational agency 
        that applies for assistance under this subsection shall 
        describe how it will provide the lowest-achieving 
        schools the resources necessary to meet goals under 
        school and local educational agency improvement, 
        corrective action, and restructuring plans under 
        section 1116.

``SEC. 1004. STATE ADMINISTRATION.

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

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

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
            ``(1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary a 
        plan, developed in consultation with local educational 
        agencies, teachers, principals, pupil services 
        personnel, administrators (including administrators of 
        programs described in other parts of this title), other 
        staff, and parents, that satisfies the requirements of 
        this section and that is coordinated with other 
        programs under this Act, the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        Head Start Act, the Adult Education and Family Literacy 
        Act, and the McKinney-Vento Homeless Assistance Act.
            ``(2) Consolidated plan.--A State plan submitted 
        under paragraph (1) may be submitted as part of a 
        consolidated plan under section 9302.
    ``(b) Academic Standards, Academic Assessments, and 
Accountability.--
            ``(1) Challenging academic standards.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State has adopted 
                challenging academic content standards and 
                challenging student academic achievement 
                standards that will be used by the State, its 
                local educational agencies, and its schools to 
                carry out this part, except that a State shall 
                not be required to submit such standards to the 
                Secretary.
                    ``(B) Same standards.--The academic 
                standards required by subparagraph (A) shall be 
                the same academic standards that the State 
                applies to all schools and children in the 
                State.
                    ``(C) Subjects.--The State shall have such 
                academic standards for all public elementary 
                school and secondary school children, including 
                children served under this part, in subjects 
                determined by the State, but including at least 
                mathematics, reading or language arts, and 
                (beginning in the 2005-2006 school year) 
                science, which shall include the same 
                knowledge, skills, and levels of achievement 
                expected of all children.
                    ``(D) Challenging academic standards.--
                Standards under this paragraph shall include--
                            ``(i) challenging academic content 
                        standards in academic subjects that--
                                    ``(I) specify what children 
                                are expected to know and be 
                                able to do;
                                    ``(II) contain coherent and 
                                rigorous content; and
                                    ``(III) encourage the 
                                teaching of advanced skills; 
                                and
                            ``(ii) challenging student academic 
                        achievement standards that--
                                    ``(I) are aligned with the 
                                State's academic content 
                                standards;
                                    ``(II) describe 2 levels of 
                                high achievement (proficient 
                                and advanced) that determine 
                                how well children are mastering 
                                the material in the State 
                                academic content standards; and
                                    ``(III) describe a third 
                                level of achievement (basic) to 
                                provide complete information 
                                about the progress of the 
                                lower-achieving children toward 
                                mastering the proficient and 
                                advanced levels of achievement.
                    ``(E) Information.--For the subjects in 
                which students will be served under this part, 
                but for which a State is not required by 
                subparagraphs (A), (B), and (C) to develop, and 
                has not otherwise developed, such academic 
                standards, the State plan shall describe a 
                strategy for ensuring that students are taught 
                the same knowledge and skills in such subjects 
                and held to the same expectations as are all 
                children.
                    ``(F) Existing standards.--Nothing in this 
                part shall prohibit a State from revising, 
                consistent with this section, any standard 
                adopted under this part before or after the 
                date of enactment of the No Child Left Behind 
                Act of 2001.
            ``(2) Accountability.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State has developed and is 
                implementing a single, statewide State 
                accountability system that will be effective in 
                ensuring that all local educational agencies, 
                public elementary schools, and public secondary 
                schools make adequate yearly progress as 
                defined under this paragraph. Each State 
                accountability system shall--
                            ``(i) be based on the academic 
                        standards and academic assessments 
                        adopted under paragraphs (1) and (3), 
                        and other academic indicators 
                        consistent with subparagraph (C)(vi) 
                        and (vii), and shall take into account 
                        the achievement of all public 
                        elementary school and secondary school 
                        students;
                            ``(ii) be the same accountability 
                        system the State uses for all public 
                        elementary schools and secondary 
                        schools or all local educational 
                        agencies in the State, except that 
                        public elementary schools, secondary 
                        schools, and local educational agencies 
                        not participating under this part are 
                        not subject to the requirements of 
                        section 1116; and
                            ``(iii) include sanctions and 
                        rewards, such as bonuses and 
                        recognition, the State will use to hold 
                        local educational agencies and public 
                        elementary schools and secondary 
                        schools accountable for student 
                        achievement and for ensuring that they 
                        make adequate yearly progress in 
                        accordance with the State's definition 
                        under subparagraphs (B) and (C).
                    ``(B) Adequate yearly progress.--Each State 
                plan shall demonstrate, based on academic 
                assessments described in paragraph (3), and in 
                accordance with this paragraph, what 
                constitutes adequate yearly progress of the 
                State, and of all public elementary schools, 
                secondary schools, and local educational 
                agencies in the State, toward enabling all 
                public elementary school and secondary school 
                students to meet the State's student academic 
                achievement standards, while working toward the 
                goal of narrowing the achievement gaps in the 
                State, local educational agencies, and schools.
                    ``(C) Definition.--`Adequate yearly 
                progress' shall be defined by the State in a 
                manner that--
                            ``(i) applies the same high 
                        standards of academic achievement to 
                        all public elementary school and 
                        secondary school students in the State;
                            ``(ii) is statistically valid and 
                        reliable;
                            ``(iii) results in continuous and 
                        substantial academic improvement for 
                        all students;
                            ``(iv) measures the progress of 
                        public elementary schools, secondary 
                        schools and local educational agencies 
                        and the State based primarily on the 
                        academic assessments described in 
                        paragraph (3);
                            ``(v) includes separate measurable 
                        annual objectives for continuous and 
                        substantial improvement for each of the 
                        following:
                                    ``(I) The achievement of 
                                all public elementary school 
                                and secondary school students.
                                    ``(II) The achievement of--
                                            ``(aa) economically 
                                        disadvantaged students;
                                            ``(bb) students 
                                        from major racial and 
                                        ethnic groups;
                                            ``(cc) students 
                                        with disabilities; and
                                            ``(dd) students 
                                        with limited English 
                                        proficiency;
                                except that disaggregation of 
                                data under subclause (II) shall 
                                not be required in a case in 
                                which the number of students in 
                                a category is insufficient to 
                                yield statistically reliable 
                                information or the results 
                                would reveal personally 
                                identifiable information about 
                                an individual student;
                            ``(vi) in accordance with 
                        subparagraph (D), includes graduation 
                        rates for public secondary school 
                        students and at least 1 other academic 
                        indicator, as determined by the State 
                        for all public elementary school 
                        students; and
                            ``(vii) in accordance with 
                        subparagraph (D), at the State's 
                        discretion, may also include other 
                        academic indicators, as determined by 
                        the State for all public school 
                        students, measured separately for each 
                        group described in clause (v), such as 
                        achievement on additional State or 
                        locally administered assessments, 
                        decreases in grade-to-grade retention 
                        rates, attendance rates, and changes in 
                        the percentages of students completing 
                        gifted and talented, advanced 
                        placement, and college preparatory 
                        courses.
                    ``(D) Requirements for other indicators.--
                In carrying out subparagraph (C)(vi) and (vii), 
                the State--
                            ``(i) shall ensure that the 
                        indicators described in those 
                        provisions are valid and reliable, and 
                        are consistent with relevant, 
                        nationally recognized professional and 
                        technical standards, if any; and
                            ``(ii) except as provided in 
                        subparagraph (I)(i), may not use those 
                        indicators to reduce the number of, or 
                        change, the schools that would 
                        otherwise be subject to school 
                        improvement, corrective action, or 
                        restructuring under section 1116 if 
                        those additional indicators were not 
                        used, but may use them to identify 
                        additional schools for school 
                        improvement or in need of corrective 
                        action or restructuring.
                    ``(E) Starting point.--Each State, using 
                data for the 2001-2002 school year, shall 
                establish the starting point for measuring, 
                under subparagraphs (G) and (H), the percentage 
                of students meeting or exceeding the State's 
                proficient level of academic achievement on the 
                State assessments under paragraph (3) and 
                pursuant to the timeline described in 
                subparagraph (F). The starting point shall be, 
                at a minimum, based on the higher of the 
                percentage of students at the proficient level 
                who are in--
                            ``(i) the State's lowest achieving 
                        group of students described in 
                        subparagraph (C)(v)(II); or
                            ``(ii) the school at the 20th 
                        percentile in the State, based on 
                        enrollment, among all schools ranked by 
                        the percentage of students at the 
                        proficient level.
                    ``(F) Timeline.--Each State shall establish 
                a timeline for adequate yearly progress. The 
                timeline shall ensure that not later than 12 
                years after the end of the 2001-2002 school 
                year, all students in each group described in 
                subparagraph (C)(v) will meet or exceed the 
                State's proficient level of academic 
                achievement on the State assessments under 
                paragraph (3).
                    ``(G) Measurable objectives.--Each State 
                shall establish statewide annual measurable 
                objectives, pursuant to subparagraph (C)(v), 
                for meeting the requirements of this paragraph, 
                and which--
                            ``(i) shall be set separately for 
                        the assessments of mathematics and 
                        reading or language arts under 
                        subsection (a)(3);
                            ``(ii) shall be the same for all 
                        schools and local educational agencies 
                        in the State;
                            ``(iii) shall identify a single 
                        minimum percentage of students who are 
                        required to meet or exceed the 
                        proficient level on the academic 
                        assessments that applies separately to 
                        each group of students described in 
                        subparagraph (C)(v);
                            ``(iv) shall ensure that all 
                        students will meet or exceed the 
                        State's proficient level of academic 
                        achievement on the State assessments 
                        within the State's timeline under 
                        subparagraph (F); and
                            ``(v) may be the same for more than 
                        1 year, subject to the requirements of 
                        subparagraph (H).
                    ``(H) Intermediate goals for annual yearly 
                progress.--Each State shall establish 
                intermediate goals for meeting the 
                requirements, including the measurable 
                objectives in subparagraph (G), of this 
                paragraph and that shall--
                            ``(i) increase in equal increments 
                        over the period covered by the State's 
                        timeline under subparagraph (F);
                            ``(ii) provide for the first 
                        increase to occur in not more than two 
                        years; and
                            ``(iii) provide for each following 
                        increase to occur in not more than 
                        three years.
                    ``(I) Annual improvement for schools.--Each 
                year, for a school to make adequate yearly 
                progress under this paragraph--
                            ``(i) each group of students 
                        described in subparagraph (C)(v) must 
                        meet or exceed the objectives set by 
                        the State under subparagraph (G), 
                        except that if any group described in 
                        subparagraph (C)(v) does not meet those 
                        objectives in any particular year, the 
                        school shall be considered to have made 
                        adequate yearly progress if the 
                        percentage of students in that group 
                        who did not meet or exceed the 
                        proficient level of academic 
                        achievement on the State assessments 
                        under paragraph (3) for that year 
                        decreased by 10 percent of that 
                        percentage from the preceding school 
                        year and that group made progress on 
                        one or more of the academic indicators 
                        described in subparagraph (C)(vi) or 
                        (vii); and
                            ``(ii) not less than 95 percent of 
                        each group of students described in 
                        subparagraph (C)(v) who are enrolled in 
                        the school are required to take the 
                        assessments, consistent with paragraph 
                        (3)(C)(xi) and with accommodations, 
                        guidelines, and alternative assessments 
                        provided in the same manner as those 
                        provided under section 612(a)(17)(A) of 
                        the Individuals with Disabilities 
                        Education Act and paragraph (3), on 
                        which adequate yearly progress is based 
                        (except that the 95 percent requirement 
                        described in this clause shall not 
                        apply in a case in which the number of 
                        students in a category is insufficient 
                        to yield statistically reliable 
                        information or the results would reveal 
                        personally identifiable information 
                        about an individual student).
                    ``(J) Uniform averaging procedure.--For the 
                purpose of determining whether schools are 
                making adequate yearly progress, the State may 
                establish a uniform procedure for averaging 
                data which includes one or more of the 
                following:
                            ``(i) The State may average data 
                        from the school year for which the 
                        determination is made with data from 
                        one or two school years immediately 
                        preceding that school year.
                            ``(ii) Until the assessments 
                        described in paragraph (3) are 
                        administered in such manner and time to 
                        allow for the implementation of the 
                        uniform procedure for averaging data 
                        described in clause (i), the State may 
                        use the academic assessments that were 
                        required under paragraph (3) as that 
                        paragraph was in effect on the day 
                        preceding the date of enactment of the 
                        No Child Left Behind Act of 2001, 
                        provided that nothing in this clause 
                        shall be construed to undermine or 
                        delay the determination of adequate 
                        yearly progress, the requirements of 
                        section 1116, or the implementation of 
                        assessments under this section.
                            ``(iii) The State may use data 
                        across grades in a school.
            ``(3) Academic assessments.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State, in consultation 
                with local educational agencies, has 
                implemented a set of high-quality, yearly 
                student academic assessments that include, at a 
                minimum, academic assessments in mathematics, 
                reading or language arts, and science that will 
                be used as the primary means of determining the 
                yearly performance of the State and of each 
                local educational agency and school in the 
                State in enabling all children to meet the 
                State's challenging student academic 
                achievement standards, except that no State 
                shall be required to meet the requirements of 
                this part relating to science assessments until 
                the beginning of the 2007-2008 school year.
                    ``(B) Use of assessments.--Each State may 
                incorporate the data from the assessments under 
                this paragraph into a State-developed 
                longitudinal data system that links student 
                test scores, length of enrollment, and 
                graduation records over time.
                    ``(C) Requirements.--Such assessments 
                shall--
                            ``(i) be the same academic 
                        assessments used to measure the 
                        achievement of all children;
                            ``(ii) be aligned with the State's 
                        challenging academic content and 
                        student academic achievement standards, 
                        and provide coherent information about 
                        student attainment of such standards;
                            ``(iii) be used for purposes for 
                        which such assessments are valid and 
                        reliable, and be consistent with 
                        relevant, nationally recognized 
                        professional and technical standards;
                            ``(iv) be used only if the State 
                        provides to the Secretary evidence from 
                        the test publisher or other relevant 
                        sources that the assessments used are 
                        of adequate technical quality for each 
                        purpose required under this Act and are 
                        consistent with the requirements of 
                        this section, and such evidence is made 
                        public by the Secretary upon request;
                            ``(v)(I) except as otherwise 
                        provided for grades 3 through 8 under 
                        clause vii, measure the proficiency of 
                        students in, at a minimum, mathematics 
                        and reading or language arts, and be 
                        administered not less than once 
                        during--
                                    ``(aa) grades 3 through 5;
                                    ``(bb) grades 6 through 9; 
                                and
                                    ``(cc) grades 10 through 
                                12;
                            ``(II) beginning not later than 
                        school year 2007-2008, measure the 
                        proficiency of all students in science 
                        and be administered not less than one 
                        time during--
                                    ``(aa) grades 3 through 5;
                                    ``(bb) grades 6 through 9; 
                                and
                                    ``(cc) grades 10 through 
                                12;
                            ``(vi) involve multiple up-to-date 
                        measures of student academic 
                        achievement, including measures that 
                        assess higher-order thinking skills and 
                        understanding;
                            ``(vii) beginning not later than 
                        school year 2005-2006, measure the 
                        achievement of students against the 
                        challenging State academic content and 
                        student academic achievement standards 
                        in each of grades 3 through 8 in, at a 
                        minimum, mathematics, and reading or 
                        language arts, except that the 
                        Secretary may provide the State 1 
                        additional year if the State 
                        demonstrates that exceptional or 
                        uncontrollable circumstances, such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State, prevented full 
                        implementation of the academic 
                        assessments by that deadline and that 
                        the State will complete implementation 
                        within the additional 1-year period;
                            ``(viii) at the discretion of the 
                        State, measure the proficiency of 
                        students in academic subjects not 
                        described in clauses (v), (vi), (vii) 
                        in which the State has adopted 
                        challenging academic content and 
                        academic achievement standards;
                            ``(ix) provide for--
                                    ``(I) the participation in 
                                such assessments of all 
                                students;
                                    ``(II) the reasonable 
                                adaptations and accommodations 
                                for students with disabilities 
                                (as defined under section 
                                602(3) of the Individuals with 
                                Disabilities Education Act) 
                                necessary to measure the 
                                academic achievement of such 
                                students relative to State 
                                academic content and State 
                                student academic achievement 
                                standards; and
                                    ``(III) the inclusion of 
                                limited English proficient 
                                students, who shall be assessed 
                                in a valid and reliable manner 
                                and provided reasonable 
                                accommodations on assessments 
                                administered to such students 
                                under this paragraph, 
                                including, to the extent 
                                practicable, assessments in the 
                                language and form most likely 
                                to yield accurate data on what 
                                such students know and can do 
                                in academic content areas, 
                                until such students have 
                                achieved English language 
                                proficiency as determined under 
                                paragraph (7);
                            ``(x) notwithstanding subclause 
                        (III), the academic assessment (using 
                        tests written in English) of reading or 
                        language arts of any student who has 
                        attended school in the United States 
                        (not including Puerto Rico) for 3 or 
                        more consecutive school years, except 
                        that if the local educational agency 
                        determines, on a case-by-case 
                        individual basis, that academic 
                        assessments in another language or form 
                        would likely yield more accurate and 
                        reliable information on what such 
                        student knows and can do, the local 
                        educational agency may make a 
                        determination to assess such student in 
                        the appropriate language other than 
                        English for a period that does not 
                        exceed 2 additional consecutive years, 
                        provided that such student has not yet 
                        reached a level of English language 
                        proficiency sufficient to yield valid 
                        and reliable information on what such 
                        student knows and can do on tests 
                        (written in English) of reading or 
                        language arts;
                            ``(xi) include students who have 
                        attended schools in a local educational 
                        agency for a full academic year but 
                        have not attended a single school for a 
                        full academic year, except that the 
                        performance of students who have 
                        attended more than 1 school in the 
                        local educational agency in any 
                        academic year shall be used only in 
                        determining the progress of the local 
                        educational agency;
                            ``(xii) produce individual student 
                        interpretive, descriptive, and 
                        diagnostic reports, consistent with 
                        clause (iii) that allow parents, 
                        teachers, and principals to understand 
                        and address the specific academic needs 
                        of students, and include information 
                        regarding achievement on academic 
                        assessments aligned with State academic 
                        achievement standards, and that are 
                        provided to parents, teachers, and 
                        principals, as soon as is practicably 
                        possible after the assessment is given, 
                        in an understandable and uniform 
                        format, and to the extent practicable, 
                        in a language that parents can 
                        understand;
                            ``(xiii) enable results to be 
                        disaggregated within each State, local 
                        educational agency, and school by 
                        gender, by each major racial and ethnic 
                        group, by English proficiency status, 
                        by migrant status, by students with 
                        disabilities as compared to nondisabled 
                        students, and by economically 
                        disadvantaged students as compared to 
                        students who are not economically 
                        disadvantaged, except that, in the case 
                        of a local educational agency or a 
                        school, such disaggregation shall not 
                        be required in a case in which the 
                        number of students in a category is 
                        insufficient to yield statistically 
                        reliable information or the results 
                        would reveal personally identifiable 
                        information about an individual 
                        student;
                            ``(xiv) be consistent with widely 
                        accepted professional testing 
                        standards, objectively measure academic 
                        achievement, knowledge, and skills, and 
                        be tests that do not evaluate or assess 
                        personal or family beliefs and 
                        attitudes, or publicly disclose 
                        personally identifiable information; 
                        and
                            ``(xv) enable itemized score 
                        analyses to be produced and reported, 
                        consistent with clause (iii), to local 
                        educational agencies and schools, so 
                        that parents, teachers, principals, and 
                        administrators can interpret and 
                        address the specific academic needs of 
                        students as indicated by the students' 
                        achievement on assessment items.
                    ``(D) Deferral.--A State may defer the 
                commencement, or suspend the administration, 
                but not cease the development, of the 
                assessments described in this paragraph, that 
                were not required prior to the date of 
                enactment of the No Child Left Behind Act of 
                2001, for 1 year for each year for which the 
                amount appropriated for grants under section 
                6204(c) is less than--
                            ``(i) $370,000,000 for fiscal year 
                        2002;
                            ``(ii) $380,000,000 for fiscal year 
                        2003;
                            ``(iii) $390,000,000 for fiscal 
                        year 2004; and
                            ``(iv) $400,000,000 for fiscal 
                        years 2005 through 2007.
            ``(4) Special rule.--Academic assessment measures 
        in addition to those in paragraph (3) that do not meet 
        the requirements of such paragraph may be included in 
        the assessment under paragraph (3) as additional 
        measures, but may not be used in lieu of the academic 
        assessments required under paragraph (3). Such 
        additional assessment measures may not be used to 
        reduce the number of or change, the schools that would 
        otherwise be subject to school improvement, corrective 
        action, or restructuring under section 1116 if such 
        additional indicators were not used, but may be used to 
        identify additional schools for school improvement or 
        in need of corrective action or restructuring except as 
        provided in paragraph (2)(i)(I).
            ``(5) State authority.--If a State educational 
        agency provides evidence, which is satisfactory to the 
        Secretary, that neither the State educational agency 
        nor any other State government official, agency, or 
        entity has sufficient authority, under State law, to 
        adopt curriculum content and student academic 
        achievement standards, and academic assessments aligned 
        with such academic standards, which will be applicable 
        to all students enrolled in the State's public 
        elementary schools and secondary schools, then the 
        State educational agency may meet the requirements of 
        this subsection by--
                    ``(A) adopting academic standards and 
                academic assessments that meet the requirements 
                of this subsection, on a statewide basis, and 
                limiting their applicability to students served 
                under this part; or
                    ``(B) adopting and implementing policies 
                that ensure that each local educational agency 
                in the State that receives grants under this 
                part will adopt curriculum content and student 
                academic achievement standards, and academic 
                assessments aligned with such standards, 
                which--
                            ``(i) meet all of the criteria in 
                        this subsection and any regulations 
                        regarding such standards and 
                        assessments that the Secretary may 
                        publish; and
                            ``(ii) are applicable to all 
                        students served by each such local 
                        educational agency.
            ``(6) Language assessments.--Each State plan shall 
        identify the languages other than English that are 
        present in the participating student population and 
        indicate the languages for which yearly student 
        academic assessments are not available and are needed. 
        The State shall make every effort to develop such 
        assessments and may request assistance from the 
        Secretary if linguistically accessible academic 
        assessment measures are needed. Upon request, the 
        Secretary shall assist with the identification of 
        appropriate academic assessment measures in the needed 
        languages, but shall not mandate a specific academic 
        assessment or mode of instruction.
            ``(7) Academic assessments of english language 
        proficiency.--Each State plan shall demonstrate that 
        local educational agencies in the State will, beginning 
        not later than school year 2002-2003, provide for an 
        annual assessment of English proficiency (measuring 
        students' oral language, reading, and writing skills in 
        English) of all students with limited English 
        proficiency in the schools served by the State, except 
        that the Secretary may provide the State 1 additional 
        year if the State demonstrates that exceptional or 
        uncontrollable circumstances, such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State, prevented full 
        implementation of this paragraph by that deadline and 
        that the State will complete implementation within the 
        additional 1-year period.
            ``(8) Requirement.--Each State plan shall 
        describe--
                    ``(A) how the State educational agency will 
                assist each local educational agency and school 
                affected by the State plan to develop the 
                capacity to comply with each of the 
                requirements of sections 1112(c)(1)(D), 
                1114(b), and 1115(c) that is applicable to such 
                agency or school;
                    ``(B) how the State educational agency will 
                assist each local educational agency and school 
                affected by the State plan to provide 
                additional educational assistance to individual 
                students assessed as needing help to achieve 
                the State's challenging academic achievement 
                standards;
                    ``(C) the specific steps the State 
                educational agency will take to ensure that 
                both schoolwide programs and targeted 
                assistance schools provide instruction by 
                highly qualified instructional staff as 
                required by sections 1114(b)(1)(C) and 
                1115(c)(1)(E), including steps that the State 
                educational agency will take to ensure that 
                poor and minority children are not taught at 
                higher rates than other children by 
                inexperienced, unqualified, or out-of-field 
                teachers, and the measures that the State 
                educational agency will use to evaluate and 
                publicly report the progress of the State 
                educational agency with respect to such steps;
                    ``(D) an assurance that the State 
                educational agency will assist local 
                educational agencies in developing or 
                identifying high-quality effective curricula 
                aligned with State academic achievement 
                standards and how the State educational agency 
                will disseminate such curricula to each local 
                educational agency and school within the State; 
                and
                    ``(E) such other factors the State 
                determines appropriate to provide students an 
                opportunity to achieve the knowledge and skills 
                described in the challenging academic content 
                standards adopted by the State.
            ``(9) Factors affecting student achievement.--Each 
        State plan shall include an assurance that the State 
        will coordinate and collaborate, to the extent feasible 
        and necessary as determined by the State, with agencies 
        providing services to children, youth, and families, 
        with respect to local educational agencies within the 
        State that are identified under section 1116 and that 
        request assistance with addressing major factors that 
        have significantly affected the academic achievement of 
        students in the local educational agency or schools 
        served by such agency.
            ``(10) Use of academic assessment results to 
        improve student academic achievement.--Each State plan 
        shall describe how the State will ensure that the 
        results of the State assessments described in paragraph 
        (3)--
                    ``(A) will be promptly provided to local 
                educational agencies, schools, and teachers in 
                a manner that is clear and easy to understand, 
                but not later than before the beginning of the 
                next school year; and
                    ``(B) be used by those local educational 
                agencies, schools, and teachers to improve the 
                educational achievement of individual students.
    ``(c) Other Provisions To Support Teaching and Learning.--
Each State plan shall contain assurances that--
            ``(1) the State will meet the requirements of 
        subsection (h)(1) and, beginning with the 2002-2003 
        school year, will produce the annual State report cards 
        described in such subsection, except that the Secretary 
        may provide the State 1 additional year if the State 
        demonstrates that exceptional or uncontrollable 
        circumstances, such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State, prevented full implementation 
        of this paragraph by that deadline and that the State 
        will complete implementation within the additional 1-
        year period;
            ``(2) the State will, beginning in school year 
        2002-2003, participate in biennial State academic 
        assessments of 4th and 8th grade reading and 
        mathematics under the National Assessment of 
        Educational Progress carried out under section 
        411(b)(2) of the National Education Statistics Act of 
        1994 if the Secretary pays the costs of administering 
        such assessments;
            ``(3) the State educational agency, in consultation 
        with the Governor, will include, as a component of the 
        State plan, a plan to carry out the responsibilities of 
        the State under sections 1116 and 1117, including 
        carrying out the State educational agency's statewide 
        system of technical assistance and support for local 
        educational agencies;
            ``(4) the State educational agency will work with 
        other agencies, including educational service agencies 
        or other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools, including technical assistance in providing 
        professional development under section 1119, technical 
        assistance under section 1117, and technical assistance 
        relating to parental involvement under section 1118;
            ``(5)(A) where educational service agencies exist, 
        the State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
            ``(B) where educational service agencies do not 
        exist, the State educational agency will consider 
        providing professional development and technical 
        assistance through other cooperative agreements such as 
        through a consortium of local educational agencies;
            ``(6) the State educational agency will notify 
        local educational agencies and the public of the 
        content and student academic achievement standards and 
        academic assessments developed under this section, and 
        of the authority to operate schoolwide programs, and 
        will fulfill the State educational agency's 
        responsibilities regarding local educational agency 
        improvement and school improvement under section 1116, 
        including such corrective actions as are necessary;
            ``(7) the State educational agency will provide the 
        least restrictive and burdensome regulations for local 
        educational agencies and individual schools 
        participating in a program assisted under this part;
            ``(8) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at 
        all, hinder the ability of States to hold local 
        educational agencies and schools accountable for 
        student academic achievement;
            ``(9) the State educational agency will encourage 
        schools to consolidate funds from other Federal, State, 
        and local sources for schoolwide reform in schoolwide 
        programs under section 1114;
            ``(10) the State educational agency will modify or 
        eliminate State fiscal and accounting barriers so that 
        schools can easily consolidate funds from other 
        Federal, State, and local sources for schoolwide 
        programs under section 1114;
            ``(11) the State educational agency has involved 
        the committee of practitioners established under 
        section 1903(b) in developing the plan and monitoring 
        its implementation;
            ``(12) the State educational agency will inform 
        local educational agencies in the State of the local 
        educational agency's authority to transfer funds under 
        title VI, to obtain waivers under part D of title IX, 
        and, if the State is an Ed-Flex Partnership State, to 
        obtain waivers under the Education Flexibility 
        Partnership Act of 1999;
            ``(13) the State will coordinate activities funded 
        under this part with other Federal activities as 
        appropriate; and
            ``(14) the State educational agency will encourage 
        local educational agencies and individual schools 
        participating in a program assisted under this part to 
        offer family literacy services (using funds under this 
        part), if the agency or school determines that a 
        substantial number of students served under this part 
        by the agency or school have parents who do not have a 
        secondary school diploma or its recognized equivalent 
        or who have low levels of literacy.
    ``(d) Parental Involvement.--Each State plan shall describe 
how the State will support the collection and dissemination to 
local educational agencies and schools of effective parental 
involvement practices. Such practices shall--
            ``(1) be based on the most current research that 
        meets the highest professional and technical standards, 
        on effective parental involvement that fosters 
        achievement to high standards for all children; and
            ``(2) be geared toward lowering barriers to greater 
        participation by parents in school planning, review, 
        and improvement experienced.
    ``(e) Peer Review and Secretarial Approval.--
            ``(1) Secretarial duties.--The Secretary shall--
                    ``(A) establish a peer-review process to 
                assist in the review of State plans;
                    ``(B) appoint individuals to the peer-
                review process who are representative of 
                parents, teachers, State educational agencies, 
                and local educational agencies, and who are 
                familiar with educational standards, 
                assessments, accountability, the needs of low-
                performing schools, and other educational needs 
                of students;
                    ``(C) approve a State plan within 120 days 
                of its submission unless the Secretary 
                determines that the plan does not meet the 
                requirements of this section;
                    ``(D) if the Secretary determines that the 
                State plan does not meet the requirements of 
                subsection (a), (b), or (c), immediately notify 
                the State of such determination and the reasons 
                for such determination;
                    ``(E) not decline to approve a State's plan 
                before--
                            ``(i) offering the State an 
                        opportunity to revise its plan;
                            ``(ii) providing technical 
                        assistance in order to assist the State 
                        to meet the requirements of subsections 
                        (a), (b), and (c); and
                            ``(iii) providing a hearing; and
                    ``(F) have the authority to disapprove a 
                State plan for not meeting the requirements of 
                this part, but shall not have the authority to 
                require a State, as a condition of approval of 
                the State plan, to include in, or delete from, 
                such plan one or more specific elements of the 
                State's academic content standards or to use 
                specific academic assessment instruments or 
                items.
            ``(2) State revisions.--A State shall revise its 
        State plan if necessary to satisfy the requirements of 
        this section.
    ``(f) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of 
                the State's participation under this part; and
                    ``(B) be periodically reviewed and revised 
                by the State, as necessary, to reflect changes 
                in the State's strategies and programs under 
                this part.
            ``(2) Additional information.--If the State makes 
        significant changes to its State plan, such as the 
        adoption of new State academic content standards and 
        State student achievement standards, new academic 
        assessments, or a new definition of adequate yearly 
        progress, the State shall submit such information to 
        the Secretary.
    ``(g) Penalties.--
            ``(1) Failure to meet deadlines enacted in 1994.--
                    ``(A) In general.--If a State fails to meet 
                the deadlines established by the Improving 
                America's Schools Act of 1994 (or under any 
                waiver granted by the Secretary or under any 
                compliance agreement with the Secretary) for 
                demonstrating that the State has in place 
                challenging academic content standards and 
                student achievement standards, and a system for 
                measuring and monitoring adequate yearly 
                progress, the Secretary shall withhold 25 
                percent of the funds that would otherwise be 
                available to the State for State administration 
                and activities under this part in each year 
                until the Secretary determines that the State 
                meets those requirements.
                    ``(B) No extension.--Notwithstanding any 
                other provision of law, 90 days after the date 
                of enactment of the No Child Left Behind Act of 
                2001 the Secretary shall not grant any 
                additional waivers of, or enter into any 
                additional compliance agreements to extend, the 
                deadlines described in subparagraph (A) for any 
                State.
            ``(2) Failure to meet requirements enacted in 
        2001.--If a State fails to meet any of the requirements 
        of this section, other than the requirements described 
        in paragraph (1), then the Secretary may withhold funds 
        for State administration under this part until the 
        Secretary determines that the State has fulfilled those 
        requirements.
    ``(h) Reports.--
            ``(1) Annual state report card.--
                    ``(A) In general.--Not later than the 
                beginning of the 2002-2003 school year, unless 
                the State has received a 1-year extension 
                pursuant to subsection (c)(1), a State that 
                receives assistance under this part shall 
                prepare and disseminate an annual State report 
                card.
                    ``(B) Implementation.--The State report 
                card shall be--
                            ``(i) concise; and
                            ``(ii) presented in an 
                        understandable and uniform format and, 
                        to the extent practicable, provided in 
                        a language that the parents can 
                        understand.
                    ``(C) Required information.--The State 
                shall include in its annual State report card--
                            ``(i) information, in the 
                        aggregate, on student achievement at 
                        each proficiency level on the State 
                        academic assessments described in 
                        subsection (b)(3) (disaggregated by 
                        race, ethnicity, gender, disability 
                        status, migrant status, English 
                        proficiency, and status as economically 
                        disadvantaged, except that such 
                        disaggregation shall not be required in 
                        a case in which the number of students 
                        in a category is insufficient to yield 
                        statistically reliable information or 
                        the results would reveal personally 
                        identifiable information about an 
                        individual student);
                            ``(ii) information that provides a 
                        comparison between the actual 
                        achievement levels of each group of 
                        students described in subsection 
                        (b)(2)(C)(v) and the State's annual 
                        measurable objectives for each such 
                        group of students on each of the 
                        academic assessments required under 
                        this part;
                            ``(iii) the percentage of students 
                        not tested (disaggregated by the same 
                        categories and subject to the same 
                        exception described in clause (i));
                            ``(iv) the most recent 2-year trend 
                        in student achievement in each subject 
                        area, and for each grade level, for 
                        which assessments under this section 
                        are required;
                            ``(v) aggregate information on any 
                        other indicators used by the State to 
                        determine the adequate yearly progress 
                        of students in achieving State academic 
                        achievement standards;
                            ``(vi) graduation rates for 
                        secondary school students consistent 
                        with subsection (b)(2)(B)(vii);
                            ``(vii) information on the 
                        performance of local educational 
                        agencies in the State regarding making 
                        adequate yearly progress, including the 
                        number and names of each school 
                        identified for school improvement under 
                        section 1116; and
                            ``(viii) the professional 
                        qualifications of teachers in the 
                        State, the percentage of such teachers 
                        teaching with emergency or provisional 
                        credentials, and the percentage of 
                        classes in the State not taught by 
                        highly qualified teachers, in the 
                        aggregate and disaggregated by high-
                        poverty compared to low-poverty schools 
                        which, for the purpose of this clause, 
                        means schools in the top quartile of 
                        poverty and the bottom quartile of 
                        poverty in the State.
                    ``(D) Optional information.--The State may 
                include in its annual State report card such 
                other information as the State believes will 
                best provide parents, students, and other 
                members of the public with information 
                regarding the progress of each of the State's 
                public elementary schools and public secondary 
                schools. Such information may include 
                information regarding--
                            ``(i) school attendance rates;
                            ``(ii) average class size in each 
                        grade;
                            ``(iii) academic achievement and 
                        gains in English proficiency of limited 
                        English proficient students;
                            ``(iv) the incidence of school 
                        violence, drug abuse, alcohol abuse, 
                        student suspensions, and student 
                        expulsions;
                            ``(v) the extent and type of 
                        parental involvement in the schools;
                            ``(vi) the percentage of students 
                        completing advanced placement courses, 
                        and the rate of passing of advanced 
                        placement tests; and
                            ``(vii) a clear and concise 
                        description of the State's 
                        accountability system, including a 
                        description of the criteria by which 
                        the State evaluates school performance, 
                        and the criteria that the State has 
                        established, consistent with subsection 
                        (b)(2), to determine the status of 
                        schools regarding school improvement, 
                        corrective action, and restructuring.
            ``(2) Annual local educational agency report 
        cards.--
                    ``(A) Report cards.--
                            ``(i) In general.--Not later than 
                        the beginning of the 2002-2003 school 
                        year, a local educational agency that 
                        receives assistance under this part 
                        shall prepare and disseminate an annual 
                        local educational agency report card, 
                        except that the State may provide the 
                        local educational agency 1 additional 
                        year if the local educational agency 
                        demonstrates that exceptional or 
                        uncontrollable circumstances, such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the local educational 
                        agency, prevented full implementation 
                        of this paragraph by that deadline and 
                        that the local educational agency will 
                        complete implementation within the 
                        additional 1-year period.
                            ``(ii) Special rule.--If a State 
                        has received an extension pursuant to 
                        subsection (c)(1), then a local 
                        educational agency within that State 
                        shall not be required to include the 
                        information required under paragraph 
                        (1)(C) in such report card during such 
                        extension.
                    ``(B) Minimum requirements.--The State 
                shall ensure that each local educational agency 
                collects appropriate data and includes in the 
                local educational agency's annual report the 
                information described in paragraph (1)(C) as 
                applied to the local educational agency and 
                each school served by the local educational 
                agency, and--
                            ``(i) in the case of a local 
                        educational agency--
                                    ``(I) the number and 
                                percentage of schools 
                                identified for school 
                                improvement under section 
                                1116(c) and how long the 
                                schools have been so 
                                identified; and
                                    ``(II) information that 
                                shows how students served by 
                                the local educational agency 
                                achieved on the statewide 
                                academic assessment compared to 
                                students in the State as a 
                                whole; and
                            ``(ii) in the case of a school--
                                    ``(I) whether the school 
                                has been identified for school 
                                improvement; and
                                    ``(II) information that 
                                shows how the school's students 
                                achievement on the statewide 
                                academic assessments and other 
                                indicators of adequate yearly 
                                progress compared to students 
                                in the local educational agency 
                                and the State as a whole.
                    ``(C) Other information.--A local 
                educational agency may include in its annual 
                local educational agency report card any other 
                appropriate information, whether or not such 
                information is included in the annual State 
                report card.
                    ``(D) Data.--A local educational agency or 
                school shall only include in its annual local 
                educational agency report card data that are 
                sufficient to yield statistically reliable 
                information, as determined by the State, and 
                that do not reveal personally identifiable 
                information about an individual student.
                    ``(E) Public dissemination.--The local 
                educational agency shall, not later than the 
                beginning of the 2002-2003 school year, unless 
                the local educational agency has received a 1-
                year extension pursuant to subparagraph (A), 
                publicly disseminate the information described 
                in this paragraph to all schools in the school 
                district served by the local educational agency 
                and to all parents of students attending those 
                schools in an understandable and uniform format 
                and, to the extent practicable, provided in a 
                language that the parents can understand, and 
                make the information widely available through 
                public means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may 
                include the information under this section as 
                part of such report.
            ``(3) Preexisting report cards.--A State 
        educational agency or local educational agency that was 
        providing public report cards on the performance of 
        students, schools, local educational agencies, or the 
        State prior to the enactment of the No Child Left 
        Behind Act of 2001 may use those report cards for the 
        purpose of this subsection, so long as any such report 
        card is modified, as may be needed, to contain the 
        information required by this subsection.
            ``(4) Annual state report to the secretary.--Each 
        State receiving assistance under this part shall report 
        annually to the Secretary, and make widely available 
        within the State--
                    ``(A) beginning with school year 2002-2003, 
                information on the State's progress in 
                developing and implementing the academic 
                assessments described in subsection (b)(3);
                    ``(B) beginning not later than school year 
                2002-2003, information on the achievement of 
                students on the academic assessments required 
                by subsection (b)(3), including the 
                disaggregated results for the categories of 
                students identified in subsection (b)(2)(C)(v);
                    ``(C) in any year before the State begins 
                to provide the information described in 
                subparagraph (B), information on the results of 
                student academic assessments (including 
                disaggregated results) required under this 
                section;
                    ``(D) beginning not later than school year 
                2002-2003, unless the State has received an 
                extension pursuant to subsection (c)(1), 
                information on the acquisition of English 
                proficiency by children with limited English 
                proficiency;
                    ``(E) the number and names of each school 
                identified for school improvement under section 
                1116(c), the reason why each school was so 
                identified, and the measures taken to address 
                the achievement problems of such schools;
                    ``(F) the number of students and schools 
                that participated in public school choice and 
                supplemental service programs and activities 
                under this title; and
                    ``(G) beginning not later than the 2002-
                2003 school year, information on the quality of 
                teachers and the percentage of classes being 
                taught by highly qualified teachers in the 
                State, local educational agency, and school.
            ``(5) Report to congress.--The Secretary shall 
        transmit annually to the Committee on Education and the 
        Workforce of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of 
        the Senate a report that provides national and State-
        level data on the information collected under paragraph 
        (4).
            ``(6) Parents right-to-know.--
                    ``(A) Qualifications.--At the beginning of 
                each school year, a local educational agency 
                that receives funds under this part shall 
                notify the parents of each student attending 
                any school receiving funds under this part that 
                the parents may request, and the agency will 
                provide the parents on request (and in a timely 
                manner), information regarding the professional 
                qualifications of the student's classroom 
                teachers, including, at a minimum, the 
                following:
                            ``(i) Whether the teacher has met 
                        State qualification and licensing 
                        criteria for the grade levels and 
                        subject areas in which the teacher 
                        provides instruction.
                            ``(ii) Whether the teacher is 
                        teaching under emergency or other 
                        provisional status through which State 
                        qualification or licensing criteria 
                        have been waived.
                            ``(iii) The baccalaureate degree 
                        major of the teacher and any other 
                        graduate certification or degree held 
                        by the teacher, and the field of 
                        discipline of the certification or 
                        degree.
                            ``(iv) Whether the child is 
                        provided services by paraprofessionals 
                        and, if so, their qualifications.
                    ``(B) Additional information.--In addition 
                to the information that parents may request 
                under subparagraph (A), a school that receives 
                funds under this part shall provide to each 
                individual parent--
                            ``(i) information on the level of 
                        achievement of the parent's child in 
                        each of the State academic assessments 
                        as required under this part; and
                            ``(ii) timely notice that the 
                        parent's child has been assigned, or 
                        has been taught for 4 or more 
                        consecutive weeks by, a teacher who is 
                        not highly qualified.
                    ``(C) Format.--The notice and information 
                provided to parents under this paragraph shall 
                be in an understandable and uniform format and, 
                to the extent practicable, provided in a 
                language that the parents can understand.
    ``(i) Privacy.--Information collected under this section 
shall be collected and disseminated in a manner that protects 
the privacy of individuals.
    ``(j) Technical Assistance.--The Secretary shall provide a 
State educational agency, at the State educational agency's 
request, technical assistance in meeting the requirements of 
this section, including the provision of advice by experts in 
the development of high-quality academic assessments, the 
setting of State standards, the development of measures of 
adequate yearly progress that are valid and reliable, and other 
relevant areas.
    ``(k) Voluntary Partnerships.--A State may enter into a 
voluntary partnership with another State to develop and 
implement the academic assessments and standards required under 
this section.
    ``(l) Construction.--Nothing in this part shall be 
construed to prescribe the use of the academic assessments 
described in this part for student promotion or graduation 
purposes.
    ``(m) Special Rule With Respect to Bureau-Funded Schools.--
In determining the assessments to be used by each operated or 
funded by BIA school receiving funds under this part, the 
following shall apply:
            ``(1) Each such school that is accredited by the 
        State in which it is operating shall use the 
        assessments the State has developed and implemented to 
        meet the requirements of this section, or such other 
        appropriate assessment as approved by the Secretary of 
        the Interior.
            ``(2) Each such school that is accredited by a 
        regional accrediting organization shall adopt an 
        appropriate assessment, in consultation with and with 
        the approval of, the Secretary of the Interior and 
        consistent with assessments adopted by other schools in 
        the same State or region, that meets the requirements 
        of this section.
            ``(3) Each such school that is accredited by a 
        tribal accrediting agency or tribal division of 
        education shall use an assessment developed by such 
        agency or division, except that the Secretary of the 
        Interior shall ensure that such assessment meets the 
        requirements of this section.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

    ``(a) Plans Required.--
            ``(1) Subgrants.--A local educational agency may 
        receive a subgrant under this part for any fiscal year 
        only if such agency has on file with the State 
        educational agency a plan, approved by the State 
        educational agency, that is coordinated with other 
        programs under this Act, the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        McKinney-Vento Homeless Assistance Act, and other Acts, 
        as appropriate.
            ``(2) Consolidated application.--The plan may be 
        submitted as part of a consolidated application under 
        section 9305.
    ``(b) Plan Provisions.--
            ``(1) In general.--In order to help low-achieving 
        children meet challenging achievement academic 
        standards, each local educational agency plan shall 
        include--
                    ``(A) a description of high-quality student 
                academic assessments, if any, that are in 
                addition to the academic assessments described 
                in the State plan under section 1111(b)(3), 
                that the local educational agency and schools 
                served under this part will use--
                            ``(i) to determine the success of 
                        children served under this part in 
                        meeting the State student academic 
                        achievement standards, and to provide 
                        information to teachers, parents, and 
                        students on the progress being made 
                        toward meeting the State student 
                        academic achievement standards 
                        described in section 1111(b)(1)(D)(ii);
                            ``(ii) to assist in diagnosis, 
                        teaching, and learning in the classroom 
                        in ways that best enable low-achieving 
                        children served under this part to meet 
                        State student achievement academic 
                        standards and do well in the local 
                        curriculum;
                            ``(iii) to determine what revisions 
                        are needed to projects under this part 
                        so that such children meet the State 
                        student academic achievement standards; 
                        and
                            ``(iv) to identify effectively 
                        students who may be at risk for reading 
                        failure or who are having difficulty 
                        reading, through the use of screening, 
                        diagnostic, and classroom-based 
                        instructional reading assessments, as 
                        defined under section 1208;
                    ``(B) at the local educational agency's 
                discretion, a description of any other 
                indicators that will be used in addition to the 
                academic indicators described in section 1111 
                for the uses described in such section;
                    ``(C) a description of how the local 
                educational agency will provide additional 
                educational assistance to individual students 
                assessed as needing help in meeting the State's 
                challenging student academic achievement 
                standards;
                    ``(D) a description of the strategy the 
                local educational agency will use to coordinate 
                programs under this part with programs under 
                title II to provide professional development 
                for teachers and principals, and, if 
                appropriate, pupil services personnel, 
                administrators, parents and other staff, 
                including local educational agency level staff 
                in accordance with sections 1118 and 1119;
                    ``(E) a description of how the local 
                educational agency will coordinate and 
                integrate services provided under this part 
                with other educational services at the local 
                educational agency or individual school level, 
                such as--
                            ``(i) Even Start, Head Start, 
                        Reading First, Early Reading First, and 
                        other preschool programs, including 
                        plans for the transition of 
                        participants in such programs to local 
                        elementary school programs; and
                            ``(ii) services for children with 
                        limited English proficiency, children 
                        with disabilities, migratory children, 
                        neglected or delinquent youth, Indian 
                        children served under part A of title 
                        VII, homeless children, and immigrant 
                        children in order to increase program 
                        effectiveness, eliminate duplication, 
                        and reduce fragmentation of the 
                        instructional program;
                    ``(F) an assurance that the local 
                educational agency will participate, if 
                selected, in the State National Assessment of 
                Educational Progress in 4th and 8th grade 
                reading and mathematics carried out under 
                section 411(b)(2) of the National Education 
                Statistics Act of 1994;
                    ``(G) a description of the poverty criteria 
                that will be used to select school attendance 
                areas under section 1113;
                    ``(H) a description of how teachers, in 
                consultation with parents, administrators, and 
                pupil services personnel, in targeted 
                assistance schools under section 1115, will 
                identify the eligible children most in need of 
                services under this part;
                    ``(I) a general description of the nature 
                of the programs to be conducted by such 
                agency's schools under sections 1114 and 1115 
                and, where appropriate, educational services 
                outside such schools for children living in 
                local institutions for neglected or delinquent 
                children, and for neglected and delinquent 
                children in community day school programs;
                    ``(J) a description of how the local 
                educational agency will ensure that migratory 
                children and formerly migratory children who 
                are eligible to receive services under this 
                part are selected to receive such services on 
                the same basis as other children who are 
                selected to receive services under this part;
                    ``(K) if appropriate, a description of how 
                the local educational agency will use funds 
                under this part to support preschool programs 
                for children, particularly children 
                participating in Early Reading First, or in a 
                Head Start or Even Start program, which 
                services may be provided directly by the local 
                educational agency or through a subcontract 
                with the local Head Start agency designated by 
                the Secretary of Health and Human Services 
                under section 641 of the Head Start Act, or an 
                agency operating an Even Start program, an 
                Early Reading First program, or another 
                comparable public early childhood development 
                program;
                    ``(L) a description of the actions the 
                local educational agency will take to assist 
                its low-achieving schools identified under 
                section 1116 as in need of improvement;
                    ``(M) a description of the actions the 
                local educational agency will take to implement 
                public school choice and supplemental services, 
                consistent with the requirements of section 
                1116;
                    ``(N) a description of how the local 
                educational agency will meet the requirements 
                of section 1119;
                    ``(O) a description of the services the 
                local educational agency will provide homeless 
                children, including services provided with 
                funds reserved under section 1113(c)(3)(A);
                    ``(P) a description of the strategy the 
                local educational agency will use to implement 
                effective parental involvement under section 
                1118; and
                    ``(Q) where appropriate, a description of 
                how the local educational agency will use funds 
                under this part to support after school, 
                (including before school and summer school) and 
                school-year extension programs).
            ``(2) Exception.--The academic assessments and 
        indicators described in subparagraphs (A) and (B) of 
        paragraph (1) shall not be used--
                    ``(A) in lieu of the academic assessments 
                required under section 1111(b)(3) and other 
                State academic indicators under section 
                1111(b)(2); or
                    ``(B) to reduce the number of, or change 
                which, schools would otherwise be subject to 
                school improvement, corrective action, or 
                restructuring under section 1116, if such 
                additional assessments or indicators described 
                in such subparagraphs were not used, but such 
                assessments and indicators may be used to 
                identify additional schools for school 
                improvement or in need of corrective action or 
                restructuring.
    ``(c) Assurances.--
            ``(1) In general.--Each local educational agency 
        plan shall provide assurances that the local 
        educational agency will--
                    ``(A) inform eligible schools and parents 
                of schoolwide program authority and the ability 
                of such schools to consolidate funds from 
                Federal, State, and local sources;
                    ``(B) provide technical assistance and 
                support to schoolwide programs;
                    ``(C) work in consultation with schools as 
                the schools develop the schools' plans pursuant 
                to section 1114 and assist schools as the 
                schools implement such plans or undertake 
                activities pursuant to section 1115 so that 
                each school can make adequate yearly progress 
                toward meeting the State student academic 
                achievement standards;
                    ``(D) fulfill such agency's school 
                improvement responsibilities under section 
                1116, including taking actions under paragraphs 
                (7) and (8) of section 1116(b);
                    ``(E) provide services to eligible children 
                attending private elementary schools and 
                secondary schools in accordance with section 
                1120, and timely and meaningful consultation 
                with private school officials regarding such 
                services;
                    ``(F) take into account the experience of 
                model programs for the educationally 
                disadvantaged, and the findings of relevant 
                scientifically based research indicating that 
                services may be most effective if focused on 
                students in the earliest grades at schools that 
                receive funds under this part;
                    ``(G) in the case of a local educational 
                agency that chooses to use funds under this 
                part to provide early childhood development 
                services to low-income children below the age 
                of compulsory school attendance, ensure that 
                such services comply with the performance 
                standards established under section 641A(a) of 
                the Head Start Act;
                    ``(H) work in consultation with schools as 
                the schools develop and implement their plans 
                or activities under sections 1118 and 1119;
                    ``(I) comply with the requirements of 
                section 1119 regarding the qualifications of 
                teachers and paraprofessionals and professional 
                development;
                    ``(J) inform eligible schools of the local 
                educational agency's authority to obtain 
                waivers on the school's behalf under title IX 
                and, if the State is an Ed-Flex Partnership 
                State, to obtain waivers under the Education 
                Flexibility Partnership Act of 1999;
                    ``(K) coordinate and collaborate, to the 
                extent feasible and necessary as determined by 
                the local educational agency, with the State 
                educational agency and other agencies providing 
                services to children, youth, and families with 
                respect to a school in school improvement, 
                corrective action, or restructuring under 
                section 1116 if such a school requests 
                assistance from the local educational agency in 
                addressing major factors that have 
                significantly affected student achievement at 
                the school;
                    ``(L) ensure, through incentives for 
                voluntary transfers, the provision of 
                professional development, recruitment programs, 
                or other effective strategies, that low-income 
                students and minority students are not taught 
                at higher rates than other students by 
                unqualified, out-of-field, or inexperienced 
                teachers;
                    ``(M) use the results of the student 
                academic assessments required under section 
                1111(b)(3), and other measures or indicators 
                available to the agency, to review annually the 
                progress of each school served by the agency 
                and receiving funds under this part to 
                determine whether all of the schools are making 
                the progress necessary to ensure that all 
                students will meet the State's proficient level 
                of achievement on the State academic 
                assessments described in section 1111(b)(3) 
                within 12 years from the baseline year 
                described in section 1111(b)(2)(E)(ii);
                    ``(N) ensure that the results from the 
                academic assessments required under section 
                1111(b)(3) will be provided to parents and 
                teachers as soon as is practicably possible 
                after the test is taken, in an understandable 
                and uniform format and, to the extent 
                practicable, provided in a language that the 
                parents can understand; and
                    ``(O) assist each school served by the 
                agency and assisted under this part in 
                developing or identifying examples of high-
                quality, effective curricula consistent with 
                section 1111(b)(8)(D).
            ``(2) Special rule.--In carrying out subparagraph 
        (G) of paragraph (1), the Secretary--
                    ``(A) shall consult with the Secretary of 
                Health and Human Services and shall establish 
                procedures (taking into consideration existing 
                State and local laws, and local teacher 
                contracts) to assist local educational agencies 
                to comply with such subparagraph; and
                    ``(B) shall disseminate to local 
                educational agencies the Head Start performance 
                standards as in effect under section 641A(a) of 
                the Head Start Act, and such agencies affected 
                by such subparagraph shall plan for the 
                implementation of such subparagraph (taking 
                into consideration existing State and local 
                laws, and local teacher contracts), including 
                pursuing the availability of other Federal, 
                State, and local funding sources to assist in 
                compliance with such subparagraph.
            ``(3) Inapplicability.--Paragraph (1)(G) of this 
        subsection shall not apply to preschool programs using 
        the Even Start model or to Even Start programs that are 
        expanded through the use of funds under this part.
    ``(d) Plan Development and Duration.--
            ``(1) Consultation.--Each local educational agency 
        plan shall be developed in consultation with teachers, 
        principals, administrators (including administrators of 
        programs described in other parts of this title), and 
        other appropriate school personnel, and with parents of 
        children in schools served under this part.
            ``(2) Duration.--Each such plan shall be submitted 
        for the first year for which this part is in effect 
        following the date of enactment of the No Child Left 
        Behind Act of 2001 and shall remain in effect for the 
        duration of the agency's participation under this part.
            ``(3) Review.--Each local educational agency shall 
        periodically review and, as necessary, revise its plan.
    ``(e) State Approval.--
            ``(1) In general.--Each local educational agency 
        plan shall be filed according to a schedule established 
        by the State educational agency.
            ``(2) Approval.--The State educational agency shall 
        approve a local educational agency's plan only if the 
        State educational agency determines that the local 
        educational agency's plan--
                    ``(A) enables schools served under this 
                part to substantially help children served 
                under this part meet the academic standards 
                expected of all children described in section 
                1111(b)(1); and
                    ``(B) meets the requirements of this 
                section.
            ``(3) Review.--The State educational agency shall 
        review the local educational agency's plan to determine 
        if such agencies activities are in accordance with 
        sections 1118 and 1119.
    ``(f) Program Responsibility.--The local educational agency 
plan shall reflect the shared responsibility of schools, 
teachers, and the local educational agency in making decisions 
regarding activities under sections 1114 and 1115.
    ``(g) Parental Notification.--
            ``(1) In general.--
                    ``(A) Notice.--Each local educational 
                agency using funds under this part to provide a 
                language instruction educational program as 
                determined in part C of title III shall, not 
                later than 30 days after the beginning of the 
                school year, inform a parent or parents of a 
                limited English proficient child identified for 
                participation or participating in, such a 
                program of--
                    ``(i) the reasons for the identification of 
                their child as limited English proficient and 
                in need of placement in a language instruction 
                educational program;
                    ``(ii) the child's level of English 
                proficiency, how such level was assessed, and 
                the status of the child's academic achievement;
                    ``(iii) the methods of instruction used in 
                the program in which their child is, or will be 
                participating, and the methods of instruction 
                used in other available programs, including how 
                such programs differ in content, instructional 
                goals, and the use of English and a native 
                language in instruction;
                    ``(iv) how the program in which their child 
                is, or will be participating, will meet the 
                educational strengths and needs of their child;
                    ``(v) how such program will specifically 
                help their child learn English, and meet age-
                appropriate academic achievement standards for 
                grade promotion and graduation;
                    ``(vi) the specific exit requirements for 
                the program, including the expected rate of 
                transition from such program into classrooms 
                that are not tailored for limited English 
                proficient children, and the expected rate of 
                graduation from secondary school for such 
                program if funds under this part are used for 
                children in secondary schools;
                            ``(vii) in the case of a child with 
                        a disability, how such program meets 
                        the objectives of the individualized 
                        education program of the child;
                            ``(viii) information pertaining to 
                        parental rights that includes written 
                        guidance--
                                    ``(I) detailing--
                                            ``(aa) the right 
                                        that parents have to 
                                        have their child 
                                        immediately removed 
                                        from such program upon 
                                        their request; and
                                            ``(bb) the options 
                                        that parents have to 
                                        decline to enroll their 
                                        child in such program 
                                        or to choose another 
                                        program or method of 
                                        instruction, if 
                                        available; and
                                    ``(II) assisting parents in 
                                selecting among various 
                                programs and methods of 
                                instruction, if more than one 
                                program or method is offered by 
                                the eligible entity.
                    ``(B) Separate notification.--In addition 
                to providing the information required to be 
                provided under paragraph (1), each eligible 
                entity that is using funds provided under this 
                part to provide a language instruction 
                educational program, and that has failed to 
                make progress on the annual measurable 
                achievement objectives described in section 
                3122 for any fiscal year for which part A is in 
                effect, shall separately inform a parent or the 
                parents of a child identified for participation 
                in such program, or participating in such 
                program, of such failure not later than 30 days 
                after such failure occurs.
            ``(2) Notice.--The notice and information provided 
        in paragraph (1) to a parent or parents of a child 
        identified for participation in a language instruction 
        educational program for limited English proficient 
        children shall be in an understandable and uniform 
        format and, to the extent practicable, provided in a 
        language that the parents can understand.
            ``(3) Special rule applicable during the school 
        year.--For those children who have not been identified 
        as limited English proficient prior to the beginning of 
        the school year the local educational agency shall 
        notify parents within the first 2 weeks of the child 
        being placed in a language instruction educational 
        program consistent with paragraphs (1) and (2).
            ``(4) Parental participation.--Each local 
        educational agency receiving funds under this part 
        shall implement an effective means of outreach to 
        parents of limited English proficient students to 
        inform the parents regarding how the parents can be 
        involved in the education of their children, and be 
        active participants in assisting their children to 
        attain English proficiency, achieve at high levels in 
        core academic subjects, and meet challenging State 
        academic achievement standards and State academic 
        content standards expected of all students, including 
        holding, and sending notice of opportunities for, 
        regular meetings for the purpose of formulating and 
        responding to recommendations from parents of students 
        assisted under this part.
            ``(5) Basis for admission or exclusion.--A student 
        shall not be admitted to, or excluded from, any 
        federally assisted education program on the basis of a 
        surname or language-minority status.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) Determination.--
            ``(1) In general.--A local educational agency shall 
        use funds received under this part only in eligible 
        school attendance areas.
            ``(2) Eligible school attendance areas.--For the 
        purposes of this part--
                    ``(A) the term `school attendance area' 
                means, in relation to a particular school, the 
                geographical area in which the children who are 
                normally served by that school reside; and
                    ``(B) the term `eligible school attendance 
                area' means a school attendance area in which 
                the percentage of children from low-income 
                families is at least as high as the percentage 
                of children from low-income families served by 
                the local educational agency as a whole.
            ``(3) Ranking order.--If funds allocated in 
        accordance with subsection (c) are insufficient to 
        serve all eligible school attendance areas, a local 
        educational agency shall--
                    ``(A) annually rank, without regard to 
                grade spans, such agency's eligible school 
                attendance areas in which the concentration of 
                children from low-income families exceeds 75 
                percent from highest to lowest according to the 
                percentage of children from low-income 
                families; and
                    ``(B) serve such eligible school attendance 
                areas in rank order.
            ``(4) Remaining funds.--If funds remain after 
        serving all eligible school attendance areas under 
        paragraph (3), a local educational agency shall--
                    ``(A) annually rank such agency's remaining 
                eligible school attendance areas from highest 
                to lowest either by grade span or for the 
                entire local educational agency according to 
                the percentage of children from low-income 
                families; and
                    ``(B) serve such eligible school attendance 
                areas in rank order either within each grade-
                span grouping or within the local educational 
                agency as a whole.
            ``(5) Measures.--The local educational agency shall 
        use the same measure of poverty, which measure shall be 
        the number of children ages 5 through 17 in poverty 
        counted in the most recent census data approved by the 
        Secretary, the number of children eligible for free and 
        reduced priced lunches under the Richard B. Russell 
        National School Lunch Act, the number of children in 
        families receiving assistance under the State program 
        funded under part A of title IV of the Social Security 
        Act, or the number of children eligible to receive 
        medical assistance under the Medicaid program, or a 
        composite of such indicators, with respect to all 
        school attendance areas in the local educational 
        agency--
                    ``(A) to identify eligible school 
                attendance areas;
                    ``(B) to determine the ranking of each 
                area; and
                    ``(C) to determine allocations under 
                subsection (c).
            ``(6) Exception.--This subsection shall not apply 
        to a local educational agency with a total enrollment 
        of less than 1,000 children.
            ``(7) Waiver for desegregation plans.--The 
        Secretary may approve a local educational agency's 
        written request for a waiver of the requirements of 
        subsections (a) and (c), and permit such agency to 
        treat as eligible, and serve, any school that children 
        attend with a State-ordered, court-ordered school 
        desegregation plan or a plan that continues to be 
        implemented in accordance with a State-ordered or 
        court-ordered desegregation plan, if--
                    ``(A) the number of economically 
                disadvantaged children enrolled in the school 
                is at least 25 percent of the school's total 
                enrollment; and
                    ``(B) the Secretary determines on the basis 
                of a written request from such agency and in 
                accordance with such criteria as the Secretary 
                establishes, that approval of that request 
                would further the purposes of this part.
    ``(b) Local Educational Agency Discretion.--
            ``(1) In general.--Notwithstanding subsection 
        (a)(2), a local educational agency may--
                    ``(A) designate as eligible any school 
                attendance area or school in which at least 35 
                percent of the children are from low-income 
                families;
                    ``(B) use funds received under this part in 
                a school that is not in an eligible school 
                attendance area, if the percentage of children 
                from low-income families enrolled in the school 
                is equal to or greater than the percentage of 
                such children in a participating school 
                attendance area of such agency;
                    ``(C) designate and serve a school 
                attendance area or school that is not eligible 
                under this section, but that was eligible and 
                that was served in the preceding fiscal year, 
                but only for 1 additional fiscal year; and
                    ``(D) elect not to serve an eligible school 
                attendance area or eligible school that has a 
                higher percentage of children from low-income 
                families if--
                            ``(i) the school meets the 
                        comparability requirements of section 
                        1120A(c);
                            ``(ii) the school is receiving 
                        supplemental funds from other State or 
                        local sources that are spent according 
                        to the requirements of section 1114 or 
                        1115; and
                            ``(iii) the funds expended from 
                        such other sources equal or exceed the 
                        amount that would be provided under 
                        this part.
            ``(2) Special rule.--Notwithstanding paragraph 
        (1)(D), the number of children attending private 
        elementary schools and secondary schools who are to 
        receive services, and the assistance such children are 
        to receive under this part, shall be determined without 
        regard to whether the public school attendance area in 
        which such children reside is assisted under 
        subparagraph (A).
    ``(c) Allocations.--
            ``(1) In general.--A local educational agency shall 
        allocate funds received under this part to eligible 
        school attendance areas or eligible schools, identified 
        under subsections (a) and (b), in rank order, on the 
        basis of the total number of children from low-income 
        families in each area or school.
            ``(2) Special rule.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the per-pupil amount of funds 
                allocated to each school attendance area or 
                school under paragraph (1) shall be at least 
                125 percent of the per-pupil amount of funds a 
                local educational agency received for that year 
                under the poverty criteria described by the 
                local educational agency in the plan submitted 
                under section 1112, except that this paragraph 
                shall not apply to a local educational agency 
                that only serves schools in which the 
                percentage of such children is 35 percent or 
                greater.
                    ``(B) Exception.--A local educational 
                agency may reduce the amount of funds allocated 
                under subparagraph (A) for a school attendance 
                area or school by the amount of any 
                supplemental State and local funds expended in 
                that school attendance area or school for 
                programs that meet the requirements of section 
                1114 or 1115.
            ``(3) Reservation.--A local educational agency 
        shall reserve such funds as are necessary under this 
        part to provide services comparable to those provided 
        to children in schools funded under this part to 
        serve--
                    ``(A) homeless children who do not attend 
                participating schools, including providing 
                educationally related support services to 
                children in shelters and other locations where 
                children may live;
                    ``(B) children in local institutions for 
                neglected children; and
                    ``(C) if appropriate, children in local 
                institutions for delinquent children, and 
                neglected or delinquent children in community 
                day school programs.
            ``(4) Financial incentives and rewards 
        reservation.--A local educational agency may reserve 
        such funds as are necessary from those funds received 
        by the local educational agency under title II, and not 
        more than 5 percent of those funds received by the 
        local educational agency under subpart 2, to provide 
        financial incentives and rewards to teachers who serve 
        in schools eligible under this section and identified 
        for school improvement, corrective action, and 
        restructuring under section 1116(b) for the purpose of 
        attracting and retaining qualified and effective 
        teachers.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
            ``(1) In general.--A local educational agency may 
        consolidate and use funds under this part, together 
        with other Federal, State, and local funds, in order to 
        upgrade the entire educational program of a school that 
        serves an eligible school attendance area in which not 
        less than 40 percent of the children are from low-
        income families, or not less than 40 percent of the 
        children enrolled in the school are from such families.
            ``(2) Identification of students not required.--
                    ``(A) In general.--No school participating 
                in a schoolwide program shall be required--
                            ``(i) to identify particular 
                        children under this part as eligible to 
                        participate in a schoolwide program; or
                            ``(ii) to provide services to such 
                        children that are supplementary, as 
                        otherwise required by section 1120A(b).
                    ``(B) Supplemental funds.--A school 
                participating in a schoolwide program shall use 
                funds available to carry out this section only 
                to supplement the amount of funds that would, 
                in the absence of funds under this part, be 
                made available from non-Federal sources for the 
                school, including funds needed to provide 
                services that are required by law for children 
                with disabilities and children with limited 
                English proficiency.
            ``(3) Exemption from statutory and regulatory 
        requirements.--
                    ``(A) Exemption.--Except as provided in 
                subsection (b), the Secretary may, through 
                publication of a notice in the Federal 
                Register, exempt schoolwide programs under this 
                section from statutory or regulatory provisions 
                of any other noncompetitive formula grant 
                program administered by the Secretary (other 
                than formula or discretionary grant programs 
                under the Individuals with Disabilities 
                Education Act, except as provided in section 
                613(a)(2)(D) of such Act), or any discretionary 
                grant program administered by the Secretary, to 
                support schoolwide programs if the intent and 
                purposes of such other programs are met.
                    ``(B) Requirements.--A school that chooses 
                to use funds from such other programs shall not 
                be relieved of the requirements relating to 
                health, safety, civil rights, student and 
                parental participation and involvement, 
                services to private school children, 
                maintenance of effort, comparability of 
                services, uses of Federal funds to supplement, 
                not supplant non-Federal funds, or the 
                distribution of funds to State educational 
                agencies or local educational agencies that 
                apply to the receipt of funds from such 
                programs.
                    ``(C) Records.--A school that consolidates 
                and uses funds from different Federal programs 
                under this section shall not be required to 
                maintain separate fiscal accounting records, by 
                program, that identify the specific activities 
                supported by those particular funds as long as 
                the school maintains records that demonstrate 
                that the schoolwide program, considered as a 
                whole, addresses the intent and purposes of 
                each of the Federal programs that were 
                consolidated to support the schoolwide program.
            ``(4) Professional development.--Each school 
        receiving funds under this part for any fiscal year 
        shall devote sufficient resources to effectively carry 
        out the activities described in subsection (b)(1)(D) in 
        accordance with section 1119 for such fiscal year, 
        except that a school may enter into a consortium with 
        another school to carry out such activities.
    ``(b) Components of a Schoolwide Program.--
            ``(1) In general.--A schoolwide program shall 
        include the following components:
                    ``(A) A comprehensive needs assessment of 
                the entire school (including taking into 
                account the needs of migratory children as 
                defined in section 1309(2)) that is based on 
                information which includes the achievement of 
                children in relation to the State academic 
                content standards and the State student 
                academic achievement standards described in 
                section 1111(b)(1).
                    ``(B) Schoolwide reform strategies that--
                            ``(i) provide opportunities for all 
                        children to meet the State's proficient 
                        and advanced levels of student academic 
                        achievement described in section 
                        1111(b)(1)(D);
                            ``(ii) use effective methods and 
                        instructional strategies that are based 
                        on scientifically based research that--
                                    ``(I) strengthen the core 
                                academic program in the school;
                                    ``(II) increase the amount 
                                and quality of learning time, 
                                such as providing an extended 
                                school year and before- and 
                                after-school and summer 
                                programs and opportunities, and 
                                help provide an enriched and 
                                accelerated curriculum; and
                                    ``(III) include strategies 
                                for meeting the educational 
                                needs of historically 
                                underserved populations;
                            ``(iii)(I) include strategies to 
                        address the needs of all children in 
                        the school, but particularly the needs 
                        of low-achieving children and those at 
                        risk of not meeting the State student 
                        academic achievement standards who are 
                        members of the target population of any 
                        program that is included in the 
                        schoolwide program, which may include--
                                    ``(aa) counseling, pupil 
                                services, and mentoring 
                                services;
                                    ``(bb) college and career 
                                awareness and preparation, such 
                                as college and career guidance, 
                                personal finance education, and 
                                innovative teaching methods, 
                                which may include applied 
                                learning and team-teaching 
                                strategies; and
                                    ``(cc) the integration of 
                                vocational and technical 
                                education programs; and
                            ``(II) address how the school will 
                        determine if such needs have been met; 
                        and
                            ``(iv) are consistent with, and are 
                        designed to implement, the State and 
                        local improvement plans, if any.
                    ``(C) Instruction by highly qualified 
                teachers.
                    ``(D) In accordance with section 1119 and 
                subsection (a)(4), high-quality and ongoing 
                professional development for teachers, 
                principals, and paraprofessionals and, if 
                appropriate, pupil services personnel, parents, 
                and other staff to enable all children in the 
                school to meet the State's student academic 
                achievement standards.
                    ``(E) Strategies to attract high-quality 
                highly qualified teachers to high-need schools.
                    ``(F) Strategies to increase parental 
                involvement in accordance with section 1118, 
                such as family literary services.
                    ``(G) Plans for assisting preschool 
                children in the transition from early childhood 
                programs, such as Head Start, Even Start, Early 
                Reading First, or a State-run preschool 
                program, to local elementary school programs.
                    ``(H) Measures to include teachers in the 
                decisions regarding the use of academic 
                assessments described in section 1111(b)(3) in 
                order to provide information on, and to 
                improve, the achievement of individual students 
                and the overall instructional program.
                    ``(I) Activities to ensure that students 
                who experience difficulty mastering the 
                proficient or advanced levels of academic 
                achievement standards required by section 
                1111(b)(1) shall be provided with effective, 
                timely additional assistance which shall 
                include measures to ensure that students' 
                difficulties are identified on a timely basis 
                and to provide sufficient information on which 
                to base effective assistance.
                    ``(J) Coordination and integration of 
                Federal, State, and local services and 
                programs, including programs supported under 
                this Act, violence prevention programs, 
                nutrition programs, housing programs, Head 
                Start, adult education, vocational and 
                technical education, and job training.
            ``(2) Plan.--
                    ``(A) In general.--Any eligible school that 
                desires to operate a schoolwide program shall 
                first develop (or amend a plan for such a 
                program that was in existence on the day before 
                the date of enactment of the No Child Left 
                Behind Act of 2001), in consultation with the 
                local educational agency and its school support 
                team or other technical assistance provider 
                under section 1117, a comprehensive plan for 
                reforming the total instructional program in 
                the school that--
                            ``(i) describes how the school will 
                        implement the components described in 
                        paragraph (1);
                            ``(ii) describes how the school 
                        will use resources under this part and 
                        from other sources to implement those 
                        components;
                            ``(iii) includes a list of State 
                        educational agency and local 
                        educational agency programs and other 
                        Federal programs under subsection 
                        (a)(3) that will be consolidated in the 
                        schoolwide program; and
                            ``(iv) describes how the school 
                        will provide individual student 
                        academic assessment results in a 
                        language the parents can understand, 
                        including an interpretation of those 
                        results, to the parents of a child who 
                        participates in the academic 
                        assessments required by section 
                        1111(b)(3).
                    ``(B) Plan development.--The comprehensive 
                plan shall be--
                            ``(i) developed during a one-year 
                        period, unless--
                                    ``(I) the local educational 
                                agency, after considering the 
                                recommendation of the technical 
                                assistance providers under 
                                section 1117, determines that 
                                less time is needed to develop 
                                and implement the schoolwide 
                                program; or
                                    ``(II) the school is 
                                operating a schoolwide program 
                                on the day preceding the date 
                                of enactment of the No Child 
                                Left Behind Act of 2001, in 
                                which case such school may 
                                continue to operate such 
                                program, but shall develop 
                                amendments to its existing plan 
                                during the first year of 
                                assistance after that date to 
                                reflect the provisions of this 
                                section;
                            ``(ii) developed with the 
                        involvement of parents and other 
                        members of the community to be served 
                        and individuals who will carry out such 
                        plan, including teachers, principals, 
                        and administrators (including 
                        administrators of programs described in 
                        other parts of this title), and, if 
                        appropriate, pupil services personnel, 
                        technical assistance providers, school 
                        staff, and, if the plan relates to a 
                        secondary school, students from such 
                        school;
                            ``(iii) in effect for the duration 
                        of the school's participation under 
                        this part and reviewed and revised, as 
                        necessary, by the school;
                            ``(iv) available to the local 
                        educational agency, parents, and the 
                        public, and the information contained 
                        in such plan shall be in an 
                        understandable and uniform format and, 
                        to the extent practicable, provided in 
                        a language that the parents can 
                        understand; and
                            ``(v) if appropriate, developed in 
                        coordination with programs under 
                        Reading First, Early Reading First, 
                        Even Start, Carl D. Perkins Vocational 
                        and Technical Education Act of 1998, 
                        and the Head Start Act.
    ``(c) Prekindergarten Program.--A school that is eligible 
for a schoolwide program under this section may use funds made 
available under this part to establish or enhance 
prekindergarten programs for children below the age of 6, such 
as Even Start programs or Early Reading First programs.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

    ``(a) In General.--In all schools selected to receive funds 
under section 1113(c) that are ineligible for a schoolwide 
program under section 1114, or that choose not to operate such 
a schoolwide program, a local educational agency serving such 
school may use funds received under this part only for programs 
that provide services to eligible children under subsection (b) 
identified as having the greatest need for special assistance.
    ``(b) Eligible Children.--
            ``(1) Eligible population.--
                    ``(A) In general.--The eligible population 
                for services under this section is--
                            ``(i) children not older than age 
                        21 who are entitled to a free public 
                        education through grade 12; and
                            ``(ii) children who are not yet at 
                        a grade level at which the local 
                        educational agency provides a free 
                        public education.
                    ``(B) Eligible children from eligible 
                population.--From the population described in 
                subparagraph (A), eligible children are 
                children identified by the school as failing, 
                or most at risk of failing, to meet the State's 
                challenging student academic achievement 
                standards on the basis of multiple, 
                educationally related, objective criteria 
                established by the local educational agency and 
                supplemented by the school, except that 
                children from preschool through grade 2 shall 
                be selected solely on the basis of such 
                criteria as teacher judgment, interviews with 
                parents, and developmentally appropriate 
                measures.
            ``(2) Children included.--
                    ``(A) In general.--Children who are 
                economically disadvantaged, children with 
                disabilities, migrant children or limited 
                English proficient children, are eligible for 
                services under this part on the same basis as 
                other children selected to receive services 
                under this part.
                    ``(B) Head start, even start, or early 
                reading first children.--A child who, at any 
                time in the 2 years preceding the year for 
                which the determination is made, participated 
                in a Head Start, Even Start, or Early Reading 
                First program, or in preschool services under 
                this title, is eligible for services under this 
                part.
                    ``(C) Part c children.--A child who, at any 
                time in the 2 years preceding the year for 
                which the determination is made, received 
                services under part C is eligible for services 
                under this part.
                    ``(D) Neglected or delinquent children.--A 
                child in a local institution for neglected or 
                delinquent children and youth or attending a 
                community day program for such children is 
                eligible for services under this part.
                    ``(E) Homeless children.--A child who is 
                homeless and attending any school served by the 
                local educational agency is eligible for 
                services under this part.
            ``(3) Special rule.--Funds received under this part 
        may not be used to provide services that are otherwise 
        required by law to be made available to children 
        described in paragraph (2) but may be used to 
        coordinate or supplement such services.
    ``(c) Components of a Targeted Assistance School Program.--
            ``(1) In general.--To assist targeted assistance 
        schools and local educational agencies to meet their 
        responsibility to provide for all their students served 
        under this part the opportunity to meet the State's 
        challenging student academic achievement standards in 
        subjects as determined by the State, each targeted 
        assistance program under this section shall--
                    ``(A) use such program's resources under 
                this part to help participating children meet 
                such State's challenging student academic 
                achievement standards expected for all 
                children;
                    ``(B) ensure that planning for students 
                served under this part is incorporated into 
                existing school planning;
                    ``(C) use effective methods and 
                instructional strategies that are based on 
                scientifically based research that strengthens 
                the core academic program of the school and 
                that--
                            ``(i) give primary consideration to 
                        providing extended learning time, such 
                        as an extended school year, before- and 
                        after-school, and summer programs and 
                        opportunities;
                            ``(ii) help provide an accelerated, 
                        high-quality curriculum, including 
                        applied learning; and
                            ``(iii) minimize removing children 
                        from the regular classroom during 
                        regular school hours for instruction 
                        provided under this part;
                    ``(D) coordinate with and support the 
                regular education program, which may include 
                services to assist preschool children in the 
                transition from early childhood programs such 
                as Head Start, Even Start, Early Reading First 
                or State-run preschool programs to elementary 
                school programs;
                    ``(E) provide instruction by highly 
                qualified teachers;
                    ``(F) in accordance with subsection (e)(3) 
                and section 1119, provide opportunities for 
                professional development with resources 
                provided under this part, and, to the extent 
                practicable, from other sources, for teachers, 
                principals, and paraprofessionals, including, 
                if appropriate, pupil services personnel, 
                parents, and other staff, who work with 
                participating children in programs under this 
                section or in the regular education program;
                    ``(G) provide strategies to increase 
                parental involvement in accordance with section 
                1118, such as family literacy services; and
                    ``(H) coordinate and integrate Federal, 
                State, and local services and programs, 
                including programs supported under this Act, 
                violence prevention programs, nutrition 
                programs, housing programs, Head Start, adult 
                education, vocational and technical education, 
                and job training.
            ``(2) Requirements.--Each school conducting a 
        program under this section shall assist participating 
        children selected in accordance with subsection (b) to 
        meet the State's proficient and advanced levels of 
        achievement by--
                    ``(A) the coordinating of resources 
                provided under this part with other resources; 
                and
                    ``(B) reviewing, on an ongoing basis, the 
                progress of participating children and revising 
                the targeted assistance program, if necessary, 
                to provide additional assistance to enable such 
                children to meet the State's challenging 
                student academic achievement standards, such as 
                an extended school year, before- and after-
                school, and summer programs and opportunities, 
                training for teachers regarding how to identify 
                students who need additional assistance, and 
                training for teachers regarding how to 
                implement student academic achievement 
                standards in the classroom.
    ``(d) Integration of Professional Development.--To promote 
the integration of staff supported with funds under this part 
into the regular school program and overall school planning and 
improvement efforts, public school personnel who are paid with 
funds received under this part may--
            ``(1) participate in general professional 
        development and school planning activities; and
            ``(2) assume limited duties that are assigned to 
        similar personnel who are not so paid, including duties 
        beyond classroom instruction or that do not benefit 
        participating children, so long as the amount of time 
        spent on such duties is the same proportion of total 
        work time as prevails with respect to similar personnel 
        at the same school.
    ``(e) Special Rules.--
            ``(1) Simultaneous service.--Nothing in this 
        section shall be construed to prohibit a school from 
        serving students under this section simultaneously with 
        students with similar educational needs, in the same 
        educational settings where appropriate.
            ``(2) Comprehensive services.--If--
                    ``(A) health, nutrition, and other social 
                services are not otherwise available to 
                eligible children in a targeted assistance 
                school and such school, if appropriate, has 
                engaged in a comprehensive needs assessment and 
                established a collaborative partnership with 
                local service providers; and
                    ``(B) funds are not reasonably available 
                from other public or private sources to provide 
                such services, then a portion of the funds 
                provided under this part may be used as a last 
                resort to provide such services, including--
                            ``(i) the provision of basic 
                        medical equipment, such as eyeglasses 
                        and hearing aids;
                            ``(ii) compensation of a 
                        coordinator; and
                            ``(iii) professional development 
                        necessary to assist teachers, pupil 
                        services personnel, other staff, and 
                        parents in identifying and meeting the 
                        comprehensive needs of eligible 
                        children.
            ``(3) Professional development.--Each school 
        receiving funds under this part for any fiscal year 
        shall devote sufficient resources to carry out 
        effectively the professional development activities 
        described in subparagraph (F) of subsection (c)(1) in 
        accordance with section 1119 for such fiscal year, and 
        a school may enter into a consortium with another 
        school to carry out such activities.

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

    ``(a) Local Review.--
            ``(1) In general.--Each local educational agency 
        receiving funds under this part shall--
                    ``(A) use the State academic assessments 
                and other indicators described in the State 
                plan to review annually the progress of each 
                school served under this part to determine 
                whether the school is making adequate yearly 
                progress as defined in section 1111(b)(2);
                    ``(B) at the local educational agency's 
                discretion, use any academic assessments or any 
                other academic indicators described in the 
                local educational agency's plan under section 
                1112(b)(1)(A) and (B) to review annually the 
                progress of each school served under this part 
                to determine whether the school is making 
                adequate yearly progress as defined in section 
                1111(b)(2), except that the local educational 
                agency may not use such indicators (other than 
                as provided for in section 1111(b)(2)(I)) if 
                the indicators reduce the number or change the 
                schools that would otherwise be subject to 
                school improvement, corrective action, or 
                restructuring under section 1116 if such 
                additional indicators were not used, but may 
                identify additional schools for school 
                improvement or in need of corrective action or 
                restructuring;
                    ``(C) publicize and disseminate the results 
                of the local annual review described in 
                paragraph (1) to parents, teachers, principals, 
                schools, and the community so that the 
                teachers, principals, other staff, and schools 
                can continually refine, in an instructionally 
                useful manner, the program of instruction to 
                help all children served under this part meet 
                the challenging State student academic 
                achievement standards established under section 
                1111(b)(1); and
                    ``(D) review the effectiveness of the 
                actions and activities the schools are carrying 
                out under this part with respect to parental 
                involvement, professional development, and 
                other activities assisted under this part.
            ``(2) Available results.--The State educational 
        agency shall ensure that the results of State academic 
        assessments administered in that school year are 
        available to the local educational agency before the 
        beginning of the next school year.
    ``(b) School Improvement.--
            ``(1) General requirements.--
                    ``(A) Identification.--Subject to 
                subparagraph (C), a local educational agency 
                shall identify for school improvement any 
                elementary school or secondary school served 
                under this part that fails, for 2 consecutive 
                years, to make adequate yearly progress as 
                defined in the State's plan under section 
                1111(b)(2).
                    ``(B) Deadline.--The identification 
                described in subparagraph (A) shall take place 
                before the beginning of the school year 
                following such failure to make adequate yearly 
                progress.
                    ``(C) Application.--Subparagraph (A) shall 
                not apply to a school if almost every student 
                in each group specified in section 
                1111(b)(2)(C)(v) enrolled in such school is 
                meeting or exceeding the State's proficient 
                level of academic achievement.
                    ``(D) Targeted assistance schools.--To 
                determine if an elementary school or a 
                secondary school that is conducting a targeted 
                assistance program under section 1115 should be 
                identified for school improvement, corrective 
                action, or restructuring under this section, a 
                local educational agency may choose to review 
                the progress of only the students in the school 
                who are served, or are eligible for services, 
                under this part.
                    ``(E) Public school choice.--
                            ``(i) In general.--In the case of a 
                        school identified for school 
                        improvement under this paragraph, the 
                        local educational agency shall, not 
                        later than the first day of the school 
                        year following such identification, 
                        provide all students enrolled in the 
                        school with the option to transfer to 
                        another public school served by the 
                        local educational agency, which may 
                        include a public charter school, that 
                        has not been identified for school 
                        improvement under this paragraph, 
                        unless such an option is prohibited by 
                        State law.
                            ``(ii) Rule.--In providing students 
                        the option to transfer to another 
                        public school, the local educational 
                        agency shall give priority to the 
                        lowest achieving children from low-
                        income families, as determined by the 
                        local educational agency for purposes 
                        of allocating funds to schools under 
                        section 1113(c)(1).
                    ``(F) Transfer.--Students who use the 
                option to transfer under subparagraph (E) and 
                paragraph (5)(A), (7)(C)(i), or (8)(A)(i) or 
                subsection (c)(10)(C)(vii) shall be enrolled in 
                classes and other activities in the public 
                school to which the students transfer in the 
                same manner as all other children at the public 
                school.
            ``(2) Opportunity to review and present evidence; 
        time limit.--
                    ``(A) Identification.--Before identifying 
                an elementary school or a secondary school for 
                school improvement under paragraphs (1) or 
                (5)(A), for corrective action under paragraph 
                (7), or for restructuring under paragraph (8), 
                the local educational agency shall provide the 
                school with an opportunity to review the 
                school-level data, including academic 
                assessment data, on which the proposed 
                identification is based.
                    ``(B) Evidence.--If the principal of a 
                school proposed for identification under 
                paragraph (1), (5)(A), (7), or (8) believes, or 
                a majority of the parents of the students 
                enrolled in such school believe, that the 
                proposed identification is in error for 
                statistical or other substantive reasons, the 
                principal may provide supporting evidence to 
                the local educational agency, which shall 
                consider that evidence before making a final 
                determination.
                    ``(C) Final determination.--Not later than 
                30 days after a local educational agency 
                provides the school with the opportunity to 
                review such school-level data, the local 
                educational agency shall make public a final 
                determination on the status of the school with 
                respect to the identification.
            ``(3) School plan.--
                    ``(A) Revised plan.--After the resolution 
                of a review under paragraph (2), each school 
                identified under paragraph (1) for school 
                improvement shall, not later than 3 months 
                after being so identified, develop or revise a 
                school plan, in consultation with parents, 
                school staff, the local educational agency 
                serving the school, and outside experts, for 
                approval by such local educational agency. The 
                school plan shall cover a 2-year period and--
                            ``(i) incorporate strategies based 
                        on scientifically based research that 
                        will strengthen the core academic 
                        subjects in the school and address the 
                        specific academic issues that caused 
                        the school to be identified for school 
                        improvement, and may include a strategy 
                        for the implementation of a 
                        comprehensive school reform model that 
                        includes each of the components 
                        described in part F;
                            ``(ii) adopt policies and practices 
                        concerning the school's core academic 
                        subjects that have the greatest 
                        likelihood of ensuring that all groups 
                        of students specified in section 
                        1111(b)(2)(C)(v) and enrolled in the 
                        school will meet the State's proficient 
                        level of achievement on the State 
                        academic assessment described in 
                        section 1111(b)(3) not later than 12 
                        years after the end of the 2001-2002 
                        school year;
                            ``(iii) provide an assurance that 
                        the school will spend not less than 10 
                        percent of the funds made available to 
                        the school under section 1113 for each 
                        fiscal year that the school is in 
                        school improvement status, for the 
                        purpose of providing to the school's 
                        teachers and principal high-quality 
                        professional development that--
                                    ``(I) directly addresses 
                                the academic achievement 
                                problem that caused the school 
                                to be identified for school 
                                improvement;
                                    ``(II) meets the 
                                requirements for professional 
                                development activities under 
                                section 1119; and
                                    ``(III) is provided in a 
                                manner that affords increased 
                                opportunity for participating 
                                in that professional 
                                development;
                            ``(iv) specify how the funds 
                        described in clause (iii) will be used 
                        to remove the school from school 
                        improvement status;
                            ``(v) establish specific annual, 
                        measurable objectives for continuous 
                        and substantial progress by each group 
                        of students specified in section 
                        1111(b)(2)(C)(v) and enrolled in the 
                        school that will ensure that all such 
                        groups of students will, in accordance 
                        with adequate yearly progress as 
                        defined in section 1111(b)(2), meet the 
                        State's proficient level of achievement 
                        on the State academic assessment 
                        described in section 1111(b)(3) not 
                        later than 12 years after the end of 
                        the 2001-2002 school year;
                            ``(vi) describe how the school will 
                        provide written notice about the 
                        identification to parents of each 
                        student enrolled in such school, in a 
                        format and, to the extent practicable, 
                        in a language that the parents can 
                        understand;
                            ``(vii) specify the 
                        responsibilities of the school, the 
                        local educational agency, and the State 
                        educational agency serving the school 
                        under the plan, including the technical 
                        assistance to be provided by the local 
                        educational agency under paragraph (4) 
                        and the local educational agency's 
                        responsibilities under section 1120A;
                            ``(viii) include strategies to 
                        promote effective parental involvement 
                        in the school;
                            ``(ix) incorporate, as appropriate, 
                        activities before school, after school, 
                        during the summer, and during any 
                        extension of the school year; and
                            ``(x) incorporate a teacher 
                        mentoring program.
                    ``(B) Conditional approval.--The local 
                educational agency may condition approval of a 
                school plan under this paragraph on--
                            ``(i) inclusion of one or more of 
                        the corrective actions specified in 
                        paragraph (7)(C)(iv); or
                            ``(ii) feedback on the school 
                        improvement plan from parents and 
                        community leaders.
                    ``(C) Plan implementation.--Except as 
                provided in subparagraph (D), a school shall 
                implement the school plan (including a revised 
                plan) expeditiously, but not later than the 
                beginning of the next full school year 
                following the identification under paragraph 
                (1).
                    ``(D) Plan approved during school year.--
                Notwithstanding subparagraph (C), if a plan is 
                not approved prior to the beginning of a school 
                year, such plan shall be implemented 
                immediately upon approval.
                    ``(E) Local educational agency approval.--
                The local educational agency, within 45 days of 
                receiving a school plan, shall--
                            ``(i) establish a peer review 
                        process to assist with review of the 
                        school plan; and
                            ``(ii) promptly review the school 
                        plan, work with the school as 
                        necessary, and approve the school plan 
                        if the plan meets the requirements of 
                        this paragraph.
            ``(4) Technical assistance.--
                    ``(A) In general.--For each school 
                identified for school improvement under 
                paragraph (1), the local educational agency 
                serving the school shall ensure the provision 
                of technical assistance as the school develops 
                and implements the school plan under paragraph 
                (3) throughout the plan's duration.
                    ``(B) Specific assistance.--Such technical 
                assistance--
                            ``(i) shall include assistance in 
                        analyzing data from the assessments 
                        required under section 1111(b)(3), and 
                        other examples of student work, to 
                        identify and address, problems in 
                        instruction and problems, if any, in 
                        implementing the parental involvement 
                        requirements described in section 1118, 
                        the professional development 
                        requirements described in section 1119, 
                        and the responsibilities of the school 
                        and local educational agency under the 
                        school plan, and to identify and 
                        address solutions to such problems;
                            ``(ii) shall include assistance in 
                        identifying and implementing 
                        professional development, instructional 
                        strategies, and methods of instruction 
                        that are based on scientifically based 
                        research and that have proven effective 
                        in addressing the specific 
                        instructional issues that caused the 
                        school to be identified for school 
                        improvement;
                            ``(iii) shall include assistance in 
                        analyzing and revising the school's 
                        budget so that the school's resources 
                        are more effectively allocated to the 
                        activities most likely to increase 
                        student academic achievement and to 
                        remove the school from school 
                        improvement status; and
                            ``(iv) may be provided--
                                    ``(I) by the local 
                                educational agency, through 
                                mechanisms authorized under 
                                section 1117; or
                                    ``(II) by the State 
                                educational agency, an 
                                institution of higher education 
                                (that is in full compliance 
                                with all the reporting 
                                provisions of title II of the 
                                Higher Education Act of 1965), 
                                a private not-for-profit 
                                organization or for-profit 
                                organization, an educational 
                                service agency, or another 
                                entity with experience in 
                                helping schools improve 
                                academic achievement.
                    ``(C) Scientifically based research.--
                Technical assistance provided under this 
                section by a local educational agency or an 
                entity approved by that agency shall be based 
                on scientifically based research.
            ``(5) Failure to make adequate yearly progress 
        after identification.--In the case of any school served 
        under this part that fails to make adequate yearly 
        progress, as defined by the State under section 
        1111(b)(2), by the end of the first full school year 
        after identification under paragraph (1), the local 
        educational agency serving such school--
                    ``(A) shall continue to provide all 
                students enrolled in the school with the option 
                to transfer to another public school served by 
                the local educational agency in accordance with 
                subparagraphs (E) and (F);
                    ``(B) shall make supplemental educational 
                services available consistent with subsection 
                (e)(1); and
                    ``(C) shall continue to provide technical 
                assistance.
            ``(6) Notice to parents.--A local educational 
        agency shall promptly provide to a parent or parents 
        (in an understandable and uniform format and, to the 
        extent practicable, in a language the parents can 
        understand) of each student enrolled in an elementary 
        school or a secondary school identified for school 
        improvement under paragraph (1), for corrective action 
        under paragraph (7), or for restructuring under 
        paragraph (8)--
                    ``(A) an explanation of what the 
                identification means, and how the school 
                compares in terms of academic achievement to 
                other elementary schools or secondary schools 
                served by the local educational agency and the 
                State educational agency involved;
                    ``(B) the reasons for the identification;
                    ``(C) an explanation of what the school 
                identified for school improvement is doing to 
                address the problem of low achievement;
                    ``(D) an explanation of what the local 
                educational agency or State educational agency 
                is doing to help the school address the 
                achievement problem;
                    ``(E) an explanation of how the parents can 
                become involved in addressing the academic 
                issues that caused the school to be identified 
                for school improvement; and
                    ``(F) an explanation of the parents' option 
                to transfer their child to another public 
                school under paragraphs (1)(E), (5)(A), 
                (7)(C)(i), (8)(A)(i), and subsection 
                (c)(10)(C)(vii) (with transportation provided 
                by the agency when required by paragraph (9)) 
                or to obtain supplemental educational services 
                for the child, in accordance with subsection 
                (e).
            ``(7) Corrective action.--
                    ``(A) In general.--In this subsection, the 
                term `corrective action' means action, 
                consistent with State law, that--
                            ``(i) substantially and directly 
                        responds to--
                                    ``(I) the consistent 
                                academic failure of a school 
                                that caused the local 
                                educational agency to take such 
                                action; and
                                    ``(II) any underlying 
                                staffing, curriculum, or other 
                                problems in the school; and
                            ``(ii) is designed to increase 
                        substantially the likelihood that each 
                        group of students described in 
                        1111(b)(2)(C) enrolled in the school 
                        identified for corrective action will 
                        meet or exceed the State's proficient 
                        levels of achievement on the State 
                        academic assessments described in 
                        section 1111(b)(3).
                    ``(B) System.--In order to help students 
                served under this part meet challenging State 
                student academic achievement standards, each 
                local educational agency shall implement a 
                system of corrective action in accordance with 
                subparagraphs (C) through (E).
                    ``(C) Role of local educational agency.--In 
                the case of any school served by a local 
                educational agency under this part that fails 
                to make adequate yearly progress, as defined by 
                the State under section 1111(b)(2), by the end 
                of the second full school year after the 
                identification under paragraph (1), the local 
                educational agency shall--
                            ``(i) continue to provide all 
                        students enrolled in the school with 
                        the option to transfer to another 
                        public school served by the local 
                        educational agency, in accordance with 
                        paragraph (1)(E) and (F);
                            ``(ii) continue to provide 
                        technical assistance consistent with 
                        paragraph (4) while instituting any 
                        corrective action under clause (iv);
                            ``(iii) continue to make 
                        supplemental educational services 
                        available, in accordance with 
                        subsection (e), to children who remain 
                        in the school; and
                            ``(iv) identify the school for 
                        corrective action and take at least one 
                        of the following corrective actions:
                                    ``(I) Replace the school 
                                staff who are relevant to the 
                                failure to make adequate yearly 
                                progress.
                                    ``(II) Institute and fully 
                                implement a new curriculum, 
                                including providing appropriate 
                                professional development for 
                                all relevant staff, that is 
                                based on scientifically based 
                                research and offers substantial 
                                promise of improving 
                                educational achievement for 
                                low-achieving students and 
                                enabling the school to make 
                                adequate yearly progress.
                                    ``(III) Significantly 
                                decrease management authority 
                                at the school level.
                                    ``(IV) Appoint an outside 
                                expert to advise the school on 
                                its progress toward making 
                                adequate yearly progress, based 
                                on its school plan under 
                                paragraph (3).
                                    ``(V) Extend the school 
                                year or school day for the 
                                school.
                                    ``(VI) Restructure the 
                                internal organizational 
                                structure of the school.
                    ``(D) Delay.--Notwithstanding any other 
                provision of this paragraph, the local 
                educational agency may delay, for a period not 
                to exceed 1 year, implementation of the 
                requirements under paragraph (5), corrective 
                action under this paragraph, or restructuring 
                under paragraph (8) if the school makes 
                adequate yearly progress for 1 year or if its 
                failure to make adequate yearly progress is due 
                to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources 
                of the local educational agency or school. No 
                such period shall be taken into account in 
                determining the number of consecutive years of 
                failure to make adequate yearly progress.
                    ``(E) Publication and dissemination.--The 
                local educational agency shall publish and 
                disseminate information regarding any 
                corrective action the local educational agency 
                takes under this paragraph at a school--
                            ``(i) to the public and to the 
                        parents of each student enrolled in the 
                        school subject to corrective action;
                            ``(ii) in an understandable and 
                        uniform format and, to the extent 
                        practicable, provided in a language 
                        that the parents can understand; and
                            ``(iii) through such means as the 
                        Internet, the media, and public 
                        agencies.
            ``(8) Restructuring.--
                    ``(A) Failure to make adequate yearly 
                progress.--If, after 1 full school year of 
                corrective action under paragraph (7), a school 
                subject to such corrective action continues to 
                fail to make adequate yearly progress, then the 
                local educational agency shall--
                            ``(i) continue to provide all 
                        students enrolled in the school with 
                        the option to transfer to another 
                        public school served by the local 
                        educational agency, in accordance with 
                        paragraph (1)(E) and (F);
                            ``(ii) continue to make 
                        supplemental educational services 
                        available, in accordance with 
                        subsection (e), to children who remain 
                        in the school; and
                            ``(iii) prepare a plan and make 
                        necessary arrangements to carry out 
                        subparagraph (B).
                    ``(B) Alternative governance.--Not later 
                than the beginning of the school year following 
                the year in which the local educational agency 
                implements subparagraph (A), the local 
                educational agency shall implement one of the 
                following alternative governance arrangements 
                for the school consistent with State law:
                            ``(i) Reopening the school as a 
                        public charter school.
                            ``(ii) Replacing all or most of the 
                        school staff (which may include the 
                        principal) who are relevant to the 
                        failure to make adequate yearly 
                        progress.
                            ``(iii) Entering into a contract 
                        with an entity, such as a private 
                        management company, with a demonstrated 
                        record of effectiveness, to operate the 
                        public school.
                            ``(iv) Turning the operation of the 
                        school over to the State, if permitted 
                        under State law and agreed to by the 
                        State.
                            ``(v) Any other major restructuring 
                        of the school's governance arrangement 
                        that makes fundamental reforms, such as 
                        significant changes in the school's 
                        staffing and governance, to improve 
                        student academic achievement in the 
                        school and that has substantial promise 
                        of enabling the school to make adequate 
                        yearly progress as defined in the State 
                        plan under section 1111(b)(2). In the 
                        case of a rural local educational 
                        agency with a total of less than 600 
                        students in average daily attendance at 
                        the schools that are served by the 
                        agency and all of whose schools have a 
                        School Locale Code of 7 or 8, as 
                        determined by the Secretary, the 
                        Secretary shall, at such agency's 
                        request, provide technical assistance 
                        to such agency for the purpose of 
                        implementing this clause.
                    ``(C) Prompt notice.--The local educational 
                agency shall--
                            ``(i) provide prompt notice to 
                        teachers and parents whenever 
                        subparagraph (A) or (B) applies; and
                            ``(ii) provide the teachers and 
                        parents with an adequate opportunity 
                        to--
                                    ``(I) comment before taking 
                                any action under those 
                                subparagraphs; and
                                    ``(II) participate in 
                                developing any plan under 
                                subparagraph (A)(iii).
            ``(9) Transportation.--In any case described in 
        paragraph (1)(E) for schools described in paragraphs 
        (1)(A), (5), (7)(C)(i), and (8)(A), and subsection 
        (c)(10)(C)(vii), the local educational agency shall 
        provide, or shall pay for the provision of, 
        transportation for the student to the public school the 
        student attends.
            ``(10) Funds for transportation and supplemental 
        educational services.--
                    ``(A) In general.--Unless a lesser amount 
                is needed to comply with paragraph (9) and to 
                satisfy all requests for supplemental 
                educational services under subsection (e), a 
                local educational agency shall spend an amount 
                equal to 20 percent of its allocation under 
                subpart 2, from which the agency shall spend--
                            ``(i) an amount equal to 5 percent 
                        of its allocation under subpart 2 to 
                        provide, or pay for, transportation 
                        under paragraph (9);
                            ``(ii) an amount equal to 5 percent 
                        of its allocation under subpart 2 to 
                        provide supplemental educational 
                        services under subsection (e); and
                            ``(iii) an amount equal to the 
                        remaining 10 percent of its allocation 
                        under subpart 2 for transportation 
                        under paragraph (9), supplemental 
                        educational services under subsection 
                        (e), or both, as the agency determines.
                    ``(B) Total amount.--The total amount 
                described in subparagraph (A)(ii) is the 
                maximum amount the local educational agency 
                shall be required to spend under this part on 
                supplemental educational services described in 
                subsection (e).
                    ``(C) Insufficient funds.--If the amount of 
                funds described in subparagraph (A)(ii) or 
                (iii) and available to provide services under 
                this subsection is insufficient to provide 
                supplemental educational services to each child 
                whose parents request the services, the local 
                educational agency shall give priority to 
                providing the services to the lowest-achieving 
                children.
                    ``(D) Prohibition.--A local educational 
                agency shall not, as a result of the 
                application of this paragraph, reduce by more 
                than 15 percent the total amount made available 
                under section 1113(c) to a school described in 
                paragraph (7)(C) or (8)(A) of subsection (b).
            ``(11) Cooperative agreement.--In any case 
        described in paragraph (1)(E), (5)(A), (7)(C)(i), or 
        (8)(A)(i), or subsection (c)(10)(C)(vii) if all public 
        schools served by the local educational agency to which 
        a child may transfer are identified for school 
        improvement, corrective action or restructuring, the 
        agency shall, to the extent practicable, establish a 
        cooperative agreement with other local educational 
        agencies in the area for a transfer.
            ``(12) Duration.--If any school identified for 
        school improvement, corrective action, or restructuring 
        makes adequate yearly progress for 2 consecutive school 
        years, the local educational agency shall no longer 
        subject the school to the requirements of school 
        improvement, corrective action, or restructuring or 
        identify the school for school improvement for the 
        succeeding school year.
            ``(13) Special rule.--A local educational agency 
        shall permit a child who transferred to another school 
        under this subsection to remain in that school until 
        the child has completed the highest grade in that 
        school. The obligation of the local educational agency 
        to provide, or to provide for, transportation for the 
        child ends at the end of a school year if the local 
        educational agency determines that the school from 
        which the child transferred is no longer identified for 
        school improvement or subject to corrective action or 
        restructuring.
            ``(14) State educational agency responsibilities.--
        The State educational agency shall--
                    ``(A) make technical assistance under 
                section 1117 available to schools identified 
                for school improvement, corrective action, or 
                restructuring under this subsection consistent 
                with section 1117(a)(2);
                    ``(B) if the State educational agency 
                determines that a local educational agency 
                failed to carry out its responsibilities under 
                this subsection, take such corrective actions 
                as the State educational agency determines to 
                be appropriate and in compliance with State 
                law;
                    ``(C) ensure that academic assessment 
                results under this part are provided to schools 
                before any identification of a school may take 
                place under this subsection; and
                    ``(D) for local educational agencies or 
                schools identified for improvement under this 
                subsection, notify the Secretary of major 
                factors that were brought to the attention of 
                the State educational agency under section 
                1111(b)(9) that have significantly affected 
                student academic achievement.
    ``(c) State Review and Local Educational Agency 
Improvement.--
            ``(1) In general.--A State shall--
                    ``(A) annually review the progress of each 
                local educational agency receiving funds under 
                this part to determine whether schools 
                receiving assistance under this part are making 
                adequate yearly progress as defined in section 
                1111(b)(2) toward meeting the State's student 
                academic achievement standards and to determine 
                if each local educational agency is carrying 
                out its responsibilities under this section and 
                sections 1117, 1118, and 1119; and
                    ``(B) publicize and disseminate to local 
                educational agencies, teachers and other staff, 
                parents, students, and the community the 
                results of the State review, including 
                statistically sound disaggregated results, as 
                required by section 1111(b)(2).
            ``(2) Rewards.--In the case of a local educational 
        agency that, for 2 consecutive years, has exceeded 
        adequate yearly progress as defined in the State plan 
        under section 1111(b)(2), the State may make rewards of 
        the kinds described under section 1117 to the agency.
            ``(3) Identification of local educational agency 
        for improvement.--A State shall identify for 
        improvement any local educational agency that, for 2 
        consecutive years, including the period immediately 
        prior to the date of enactment of the No Child Left 
        Behind Act of 2001, failed to make adequate yearly 
        progress as defined in the State's plan under section 
        1111(b)(2).
            ``(4) Targeted assistance schools.--When reviewing 
        targeted assistance schools served by a local 
        educational agency, a State educational agency may 
        choose to review the progress of only the students in 
        such schools who are served, or are eligible for 
        services, under this part.
            ``(5) Opportunity to review and present evidence.--
                    ``(A) Review.--Before identifying a local 
                educational agency for improvement under 
                paragraph (3) or corrective action under 
                paragraph (10), a State educational agency 
                shall provide the local educational agency with 
                an opportunity to review the data, including 
                academic assessment data, on which the proposed 
                identification is based.
                    ``(B) Evidence.--If the local educational 
                agency believes that the proposed 
                identification is in error for statistical or 
                other substantive reasons, the agency may 
                provide supporting evidence to the State 
                educational agency, which shall consider the 
                evidence before making a final determination 
                not later than 30 days after the State 
                educational agency provides the local 
                educational agency with the opportunity to 
                review such data under subparagraph (A).
            ``(6) Notification to parents.--The State 
        educational agency shall promptly provide to the 
        parents (in a format and, to the extent practicable, in 
        a language the parents can understand) of each student 
        enrolled in a school served by a local educational 
        agency identified for improvement, the results of the 
        review under paragraph (1) and, if the agency is 
        identified for improvement, the reasons for that 
        identification and how parents can participate in 
        upgrading the quality of the local educational agency.
            ``(7) Local educational agency revisions.--
                    ``(A) Plan.--Each local educational agency 
                identified under paragraph (3) shall, not later 
                than 3 months after being so identified, 
                develop or revise a local educational agency 
                plan, in consultation with parents, school 
                staff, and others. Such plan shall--
                            ``(i) incorporate scientifically-
                        based research strategies that 
                        strengthen the core academic program in 
                        schools served by the local educational 
                        agency;
                            ``(ii) identify actions that have 
                        the greatest likelihood of improving 
                        the achievement of participating 
                        children in meeting the State's student 
                        academic achievement standards;
                            ``(iii) address the professional 
                        development needs of the instructional 
                        staff serving the agency by committing 
                        to spend not less than 10 percent of 
                        the funds received by the local 
                        educational agency under subpart 2 for 
                        each fiscal year in which the agency is 
                        identified for improvement for 
                        professional development (including 
                        funds reserved for professional 
                        development under subsection 
                        (b)(3)(A)(iii)), but excluding funds 
                        reserved for professional development 
                        under section 1119;
                            ``(iv) include specific measurable 
                        achievement goals and targets for each 
                        of the groups of students identified in 
                        the disaggregated data pursuant to 
                        section 1111(b)(2)(C)(v), consistent 
                        with adequate yearly progress as 
                        defined under section 1111(b)(2);
                            ``(v) address the fundamental 
                        teaching and learning needs in the 
                        schools of that agency, and the 
                        specific academic problems of low-
                        achieving students, including a 
                        determination of why the local 
                        educational agency's prior plan failed 
                        to bring about increased student 
                        academic achievement;
                            ``(vi) incorporate, as appropriate, 
                        activities before school, after school, 
                        during the summer, and during an 
                        extension of the school year;
                            ``(vii) specify the 
                        responsibilities of the State 
                        educational agency and the local 
                        educational agency under the plan, 
                        including specifying the technical 
                        assistance to be provided by the State 
                        educational agency under paragraph (9) 
                        and the local educational agency's 
                        responsibilities under section 1120A; 
                        and
                            ``(viii) include strategies to 
                        promote effective parental involvement 
                        in the school.
                    ``(B) Implementation.--The local 
                educational agency shall implement the plan 
                (including a revised plan) expeditiously, but 
                not later than the beginning of the next school 
                year after the school year in which the agency 
                was identified for improvement.
            ``(9) State educational agency responsibility.--
                    ``(A) Technical or other assistance.--For 
                each local educational agency identified under 
                paragraph (3), the State educational agency 
                shall provide technical or other assistance if 
                requested, as authorized under section 1117, to 
                better enable the local educational agency to--
                            ``(i) develop and implement the 
                        local educational agency's plan; and
                            ``(ii) work with schools needing 
                        improvement.
                    ``(B) Methods and strategies.--Technical 
                assistance provided under this section by the 
                State educational agency or an entity 
                authorized by such agency shall be supported by 
                effective methods and instructional strategies 
                based on scientifically based research. Such 
                technical assistance shall address problems, if 
                any, in implementing the parental involvement 
                activities described in section 1118 and the 
                professional development activities described 
                in section 1119.
            ``(10) Corrective action.--In order to help 
        students served under this part meet challenging State 
        student academic achievement standards, each State 
        shall implement a system of corrective action in 
        accordance with the following:
                    ``(A) Definition.--As used in this 
                paragraph, the term `corrective action' means 
                action, consistent with State law, that--
                            ``(i) substantially and directly 
                        responds to the consistent academic 
                        failure that caused the State to take 
                        such action and to any underlying 
                        staffing, curricular, or other problems 
                        in the agency; and
                            ``(ii) is designed to meet the goal 
                        of having all students served under 
                        this part achieve at the proficient and 
                        advanced student academic achievement 
                        levels.
                    ``(B) General requirements.--After 
                providing technical assistance under paragraph 
                (9) and subject to subparagraph (E), the 
                State--
                            ``(i) may take corrective action at 
                        any time with respect to a local 
                        educational agency that has been 
                        identified under paragraph (3);
                            ``(ii) shall take corrective action 
                        with respect to any local educational 
                        agency that fails to make adequate 
                        yearly progress, as defined by the 
                        State, by the end of the second full 
                        school year after the identification of 
                        the agency under paragraph (3); and
                            ``(iii) shall continue to provide 
                        technical assistance while instituting 
                        any corrective action under clause (i) 
                        or (ii).
                    ``(C) Certain corrective actions 
                required.--In the case of a local educational 
                agency identified for corrective action, the 
                State educational agency shall take at least 
                one of the following corrective actions:
                            ``(i) Deferring programmatic funds 
                        or reducing administrative funds.
                            ``(ii) Instituting and fully 
                        implementing a new curriculum that is 
                        based on State and local academic 
                        content and achievement standards, 
                        including providing appropriate 
                        professional development based on 
                        scientifically based research for all 
                        relevant staff, that offers substantial 
                        promise of improving educational 
                        achievement for low-achieving students.
                            ``(iii) Replacing the local 
                        educational agency personnel who are 
                        relevant to the failure to make 
                        adequate yearly progress.
                            ``(iv) Removing particular schools 
                        from the jurisdiction of the local 
                        educational agency and establishing 
                        alternative arrangements for public 
                        governance and supervision of such 
                        schools.
                            ``(v) Appointing, through the State 
                        educational agency, a receiver or 
                        trustee to administer the affairs of 
                        the local educational agency in place 
                        of the superintendent and school board.
                            ``(vi) Abolishing or restructuring 
                        the local educational agency.
                            ``(vii) Authorizing students to 
                        transfer from a school operated by the 
                        local educational agency to a higher-
                        performing public school operated by 
                        another local educational agency in 
                        accordance with subsections (b)(1)(E) 
                        and (F), and providing to such students 
                        transportation (or the costs of 
                        transportation) to such schools 
                        consistent with subsection (b)(9), in 
                        conjunction with carrying out not less 
                        than 1 additional action described 
                        under this subparagraph.
                    ``(D) Hearing.--Prior to implementing any 
                corrective action under this paragraph, the 
                State educational agency shall provide notice 
                and a hearing to the affected local educational 
                agency, if State law provides for such notice 
                and hearing. The hearing shall take place not 
                later than 45 days following the decision to 
                implement corrective action.
                    ``(E) Notice to parents.--The State 
                educational agency shall publish, and 
                disseminate to parents and the public, 
                information on any corrective action the State 
                educational agency takes under this paragraph 
                through such means as the Internet, the media, 
                and public agencies.
                    ``(F) Delay.--Notwithstanding subparagraph 
                (B)(ii), a State educational agency may delay, 
                for a period not to exceed 1 year, 
                implementation of corrective action under this 
                paragraph if the local educational agency makes 
                adequate yearly progress for 1 year or its 
                failure to make adequate yearly progress is due 
                to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources 
                of the local educational agency. No such period 
                shall be taken into account in determining the 
                number of consecutive years of failure to make 
                adequate yearly progress.
            ``(11) Special rule.--If a local educational agency 
        makes adequate yearly progress for 2 consecutive school 
        years beginning after the date of identification of the 
        agency under paragraph (3), the State educational 
        agency need no longer subject the local educational 
        agency to corrective action for the succeeding school 
        year.
    ``(d) Construction.--Nothing in this section shall be 
construed to alter or otherwise affect the rights, remedies, 
and procedures afforded school or school district employees 
under Federal, State, or local laws (including applicable 
regulations or court orders) or under the terms of collective 
bargaining agreements, memoranda of understanding, or other 
agreements between such employees and their employers.
    ``(e) Supplemental Educational Services.--
            ``(1) Supplemental educational services.--In the 
        case of any school described in paragraph (5), (7), or 
        (8) of subsection (b), the local educational agency 
        serving such school shall, subject to this subsection, 
        arrange for the provision of supplemental educational 
        services to eligible children in the school from a 
        provider with a demonstrated record of effectiveness, 
        that is selected by the parents and approved for that 
        purpose by the State educational agency in accordance 
        with reasonable criteria, consistent with paragraph 
        (5), that the State educational agency shall adopt.
            ``(2) Local educational agency responsibilities.--
        Each local educational agency subject to this 
        subsection shall--
                    ``(A) provide, at a minimum, annual notice 
                to parents (in an understandable and uniform 
                format and, to the extent practicable, in a 
                language the parents can understand) of--
                            ``(i) the availability of services 
                        under this subsection;
                            ``(ii) the identity of approved 
                        providers of those services that are 
                        within the local educational agency or 
                        whose services are reasonably available 
                        in neighboring local educational 
                        agencies; and
                            ``(iii) a brief description of the 
                        services, qualifications, and 
                        demonstrated effectiveness of each such 
                        provider;
                    ``(B) if requested, assist parents in 
                choosing a provider from the list of approved 
                providers maintained by the State;
                    ``(C) apply fair and equitable procedures 
                for serving students if the number of spaces at 
                approved providers is not sufficient to serve 
                all students; and
                    ``(D) not disclose to the public the 
                identity of any student who is eligible for, or 
                receiving, supplemental educational services 
                under this subsection without the written 
                permission of the parents of the student.
            ``(3) Agreement.--In the case of the selection of 
        an approved provider by a parent, the local educational 
        agency shall enter into an agreement with such 
        provider. Such agreement shall--
                    ``(A) require the local educational agency 
                to develop, in consultation with parents (and 
                the provider chosen by the parents), a 
                statement of specific achievement goals for the 
                student, how the student's progress will be 
                measured, and a timetable for improving 
                achievement that, in the case of a student with 
                disabilities, is consistent with the student's 
                individualized education program under section 
                614(d) of the Individuals with Disabilities 
                Education Act;
                    ``(B) describe how the student's parents 
                and the student's teacher or teachers will be 
                regularly informed of the student's progress;
                    ``(C) provide for the termination of such 
                agreement if the provider is unable to meet 
                such goals and timetables;
                    ``(D) contain provisions with respect to 
                the making of payments to the provider by the 
                local educational agency; and
                    ``(E) prohibit the provider from disclosing 
                to the public the identity of any student 
                eligible for, or receiving, supplemental 
                educational services under this subsection 
                without the written permission of the parents 
                of such student.
            ``(4) State educational agency responsibilities.--A 
        State educational agency shall--
                    ``(A) in consultation with local 
                educational agencies, parents, teachers, and 
                other interested members of the public, promote 
                maximum participation by providers to ensure, 
                to the extent practicable, that parents have as 
                many choices as possible;
                    ``(B) develop and apply objective criteria, 
                consistent with paragraph (5), to potential 
                providers that are based on a demonstrated 
                record of effectiveness in increasing the 
                academic proficiency of students in subjects 
                relevant to meeting the State academic content 
                and student achievement standards adopted under 
                section 1111(b)(1);
                    ``(C) maintain an updated list of approved 
                providers across the State, by school district, 
                from which parents may select;
                    ``(D) develop, implement, and publicly 
                report on standards and techniques for 
                monitoring the quality and effectiveness of the 
                services offered by approved providers under 
                this subsection, and for withdrawing approval 
                from providers that fail, for 2 consecutive 
                years, to contribute to increasing the academic 
                proficiency of students served under this 
                subsection as described in subparagraph (B); 
                and
                    ``(E) provide annual notice to potential 
                providers of supplemental educational services 
                of the opportunity to provide services under 
                this subsection and of the applicable 
                procedures for obtaining approval from the 
                State educational agency to be an approved 
                provider of those services.
            ``(5) Criteria for providers.--In order for a 
        provider to be included on the State list under 
        paragraph (4)(C), a provider shall agree to carry out 
        the following:
                    ``(A) Provide parents of children receiving 
                supplemental educational services under this 
                subsection and the appropriate local 
                educational agency with information on the 
                progress of the children in increasing 
                achievement, in a format and, to the extent 
                practicable, a language that such parents can 
                understand.
                    ``(B) Ensure that instruction provided and 
                content used by the provider are consistent 
                with the instruction provided and content used 
                by the local educational agency and State, and 
                are aligned with State student academic 
                achievement standards.
                    ``(C) Meet all applicable Federal, State, 
                and local health, safety, and civil rights 
                laws.
                    ``(D) Ensure that all instruction and 
                content under this subsection are secular, 
                neutral, and nonideological.
            ``(6) Amounts for supplemental educational 
        services.--The amount that a local educational agency 
        shall make available for supplemental educational 
        services for each child receiving those services under 
        this subsection shall be the lesser of--
                    ``(A) the amount of the agency's allocation 
                under subpart 2, divided by the number of 
                children from families below the poverty level 
                counted under section 1124(c)(1)(A); or
                    ``(B) the actual costs of the supplemental 
                educational services received by the child.
            ``(7) Funds provided by state educational agency.--
        Each State educational agency may use funds that the 
        agency reserves under this part, and part A of title V, 
        to assist local educational agencies that do not have 
        sufficient funds to provide services under this 
        subsection for all eligible students requesting such 
        services.
            ``(8) Duration.--The local educational agency shall 
        continue to provide supplemental educational services 
        to a child receiving such services under this 
        subsection until the end of the school year in which 
        such services were first received.
            ``(9) Prohibition.--Nothing contained in this 
        subsection shall permit the making of any payment for 
        religious worship or instruction.
            ``(10) Waiver.--
                    ``(A) Requirement.--At the request of a 
                local educational agency, a State educational 
                agency may waive, in whole or in part, the 
                requirement of this subsection to provide 
                supplemental educational services if the State 
                educational agency determines that--
                            ``(i) none of the providers of 
                        those services on the list approved by 
                        the State educational agency under 
                        paragraph (4)(C) makes those services 
                        available in the area served by the 
                        local educational agency or within a 
                        reasonable distance of that area; and
                            ``(ii) the local educational agency 
                        provides evidence that it is not able 
                        to provide those services.
                    ``(B) Notification.--The State educational 
                agency shall notify the local educational 
                agency, within 30 days of receiving the local 
                educational agency's request for a waiver under 
                subparagraph (A), whether the request is 
                approved or disapproved and, if disapproved, 
                the reasons for the disapproval, in writing.
            ``(11) Special rule.--If State law prohibits a 
        State educational agency from carrying out one or more 
        of its responsibilities under paragraph (4) with 
        respect to those who provide, or seek approval to 
        provide, supplemental educational services, each local 
        educational agency in the State shall carry out those 
        responsibilities with respect to its students who are 
        eligible for those services.
            ``(12) Definitions.--In this subsection--
                    ``(A) the term `eligible child' means a 
                child from a low-income family, as determined 
                by the local educational agency for purposes of 
                allocating funds to schools under section 
                1113(c)(1);
                    ``(B) the term `provider' means a non-
                profit entity, a for-profit entity, or a local 
                educational agency that--
                            ``(i) has a demonstrated record of 
                        effectiveness in increasing student 
                        academic achievement;
                            ``(ii) is capable of providing 
                        supplemental educational services that 
                        are consistent with the instructional 
                        program of the local educational agency 
                        and the academic standards described 
                        under section 1111; and
                            ``(iii) is financially sound; and
                    ``(C) the term `supplemental educational 
                services' means tutoring and other supplemental 
                academic enrichment services that are--
                            ``(i) in addition to instruction 
                        provided during the school day; and
                            ``(ii) are of high quality, 
                        research-based, and specifically 
                        designed to increase the academic 
                        achievement of eligible children on the 
                        academic assessments required under 
                        section 1111 and attain proficiency in 
                        meeting the State's academic 
                        achievement standards.
    ``(f) Schools and LEAs Previously Identified for 
Improvement or Corrective Action.--
            ``(1) Schools.--
                    ``(A) School improvement.--
                            ``(i) Schools in school-improvement 
                        status before date of enactment.--Any 
                        school that was in the first year of 
                        school improvement status under this 
                        section on the day preceding the date 
                        of enactment of the No Child Left 
                        Behind Act of 2001 (as this section was 
                        in effect on such day) shall be treated 
                        by the local educational agency as a 
                        school that is in the first year of 
                        school improvement status under 
                        paragraph (1).
                            ``(ii) Schools in school-
                        improvement status for 2 or more years 
                        before date of enactment.--Any school 
                        that was in school improvement status 
                        under this section for 2 or more 
                        consecutive school years preceding the 
                        date of enactment of the No Child Left 
                        Behind Act of 2001 (as this section was 
                        in effect on such day) shall be treated 
                        by the local educational agency as a 
                        school described in subsection (b)(5).
                    ``(B) Corrective action.--Any school that 
                was in corrective action status under this 
                section on the day preceding the date of 
                enactment of the No Child Left Behind Act of 
                2001 (as this section was in effect on such 
                day) shall be treated by the local educational 
                agency as a school described in paragraph (7).
            ``(2) LEAs.--
                    ``(A) LEA improvement.--A State shall 
                identify for improvement under subsection 
                (c)(3) any local educational agency that was in 
                improvement status under this section as this 
                section was in effect on the day preceding the 
                date of enactment of the No Child Left Behind 
                Act of 2001.
                    ``(B) Corrective action.--A State shall 
                identify for corrective action under subsection 
                (c)(10) any local educational agency that was 
                in corrective action status under this section 
                as this section was in effect on the day 
                preceding the date of enactment of the No Child 
                Left Behind Act of 2001.
                    ``(C) Special rule.--For the schools and 
                other local educational agencies described 
                under paragraphs (1) and (2), as required, the 
                State shall ensure that public school choice in 
                accordance with subparagraphs (b)(1)(E) and (F) 
                and supplemental education services in 
                accordance with subsection (e) are provided not 
                later than the first day of the 2002-2003 
                school year.
                    ``(D) Transition.--With respect to a 
                determination that a local educational agency 
                has for 2 consecutive years failed to make 
                adequate yearly progress as defined in the 
                State plan under section 1111(b)(2), such 
                determination shall include in such 2-year 
                period any continuous period of time 
                immediately preceding the date of enactment of 
                the No Child Left Behind Act of 2001 during 
                which the agency has failed to make such 
                progress.
    ``(g) Schools Funded by the Bureau of Indian Affairs.--
            ``(1) Adequate yearly progress for bureau funded 
        schools.--
                    ``(A) Development of definition.--
                            ``(i) Definition.--The Secretary of 
                        the Interior, in consultation with the 
                        Secretary if the Secretary of Interior 
                        requests the consultation, using the 
                        process set out in section 1138(b) of 
                        the Education Amendments of 1978, shall 
                        define adequate yearly progress, 
                        consistent with section 1111(b), for 
                        the schools funded by the Bureau of 
                        Indian Affairs on a regional or tribal 
                        basis, as appropriate, taking into 
                        account the unique circumstances and 
                        needs of such schools and the students 
                        served by such schools.
                            ``(ii) Use of definition.--The 
                        Secretary of the Interior, consistent 
                        with clause (i), may use the definition 
                        of adequate yearly progress that the 
                        State in which the school that is 
                        funded by the Bureau is located uses 
                        consistent with section 1111(b), or in 
                        the case of schools that are located in 
                        more than 1 State, the Secretary of the 
                        Interior may use whichever State 
                        definition of adequate yearly progress 
                        that best meets the unique 
                        circumstances and needs of such school 
                        or schools and the students the schools 
                        serve.
                    ``(B) Waiver.--The tribal governing body or 
                school board of a school funded by the Bureau 
                of Indian Affairs may waive, in part or in 
                whole, the definition of adequate yearly 
                progress established pursuant to paragraph (A) 
                where such definition is determined by such 
                body or school board to be inappropriate. If 
                such definition is waived, the tribal governing 
                body or school board shall, within 60 days 
                thereafter, submit to the Secretary of Interior 
                a proposal for an alternative definition of 
                adequate yearly progress, consistent with 
                section 1111(b), that takes into account the 
                unique circumstances and needs of such school 
                or schools and the students served. The 
                Secretary of the Interior, in consultation with 
                the Secretary if the Secretary of Interior 
                requests the consultation, shall approve such 
                alternative definition unless the Secretary 
                determines that the definition does not meet 
                the requirements of section 1111(b), taking 
                into account the unique circumstances and needs 
                of such school or schools and the students 
                served.
                    ``(C) Technical assistance.--The Secretary 
                of Interior shall, in consultation with the 
                Secretary if the Secretary of Interior requests 
                the consultation, either directly or through a 
                contract, provide technical assistance, upon 
                request, to a tribal governing body or school 
                board of a school funded by the Bureau of 
                Indian Affairs that seeks to develop an 
                alternative definition of adequate yearly 
                progress.
            ``(2) Accountability for bia schools.--For the 
        purposes of this section, schools funded by the Bureau 
        of Indian Affairs shall be considered schools subject 
        to subsection (b), as specifically provided for in this 
        subsection, except that such schools shall not be 
        subject to subsection (c), or the requirements to 
        provide public school choice and supplemental 
        educational services under subsections (b) and (e).
            ``(3) School improvement for bureau schools.--
                    ``(A) Contract and grant schools.--For a 
                school funded by the Bureau of Indian Affairs 
                which is operated under a contract issued by 
                the Secretary of the Interior pursuant to the 
                Indian Self-Determination Act (25 U.S.C. 450 et 
                seq.) or under a grant issued by the Secretary 
                of the Interior pursuant to the Tribally 
                Controlled Schools Act of 1988 (25 U.S.C. 2501 
                et seq.), the school board of such school shall 
                be responsible for meeting the requirements of 
                subsection (b) relating to development and 
                implementation of any school improvement plan 
                as described in subsections (b)(1) through 
                (b)(3), and subsection (b)(5), other than 
                subsection (b)(1)(E). The Bureau of Indian 
                Affairs shall be responsible for meeting the 
                requirements of subsection (b)(4) relating to 
                technical assistance.
                    ``(B) Bureau operated schools.--For schools 
                operated by the Bureau of Indian Affairs, the 
                Bureau shall be responsible for meeting the 
                requirements of subsection (b) relating to 
                development and implementation of any school 
                improvement plan as described in subsections 
                (b)(1) through (b)(5), other than subsection 
                (b)(1)(E).
            ``(4) Corrective action and restructuring for 
        bureau funded schools.--
                    ``(A) Contract and grant schools.--For a 
                school funded by the Bureau of Indian Affairs 
                which is operated under a contract issued by 
                the Secretary of the Interior pursuant to the 
                Indian Self-Determination Act (25 U.S.C. 450 et 
                seq.) or under a grant issued by the Secretary 
                of the Interior pursuant to the Tribally 
                Controlled Schools Act of 1988 (25 U.S.C. 2501 
                et seq.), the school board of such school shall 
                be responsible for meeting the requirements of 
                subsection (b) relating to corrective action 
                and restructuring as described in subsection 
                (b)(7) and (b)(8). Any action taken by such 
                school board under subsection (b)(7) or (b)(8) 
                shall take into account the unique 
                circumstances and structure of the Bureau of 
                Indian Affairs-funded school system and the 
                laws governing that system.
                    ``(B) Bureau operated schools.--For schools 
                operated by the Bureau of Indian Affairs, the 
                Bureau shall be responsible for meeting the 
                requirements of subsection (b) relating to 
                corrective action and restructuring as 
                described in subsection (b)(7) and (b)(8). Any 
                action taken by the Bureau under subsection 
                (b)(7) or (b)(8) shall take into account the 
                unique circumstances and structure of the 
                Bureau of Indian Affairs-funded school system 
                and the laws governing that system.
            ``(5) Annual report.--On an annual basis, the 
        Secretary of the Interior shall report to the Secretary 
        of Education and to the appropriate committees of 
        Congress regarding any schools funded by the Bureau of 
        Indian Affairs which have been identified for school 
        improvement. Such report shall include--
                    ``(A) the identity of each school;
                    ``(B) a statement from each affected school 
                board regarding the factors that lead to such 
                identification; and
                    ``(C) an analysis by the Secretary of the 
                Interior, in consultation with the Secretary if 
                the Secretary of Interior requests the 
                consultation, as to whether sufficient 
                resources were available to enable such school 
                to achieve adequate yearly progress.
    ``(h) Other Agencies.--After receiving the notice described 
in subsection (b)(14)(D), the Secretary may notify, to the 
extent feasible and necessary as determined by the Secretary, 
other relevant Federal agencies regarding the major factors 
that were determined by the State educational agency to have 
significantly affected student academic achievement.

``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

    ``(a) System for Support.--
            ``(1) In general.--Each State shall establish a 
        statewide system of intensive and sustained support and 
        improvement for local educational agencies and schools 
        receiving funds under this part, in order to increase 
        the opportunity for all students served by those 
        agencies and schools to meet the State's academic 
        content standards and student academic achievement 
        standards.
            ``(2) Priorities.--In carrying out this subsection, 
        a State shall--
                    ``(A) first, provide support and assistance 
                to local educational agencies with schools 
                subject to corrective action under section 1116 
                and assist those schools, in accordance with 
                section 1116(b)(11), for which a local 
                educational agency has failed to carry out its 
                responsibilities under paragraphs (7) and (8) 
                of section 1116(b);
                    ``(B) second, provide support and 
                assistance to other local educational agencies 
                with schools identified as in need of 
                improvement under section 1116(b); and
                    ``(C) third, provide support and assistance 
                to other local educational agencies and schools 
                participating under this part that need that 
                support and assistance in order to achieve the 
                purpose of this part.
            ``(3) Regional centers.--Such a statewide system 
        shall, to the extent practicable, work with and receive 
        support and assistance from the comprehensive regional 
        technical assistance centers and the regional 
        educational laboratories under section 941(h) of the 
        Educational Research, Development, Dissemination, and 
        Improvement Act of 1994, or other providers of 
        technical assistance.
            ``(4) Statewide system.--
                    ``(A) In order to achieve the purpose 
                described in paragraph (1), the statewide 
                system shall include, at a minimum, the 
                following approaches:
                            ``(i) Establishing school support 
                        teams in accordance with subparagraph 
                        (C) for assignment to, and working in, 
                        schools in the State that are described 
                        in paragraph (2).
                            ``(ii) Providing such support as 
                        the State educational agency determines 
                        necessary and available in order to 
                        ensure the effectiveness of such teams.
                            ``(iii) Designating and using 
                        distinguished teachers and principals 
                        who are chosen from schools served 
                        under this part that have been 
                        especially successful in improving 
                        academic achievement.
                            ``(iv) Devising additional 
                        approaches to providing the assistance 
                        described in paragraph (1), such as 
                        providing assistance through 
                        institutions of higher education and 
                        educational service agencies or other 
                        local consortia, and private providers 
                        of scientifically based technical 
                        assistance.
                    ``(B) Priority.--The State educational 
                agency shall give priority to the approach 
                described in clause (i) of subparagraph (A).
            ``(5) School support teams.--
                    ``(A) Composition.--Each school support 
                team established under this section shall be 
                composed of persons knowledgeable about 
                scientifically based research and practice on 
                teaching and learning and about successful 
                schoolwide projects, school reform, and 
                improving educational opportunities for low-
                achieving students, including--
                            ``(i) highly qualified or 
                        distinguished teachers and principals;
                            ``(ii) pupil services personnel;
                            ``(iii) parents;
                            ``(iv) representatives of 
                        institutions of higher education;
                            ``(v) representatives of regional 
                        educational laboratories or 
                        comprehensive regional technical 
                        assistance centers;
                            ``(vi) representatives of outside 
                        consultant groups; or
                            ``(vii) other individuals as the 
                        State educational agency, in 
                        consultation with the local educational 
                        agency, may determine appropriate.
                    ``(B) Functions.--Each school support team 
                assigned to a school under this section shall--
                            ``(i) review and analyze all facets 
                        of the school's operation, including 
                        the design and operation of the 
                        instructional program, and assist the 
                        school in developing recommendations 
                        for improving student performance in 
                        that school;
                            ``(ii) collaborate with parents and 
                        school staff and the local educational 
                        agency serving the school in the 
                        design, implementation, and monitoring 
                        of a plan that, if fully implemented, 
                        can reasonably be expected to improve 
                        student performance and help the school 
                        meet its goals for improvement, 
                        including adequate yearly progress 
                        under section 1111(b)(2)(B);
                            ``(iii) evaluate, at least 
                        semiannually, the effectiveness of 
                        school personnel assigned to the 
                        school, including identifying 
                        outstanding teachers and principals, 
                        and make findings and recommendations 
                        to the school, the local educational 
                        agency, and, where appropriate, the 
                        State educational agency; and
                            ``(iv) make additional 
                        recommendations as the school 
                        implements the plan described in clause 
                        (ii) to the local educational agency 
                        and the State educational agency 
                        concerning additional assistance that 
                        is needed by the school or the school 
                        support team.
                    ``(C) Continuation of assistance.--After 1 
                school year, from the beginning of the 
                activities, such school support team, in 
                consultation with the local educational agency, 
                may recommend that the school support team 
                continue to provide assistance to the school, 
                or that the local educational agency or the 
                State educational agency, as appropriate, take 
                alternative actions with regard to the school.
    ``(b) State Recognition.--
            ``(1) Academic achievement awards program.--
                    ``(A) In general.--Each State receiving a 
                grant under this part--
                            ``(i) shall establish a program for 
                        making academic achievement awards to 
                        recognize schools that meet the 
                        criteria described in subparagraph (B); 
                        and
                            ``(ii) as appropriate and as funds 
                        are available under subsection 
                        (c)(2)(A), may financially reward 
                        schools served under this part that 
                        meet the criteria described in clause 
                        (ii).
                    ``(B) Criteria.--The criteria referred to 
                in subparagraph (A) are that a school--
                            ``(i) significantly closed the 
                        achievement gap between the groups of 
                        students described in section 
                        1111(b)(2); or
                            ``(ii) exceeded their adequate 
                        yearly progress, consistent with 
                        section 1111(b)(2), for 2 or more 
                        consecutive years.
            ``(2) Distinguished schools.--Of those schools 
        meeting the criteria described in paragraph (2), each 
        State shall designate as distinguished schools those 
        schools that have made the greatest gains in closing 
        the achievement gap as described in subparagraph (B)(i) 
        or exceeding adequate yearly progress as described in 
        subparagraph (B)(ii). Such distinguished schools may 
        serve as models for and provide support to other 
        schools, especially schools identified for improvement 
        under section 1116, to assist such schools in meeting 
        the State's academic content standards and student 
        academic achievement standards.
            ``(3) Awards to teachers.--A State program under 
        paragraph (1) may also recognize and provide financial 
        awards to teachers teaching in a school described in 
        such paragraph that consistently makes significant 
        gains in academic achievement in the areas in which the 
        teacher provides instruction, or to teachers or 
        principals designated as distinguished under subsection 
        (a)(4)(A)(iii).
    ``(c) Funding.--
            ``(1) In general.--Each State--
                    ``(A) shall use funds reserved under 
                section 1003(a) and may use funds made 
                available under section 1003(g) for the 
                approaches described under subsection 
                (a)(4)(A); and
                    ``(B) shall use State administrative funds 
                authorized under section 1004(a) to establish 
                the statewide system of support described under 
                subsection (a).
            ``(2) Reservations of funds by state.--
                    ``(A) Awards program.--For the purpose of 
                carrying out subsection (b)(1), each State 
                receiving a grant under this part may reserve, 
                from the amount (if any) by which the funds 
                received by the State under subpart 2 for a 
                fiscal year exceed the amount received by the 
                State under that subpart for the preceding 
                fiscal year, not more than 5 percent of such 
                excess amount.
                    ``(B) Teacher awards.--For the purpose of 
                carrying out subsection (b)(3), a State 
                educational agency may reserve such funds as 
                necessary from funds made available under 
                section 2113.
            ``(3) Use within 3 years.--Notwithstanding any 
        other provision of law, the amount reserved under 
        subparagraph (A) by a State for each fiscal year shall 
        remain available to the State until expended for a 
        period not exceeding 3 years receipt of funds.
            ``(4) Special allocation rule for schools in high-
        poverty areas.--
                    ``(A) In general.--Each State shall 
                distribute not less than 75 percent of any 
                amount reserved under paragraph (2)(A) for each 
                fiscal year to schools described in 
                subparagraph (B), or to teachers consistent 
                with subsection (b)(3).
                    ``(B) School described.--A school described 
                in subparagraph) (A) is a school whose student 
                population is in the highest quartile of 
                schools statewide in terms of the percentage of 
                children from low income families.

``SEC. 1118. PARENTAL INVOLVEMENT.

    ``(a) Local Educational Agency Policy.--
            ``(1) In general.--A local educational agency may 
        receive funds under this part only if such agency 
        implements programs, activities, and procedures for the 
        involvement of parents in programs assisted under this 
        part consistent with this section. Such programs, 
        activities, and procedures shall be planned and 
        implemented with meaningful consultation with parents 
        of participating children.
            ``(2) Written policy.--Each local educational 
        agency that receives funds under this part shall 
        develop jointly with, agree on with, and distribute to, 
        parents of participating children a written parent 
        involvement policy. The policy shall be incorporated 
        into the local educational agency's plan developed 
        under section 1112, establish the agency's expectations 
        for parent involvement, and describe how the agency 
        will--
                    ``(A) involve parents in the joint 
                development of the plan under section 1112, and 
                the process of school review and improvement 
                under section 1116;
                    ``(B) provide the coordination, technical 
                assistance, and other support necessary to 
                assist participating schools in planning and 
                implementing effective parent involvement 
                activities to improve student academic 
                achievement and school performance;
                    ``(C) build the schools' and parents' 
                capacity for strong parental involvement as 
                described in subsection (e);
                    ``(D) coordinate and integrate parental 
                involvement strategies under this part with 
                parental involvement strategies under other 
                programs, such as the Head Start program, 
                Reading First program, Early Reading First 
                program, Even Start program, Parents as 
                Teachers program, and Home Instruction Program 
                for Preschool Youngsters, and State-run 
                preschool programs;
                    ``(E) conduct, with the involvement of 
                parents, an annual evaluation of the content 
                and effectiveness of the parental involvement 
                policy in improving the academic quality of the 
                schools served under this part, including 
                identifying barriers to greater participation 
                by parents in activities authorized by this 
                section (with particular attention to parents 
                who are economically disadvantaged, are 
                disabled, have limited English proficiency, 
                have limited literacy, or are of any racial or 
                ethnic minority background), and use the 
                findings of such evaluation to design 
                strategies for more effective parental 
                involvement, and to revise, if necessary, the 
                parental involvement policies described in this 
                section; and
                    ``(F) involve parents in the activities of 
                the schools served under this part.
            ``(3) Reservation.--
                    ``(A) In general.--Each local educational 
                agency shall reserve not less than 1 percent of 
                such agency's allocation under subpart 2 of 
                this part to carry out this section, including 
                promoting family literacy and parenting skills, 
                except that this paragraph shall not apply if 1 
                percent of such agency's allocation under 
                subpart 2 of this part for the fiscal year for 
                which the determination is made is $5,000 or 
                less.
                    ``(B) Parental input.--Parents of children 
                receiving services under this part shall be 
                involved in the decisions regarding how funds 
                reserved under subparagraph (A) are allotted 
                for parental involvement activities.
                    ``(C) Distribution of funds.--Not less than 
                95 percent of the funds reserved under 
                subparagraph (A) shall be distributed to 
                schools served under this part.
    ``(b) School Parental Involvement Policy.--
            ``(1) In general.--Each school served under this 
        part shall jointly develop with, and distribute to, 
        parents of participating children a written parental 
        involvement policy, agreed on by such parents, that 
        shall describe the means for carrying out the 
        requirements of subsections (c) through (f). Parents 
        shall be notified of the policy in an understandable 
        and uniform format and, to the extent practicable, 
        provided in a language the parents can understand. Such 
        policy shall be made available to the local community 
        and updated periodically to meet the changing needs of 
        parents and the school.
            ``(2) Special rule.--If the school has a parental 
        involvement policy that applies to all parents, such 
        school may amend that policy, if necessary, to meet the 
        requirements of this subsection.
            ``(3) Amendment.--If the local educational agency 
        involved has a school district-level parental 
        involvement policy that applies to all parents, such 
        agency may amend that policy, if necessary, to meet the 
        requirements of this subsection.
            ``(4) Parental comments.--If the plan under section 
        1112 is not satisfactory to the parents of 
        participating children, the local educational agency 
        shall submit any parent comments with such plan when 
        such local educational agency submits the plan to the 
        State.
    ``(c) Policy Involvement.--Each school served under this 
part shall--
            ``(1) convene an annual meeting, at a convenient 
        time, to which all parents of participating children 
        shall be invited and encouraged to attend, to inform 
        parents of their school's participation under this part 
        and to explain the requirements of this part, and the 
        right of the parents to be involved;
            ``(2) offer a flexible number of meetings, such as 
        meetings in the morning or evening, and may provide, 
        with funds provided under this part, transportation, 
        child care, or home visits, as such services relate to 
        parental involvement;
            ``(3) involve parents, in an organized, ongoing, 
        and timely way, in the planning, review, and 
        improvement of programs under this part, including the 
        planning, review, and improvement of the school 
        parental involvement policy and the joint development 
        of the schoolwide program plan under section 
        1114(b)(2), except that if a school has in place a 
        process for involving parents in the joint planning and 
        design of the school's programs, the school may use 
        that process, if such process includes an adequate 
        representation of parents of participating children;
            ``(4) provide parents of participating children--
                    ``(A) timely information about programs 
                under this part;
                    ``(B) a description and explanation of the 
                curriculum in use at the school, the forms of 
                academic assessment used to measure student 
                progress, and the proficiency levels students 
                are expected to meet; and
                    ``(C) if requested by parents, 
                opportunities for regular meetings to formulate 
                suggestions and to participate, as appropriate, 
                in decisions relating to the education of their 
                children, and respond to any such suggestions 
                as soon as practicably possible; and
            ``(5) if the schoolwide program plan under section 
        1114(b)(2) is not satisfactory to the parents of 
        participating children, submit any parent comments on 
        the plan when the school makes the plan available to 
        the local educational agency.
    (d) Shared Responsibilities for High Student Academic 
Achievement.--As a component of the school-level parental 
involvement policy developed under subsection (b), each school 
served under this part shall jointly develop with parents for 
all children served under this part a school-parent compact 
that outlines how parents, the entire school staff, and 
students will share the responsibility for improved student 
academic achievement and the means by which the school and 
parents will build and develop a partnership to help children 
achieve the State's high standards. Such compact shall--
            (1) describe the school's responsibility to provide 
        high-quality curriculum and instruction in a supportive 
        and effective learning environment that enables the 
        children served under this part to meet the State's 
        student academic achievement standards, and the ways in 
        which each parent will be responsible for supporting 
        their children's learning, such as monitoring 
        attendance, homework completion, and television 
        watching; volunteering in their child's classroom; and 
        participating, as appropriate, in decisions relating to 
        the education of their children and positive use of 
        extracurricular time; and
            (2) address the importance of communication between 
        teachers and parents on an ongoing basis through, at a 
        minimum--
                    (A) parent-teacher conferences in 
                elementary schools, at least annually, during 
                which the compact shall be discussed as the 
                compact relates to the individual child's 
                achievement;
                    (B) frequent reports to parents on their 
                children's progress; and
                    (C) reasonable access to staff, 
                opportunities to volunteer and participate in 
                their child's class, and observation of 
                classroom activities.
    ``(e) Building Capacity for Involvement.--To ensure 
effective involvement of parents and to support a partnership 
among the school involved, parents, and the community to 
improve student academic achievement, each school and local 
educational agency assisted under this part--
            ``(1) shall provide assistance to parents of 
        children served by the school or local educational 
        agency, as appropriate, in understanding such topics as 
        the State's academic content standards and State 
        student academic achievement standards, State and local 
        academic assessments, the requirements of this part, 
        and how to monitor a child's progress and work with 
        educators to improve the achievement of their children;
            ``(2) shall provide materials and training to help 
        parents to work with their children to improve their 
        children's achievement, such as literacy training and 
        using technology, as appropriate, to foster parental 
        involvement;
            ``(3) shall educate teachers, pupil services 
        personnel, principals, and other staff, with the 
        assistance of parents, in the value and utility of 
        contributions of parents, and in how to reach out to, 
        communicate with, and work with parents as equal 
        partners, implement and coordinate parent programs, and 
        build ties between parents and the school;
            ``(4) shall, to the extent feasible and 
        appropriate, coordinate and integrate parent 
        involvement programs and activities with Head Start, 
        Reading First, Early Reading First, Even Start, the 
        Home Instruction Programs for Preschool Youngsters, the 
        Parents as Teachers Program, and public preschool and 
        other programs, and conduct other activities, such as 
        parent resource centers, that encourage and support 
        parents in more fully participating in the education of 
        their children;
            ``(5) shall ensure that information related to 
        school and parent programs, meetings, and other 
        activities is sent to the parents of participating 
        children in a format and, to the extent practicable, in 
        a language the parents can understand;
            ``(6) may involve parents in the development of 
        training for teachers, principals, and other educators 
        to improve the effectiveness of such training;
            ``(7) may provide necessary literacy training from 
        funds received under this part if the local educational 
        agency has exhausted all other reasonably available 
        sources of funding for such training;
            ``(8) may pay reasonable and necessary expenses 
        associated with local parental involvement activities, 
        including transportation and child care costs, to 
        enable parents to participate in school-related 
        meetings and training sessions;
            ``(9) may train parents to enhance the involvement 
        of other parents;
            ``(10) may arrange school meetings at a variety of 
        times, or conduct in-home conferences between teachers 
        or other educators, who work directly with 
        participating children, with parents who are unable to 
        attend such conferences at school, in order to maximize 
        parental involvement and participation;
            ``(11) may adopt and implement model approaches to 
        improving parental involvement;
            ``(12) may establish a districtwide parent advisory 
        council to provide advice on all matters related to 
        parental involvement in programs supported under this 
        section;
            ``(13) may develop appropriate roles for community-
        based organizations and businesses in parent 
        involvement activities; and
            ``(14) shall provide such other reasonable support 
        for parental involvement activities under this section 
        as parents may request.
    ``(f) Accessibility.--In carrying out the parental 
involvement requirements of this part, local educational 
agencies and schools, to the extent practicable, shall provide 
full opportunities for the participation of parents with 
limited English proficiency, parents with disabilities, and 
parents of migratory children, including providing information 
and school reports required under section 1111 in a format and, 
to the extent practicable, in a language such parents 
understand.
    ``(g) Information From Parental Information and Resource 
Centers.--In a State where a parental information and resource 
center is established to provide training, information, and 
support to parents and individuals who work with local parents, 
local educational agencies, and schools receiving assistance 
under this part, each local educational agency or school that 
receives assistance under this part and is located in the State 
shall assist parents and parental organizations by informing 
such parents and organizations of the existence and purpose of 
such centers.
    ``(h) Review.--The State educational agency shall review 
the local educational agency's parental involvement policies 
and practices to determine if the policies and practices meet 
the requirements of this section.

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

    ``(a) Teacher Qualifications and Measurable Objectives.--
            ``(1) In general.--Beginning with the first day of 
        the first school year after the date of enactment of 
        the No Child Left Behind Act of 2001, each local 
        educational agency receiving assistance under this part 
        shall ensure that all teachers hired after such day and 
        teaching in a program supported with funds under this 
        part are highly qualified.
            ``(2) State plan.--As part of the plan described in 
        section 1111, each State educational agency receiving 
        assistance under this part shall develop a plan to 
        ensure that all teachers teaching in core academic 
        subjects within the State are highly qualified not 
        later than the end of the 2005-2006 school year. Such 
        plan shall establish annual measurable objectives for 
        each local educational agency and school that, at a 
        minimum--
                    ``(A) shall include an annual increase in 
                the percentage of highly qualified teachers at 
                each local educational agency and school, to 
                ensure that all teachers teaching in core 
                academic subjects in each public elementary 
                school and secondary school are highly 
                qualified not later than the end of the 2005-
                2006 school year;
                    ``(B) shall include an annual increase in 
                the percentage of teachers who are receiving 
                high-quality professional development to enable 
                such teachers to become highly qualified and 
                successful classroom teachers; and
                    ``(C) may include such other measures as 
                the State educational agency determines to be 
                appropriate to increase teacher qualifications.
            ``(3) Local plan.--As part of the plan described in 
        section 1112, each local educational agency receiving 
        assistance under this part shall develop a plan to 
        ensure that all teachers teaching within the school 
        district served by the local educational agency are 
        highly qualified not later than the end of the 2005-
        2006 school year.
    ``(b) Reports.--
            ``(1) Annual state and local reports.--
                    ``(A) Local reports.--Each State 
                educational agency described in subsection 
                (a)(2) shall require each local educational 
                agency receiving funds under this part to 
                publicly report, each year, beginning with the 
                2002-2003 school year, the annual progress of 
                the local educational agency as a whole and of 
                each of the schools served by the agency, in 
                meeting the measurable objectives described in 
                subsection (a)(2).
                    ``(B) State reports.--Each State 
                educational agency receiving assistance under 
                this part shall prepare and submit each year, 
                beginning with the 2002-2003 school year, a 
                report to the Secretary, describing the State 
                educational agency's progress in meeting the 
                measurable objectives described in subsection 
                (a)(2).
                    ``(C) Information from other reports.--A 
                State educational agency or local educational 
                agency may submit information from the reports 
                described in section 1111(h) for the purposes 
                of this subsection, if such report is modified, 
                as may be necessary, to contain the information 
                required by this subsection, and may submit 
                such information as a part of the reports 
                required under section 1111(h).
            ``(2) Annual reports by the secretary.--Each year, 
        beginning with the 2002-2003 school year, the Secretary 
        shall publicly report the annual progress of State 
        educational agencies, local educational agencies, and 
        schools, in meeting the measurable objectives described 
        in subsection (a)(2).
    ``(c) New Paraprofessionals.--
            ``(1) In general.--Each local educational agency 
        receiving assistance under this part shall ensure that 
        all paraprofessionals hired after the date of enactment 
        of the No Child Left Behind Act of 2001 and working in 
        a program supported with funds under this part shall 
        have--
                    ``(A) completed at least 2 years of study 
                at an institution of higher education;
                    ``(B) obtained an associate's (or higher) 
                degree; or
                    ``(C) met a rigorous standard of quality 
                and can demonstrate, through a formal State or 
                local academic assessment--
                            ``(i) knowledge of, and the ability 
                        to assist in instructing, reading, 
                        writing, and mathematics; or
                            ``(ii) knowledge of, and the 
                        ability to assist in instructing, 
                        reading readiness, writing readiness, 
                        and mathematics readiness, as 
                        appropriate.
            ``(2) Clarification.--The receipt of a secondary 
        school diploma (or its recognized equivalent) shall be 
        necessary but not sufficient to satisfy the 
        requirements of paragraph (1)(C).
    ``(d) Existing Paraprofessionals.--Each local educational 
agency receiving assistance under this part shall ensure that 
all paraprofessionals hired before the date of enactment of the 
No Child Left Behind Act of 2001, and working in a program 
supported with funds under this part shall, not later than 4 
years after the date of enactment satisfy the requirements of 
subsection (b).
    ``(e) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (c) and (d) shall not apply to a 
paraprofessional--
            ``(1) who is proficient in English and a language 
        other than English and who provides services primarily 
        to enhance the participation of children in programs 
        under this part by acting as a translator; or
            ``(2) whose duties consist solely of conducting 
        parental involvement activities consistent with section 
        1118.
    ``(f) General Requirement for All Paraprofessionals.--Each 
local educational agency receiving assistance under this part 
shall ensure that all paraprofessionals working in a program 
supported with funds under this part, regardless of the 
paraprofessionals' hiring date, have earned a secondary school 
diploma or its recognized equivalent.
    ``(g) Duties of Paraprofessionals.--
            ``(1) In general.--Each local educational agency 
        receiving assistance under this part shall ensure that 
        a paraprofessional working in a program supported with 
        funds under this part is not assigned a duty 
        inconsistent with this subsection.
            ``(2) Responsibilities paraprofessionals may be 
        assigned.--A paraprofessional described in paragraph 
        (1) may be assigned--
                    ``(A) to provide one-on-one tutoring for 
                eligible students, if the tutoring is scheduled 
                at a time when a student would not otherwise 
                receive instruction from a teacher;
                    ``(B) to assist with classroom management, 
                such as organizing instructional and other 
                materials;
                    ``(C) to provide assistance in a computer 
                laboratory;
                    ``(D) to conduct parental involvement 
                activities;
                    ``(E) to provide support in a library or 
                media center;
                    ``(F) to act as a translator; or
                    ``(G) to provide instructional services to 
                students in accordance with paragraph (3).
            ``(3) Additional limitations.--A paraprofessional 
        described in paragraph (1)--
                    ``(A) may not provide any instructional 
                service to a student unless the 
                paraprofessional is working under the direct 
                supervision of a teacher consistent with 
                section 1119; and
                    ``(B) may assume limited duties that are 
                assigned to similar personnel who are not 
                working in a program supported with funds under 
                this part, including duties beyond classroom 
                instruction or that do not benefit 
                participating children, so long as the amount 
                of time spent on such duties is the same 
                proportion of total work time as prevails with 
                respect to similar personnel at the same 
                school.
    ``(h) Use of Funds.--A local educational agency receiving 
funds under this part may use such funds to support ongoing 
training and professional development to assist teachers and 
paraprofessionals in satisfying the requirements of this 
section.
    ``(i) Verification of Compliance.--
            ``(1) In general.--In verifying compliance with 
        this section, each local educational agency, at a 
        minimum, shall require that the principal of each 
        school operating a program under section 1114 or 1115 
        attest annually in writing as to whether such school is 
        in compliance with the requirements of this section.
            ``(2) Availability of information.--Copies of 
        attestations under paragraph (1)--
                    ``(A) shall be maintained at each school 
                operating a program under section 1114 or 1115 
                and at the main office of the local educational 
                agency; and
                    ``(B) shall be available to any member of 
                the general public on request.
    ``(j) Combinations of Funds.--Funds provided under this 
part that are used for professional development purposes may be 
combined with funds provided under title II of this Act, other 
Acts, and other sources.
    ``(k) Special Rule.--Except as provided in subsection (l), 
no State educational agency shall require a school or a local 
educational agency to expend a specific amount of funds for 
professional development activities under this part, except 
that this paragraph shall not apply with respect to 
requirements under section 1116(c)(3).
    ``(l) Minimum Expenditures.--Each local educational agency 
that receives funds under this part shall use not less than 5 
percent, or more than 10 percent, of such funds for each of 
fiscal years 2002 and 2003, and not less than 5 percent of the 
funds for each subsequent fiscal year, for professional 
development activities to ensure that teachers who are not 
highly qualified become highly qualified not later than the end 
of the 2005-2006 school year.

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

    ``(a) General Requirement.--
            ``(1) In general.--To the extent consistent with 
        the number of eligible children identified under 
        section 1115(b) in the school district served by a 
        local educational agency who are enrolled in private 
        elementary schools and secondary schools, a local 
        educational agency shall, after timely and meaningful 
        consultation with appropriate private school officials, 
        provide such children, on an equitable basis, special 
        educational services or other benefits under this part 
        (such as dual enrollment, educational radio and 
        television, computer equipment and materials, other 
        technology, and mobile educational services and 
        equipment) that address their needs, and shall ensure 
        that teachers and families of the children participate, 
        on an equitable basis, in services and activities 
        developed pursuant to sections 1118 and 1119.
            ``(2) Secular, neutral, nonideological.--Such 
        educational services or other benefits, including 
        materials and equipment, shall be secular, neutral, and 
        nonideological.
            ``(3) Equity.--Educational services and other 
        benefits for such private school children shall be 
        equitable in comparison to services and other benefits 
        for public school children participating under this 
        part, and shall be provided in a timely manner.
            ``(4) Expenditures.--Expenditures for educational 
        services and other benefits to eligible private school 
        children shall be equal to the proportion of funds 
        allocated to participating school attendance areas 
        based on the number of children from low-income 
        families who attend private schools, which the local 
        educational agency may determine each year or every 2 
        years.
            ``(5) Provision of services.--The local educational 
        agency may provide services under this section directly 
        or through contracts with public and private agencies, 
        organizations, and institutions.
    ``(b) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a local educational agency shall consult 
        with appropriate private school officials during the 
        design and development of such agency's programs under 
        this part, on issues such as--
                    ``(A) how the children's needs will be 
                identified;
                    ``(B) what services will be offered;
                    ``(C) how, where, and by whom the services 
                will be provided;
                    ``(D) how the services will be academically 
                assessed and how the results of that assessment 
                will be used to improve those services;
                    ``(E) the size and scope of the equitable 
                services to be provided to the eligible private 
                school children, and the proportion of funds 
                that is allocated under subsection (a)(4) for 
                such services;
                    ``(F) the method or sources of data that 
                are used under subsection (c) and section 
                1113(c)(1) to determine the number of children 
                from low-income families in participating 
                school attendance areas who attend private 
                schools;
                    ``(G) how and when the agency will make 
                decisions about the delivery of services to 
                such children, including a thorough 
                consideration and analysis of the views of the 
                private school officials on the provision of 
                services through a contract with potential 
                third-party providers; and
                    ``(H) how, if the agency disagrees with the 
                views of the private school officials on the 
                provision of services through a contract, the 
                local educational agency will provide in 
                writing to such private school officials an 
                analysis of the reasons why the local 
                educational agency has chosen not to use a 
                contractor.
            ``(2) Timing.--Such consultation shall include 
        meetings of agency and private school officials and 
        shall occur before the local educational agency makes 
        any decision that affects the opportunities of eligible 
        private school children to participate in programs 
        under this part. Such meetings shall continue 
        throughout implementation and assessment of services 
        provided under this section.
            ``(3) Discussion.--Such consultation shall include 
        a discussion of service delivery mechanisms a local 
        educational agency can use to provide equitable 
        services to eligible private school children.
            ``(4) Documentation.--Each local educational agency 
        shall maintain in the agency's records and provide to 
        the State educational agency involved a written 
        affirmation signed by officials of each participating 
        private school that the consultation required by this 
        section has occurred. If such officials do not provide 
        such affirmation within a reasonable period of time, 
        the local educational agency shall forward the 
        documentation that such consultation has taken place to 
        the State educational agency.
            ``(5) Compliance.--
                    ``(A) In general.--A private school 
                official shall have the right to complain to 
                the State educational agency that the local 
                educational agency did not engage in 
                consultation that was meaningful and timely, or 
                did not give due consideration to the views of 
                the private school official.
                    ``(B) Procedure.--If the private school 
                official wishes to complain, the official shall 
                provide the basis of the noncompliance with 
                this section by the local educational agency to 
                the State educational agency, and the local 
                educational agency shall forward the 
                appropriate documentation to the State 
                educational agency.
    ``(c) Allocation for Equitable Service to Private School 
Students.--
            ``(1) Calculation.--A local educational agency 
        shall have the final authority, consistent with this 
        section, to calculate the number of children, ages 5 
        through 17, who are from low-income families and attend 
        private schools by--
                    ``(A) using the same measure of low income 
                used to count public school children;
                    ``(B) using the results of a survey that, 
                to the extent possible, protects the identity 
                of families of private school students, and 
                allowing such survey results to be extrapolated 
                if complete actual data are unavailable;
                    ``(C) applying the low-income percentage of 
                each participating public school attendance 
                area, determined pursuant to this section, to 
                the number of private school children who 
                reside in that school attendance area; or
                    ``(D) using an equated measure of low 
                income correlated with the measure of low 
                income used to count public school children.
            ``(2) Complaint process.--Any dispute regarding 
        low-income data for private school students shall be 
        subject to the complaint process authorized in section 
        9505.
    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds provided 
        under this part, and title to materials, equipment, and 
        property purchased with such funds, shall be in a 
        public agency, and a public agency shall administer 
        such funds materials, equipment, and property.
            ``(2) Provision of services.--
                    ``(A) Provider.--The provision of services 
                under this section shall be provided--
                            ``(i) by employees of a public 
                        agency; or
                            ``(ii) through contract by such 
                        public agency with an individual, 
                        association, agency, or organization.
                    ``(B) Requirement.--In the provision of 
                such services, such employee, individual, 
                association, agency, or organization shall be 
                independent of such private school and of any 
                religious organization, and such employment or 
                contract shall be under the control and 
                supervision of such public agency.
    ``(e) Standards for a Bypass.--If a local educational 
agency is prohibited by law from providing for the 
participation in programs on an equitable basis of eligible 
children enrolled in private elementary schools and secondary 
schools, or if the Secretary determines that a local 
educational agency has substantially failed or is unwilling, to 
provide for such participation, as required by this section, 
the Secretary shall--
            ``(1) waive the requirements of this section for 
        such local educational agency;
            ``(2) arrange for the provision of services to such 
        children through arrangements that shall be subject to 
        the requirements of this section and sections 9503 and 
        9504; and
            ``(3) in making the determination under this 
        subsection, consider one or more factors, including the 
        quality, size, scope, and location of the program and 
        the opportunity of eligible children to participate.

``SEC. 1120A. FISCAL REQUIREMENTS.

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

``SEC. 1120B. COORDINATION REQUIREMENTS.

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

                        ``Subpart 2--Allocations

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

    ``(a) Reservation of Funds.--From the amount appropriated 
for payments to States for any fiscal year under section 
1002(a) and 1125A(f), the Secretary shall reserve a total of 1 
percent to provide assistance to--
            ``(1) the outlying areas in the amount determined 
        in accordance with subsection (b); and
            ``(2) the Secretary of the Interior in the amount 
        necessary to make payments pursuant to subsection (d).
    ``(b) Assistance to Outlying Areas.--
            ``(1) Funds reserved.--From the amount made 
        available for any fiscal year under subsection (a), the 
        Secretary shall award grants to local educational 
        agencies in the outlying areas.
            ``(2) Competitive grants.--Until each appropriate 
        outlying area enters into an agreement for extension of 
        United States educational assistance under the Compact 
        of Free Association after the date of enactment of the 
        No Child Left Behind Act of 2001, the Secretary shall 
        carry out the competition described in paragraph (3), 
        except that the amount reserved to carry out such 
        competition shall not exceed $5,000,000.
            ``(3) Limitation for competitive grants.--
                    ``(A) Competitive grants.--The Secretary 
                shall use funds described in paragraph (2) to 
                award grants to the outlying areas and freely 
                associated States to carry out the purposes of 
                this part.
                    ``(B) Award basis.--The Secretary shall 
                award grants under subparagraph (A) on a 
                competitive basis, taking into consideration 
                the recommendations of the Pacific Region 
                Educational Laboratory in Honolulu, Hawaii.
                    ``(C) Uses.--Except as provided in 
                subparagraph (D), grant funds awarded under 
                this paragraph may be used only--
                            ``(i) for programs described in 
                        this Act, including teacher training, 
                        curriculum development, instructional 
                        materials, or general school 
                        improvement and reform; and
                            ``(ii) to provide direct 
                        educational services that assist all 
                        students with meeting challenging State 
                        academic content standards.
                    ``(D) Administrative costs.--The Secretary 
                may provide not more than 5 percent of the 
                amount reserved for grants under this paragraph 
                to pay the administrative costs of the Pacific 
                Region Educational Laboratory under 
                subparagraph (B).
            ``(4) Special rule.--The provisions of Public Law 
        95-134, permitting the consolidation of grants by the 
        outlying areas, shall not apply to funds provided to 
        the freely associated States under this section.
    ``(c) Definitions.--For the purpose of subsections (a) and 
(b)--
            ``(1) the term ``freely associated States'' means 
        the Republic of the Marshall Islands, the Federated 
        States of Micronesia, and the Republic of Palau; and
            ``(2) the term ``outlying area'' means the United 
        States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
    ``(d) Allotment to the Secretary of the Interior.--
            ``(1) In general.--The amount allotted for payments 
        to the Secretary of the Interior under subsection 
        (a)(2) for any fiscal year shall be, as determined 
        pursuant to criteria established by the Secretary, the 
        amount necessary to meet the special educational needs 
        of--
                    ``(A) Indian children on reservations 
                served by elementary schools and secondary 
                schools for Indian children operated or 
                supported by the Department of the Interior; 
                and
                    ``(B) out-of-State Indian children in 
                elementary schools and secondary schools in 
                local educational agencies under special 
                contracts with the Department of the Interior.
            ``(2) Payments.--From the amount allotted for 
        payments to the Secretary of the Interior under 
        subsection (a)(2), the Secretary of the Interior shall 
        make payments to local educational agencies, on such 
        terms as the Secretary determines will best carry out 
        the purposes of this part, with respect to out-of-State 
        Indian children described in paragraph (1). The amount 
        of such payment may not exceed, for each such child, 
        the greater of--
                    ``(A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is 
                located; or
                    ``(B) 48 percent of such expenditure in the 
                United States.

``SEC. 1122. ALLOCATIONS TO STATES.

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

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

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and 
        puerto rico.--Except as provided in paragraph (4) and 
        in section 1126, the grant that a local educational 
        agency is eligible to receive under this section for a 
        fiscal year is the amount determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this subparagraph shall 
                not be less than 32 percent, or more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational 
                agencies.--The Secretary shall calculate grants 
                under this section on the basis of the number 
                of children counted under subsection (c) for 
                local educational agencies, unless the 
                Secretary and the Secretary of Commerce 
                determine that some or all of those data are 
                unreliable or that their use would be otherwise 
                inappropriate, in which case--
                            ``(i) the 2 Secretaries shall 
                        publicly disclose the reasons for their 
                        determination in detail; and
                            ``(ii) paragraph (3) shall apply.
                    ``(B) Allocations to large and small local 
                educational agencies.--
                            ``(i) For any fiscal year to which 
                        this paragraph applies, the Secretary 
                        shall calculate grants under this 
                        section for each local educational 
                        agency.
                            ``(ii) The amount of a grant under 
                        this section for each large local 
                        educational agency shall be the amount 
                        determined under clause (i).
                            ``(iii) For small local educational 
                        agencies, the State educational agency 
                        may either--
                                    ``(I) distribute grants 
                                under this section in amounts 
                                determined by the Secretary 
                                under clause (i); or
                                    ``(II) use an alternative 
                                method approved by the 
                                Secretary to distribute the 
                                portion of the State's total 
                                grants under this section that 
                                is based on those small 
                                agencies.
                            ``(iv) An alternative method under 
                        clause (iii)(II) shall be based on 
                        population data that the State 
                        educational agency determines best 
                        reflect the current distribution of 
                        children in poor families among the 
                        State's small local educational 
                        agencies that meet the eligibility 
                        criteria of subsection (b).
                            ``(v) If a small local educational 
                        agency is dissatisfied with the 
                        determination of its grant by the State 
                        educational agency under clause 
                        (iii)(II), it may appeal that 
                        determination to the Secretary, who 
                        shall respond not later than 45 days 
                        after receipt of such appeal.
                            ``(vi) As used in this 
                        subparagraph--
                                    ``(I) the term ``large 
                                local educational agency'' 
                                means a local educational 
                                agency serving an area with a 
                                total population of 20,000 or 
                                more; and
                                    ``(II) the term ``small 
                                local educational agency'' 
                                means a local educational 
                                agency serving an area with a 
                                total population of less than 
                                20,000.
            ``(3) Allocations to counties.--
                    ``(A) Calculation.--For any fiscal year to 
                which this paragraph applies, the Secretary 
                shall calculate grants under this section on 
                the basis of the number of children counted 
                under subsection (c) for counties, and State 
                educational agencies shall suballocate county 
                amounts to local educational agencies, in 
                accordance with regulations issued by the 
                Secretary.
                    ``(B) Direct allocations.--In any State in 
                which a large number of local educational 
                agencies overlap county boundaries, or for 
                which the State believes it has data that would 
                better target funds than allocating them by 
                county, the State educational agency may apply 
                to the Secretary for authority to make the 
                allocations under this subpart for a particular 
                fiscal year directly to local educational 
                agencies without regard to counties.
                    ``(C) Allocations to local educational 
                agencies.--If the Secretary approves the State 
                educational agency's application under 
                subparagraph (B), the State educational agency 
                shall provide the Secretary an assurance that 
                such allocations shall be made--
                            ``(i) using precisely the same 
                        factors for determining a grant as are 
                        used under this subpart; or
                            ``(ii) using data that the State 
                        educational agency submits to the 
                        Secretary for approval that more 
                        accurately target poverty.
                    ``(D) Appeal.--The State educational agency 
                shall provide the Secretary an assurance that 
                it will establish a procedure through which a 
                local educational agency that is dissatisfied 
                with its determinations under subparagraph (B) 
                may appeal directly to the Secretary for a 
                final determination.
            ``(4) Puerto rico.--
                    ``(A) In general.--For each fiscal year, 
                the grant that the Commonwealth of Puerto Rico 
                shall be eligible to receive under this section 
                shall be the amount determined by multiplying 
                the number of children counted under subsection 
                (c) for the Commonwealth of Puerto Rico by the 
                product of--
                            ``(i) subject to subparagraph (B), 
                        the percentage that the average per-
                        pupil expenditure in the Commonwealth 
                        of Puerto Rico is of the lowest average 
                        per-pupil expenditure of any of the 50 
                        States; and
                            ``(ii) 32 percent of the average 
                        per-pupil expenditure in the United 
                        States.
                    ``(B) Minimum percentage.--The percentage 
                in subparagraph (A)(i) shall not be less than--
                            ``(i) for fiscal year 2002, 77.5 
                        percent;
                            ``(ii) for fiscal year 2003, 80.0 
                        percent;
                            ``(iii) for fiscal year 2004, 82.5 
                        percent;
                            ``(iv) for fiscal year 2005, 85.0 
                        percent;
                            ``(v) for fiscal year 2006, 92.5 
                        percent; and
                            ``(vi) for fiscal year 2007 and 
                        succeeding fiscal years, 100.0 percent.
                    ``(C) Limitation.--If the application of 
                subparagraph (B) would result in any of the 50 
                States or the District of Columbia receiving 
                less under this subpart than it received under 
                this subpart for the preceding fiscal year, the 
                percentage in subparagraph (A) shall be the 
                greater of--
                            ``(i) the percentage in 
                        subparagraph (A)(i);
                            ``(ii) the percentage specified in 
                        subparagraph (B) for the preceding 
                        fiscal year; or
                            ``(iii) the percentage used for the 
                        preceding fiscal year.
    ``(b) Minimum Number of Children To Qualify.--A local 
educational agency is eligible for a basic grant under this 
section for any fiscal year only if the number of children 
counted under subsection (c) for that agency is both--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age 
        population in the agency's jurisdiction.
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of 
        children to be counted for purposes of this section is 
        the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the 
                poverty level as determined under paragraph 
                (2);
                    ``(B) the number of children (determined 
                under paragraph (4) for either the preceding 
                year as described in that paragraph, or for the 
                second preceding year, as the Secretary finds 
                appropriate) aged 5 to 17, inclusive, in the 
                school district of such agency in institutions 
                for neglected and delinquent children (other 
                than such institutions operated by the United 
                States), but not counted pursuant to subpart 1 
                of part D for the purposes of a grant to a 
                State agency, or being supported in foster 
                homes with public funds; and
                    ``(C) the number of children aged 5 to 17, 
                inclusive, in the school district of such 
                agency from families above the poverty level as 
                determined under paragraph (4).
            ``(2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine 
        the number of children aged 5 to 17, inclusive, from 
        families below the poverty level on the basis of the 
        most recent satisfactory data, described in paragraph 
        (3), available from the Department of Commerce. The 
        District of Columbia and the Commonwealth of Puerto 
        Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains 2 or 
        more counties in their entirety, then each county will 
        be treated as if such county were a separate local 
        educational agency for purposes of calculating grants 
        under this part. The total of grants for such counties 
        shall be allocated to such a local educational agency, 
        which local educational agency shall distribute to 
        schools in each county within such agency a share of 
        the local educational agency's total grant that is no 
        less than the county's share of the population counts 
        used to calculate the local educational agency's grant.
            ``(3) Population updates.--
                    ``(A) In general.--In fiscal year 2002 and 
                each subsequent fiscal year, the Secretary 
                shall use updated data on the number of 
                children, aged 5 to 17, inclusive, from 
                families below the poverty level for counties 
                or local educational agencies, published by the 
                Department of Commerce, unless the Secretary 
                and the Secretary of Commerce determine that 
                the use of the updated population data would be 
                inappropriate or unreliable. If appropriate and 
                reliable data are not available annually, the 
                Secretary shall use data which are updated 
                every 2 years.
                    ``(B) Inappropriate or unreliable data.--If 
                the Secretary and the Secretary of Commerce 
                determine that some or all of the data referred 
                to in subparagraph (A) are inappropriate or 
                unreliable, the Secretary and the Secretary of 
                Commerce shall publicly disclose their reasons.
                    ``(C) Criteria of poverty.--In determining 
                the families that are below the poverty level, 
                the Secretary shall use the criteria of poverty 
                used by the Bureau of the Census in compiling 
                the most recent decennial census, as the 
                criteria have been updated by increases in the 
                Consumer Price Index for All Urban Consumers, 
                published by the Bureau of Labor Statistics.
            ``(4) Other children to be counted.--
                    ``(A) For the purpose of this section, the 
                Secretary shall determine the number of 
                children aged 5 to 17, inclusive, from families 
                above the poverty level on the basis of the 
                number of such children from families receiving 
                an annual income, in excess of the current 
                criteria of poverty, from payments under a 
                State program funded under part A of title IV 
                of the Social Security Act; and in making such 
                determinations, the Secretary shall use the 
                criteria of poverty used by the Bureau of the 
                Census in compiling the most recent decennial 
                census for a family of 4 in such form as those 
                criteria have been updated by increases in the 
                Consumer Price Index for all urban consumers, 
                published by the Bureau of Labor Statistics.
                    ``(B) The Secretary shall determine the 
                number of such children and the number of 
                children aged 5 through 17 living in 
                institutions for neglected or delinquent 
                children, or being supported in foster homes 
                with public funds, on the basis of the caseload 
                data for the month of October of the preceding 
                fiscal year (using, in the case of children 
                described in the preceding sentence, the 
                criteria of poverty and the form of such 
                criteria required by such sentence which were 
                determined for the calendar year preceding such 
                month of October) or, to the extent that such 
                data are not available to the Secretary before 
                January of the calendar year in which the 
                Secretary's determination is made, then on the 
                basis of the most recent reliable data 
                available to the Secretary at the time of such 
                determination.
                    ``(C) Except for the data on children 
                living in institutions for neglected or 
                delinquent children, the Secretary of Health 
                and Human Services shall collect and transmit 
                the information required by this subparagraph 
                to the Secretary not later than January 1 of 
                each year.
                    ``(D) For the purpose of this section, the 
                Secretary shall consider all children who are 
                in correctional institutions to be living in 
                institutions for delinquent children.
            ``(5) Estimate.--When requested by the Secretary, 
        the Secretary of Commerce shall make a special updated 
        estimate of the number of children of such ages who are 
        from families below the poverty level (as determined 
        under paragraph (1)(A)) in each school district, and 
        the Secretary is authorized to pay (either in advance 
        or by way of reimbursement) the Secretary of Commerce 
        the cost of making this special estimate. The Secretary 
        of Commerce shall give consideration to any request of 
        the chief executive of a State for the collection of 
        additional census information.
    ``(d) State Minimum.--Notwithstanding section 1122, the 
aggregate amount allotted for all local educational agencies 
within a State may not be less than the lesser of--
            ``(1) 0.25 percent of the total amount allocated to 
        States under this section for fiscal year 2001, plus 
        0.35 percent of the total amount allocated to States 
        under this section in excess of the amount allocated 
        for fiscal year 2001; or
            ``(2) the average of--
                    ``(A) the amount calculated in paragraph 
                (1), above; and
                    ``(B) the number of children in such State 
                counted under subsection (c) in the fiscal year 
                multiplied by 150 percent of the national 
                average per-pupil payment made with funds 
                available under this section for that year.

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

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) In general.--(A) Except as otherwise provided 
        in this paragraph, each local educational agency which 
        is eligible for a grant under section 1124 for any 
        fiscal year is eligible for an additional grant under 
        this section for that fiscal year if the number of 
        children counted under section 1124(c) in the agency 
        exceeds either--
                    ``(i) 6,500; or
                    ``(ii) 15 percent of the total number of 
                children aged 5 through 17 in the agency.
            ``(B) Notwithstanding section 1122, no State shall 
        receive less than the lesser of--
                    ``(i) 0.25 percent of the total amount 
                allocated to States under this section for 
                fiscal year 2001, plus 0.35 percent of the 
                total amount allocated to States under this 
                section in excess of the amount allocated for 
                fiscal year 2001; or
                    ``(ii) the average of--
                            ``(I) the amount calculated under 
                        clause (i); and
                            ``(II) the greater of--
                                    ``(aa) $340,000; or
                                    ``(bb) the number of 
                                children in such State counted 
                                for purposes of this section in 
                                that fiscal year multiplied by 
                                150 percent of the national 
                                average per-pupil payment made 
                                with funds available under this 
                                section for that year.
            ``(2) Determination.--For each county or local 
        educational agency eligible to receive an additional 
        grant under this section for any fiscal year, the 
        Secretary shall determine the product of--
                    ``(A) the number of children counted under 
                section 1124(c) for that fiscal year; and
                    ``(B) the amount in section 1124(a)(1)(B) 
                for each State except the Commonwealth of 
                Puerto Rico, and the amount in section 
                1124(a)(4) for the Commonwealth of Puerto Rico.
            ``(3) Amount.--The amount of the additional grant 
        for which an eligible local educational agency or 
        county is eligible under this section for any fiscal 
        year shall be an amount which bears the same ratio to 
        the amount available to carry out this section for that 
        fiscal year as the product determined under paragraph 
        (2) for such local educational agency for that fiscal 
        year bears to the sum of such products for all local 
        educational agencies in the United States for that 
        fiscal year.
            ``(4) Local allocations.--(A) Grant amounts under 
        this section shall be determined in accordance with 
        section 1124(a)(2), (3) and (4).
            ``(B) For any fiscal year for which the Secretary 
        allocates funds under this section on the basis of 
        counties, a State may reserve not more than 2 percent 
        of its allocation under this section to make grants to 
        local educational agencies that meet the criteria of 
        paragraph (1)(A)(i) or (ii) and are in ineligible 
        counties that do not meet these criteria.
    ``(b) Small States.--In any State for which on the date of 
enactment of the No Child Left Behind Act of 2001 the number of 
children counted under Section 1124(c) is less than 0.25 
percent of the number of those children counted for all States, 
the State educational agency shall allocate funds under this 
section among the local educational agencies in the State 
either--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and 
        numbers of children counted under section 1124(c), 
        except that only those local educational agencies with 
        concentrations or numbers of children counted under 
        section 1124(c) that exceed the statewide average 
        percentage of such children or the statewide average 
        number of such children shall receive any funds on the 
        basis of this paragraph.

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

    ``(a) Eligibility of Local Educational Agencies.--
            ``(1) In general.--A local educational agency in a 
        State is eligible to receive a targeted grant under 
        this section for any fiscal year if--
                    ``(A) the number of children in the local 
                educational agency counted under section 
                1124(c), before application of the weighted 
                child count described in subsection (c), is at 
                least 10; and
                    ``(B) if the number of children counted for 
                grants under section 1124(c), before 
                application of the weighted child count 
                described in subsection (c), is at least 5 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district 
                of the local educational agency.
            ``(2) Special rule.--For any fiscal year for which 
        the Secretary allocates funds under this section on the 
        basis of counties, funds made available as a result of 
        applying this subsection shall be reallocated by the 
        State educational agency to other eligible local 
        educational agencies in the State in proportion to the 
        distribution of other funds under this section.
    ``(b) Grants for Local Educational Agencies, the District 
of Columbia, and the Commonwealth of Puerto Rico.--
            ``(1) In general.--The amount of the grant that a 
        local educational agency in a State (other than the 
        Commonwealth of Puerto Rico) is eligible to receive 
        under this section for any fiscal year shall be the 
        product of--
                    ``(A) the weighted child count determined 
                under subsection (c); and
                    ``(B) the amount determined under section 
                1124(a)(1)(B).
            ``(2) Puerto rico.--For each fiscal year, the 
        amount of the grant the Commonwealth of Puerto Rico is 
        eligible to receive under this section shall be equal 
        to the number of children counted under subsection (c) 
        for the Commonwealth of Puerto Rico, multiplied by the 
        amount determined in section 1124(a)(4) for the 
        Commonwealth of Puerto Rico.
    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--
                    ``(A) In general.--For each fiscal year for 
                which the Secretary uses county population data 
                to calculate grants, the weighted child count 
                used to determine a county's allocation under 
                this section is the larger of the 2 amounts 
                determined under subparagraphs (B) and (C).
                    ``(B) By percentage of children.--The 
                amount referred to in subparagraph (A) is 
                determined by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) for 
                        that county who constitute not more 
                        than 15.00 percent, inclusive, of the 
                        county's total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                            ``(ii) the number of such children 
                        who constitute more than 15.00 percent, 
                        but not more than 19.00 percent, of 
                        such population, multiplied by 1.75;
                            ``(iii) the number of such children 
                        who constitute more than 19.00 percent, 
                        but not more than 24.20 percent, of 
                        such population, multiplied by 2.5;
                            ``(iv) the number of such children 
                        who constitute more than 24.20 percent, 
                        but not more than 29.20 percent, of 
                        such population, multiplied by 3.25; 
                        and
                            ``(v) the number of such children 
                        who constitute more than 29.20 percent 
                        of such population, multiplied by 4.0.
                    ``(C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) who 
                        constitute not more than 2,311, 
                        inclusive, of the county's total 
                        population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children 
                        between 2,312 and 7,913, inclusive, in 
                        such population, multiplied by 1.5;
                            ``(iii) the number of such children 
                        between 7,914 and 23,917, inclusive, in 
                        such population, multiplied by 2.0;
                            ``(iv) the number of such children 
                        between 23,918 and 93,810, inclusive, 
                        in such population, multiplied by 2.5; 
                        and
                            ``(v) the number of such children 
                        in excess of 93,811 in such population, 
                        multiplied by 3.0.
                    ``(D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.82.
            ``(2) Weights for allocations to local educational 
        agencies.--
                    ``(A) In general.--For each fiscal year for 
                which the Secretary uses local educational 
                agency data, the weighted child count used to 
                determine a local educational agency's grant 
                under this section is the larger of the 2 
                amounts determined under subparagraphs (B) and 
                (C).
                    ``(B) By percentage of children.--The 
                amount referred to in subparagraph (A) is 
                determined by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) for 
                        that local educational agency who 
                        constitute not more than 15.58 percent, 
                        inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children 
                        who constitute more than 15.58 percent, 
                        but not more than 22.11 percent, of 
                        such population, multiplied by 1.75;
                            ``(iii) the number of such children 
                        who constitute more than 22.11 percent, 
                        but not more than 30.16 percent, of 
                        such population, multiplied by 2.5;
                            ``(iv) the number of such children 
                        who constitute more than 30.16 percent, 
                        but not more than 38.24 percent, of 
                        such population, multiplied by 3.25; 
                        and
                            ``(v) the number of such children 
                        who constitute more than 38.24 percent 
                        of such population, multiplied by 4.0.
                    ``(C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) who 
                        constitute not more than 691, 
                        inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children 
                        between 692 and 2,262, inclusive, in 
                        such population, multiplied by 1.5;
                            ``(iii) the number of such children 
                        between 2,263 and 7,851, inclusive, in 
                        such population, multiplied by 2.0;
                            ``(iv) the number of such children 
                        between 7,852 and 35,514, inclusive, in 
                        such population, multiplied by 2.5; and
                            ``(v) the number of such children 
                        in excess of 35,514 in such population, 
                        multiplied by 3.0.
                    ``(D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.82.
    ``(d) Calculation of Grant Amounts.--Grant amounts under 
this section shall be calculated in the same manner as grant 
amounts are calculated under section 1124(a) (2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision 
of this section or section 1122, from the total amount 
available for any fiscal year to carry out this section, each 
State shall be allotted at least the lesser of--
            ``(1) 0.35 percent of the total amount available to 
        carry out this section; or
            ``(2) the average of--
                    ``(A) 0.35 percent of the total amount 
                available to carry out this section; and
                    ``(B) 150 percent of the national average 
                grant under this section per child described in 
                section 1124(c), without application of a 
                weighting factor, multiplied by the State's 
                total number of children described in section 
                1124(c), without application of a weighting 
                factor.

``SEC. 1125AA. ADEQUACY OF FUNDING OF TARGETED GRANTS TO LOCAL 
                    EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER FISCAL 
                    YEAR 2001.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The current Basic Grant Formula for the 
        distribution of funds under this part often does not 
        provide funds for the economically disadvantaged 
        students for which such funds are targeted.
            ``(2) Any school district in which more than 2 
        percent of the students live below the poverty level 
        qualifies for funding under the Basic Grant Formula. As 
        a result, 9 out of every 10 school districts in the 
        country receive some form of aid under the Formula.
            ``(3) 58 percent of all schools receive at least 
        some funding under this part, including many suburban 
        schools with predominantly well-off students.
            ``(4) 1 out of every 5 schools with concentrations 
        of poor students between 50 and 75 percent receive no 
        funding at all under this part.
            ``(5) In passing the Improving America's Schools 
        Act in 1994, Congress declared that grants under this 
        part would more sharply target high poverty schools by 
        using the Targeted Grant Formula, but annual 
        appropriation Acts have prevented the use of that 
        Formula.
            ``(6) The advantage of the Targeted Grant Formula 
        over other funding formulas under this part is that the 
        Targeted Grant Formula provides increased grants per 
        poor child as the percentage of economically 
        disadvantaged children in a school district increases.
            ``(7) Studies have found that the poverty of a 
        child's family is much more likely to be associated 
        with educational disadvantage if the family lives in an 
        area with large concentrations of poor families.
            ``(8) States with large populations of high poverty 
        students would receive significantly more funding if 
        more funds under this part were allocated through the 
        Targeted Grant Formula.
            ``(9) Congress has an obligation to allocate funds 
        under this part so that such funds will positively 
        affect the largest number of economically disadvantaged 
        students.
    ``(b) Limitation on Allocation of Title I Funds Contingent 
on Adequate Funding of Targeted Grants.--Pursuant to section 
1122, the total amount allocated in any fiscal year after 
fiscal year 2001 for programs and activities under this part 
shall not exceed the amount allocated in fiscal year 2001 for 
such programs and activities unless the amount available for 
targeted grants to local educational agencies under section 
1125 in the applicable fiscal year meets the requirements of 
section 1122(a).

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

    ``(a) Grants.--From funds appropriated under subsection (f) 
the Secretary is authorized to make grants to States, from 
allotments under subsection (b), to carry out the programs and 
activities of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
            ``(1) In general.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), funds appropriated pursuant 
                to subsection (f) shall be allotted to each 
                State based upon the number of children counted 
                under section 1124(c) in such State multiplied 
                by the product of--
                            ``(i) the amount in section 
                        1124(a)(1)(B) for all States other than 
                        the Commonwealth of Puerto Rico, except 
                        that the amount determined under that 
                        subparagraph shall not be less that 34 
                        percent or more than 46 percent of the 
                        average per pupil expenditure in the 
                        United States, and the amount in 
                        section 1124(a)(4) for the Commonwealth 
                        of Puerto Rico, except that the amount 
                        in section 1124(a)(4)(A)(ii) shall be 
                        34 percent of the average per pupil 
                        expenditure in the United States; 
                        multiplied by
                            ``(ii) such State's effort factor 
                        described in paragraph (2); multiplied 
                        by
                            ``(iii) 1.30 minus such State's 
                        equity factor described in paragraph 
                        (3).
                    ``(B) State minimum.--Notwithstanding any 
                other provision of this section or section 
                1122, from the total amount available for any 
                fiscal year to carry out this section, each 
                State shall be allotted at least the lesser 
                of--
                            ``(i) 0.35 percent of total 
                        appropriations; or
                            ``(ii) the average of--
                                    ``(I) 0.35 percent of the 
                                total amount available to carry 
                                out this section; and
                                    ``(II) 150 percent of the 
                                national average grant under 
                                this section per child 
                                described in section 1124(c), 
                                without application of a 
                                weighting factor, multiplied by 
                                the State's total number of 
                                children described in section 
                                1124(c), without application of 
                                a weighting factor.
            ``(2) Effort factor.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State 
                shall be determined in accordance with the 
                succeeding sentence, except that such factor 
                shall not be less than 0.95 nor greater than 
                1.05. The effort factor determined under this 
                sentence shall be a fraction the numerator of 
                which is the product of the 3-year average per-
                pupil expenditure in the State multiplied by 
                the 3-year average per capita income in the 
                United States and the denominator of which is 
                the product of the 3-year average per capita 
                income in such State multiplied by the 3-year 
                average per-pupil expenditure in the United 
                States.
                    ``(B) Commonwealth of puerto rico.--The 
                effort factor for the Commonwealth of Puerto 
                Rico shall be equal to the lowest effort factor 
                calculated under subparagraph (A) for any 
                State.
            ``(3) Equity factor.--
                    ``(A) Determination.--
                            ``(i) In general.--Except as 
                        provided in subparagraph (B), the 
                        Secretary shall determine the equity 
                        factor under this section for each 
                        State in accordance with clause (ii).
                            ``(ii) Computation.--
                                    ``(I) In general.--For each 
                                State, the Secretary shall 
                                compute a weighted coefficient 
                                of variation for the per-pupil 
                                expenditures of local 
                                educational agencies in 
                                accordance with subclauses 
                                (II), (III), and (IV).
                                    ``(II) Variation.--In 
                                computing coefficients of 
                                variation, the Secretary shall 
                                weigh the variation between 
                                per-pupil expenditures in each 
                                local educational agency and 
                                the average per-pupil 
                                expenditures in the State 
                                according to the number of 
                                pupils served by the local 
                                educational agency.
                                    ``(III) Number of pupils.--
                                In determining the number of 
                                pupils under this paragraph 
                                served by each local 
                                educational agency and in each 
                                State, the Secretary shall 
                                multiply the number of children 
                                counted under section 1124(c) 
                                by a factor of 1.4.
                                    ``(IV) Enrollment 
                                requirement.--In computing 
                                coefficients of variation, the 
                                Secretary shall include only 
                                those local educational 
                                agencies with an enrollment of 
                                more than 200 students.
                    ``(B) Special rule.--The equity factor for 
                a State that meets the disparity standard 
                described in section 222.162 of title 34, Code 
                of Federal Regulations (as such section was in 
                effect on the day preceding the date of 
                enactment of the No Child Left Behind Act of 
                2001) or a State with only 1 local educational 
                agency shall be not greater than 0.10.
    ``(c) Use of Funds; Eligibility of Local Educational 
Agencies.--All funds awarded to each State under this section 
shall be allocated to local educational agencies under the 
following provisions. Within local educational agencies, funds 
allocated under this section shall be distributed to schools on 
a basis consistent with section 1113, and may only be used to 
carry out activities under this part. A local educational 
agency in a State is eligible to receive a targeted grant under 
this section for any fiscal year if--
            ``(A) the number of children in the local 
        educational agency counted under section 1124(c), 
        before application of the weighted child count 
        described in paragraph (3), is at least 10; and
            ``(B) if the number of children counted for grants 
        under section 1124(c), before application of the 
        weighted child count described in paragraph (3), is at 
        least 5 percent of the total number of children aged 5 
        to 17 years, inclusive, in the school district of the 
        local educational agency.
    ``For any fiscal year for which the Secretary allocates 
funds under this section on the basis of counties, funds made 
available as a result of applying this subsection shall be 
reallocated by the State educational agency to other eligible 
local educational agencies in the State in proportion to the 
distribution of other funds under this section.
    ``(d) Allocation of Funds to Eligible Local Educational 
Agencies.--Funds received by States under this section shall be 
allocated within States to eligible local educational agencies 
on the basis of weighted child counts calculated in accordance 
with paragraph (1), (2), or (3), as appropriate for each State.
            ``(1) States with an equity factor less than .10.--
        In States with an equity factor less than .10, the 
        weighted child counts referred to in subsection (d) 
        shall be calculated as follows:
                    ``(A) Weights for allocations to 
                counties.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses 
                        county population data to calculate 
                        grants, the weighted child count used 
                        to determine a county's allocation 
                        under this section is the larger of the 
                        2 amounts determined under clauses (ii) 
                        and (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause ``(i) 
                        is determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that county 
                                who constitute not more than 
                                15.00 percent, inclusive, of 
                                the county's total population 
                                aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.00 percent, but not 
                                more than 19.00 percent, of 
                                such population, multiplied by 
                                1.75;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 19.00 percent, but not 
                                more than 24.20 percent, of 
                                such population, multiplied by 
                                2.5;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 24.20 percent, but not 
                                more than 29.20 percent, of 
                                such population, multiplied by 
                                3.25; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 29.20 percent of such 
                                population, multiplied by 4.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 2,311, inclusive, 
                                of the county's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 2,312 and 
                                7,913, inclusive, in such 
                                population, multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 7,914 and 
                                23,917, inclusive, in such 
                                population, multiplied by 2.0;
                                    ``(IV) the number of such 
                                children between 23,918 and 
                                93,810, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 93,811 in 
                                such population, multiplied by 
                                3.0.
                    ``(B) Weights for allocations to local 
                educational agencies.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses local 
                        educational agency data, the weighted 
                        child count used to determine a local 
                        educational agency's grant under this 
                        section is the larger of the 2 amounts 
                        determined under clauses (ii) and 
                        (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that local 
                                educational agency who 
                                constitute not more than 15.58 
                                percent, inclusive, of the 
                                agency's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.58 percent, but not 
                                more than 22.11 percent, of 
                                such population, multiplied by 
                                1.75;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 22.11 percent, but not 
                                more than 30.16 percent, of 
                                such population, multiplied by 
                                2.5;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 30.16 percent, but not 
                                more than 38.24 percent, of 
                                such population, multiplied by 
                                3.25; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 38.24 percent of such 
                                population, multiplied by 4.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 691, inclusive, 
                                of the agency's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 692 and 2,262, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 2,263 and 
                                7,851, inclusive, in such 
                                population, multiplied by 2.0;
                                    ``(IV) the number of such 
                                children between 7,852 and 
                                35,514, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 35,514 in 
                                such population, multiplied by 
                                3.0.
            ``(2) States with an equity factor greater than or 
        equal to .10 and less than .20.--In States with an 
        equity factor greater than or equal to .10 and less 
        than .20,the weighted child counts referred to in 
        subsection (d) shall be calculated as follows:
                    ``(A) Weights for allocations to 
                counties.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses 
                        county population data to calculate 
                        grants, the weighted child count used 
                        to determine a county's allocation 
                        under this section is the larger of the 
                        2 amounts determined under clauses (ii) 
                        and (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that county 
                                who constitute not more than 
                                15.00 percent, inclusive, of 
                                the county's total population 
                                aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.00 percent, but not 
                                more than 19.00 percent, of 
                                such population, multiplied by 
                                1.5;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 19.00 percent, but not 
                                more than 24.20 percent, of 
                                such population, multiplied by 
                                3.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 24.20 percent, but not 
                                more than 29.20 percent, of 
                                such population, multiplied by 
                                4.5; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 29.20 percent of such 
                                population, multiplied by 6.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 2,311, inclusive, 
                                of the county's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 2,312 and 
                                7,913, inclusive, in such 
                                population, multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 7,914 and 
                                23,917, inclusive, in such 
                                population, multiplied by 2.25;
                                    ``(IV) the number of such 
                                children between 23,918 and 
                                93,810, inclusive, in such 
                                population, multiplied by 
                                3.375; and
                                    ``(V) the number of such 
                                children in excess of 93,811 in 
                                such population, multiplied by 
                                4.5.
                    ``(B) Weights for allocations to local 
                educational agencies.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses local 
                        educational agency data, the weighted 
                        child count used to determine a local 
                        educational agency's grant under this 
                        section is the larger of the 2 amounts 
                        determined under clauses (ii) and 
                        (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that local 
                                educational agency who 
                                constitute not more than 15.58 
                                percent, inclusive, of the 
                                agency's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.58 percent, but not 
                                more than 22.11 percent, of 
                                such population, multiplied by 
                                1.5;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 22.11 percent, but not 
                                more than 30.16 percent, of 
                                such population, multiplied by 
                                3.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 30.16 percent, but not 
                                more than 38.24 percent, of 
                                such population, multiplied by 
                                4.5; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 38.24 percent of such 
                                population, multiplied by 6.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 691, inclusive, 
                                of the agency's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 692 and 2,262, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 2,263 and 
                                7,851, inclusive, in such 
                                population, multiplied by 2.25;
                                    ``(IV) the number of such 
                                children between 7,852 and 
                                35,514, inclusive, in such 
                                population, multiplied by 
                                3.375; and
                                    ``(V) the number of such 
                                children in excess of 35,514 in 
                                such population, multiplied by 
                                4.5.
            ``(3) States with an equity factor greater than or 
        equal to .20.--In States with an equity factor greater 
        than or equal to .20, the weighted child counts 
        referred to in subsection (d) shall be calculated as 
        follows:
                    ``(A) Weights for allocations to 
                counties.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses 
                        county population data to calculate 
                        grants, the weighted child count used 
                        to determine a county's allocation 
                        under this section is the larger of the 
                        2 amounts determined under clauses (ii) 
                        and (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that county 
                                who constitute not more than 
                                15.00 percent, inclusive, of 
                                the county's total population 
                                aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.00 percent, but not 
                                more than 19.00 percent, of 
                                such population, multiplied by 
                                2.0;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 19.00 percent, but not 
                                more than 24.20 percent, of 
                                such population, multiplied by 
                                4.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 24.20 percent, but not 
                                more than 29.20 percent, of 
                                such population, multiplied by 
                                6.0; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 29.20 percent of such 
                                population, multiplied by 8.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 2,311, inclusive, 
                                of the county's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 2,312 and 
                                7,913, inclusive, in such 
                                population, multiplied by 2.0;
                                    ``(III) the number of such 
                                children between 7,914 and 
                                23,917, inclusive, in such 
                                population, multiplied by 3.0;
                                    ``(IV) the number of such 
                                children between 23,918 and 
                                93,810, inclusive, in such 
                                population, multiplied by 4.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 93,811 in 
                                such population, multiplied by 
                                6.0.
                    ``(B) Weights for allocations to local 
                educational agencies.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses local 
                        educational agency data, the weighted 
                        child count used to determine a local 
                        educational agency's grant under this 
                        section is the larger of the 2 amounts 
                        determined under clauses (ii) and 
                        (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that local 
                                educational agency who 
                                constitute not more than 15.58 
                                percent, inclusive, of the 
                                agency's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.58 percent, but not 
                                more than 22.11 percent, of 
                                such population, multiplied by 
                                2.0;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 22.11 percent, but not 
                                more than 30.16 percent, of 
                                such population, multiplied by 
                                4.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 30.16 percent, but not 
                                more than 38.24 percent, of 
                                such population, multiplied by 
                                6.0; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 38.24 percent of such 
                                population, multiplied by 8.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 691, inclusive, 
                                of the agency's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 692 and 2,262, 
                                inclusive, in such population, 
                                multiplied by 2.0;
                                    ``(III) the number of such 
                                children between 2,263 and 
                                7,851, inclusive, in such 
                                population, multiplied by 3.0;
                                    ``(IV) the number of such 
                                children between 7,852 and 
                                35,514, inclusive, in such 
                                population, multiplied by 4.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 35,514 in 
                                such population, multiplied by 
                                6.0.
    ``(e) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a State is entitled to receive its full allotment 
        of funds under this section for any fiscal year if the 
        Secretary finds that either the combined fiscal effort 
        per student or the aggregate expenditures within the 
        State with respect to the provision of free public 
        education for the fiscal year preceding the fiscal year 
        for which the determination is made was not less than 
        90 percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the 
        fiscal year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall 
        reduce the amount of funds awarded to any State under 
        this section in any fiscal year in the exact proportion 
        to which the State fails to meet the requirements of 
        paragraph (1) by falling below 90 percent of both the 
        fiscal effort per student and aggregate expenditures 
        (using the measure most favorable to the State), and no 
        such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent 
        years.
            ``(3) Waivers.--The Secretary may waive, for 1 
        fiscal year only, the requirements of this subsection 
        if the Secretary determines that such a waiver would be 
        equitable due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State.
    ``(f) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as may be necessary for fiscal year 2002 and for each of 
the 5 succeeding fiscal years.
    ``(g) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this 
        section for any fiscal year are insufficient to pay the 
        full amounts that all local educational agencies in 
        States are eligible to receive under this section for 
        such year, the Secretary shall ratably reduce the 
        allocations to such local educational agencies, subject 
        to paragraphs (2) and (3).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under this section for 
        such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as 
        they were reduced.
            ``(3) Hold-harmless amounts.--For each fiscal year, 
        if sufficient funds are available, the amount made 
        available to each local educational agency under this 
        section shall be
                    ``(A) not less than 95 percent of the 
                amount made available for the preceding fiscal 
                year if the number of children counted for 
                grants under section 1124 is not less than 30 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the local 
                educational agency;
                    ``(B) not less than 90 percent of the 
                amount made available for the preceding fiscal 
                year if the percentage described in 
                subparagraph (A) is between 15 percent and 30 
                percent; and
                    ``(C) not less than 85 percent of the 
                amount made available for the preceding fiscal 
                year if the percentage described in 
                subparagraph (A) is below 15 percent.
            ``(4) Applicability.--Notwithstanding any other 
        provision of law, the Secretary shall not take into 
        consideration the hold-harmless provisions of this 
        subsection for any fiscal year for purposes of 
        calculating State or local allocations for the fiscal 
        year under any program administered by the Secretary 
        other than a program authorized under this part.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

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

``SEC. 1127. CARRYOVER AND WAIVER.

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

          ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``SEC. 1201. PURPOSES.

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

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

    ``(a) In General.--
            ``(1) Authorization to make grants.--In the case of 
        each State educational agency that in accordance with 
        section 1203 submits to the Secretary an application 
        for a 6-year period, the Secretary, from amounts 
        appropriated under section 1002(b)(1) and subject to 
        the application's approval, shall make a grant to the 
        State educational agency for the uses specified in 
        subsections (c) and (d). For each fiscal year, the 
        funds provided under the grant shall equal the 
        allotment determined for the State educational agency 
        under subsection (b).
            ``(2) Duration of grants.--Subject to subsection 
        (e)(3), a grant under this section shall be awarded for 
        a period of not more than 6 years.
    ``(b) Determination of Amount of Allotments.--
            ``(1) Reservations from appropriations.--From the 
        total amount made available to carry out this subpart 
        for a fiscal year, the Secretary--
                    ``(A) shall reserve \1/2\ of 1 percent for 
                allotments for the United States Virgin 
                Islands, Guam, American Samoa, and the 
                Commonwealth of the Northern Mariana Islands, 
                to be distributed among these outlying areas on 
                the basis of their relative need, as determined 
                by the Secretary in accordance with the 
                purposes of this subpart;
                    ``(B) shall reserve \1/2\ of 1 percent for 
                the Secretary of the Interior for programs 
                under this subpart in schools operated or 
                funded by the Bureau of Indian Affairs;
                    ``(C) may reserve not more than 2\1/2\ 
                percent or $25,000,000, whichever is less, to 
                carry out section 1205 (relating to external 
                evaluation) and section 1206 (relating to 
                national activities);
                    ``(D) shall reserve $5,000,000 to carry out 
                sections 1207 and 1224 (relating to information 
                dissemination); and
                    ``(E) for any fiscal year, beginning with 
                fiscal year 2004, for which the amount 
                appropriated to carry out this subpart exceeds 
                the amount appropriated for fiscal year 2003, 
                shall reserve, to carry out section 1204, the 
                lesser of--
                            ``(i) $90,000,000; or
                            ``(ii) 10 percent of such excess 
                        amount.
            ``(2) State allotments.--In accordance with 
        paragraph (3), the Secretary shall allot among each of 
        the States the total amount made available to carry out 
        this subpart for any fiscal year and not reserved under 
        paragraph (1).
            ``(3) Determination of state allotment amounts.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall allot the amount made 
                available under paragraph (2) for a fiscal year 
                among the States in proportion to the number of 
                children, aged 5 to 17, who reside within the 
                State and are from families with incomes below 
                the poverty line for the most recent fiscal 
                year for which satisfactory data are available, 
                compared to the number of such individuals who 
                reside in all such States for that fiscal year.
                    ``(B) Exceptions.--
                            ``(i) Minimum grant amount.--
                        Subject to clause (ii), no State 
                        receiving an allotment under 
                        subparagraph (A) may receive less than 
                        \1/4\ of 1 percent of the total amount 
                        allotted under such subparagraph.
                            ``(ii) Puerto rico.--The percentage 
                        of the amount allotted under 
                        subparagraph (A) that is allotted to 
                        the Commonwealth of Puerto Rico for a 
                        fiscal year may not exceed the 
                        percentage that was received by the 
                        Commonwealth of Puerto Rico of the 
                        funds allocated to all States under 
                        subpart 2 of part A for the preceding 
                        fiscal year.
            ``(4) Distribution of subgrants.--The Secretary may 
        make a grant to a State educational agency only if the 
        State educational agency agrees to expend at least 80 
        percent of the amount of the funds provided under the 
        grant for the purpose of making, in accordance with 
        subsection (c), competitive subgrants to eligible local 
        educational agencies.
            ``(5) Reallotment.--If a State educational agency 
        described in paragraph (2) does not apply for an 
        allotment under this section for any fiscal year, or if 
        the State educational agency's application is not 
        approved, the Secretary shall reallot such amount to 
        the remaining State educational agencies in accordance 
        with paragraph (3).
            ``(6) Definition of state.--For purposes of this 
        subsection, the term `State' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) Authorization to make subgrants.--In 
        accordance with paragraph (2), a State educational 
        agency that receives a grant under this section shall 
        make competitive subgrants to eligible local 
        educational agencies.
            ``(2) Allocation.--
                    ``(A) Minimum subgrant amount.--In making 
                subgrants under paragraph (1), a State 
                educational agency shall allocate to each 
                eligible local educational agency that receives 
                such a subgrant, at a minimum, an amount that 
                bears the same relation to the funds made 
                available under subsection (b)(4) as the amount 
                the eligible local educational agency received 
                under part A for the preceding fiscal year 
                bears to the amount all the local educational 
                agencies in the State received under part A for 
                the preceding fiscal year.
                    ``(B) Priority.--In making subgrants under 
                paragraph (1), a State educational agency shall 
                give priority to eligible local educational 
                agencies in which at least--
                            ``(i) 15 percent of the children 
                        served by the eligible local 
                        educational agency are from families 
                        with incomes below the poverty line; or
                            ``(ii) 6,500 children served by the 
                        eligible local educational agency are 
                        from families with incomes below the 
                        poverty line.
            ``(3) Notice.--A State educational agency receiving 
        a grant under this section shall provide notice to all 
        eligible local educational agencies in the State of the 
        availability of competitive subgrants under this 
        subsection and of the requirements for applying for the 
        subgrants.
            ``(4) Local application.--To be eligible to receive 
        a subgrant under this subsection, an eligible local 
        educational agency shall submit an application to the 
        State educational agency at such time, in such manner, 
        and containing such information as the State 
        educational agency may reasonably require.
            ``(5) State requirement.--In distributing subgrant 
        funds to eligible local educational agencies under this 
        subsection, a State educational agency shall--
                    ``(A) provide funds in sufficient size and 
                scope to enable the eligible local educational 
                agencies to improve reading instruction; and
                    ``(B) provide the funds in amounts related 
                to the number or percentage of students in 
                kindergarten through grade 3 who are reading 
                below grade level.
            ``(6) Limitation to certain schools.--In 
        distributing subgrant funds under this subsection, an 
        eligible local educational agency shall provide funds 
        only to schools that both--
                    ``(A) are among the schools served by that 
                eligible local educational agency with the 
                highest percentages or numbers of students in 
                kindergarten through grade 3 reading below 
                grade level, based on the most currently 
                available data; and
                    ``(B)(i) are identified for school 
                improvement under section 1116(b); or
                    ``(ii) have the highest percentages or 
                numbers of children counted under section 
                1124(c).
            ``(7) Local uses of funds.--
                    ``(A) Required uses.--Subject to paragraph 
                (8), an eligible local educational agency that 
                receives a subgrant under this subsection shall 
                use the funds provided under the subgrant to 
                carry out the following activities:
                            ``(i) Selecting and administering 
                        screening, diagnostic, and classroom-
                        based instructional reading 
                        assessments.
                            ``(ii) Selecting and implementing a 
                        learning system or program of reading 
                        instruction based on scientifically 
                        based reading research that--
                                    ``(I) includes the 
                                essential components of reading 
                                instruction; and
                                    ``(II) provides such 
                                instruction to the children in 
                                kindergarten through grade 3 in 
                                the schools served by the 
                                eligible local educational 
                                agency, including children 
                                who--
                                            ``(aa) may have 
                                        reading difficulties;
                                            ``(bb) are at risk 
                                        of being referred to 
                                        special education based 
                                        on these difficulties;
                                            ``(cc) have been 
                                        evaluated under section 
                                        614 of the Individuals 
                                        with Disabilities 
                                        Education Act but, in 
                                        accordance with section 
                                        614(b)(5) of that Act, 
                                        have not been 
                                        identified as being a 
                                        child with a disability 
                                        (as defined in section 
                                        602 of that Act);
                                            ``(dd) are being 
                                        served under such Act 
                                        primarily due to being 
                                        identified as being a 
                                        child with a specific 
                                        learning disability (as 
                                        defined in section 602 
                                        of that Act) related to 
                                        reading;
                                            ``(ee) are 
                                        deficient in the 
                                        essential components of 
                                        reading skills, as 
                                        listed in subparagraphs 
                                        (A) through (E) of 
                                        section 1208(3); or
                                            ``(ff) are 
                                        identified as having 
                                        limited English 
                                        proficiency.
                            ``(iii) Procuring and implementing 
                        instructional materials, including 
                        education technology such as software 
                        and other digital curricula, that are 
                        based on scientifically based reading 
                        research.
                            ``(iv) Providing professional 
                        development for teachers of 
                        kindergarten through grade 3, and 
                        special education teachers of 
                        kindergarten through grade 12, that--
                                    ``(I) will prepare these 
                                teachers in all of the 
                                essential components of reading 
                                instruction;
                                    ``(II) shall include--
                                            ``(aa) information 
                                        on instructional 
                                        materials, programs, 
                                        strategies, and 
                                        approaches based on 
                                        scientifically based 
                                        reading research, 
                                        including early 
                                        intervention, classroom 
                                        reading materials, and 
                                        remedial programs and 
                                        approaches; and
                                            ``(bb) instruction 
                                        in the use of 
                                        screening, diagnostic, 
                                        and classroom-based 
                                        instructional reading 
                                        assessments and other 
                                        procedures that 
                                        effectively identify 
                                        students who may be at 
                                        risk for reading 
                                        failure or who are 
                                        having difficulty 
                                        reading;
                                    ``(III) shall be provided 
                                by eligible professional 
                                development providers; and
                                    ``(IV) will assist teachers 
                                in becoming fully qualified in 
                                reading instruction in 
                                accordance with the 
                                requirements of section 1119.
                            ``(v) Collecting and summarizing 
                        data--
                                    ``(I) to document the 
                                effectiveness of activities 
                                carried out under this subpart 
                                in individual schools and in 
                                the local educational agency as 
                                a whole; and
                                    ``(II) to stimulate and 
                                accelerate improvement by 
                                identifying the schools that 
                                produce significant gains in 
                                reading achievement.
                            ``(vi) Reporting data for all 
                        students and categories of students 
                        described in section 
                        1111(b)(2)(C)(v)(II).
                            ``(vii) Promoting reading and 
                        library programs that provide access to 
                        engaging reading material, including 
                        coordination with programs funded 
                        through grants received under subpart 
                        4, where applicable.
                    ``(B) Additional uses.--Subject to 
                paragraph (8), an eligible local educational 
                agency that receives a subgrant under this 
                subsection may use the funds provided under the 
                subgrant to carry out the following activities:
                            ``(i) Humanities-based family 
                        literacy programs (which may be 
                        referred to as ``Prime Time Family 
                        Reading Time'') that bond families 
                        around the acts of reading and using 
                        public libraries.
                            ``(ii) Providing training in the 
                        essential components of reading 
                        instruction to a parent or other 
                        individual who volunteers to be a 
                        student's reading tutor, to enable such 
                        parent or individual to support 
                        instructional practices that are based 
                        on scientifically based reading 
                        research and are being used by the 
                        student's teacher.
                            ``(iii) Assisting parents, through 
                        the use of materials and reading 
                        programs, strategies, and approaches 
                        (including family literacy services) 
                        that are based on scientifically based 
                        reading research, to encourage reading 
                        and support their child's reading 
                        development.
            ``(8) Local planning and administration.--An 
        eligible local educational agency that receives a 
        subgrant under this subsection may use not more than 
        3.5 percent of the funds provided under the subgrant 
        for planning and administration.
    ``(d) State Uses of Funds.--
            ``(1) In general.--A State educational agency that 
        receives a grant under this section may expend not more 
        than a total of 20 percent of the grant funds to carry 
        out the activities described in paragraphs (3), (4), 
        and (5).
            ``(2) Priority.--A State educational agency shall 
        give priority to carrying out the activities described 
        in paragraphs (3), (4), and (5) for schools described 
        in subsection (c)(6).
            ``(3) Professional inservice and preservice 
        development and review.--A State educational agency may 
        expend not more than 65 percent of the amount of the 
        funds made available under paragraph (1)--
                    ``(A) to develop and implement a program of 
                professional development for teachers, 
                including special education teachers, of 
                kindergarten through grade 3 that--
                            ``(i) will prepare these teachers 
                        in all the essential components of 
                        reading instruction;
                            ``(ii) shall include--
                                    ``(I) information on 
                                instructional materials, 
                                programs, strategies, and 
                                approaches based on 
                                scientifically based reading 
                                research, including early 
                                intervention and reading 
                                remediation materials, 
                                programs, and approaches; and
                                    ``(II) instruction in the 
                                use of screening, diagnostic, 
                                and classroom-based 
                                instructional reading 
                                assessments and other 
                                scientifically based procedures 
                                that effectively identify 
                                students who may be at risk for 
                                reading failure or who are 
                                having difficulty reading; and
                            ``(iii) shall be provided by 
                        eligible professional development 
                        providers;
                    ``(B) to strengthen and enhance preservice 
                courses for students preparing, at all public 
                institutions of higher education in the State, 
                to teach kindergarten through grade 3 by--
                            ``(i) reviewing such courses to 
                        determine whether the courses' content 
                        is consistent with the findings of the 
                        most current scientifically based 
                        reading research, including findings on 
                        the essential components of reading 
                        instruction;
                            ``(ii) following up such reviews 
                        with recommendations to ensure that 
                        such institutions offer courses that 
                        meet the highest standards; and
                            ``(iii) preparing a report on the 
                        results of such reviews, submitting the 
                        report to the reading and literacy 
                        partnership for the State established 
                        under section 1203(d), and making the 
                        report available for public review by 
                        means of the Internet; and
                    ``(C) to make recommendations on how the 
                State licensure and certification standards in 
                the area of reading might be improved.
            ``(4) Technical assistance for local educational 
        agencies and schools.--A State educational agency may 
        expend not more than 25 percent of the amount of the 
        funds made available under paragraph (1) for 1 or more 
        of the following:
                    ``(A) Assisting local educational agencies 
                in accomplishing the tasks required to design 
                and implement a program under this subpart, 
                including--
                            ``(i) selecting and implementing a 
                        program or programs of reading 
                        instruction based on scientifically 
                        based reading research;
                            ``(ii) selecting screening, 
                        diagnostic, and classroom-based 
                        instructional reading assessments; and
                            ``(iii) identifying eligible 
                        professional development providers to 
                        help prepare reading teachers to teach 
                        students using the programs and 
                        assessments described in clauses (i) 
                        and (ii).
                    ``(B) Providing expanded opportunities to 
                students in kindergarten through grade 3 who 
                are served by eligible local educational 
                agencies for receiving reading assistance from 
                alternative providers that includes--
                            ``(i) screening, diagnostic, and 
                        classroom-based instructional reading 
                        assessments; and
                            ``(ii) as need is indicated by the 
                        assessments under clause (i), 
                        instruction based on scientifically 
                        based reading research that includes 
                        the essential components of reading 
                        instruction.
            ``(5) Planning, administration, and reporting.--
                    ``(A) Expenditure of funds.--A State 
                educational agency may expend not more than 10 
                percent of the amount of funds made available 
                under paragraph (1) for the activities 
                described in this paragraph.
                    ``(B) Planning and administration.--A State 
                educational agency that receives a grant under 
                this section may expend funds made available 
                under subparagraph (A) for planning and 
                administration relating to the State uses of 
                funds authorized under this subpart, including 
                the following:
                            ``(i) Administering the 
                        distribution of competitive subgrants 
                        to eligible local educational agencies 
                        under subsection (c) and section 
                        1204(d).
                            ``(ii) Assessing and evaluating, on 
                        a regular basis, eligible local 
                        educational agency activities assisted 
                        under this subpart, with respect to 
                        whether they have been effective in 
                        increasing the number of children in 
                        grades 1, 2, and 3 served under this 
                        subpart who can read at or above grade 
                        level.
                    ``(C) Annual reporting.--
                            ``(i) In general.--A State 
                        educational agency that receives a 
                        grant under this section shall expend 
                        funds made available under subparagraph 
                        (A) to provide the Secretary annually 
                        with a report on the implementation of 
                        this subpart.
                            ``(ii) Information included.--Each 
                        report under this subparagraph shall 
                        include information on the following:
                                    ``(I) Evidence that the 
                                State educational agency is 
                                fulfilling its obligations 
                                under this subpart.
                                    ``(II) Specific 
                                identification of those schools 
                                and local educational agencies 
                                that report the largest gains 
                                in reading achievement.
                                    ``(III) The progress the 
                                State educational agency and 
                                local educational agencies 
                                within the State are making in 
                                reducing the number of students 
                                served under this subpart in 
                                grades 1, 2, and 3 who are 
                                reading below grade level, as 
                                demonstrated by such 
                                information as teacher reports 
                                and school evaluations of 
                                mastery of the essential 
                                components of reading 
                                instruction.
                                    ``(IV) Evidence on whether 
                                the State educational agency 
                                and local educational agencies 
                                within the State have 
                                significantly increased the 
                                number of students reading at 
                                grade level or above, 
                                significantly increased the 
                                percentages of students 
                                described in section 
                                1111(b)(2)(C)(v)(II) who are 
                                reading at grade level or 
                                above, and successfully 
                                implemented this subpart.
                            ``(iii) Privacy protection.--Data 
                        in the report shall be reported in a 
                        manner that protects the privacy of 
                        individuals.
                            ``(iv) Contract.--To the extent 
                        practicable, a State educational agency 
                        shall enter into a contract with an 
                        entity that conducts scientifically 
                        based reading research, under which 
                        contract the entity will assist the 
                        State educational agency in producing 
                        the reports required to be submitted 
                        under this subparagraph.
    ``(e) Review.--
            ``(1) Progress report.--
                    ``(A) Submission.--Not later than 60 days 
                after the termination of the third year of the 
                grant period, each State educational agency 
                receiving a grant under this section shall 
                submit a progress report to the Secretary.
                    ``(B) Information included.--The progress 
                report shall include information on the 
                progress the State educational agency and local 
                educational agencies within the State are 
                making in reducing the number of students 
                served under this subpart in grades 1, 2, and 3 
                who are reading below grade level (as 
                demonstrated by such information as teacher 
                reports and school evaluations of mastery of 
                the essential components of reading 
                instruction). The report shall also include 
                evidence from the State educational agency and 
                local educational agencies within the State 
                that the State educational agency and the local 
                educational agencies have significantly 
                increased the number of students reading at 
                grade level or above, significantly increased 
                the percentages of students described in 
                section 1111(b)(2)(C)(v)(II) who are reading at 
                grade level or above, and successfully 
                implemented this subpart.
            ``(2) Peer review.--The progress report described 
        in paragraph (1) shall be reviewed by the peer review 
        panel convened under section 1203(c)(2).
            ``(3) Consequences of insufficient progress.--After 
        submission of the progress report described in 
        paragraph (1), if the Secretary determines that the 
        State educational agency is not making significant 
        progress in meeting the purposes of this subpart, the 
        Secretary may withhold from the State educational 
        agency, in whole or in part, further payments under 
        this section in accordance with section 455 of the 
        General Education Provisions Act or take such other 
        action authorized by law as the Secretary determines 
        necessary, including providing technical assistance 
        upon request of the State educational agency.
    ``(f) Funds Not Used for State Level Activities.--Any 
portion of funds described in subsection (d)(1) that a State 
educational agency does not expend in accordance with 
subsection (d)(1) shall be expended for the purpose of making 
subgrants in accordance with subsection (c).

``SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

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

``SEC. 1204. TARGETED ASSISTANCE GRANTS.

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

``SEC. 1205. EXTERNAL EVALUATION.

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

``SEC. 1206. NATIONAL ACTIVITIES.

    ``From funds reserved under section 1202(b)(1)(C), the 
Secretary--
            ``(1) may provide technical assistance in achieving 
        the purposes of this subpart to State educational 
        agencies, local educational agencies, and schools 
        requesting such assistance;
            ``(2) shall, at a minimum, evaluate the impact of 
        services provided to children under this subpart with 
        respect to their referral to, and eligibility for, 
        special education services under the Individuals with 
        Disabilities Education Act (based on their difficulties 
        learning to read); and
            ``(3) shall carry out the external evaluation as 
        described in section 1205.

``SEC. 1207. INFORMATION DISSEMINATION.

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

``SEC. 1208. DEFINITIONS.

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

                    ``Subpart 2--Early Reading First

``SEC. 1221. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this subpart are as 
follows:
            ``(1) To support local efforts to enhance the early 
        language, literacy, and prereading development of 
        preschool age children, particularly those from low-
        income families, through strategies and professional 
        development that are based on scientifically based 
        reading research.
            ``(2) To provide preschool age children with 
        cognitive learning opportunities in high-quality 
        language and literature-rich environments, so that the 
        children can attain the fundamental knowledge and 
        skills necessary for optimal reading development in 
        kindergarten and beyond.
            ``(3) To demonstrate language and literacy 
        activities based on scientifically based reading 
        research that supports the age-appropriate development 
        of--
                    ``(A) recognition, leading to automatic 
                recognition, of letters of the alphabet;
                    ``(B) knowledge of letter sounds, the 
                blending of sounds, and the use of increasingly 
                complex vocabulary;
                    ``(C) an understanding that written 
                language is composed of phonemes and letters 
                each representing 1 or more speech sounds that 
                in combination make up syllables, words, and 
                sentences;
                    ``(D) spoken language, including vocabulary 
                and oral comprehension abilities; and
                    ``(E) knowledge of the purposes and 
                conventions of print.
            ``(4) To use screening assessments to effectively 
        identify preschool age children who may be at risk for 
        reading failure.
            ``(5) To integrate such scientific reading 
        research-based instructional materials and literacy 
        activities with existing programs of preschools, child 
        care agencies and programs, Head Start centers, and 
        family literacy services.
    ``(b) Definitions.--For purposes of this subpart:
            ``(1) Eligible applicant.--The term `eligible 
        applicant' means--
                    ``(A) one or more local educational 
                agencies that are eligible to receive a 
                subgrant under subpart 1;
                    ``(B) one or more public or private 
                organizations or agencies, acting on behalf of 
                1 or more programs that serve preschool age 
                children (such as a program at a Head Start 
                center, a child care program, or a family 
                literacy program), which organizations or 
                agencies shall be located in a community served 
                by a local educational agency described in 
                subparagraph (A); or
                    ``(C) one or more local educational 
                agencies described in subparagraph (A) in 
                collaboration with 1 or more organizations or 
                agencies described in subparagraph (B).
            ``(2) Scientifically based reading research.--The 
        term `scientifically based reading research' has the 
        same meaning given to that term in section 1208.
            ``(3) Screening reading assessment.--The term 
        `screening reading assessment' has the same meaning 
        given to that term in section 1208.

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

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

``SEC. 1223. FEDERAL ADMINISTRATION.

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

``SEC. 1224. INFORMATION DISSEMINATION.

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

``SEC. 1225. REPORTING REQUIREMENTS.

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

``SEC. 1226. EVALUATION.

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

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

``SEC. 1231. STATEMENT OF PURPOSE.

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

``SEC. 1232. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and 
Indian Tribes.--
            ``(1) In general.--For each fiscal year, the 
        Secretary shall reserve 5 percent of the amount 
        appropriated under section 1002(b)(3) (or, if such 
        appropriated amount exceeds $200,000,000, 6 percent of 
        such amount) for programs, under such terms and 
        conditions as the Secretary shall establish, that are 
        consistent with the purpose of this subpart, and 
        according to their relative needs, for--
                    ``(A) children of migratory workers;
                    ``(B) the outlying areas; and
                    ``(C) Indian tribes and tribal 
                organizations.
            ``(2) Special rule.--After December 21, 2000, the 
        Secretary shall award a grant, on a competitive basis, 
        of sufficient size and for a period of sufficient 
        duration to demonstrate the effectiveness of a family 
        literacy program in a prison that houses women and 
        their preschool age children and that has the 
        capability of developing a program of high quality.
            ``(3) Coordination of programs for american 
        indians.--The Secretary shall ensure that programs 
        under paragraph (1)(C) are coordinated with family 
        literacy programs operated by the Bureau of Indian 
        Affairs in order to avoid duplication and to encourage 
        the dissemination of information on high-quality family 
        literacy programs serving American Indians.
    ``(b) Reservation for Federal Activities.--
            ``(1) Evaluation, technical assistance, program 
        improvement, and replication activities.--Subject to 
        paragraph (2), from amounts appropriated under section 
        1002(b)(3), the Secretary may reserve not more than 3 
        percent of such amounts for purposes of--
                    ``(A) carrying out the evaluation required 
                by section 1239; and
                    ``(B) providing, through grants or 
                contracts with eligible organizations, 
                technical assistance, program improvement, and 
                replication activities.
            ``(2) Research.--In any fiscal year, if the amount 
        appropriated under section 1002(b)(3) for such year--
                    ``(A) is equal to or less than the amount 
                appropriated for the preceding fiscal year, the 
                Secretary may reserve from such amount only the 
                amount necessary to continue multi-year 
                activities carried out pursuant to section 
                1241(b) that began during or prior to the 
                fiscal year preceding the fiscal year for which 
                the determination is made; or
                    ``(B) exceeds the amount appropriated for 
                the preceding fiscal year, then the Secretary 
                shall reserve from such excess amount 
                $2,000,000 or 50 percent, whichever is less, to 
                carry out section 1241(b).
    ``(c) Reservation for Grants.--
            ``(1) Grants authorized.--
                    ``(A) In general.--For any fiscal year for 
                which at least 1 State educational agency 
                applies and submits an application that meets 
                the requirements and goals of this subsection 
                and for which the amount appropriated under 
                section 1002(b)(3) exceeds the amount 
                appropriated under that section for the 
                preceding fiscal year, the Secretary shall 
                reserve, from the amount of the excess 
                remaining after the application of subsection 
                (b)(2), the amount of the remainder or 
                $1,000,000, whichever is less, to award grants, 
                on a competitive basis, to State educational 
                agencies to enable them to plan and implement 
                statewide family literacy initiatives to 
                coordinate and, where appropriate, integrate 
                existing Federal, State, and local literacy 
                resources consistent with the purposes of this 
                subpart.
                    ``(B) Coordination and integration.--The 
                coordination and integration described in 
                subparagraph (A) shall include coordination and 
                integration of funds available under the Adult 
                Education and Family Literacy Act, the Head 
                Start Act, this subpart, part A of this title, 
                and part A of title IV of the Social Security 
                Act.
                    ``(C) Restriction.--No State educational 
                agency may receive more than 1 grant under this 
                subsection.
            ``(2) Consortia.--
                    ``(A) Establishment.--To receive a grant 
                under this subsection, a State educational 
                agency shall establish a consortium of State-
                level programs under the following provisions 
                of laws:
                            ``(i) This title (other than part 
                        D).
                            ``(ii) The Head Start Act.
                            ``(iii) The Adult Education and 
                        Family Literacy Act.
                            ``(iv) All other State-funded 
                        preschool programs and programs 
                        providing literacy services to adults.
                    ``(B) Plan.--To receive a grant under this 
                subsection, the consortium established by a 
                State educational agency shall create a plan to 
                use a portion of the State educational agency's 
                resources, derived from the programs referred 
                to in subparagraph (A), to strengthen and 
                expand family literacy services in the State.
                    ``(C) Coordination with subpart 1.--The 
                consortium shall coordinate its activities 
                under this paragraph with the activities of the 
                reading and literacy partnership for the State 
                educational agency established under section 
                1203(d), if the State educational agency 
                receives a grant under section 1202.
            ``(3) Reading instruction.--Statewide family 
        literacy initiatives implemented under this subsection 
        shall base reading instruction on scientifically based 
        reading research.
            ``(4) Technical assistance.--The Secretary shall 
        provide, directly or through a grant or contract with 
        an organization with experience in the development and 
        operation of successful family literacy services, 
        technical assistance to State educational agencies 
        receiving a grant under this subsection.
            ``(5) Matching requirement.--The Secretary shall 
        not make a grant to a State educational agency under 
        this subsection unless the State educational agency 
        agrees that, with respect to the costs to be incurred 
        by the eligible consortium in carrying out the 
        activities for which the grant was awarded, the State 
        educational agency will make available non-Federal 
        contributions in an amount equal to not less than the 
        Federal funds provided under the grant.
    ``(d) State Educational Agency Allocation.--
            ``(1) In general.--From amounts appropriated under 
        section 1002(b)(3) and not reserved under subsection 
        (a), (b), or (c), the Secretary shall make grants to 
        State educational agencies from allocations under 
        paragraph (2).
            ``(2) Allocations.--Except as provided in paragraph 
        (3), from the total amount available under paragraph 
        (1) for allocation to State educational agencies in any 
        fiscal year, each State educational agency shall be 
        eligible to receive a grant under paragraph (1) in an 
        amount that bears the same ratio to the total amount as 
        the amount allocated under part A to that State 
        educational agency bears to the total amount allocated 
        under that part to all State educational agencies.
            ``(3) Minimum.--No State educational agency shall 
        receive a grant under paragraph (1) in any fiscal year 
        in an amount that is less than $250,000, or \1/2\ of 1 
        percent of the amount appropriated under section 
        1002(b)(3) and not reserved under subsections (a), (b), 
        and (c) for such year, whichever is greater.
    ``(e) Definitions.--For the purpose of this subpart--
            ``(1) the term `eligible entity' means a 
        partnership composed of--
                    ``(A) a local educational agency; and
                    ``(B) a nonprofit community-based 
                organization, a public agency other than a 
                local educational agency, an institution of 
                higher education, or a public or private 
                nonprofit organization other than a local 
                educational agency, of demonstrated quality;
            ``(2) the term `eligible organization' means any 
        public or private nonprofit organization with a record 
        of providing effective services to family literacy 
        providers, such as the National Center for Family 
        Literacy, Parents as Teachers, Inc., the Home 
        Instruction Program for Preschool Youngsters, and the 
        Home and School Institute, Inc.;
            ``(3) the terms `Indian tribe' and `tribal 
        organization' have the meanings given those terms in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act;
            ``(4) the term `scientifically based reading 
        research' has the meaning given that term in section 
        1208; and
            ``(5) the term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.

``SEC. 1233. STATE EDUCATIONAL AGENCY PROGRAMS.

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

``SEC. 1234. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program 
under this subpart, a recipient of funds under this subpart 
shall use those funds to pay the Federal share of the cost of 
providing intensive family literacy services that involve 
parents and children, from birth through age 7, in a 
cooperative effort to help parents become full partners in the 
education of their children and to assist children in reaching 
their full potential as learners.
    ``(b) Federal Share Limitation.--
            ``(1) In general.--
                    ``(A) Federal share.--Except as provided in 
                paragraph (2), the Federal share under this 
                subpart may not exceed--
                            ``(i) 90 percent of the total cost 
                        of the program in the first year that 
                        the program receives assistance under 
                        this subpart or its predecessor 
                        authority;
                            ``(ii) 80 percent in the second 
                        year;
                            ``(iii) 70 percent in the third 
                        year;
                            ``(iv) 60 percent in the fourth 
                        year;
                            ``(v) 50 percent in the fifth, 
                        sixth, seventh, and eighth such years; 
                        and
                            ``(vi) 35 percent in any subsequent 
                        year.
                    ``(B) Remaining cost.--The remaining cost 
                of a program assisted under this subpart may be 
                provided in cash or in kind, fairly evaluated, 
                and may be obtained from any source, including 
                other Federal funds under this Act.
            ``(2) Waiver.--The State educational agency may 
        waive, in whole or in part, the Federal share described 
        in paragraph (1) for an eligible entity if the entity--
                    ``(A) demonstrates that it otherwise would 
                not be able to participate in the program 
                assisted under this subpart; and
                    ``(B) negotiates an agreement with the 
                State educational agency with respect to the 
                amount of the remaining cost to which the 
                waiver will be applicable.
            ``(3) Prohibition.--Federal funds provided under 
        this subpart may not be used for the indirect costs of 
        a program assisted under this subpart, except that the 
        Secretary may waive this paragraph if an eligible 
        recipient of funds reserved under section 1232(a)(1)(C) 
        demonstrates to the Secretary's satisfaction that the 
        recipient otherwise would not be able to participate in 
        the program assisted under this subpart.
    ``(c) Use of Funds for Family Literacy Services.--
            ``(1) In general.--A State educational agency may 
        use a portion of funds reserved under section 1233(a), 
        to assist eligible entities receiving a subgrant under 
        section 1233(b) in improving the quality of family 
        literacy services provided under Even Start programs 
        under this subpart, except that in no case may a State 
        educational agency's use of funds for this purpose for 
        a fiscal year result in a decrease from the level of 
        activities and services provided to program 
        participants in the preceding year.
            ``(2) Priority.--In carrying out paragraph (1), a 
        State educational agency shall give priority to 
        programs that were of low quality, as evaluated based 
        on the indicators of program quality developed by the 
        State educational agency under section 1240.
            ``(3) Technical assistance to help local programs 
        raise additional funds.--In carrying out paragraph (1), 
        a State educational agency may use the funds referred 
        to in that paragraph to provide technical assistance to 
        help local programs of demonstrated effectiveness to 
        access and leverage additional funds for the purpose of 
        expanding services and reducing waiting lists, 
        including requesting and applying for non-Federal 
        resources.
            ``(4) Technical assistance and training.--
        Assistance under paragraph (1) shall be in the form of 
        technical assistance and training, provided by a State 
        educational agency through a grant, contract, or 
        cooperative agreement with an entity that has 
        experience in offering high-quality training and 
        technical assistance to family literacy providers.

``SEC. 1235. PROGRAM ELEMENTS.

    ``Each program assisted under this subpart shall--
            ``(1) include the identification and recruitment of 
        families most in need of services provided under this 
        subpart, as indicated by a low level of income, a low 
        level of adult literacy or English language proficiency 
        of the eligible parent or parents, and other need-
        related indicators;
            ``(2) include screening and preparation of parents, 
        including teenage parents, and children to enable those 
        parents and children to participate fully in the 
        activities and services provided under this subpart, 
        including testing, referral to necessary counselling, 
        other developmental and support services, and related 
        services;
            ``(3) be designed to accommodate the participants' 
        work schedule and other responsibilities, including the 
        provision of support services, when those services are 
        unavailable from other sources, necessary for 
        participation in the activities assisted under this 
        subpart, such as--
                    ``(A) scheduling and locating of services 
                to allow joint participation by parents and 
                children;
                    ``(B) child care for the period that 
                parents are involved in the program provided 
                under this subpart; and
                    ``(C) transportation for the purpose of 
                enabling parents and their children to 
                participate in programs authorized by this 
                subpart;
            ``(4) include high-quality, intensive instructional 
        programs that promote adult literacy and empower 
        parents to support the educational growth of their 
        children, developmentally appropriate early childhood 
        educational services, and preparation of children for 
        success in regular school programs;
            ``(5) with respect to the qualifications of staff 
        the cost of whose salaries are paid, in whole or in 
        part, with Federal funds provided under this subpart, 
        ensure that--
                    ``(A) not later than December 21, 2004--
                            ``(i) a majority of the individuals 
                        providing academic instruction--
                                    ``(I) shall have obtained 
                                an associate's, bachelor's, or 
                                graduate degree in a field 
                                related to early childhood 
                                education, elementary school or 
                                secondary school education, or 
                                adult education; and
                                    ``(II) if applicable, shall 
                                meet qualifications established 
                                by the State for early 
                                childhood education, elementary 
                                school or secondary school 
                                education, or adult education 
                                provided as part of an Even 
                                Start program or another family 
                                literacy program;
                            ``(ii) the individual responsible 
                        for administration of family literacy 
                        services under this subpart has 
                        received training in the operation of a 
                        family literacy program; and
                            ``(iii) paraprofessionals who 
                        provide support for academic 
                        instruction have a secondary school 
                        diploma or its recognized equivalent; 
                        and
                    ``(B) all new personnel hired to provide 
                academic instruction--
                            ``(i) have obtained an associate's, 
                        bachelor's, or graduate degree in a 
                        field related to early childhood 
                        education, elementary school or 
                        secondary school education, or adult 
                        education; and
                            ``(ii) if applicable, meet 
                        qualifications established by the State 
                        for early childhood education, 
                        elementary school or secondary school 
                        education, or adult education provided 
                        as part of an Even Start program or 
                        another family literacy program;
            ``(6) include special training of staff, including 
        child-care staff, to develop the skills necessary to 
        work with parents and young children in the full range 
        of instructional services offered through this subpart;
            ``(7) provide and monitor integrated instructional 
        services to participating parents and children through 
        home-based programs;
            ``(8) operate on a year-round basis, including the 
        provision of some program services, including 
        instructional and enrichment services, during the 
        summer months;
            ``(9) be coordinated with--
                    ``(A) other programs assisted under this 
                Act;
                    ``(B) any relevant programs under the Adult 
                Education and Family Literacy Act, the 
                Individuals with Disabilities Education Act, 
                and title I of the Workforce Investment Act of 
                1998; and
                    ``(C) the Head Start program, volunteer 
                literacy programs, and other relevant programs;
            ``(10) use instructional programs based on 
        scientifically based reading research for children and 
        adults, to the extent that research is available;
            ``(11) encourage participating families to attend 
        regularly and to remain in the program a sufficient 
        time to meet their program goals;
            ``(12) include reading-readiness activities for 
        preschool children based on scientifically based 
        reading research, to the extent available, to ensure 
        that children enter school ready to learn to read;
            ``(13) if applicable, promote the continuity of 
        family literacy to ensure that individuals retain and 
        improve their educational outcomes;
            ``(14) ensure that the programs will serve those 
        families most in need of the activities and services 
        provided by this subpart; and
            ``(15) provide for an independent evaluation of the 
        program, to be used for program improvement.

``SEC. 1236. ELIGIBLE PARTICIPANTS.

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

``SEC. 1237. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant 
under this subpart, an eligible entity shall submit an 
application to the State educational agency in such form and 
containing or accompanied by such information as the State 
educational agency shall require.
    ``(b) Required Documentation.--Each application shall 
include documentation, satisfactory to the State educational 
agency, that the eligible entity has the qualified personnel 
needed--
            ``(1) to develop, administer, and implement an Even 
        Start program under this subpart; and
            ``(2) to provide access to the special training 
        necessary to prepare staff for the program, which may 
        be offered by an eligible organization.
    ``(c) Plan.--
            ``(1) In general.--The application shall also 
        include a plan of operation and continuous improvement 
        for the program, that includes--
                    ``(A) a description of the program 
                objectives, strategies to meet those 
                objectives, and how those strategies and 
                objectives are consistent with the program 
                indicators established by the State;
                    ``(B) a description of the activities and 
                services that will be provided under the 
                program, including a description of how the 
                program will incorporate the program elements 
                required by section 1235;
                    ``(C) a description of the population to be 
                served and an estimate of the number of 
                participants to be served;
                    ``(D) as appropriate, a description of the 
                applicant's collaborative efforts with 
                institutions of higher education, community-
                based organizations, the State educational 
                agency, private elementary schools, or other 
                eligible organizations in carrying out the 
                program for which assistance is sought;
                    ``(E) a statement of the methods that will 
                be used--
                            ``(i) to ensure that the programs 
                        will serve families most in need of the 
                        activities and services provided by 
                        this subpart;
                            ``(ii) to provide services under 
                        this subpart to individuals with 
                        special needs, such as individuals with 
                        limited English proficiency and 
                        individuals with disabilities; and
                            ``(iii) to encourage participants 
                        to remain in the program for a time 
                        sufficient to meet the program's 
                        purpose;
                    ``(F) a description of how the plan is 
                integrated with other programs under this Act 
                or other Acts, as appropriate; and
                    ``(G) a description of how the plan 
                provides for rigorous and objective evaluation 
                of progress toward the program objectives 
                described in subparagraph (A) and for 
                continuing use of evaluation data for program 
                improvement.
            ``(2) Duration of the plan.--Each plan submitted 
        under paragraph (1) shall--
                    ``(A) remain in effect for the duration of 
                the eligible entity's participation under this 
                subpart; and
                    ``(B) be periodically reviewed and revised 
                by the eligible entity as necessary.
    ``(d) Consolidated Application.--The plan described in 
subsection (c)(1)(F) may be submitted as part of a consolidated 
application under section 9302.

``SEC. 1238. AWARD OF SUBGRANTS.

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

``SEC. 1239. EVALUATION.

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

``SEC. 1240. INDICATORS OF PROGRAM QUALITY.

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

``SEC. 1241. RESEARCH.

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

``SEC. 1242. CONSTRUCTION.

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

        ``Subpart 4--Improving Literacy Through School Libraries

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

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

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
            ``(1) support high-quality and comprehensive 
        educational programs for migratory children to help 
        reduce the educational disruptions and other problems 
        that result from repeated moves;
            ``(2) ensure that migratory children who move among 
        the States are not penalized in any manner by 
        disparities among the States in curriculum, graduation 
        requirements, and State academic content and student 
        academic achievement standards;
            ``(3) ensure that migratory children are provided 
        with appropriate educational services (including 
        supportive services) that address their special needs 
        in a coordinated and efficient manner;
            ``(4) ensure that migratory children receive full 
        and appropriate opportunities to meet the same 
        challenging State academic content and student academic 
        achievement standards that all children are expected to 
        meet;
            ``(5) design programs to help migratory children 
        overcome educational disruption, cultural and language 
        barriers, social isolation, various health-related 
        problems, and other factors that inhibit the ability of 
        such children to do well in school, and to prepare such 
        children to make a successful transition to 
        postsecondary education or employment; and
            ``(6) ensure that migratory children benefit from 
        State and local systemic reforms.

``SEC. 1302. PROGRAM AUTHORIZED.

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

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--
            ``(1) Fiscal year 2002.--For fiscal year 2002, each 
        State (other than the Commonwealth of Puerto Rico) is 
        entitled to receive under this part an amount equal 
        to--
                    ``(A) the sum of the estimated number of 
                migratory children aged 3 through 21 who reside 
                in the State full time and the full-time 
                equivalent of the estimated number of migratory 
                children aged 3 through 21 who reside in the 
                State part time, as determined in accordance 
                with subsection (e); multiplied by
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this paragraph shall 
                not be less than 32 percent, nor more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
            ``(2) Subsequent years.--
                    ``(A) Base amount.--
                            ``(i) In general.--Except as 
                        provided in subsection (b) and clause 
                        (ii), each State (other than the 
                        Commonwealth of Puerto Rico) is 
                        entitled to receive under this part, 
                        for fiscal year 2003 and succeeding 
                        fiscal years, an amount equal to--
                                    ``(I) the amount that such 
                                State received under this part 
                                for fiscal year 2002; plus
                                    ``(II) the amount allocated 
                                to the State under subparagraph 
                                (B).
                            ``(ii) Nonparticipating states.--In 
                        the case of a State (other than the 
                        Commonwealth of Puerto Rico) that did 
                        not receive any funds for fiscal year 
                        2002 under this part, the State shall 
                        receive, for fiscal year 2003 and 
                        succeeding fiscal years, an amount 
                        equal to--
                                    ``(I) the amount that such 
                                State would have received under 
                                this part for fiscal year 2002 
                                if its application under 
                                section 1304 for the year had 
                                been approved; plus
                                    ``(II) the amount allocated 
                                to the State under subparagraph 
                                (B).
                    ``(B) Allocation of additional amount.--For 
                fiscal year 2003 and succeeding fiscal years, 
                the amount (if any) by which the funds 
                appropriated to carry out this part for the 
                year exceed such funds for fiscal year 2002 
                shall be allocated to a State (other than the 
                Commonwealth of Puerto Rico) so that the State 
                receives an amount equal to--
                            ``(i) the sum of--
                                    ``(I) the number of 
                                identified eligible migratory 
                                children, aged 3 through 21, 
                                residing in the State during 
                                the previous year; and
                                    ``(II) the number of 
                                identified eligible migratory 
                                children, aged 3 through 21, 
                                who received services under 
                                this part in summer or 
                                intersession programs provided 
                                by the State during such year; 
                                multiplied by
                            ``(ii) 40 percent of the average 
                        per-pupil expenditure in the State, 
                        except that the amount determined under 
                        this clause may not be less than 32 
                        percent, or more than 48 percent, of 
                        the average per-pupil expenditure in 
                        the United States.
    ``(b) Allocation to Puerto Rico.--
            ``(1) In general.--For each fiscal year, the grant 
        which the Commonwealth of Puerto Rico shall be eligible 
        to receive under this part shall be the amount 
        determined by multiplying the number of children who 
        would be counted under subsection (a)(1)(A) if such 
        subsection applied to the Commonwealth of Puerto Rico 
        by the product of--
                    ``(A) the percentage which the average per-
                pupil expenditure in the Commonwealth of Puerto 
                Rico is of the lowest average per-pupil 
                expenditure of any of the 50 States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
            ``(2) Minimum percentage.--The percentage in 
        paragraph (1)(A) shall not be less than--
                    ``(A) for fiscal year 2002, 77.5 percent;
                    ``(B) for fiscal year 2003, 80.0 percent;
                    ``(C) for fiscal year 2004, 82.5 percent; 
                and
                    ``(D) for fiscal year 2005 and succeeding 
                fiscal years, 85.0 percent.
            ``(3) Limitation.--If the application of paragraph 
        (2) for any fiscal year would result in any of the 50 
        States or the District of Columbia receiving less under 
        this part than it received under this part for the 
        preceding fiscal year, then the percentage described in 
        paragraph (1)(A) that is used for the Commonwealth of 
        Puerto Rico for the fiscal year for which the 
        determination is made shall be the greater of the 
        percentage in paragraph (1)(A) for such fiscal year or 
        the percentage used for the preceding fiscal year.
    ``(c) Ratable Reductions; Reallocations.--
            ``(1) In general.--(A) If, after the Secretary 
        reserves funds under section 1308(c), the amount 
        appropriated to carry out this part for any fiscal year 
        is insufficient to pay in full the amounts for which 
        all States are eligible, the Secretary shall ratably 
        reduce each such amount.
            ``(B) If additional funds become available for 
        making such payments for any fiscal year, the Secretary 
        shall allocate such funds to States in amounts that the 
        Secretary determines will best carry out the purpose of 
        this part.
            ``(2) Special rule.--(A) The Secretary shall 
        further reduce the amount of any grant to a State under 
        this part for any fiscal year if the Secretary 
        determines, based on available information on the 
        numbers and needs of migratory children in the State 
        and the program proposed by the State to address such 
        needs, that such amount exceeds the amount required 
        under section 1304.
            ``(B) The Secretary shall reallocate such excess 
        funds to other States whose grants under this part 
        would otherwise be insufficient to provide an 
        appropriate level of services to migratory children, in 
        such amounts as the Secretary determines are 
        appropriate.
    ``(d) Consortium Arrangements.--
            ``(1) In general.--In the case of a State that 
        receives a grant of $1,000,000 or less under this 
        section, the Secretary shall consult with the State 
        educational agency to determine whether consortium 
        arrangements with another State or other appropriate 
        entity would result in delivery of services in a more 
        effective and efficient manner.
            ``(2) Proposals.--Any State, regardless of the 
        amount of such State's allocation, may submit a 
        consortium arrangement to the Secretary for approval.
            ``(3) Approval.--The Secretary shall approve a 
        consortium arrangement under paragraph (1) or (2) if 
        the proposal demonstrates that the arrangement will--
                    ``(A) reduce administrative costs or 
                program function costs for State programs; and
                    ``(B) make more funds available for direct 
                services to add substantially to the welfare or 
                educational attainment of children to be served 
                under this part.
    ``(e) Determining Numbers of Eligible Children.--In order 
to determine the estimated number of migratory children 
residing in each State for purposes of this section, the 
Secretary shall--
            ``(1) use such information as the Secretary finds 
        most accurately reflects the actual number of migratory 
        children;
            ``(2) develop and implement a procedure for more 
        accurately reflecting cost factors for different types 
        of summer and intersession program designs;
            ``(3) adjust the full-time equivalent number of 
        migratory children who reside in each State to take 
        into account--
                    ``(A) the special needs of those children 
                participating in special programs provided 
                under this part that operate during the summer 
                and intersession periods; and
                    ``(B) the additional costs of operating 
                such programs; and
            ``(4) conduct an analysis of the options for 
        adjusting the formula so as to better direct services 
        to the child whose education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State desiring to receive 
a grant under this part for any fiscal year shall submit an 
application to the Secretary at such time and in such manner as 
the Secretary may require.
    ``(b) Program Information.--Each such application shall 
include--
            ``(1) a description of how, in planning, 
        implementing, and evaluating programs and projects 
        assisted under this part, the State and its local 
        operating agencies will ensure that the special 
        educational needs of migratory children, including 
        preschool migratory children, are identified and 
        addressed through--
                    ``(A) the full range of services that are 
                available for migratory children from 
                appropriate local, State, and Federal 
                educational programs;
                    ``(B) joint planning among local, State, 
                and Federal educational programs serving 
                migrant children, including language 
                instruction educational programs under part A 
                or B of title III;
                    ``(C) the integration of services available 
                under this part with services provided by those 
                other programs; and
                    ``(D) measurable program goals and 
                outcomes;
            ``(2) a description of the steps the State is 
        taking to provide all migratory students with the 
        opportunity to meet the same challenging State academic 
        content standards and challenging State student 
        academic achievement standards that all children are 
        expected to meet;
            ``(3) a description of how the State will use funds 
        received under this part to promote interstate and 
        intrastate coordination of services for migratory 
        children, including how, consistent with procedures the 
        Secretary may require, the State will provide for 
        educational continuity through the timely transfer of 
        pertinent school records, including information on 
        health, when children move from one school to another, 
        whether or not such move occurs during the regular 
        school year;
            ``(4) a description of the State's priorities for 
        the use of funds received under this part, and how such 
        priorities relate to the State's assessment of needs 
        for services in the State;
            ``(5) a description of how the State will determine 
        the amount of any subgrants the State will award to 
        local operating agencies, taking into account the 
        numbers and needs of migratory children, the 
        requirements of subsection (d), and the availability of 
        funds from other Federal, State, and local programs;
            ``(6) such budgetary and other information as the 
        Secretary may require; and
            ``(7) a description of how the State will encourage 
        programs and projects assisted under this part to offer 
        family literacy services if the program or project 
        serves a substantial number of migratory children who 
        have parents who do not have a high school diploma or 
        its recognized equivalent or who have low levels of 
        literacy.
    ``(c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
            ``(1) funds received under this part will be used 
        only--
                    ``(A) for programs and projects, including 
                the acquisition of equipment, in accordance 
                with section 1306; and
                    ``(B) to coordinate such programs and 
                projects with similar programs and projects 
                within the State and in other States, as well 
                as with other Federal programs that can benefit 
                migratory children and their families;
            ``(2) such programs and projects will be carried 
        out in a manner consistent with the objectives of 
        section 1114, subsections (b) and (d) of section 1115, 
        subsections (b) and (c) of section 1120A, and part I;
            ``(3) in the planning and operation of programs and 
        projects at both the State and local agency operating 
        level, there is consultation with parent advisory 
        councils for programs of 1 school year in duration, and 
        that all such programs and projects are carried out--
                    ``(A) in a manner that provides for the 
                same parental involvement as is required for 
                programs and projects under section 1118, 
                unless extraordinary circumstances make such 
                provision impractical; and
                    ``(B) in a format and language 
                understandable to the parents;
            ``(4) in planning and carrying out such programs 
        and projects, there has been, and will be, adequate 
        provision for addressing the unmet education needs of 
        preschool migratory children;
            ``(5) the effectiveness of such programs and 
        projects will be determined, where feasible, using the 
        same approaches and standards that will be used to 
        assess the performance of students, schools, and local 
        educational agencies under part A;
            ``(6) to the extent feasible, such programs and 
        projects will provide for--
                    ``(A) advocacy and outreach activities for 
                migratory children and their families, 
                including informing such children and families 
                of, or helping such children and families gain 
                access to, other education, health, nutrition, 
                and social services;
                    ``(B) professional development programs, 
                including mentoring, for teachers and other 
                program personnel;
                    ``(C) family literacy programs, including 
                such programs that use models developed under 
                Even Start;
                    ``(D) the integration of information 
                technology into educational and related 
                programs; and
                    ``(E) programs to facilitate the transition 
                of secondary school students to postsecondary 
                education or employment; and
            ``(7) the State will assist the Secretary in 
        determining the number of migratory children under 
        paragraphs (1)(A) and (2)(B)(i) of section 1303(a), 
        through such procedures as the Secretary may require.
    ``(d) Priority for Services.--In providing services with 
funds received under this part, each recipient of such funds 
shall give priority to migratory children who are failing, or 
most at risk of failing, to meet the State's challenging State 
academic content standards and challenging State student 
academic achievement standards, and whose education has been 
interrupted during the regular school year.
    ``(e) Continuation of Services.--Notwithstanding any other 
provision of this part--
            ``(1) a child who ceases to be a migratory child 
        during a school term shall be eligible for services 
        until the end of such term;
            ``(2) a child who is no longer a migratory child 
        may continue to receive services for 1 additional 
        school year, but only if comparable services are not 
        available through other programs; and
            ``(3) secondary school students who were eligible 
        for services in secondary school may continue to be 
        served through credit accrual programs until 
        graduation.

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

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

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

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

``SEC. 1307. BYPASS.

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

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

    ``(a) Improvement of Coordination.--
            ``(1) In general.--The Secretary, in consultation 
        with the States, may make grants to, or enter into 
        contracts with, State educational agencies, local 
        educational agencies, institutions of higher education, 
        and other public and private nonprofit entities to 
        improve the interstate and intrastate coordination 
        among such agencies' educational programs, including 
        the establishment or improvement of programs for credit 
        accrual and exchange, available to migratory students.
            ``(2) Duration.--Grants under this subsection may 
        be awarded for not more than 5 years.
    ``(b) Student Records.--
            ``(1) Assistance.--The Secretary shall assist 
        States in developing effective methods for the 
        electronic transfer of student records and in 
        determining the number of migratory children in each 
        State.
            ``(2) Information system.--
                    ``(A) In general.--The Secretary, in 
                consultation with the States, shall ensure the 
                linkage of migrant student record systems for 
                the purpose of electronically exchanging, among 
                the States, health and educational information 
                regarding all migratory students. The Secretary 
                shall ensure such linkage occurs in a cost-
                effective manner, utilizing systems used by the 
                States prior to, or developed after, the date 
                of enactment of the No Child Left Behind Act of 
                2001, and shall determine the minimum data 
                elements that each State receiving funds under 
                this part shall collect and maintain. Such 
                elements may include--
                            ``(i) immunization records and 
                        other health information;
                            ``(ii) elementary and secondary 
                        academic history (including partial 
                        credit), credit accrual, and results 
                        from State assessments required under 
                        section 1111(b);
                            ``(iii) other academic information 
                        essential to ensuring that migratory 
                        children achieve to high standards; and
                            ``(iv) eligibility for services 
                        under the Individuals with Disabilities 
                        Education Act.
                    ``(B) Notice and comment.--After consulting 
                with the States under subparagraph (A), the 
                Secretary shall publish a notice in the Federal 
                Register seeking public comment on the proposed 
                data elements that each State receiving funds 
                under this part shall be required to collect 
                for purposes of electronic transfer of 
                migratory student information and the 
                requirements that States shall meet for 
                immediate electronic access to such 
                information. Such publication shall occur not 
                later than 120 days after the date of enactment 
                of the No Child Left Behind Act of 2001.
            ``(3) No cost for certain transfers.--A State 
        educational agency or local educational agency 
        receiving assistance under this part shall make student 
        records available to another State educational agency 
        or local educational agency that requests the records 
        at no cost to the requesting agency, if the request is 
        made in order to meet the needs of a migratory child.
            ``(4) Report to congress.--
                    ``(A) In general.--Not later than April 30, 
                2003, the Secretary shall report to the 
                Committee on Health, Education, Labor, and 
                Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives the Secretary's findings and 
                recommendations regarding the maintenance and 
                transfer of health and educational information 
                for migratory students by the States.
                    ``(B) Required contents.--The Secretary 
                shall include in such report--
                            ``(i) a review of the progress of 
                        States in developing and linking 
                        electronic records transfer systems;
                            ``(ii) recommendations for the 
                        development and linkage of such 
                        systems; and
                            ``(iii) recommendations for 
                        measures that may be taken to ensure 
                        the continuity of services provided for 
                        migratory students.
    ``(c) Availability of Funds.--For the purpose of carrying 
out this section in any fiscal year, the Secretary shall 
reserve not more than $10,000,000 of the amount appropriated to 
carry out this part for such year.
    ``(d) Incentive Grants.--From the amounts made available to 
carry out this section for any fiscal year, the Secretary may 
reserve not more than $3,000,000 to award grants of not more 
than $250,000 on a competitive basis to State educational 
agencies that propose a consortium arrangement with another 
State or other appropriate entity that the Secretary 
determines, pursuant to criteria that the Secretary shall 
establish, will improve the delivery of services to migratory 
children whose education is interrupted.
    ``(e) Data Collection.--The Secretary shall direct the 
National Center for Education Statistics to collect data on 
migratory children.

``SEC. 1309. DEFINITIONS.

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

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

``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.

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

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

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

                   ``Subpart 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

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

``SEC. 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
            ``(1) In general.--Each State agency described in 
        section 1411 (other than an agency in the Commonwealth 
        of Puerto Rico) is eligible to receive a subgrant under 
        this subpart, for each fiscal year, in an amount equal 
        to the product of--
                    ``(A) the number of neglected or delinquent 
                children and youth described in section 1411 
                who--
                            ``(i) are enrolled for at least 15 
                        hours per week in education programs in 
                        adult correctional institutions; and
                            ``(ii) are enrolled for at least 20 
                        hours per week--
                                    ``(I) in education programs 
                                in institutions for neglected 
                                or delinquent children and 
                                youth; or
                                    ``(II) in community day 
                                programs for neglected or 
                                delinquent children and youth; 
                                and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this subparagraph shall 
                not be less than 32 percent, nor more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
            ``(2) Special rule.--The number of neglected or 
        delinquent children and youth determined under 
        paragraph (1) shall--
                    ``(A) be determined by the State agency by 
                a deadline set by the Secretary, except that no 
                State agency shall be required to determine the 
                number of such children and youth on a specific 
                date set by the Secretary; and
                    ``(B) be adjusted, as the Secretary 
                determines is appropriate, to reflect the 
                relative length of such agency's annual 
                programs.
    ``(b) Subgrants to State Agencies in Puerto Rico.--
            ``(1) In general.--For each fiscal year, the amount 
        of the subgrant which a State agency in the 
        Commonwealth of Puerto Rico shall be eligible to 
        receive under this subpart shall be the amount 
        determined by multiplying the number of children 
        counted under subsection (a)(1)(A) for the Commonwealth 
        of Puerto Rico by the product of--
                    ``(A) the percentage which the average per-
                pupil expenditure in the Commonwealth of Puerto 
                Rico is of the lowest average per-pupil 
                expenditure of any of the 50 States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
            ``(2) Minimum percentage.--The percentage in 
        paragraph (1)(A) shall not be less than--
                    ``(A) for fiscal year 2002, 77.5 percent;
                    ``(B) for fiscal year 2003, 80.0 percent;
                    ``(C) for fiscal year 2004, 82.5 percent; 
                and
                    ``(D) for fiscal year 2005 and succeeding 
                fiscal years, 85.0 percent.
            ``(3) Limitation.--If the application of paragraph 
        (2) would result in any of the 50 States or the 
        District of Columbia receiving less under this subpart 
        than it received under this subpart for the preceding 
        fiscal year, then the percentage described in paragraph 
        (1)(A) that is used for the Commonwealth of Puerto Rico 
        for the fiscal year for which the determination is made 
        shall be the greater of--
                    ``(A) the percentage in paragraph (1)(A) 
                for such fiscal year; or
                    ``(B) the percentage used for the preceding 
                fiscal year.
    ``(c) Ratable Reductions in Case of Insufficient 
Appropriations.--If the amount appropriated for any fiscal year 
for subgrants under subsections (a) and (b) is insufficient to 
pay the full amount for which all State agencies are eligible 
under such subsections, the Secretary shall ratably reduce each 
such amount.

``SEC. 1413. STATE REALLOCATION OF FUNDS.

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

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

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

``SEC. 1415. USE OF FUNDS.

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

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

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

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

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

``SEC. 1418. TRANSITION SERVICES.

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

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

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

                   ``Subpart 2--Local Agency Programs

``SEC. 1421. PURPOSE.

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

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

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

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

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

``SEC. 1424. USES OF FUNDS.

    ``Funds provided to local educational agencies under this 
subpart may be used, as appropriate, for--
            ``(1) programs that serve children and youth 
        returning to local schools from correctional 
        facilities, to assist in the transition of such 
        children and youth to the school environment and help 
        them remain in school in order to complete their 
        education;
            ``(2) dropout prevention programs which serve at-
        risk children and youth, including pregnant and 
        parenting teens, children and youth who have come in 
        contact with the juvenile justice system, children and 
        youth at least 1 year behind their expected grade 
        level, migrant youth, immigrant youth, students with 
        limited English proficiency, and gang members;
            ``(3) the coordination of health and social 
        services for such individuals if there is a likelihood 
        that the provision of such services, including day 
        care, drug and alcohol counseling, and mental health 
        services, will improve the likelihood such individuals 
        will complete their education;
            ``(4) special programs to meet the unique academic 
        needs of participating children and youth, including 
        vocational and technical education, special education, 
        career counseling, curriculum-based youth 
        entrepreneurship education, and assistance in securing 
        student loans or grants for postsecondary education; 
        and
            ``(5) programs providing mentoring and peer 
        mediation.

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

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

``SEC. 1426. ACCOUNTABILITY.

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

                    ``Subpart 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

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

``SEC. 1432. DEFINITIONS.

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

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

``SEC. 1501. EVALUATIONS.

    ``(a) National Assessment of Title I.--
            ``(1) In general.--The Secretary shall conduct a 
        national assessment of the programs assisted under this 
        title and the impact of this title on States, local 
        educational agencies, schools, and students.
            ``(2) Issues to be examined.--In conducting the 
        assessment under this subsection, the Secretary shall 
        examine, at a minimum, the following:
                    ``(A) The implementation of programs 
                assisted under this title and the impact of 
                such implementation on increasing student 
                academic achievement (particularly in schools 
                with high concentrations of children living in 
                poverty), relative to the goal of all students 
                reaching the proficient level of achievement 
                based on State academic assessments, 
                challenging State academic content standards, 
                and challenging State student academic 
                achievement standards under section 1111.
                    ``(B) The types of programs and services 
                that have demonstrated the greatest likelihood 
                of helping students reach the proficient and 
                advanced levels of achievement based on State 
                student academic achievement standards and 
                State academic content standards.
                    ``(C) The implementation of State academic 
                standards, assessments, and accountability 
                systems developed under this title, including--
                            ``(i) the time and cost required 
                        for the development of academic 
                        assessments for students in grades 3 
                        through 8;
                            ``(ii) how well such State 
                        assessments meet the requirements for 
                        assessments described in this title; 
                        and
                            ``(iii) the impact of such 
                        standards, assessments, and 
                        accountability systems on educational 
                        programs and instruction at the local 
                        level.
                    ``(D) Each State's definition of adequate 
                yearly progress, including--
                            ``(i) the impact of applying this 
                        definition to schools, local 
                        educational agencies, and the States;
                            ``(ii) the number of schools and 
                        local educational agencies not meeting 
                        this definition; and
                            ``(iii) the changes in the 
                        identification of schools in need of 
                        improvement as a result of such 
                        definition.
                    ``(E) How schools, local educational 
                agencies, and States have--
                            ``(i) publicized and disseminated 
                        the local educational agency report 
                        cards required under section 1111(b) to 
                        teachers, school staff, students, 
                        parents, and the community;
                            ``(ii) used funds made available 
                        under this title to provide preschool 
                        and family literacy services and the 
                        impact of these services on students' 
                        school readiness;
                            ``(iii) implemented the provisions 
                        of section 1118 and afforded parents 
                        meaningful opportunities to be involved 
                        in the education of their children;
                            ``(iv) used Federal, State, and 
                        local educational agency funds and 
                        resources to support schools and 
                        provide technical assistance to improve 
                        the achievement of students in low-
                        performing schools, including the 
                        impact of the technical assistance on 
                        such achievement; and
                            ``(v) used State educational agency 
                        and local educational agency funds and 
                        resources to help schools in which 50 
                        percent or more of the students are 
                        from families with incomes below the 
                        poverty line meet the requirement 
                        described in section 1119 of having all 
                        teachers highly qualified not later 
                        than the end of the 2005-2006 school 
                        year
                    ``(F) The implementation of schoolwide 
                programs and targeted assistance programs under 
                this title and the impact of such programs on 
                improving student academic achievement, 
                including the extent to which schools meet the 
                requirements of such programs.
                    ``(G) The extent to which varying models of 
                comprehensive school reform are funded and 
                implemented under this title, and the effect of 
                the implementation of such models on improving 
                achievement of disadvantaged students.
                    ``(H) The costs as compared to the benefits 
                of the activities assisted under this title.
                    ``(I) The extent to which actions 
                authorized under section 1116 are implemented 
                by State educational agencies and local 
                educational agencies to improve the academic 
                achievement of students in low-performing 
                schools, and the effectiveness of the 
                implementation of such actions, including the 
                following:
                            ``(i) The number of schools 
                        identified for school improvement and 
                        how many years the schools remain in 
                        this status.
                            ``(ii) The types of support 
                        provided by the State educational 
                        agencies and local educational agencies 
                        to schools and local educational 
                        agencies respectively identified as in 
                        need of improvement, and the impact of 
                        such support on student achievement.
                            ``(iii) The number of parents who 
                        take advantage of the public school 
                        choice provisions of this title, the 
                        costs (including transportation costs) 
                        associated with implementing these 
                        provisions, the implementation of these 
                        provisions, and the impact of these 
                        provisions (including the impact of 
                        attending another school) on student 
                        achievement.
                            ``(iv) The number of parents who 
                        choose to take advantage of the 
                        supplemental services option, the 
                        criteria used by the States to 
                        determine the quality of providers, the 
                        kinds of services that are available 
                        and utilized, the costs associated with 
                        implementing this option, and the 
                        impact of receiving supplemental 
                        services on student achievement.
                            ``(v) The implementation and impact 
                        of actions that are taken with regard 
                        to schools and local educational 
                        agencies identified for corrective 
                        action and restructuring.
                    ``(J) The extent to which State and local 
                fiscal accounting requirements under this title 
                affect the flexibility of schoolwide programs.
                    ``(K) The implementation and impact of the 
                professional development activities assisted 
                under this title and title II on instruction, 
                student academic achievement, and teacher 
                qualifications.
                    ``(L) The extent to which the assistance 
                made available under this title, including 
                funds under section 1002, is targeted to 
                disadvantaged students, schools, and local 
                educational agencies with the greatest need.
                    ``(M) The effectiveness of Federal 
                administration assistance made available under 
                this title, including monitoring and technical 
                assistance.
                    ``(N) The academic achievement of the 
                groups of students described in section 
                1111(b)(2)(C)(v)(II).
                    ``(O) Such other issues as the Secretary 
                considers appropriate.
            ``(3) Sources of information.--In conducting the 
        assessment under this subsection, the Secretary shall 
        use information from a variety of sources, including 
        the National Assessment of Educational Progress 
        (carried out under section 411 of the National 
        Education Statistics Act of 1994), State evaluations, 
        and other research studies.
            ``(4) Coordination.--In carrying out this 
        subsection, the Secretary shall--
                    ``(A) coordinate the national assessment 
                under this subsection with the longitudinal 
                study described in subsection (c); and
                    ``(B) ensure that the independent review 
                panel described in subsection (d) participates 
                in conducting the national assessment under 
                this subsection, including planning for and 
                reviewing the assessment.
            ``(5) Developmentally appropriate measures.--In 
        conducting the national assessment under this 
        subsection, the Secretary shall use developmentally 
        appropriate measures to assess student academic 
        achievement.
            ``(6) Reports.--
                    ``(A) Interim report.--Not later than 3 
                years after the date of enactment of the No 
                Child Left Behind Act of 2001, the Secretary 
                shall transmit to the President, the Committee 
                on Education and the Workforce of the House of 
                Representatives, and the Committee on Health, 
                Education, Labor, and Pensions of the Senate an 
                interim report on the national assessment 
                conducted under this subsection.
                    ``(B) Final report.--Not later than 5 years 
                after the date of enactment of the No Child 
                Left Behind Act of 2001, the Secretary shall 
                transmit to the President, the Committee on 
                Education and the Workforce of the House of 
                Representatives, and the Committee on Health, 
                Education, Labor, and Pensions of the Senate a 
                final report on the national assessment 
                conducted under this subsection.
    ``(b) Studies and Data Collection.--
            ``(1) In general.--In addition to other activities 
        described in this section, the Secretary may, directly 
        or through awarding grants to or entering into 
        contracts with appropriate entities--
                    ``(A) assess the implementation and 
                effectiveness of programs under this title;
                    ``(B) collect the data necessary to comply 
                with the Government Performance and Results Act 
                of 1993; and
                    ``(C) provide guidance and technical 
                assistance to State educational agencies and 
                local educational agencies in developing and 
                maintaining management information systems 
                through which such agencies may develop program 
                performance indicators to improve services and 
                performance.
            ``(2) Minimum information.--In carrying out this 
        subsection, the Secretary shall collect, at a minimum, 
        trend information on the effect of each program 
        authorized under this title, which shall complement the 
        data collected and reported under subsections (a) and 
        (c).
    ``(c) National Longitudinal Study.--
            ``(1) In general.--The Secretary shall conduct a 
        longitudinal study of schools receiving assistance 
        under part A.
            ``(2) Issues to be examined.--In carrying out this 
        subsection, the Secretary shall ensure that the study 
        referred to in paragraph (1) provides Congress and 
        educators with each of the following:
                    ``(A) An accurate description and analysis 
                of the short- and long-term effect of the 
                assistance made available under this title on 
                academic achievement.
                    ``(B) Information that can be used to 
                improve the effectiveness of the assistance 
                made available under this title in enabling 
                students to meet challenging academic 
                achievement standards.
                    ``(C) An analysis of educational practices 
                or model programs that are effective in 
                improving the achievement of disadvantaged 
                children.
                    ``(D) An analysis of the costs as compared 
                to the benefits of the assistance made 
                available under this title in improving the 
                achievement of disadvantaged children.
                    ``(E) An analysis of the effects of the 
                availability of school choice options under 
                section 1116 on the academic achievement of 
                disadvantaged students, on schools in school 
                improvement, and on schools from which students 
                have transferred under such options.
                    ``(F) Such other information as the 
                Secretary considers appropriate.
            ``(3) Scope.--In conducting the study referred to 
        in paragraph (1), the Secretary shall ensure that the 
        study--
                    ``(A) bases its analysis on a nationally 
                representative sample of schools participating 
                in programs under this title;
                    ``(B) to the extent practicable, includes 
                in its analysis students who transfer to 
                different schools during the course of the 
                study; and
                    ``(C) analyzes varying models or strategies 
                for delivering school services, including--
                            ``(i) schoolwide and targeted 
                        services; and
                            ``(ii) comprehensive school reform 
                        models.
    ``(d) Independent Review Panel.--
            ``(1) In general.--The Secretary shall establish an 
        independent review panel (in this subsection referred 
        to as the `Review Panel') to advise the Secretary on 
        methodological and other issues that arise in carrying 
        out subsections (a) and (c).
            ``(2) Appointment of members.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall appoint members of the 
                Review Panel from among qualified individuals 
                who are--
                            ``(i) specialists in statistics, 
                        evaluation, research, and assessment;
                            ``(ii) education practitioners, 
                        including teachers, principals, and 
                        local and State superintendents;
                            ``(iii) parents and members of 
                        local school boards or other 
                        organizations involved with the 
                        implementation and operation of 
                        programs under this title; and
                            ``(iv) other individuals with 
                        technical expertise who will contribute 
                        to the overall rigor and quality of the 
                        program evaluation.
                    ``(B) Limitations.--In appointing members 
                of the Review Panel, the Secretary shall ensure 
                that--
                            ``(i) in order to ensure diversity, 
                        the Review Panel includes individuals 
                        appointed under subparagraph (A)(i) who 
                        represent disciplines or programs 
                        outside the field of education; and
                            ``(ii) the total number of the 
                        individuals appointed under 
                        subparagraph (A)(ii) or (A)(iv) does 
                        not exceed \1/4\ of the total number of 
                        the individuals appointed under this 
                        paragraph.
            ``(3) Functions.--The Review Panel shall consult 
        with and advise the Secretary--
                    ``(A) to ensure that the assessment 
                conducted under subsection (a) and the study 
                conducted under subsection (c)--
                            ``(i) adhere to the highest 
                        possible standards of quality with 
                        respect to research design, statistical 
                        analysis, and the dissemination of 
                        findings; and
                            ``(ii) use valid and reliable 
                        measures to document program 
                        implementation and impacts; and
                    ``(B) to ensure--
                            ``(i) that the final report 
                        described in subsection (a)(6)(B) is 
                        reviewed not later than 120 days after 
                        its completion by not less than 2 
                        independent experts in program 
                        evaluation (who may be from among the 
                        members of the Review Panel appointed 
                        under paragraph (2));
                            ``(ii) that such experts evaluate 
                        and comment on the degree to which the 
                        report complies with subsection (a); 
                        and
                            ``(iii) that the comments of such 
                        experts are transmitted with the report 
                        under subsection (a)(6)(B).

``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

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

``SEC. 1503. ASSESSMENT EVALUATION.

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

``SEC. 1504. CLOSE UP FELLOWSHIP PROGRAM.

    ``(a) Program for Middle School and Secondary School 
Students.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance 
                with this subsection, the Secretary may make 
                grants to the Close Up Foundation of 
                Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the 
                purpose of assisting the Close Up Foundation in 
                carrying out its programs of increasing civic 
                responsibility and understanding of the Federal 
                Government among middle school and secondary 
                school students.
                    ``(B) Use of funds.--Grants under this 
                subsection shall be used only to provide 
                financial assistance to economically 
                disadvantaged students who participate in the 
                programs described in subparagraph (A).
                    ``(C) Name of fellowships.--Financial 
                assistance received by students pursuant to 
                this subsection shall be known as Close Up 
                fellowships.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under 
                this subsection may be made except upon an 
                application at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may reasonably require.
                    ``(B) Contents of application.--Each 
                application submitted under this paragraph 
                shall contain assurances that--
                            ``(i) Close Up fellowships provided 
                        under this subsection shall be made to 
                        economically disadvantaged middle 
                        school and secondary school students;
                            ``(ii) every effort shall be made 
                        to ensure the participation of students 
                        from rural, small town, and urban 
                        areas;
                            ``(iii) in awarding the fellowships 
                        to economically disadvantaged students, 
                        special consideration shall be given to 
                        the participation of those students 
                        with special educational needs, 
                        including students with disabilities, 
                        ethnic minority students, and students 
                        with migrant parents; and
                            ``(iv) the funds received under 
                        this subsection shall be properly 
                        disbursed.
    ``(b) Program for Middle School and Secondary School 
Teachers.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance 
                with this subsection, the Secretary may make 
                grants to the Close Up Foundation of 
                Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the 
                purpose of assisting the Close Up Foundation in 
                carrying out its programs of professional 
                development for middle school and secondary 
                school teachers and its programs to increase 
                civic responsibility and understanding of the 
                Federal Government among the teachers' 
                students.
                    ``(B) Use of funds.--Grants under this 
                subsection shall be used only to provide 
                financial assistance to teachers who 
                participate in the programs described in 
                subparagraph (A).
                    ``(C) Name of fellowships.--Financial 
                assistance received by teachers pursuant to 
                this subsection shall be known as Close Up 
                fellowships.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under 
                this subsection may be made except upon an 
                application at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may reasonably require.
                    ``(B) Contents of application.--Each 
                application submitted under this paragraph 
                shall contain assurances that--
                            ``(i) Close Up fellowships provided 
                        under this subsection shall be made 
                        only to a teacher who has worked with 
                        at least 1 student from such teacher's 
                        school who participates in a program 
                        described in subsection (a)(1)(A);
                            ``(ii) no teacher shall receive 
                        more than 1 such fellowship in any 
                        fiscal year; and
                            ``(iii) the funds received under 
                        this subsection shall be properly 
                        disbursed.
    ``(c) Programs for New Americans.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance 
                with this subsection, the Secretary may make 
                grants to the Close Up Foundation of 
                Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the 
                purpose of assisting the Close Up Foundation in 
                carrying out its programs of increasing civic 
                responsibility and understanding of the Federal 
                Government among economically disadvantaged 
                middle school and secondary school recent 
                immigrant students.
                    ``(B) Definition.--In this subsection, the 
                term `recent immigrant student' means a student 
                who is a member of a family that immigrated to 
                the United States within 5 years of the 
                student's participation in such a program.
                    ``(C) Use of funds.--Grants under this 
                subsection shall be used only to provide 
                financial assistance to economically 
                disadvantaged recent immigrant students and 
                their teachers who participate in the programs 
                described in subparagraph (A).
                    ``(D) Name of fellowships.--Financial 
                assistance received by students and teachers 
                pursuant to this subsection shall be known as 
                Close Up Fellowships for New Americans.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under 
                this subsection may be made except upon an 
                application at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may reasonably require.
                    ``(B) Contents of application.--Each 
                application submitted under this paragraph 
                shall contain assurances that--
                            ``(i) Close Up Fellowships for New 
                        Americans shall be made to economically 
                        disadvantaged middle school and 
                        secondary school recent immigrant 
                        students;
                            ``(ii) every effort shall be made 
                        to ensure the participation of recent 
                        immigrant students from rural, small 
                        town, and urban areas;
                            ``(iii) in awarding the fellowships 
                        to economically disadvantaged recent 
                        immigrant students, special 
                        consideration shall be given to the 
                        participation of those students with 
                        special educational needs, including 
                        students with disabilities, students 
                        with migrant parents, and ethnic 
                        minority students;
                            ``(iv) fully describe the 
                        activities to be carried out with the 
                        proceeds of the grant made under 
                        paragraph (1); and
                            ``(v) the funds received under this 
                        subsection shall be properly disbursed.
    ``(d) General Provisions.--
            ``(1) Administrative provisions.--
                    ``(A) Accountability.--In consultation with 
                the Secretary, the Close Up Foundation shall 
                devise and implement procedures to measure the 
                efficacy of the programs authorized in 
                subsections (a), (b), and (c) in attaining 
                objectives that include the following:
                            ``(i) Providing young people with 
                        an increased understanding of the 
                        Federal Government.
                            ``(ii) Heightening a sense of civic 
                        responsibility among young people.
                            ``(iii) Enhancing the skills of 
                        educators in teaching young people 
                        about civic responsibility, the Federal 
                        Government, and attaining citizenship 
                        competencies.
                    ``(B) General rule.--Payments under this 
                section may be made in installments, in 
                advance, or by way of reimbursement, with 
                necessary adjustments on account of 
                underpayments or overpayments.
                    ``(C) Audit rule.--The Comptroller General 
                of the United States or any of the Comptroller 
                General's duly authorized representatives shall 
                have access for the purpose of audit and 
                examination to any books, documents, papers, 
                and records that are pertinent to any grant 
                under this section.
             ``(2) Continuation of awards.--Notwithstanding any 
        other provision of this Act, any person or entity that 
        was awarded a grant under part G of title X before the 
        date of enactment of the No Child Left Behind Act of 
        2001 shall continue to receive funds in accordance with 
        the terms of such award until the date on which the 
        award period terminates under such terms.

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. 1601. PURPOSE.

    ``The purpose of this part is to provide financial 
incentives for schools to develop comprehensive school reforms, 
based upon scientifically based research and effective 
practices that include an emphasis on basic academics and 
parental involvement so that all children can meet challenging 
State academic content and academic achievement standards.

``SEC. 1602. PROGRAM AUTHORIZATION.

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

``SEC. 1603. STATE APPLICATIONS.

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

``SEC. 1604. STATE USE OF FUNDS.

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

``SEC. 1605. LOCAL APPLICATIONS.

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

``SEC. 1606. LOCAL USE OF FUNDS.

    ``(a) Uses of Funds.--A local educational agency or 
consortium that receives a subgrant under this part shall 
provide the subgrant funds to schools that are eligible for 
assistance under part A and served by the agency, to enable the 
schools to implement a comprehensive school reform program 
that--
            ``(1) employs proven strategies and proven methods 
        for student learning, teaching, and school management 
        that are based on scientifically based research and 
        effective practices and have been replicated 
        successfully in schools;
            ``(2) integrates a comprehensive design for 
        effective school functioning, including instruction, 
        assessment, classroom management, professional 
        development, parental involvement, and school 
        management, that aligns the school's curriculum, 
        technology, and professional development into a 
        comprehensive school reform plan for schoolwide change 
        designed to enable all students to meet challenging 
        State content and student academic achievement 
        standards and addresses needs identified through a 
        school needs assessment;
            ``(3) provides high quality and continuous teacher 
        and staff professional development;
            ``(4) includes measurable goals for student 
        academic achievement and benchmarks for meeting such 
        goals;
            ``(5) is supported by teachers, principals, 
        administrators, school personnel staff, and other 
        professional staff;
            ``(6) provides support for teachers, principals, 
        administrators, and other school staff;
            ``(7) provides for the meaningful involvement of 
        parents and the local community in planning, 
        implementing, and evaluating school improvement 
        activities consistent with section 1118;
            ``(8) uses high quality external technical support 
        and assistance from an entity that has experience and 
        expertise in schoolwide reform and improvement, which 
        may include an institution of higher education;
            ``(9) includes a plan for the annual evaluation of 
        the implementation of school reforms and the student 
        results achieved;
            ``(10) identifies other resources, including 
        Federal, State, local, and private resources, that 
        shall be used to coordinate services that will support 
        and sustain the comprehensive school reform effort; and
            ``(11)(A) has been found, through scientifically 
        based research to significantly improve the academic 
        achievement of students participating in such program 
        as compared to students in schools who have not 
        participated in such program; or
            ``(B) has been found to have strong evidence that 
        such program will significantly improve the academic 
        achievement of participating children.
    ``(b) Special Rule.--A school that receives funds to 
develop a comprehensive school reform program shall not be 
limited to using nationally available approaches, but may 
develop the school's own comprehensive school reform program 
for schoolwide change as described in subsection (a).

``SEC. 1607. EVALUATION AND REPORTS.

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

``SEC. 1608. QUALITY INITIATIVES.

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

                 ``PART G--ADVANCED PLACEMENT PROGRAMS

``SEC. 1701. SHORT TITLE.

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

``SEC. 1702. PURPOSES.

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

``SEC. 1703. FUNDING DISTRIBUTION RULE.

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

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

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

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

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts made available 
        under section 1703 for a fiscal year, the Secretary 
        shall award grants, on a competitive basis, to eligible 
        entities to enable those entities to carry out the 
        authorized activities described in subsection (d).
            ``(2) Duration and payments.--
                    ``(A) Duration.--The Secretary shall award 
                a grant under this section for a period of not 
                more than 3 years.
                    ``(B) Payments.--The Secretary shall make 
                grant payments under this section on an annual 
                basis.
            ``(3) Definition of eligible entity.--In this 
        section, the term `eligible entity' means a State 
        educational agency, local educational agency, or 
        national nonprofit educational entity with expertise in 
        advanced placement services.
    ``(b) Application.--Each eligible entity desiring a grant 
under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an eligible entity that 
submits an application under subsection (b) that--
            ``(1) demonstrates a pervasive need for access to 
        advanced placement incentive programs;
            ``(2) provides for the involvement of business and 
        community organizations in the activities to be 
        assisted;
            ``(3) assures the availability of matching funds 
        from State, local, or other sources to pay for the cost 
        of activities to be assisted;
            ``(4) demonstrates a focus on developing or 
        expanding advanced placement programs and participation 
        in the core academic areas of English, mathematics, and 
        science;
            ``(5) demonstrates an intent to carry out 
        activities that target--
                    ``(A) local educational agencies serving 
                schools with a high concentration of low-income 
                students; or
                    ``(B) schools with a high concentration of 
                low-income students; and
            ``(6) in the case of a local educational agency, 
        assures that the local educational agency serves 
        schools with a high concentration of low-income 
        students; or
            ``(7) demonstrates an intent to carry out 
        activities to increase the availability of, and 
        participation in, on-line advanced placement courses.
    ``(d) Authorized Activities.--
            ``(1) In general.--Subject to paragraph (2), an 
        eligible entity shall use grant funds made available 
        under this section to expand access for low-income 
        individuals to advanced placement incentive programs 
        that involve--
                    ``(A) teacher training;
                    ``(B) pre-advanced placement course 
                development;
                    ``(C) coordination and articulation between 
                grade levels to prepare students for academic 
                achievement in advanced placement courses;
                    ``(D) books and supplies; or
                    ``(E) activities to increase the 
                availability of, and participation in, on-line 
                advanced placement courses; or
                    ``(F) any other activity directly related 
                to expanding access to and participation in 
                advanced placement incentive programs, 
                particularly for low-income individuals.
            ``(2) State educational agency.--In the case of an 
        eligible entity that is a State educational agency, the 
        entity may use grant funds made available under this 
        section to award subgrants to local educational 
        agencies to enable the local educational agencies to 
        carry out the activities under paragraph (1).
            ``(e) Contracts.--An eligible entity awarded a 
        grant to provide online advanced placement courses 
        under this part may enter into a contract with a 
        nonprofit or for profit organization to provide the 
        online advanced placement courses, including 
        contracting for necessary support services.
    ``(f) Data Collection and Reporting.--
            ``(1) Data collection.--Each eligible entity 
        awarded a grant under this section shall, with respect 
        to each advanced placement subject, annually report to 
        the Secretary on--
                    ``(A) the number of students served by the 
                eligible entity who are taking an advanced 
                placement course in that subject;
                    ``(B) the number of advanced placement 
                tests taken by students served by the eligible 
                entity in that subject;
                    ``(C) the number of students served by the 
                eligible entity scoring at different levels on 
                advanced placement tests in that subject; and
                    ``(D) demographic information regarding 
                individuals served by such agency who taking 
                advanced placement courses and tests in that 
                subject disaggregated by race, ethnicity, sex, 
                English proficiency status, and socioeconomic 
                status.
            ``(2) Report.--The Secretary shall annually compile 
        the information received from each eligible entity 
        under paragraph (1) and report to the appropriate 
        Committees of Congress regarding the information.

``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.

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

``SEC. 1707. DEFINITIONS.

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

                  ``PART H--SCHOOL DROPOUT PREVENTION

``SEC. 1801. SHORT TITLE.

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

``SEC. 1802. PURPOSE.

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

``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.

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

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary is authorized--
            ``(1) to collect systematic data on the 
        effectiveness of the programs assisted under this part 
        in reducing school dropout rates and increasing school 
        reentry and secondary school graduation rates;
            ``(2) to establish a national clearinghouse of 
        information on effective school dropout prevention and 
        reentry programs that shall disseminate to State 
        educational agencies, local educational agencies, and 
        schools--
                    ``(A) the results of research on school 
                dropout prevention and reentry; and
                    ``(B) information on effective programs, 
                best practices, and Federal resources to--
                            ``(i) reduce annual school dropout 
                        rates;
                            ``(ii) increase school reentry; and
                            ``(iii) increase secondary school 
                        graduation rates;
            ``(3) to provide technical assistance to State 
        educational agencies, local educational agencies, and 
        schools in designing and implementing programs and 
        securing resources to implement effective school 
        dropout prevention and reentry programs;
            ``(4) to establish and consult with an interagency 
        working group that shall--
                    ``(A) address inter- and intra-agency 
                program coordination issues at the Federal 
                level with respect to school dropout prevention 
                and reentry, and assess the targeting of 
                existing Federal services to students who are 
                most at risk of dropping out of school, and the 
                cost-effectiveness of various programs and 
                approaches used to address school dropout 
                prevention and reentry;
                    ``(B) describe the ways in which State 
                educational agencies and local educational 
                agencies can implement effective school dropout 
                prevention and reentry programs using funds 
                from a variety of Federal programs, including 
                the programs under this part; and
                    ``(C) examine Federal programs that may 
                have a positive impact on secondary school 
                graduation or school reentry;
            ``(5) to carry out a national recognition program 
        in accordance with subsection (b) that recognizes 
        schools that have made extraordinary progress in 
        lowering school dropout rates; and
            ``(6) to use funds made available for this subpart 
        to carry out the evaluation required under section 
        1830(c).
    ``(b) Recognition Program.--
            ``(1) Establishment.--The Secretary shall--
                    ``(A) establish a national recognition 
                program; and
                    ``(B) develop uniform national guidelines 
                for the recognition program that shall be used 
                to recognize eligible schools from nominations 
                submitted by State educational agencies.
            ``(2) Recognition.--The Secretary shall recognize, 
        under the recognition program established under 
        paragraph (1), eligible schools.
            ``(3) Support.--The Secretary may make monetary 
        awards to an eligible school recognized under this 
        subsection in amounts determined appropriate by the 
        Secretary that shall be used for dissemination 
        activities within the eligible school district or 
        nationally.
            ``(4) Definition of eligible school.--In this 
        subsection, the term `eligible school' means a public 
        middle school or secondary school, including a charter 
        school, that has implemented comprehensive reforms that 
        have been effective in lowering school dropout rates 
        for all students--
                    ``(A) in that secondary school or charter 
                school; or
                    ``(B) in the case of a middle school, in 
                the secondary school that the middle school 
                feeds students into.
    ``(c) Capacity Building.--
            ``(1) In general.--The Secretary, through a 
        contract with 1 or more non-Federal entities, may 
        conduct a capacity building and design initiative in 
        order to increase the types of proven strategies for 
        school dropout prevention and reentry that address the 
        needs of an entire school population rather than a 
        subset of students.
            ``(2) Number and duration.--
                    ``(A) Number.--The Secretary may award not 
                more than 5 contracts under this subsection.
                    ``(B) Duration.--The Secretary may award a 
                contract under this subsection for a period of 
                not more than 5 years.
    ``(d) Support for Existing Reform Networks.--
            ``(1) In general.--The Secretary may provide 
        appropriate support to eligible entities to enable the 
        eligible entities to provide training, materials, 
        development, and staff assistance to schools assisted 
        under this part.
            ``(2) Definition of eligible entity.--In this 
        subsection, the term `eligible entity' means an entity 
        that, prior to the date of enactment of the Dropout 
        Prevention Act--
                    ``(A) provided training, technical 
                assistance, and materials related to school 
                dropout prevention or reentry to 100 or more 
                elementary schools or secondary schools; and
                    ``(B) developed and published a specific 
                educational program or design related to school 
                dropout prevention or reentry for use by the 
                schools.

           ``Subpart 2--School Dropout Prevention Initiative

``SEC. 1821. DEFINITIONS.

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

``SEC. 1822. PROGRAM AUTHORIZED.

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

``SEC. 1823. APPLICATIONS.

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

``SEC. 1824. STATE RESERVATION.

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

``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.

    ``Each local educational agency receiving a grant or 
subgrant under this subpart and each State educational agency 
receiving a grant under this subpart shall implement 
scientifically based, sustainable, and widely replicated 
strategies for school dropout prevention and reentry. The 
strategies may include--
            ``(1) specific strategies for targeted purposes, 
        such as--
                    ``(A) effective early intervention programs 
                designed to identify at-risk students;
                    ``(B) effective programs serving at-risk 
                students, including racial and ethnic 
                minorities and pregnant and parenting 
                teenagers, designed to prevent such students 
                from dropping out of school; and
                    ``(C) effective programs to identify and 
                encourage youth who have already dropped out of 
                school to reenter school and complete their 
                secondary education; and
            ``(2) approaches such as breaking larger schools 
        down into smaller learning communities and other 
        comprehensive reform approaches, creating alternative 
        school programs, and developing clear linkages to 
        career skills and employment.

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

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

``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.

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

``SEC. 1828. TECHNICAL ASSISTANCE.

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

``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.

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

``SEC. 1830. REPORTING AND ACCOUNTABILITY.

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

                      ``PART I--GENERAL PROVISIONS

``SEC. 1901. FEDERAL REGULATIONS.

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

``SEC. 1902. AGREEMENTS AND RECORDS.

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

``SEC. 1903. STATE ADMINISTRATION.

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

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

    ``(a) Audits.--The Comptroller General of the United States 
shall conduct audits of not less than 6 local educational 
agencies that receive funds under part A in each fiscal year to 
determine more clearly and specifically how local educational 
agencies are expending such funds. Such audits--
            ``(1) shall be conducted in 6 local educational 
        agencies that represent the size, ethnic, economic, and 
        geographic diversity of local educational agencies; and
            ``(2) shall examine the extent to which funds have 
        been expended for academic instruction in the core 
        curriculum and activities unrelated to academic 
        instruction in the core curriculum, such as the payment 
        of janitorial, utility, and other maintenance services, 
        the purchase and lease of vehicles, and the payment for 
        travel and attendance costs at conferences.
    ``(b) Report.--Not later than 3 months after the completion 
of the audits under subsection (a) each year, the Comptroller 
General of the United States shall submit a report on each 
audit to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor and Pensions of the Senate.

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

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

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

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

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

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

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

    ``The Secretary shall issue regulations for sections 1111 
and 1116 not later than 6 months after the date of enactment of 
the No Child Left Behind Act of 2001.''.

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

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

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

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

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

``SEC. 2101. PURPOSE.

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

``SEC. 2102. DEFINITIONS.

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

``SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.

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

                     ``Subpart 1--Grants to States

``SEC. 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to 
States with applications approved under section 2112 to pay for 
the Federal share of the cost of carrying out the activities 
specified in section 2113. Each grant shall consist of the 
allotment determined for a State under subsection (b).
    ``(b) Determination of Allotments.--
            ``(1) Reservation of funds.--
                    ``(A) In general.--From the total amount 
                appropriated under section 2103(a) for a fiscal 
                year, the Secretary shall reserve--
                            ``(i) \1/2\ of 1 percent for 
                        allotments for the United States Virgin 
                        Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana 
                        Islands, to be distributed among those 
                        outlying areas on the basis of their 
                        relative need, as determined by the 
                        Secretary, in accordance with the 
                        purpose of this part; and
                            ``(ii) \1/2\ of 1 percent for the 
                        Secretary of the Interior for programs 
                        under this part in schools operated or 
                        funded by the Bureau of Indian Affairs.
            ``(2) State allotments.--
                    ``(A) Hold harmless.--
                            ``(i) In general.--Subject to 
                        subparagraph (B), from the funds 
                        appropriated under section 2103(a) for 
                        any fiscal year and not reserved under 
                        paragraph (1), the Secretary shall 
                        allot to each of the 50 States, the 
                        District of Columbia, and the 
                        Commonwealth of Puerto Rico an amount 
                        equal to the total amount that such 
                        State received for fiscal year 2001 
                        under--
                                    ``(I) section 2202(b) of 
                                this Act (as in effect on the 
                                day before the date of 
                                enactment of the No Child Left 
                                Behind Act of 2001); and
                                    ``(II) section 306 of the 
                                Department of Education 
                                Appropriations Act, 2001 (as 
                                enacted into law by section 
                                1(a)(1) of Public Law 106-554).
                            ``(ii) Ratable reduction.--If the 
                        funds described in clause (i) are 
                        insufficient to pay the full amounts 
                        that all States are eligible to receive 
                        under clause (i) for any fiscal year, 
                        the Secretary shall ratably reduce 
                        those amounts for the fiscal year.
                    ``(B) Allotment of additional funds.--
                            ``(i) In general.--Subject to 
                        clause (ii), for any fiscal year for 
                        which the funds appropriated under 
                        section 2103(a) and not reserved under 
                        paragraph (1) exceed the total amount 
                        required to make allotments under 
                        subparagraph (A), the Secretary shall 
                        allot to each of the States described 
                        in subparagraph (A) the sum of--
                                    ``(I) an amount that bears 
                                the same relationship to 35 
                                percent of the excess amount as 
                                the number of individuals age 5 
                                through 17 in the State, as 
                                determined by the Secretary on 
                                the basis of the most recent 
                                satisfactory data, bears to the 
                                number of those individuals in 
                                all such States, as so 
                                determined; and
                                    ``(II) an amount that bears 
                                the same relationship to 65 
                                percent of the excess amount as 
                                the number of individuals age 5 
                                through 17 from families with 
                                incomes below the poverty line, 
                                in the State, as determined by 
                                the Secretary on the basis of 
                                the most recent satisfactory 
                                data, bears to the number of 
                                those individuals in all such 
                                States, as so determined.
                            ``(ii) Exception.--No State 
                        receiving an allotment under clause (i) 
                        may receive less than \1/2\ of 1 
                        percent of the total excess amount 
                        allotted under such clause for a fiscal 
                        year.
            ``(3) Reallotment.--If any State does not apply for 
        an allotment under this subsection for any fiscal year, 
        the Secretary shall reallot the amount of the allotment 
        to the remaining States in accordance with this 
        subsection.

``SEC. 2112. STATE APPLICATIONS.

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

``SEC. 2113. STATE USE OF FUNDS.

    ``(a) In General.--A State that receives a grant under 
section 2111 shall--
            ``(1) reserve 95 percent of the funds made 
        available through the grant to make subgrants to local 
        educational agencies as described in subpart 2;
            ``(2) reserve 2.5 percent (or, for a fiscal year 
        described in subsection (b), the percentage determined 
        under subsection (b)) of the funds to make subgrants to 
        local partnerships as described in subpart 3; and
            ``(3) use the remainder of the funds for State 
        activities described in subsection (c).
    ``(b) Special Rule.--For any fiscal year for which the 
total amount that would be reserved by all States under 
subsection (a)(2), if the States applied a 2.5 percentage rate, 
exceeds $125,000,000, the Secretary shall determine an 
alternative percentage that the States shall apply for that 
fiscal year under subsection (a)(2) so that the total amount 
reserved by all States under subsection (a)(2) equals 
$125,000,000.
    ``(c) State Activities.--The State educational agency for a 
State that receives a grant under section 2111 shall use the 
funds described in subsection (a)(3) to carry out one or more 
of the following activities, which may be carried out through a 
grant or contract with a for-profit or nonprofit entity:
            ``(1) Reforming teacher and principal certification 
        (including recertification) or licensing requirements 
        to ensure that--
                    ``(A)(i) teachers have the necessary 
                subject matter knowledge and teaching skills in 
                the academic subjects that the teachers teach; 
                and
                    ``(ii) principals have the instructional 
                leadership skills to help teachers teach and 
                students learn;
                    ``(B) teacher certification (including 
                recertification) or licensing requirements are 
                aligned with challenging State academic content 
                standards; and
                    ``(C) teachers have the subject matter 
                knowledge and teaching skills, including 
                technology literacy, and principals have the 
                instructional leadership skills, necessary to 
                help students meet challenging State student 
                academic achievement standards.
            ``(2) Carrying out programs that provide support to 
        teachers or principals, including support for teachers 
        and principals new to their profession, such as 
        programs that--
                    ``(A) provide teacher mentoring, team 
                teaching, reduced class schedules, and 
                intensive professional development; and
                    ``(B) use standards or assessments for 
                guiding beginning teachers that are consistent 
                with challenging State student academic 
                achievement standards and with the requirements 
                for professional development activities 
                described in section 9101.
            ``(3) Carrying out programs that establish, expand, 
        or improve alternative routes for State certification 
        of teachers and principals, especially in the areas of 
        mathematics and science, for highly qualified 
        individuals with a baccalaureate or master's degree, 
        including mid-career professionals from other 
        occupations, paraprofessionals, former military 
        personnel, and recent college or university graduates 
        with records of academic distinction who demonstrate 
        the potential to become highly effective teachers or 
        principals.
            ``(4) Developing and implementing mechanisms to 
        assist local educational agencies and schools in 
        effectively recruiting and retaining highly qualified 
        teachers, including specialists in core academic 
        subjects, principals, and pupil services personnel, 
        except that funds made available under this paragraph 
        may be used for pupil services personnel only--
                    ``(A) if the State educational agency is 
                making progress toward meeting the annual 
                measurable objectives described in section 
                1119(a)(2); and
                    ``(B) in a manner consistent with 
                mechanisms to assist local educational agencies 
                and schools in effectively recruiting and 
                retaining highly qualified teachers and 
                principals.
            ``(5) Reforming tenure systems, implementing 
        teacher testing for subject matter knowledge, and 
        implementing teacher testing for State certification or 
        licensing, consistent with title II of the Higher 
        Education Act of 1965.
            ``(6) Providing professional development for 
        teachers and principals and, in cases in which a State 
        educational agency determines support to be 
        appropriate, supporting the participation of pupil 
        services personnel in the same type of professional 
        development activities as are made available to 
        teachers and principals.
            ``(7) Developing systems to measure the 
        effectiveness of specific professional development 
        programs and strategies to document gains in student 
        academic achievement or increases in teacher mastery of 
        the academic subjects the teachers teach.
            ``(8) Fulfilling the State educational agency's 
        responsibilities concerning proper and efficient 
        administration of the programs carried out under this 
        part, including provision of technical assistance to 
        local educational agencies.
            ``(9) Funding projects to promote reciprocity of 
        teacher and principal certification or licensing 
        between or among States, except that no reciprocity 
        agreement developed under this paragraph or developed 
        using funds provided under this part may lead to the 
        weakening of any State teaching certification or 
        licensing requirement.
            ``(10) Developing or assisting local educational 
        agencies in the development and use of proven, 
        innovative strategies to deliver intensive professional 
        development programs that are both cost-effective and 
        easily accessible, such as strategies that involve 
        delivery through the use of technology, peer networks, 
        and distance learning.
            ``(11) Encouraging and supporting the training of 
        teachers and administrators to effectively integrate 
        technology into curricula and instruction, including 
        training to improve the ability to collect, manage, and 
        analyze data to improve teaching, decisionmaking, 
        school improvement efforts, and accountability.
            ``(12) Developing, or assisting local educational 
        agencies in developing, merit-based performance 
        systems, and strategies that provide differential and 
        bonus pay for teachers in high-need academic subjects 
        such as reading, mathematics, and science and teachers 
        in high-poverty schools and districts.
            ``(13) Providing assistance to local educational 
        agencies for the development and implementation of 
        professional development programs for principals that 
        enable the principals to be effective school leaders 
        and prepare all students to meet challenging State 
        academic content and student academic achievement 
        standards, and the development and support of school 
        leadership academies to help exceptionally talented 
        aspiring or current principals and superintendents 
        become outstanding managers and educational leaders.
            ``(14) Developing, or assisting local educational 
        agencies in developing, teacher advancement initiatives 
        that promote professional growth and emphasize multiple 
        career paths (such as paths to becoming a career 
        teacher, mentor teacher, or exemplary teacher) and pay 
        differentiation.
            ``(15) Providing assistance to teachers to enable 
        them to meet certification, licensing, or other 
        requirements needed to become highly qualified by the 
        end of the fourth year for which the State receives 
        funds under this part (as amended by the No Child Left 
        Behind Act of 2001).
            ``(16) Supporting activities that ensure that 
        teachers are able to use challenging State academic 
        content standards and student academic achievement 
        standards, and State assessments, to improve 
        instructional practices and improve student academic 
        achievement.
            ``(17) Funding projects and carrying out programs 
        to encourage men to become elementary school teachers.
            ``(18) Establishing and operating a center that--
                    ``(A) serves as a statewide clearinghouse 
                for the recruitment and placement of 
                kindergarten, elementary school, and secondary 
                school teachers; and
                    ``(B) establishes and carries out programs 
                to improve teacher recruitment and retention 
                within the State.
    ``(d) Administrative Costs.--A State educational agency or 
State agency for higher education receiving a grant under this 
part may use not more than 1 percent of the grant funds for 
planning and administration related to carrying out activities 
under subsection (c) and subpart 3.
    ``(e) Coordination.--A State that receives a grant to carry 
out this subpart and a grant under section 202 of the Higher 
Education Act of 1965 shall coordinate the activities carried 
out under this subpart and the activities carried out under 
that section.
    ``(f) Supplement, Not Supplant.--Funds received under this 
subpart shall be used to supplement, and not supplant, non-
Federal funds that would otherwise be used for activities 
authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

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

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

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

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

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) In General.--A local educational agency that receives 
a subgrant under section 2121 shall use the funds made 
available through the subgrant to carry out one or more of the 
following activities, including carrying out the activities 
through a grant or contract with a for-profit or nonprofit 
entity:
            ``(1) Developing and implementing mechanisms to 
        assist schools in effectively recruiting and retaining 
        highly qualified teachers, including specialists in 
        core academic subjects, principals, and pupil services 
        personnel, except that funds made available under this 
        paragraph may be used for pupil services personnel 
        only--
                    ``(A) if the local educational agency is 
                making progress toward meeting the annual 
                measurable objectives described in section 
                1119(a)(2); and
                    ``(B) in a manner consistent with 
                mechanisms to assist schools in effectively 
                recruiting and retaining highly qualified 
                teachers and principals.
            ``(2) Developing and implementing initiatives to 
        assist in recruiting highly qualified teachers 
        (particularly initiatives that have proven effective in 
        retaining highly qualified teachers), and hiring highly 
        qualified teachers, who will be assigned teaching 
        positions within their fields, including--
                    ``(A) providing scholarships, signing 
                bonuses, or other financial incentives, such as 
                differential pay, for teachers to teach--
                            ``(i) in academic subjects in which 
                        there exists a shortage of highly 
                        qualified teachers within a school or 
                        within the local educational agency; 
                        and
                            ``(ii) in schools in which there 
                        exists a shortage of highly qualified 
                        teachers;
                    ``(B) recruiting and hiring highly 
                qualified teachers to reduce class size, 
                particularly in the early grades; and
                    ``(C) establishing programs that--
                            ``(i) train and hire regular and 
                        special education teachers (which may 
                        include hiring special education 
                        teachers to team-teach in classrooms 
                        that contain both children with 
                        disabilities and nondisabled children);
                            ``(ii) train and hire highly 
                        qualified teachers of special needs 
                        children, as well as teaching 
                        specialists in core academic subjects 
                        who will provide increased 
                        individualized instruction to students;
                            ``(iii) recruit qualified 
                        professionals from other fields, 
                        including highly qualified 
                        paraprofessionals, and provide such 
                        professionals with alternative routes 
                        to teacher certification, including 
                        developing and implementing hiring 
                        policies that ensure comprehensive 
                        recruitment efforts as a way to expand 
                        the applicant pool, such as through 
                        identifying teachers certified through 
                        alternative routes, and using a system 
                        of intensive screening designed to hire 
                        the most qualified applicants; and
                            ``(iv) provide increased 
                        opportunities for minorities, 
                        individuals with disabilities, and 
                        other individuals underrepresented in 
                        the teaching profession.
            ``(3) Providing professional development 
        activities--
                    ``(A) that improve the knowledge of 
                teachers and principals and, in appropriate 
                cases, paraprofessionals, concerning--
                            ``(i) one or more of the core 
                        academic subjects that the teachers 
                        teach; and
                            ``(ii) effective instructional 
                        strategies, methods, and skills, and 
                        use of challenging State academic 
                        content standards and student academic 
                        achievement standards, and State 
                        assessments, to improve teaching 
                        practices and student academic 
                        achievement; and
                    ``(B) that improve the knowledge of 
                teachers and principals and, in appropriate 
                cases, paraprofessionals, concerning effective 
                instructional practices and that--
                            ``(i) involve collaborative groups 
                        of teachers and administrators;
                            ``(ii) provide training in how to 
                        teach and address the needs of students 
                        with different learning styles, 
                        particularly students with 
                        disabilities, students with special 
                        learning needs (including students who 
                        are gifted and talented), and students 
                        with limited English proficiency;
                            ``(iii) provide training in methods 
                        of--
                                    ``(I) improving student 
                                behavior in the classroom; and
                                    ``(II) identifying early 
                                and appropriate interventions 
                                to help students described in 
                                clause (ii) learn;
                            ``(iv) provide training to enable 
                        teachers and principals to involve 
                        parents in their child's education, 
                        especially parents of limited English 
                        proficient and immigrant children; and
                            ``(v) provide training on how to 
                        understand and use data and assessments 
                        to improve classroom practice and 
                        student learning.
            ``(4) Developing and implementing initiatives to 
        promote retention of highly qualified teachers and 
        principals, particularly within elementary schools and 
        secondary schools with a high percentage of low-
        achieving students, including programs that provide--
                    ``(A) teacher mentoring from exemplary 
                teachers, principals, or superintendents;
                    ``(B) induction and support for teachers 
                and principals during their first 3 years of 
                employment as teachers or principals, 
                respectively;
                    ``(C) incentives, including financial 
                incentives, to retain teachers who have a 
                record of success in helping low-achieving 
                students improve their academic achievement; or
                    ``(D) incentives, including financial 
                incentives, to principals who have a record of 
                improving the academic achievement of all 
                students, but particularly students from 
                economically disadvantaged families, students 
                from racial and ethnic minority groups, and 
                students with disabilities.
            ``(5) Carrying out programs and activities that are 
        designed to improve the quality of the teacher force, 
        such as--
                    ``(A) innovative professional development 
                programs (which may be provided through 
                partnerships including institutions of higher 
                education), including programs that train 
                teachers and principals to integrate technology 
                into curricula and instruction to improve 
                teaching, learning, and technology literacy, 
                are consistent with the requirements of section 
                9101, and are coordinated with activities 
                carried out under part D;
                    ``(B) development and use of proven, cost-
                effective strategies for the implementation of 
                professional development activities, such as 
                through the use of technology and distance 
                learning;
                    ``(C) tenure reform;
                    ``(D) merit pay programs; and
                    ``(E) testing of elementary school and 
                secondary school teachers in the academic 
                subjects that the teachers teach.
            ``(6) Carrying out professional development 
        activities designed to improve the quality of 
        principals and superintendents, including the 
        development and support of academies to help talented 
        aspiring or current principals and superintendents 
        become outstanding managers and educational leaders.
            ``(7) Hiring highly qualified teachers, including 
        teachers who become highly qualified through State and 
        local alternative routes to certification, and special 
        education teachers, in order to reduce class size, 
        particularly in the early grades.
            ``(8) Carrying out teacher advancement initiatives 
        that promote professional growth and emphasize multiple 
        career paths (such as paths to becoming a career 
        teacher, mentor teacher, or exemplary teacher) and pay 
        differentiation.
            ``(10) Carrying out programs and activities related 
        to exemplary teachers.
    ``(b) Supplement, Not Supplant.--Funds received under this 
subpart shall be used to supplement, and not supplant, non-
Federal funds that would otherwise be used for activities 
authorized under this subpart.

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. DEFINITIONS.

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

``SEC. 2132. SUBGRANTS.

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

``SEC. 2133. APPLICATIONS.

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

``SEC. 2134. USE OF FUNDS.

    ``(a) In General.--An eligible partnership that receives a 
subgrant under section 2132 shall use the subgrant funds for--
            ``(1) professional development activities in core 
        academic subjects to ensure that--
                    ``(A) teachers and highly qualified 
                paraprofessionals, and, if appropriate, 
                principals have subject matter knowledge in the 
                academic subjects that the teachers teach, 
                including the use of computer related 
                technology to enhance student learning; and
                    ``(B) principals have the instructional 
                leadership skills that will help such 
                principals work most effectively with teachers 
                to help students master core academic subjects; 
                and
            ``(2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, 
        highly qualified paraprofessionals, or principals of 
        schools served by such agencies, for sustained, high-
        quality professional development activities that--
                    ``(A) ensure that the individuals are able 
                to use challenging State academic content 
                standards and student academic achievement 
                standards, and State assessments, to improve 
                instructional practices and improve student 
                academic achievement;
                    ``(B) may include intensive programs 
                designed to prepare such individuals who will 
                return to a school to provide instruction 
                related to the professional development 
                described in subparagraph (A) to other such 
                individuals within such school; and
                    ``(C) may include activities of 
                partnerships between one or more local 
                educational agencies, one or more schools 
                served by such local educational agencies, and 
                one or more institutions of higher education 
                for the purpose of improving teaching and 
                learning at low-performing schools.
    ``(b) Coordination.--An eligible partnership that receives 
a subgrant to carry out this subpart and a grant under section 
203 of the Higher Education Act of 1965 shall coordinate the 
activities carried out under this subpart and the activities 
carried out under that section 203.

                      ``Subpart 4--Accountability

``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

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

                    ``Subpart 5--National Activities

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

    ``(a) National Teacher Recruitment Campaign.--The Secretary 
is authorized to establish and carry out a national teacher 
recruitment campaign, which may include activities carried out 
through the National Teacher Recruitment Clearinghouse, to 
assist high-need local educational agencies in recruiting 
teachers (particularly those activities that are effective in 
retaining new teachers) and training teachers and to conduct a 
national public service campaign concerning the resources for, 
and the routes to, entering the field of teaching. In carrying 
out the campaign, the Secretary may promote and link the 
activities of the campaign to the information and referral 
activities of the National Teacher Recruitment Clearinghouse. 
The Secretary shall coordinate activities under this subsection 
with State and regional recruitment activities.
    ``(b) School Leadership.--
            ``(1) In general.--The Secretary is authorized to 
        establish and carry out a national principal 
        recruitment program to assist high-need local 
        educational agencies in recruiting and training 
        principals (including assistant principals) through 
        such activities as--
                    ``(A) providing financial incentives to 
                aspiring new principals;
                    ``(B) providing stipends to principals who 
                mentor new principals;
                    ``(C) carrying out professional development 
                programs in instructional leadership and 
                management; and
                    ``(D) providing incentives that are 
                appropriate for teachers or individuals from 
                other fields who want to become principals and 
                that are effective in retaining new principals.
            ``(2) Grants.--If the Secretary uses sums made 
        available under section 2103(b) to carry out paragraph 
        (1), the Secretary shall carry out such paragraph by 
        making grants, on a competitive basis, to--
                    ``(A) high-need local educational agencies;
                    ``(B) consortia of high-need local 
                educational agencies; and
                    ``(C) partnerships of high-need local 
                educational agencies, nonprofit organizations, 
                and institutions of higher education.
    ``(c) Advanced Certification or Advanced Credentialing.--
            ``(1) In general.--The Secretary is authorized to 
        support activities to encourage and support teachers 
        seeking advanced certification or advanced 
        credentialing through high quality professional teacher 
        enhancement programs designed to improve teaching and 
        learning.
            ``(2) Implementation.--In carrying out paragraph 
        (1), the Secretary shall make grants to eligible 
        entities to--
                    ``(A) develop teacher standards that 
                include measures tied to increased student 
                academic achievement; and
                    ``(B) promote outreach, teacher 
                recruitment, teacher subsidy, or teacher 
                support programs, related to teacher 
                certification or credentialing by the National 
                Board for Professional Teaching Standards, the 
                National Council on Teacher Quality, or other 
                nationally recognized certification or 
                credentialing organizations.
            ``(3) Eligible entities.--In this subsection, the 
        term `eligible entity' includes--
                    ``(A) a State educational agency;
                    ``(B) a local educational agency;
                    ``(C) the National Board for Professional 
                Teaching Standards, in partnership with a high-
                need local educational agency or a State 
                educational agency;
                    ``(D) the National Council on Teacher 
                Quality, in partnership with a high-need local 
                educational agency or a State educational 
                agency; or
                    ``(E) another recognized entity, including 
                another recognized certification or 
                credentialing organization, in partnership with 
                a high-need local educational agency or a State 
                educational agency.
    ``(d) Special Education Teacher Training.--The Secretary is 
authorized to award a grant to the University of Northern 
Colorado to enable such university to provide, to other 
institutions of higher education, assistance in training 
special education teachers.
    ``(e) Early Childhood Educator Professional Development.--
            ``(1) Purpose.--The purpose of this subsection is 
        to enhance the school readiness of young children, 
        particularly disadvantaged young children, and to 
        prevent young children from encountering difficulties 
        once the children enter school, by improving the 
        knowledge and skills of early childhood educators who 
        work in communities that have high concentrations of 
        children living in poverty.
            ``(2) Program authorized.--
                    ``(A) Grants to partnerships.--The 
                Secretary is authorized to carry out the 
                purpose of this subsection by awarding grants, 
                on a competitive basis, to partnerships 
                consisting of--
                            ``(i)(I) one or more institutions 
                        of higher education that provide 
                        professional development for early 
                        childhood educators who work with 
                        children from low-income families in 
                        high-need communities; or
                            ``(II) another public or private 
                        entity that provides such professional 
                        development;
                            ``(ii) one or more public agencies 
                        (including local educational agencies, 
                        State educational agencies, State human 
                        services agencies, and State and local 
                        agencies administering programs under 
                        the Child Care and Development Block 
                        Grant Act of 1990 (42 U.S.C. 9858 et 
                        seq.), Head Start agencies, or private 
                        organizations; and
                            ``(iii) to the extent feasible, an 
                        entity with demonstrated experience in 
                        providing training to educators in 
                        early childhood education programs 
                        concerning identifying and preventing 
                        behavior problems or working with 
                        children identified as or suspected to 
                        be victims of abuse.
                    ``(B) Duration and number of grants.--
                            ``(i) Duration.--The Secretary 
                        shall award grants under this 
                        subsection for periods of not more than 
                        4 years.
                            ``(ii) Number.--No partnership may 
                        receive more than one grant under this 
                        subsection.
            ``(3) Applications.--
                    ``(A) Applications required.--Any 
                partnership that desires to receive a grant 
                under this subsection shall submit an 
                application to the Secretary at such time, in 
                such manner, and containing such information as 
                the Secretary may require.
                    ``(B) Contents.--Each such application 
                shall include--
                            ``(i) a description of the high-
                        need community to be served by the 
                        project proposed to be carried out 
                        through the grant, including such 
                        demographic and socioeconomic 
                        information as the Secretary may 
                        request;
                            ``(ii) information on the quality 
                        of the early childhood educator 
                        professional development program 
                        currently conducted (as of the date of 
                        the submission of the application) by 
                        the institution of higher education or 
                        another provider in the partnership;
                            ``(iii) the results of a needs 
                        assessment that the entities in the 
                        partnership have undertaken to 
                        determine the most critical 
                        professional development needs of the 
                        early childhood educators to be served 
                        by the partnership and in the broader 
                        community, and a description of how the 
                        proposed project will address those 
                        needs;
                            ``(iv) a description of how the 
                        proposed project will be carried out, 
                        including a description of--
                                    ``(I) how individuals will 
                                be selected to participate;
                                    ``(II) the types of 
                                professional development 
                                activities, based on 
                                scientifically based research, 
                                that will be carried out;
                                    ``(III) how research on 
                                effective professional 
                                development and on adult 
                                learning will be used to design 
                                and deliver project activities;
                                    ``(IV) how the project will 
                                be coordinated with and build 
                                on, and will not supplant or 
                                duplicate, early childhood 
                                education professional 
                                development activities in the 
                                high-need community;
                                    ``(V) how the project will 
                                train early childhood educators 
                                to provide developmentally 
                                appropriate school-readiness 
                                services that are based on the 
                                best available research on 
                                early childhood pedagogy and 
                                child development and learning 
                                domains;
                                    ``(VI) how the project will 
                                train early childhood educators 
                                to meet the diverse educational 
                                needs of children in the 
                                community, including children 
                                who have limited English 
                                proficiency, children with 
                                disabilities, or children with 
                                other special needs; and
                                    ``(VII) how the project 
                                will train early childhood 
                                educators in identifying and 
                                preventing behavioral problems 
                                in children or working with 
                                children identified as or 
                                suspected to be victims of 
                                abuse;
                            ``(v) a description of--
                                    ``(I) the specific 
                                objectives that the partnership 
                                will seek to attain through the 
                                project, and the methods that 
                                the partnership will use to 
                                measure progress toward 
                                attainment of those objectives; 
                                and
                                    ``(II) how the objectives 
                                and the measurement methods 
                                align with the achievement 
                                indicators established by the 
                                Secretary under paragraph 
                                (6)(A);
                            ``(vi) a description of the 
                        partnership's plan for continuing the 
                        activities carried out under the 
                        project after Federal funding ceases;
                            ``(vii) an assurance that, where 
                        applicable, the project will provide 
                        appropriate professional development to 
                        volunteers working directly with young 
                        children, as well as to paid staff; and
                            ``(viii) an assurance that, in 
                        developing the application and in 
                        carrying out the project, the 
                        partnership has consulted with, and 
                        will consult with, relevant agencies, 
                        early childhood educator organizations, 
                        and early childhood providers that are 
                        not members of the partnership.
            ``(4) Selection of grant recipients.--
                    ``(A) Criteria.--The Secretary shall select 
                partnerships to receive grants under this 
                subsection on the basis of the degree to which 
                the communities proposed to be served require 
                assistance and the quality of the applications 
                submitted under paragraph (3).
                    ``(B) Geographic distribution.--In 
                selecting partnerships to receive grants under 
                this subsection, the Secretary shall seek to 
                ensure that communities in different regions of 
                the Nation, as well as both urban and rural 
                communities, are served.
            ``(5) Uses of funds.--
                    ``(A) In general.--Each partnership 
                receiving a grant under this subsection shall 
                use the grant funds to carry out activities 
                that will improve the knowledge and skills of 
                early childhood educators who are working in 
                early childhood programs that are located in 
                high-need communities and serve concentrations 
                of children from low-income families.
                    ``(B) Allowable activities.--Such 
                activities may include--
                            ``(i) professional development for 
                        early childhood educators, particularly 
                        to familiarize those educators with the 
                        application of recent research on 
                        child, language, and literacy 
                        development and on early childhood 
                        pedagogy;
                            ``(ii) professional development for 
                        early childhood educators in working 
                        with parents, so that the educators and 
                        parents can work together to provide 
                        and support developmentally appropriate 
                        school-readiness services that are 
                        based on scientifically based research 
                        on early childhood pedagogy and child 
                        development and learning domains;
                            ``(iii) professional development 
                        for early childhood educators to work 
                        with children who have limited English 
                        proficiency, children with 
                        disabilities, and children with other 
                        special needs;
                            ``(iv) professional development to 
                        train early childhood educators in 
                        identifying and preventing behavioral 
                        problems in children or working with 
                        children identified as or suspected to 
                        be victims of abuse;
                            ``(v) activities that assist and 
                        support early childhood educators 
                        during their first 3 years in the 
                        field;
                            ``(vi) development and 
                        implementation of early childhood 
                        educator professional development 
                        programs that make use of distance 
                        learning and other technologies;
                            ``(vii) professional development 
                        activities related to the selection and 
                        use of screening and diagnostic 
                        assessments to improve teaching and 
                        learning; and
                            ``(viii) data collection, 
                        evaluation, and reporting needed to 
                        meet the requirements of paragraph (6) 
                        relating to accountability.
            ``(6) Accountability.--
                    ``(A) Achievement indicators.--On the date 
                on which the Secretary first issues a notice 
                soliciting applications for grants under this 
                subsection, the Secretary shall announce 
                achievement indicators for this subsection, 
                which shall be designed--
                            ``(i) to measure the quality and 
                        accessibility of the professional 
                        development provided;
                            ``(ii) to measure the impact of 
                        that professional development on the 
                        early childhood education provided by 
                        the individuals who receive the 
                        professional development; and
                            ``(iii) to provide such other 
                        measures of program impact as the 
                        Secretary determines to be appropriate.
                    ``(B) Annual reports; termination.--
                            ``(i) Annual reports.--Each 
                        partnership receiving a grant under 
                        this subsection shall report annually 
                        to the Secretary on the partnership's 
                        progress toward attaining the 
                        achievement indicators.
                            ``(ii) Termination.--The Secretary 
                        may terminate a grant under this 
                        subsection at any time if the Secretary 
                        determines that the partnership 
                        receiving the grant is not making 
                        satisfactory progress toward attaining 
                        the achievement indicators.
            ``(7) Cost-sharing.--
                    ``(A) In general.--Each partnership 
                carrying out a project through a grant awarded 
                under this subsection shall provide, from 
                sources other than the program carried out 
                under this subsection, which may include 
                Federal sources--
                            ``(i) at least 50 percent of the 
                        total cost of the project for the grant 
                        period; and
                            ``(ii) at least 20 percent of the 
                        project cost for each year.
                    ``(B) Acceptable contributions.--A 
                partnership may meet the requirements of 
                subparagraph (A) by providing contributions in 
                cash or in kind, fairly evaluated, including 
                plant, equipment, and services.
                    ``(C) Waivers.--The Secretary may waive or 
                modify the requirements of subparagraph (A) for 
                partnerships in cases of demonstrated financial 
                hardship.
            ``(8) Federal coordination.--The Secretary and the 
        Secretary of Health and Human Services shall coordinate 
        activities carried out through programs under this 
        subsection with activities carried out through other 
        early childhood programs administered by the Secretary 
        or the Secretary of Health and Human Services.
            ``(9) Definitions.--In this subsection:
                    ``(A) Early childhood educator.--The term 
                `early childhood educator' means a person 
                providing, or employed by a provider of, 
                nonresidential child care services (including 
                center-based, family-based, and in-home child 
                care services) that is legally operating under 
                State law, and that complies with applicable 
                State and local requirements for the provision 
                of child care services to children at any age 
                from birth through the age at which a child may 
                start kindergarten in that State.
                    ``(B) High-need community.--
                            ``(i) In general.--The term `high-
                        need community' means--
                                    ``(I) a political 
                                subdivision of a State, or a 
                                portion of a political 
                                subdivision of a State, in 
                                which at least 50 percent of 
                                the children are from low-
                                income families; or
                                    ``(II) a political 
                                subdivision of a State that is 
                                among the 10 percent of 
                                political subdivisions of the 
                                State having the greatest 
                                numbers of such children.
                            ``(ii) Determination.--In 
                        determining which communities are 
                        described in clause (i), the Secretary 
                        shall use such data as the Secretary 
                        determines are most accurate and 
                        appropriate.
                    ``(C) Low-income family.--The term `low-
                income family' means a family with an income 
                below the poverty line for the most recent 
                fiscal year for which satisfactory data are 
                available.
    ``(f) Teacher Mobility.--
            ``(1) Establishment.--The Secretary is authorized 
        to establish a panel to be known as the National Panel 
        on Teacher Mobility (referred to in this subsection as 
        the `panel').
            ``(2) Membership.--The panel shall be composed of 
        12 members appointed by the Secretary. The Secretary 
        shall appoint the members from among practitioners and 
        experts with experience relating to teacher mobility, 
        such as teachers, members of teacher certification or 
        licensing bodies, faculty of institutions of higher 
        education that prepare teachers, and State policymakers 
        with such experience.
            ``(3) Period of appointment; vacancies.--Members 
        shall be appointed for the life of the panel. Any 
        vacancy in the panel shall not affect the powers of the 
        panel, but shall be filled in the same manner as the 
        original appointment.
            ``(4) Duties.--
                    ``(A) Study.--
                            ``(i) In general.--The panel shall 
                        study strategies for increasing 
                        mobility and employment opportunities 
                        for highly qualified teachers, 
                        especially for States with teacher 
                        shortages and States with school 
                        districts or schools that are difficult 
                        to staff.
                            ``(ii) Data and analysis.--As part 
                        of the study, the panel shall evaluate 
                        the desirability and feasibility of 
                        State initiatives that support teacher 
                        mobility by collecting data and 
                        conducting effective analysis 
                        concerning--
                                    ``(I) teacher supply and 
                                demand;
                                    ``(II) the development of 
                                recruitment and hiring 
                                strategies that support 
                                teachers; and
                                    ``(III) increasing 
                                reciprocity of certification 
                                and licensing across States.
                    ``(B) Report.--Not later than 1 year after 
                the date on which all members of the panel have 
                been appointed, the panel shall submit to the 
                Secretary and to the appropriate committees of 
                Congress a report containing the results of the 
                study.
            ``(5) Powers.--
                    ``(A) Hearings.--The panel may hold such 
                hearings, sit and act at such times and places, 
                take such testimony, and receive such evidence 
                as the panel considers advisable to carry out 
                the objectives of this subsection.
                    ``(B) Information from federal agencies.--
                The panel may secure directly from any Federal 
                department or agency such information as the 
                panel considers necessary to carry out the 
                provisions of this subsection. Upon request of 
                a majority of the members of the panel, the 
                head of such department or agency shall furnish 
                such information to the panel.
                    ``(C) Postal services.--The panel may use 
                the United States mails in the same manner and 
                under the same conditions as other departments 
                and agencies of the Federal Government.
            ``(6) Personnel.--
                    ``(A) Travel expenses.--The members of the 
                panel shall not receive compensation for the 
                performance of services for the panel, but 
                shall be allowed travel expenses, including per 
                diem in lieu of subsistence, at rates 
                authorized for employees of agencies under 
                subchapter I of chapter 57 of title 5, United 
                States Code, while away from their homes or 
                regular places of business in the performance 
                of services for the panel. Notwithstanding 
                section 1342 of title 31, United States Code, 
                the Secretary may accept the voluntary and 
                uncompensated services of members of the panel.
                    ``(B) Detail of government employees.--Any 
                Federal Government employee may be detailed to 
                the panel without reimbursement, and such 
                detail shall be without interruption or loss of 
                civil service status or privilege.
            ``(7) Permanent committee.--Section 14 of the 
        Federal Advisory Committee Act (5 U.S.C. App.) shall 
        not apply to the panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE; DEFINITIONS.

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

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

    ``(a) Grants Authorized.--
            ``(1) Grants to partnerships.--For any fiscal year 
        for which the funds appropriated under section 2203 are 
        less than $100,000,000, the Secretary is authorized to 
        award grants, on a competitive basis, to eligible 
        partnerships to carry out the authorized activities 
        described in subsection (c).
            ``(2) Grants to state educational agencies.--
                    ``(A) In general.--For any fiscal year for 
                which the funds appropriated under section 2203 
                equal or exceed $100,000,000--
                            ``(i) if an eligible partnership in 
                        the State was previously awarded a 
                        grant under paragraph (1), and the 
                        grant period has not ended, the 
                        Secretary shall reserve funds in a 
                        sufficient amount to make payments to 
                        the partnership in accordance with the 
                        terms of the grant; and
                            ``(ii) the Secretary is authorized 
                        to award grants to State educational 
                        agencies to enable such agencies to 
                        award subgrants, on a competitive 
                        basis, to eligible partnerships to 
                        carry out the authorized activities 
                        described in subsection (c).
                    ``(B) Allotment.--The Secretary shall allot 
                the amount made available under this part for a 
                fiscal year and not reserved under subparagraph 
                (A)(i) among the State educational agencies in 
                proportion to the number of children, aged 5 to 
                17, who are from families with incomes below 
                the poverty line and reside in a State for the 
                most recent fiscal year for which satisfactory 
                data are available, as compared to the number 
                of such children who reside in all such States 
                for such year.
                    ``(C) Minimum allotment.--The amount of any 
                State educational agency's allotment under 
                subparagraph (B) for any fiscal year may not be 
                less than \1/2\ of 1 percent of the amount made 
                available under this part for such year.
            ``(3) Duration.--The Secretary shall award grants 
        under this part for a period of 3 years.
            ``(4) Supplement, not supplant.--Funds received 
        under this part shall be used to supplement, and not 
        supplant, funds that would otherwise be used for 
        activities authorized under this part.
    ``(b) Application Requirements.--
            ``(1) In general.--Each eligible partnership 
        desiring a grant or subgrant under this part shall 
        submit an application--
                    ``(A) in the case of grants awarded 
                pursuant to subsection (a)(1), to the 
                Secretary, at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may require; or
                    ``(B) in the case of subgrants awarded 
                pursuant to subsection (a)(2), to the State 
                educational agency, at such time, in such 
                manner, and accompanied by such information as 
                the State educational agency may require.
            ``(2) Contents.--Each application submitted 
        pursuant to paragraph (1) shall include--
                    ``(A) the results of a comprehensive 
                assessment of the teacher quality and 
                professional development needs of any schools, 
                local educational agencies, and State 
                educational agencies that comprise the eligible 
                partnership with respect to the teaching and 
                learning of mathematics and science;
                    ``(B) a description of how the activities 
                to be carried out by the eligible partnership 
                will be aligned with challenging State academic 
                content and student academic achievement 
                standards in mathematics and science and with 
                other educational reform activities that 
                promote student academic achievement in 
                mathematics and science;
                    ``(C) a description of how the activities 
                to be carried out by the eligible partnership 
                will be based on a review of scientifically 
                based research, and an explanation of how the 
                activities are expected to improve student 
                academic achievement and strengthen the quality 
                of mathematics and science instruction;
                    ``(D) a description of--
                            ``(i) how the eligible partnership 
                        will carry out the authorized 
                        activities described in subsection (c); 
                        and
                            ``(ii) the eligible partnership's 
                        evaluation and accountability plan 
                        described in subsection (e); and
                    ``(E) a description of how the eligible 
                partnership will continue the activities funded 
                under this part after the original grant or 
                subgrant period has expired.
    ``(c) Authorized Activities.--An eligible partnership shall 
use funds provided under this part for one or more of the 
following activities related to elementary schools or secondary 
schools:
            ``(1) Creating opportunities for enhanced and 
        ongoing professional development of mathematics and 
        science teachers that improves the subject matter 
        knowledge of such teachers.
            ``(2) Promoting strong teaching skills for 
        mathematics and science teachers and teacher educators, 
        including integrating reliable scientifically based 
        research teaching methods and technology-based teaching 
        methods into the curriculum.
            ``(3) Establishing and operating mathematics and 
        science summer workshops or institutes, including 
        followup training, for elementary school and secondary 
        school mathematics and science teachers that--
                    ``(A) shall--
                            ``(i) directly relate to the 
                        curriculum and academic areas in which 
                        the teacher provides instruction, and 
                        focus only secondarily on pedagogy;
                            ``(ii) enhance the ability of the 
                        teacher to understand and use the 
                        challenging State academic content 
                        standards for mathematics and science 
                        and to select appropriate curricula; 
                        and
                            ``(iii) train teachers to use 
                        curricula that are--
                                    ``(I) based on scientific 
                                research;
                                    ``(II) aligned with 
                                challenging State academic 
                                content standards; and
                                    ``(III) object-centered, 
                                experiment-oriented, and 
                                concept- and content-based; and
                    ``(B) may include--
                            ``(i) programs that provide 
                        teachers and prospective teachers with 
                        opportunities to work under the 
                        guidance of experienced teachers and 
                        college faculty;
                            ``(ii) instruction in the use of 
                        data and assessments to inform and 
                        instruct classroom practice; and
                            ``(iii) professional development 
                        activities, including supplemental and 
                        followup activities, such as curriculum 
                        alignment, distance learning, and 
                        activities that train teachers to 
                        utilize technology in the classroom.
            ``(4) Recruiting mathematics, engineering, and 
        science majors to teaching through the use of--
                    ``(A) signing and performance incentives 
                that are linked to activities proven effective 
                in retaining teachers, for individuals with 
                demonstrated professional experience in 
                mathematics, engineering, or science;
                    ``(B) stipends provided to mathematics and 
                science teachers for certification through 
                alternative routes;
                    ``(C) scholarships for teachers to pursue 
                advanced course work in mathematics, 
                engineering, or science; and
                    ``(D) other programs that the State 
                educational agency determines to be effective 
                in recruiting and retaining individuals with 
                strong mathematics, engineering, or science 
                backgrounds.
            ``(5) Developing or redesigning more rigorous 
        mathematics and science curricula that are aligned with 
        challenging State and local academic content standards 
        and with the standards expected for postsecondary study 
        in mathematics and science.
            ``(6) Establishing distance learning programs for 
        mathematics and science teachers using curricula that 
        are innovative, content-based, and based on 
        scientifically based research that is current as of the 
        date of the program involved.
            ``(7) Designing programs to prepare a mathematics 
        or science teacher at a school to provide professional 
        development to other mathematics or science teachers at 
        the school and to assist beginning and other teachers 
        at the school, including (if applicable) a mechanism to 
        integrate the teacher's experiences from a summer 
        workshop or institute into the provision of 
        professional development and assistance.
            ``(8) Establishing and operating programs to bring 
        mathematics and science teachers into contact with 
        working scientists, mathematicians, and engineers, to 
        expand such teachers' subject matter knowledge of and 
        research in science and mathematics.
            ``(9) Designing programs to identify and develop 
        exemplary mathematics and science teachers in the 
        kindergarten through grade 8 classrooms.
            ``(10) Training mathematics and science teachers 
        and developing programs to encourage young women and 
        other underrepresented individuals in mathematics and 
        science careers (including engineering and technology) 
        to pursue postsecondary degrees in majors leading to 
        such careers.
    ``(d) Coordination and Consultation.--
            ``(1) Partnership grants.--An eligible partnership 
        receiving a grant under section 203 of the Higher 
        Education Act of 1965 shall coordinate the use of such 
        funds with any related activities carried out by such 
        partnership with funds made available under this part.
            ``(2) National science foundation.--In carrying out 
        the activities authorized by this part, the Secretary 
        shall consult and coordinate with the Director of the 
        National Science Foundation, particularly with respect 
        to the appropriate roles for the Department and the 
        Foundation in the conduct of summer workshops, 
        institutes, or partnerships to improve mathematics and 
        science teaching in elementary schools and secondary 
        schools.
    ``(e) Evaluation and Accountability Plan.--
            ``(1) In general.--Each eligible partnership 
        receiving a grant or subgrant under this part shall 
        develop an evaluation and accountability plan for 
        activities assisted under this part that includes 
        rigorous objectives that measure the impact of 
        activities funded under this part.
            ``(2) Contents.--The plan developed pursuant to 
        paragraph (1)--
                    ``(A) shall include measurable objectives 
                to increase the number of mathematics and 
                science teachers who participate in content-
                based professional development activities;
                    ``(B) shall include measurable objectives 
                for improved student academic achievement on 
                State mathematics and science assessments or, 
                where applicable, an International Mathematics 
                and Science Study assessment; and
                    ``(C) may include objectives and measures 
                for--
                            ``(i) increased participation by 
                        students in advanced courses in 
                        mathematics and science;
                            ``(ii) increased percentages of 
                        elementary school teachers with 
                        academic majors or minors, or group 
                        majors or minors, in mathematics, 
                        engineering, or the sciences; and
                            ``(iii) increased percentages of 
                        secondary school classes in mathematics 
                        and science taught by teachers with 
                        academic majors in mathematics, 
                        engineering, and science.
    ``(f) Report.--Each eligible partnership receiving a grant 
or subgrant under this part shall report annually to the 
Secretary regarding the eligible partnership's progress in 
meeting the objectives described in the accountability plan of 
the partnership under subsection (e).

``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.

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

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

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

``SEC. 2301. DEFINITIONS.

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

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

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

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

    ``(a) Eligible Members.--The following members of the Armed 
Forces are eligible for selection to participate in the 
Program:
            ``(1) Any member who--
                    ``(A) on or after October 1, 1999, becomes 
                entitled to retired or retainer pay in the 
                manner provided in title 10 or title 14, United 
                States Code;
                    ``(B) has an approved date of retirement 
                that is within 1 year after the date on which 
                the member submits an application to 
                participate in the Program; or
                    ``(C) has been transferred to the Retired 
                Reserve.
            ``(2) Any member who, on or after the date of 
        enactment of the No Child Left Behind Act of 2001--
                    ``(A)(i) is separated or released from 
                active duty after 6 or more years of continuous 
                active duty immediately before the separation 
                or release; or
                    ``(ii) has completed a total of at least 10 
                years of active duty service, 10 years of 
                service computed under section 12732 of title 
                10, United States Code, or 10 years of any 
                combination of such service; and
                    ``(B) executes a reserve commitment 
                agreement for a period of not less than 3 years 
                under subsection (e)(2).
            ``(3) Any member who, on or after the date of 
        enactment of the No Child Left Behind Act of 2001, is 
        retired or separated for physical disability under 
        chapter 61 of title 10, United States Code.
            ``(4) Any member who--
                    ``(A) during the period beginning on 
                October 1, 1990, and ending on September 30, 
                1999, was involuntarily discharged or released 
                from active duty for purposes of a reduction of 
                force after 6 or more years of continuous 
                active duty immediately before the discharge or 
                release; or
                    ``(B) applied for the teacher placement 
                program administered under section 1151 of 
                title 10, United States Code, before the repeal 
                of that section, and satisfied the eligibility 
                criteria specified in subsection (c) of such 
                section 1151.
    ``(b) Submission of Applications.--
            ``(1) Form and submission.--Selection of eligible 
        members of the Armed Forces to participate in the 
        Program shall be made on the basis of applications 
        submitted to the Secretary within the time periods 
        specified in paragraph (2). An application shall be in 
        such form and contain such information as the Secretary 
        may require.
            ``(2) Time for submission.--An application shall be 
        considered to be submitted on a timely basis under 
        paragraph (1) if--
                    ``(A) in the case of a member described in 
                paragraph (1)(A), (2), or (3) of subsection 
                (a), the application is submitted not later 
                than 4 years after the date on which the member 
                is retired or separated or released from active 
                duty, whichever applies to the member; or
                    ``(B) in the case of a member described in 
                subsection (a)(4), the application is submitted 
                not later than September 30, 2003.
    ``(c) Selection Criteria.--
            ``(1) Establishment.--Subject to paragraphs (2) and 
        (3), the Secretary shall prescribe the criteria to be 
        used to select eligible members of the Armed Forces to 
        participate in the Program.
            ``(2) Educational background.--
                    ``(A) Elementary or secondary school 
                teacher.--If a member of the Armed Forces 
                described in paragraph (1), (2), or (3) of 
                subsection (a) is applying for assistance for 
                placement as an elementary school or secondary 
                school teacher, the Secretary shall require the 
                member to have received a baccalaureate or 
                advanced degree from an accredited institution 
                of higher education.
                    ``(B) Vocational or technical teacher.--If 
                a member of the Armed Forces described in 
                paragraph (1), (2), or (3) of subsection (a) is 
                applying for assistance for placement as a 
                vocational or technical teacher, the Secretary 
                shall require the member--
                            ``(i) to have received the 
                        equivalent of 1 year of college from an 
                        accredited institution of higher 
                        education and have 6 or more years of 
                        military experience in a vocational or 
                        technical field; or
                            ``(ii) to otherwise meet the 
                        certification or licensing requirements 
                        for a vocational or technical teacher 
                        in the State in which the member seeks 
                        assistance for placement under the 
                        Program.
            ``(3) Honorable service.--A member of the Armed 
        Forces is eligible to participate in the Program only 
        if the member's last period of service in the Armed 
        Forces was honorable, as characterized by the Secretary 
        concerned (as defined in section 101(a)(9) of title 10, 
        United States Code). A member selected to participate 
        in the Program before the retirement of the member or 
        the separation or release of the member from active 
        duty may continue to participate in the Program after 
        the retirement, separation, or release only if the 
        member's last period of service is characterized as 
        honorable by the Secretary concerned (as so defined).
    ``(d) Selection Priorities.--In selecting eligible members 
of the Armed Forces to receive assistance under the Program, 
the Secretary shall give priority to members who have 
educational or military experience in science, mathematics, 
special education, or vocational or technical subjects and 
agree to seek employment as science, mathematics, or special 
education teachers in elementary schools or secondary schools 
or in other schools under the jurisdiction of a local 
educational agency.
    ``(e) Other Conditions on Selection.--
            ``(1) Selection subject to funding.--The Secretary 
        may not select an eligible member of the Armed Forces 
        to participate in the Program under this section and 
        receive financial assistance under section 2304 unless 
        the Secretary has sufficient appropriations for the 
        Program available at the time of the selection to 
        satisfy the obligations to be incurred by the United 
        States under section 2304 with respect to the member.
            ``(2) Reserve commitment agreement.--The Secretary 
        may not select an eligible member of the Armed Forces 
        described in subsection (a)(2)(A) to participate in the 
        Program under this section and receive financial 
        assistance under section 2304 unless--
                    ``(A) the Secretary notifies the Secretary 
                concerned and the member that the Secretary has 
                reserved a full stipend or bonus under section 
                2304 for the member; and
                    ``(B) the member executes a written 
                agreement with the Secretary concerned to serve 
                as a member of the Selected Reserve of a 
                reserve component of the Armed Forces for a 
                period of not less than 3 years (in addition to 
                any other reserve commitment the member may 
                have).

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

    ``(a) Participation Agreement.--
            ``(1) In general.--An eligible member of the Armed 
        Forces selected to participate in the Program under 
        section 2303 and receive financial assistance under 
        this section shall be required to enter into an 
        agreement with the Secretary in which the member 
        agrees--
                    ``(A) within such time as the Secretary may 
                require, to obtain certification or licensing 
                as an elementary school teacher, secondary 
                school teacher, or vocational or technical 
                teacher, and to become a highly qualified 
                teacher; and
                    ``(B) to accept an offer of full-time 
                employment as an elementary school teacher, 
                secondary school teacher, or vocational or 
                technical teacher for not less than 3 school 
                years with a high-need local educational agency 
                or public charter school, as such terms are 
                defined in section 2101, to begin the school 
                year after obtaining that certification or 
                licensing.
            ``(2) Waiver.--The Secretary may waive the 3-year 
        commitment described in paragraph (1)(B) for a 
        participant if the Secretary determines such waiver to 
        be appropriate. If the Secretary provides the waiver, 
        the participant shall not be considered to be in 
        violation of the agreement and shall not be required to 
        provide reimbursement under subsection (f), for failure 
        to meet the 3-year commitment.
    ``(b) Violation of Participation Agreement; Exceptions.--A 
participant in the Program shall not be considered to be in 
violation of the participation agreement entered into under 
subsection (a) during any period in which the participant--
            ``(1) is pursuing a full-time course of study 
        related to the field of teaching at an institution of 
        higher education;
            ``(2) is serving on active duty as a member of the 
        Armed Forces;
            ``(3) is temporarily totally disabled for a period 
        of time not to exceed 3 years as established by sworn 
        affidavit of a qualified physician;
            ``(4) is unable to secure employment for a period 
        not to exceed 12 months by reason of the care required 
        by a spouse who is disabled;
            ``(5) is a highly qualified teacher who is seeking 
        and unable to find full-time employment as a teacher in 
        an elementary school or secondary school or as a 
        vocational or technical teacher for a single period not 
        to exceed 27 months; or
            ``(6) satisfies the provisions of additional 
        reimbursement exceptions that may be prescribed by the 
        Secretary.
    ``(c) Stipend for Participants.--
            ``(1) Stipend authorized.--Subject to paragraph 
        (2), the Secretary may pay to a participant in the 
        Program selected under section 2303 a stipend in an 
        amount of not more than $5,000.
            ``(2) Limitation.--The total number of stipends 
        that may be paid under paragraph (1) in any fiscal year 
        may not exceed 5,000.
    ``(d) Bonus for Participants.--
            ``(1) Bonus authorized.--Subject to paragraph (2), 
        the Secretary may, in lieu of paying a stipend under 
        subsection (c), pay a bonus of $10,000 to a participant 
        in the Program selected under section 2303 who agrees 
        in the participation agreement under subsection (a) to 
        become a highly qualified teacher and to accept full-
        time employment as an elementary school teacher, 
        secondary school teacher, or vocational or technical 
        teacher for not less than 3 school years in a high-need 
        school.
            ``(2) Limitation.--The total number of bonuses that 
        may be paid under paragraph (1) in any fiscal year may 
        not exceed 3,000.
            ``(3) High-need school defined.--In this 
        subsection, the term `high-need school' means a public 
        elementary school, public secondary school, or public 
        charter school that meets one or more of the following 
        criteria:
                    ``(A) Low-income children.--At least 50 
                percent of the students enrolled in the school 
                were from low-income families (as described in 
                section 2302(b)(2)(A)(i)).
                    ``(B) Children with disabilities.--The 
                school has a large percentage of students who 
                qualify for assistance under part B of the 
                Individuals with Disabilities Education Act.
    ``(e) Treatment of Stipend and Bonus.--A stipend or bonus 
paid under this section to a participant in the Program shall 
be taken into account in determining the eligibility of the 
participant for Federal student financial assistance provided 
under title IV of the Higher Education Act of 1965.
    ``(f) Reimbursement Under Certain Circumstances.--
            ``(1) Reimbursement required.--A participant in the 
        Program who is paid a stipend or bonus under this 
        section shall be required to repay the stipend or bonus 
        under the following circumstances:
                    ``(A) Failure to obtain qualifications or 
                employment.--The participant fails to obtain 
                teacher certification or licensing, to become a 
                highly qualified teacher, or to obtain 
                employment as an elementary school teacher, 
                secondary school teacher, or vocational or 
                technical teacher as required by the 
                participation agreement under subsection (a).
                    ``(B) Termination of employment.--The 
                participant voluntarily leaves, or is 
                terminated for cause from, employment as an 
                elementary school teacher, secondary school 
                teacher, or vocational or technical teacher 
                during the 3 years of required service in 
                violation of the participation agreement.
                    ``(C) Failure to complete service under 
                reserve commitment agreement.--The participant 
                executed a written agreement with the Secretary 
                concerned under section 2303(e)(2) to serve as 
                a member of a reserve component of the Armed 
                Forces for a period of 3 years and fails to 
                complete the required term of service.
            ``(2) Amount of reimbursement.--A participant 
        required to reimburse the Secretary for a stipend or 
        bonus paid to the participant under this section shall 
        pay an amount that bears the same ratio to the amount 
        of the stipend or bonus as the unserved portion of 
        required service bears to the 3 years of required 
        service. Any amount owed by the participant shall bear 
        interest at the rate equal to the highest rate being 
        paid by the United States on the day on which the 
        reimbursement is determined to be due for securities 
        having maturities of 90 days or less and shall accrue 
        from the day on which the participant is first notified 
        of the amount due.
            ``(3) Treatment of obligation.--The obligation to 
        reimburse the Secretary under this subsection is, for 
        all purposes, a debt owing the United States. A 
        discharge in bankruptcy under title 11, United States 
        Code, shall not release a participant from the 
        obligation to reimburse the Secretary under this 
        subsection.
            ``(4) Exceptions to reimbursement requirement.--A 
        participant shall be excused from reimbursement under 
        this subsection if the participant becomes permanently 
        totally disabled as established by sworn affidavit of a 
        qualified physician. The Secretary may also waive the 
        reimbursement in cases of extreme hardship to the 
        participant, as determined by the Secretary.
    ``(g) Relationship to Educational Assistance Under 
Montgomery GI Bill.--The receipt by a participant in the 
Program of a stipend or bonus under this section shall not 
reduce or otherwise affect the entitlement of the participant 
to any benefits under chapter 30 of title 38, United States 
Code, or chapter 1606 of title 10, United States Code.

``SEC. 2305. PARTICIPATION BY STATES.

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

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

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

``SEC. 2307. REPORTING REQUIREMENTS.

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

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``SEC. 2311. PURPOSES.

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

``SEC. 2312. DEFINITIONS.

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

``SEC. 2313. GRANT PROGRAM.

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

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

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

                    ``CHAPTER C--GENERAL PROVISIONS

``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``Subpart 2--National Writing Project

``SEC. 2331. PURPOSES.

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

``SEC. 2332. NATIONAL WRITING PROJECT.

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

                      ``Subpart 3--Civic Education

``SEC. 2341. SHORT TITLE.

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

``SEC. 2342. PURPOSE.

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

``SEC. 2343. GENERAL AUTHORITY.

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

``SEC. 2344. WE THE PEOPLE PROGRAM.

    ``(a) The Citizen and the Constitution.--
            ``(1) Educational activities.--The Center for Civic 
        Education--
                    ``(A) shall use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to continue and expand the 
                        educational activities of the program 
                        entitled the `We the People . . . The 
                        Citizen and the Constitution' program 
                        administered by such center;
                            ``(ii) to carry out activities to 
                        enhance student attainment of 
                        challenging academic content standards 
                        in civics and government;
                            ``(iii) to provide a course of 
                        instruction on the basic principles of 
                        the Nation's constitutional democracy 
                        and the history of the Constitution of 
                        the United States, including the Bill 
                        of Rights;
                            ``(iv) to provide, at the request 
                        of a participating school, school and 
                        community simulated congressional 
                        hearings following the course of 
                        instruction described in clause (iii); 
                        and
                            ``(v) to provide an annual national 
                        competition of simulated congressional 
                        hearings for secondary school students 
                        who wish to participate in such a 
                        program; and
                    ``(B) may use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to provide advanced, 
                        sustained, and ongoing training of 
                        teachers about the Constitution of the 
                        United States and the political system 
                        of the United States;
                            ``(ii) to provide materials and 
                        methods of instruction, including 
                        teacher training, that utilize the 
                        latest advancements in educational 
                        technology; and
                            ``(iii) to provide civic education 
                        materials and services to address 
                        specific problems such as the 
                        prevention of school violence and the 
                        abuse of drugs and alcohol.
            ``(2) Availability of program.--The education 
        program authorized under this subsection shall be made 
        available to public and private elementary schools and 
        secondary schools, including Bureau funded schools, in 
        the 435 congressional districts, and in the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
    ``(b) Project Citizen.--
            ``(1) Educational activities.--The Center for Civic 
        Education--
                    ``(A) shall use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to continue and expand the 
                        educational activities of the program 
                        entitled the `We the People . . . 
                        Project Citizen' program administered 
                        by the Center;
                            ``(ii) to carry out activities to 
                        enhance student attainment of 
                        challenging academic content standards 
                        in civics and government;
                            ``(iii) to provide a course of 
                        instruction at the middle school level 
                        on the roles of State and local 
                        governments in the Federal system 
                        established by the Constitution of the 
                        United States; and
                            ``(iv) to provide an annual 
                        national showcase or competition; and
                    ``(B) may use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to provide optional school 
                        and community simulated State 
                        legislative hearings;
                            ``(ii) to provide advanced, 
                        sustained, and ongoing training of 
                        teachers on the roles of State and 
                        local governments in the Federal system 
                        established by the Constitution of the 
                        United States;
                            ``(iii) to provide materials and 
                        methods of instruction, including 
                        teacher training, that utilize the 
                        latest advancements in educational 
                        technology; and
                            ``(iv) to provide civic education 
                        materials and services to address 
                        specific problems such as the 
                        prevention of school violence and the 
                        abuse of drugs and alcohol.
            ``(2) Availability of program.--The education 
        program authorized under this subsection shall be made 
        available to public and private middle schools, 
        including Bureau funded schools, in the 50 States of 
        the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
    ``(c) Bureau-Funded School Defined.--In this section, the 
term `Bureau-funded school' has the meaning given such term in 
section 1146 of the Education Amendments of 1978 (25 U.S.C. 
2026).

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

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

``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS.

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

         ``Subpart 4--Teaching of Traditional American History

``SEC. 2351. ESTABLISHMENT OF PROGRAM.

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

``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS.

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

               ``Subpart 5--Teacher Liability Protection

``SEC. 2361. SHORT TITLE.

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

``SEC. 2362. PURPOSE.

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

``SEC. 2363. DEFINITIONS.

    ``For purposes of this subpart:
            ``(1) Economic loss.--The term `economic loss' 
        means any pecuniary loss resulting from harm (including 
        the loss of earnings or other benefits related to 
        employment, medical expense loss, replacement services 
        loss, loss due to death, burial costs, and loss of 
        business or employment opportunities) to the extent 
        recovery for such loss is allowed under applicable 
        State law.
            ``(2) Harm.--The term `harm' includes physical, 
        nonphysical, economic, and noneconomic losses.
            ``(3) Noneconomic loss.--The term `noneconomic 
        loss' means loss for physical or emotional pain, 
        suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss 
        of society or companionship, loss of consortium (other 
        than loss of domestic service), hedonic damages, injury 
        to reputation, or any other nonpecuniary loss of any 
        kind or nature.
            ``(4) School.--The term `school' means a public or 
        private kindergarten, a public or private elementary 
        school or secondary school, or a home school.
            ``(5) State.--The term `State' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, any other 
        territory or possession of the United States, or any 
        political subdivision of any such State, territory, or 
        possession.
            ``(6) Teacher.--The term `teacher' means--
                    ``(A) a teacher, instructor, principal, or 
                administrator;
                    ``(B) another educational professional who 
                works in a school;
                    ``(C) a professional or nonprofessional 
                employee who--
                            ``(i) works in a school; and
                            ``(ii)(I) in the employee's job, 
                        maintains discipline or ensures safety; 
                        or
                            ``(II) in an emergency, is called 
                        on to maintain discipline or ensure 
                        safety; or
                    ``(D) an individual member of a school 
                board (as distinct from the board).

``SEC. 2364. APPLICABILITY.

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

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

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

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

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

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

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

``SEC. 2368. EFFECTIVE DATE.

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

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``SEC. 2401. SHORT TITLE.

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

``SEC. 2402. PURPOSES AND GOALS.

    ``(a) Purposes.--The purposes of this part are the 
following:
            ``(1) To provide assistance to States and 
        localities for the implementation and support of a 
        comprehensive system that effectively uses technology 
        in elementary schools and secondary schools to improve 
        student academic achievement.
            ``(2) To encourage the establishment or expansion 
        of initiatives, including initiatives involving public-
        private partnerships, designed to increase access to 
        technology, particularly in schools served by high-need 
        local educational agencies.
            ``(3) To assist States and localities in the 
        acquisition, development, interconnection, 
        implementation, improvement, and maintenance of an 
        effective educational technology infrastructure in a 
        manner that expands access to technology for students 
        (particularly for disadvantaged students) and teachers.
            ``(4) To promote initiatives that provide school 
        teachers, principals, and administrators with the 
        capacity to integrate technology effectively into 
        curricula and instruction that are aligned with 
        challenging State academic content and student academic 
        achievement standards, through such means as high-
        quality professional development programs.
            ``(5) To enhance the ongoing professional 
        development of teachers, principals, and administrators 
        by providing constant access to training and updated 
        research in teaching and learning through electronic 
        means.
            ``(6) To support the development and utilization of 
        electronic networks and other innovative methods, such 
        as distance learning, of delivering specialized or 
        rigorous academic courses and curricula for students in 
        areas that would not otherwise have access to such 
        courses and curricula, particularly in geographically 
        isolated regions.
            ``(7) To support the rigorous evaluation of 
        programs funded under this part, particularly regarding 
        the impact of such programs on student academic 
        achievement, and ensure that timely information on the 
        results of such evaluations is widely accessible 
        through electronic means.
            ``(8) To support local efforts using technology to 
        promote parent and family involvement in education and 
        communication among students, parents, teachers, 
        principals, and administrators.
    ``(b) Goals.--
            ``(1) Primary goal.--The primary goal of this part 
        is to improve student academic achievement through the 
        use of technology in elementary schools and secondary 
        schools.
            ``(2) Additional goals.--The additional goals of 
        this part are the following:
                    ``(A) To assist every student in crossing 
                the digital divide by ensuring that every 
                student is technologically literate by the time 
                the student finishes the eighth grade, 
                regardless of the student's race, ethnicity, 
                gender, family income, geographic location, or 
                disability.
                    ``(B) To encourage the effective 
                integration of technology resources and systems 
                with teacher training and curriculum 
                development to establish research-based 
                instructional methods that can be widely 
                implemented as best practices by State 
                educational agencies and local educational 
                agencies.

``SEC. 2403. DEFINITIONS.

    ``In this part:
            ``(1) Eligible local entity.--The term `eligible 
        local entity' means--
                    ``(A) a high-need local educational agency; 
                or
                    ``(B) an eligible local partnership.
            ``(2) Eligible local partnership.--The term 
        `eligible local partnership' means a partnership that--
                    ``(A) shall include at least one high-need 
                local educational agency and at least one--
                            ``(i) local educational agency that 
                        can demonstrate that teachers in 
                        schools served by the agency are 
                        effectively integrating technology and 
                        proven teaching practices into 
                        instruction, based on a review of 
                        relevant research, and that the 
                        integration results in improvement in--
                                    ``(I) classroom instruction 
                                in the core academic subjects; 
                                and
                                    ``(II) the preparation of 
                                students to meet challenging 
                                State academic content and 
                                student academic achievement 
                                standards;
                            ``(ii) institution of higher 
                        education that is in full compliance 
                        with the reporting requirements of 
                        section 207(f) of the Higher Education 
                        Act of 1965 and that has not been 
                        identified by its State as low-
                        performing under section 208 of such 
                        Act;
                            ``(iii) for-profit business or 
                        organization that develops, designs, 
                        manufactures, or produces technology 
                        products or services, or has 
                        substantial expertise in the 
                        application of technology in 
                        instruction; or
                            ``(iv) public or private nonprofit 
                        organization with demonstrated 
                        experience in the application of 
                        educational technology to instruction; 
                        and
                    ``(B) may include other local educational 
                agencies, educational service agencies, 
                libraries, or other educational entities 
                appropriate to provide local programs.
            ``(3) High-need local educational agency.--The term 
        `high-need local educational agency' means a local 
        educational agency that--
                    ``(A) is among the local educational 
                agencies in a State with the highest numbers or 
                percentages of children from families with 
                incomes below the poverty line; and
                    ``(B)(i) operates one or more schools 
                identified under section 1116; or
                    ``(ii) has a substantial need for 
                assistance in acquiring and using technology.

``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

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

             ``Subpart 1--State and Local Technology Grants

``SEC. 2411. ALLOTMENT AND REALLOTMENT.

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

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

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

``SEC. 2413. STATE APPLICATIONS.

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

``SEC. 2414. LOCAL APPLICATIONS.

    ``(a) In General.--To be eligible to receive a subgrant 
from a State educational agency under this subpart, a local 
educational agency or eligible local entity shall submit to the 
State educational agency an application containing a new or 
updated local long-range strategic educational technology plan 
that is consistent with the objectives of the statewide 
educational technology plan described in section 2413(a), and 
such other information as the State educational agency may 
reasonably require, at such time and in such manner as the 
State educational agency may require.
    ``(b) Contents.--The application shall include each of the 
following:
            ``(1) A description of how the applicant will use 
        Federal funds under this subpart to improve the student 
        academic achievement, including technology literacy, of 
        all students attending schools served by the local 
        educational agency and to improve the capacity of all 
        teachers teaching in schools served by the local 
        educational agency to integrate technology effectively 
        into curricula and instruction.
            ``(2) A description of the applicant's specific 
        goals for using advanced technology to improve student 
        academic achievement, aligned with challenging State 
        academic content and student academic achievement 
        standards.
            ``(3) A description of the steps the applicant will 
        take to ensure that all students and teachers in 
        schools served by the local educational agency involved 
        have increased access to educational technology, 
        including how the agency would use funds under this 
        subpart (such as combining the funds with funds from 
        other sources), to help ensure that--
                    ``(A) students in high-poverty and high-
                needs schools, or schools identified under 
                section 1116, have access to technology; and
                    ``(B) teachers are prepared to integrate 
                technology effectively into curricula and 
                instruction.
            ``(4) A description of how the applicant will--
                    ``(A) identify and promote curricula and 
                teaching strategies that integrate technology 
                effectively into curricula and instruction, 
                based on a review of relevant research, leading 
                to improvements in student academic 
                achievement, as measured by challenging State 
                academic content and student academic 
                achievement standards; and
                    ``(B) provide ongoing, sustained 
                professional development for teachers, 
                principals, administrators, and school library 
                media personnel serving the local educational 
                agency, to further the effective use of 
                technology in the classroom or library media 
                center, including, if applicable, a list of the 
                entities that will be partners with the local 
                educational agency involved in providing the 
                ongoing, sustained professional development.
            ``(5) A description of the type and costs of 
        technologies to be acquired under this subpart, 
        including services, software, and digital curricula, 
        and including specific provisions for interoperability 
        among components of such technologies.
            ``(6) A description of how the applicant will 
        coordinate activities carried out with funds provided 
        under this subpart with technology-related activities 
        carried out with funds available from other Federal, 
        State, and local sources.
            ``(7) A description of how the applicant will 
        integrate technology (including software and other 
        electronically delivered learning materials) into 
        curricula and instruction, and a timeline for such 
        integration.
            ``(8) A description of how the applicant will 
        encourage the development and utilization of innovative 
        strategies for the delivery of specialized or rigorous 
        academic courses and curricula through the use of 
        technology, including distance learning technologies, 
        particularly for those areas that would not otherwise 
        have access to such courses and curricula due to 
        geographical isolation or insufficient resources.
            ``(9) A description of how the applicant will 
        ensure the effective use of technology to promote 
        parental involvement and increase communication with 
        parents, including a description of how parents will be 
        informed of the technology being applied in their 
        child's education so that the parents are able to 
        reinforce at home the instruction their child receives 
        at school.
            ``(10) A description of how programs will be 
        developed, where applicable, in collaboration with 
        adult literacy service providers, to maximize the use 
        of technology.
            ``(11) A description of the process and 
        accountability measures that the applicant will use to 
        evaluate the extent to which activities funded under 
        this subpart are effective in integrating technology 
        into curricula and instruction, increasing the ability 
        of teachers to teach, and enabling students to meet 
        challenging State academic content and student academic 
        achievement standards.
            ``(12) A description of the supporting resources 
        (such as services, software, other electronically 
        delivered learning materials, and print resources) that 
        will be acquired to ensure successful and effective 
        uses of technology.
    ``(c) Combined Applications.--A local educational agency 
that is an eligible local entity and submits an application to 
the State educational agency under this section for funds 
awarded under section 2412(a)(2)(A) may combine the agency's 
application for funds awarded under that section with an 
application for funds awarded under section 2412(a)(2)(B).
    ``(d) Special Rule.--
            ``(1) Consortium applications.--
                    ``(A) In general.--For any fiscal year, a 
                local educational agency applying for financial 
                assistance described in section 2412(a)(2)(A) 
                may apply as part of a consortium that includes 
                other local educational agencies, institutions 
                of higher education, educational service 
                agencies, libraries, or other educational 
                entities appropriate to provide local programs.
                    ``(B) Fiscal agent.--If a local educational 
                agency applies for and receives financial 
                assistance described in section 2412(a)(2)(A) 
                as part of a consortium, the local educational 
                agency shall serve as the fiscal agent for the 
                consortium.
            ``(2) State educational agency assistance.--At the 
        request of a local educational agency, a State 
        educational agency may assist the local educational 
        agency in the formation of a consortium described in 
        paragraph (1) to provide services for the teachers and 
        students served by the local educational agency.

``SEC. 2415. STATE ACTIVITIES.

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

``SEC. 2416. LOCAL ACTIVITIES.

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

              ``Subpart 2--National Technology Activities

``SEC. 2421. NATIONAL ACTIVITIES.

    ``(a) Study.--Using funds made available under section 
2404(b)(2), the Secretary--
            ``(1) shall conduct an independent, long-term 
        study, utilizing scientifically based research methods 
        and control groups or control conditions--
                    ``(A) on the conditions and practices under 
                which educational technology is effective in 
                increasing student academic achievement; and
                    ``(B) on the conditions and practices that 
                increase the ability of teachers to integrate 
                technology effectively into curricula and 
                instruction, that enhance the learning 
                environment and opportunities, and that 
                increase student academic achievement, 
                including technology literacy;
            ``(2) shall establish an independent review panel 
        to advise the Secretary on methodological and other 
        issues that arise in conducting the long-term study;
            ``(3) shall consult with other interested Federal 
        departments or agencies, State and local educational 
        practitioners and policymakers (including teachers, 
        principals, and superintendents), and experts in 
        technology, regarding the study; and
            ``(4) shall submit to Congress interim reports, 
        when appropriate, and a final report, to be submitted 
        not later than April 1, 2006, on the findings of the 
        study.
    ``(b) Dissemination.--Using funds made available under 
section 2404(b)(2), the Secretary shall make widely available, 
including through dissemination on the Internet and to all 
State educational agencies and other recipients of funds under 
this part, findings identified through activities carried out 
under this section regarding the conditions and practices under 
which educational technology is effective in increasing student 
academic achievement.
    ``(c) Technical Assistance.--Using funds made available 
under section 2404(b)(2), the Secretary may provide technical 
assistance (directly or through the competitive award of grants 
or contracts) to State educational agencies, local educational 
agencies, and other recipients of funds, particularly in rural 
areas, under this part, in order to assist such State 
educational agencies, local educational agencies, and other 
recipients to achieve the purposes of this part.

``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN.

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

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

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

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

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

``SEC. 2441. INTERNET SAFETY.

    ``(a) In General.--No funds made available under this part 
to a local educational agency for an elementary school or 
secondary school that does not receive services at discount 
rates under section 254(h)(5) of the Communications Act of 1934 
(47 U.S.C. 254(h)(5)) may be used to purchase computers used to 
access the Internet, or to pay for direct costs associated with 
accessing the Internet, for such school unless the school, 
school board, local educational agency, or other authority with 
responsibility for administration of such school both--
            ``(1)(A) has in place a policy of Internet safety 
        for minors that includes the operation of a technology 
        protection measure with respect to any of its computers 
        with Internet access that protects against access 
        through such computers to visual depictions that are--
                    ``(i) obscene;
                    ``(ii) child pornography; or
                    ``(iii) harmful to minors; and
            ``(B) is enforcing the operation of such technology 
        protection measure during any use of such computers by 
        minors; and
            ``(2)(A) has in place a policy of Internet safety 
        that includes the operation of a technology protection 
        measure with respect to any of its computers with 
        Internet access that protects against access through 
        such computers to visual depictions that are--
                    ``(i) obscene; or
                    ``(ii) child pornography; and
            ``(B) is enforcing the operation of such technology 
        protection measure during any use of such computers.
    ``(b) Timing and Applicability of Implementation.--
            ``(1) In general.--The local educational agency 
        with responsibility for a school covered by subsection 
        (a) shall certify the compliance of such school with 
        the requirements of subsection (a) as part of the 
        application process for the next program funding year 
        under this Act following December 21, 2000, and for 
        each subsequent program funding year thereafter.
            ``(2) Process.--
                    ``(A) Schools with internet safety policies 
                and technology protection measures in place.--A 
                local educational agency with responsibility 
                for a school covered by subsection (a) that has 
                in place an Internet safety policy meeting the 
                requirements of subsection (a) shall certify 
                its compliance with subsection (a) during each 
                annual program application cycle under this 
                Act.
                    ``(B) Schools without internet safety 
                policies and technology protection measures in 
                place.--
                            ``(i) Certification.--A local 
                        educational agency with responsibility 
                        for a school covered by subsection (a) 
                        that does not have in place an Internet 
                        safety policy meeting the requirements 
                        of subsection (a)--
                                    ``(I) for the first program 
                                year after December 21, 2000, 
                                in which the local educational 
                                agency is applying for funds 
                                for such school under this Act, 
                                shall certify that it is 
                                undertaking such actions, 
                                including any necessary 
                                procurement procedures, to put 
                                in place an Internet safety 
                                policy that meets such 
                                requirements; and
                                    ``(II) for the second 
                                program year after December 21, 
                                2000, in which the local 
                                educational agency is applying 
                                for funds for such school under 
                                this Act, shall certify that 
                                such school is in compliance 
                                with such requirements.
                            ``(ii) Ineligibility.--Any school 
                        covered by subsection (a) for which the 
                        local educational agency concerned is 
                        unable to certify compliance with such 
                        requirements in such second program 
                        year shall be ineligible for all 
                        funding under this part for such second 
                        program year and all subsequent program 
                        years until such time as such school 
                        comes into compliance with such 
                        requirements.
                    ``(C) Waivers.--Any school subject to a 
                certification under subparagraph (B)(i)(II) for 
                which the local educational agency concerned 
                cannot make the certification otherwise 
                required by that subparagraph may seek a waiver 
                of that subparagraph if State or local 
                procurement rules or regulations or competitive 
                bidding requirements prevent the making of the 
                certification otherwise required by that 
                subparagraph. The local educational agency 
                concerned shall notify the Secretary of the 
                applicability of that subparagraph to the 
                school. Such notice shall certify that the 
                school will be brought into compliance with the 
                requirements in subsection (a) before the start 
                of the third program year after December 21, 
                2000, in which the school is applying for funds 
                under this part.
    ``(c) Disabling During Certain Use.--An administrator, 
supervisor, or person authorized by the responsible authority 
under subsection (a) may disable the technology protection 
measure concerned to enable access for bona fide research or 
other lawful purposes.
    ``(d) Noncompliance.--
            ``(1) Use of general education provisions act 
        remedies.--Whenever the Secretary has reason to believe 
        that any recipient of funds under this part is failing 
        to comply substantially with the requirements of this 
        section, the Secretary may--
                    ``(A) withhold further payments to the 
                recipient under this part;
                    ``(B) issue a complaint to compel 
                compliance of the recipient through a cease and 
                desist order; or
                    ``(C) enter into a compliance agreement 
                with a recipient to bring it into compliance 
                with such requirements,
        in same manner as the Secretary is authorized to take 
        such actions under sections 455, 456, and 457, 
        respectively, of the General Education Provisions Act.
            ``(2) Recovery of funds prohibited.--The actions 
        authorized by paragraph (1) are the exclusive remedies 
        available with respect to the failure of a school to 
        comply substantially with a provision of this section, 
        and the Secretary shall not seek a recovery of funds 
        from the recipient for such failure.
            ``(3) Recommencement of payments.--Whenever the 
        Secretary determines (whether by certification or other 
        appropriate evidence) that a recipient of funds who is 
        subject to the withholding of payments under paragraph 
        (1)(A) has cured the failure providing the basis for 
        the withholding of payments, the Secretary shall cease 
        the withholding of payments to the recipient under that 
        paragraph.
    ``(e) Definitions.--In this subpart:
            ``(1) Computer.--The term `computer' includes any 
        hardware, software, or other technology attached or 
        connected to, installed in, or otherwise used in 
        connection with a computer.
            ``(2) Access to internet.--A computer shall be 
        considered to have access to the Internet if such 
        computer is equipped with a modem or is connected to a 
        computer network that has access to the Internet.
            ``(3) Acquisition or operation.--An elementary 
        school or secondary school shall be considered to have 
        received funds under this part for the acquisition or 
        operation of any computer if such funds are used in any 
        manner, directly or indirectly--
                    ``(A) to purchase, lease, or otherwise 
                acquire or obtain the use of such computer; or
                    ``(B) to obtain services, supplies, 
                software, or other actions or materials to 
                support, or in connection with, the operation 
                of such computer.
            ``(4) Minor.--The term `minor' means an individual 
        who has not attained the age of 17.
            ``(5) Child pornography.--The term `child 
        pornography' has the meaning given that term in section 
        2256 of title 18, United States Code.
            ``(6) Harmful to minors.--The term `harmful to 
        minors' means any picture, image, graphic image file, 
        or other visual depiction that--
                    ``(A) taken as a whole and with respect to 
                minors, appeals to a prurient interest in 
                nudity, sex, or excretion;
                    ``(B) depicts, describes, or represents, in 
                a patently offensive way with respect to what 
                is suitable for minors, an actual or simulated 
                sexual act or sexual contact, actual or 
                simulated normal or perverted sexual acts, or a 
                lewd exhibition of the genitals; and
                    ``(C) taken as a whole, lacks serious 
                literary, artistic, political, or scientific 
                value as to minors.
            ``(7) Obscene.--The term `obscene' has the meaning 
        applicable to that term under section 1460 of title 18, 
        United States Code.
            ``(8) Sexual act and sexual contact.--The terms 
        `sexual act' and `sexual contact' have the meanings 
        given those terms in section 2246 of title 18, United 
        States Code.
    ``(f) Severability.--If any provision of this section is 
held invalid, the remainder of this section shall not be 
affected thereby.''.

SEC. 202. CONTINUATION OF AWARDS.

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

the Secretary of Education shall continue to provide funds in 
accordance with the terms of such award until the date on which 
the award period terminates.

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

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

    Title III (20 U.S.C. 6801 et seq.) is amended to read as 
follows:

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

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

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

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

``SEC. 3101. SHORT TITLE.

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

``SEC. 3102. PURPOSES.

    ``The purposes of this part are--
            ``(1) to help ensure that children who are limited 
        English proficient, including immigrant children and 
        youth, attain English proficiency, develop high levels 
        of academic attainment in English, and meet the same 
        challenging State academic content and student academic 
        achievement standards as all children are expected to 
        meet;
            ``(2) to assist all limited English proficient 
        children, including immigrant children and youth, to 
        achieve at high levels in the core academic subjects so 
        that those children can meet the same challenging State 
        academic content and student academic achievement 
        standards as all children are expected to meet, 
        consistent with section 1111(b)(1);
            ``(3) to develop high-quality language instruction 
        educational programs designed to assist State 
        educational agencies, local educational agencies, and 
        schools in teaching limited English proficient children 
        and serving immigrant children and youth;
            ``(4) to assist State educational agencies and 
        local educational agencies to develop and enhance their 
        capacity to provide high-quality instructional programs 
        designed to prepare limited English proficient 
        children, including immigrant children and youth, to 
        enter all-English instruction settings;
            ``(5) to assist State educational agencies, local 
        educational agencies, and schools to build their 
        capacity to establish, implement, and sustain language 
        instruction educational programs and programs of 
        English language development for limited English 
        proficient children;
            ``(6) to promote parental and community 
        participation in language instruction educational 
        programs for the parents and communities of limited 
        English proficient children;
            ``(7) to streamline language instruction 
        educational programs into a program carried out through 
        formula grants to State educational agencies and local 
        educational agencies to help limited English proficient 
        children, including immigrant children and youth, 
        develop proficiency in English, while meeting 
        challenging State academic content and student academic 
        achievement standards;
            ``(8) to hold State educational agencies, local 
        educational agencies, and schools accountable for 
        increases in English proficiency and core academic 
        content knowledge of limited English proficient 
        children by requiring--
                    ``(A) demonstrated improvements in the 
                English proficiency of limited English 
                proficient children each fiscal year; and
                    ``(B) adequate yearly progress for limited 
                English proficient children, including 
                immigrant children and youth, as described in 
                section 1111(b)(2)(B); and
            ``(9) to provide State educational agencies and 
        local educational agencies with the flexibility to 
        implement language instruction educational programs, 
        based on scientifically based research on teaching 
        limited English proficient children, that the agencies 
        believe to be the most effective for teaching English.

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

``SEC. 3111. FORMULA GRANTS TO STATES.

    ``(a) In General.--In the case of each State educational 
agency having a plan approved by the Secretary for a fiscal 
year under section 3113, the Secretary shall make a grant for 
the year to the agency for the purposes specified in subsection 
(b). The grant shall consist of the allotment determined for 
the State educational agency under subsection (c).
    ``(b) Use of Funds.--
            ``(1) Subgrants to eligible entities.--The 
        Secretary may make a grant under subsection (a) only if 
        the State educational agency involved agrees to expend 
        at least 95 percent of the State educational agency's 
        allotment under subsection (c) for a fiscal year--
                    ``(A) to award subgrants, from allocations 
                under section 3114, to eligible entities to 
                carry out the activities described in section 
                3115 (other than subsection (e)); and
                    ``(B) to award subgrants under section 
                3114(d)(1) to eligible entities that are 
                described in that section to carry out the 
                activities described in section 3115(e).
            ``(2) State activities.--Subject to paragraph (3), 
        each State educational agency receiving a grant under 
        subsection (a) may reserve not more than 5 percent of 
        the agency's allotment under subsection (c) to carry 
        out one or more of the following activities:
                    ``(A) Professional development activities, 
                and other activities, that assist personnel in 
                meeting State and local certification and 
                licensing requirements for teaching limited 
                English proficient children.
                    ``(B) Planning, evaluation, administration, 
                and interagency coordination related to the 
                subgrants referred to in paragraph (1).
                    ``(C) Providing technical assistance and 
                other forms of assistance to eligible entities 
                that are receiving subgrants from a State 
                educational agency under this subpart, 
                including assistance in--
                            ``(i) identifying and implementing 
                        language instruction educational 
                        programs and curricula that are based 
                        on scientifically based research on 
                        teaching limited English proficient 
                        children;
                            ``(ii) helping limited English 
                        proficient children meet the same 
                        challenging State academic content and 
                        student academic achievement standards 
                        as all children are expected to meet;
                            ``(iii) identifying or developing, 
                        and implementing, measures of English 
                        proficiency; and
                            ``(iv) promoting parental and 
                        community participation in programs 
                        that serve limited English proficient 
                        children.
                    ``(D) Providing recognition, which may 
                include providing financial awards, to 
                subgrantees that have exceeded their annual 
                measurable achievement objectives pursuant to 
                section 3122.
            ``(3) Administrative expenses.--From the amount 
        reserved under paragraph (2), a State educational 
        agency may use not more than 60 percent of such amount 
        or $175,000, whichever is greater, for the planning and 
        administrative costs of carrying out paragraphs (1) and 
        (2).
    ``(c) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated 
        under section 3001(a) for each fiscal year, the 
        Secretary shall reserve--
                    ``(A) 0.5 percent or $5,000,000 of such 
                amount, whichever is greater, for payments to 
                eligible entities that are defined under 
                section 3112(a) for activities, approved by the 
                Secretary, consistent with this subpart;
                    ``(B) 0.5 percent of such amount for 
                payments to outlying areas, to be allotted in 
                accordance with their respective needs for 
                assistance under this subpart, as determined by 
                the Secretary, for activities, approved by the 
                Secretary, consistent with this subpart;
                    ``(C) 6.5 percent of such amount for 
                national activities under sections 3131 and 
                3303, except that not more than 0.5 percent of 
                such amount shall be reserved for evaluation 
                activities conducted by the Secretary and not 
                more than $2,000,000 of such amount may be 
                reserved for the National Clearinghouse for 
                English Language Acquisition and Language 
                Instruction Educational Programs described in 
                section 3303; and
                    ``(D) such sums as may be necessary to make 
                continuation awards under paragraph (2).
            ``(2) Continuation awards.--
                    ``(A) In general.--Before making allotments 
                to State educational agencies under paragraph 
                (3) for any fiscal year, the Secretary shall 
                use the sums reserved under paragraph (1)(D) to 
                make continuation awards to recipients who 
                received grants or fellowships for the fiscal 
                year preceding any fiscal year described in 
                section 3001(b)(1)(A) under--
                            ``(i) subparts 1 and 3 of part A of 
                        title VII (as in effect on the day 
                        before the date of enactment of the No 
                        Child Left Behind Act of 2001); or
                            ``(ii) subparts 1 and 3 of part B 
                        of this title.
                    ``(B) Use of funds.--The Secretary shall 
                make the awards in order to allow such 
                recipients to receive awards for the complete 
                period of their grants or fellowships under the 
                appropriate subparts.
            ``(3) State allotments.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amount appropriated 
                under section 3001(a) for each fiscal year that 
                remains after making the reservations under 
                paragraph (1), the Secretary shall allot to 
                each State educational agency having a plan 
                approved under section 3113(c)--
                            ``(i) an amount that bears the same 
                        relationship to 80 percent of the 
                        remainder as the number of limited 
                        English proficient children in the 
                        State bears to the number of such 
                        children in all States; and
                            ``(ii) an amount that bears the 
                        same relationship to 20 percent of the 
                        remainder as the number of immigrant 
                        children and youth in the State bears 
                        to the number of such children and 
                        youth in all States.
                    ``(B) Minimum allotments.--No State 
                educational agency shall receive an allotment 
                under this paragraph that is less than 
                $500,000.
                    ``(C) Reallotment.--If any State 
                educational agency described in subparagraph 
                (A) does not submit a plan to the Secretary for 
                a fiscal year, or submits a plan (or any 
                amendment to a plan) that the Secretary, after 
                reasonable notice and opportunity for a 
                hearing, determines does not satisfy the 
                requirements of this subpart, the Secretary--
                            ``(i) shall endeavor to make the 
                        State's allotment available on a 
                        competitive basis to specially 
                        qualified agencies within the State to 
                        satisfy the requirements of section 
                        3115 (and any additional requirements 
                        that the Secretary may impose), 
                        consistent with the purposes of such 
                        section, and to carry out required and 
                        authorized activities under such 
                        section; and
                            ``(ii) shall reallot any portion of 
                        such allotment remaining after the 
                        application of clause (i) to the 
                        remaining State educational agencies in 
                        accordance with subparagraph (A).
                    ``(D) Special rule for puerto rico.--The 
                total amount allotted to Puerto Rico for any 
                fiscal year under subparagraph (A) shall not 
                exceed 0.5 percent of the total amount allotted 
                to all States for that fiscal year.
            ``(4) Use of data for determinations.--
                    ``(A) In general.--In making State 
                allotments under paragraph (3), for the purpose 
                of determining the number of limited English 
                proficient children in a State and in all 
                States, and the number of immigrant children 
                and youth in a State and in all States, for 
                each fiscal year, the Secretary shall use data 
                that will yield the most accurate, up-to-date 
                numbers of such children and youth.
                    ``(B) Special rule.--
                            ``(i) First 2 years.--In making 
                        determinations under subparagraph (A) 
                        for the 2 fiscal years following the 
                        date of enactment of the No Child Left 
                        Behind Act of 2001, the Secretary shall 
                        determine the number of limited English 
                        proficient children in a State and in 
                        all States, and the number of immigrant 
                        children and youth in a State and in 
                        all States, using data available from 
                        the Bureau of Census or submitted by 
                        the States to the Secretary.
                            ``(ii) Subsequent years.--For 
                        subsequent fiscal years, the Secretary 
                        shall determine the number of limited 
                        English proficient children in a State 
                        and in all States, and the number of 
                        immigrant children and youth in a State 
                        and in all States, using the more 
                        accurate of--
                                    ``(I) the data available 
                                from the American Community 
                                Survey available from the 
                                Department of Commerce; or
                                    ``(II) the number of 
                                children being assessed for 
                                English proficiency in a State 
                                as required under section 
                                1111(b)(7).

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

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

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

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

``SEC. 3114. WITHIN-STATE ALLOCATIONS.

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

``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES.

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

``SEC. 3116. LOCAL PLANS.

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

             ``Subpart 2--Accountability and Administration

``SEC. 3121. EVALUATIONS.

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

``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY.

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

``SEC. 3123. REPORTING REQUIREMENTS.

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

``SEC. 3124. COORDINATION WITH RELATED PROGRAMS.

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

``SEC. 3125. RULES OF CONSTRUCTION.

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

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

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

``SEC. 3127. CIVIL RIGHTS.

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

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

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

``SEC. 3129. PROHIBITION.

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

                    ``Subpart 3--National Activities

``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT.

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

                        ``Subpart 4--Definitions

``SEC. 3141. ELIGIBLE ENTITY.

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

     ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

``SEC. 3201. SHORT TITLE.

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

``SEC. 3202. PURPOSE.

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

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

    ``(a) Eligible Entities.--For the purpose of carrying out 
programs under this part for individuals served by elementary 
schools, secondary schools, and postsecondary schools operated 
predominately for Native American (including Alaska Native) 
children and youth, an Indian tribe, a tribally sanctioned 
educational authority, a Native Hawaiian or Native American 
Pacific Islander native language education organization, or an 
elementary school or secondary school that is operated or 
funded by the Bureau of Indian Affairs shall be considered to 
be a local educational agency.
    ``(b) Application.--Notwithstanding any other provision of 
this part, each tribe, authority, organization, or school 
described in subsection (a) shall submit any application for 
assistance under this part directly to the Secretary along with 
timely comments on the need for the program proposed in the 
application.

``SEC. 3204. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED STATES.

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

            ``Subpart 1--Program Development and Enhancement

``SEC. 3211. FINANCIAL ASSISTANCE FOR LANGUAGE INSTRUCTION EDUCATIONAL 
                    PROGRAMS.

    ``The purpose of this subpart is to assist local 
educational agencies, institutions of higher education, and 
community-based organizations, through the grants authorized 
under sections 3212 and 3213--
            ``(1) to develop and enhance their capacity to 
        provide high-quality instruction through language 
        instruction educational programs or special alternative 
        instruction programs to limited English proficient 
        children; and
            ``(2) to help such children--
                    ``(A) develop English proficiency and, to 
                the extent possible, proficiency in their 
                native language; and
                    ``(B) meet the same challenging State 
                academic content and student academic 
                achievement standards as all children are 
                expected to meet under section 1111(b)(1).

``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES.

    ``(a) Program Authorized.--
            ``(1) Authority.--
                    ``(A) In general.--The Secretary is 
                authorized to award grants to eligible entities 
                having applications approved under section 3214 
                to enable such entities to provide innovative, 
                locally designed, high-quality instruction to 
                limited English proficient children, by 
                expanding, developing, or strengthening 
                language instruction educational programs or 
                special alternative instruction programs.
                    ``(B) Period.--Each grant awarded under 
                this section shall be awarded for a period of 3 
                years.
            ``(2) Authorized activities.--
                    ``(A) Mandatory activities.--Grants awarded 
                under this section shall be used for--
                            ``(i) developing, implementing, 
                        expanding, or enhancing comprehensive 
                        preschool, elementary, or secondary 
                        education programs for limited English 
                        proficient children, that are--
                                    ``(I) aligned with State 
                                and local academic content and 
                                student academic achievement 
                                standards, and local school 
                                reform efforts; and
                                    ``(II) coordinated with 
                                related academic services for 
                                children;
                            ``(ii) providing high-quality 
                        professional development to classroom 
                        teachers, administrators, and other 
                        school or community-based organization 
                        personnel to improve the instruction 
                        and assessment of limited English 
                        proficient children; and
                            ``(iii) annually assessing the 
                        English proficiency of all limited 
                        English proficient children served by 
                        activities carried out under this 
                        section.
                    ``(B) Permissible activities.--Grants 
                awarded under this section may be used for--
                            ``(i) implementing programs to 
                        upgrade the reading and other academic 
                        skills of limited English proficient 
                        children;
                            ``(ii) developing accountability 
                        systems to monitor the academic 
                        progress of limited English proficient 
                        and formerly limited English proficient 
                        children;
                            ``(iii) implementing family 
                        education programs and parent outreach 
                        and training activities designed to 
                        assist parents to become active 
                        participants in the education of their 
                        children;
                            ``(iv) improving the instruction 
                        programs for limited English proficient 
                        children by identifying, acquiring, and 
                        applying effective curricula, 
                        instruction materials (including 
                        materials provided through technology), 
                        and assessments that are all aligned 
                        with State and local standards;
                            ``(v) providing intensified 
                        instruction, including tutorials and 
                        academic, or vocational and technical, 
                        training, for limited English 
                        proficient children;
                            ``(vi) adapting best practice 
                        models for meeting the needs of limited 
                        English proficient children;
                            ``(vii) assisting limited English 
                        proficient children with disabilities;
                            ``(viii) implementing applied 
                        learning activities such as service 
                        learning to enhance and support 
                        comprehensive elementary and secondary 
                        language instruction educational 
                        programs;
                            ``(ix) acquiring or developing 
                        education technology or instruction 
                        materials for limited English 
                        proficient children, including 
                        materials in languages other than 
                        English;
                            ``(x) participating in electronic 
                        networks for materials, training, and 
                        communication, and incorporating 
                        information derived from such 
                        participation in curricula and 
                        programs; and
                            ``(xi) carrying out such other 
                        activities related to the purpose of 
                        this part as the Secretary may approve.
    ``(b) Priority.--In awarding grants under this section, the 
Secretary may give priority to an entity that--
            ``(1) serves a school district--
                    ``(A) that has a total district enrollment 
                that is less than 10,000 students; or
                    ``(B) with a large percentage or number of 
                limited English proficient children; and
            ``(2) has limited or no experience in serving 
        limited English proficient children.
    ``(c) Eligible Entity.--In this section, the term `eligible 
entity' means--
            ``(1) one or more local educational agencies;
            ``(2) one or more local educational agencies in 
        collaboration with an institution of higher education, 
        community-based organization, or State educational 
        agency; or
            ``(3) a community-based organization or an 
        institution of higher education that has an application 
        approved by the local educational agency to participate 
        in programs carried out under this subpart by enhancing 
        early childhood education or family education programs 
        or conducting instruction programs that supplement the 
        educational services provided by a local educational 
        agency.

``SEC. 3213. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT 
                    ACTIVITIES.

    ``(a) Program Authorized.--
            ``(1) Authority.--The Secretary is authorized to 
        award grants to eligible entities having applications 
        approved under section 3214 to enable such entities to 
        develop and implement language instruction educational 
        programs, and improve, reform, or upgrade programs or 
        operations that serve significant percentages or 
        numbers of limited English proficient children.
            ``(2) Mandatory activities.--Grants awarded under 
        this section shall be used for--
                    ``(A) improving instruction programs for 
                limited English proficient children by 
                acquiring and upgrading curricula and related 
                instruction materials;
                    ``(B) aligning the activities carried out 
                under this section with State and local school 
                reform efforts;
                    ``(C) providing training, aligned with 
                State and local standards, to school personnel 
                and participating community-based organization 
                personnel to improve the instruction and 
                assessment of limited English proficient 
                children;
                    ``(D) developing and implementing plans, 
                coordinated with plans for programs carried out 
                under title II of the Higher Education Act of 
                1965 (where applicable), and title II of this 
                Act (where applicable), to recruit teachers 
                trained to serve limited English proficient 
                children;
                    ``(E) implementing culturally and 
                linguistically appropriate family education 
                programs, or parent outreach and training 
                activities, that are designed to assist parents 
                of limited English proficient children to 
                become active participants in the education of 
                their children;
                    ``(F) coordinating the activities carried 
                out under this section with other programs, 
                such as programs carried out under this title;
                    ``(G) providing services to meet the full 
                range of the educational needs of limited 
                English proficient children;
                    ``(H) annually assessing the English 
                proficiency of all limited English proficient 
                children served by the activities carried out 
                under this section; and
                    ``(I) developing or improving 
                accountability systems to monitor the academic 
                progress of limited English proficient 
                children.
            ``(3) Permissible activities.--Grants awarded under 
        this section may be used for--
                    ``(A) implementing programs to upgrade 
                reading and other academic skills of limited 
                English proficient children;
                    ``(B) developing and using educational 
                technology to improve learning, assessments, 
                and accountability to meet the needs of limited 
                English proficient children;
                    ``(C) implementing scientifically based 
                research programs to meet the needs of limited 
                English proficient children;
                    ``(D) providing tutorials and academic, or 
                vocational and technical, training for limited 
                English proficient children;
                    ``(E) developing and implementing State and 
                local academic content and student academic 
                achievement standards for learning English as a 
                second language, as well as for learning other 
                languages;
                    ``(F) developing and implementing programs 
                for limited English proficient children to meet 
                the needs of changing populations of such 
                children;
                    ``(G) implementing policies to ensure that 
                limited English proficient children have access 
                to other education programs (other than 
                programs designed to address limited English 
                proficiency);
                    ``(H) assisting limited English proficient 
                children with disabilities;
                    ``(I) developing and implementing programs 
                to help children become proficient in English 
                and other languages;
                    ``(J) acquiring or developing education 
                technology or instruction materials for limited 
                English proficient children, including 
                materials in languages other than English;
                    ``(K) participating in electronic networks 
                for materials, training, and communication and 
                incorporating information derived from such 
                participation in curricula and programs; and
                    ``(L) carrying out such other activities 
                related to the purpose of this part as the 
                Secretary may approve.
            ``(4) Special rule.--
                    ``(A) Planning.--A recipient of a grant 
                under this section, before carrying out 
                activities under this section, shall plan, 
                train personnel, develop curricula, and acquire 
                or develop materials, but shall not use funds 
                made available under this section for planning 
                purposes for more than 45 days.
                    ``(B) Commencement of activities.-- The 
                recipient shall commence carrying out 
                activities under this section not later than 
                the later of--
                            ``(i) the beginning of the first 
                        school year that begins after the grant 
                        is received; or
                            ``(ii) 30 days after the date of 
                        receipt of the grant.
    ``(b) Availability of Appropriations.--
            ``(1) Reservation of funds for continued 
        payments.--
                    ``(A) Covered grant.--In this paragraph, 
                the term `covered grant' means a grant--
                            ``(i) that was awarded under 
                        section 7112, 7113, 7114, or 7115 (as 
                        such sections were in effect on the day 
                        before the date of enactment of the No 
                        Child Left Behind Act of 2001); and
                            ``(ii) for which the grant period 
                        has not ended.
                    ``(B) Reservation.--For any fiscal year 
                that is part of the grant period of a covered 
                grant, the Secretary shall reserve funds for 
                the payments described in subparagraph (C) from 
                the amount appropriated for the fiscal year 
                under section 3001(a) and made available for 
                carrying out this section.
                    ``(C) Payments.--The Secretary shall 
                continue to make grant payments to each entity 
                that received a covered grant, in accordance 
                with the terms of that grant, for the duration 
                of the grant period of the grant, to carry out 
                activities in accordance with the appropriate 
                section described in subparagraph (A)(i).
            ``(2) Availability.--Of the amount appropriated for 
        a fiscal year under section 3001(a) that is made 
        available to carry out this section, and that remains 
        after the Secretary reserves funds for payments under 
        paragraph (1)--
                    ``(A) not less than \1/3\ of the remainder 
                shall be used to award grants to eligible 
                entities for activities carried out within an 
                entire school district; and
                    ``(B) not less than \2/3\ of the remainder 
                shall be used to award grants to eligible 
                entities for activities carried out within 
                individual schools.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an applicant that--
            ``(1) experiences a significant increase in the 
        number or percentage of limited English proficient 
        children enrolled in the applicant's programs and has 
        limited or no experience in serving limited English 
        proficient children;
            ``(2) is a local educational agency that serves a 
        school district that has a total district enrollment 
        that is less than 10,000 students;
            ``(3) demonstrates that the applicant has a proven 
        track record of success in helping limited English 
        proficient children learn English and meet high 
        academic standards; or
            ``(4) serves a school district with a large number 
        or percentage of limited English proficient children.
    ``(d) Eligible Entities.--In this section, the term 
`eligible entity' means--
            ``(1) one or more local educational agencies; or
            ``(2) one or more local educational agencies, in 
        collaboration with an institution of higher education, 
        community-based organization, or State educational 
        agency.

``SEC. 3214. APPLICATIONS.

    ``(a) In General.--
            ``(1) Secretary.--To receive a grant under this 
        subpart, an eligible entity described in section 3212 
        or 3213 shall submit an application to the Secretary at 
        such time, in such form, and containing such 
        information as the Secretary may require.
            ``(2) State educational agency.--The eligible 
        entity, with the exception of schools funded by the 
        Bureau of Indian Affairs, shall submit a copy of the 
        application submitted by the entity under this section 
        to the State educational agency.
    ``(b) State Review and Comments.--
            ``(1) Deadline.--The State educational agency, not 
        later than 45 days after receipt of an application 
        under this section, shall review the application and 
        submit the written comments of the agency regarding the 
        application to the Secretary.
            ``(2) Comments.--
                    ``(A) Submission of comments.--Regarding 
                applications submitted under this subpart, the 
                State educational agency shall--
                            ``(i) submit to the Secretary 
                        written comments regarding all such 
                        applications; and
                            ``(ii) submit to each eligible 
                        entity the comments that pertain to 
                        such entity.
                    ``(B) Subject.--For purposes of this 
                subpart, such comments shall address--
                            ``(i) how the activities to be 
                        carried out under the grant will 
                        further the academic achievement and 
                        English proficiency of limited English 
                        proficient children served under the 
                        grant; and
                            ``(ii) how the grant application is 
                        consistent with the State plan required 
                        under section 1111.
    ``(c) Eligible Entity Comments.--An eligible entity may 
submit to the Secretary comments that address the comments 
submitted by the State educational agency.
    ``(d) Comment Consideration.--In making grants under this 
subpart, the Secretary shall take into consideration comments 
made by State educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the 
Secretary is authorized to waive the review requirement 
specified in subsection (b) if a State educational agency can 
demonstrate that such review requirement may impede such 
agency's ability to fulfill the requirements of participation 
in the program authorized in section 3224, particularly such 
agency's ability to carry out data collection efforts and such 
agency's ability to provide technical assistance to local 
educational agencies not receiving funds under this subpart.
    ``(f) Required Documentation.--Such application shall 
include documentation that--
            ``(1) the applicant has the qualified personnel 
        required to develop, administer, and implement the 
        program proposed in the application; and
            ``(2) the leadership personnel of each school 
        participating in the program have been involved in the 
        development and planning of the program in the school.
    ``(g) Contents.--
            ``(1) In general.--An application for a grant under 
        this subpart shall contain the following:
                    ``(A) A description of the need for the 
                proposed program, including--
                            ``(i) data on the number of limited 
                        English proficient children in the 
                        school or school district to be served;
                            ``(ii) information on the 
                        characteristics of the children, 
                        including--
                                    ``(I) the native languages 
                                of the children;
                                    ``(II) the proficiency of 
                                the children in English and 
                                their native language;
                                    ``(III) achievement data 
                                (current as of the date of 
                                submission of the application) 
                                for the limited English 
                                proficient children in--
                                            ``(aa) reading or 
                                        language arts (in 
                                        English and in the 
                                        native language, if 
                                        applicable); and
                                            ``(bb) mathematics;
                                    ``(IV) a comparison of that 
                                data for the children with that 
                                data for the English proficient 
                                peers of the children; and
                                    ``(V) the previous 
                                schooling experiences of the 
                                children;
                            ``(iii) the professional 
                        development needs of the instruction 
                        personnel who will provide services for 
                        the limited English proficient children 
                        under the proposed program; and
                            ``(iv) how the services provided 
                        through the grant will supplement the 
                        basic services provided to limited 
                        English proficient children.
                    ``(B) A description of the program to be 
                implemented and how such program's design--
                            ``(i) relates to the linguistic and 
                        academic needs of the limited English 
                        proficient children to be served;
                            ``(ii) will ensure that the 
                        services provided through the program 
                        will supplement the basic services the 
                        applicant provides to limited English 
                        proficient children;
                            ``(iii) will ensure that the 
                        program is coordinated with other 
                        programs under this Act and other Acts;
                            ``(iv) involves the parents of the 
                        limited English proficient children to 
                        be served;
                            ``(v) ensures accountability in 
                        achieving high academic standards; and
                            ``(vi) promotes coordination of 
                        services for the limited English 
                        proficient children to be served and 
                        their families.
                    ``(C) A description, if appropriate, of the 
                applicant's collaborative activities with 
                institutions of higher education, community-
                based organizations, local educational agencies 
                or State educational agencies, private schools, 
                nonprofit organizations, or businesses in 
                carrying out the proposed program.
                    ``(D) An assurance that the applicant will 
                not reduce the level of State and local funds 
                that the applicant expends for language 
                instruction educational programs or special 
                alternative instruction programs if the 
                applicant receives an award under this subpart.
                    ``(E) An assurance that the applicant will 
                employ teachers in the proposed program who, 
                individually or in combination, are proficient 
                in--
                            ``(i) English, with respect to 
                        written, as well as oral, communication 
                        skills; and
                            ``(ii) the native language of the 
                        majority of the children who the 
                        teachers teach, if instruction in the 
                        program is in the native language as 
                        well as English.
                    ``(F) A budget for the grant funds.
            ``(2) Additional information.--Each application for 
        a grant under section 3213 shall--
                    ``(A) describe--
                            ``(i) current services (as of the 
                        date of submission of the application) 
                        the applicant provides to limited 
                        English proficient children;
                            ``(ii) what services limited 
                        English proficient children will 
                        receive under the grant that such 
                        children will not otherwise receive;
                            ``(iii) how funds received under 
                        this subpart will be integrated with 
                        all other Federal, State, local, and 
                        private resources that may be used to 
                        serve limited English proficient 
                        children;
                            ``(iv) specific achievement and 
                        school retention goals for the children 
                        to be served by the proposed program 
                        and how progress toward achieving such 
                        goals will be measured; and
                            ``(v) the current family education 
                        programs (as of the date of submission 
                        of the application) of the eligible 
                        entity, if applicable; and
                    ``(B) provide assurances that--
                            ``(i) the program funded with the 
                        grant will be integrated with the 
                        overall educational program of the 
                        children served through the proposed 
                        program; and
                            ``(ii) the application has been 
                        developed in consultation with parents 
                        and other representatives of the 
                        children to be served in such program.
    ``(h) Approval of Applications.--An application for a grant 
under this subpart may be approved only if the Secretary 
determines that--
            ``(1) the program proposed in the application will 
        use qualified personnel, including personnel who are 
        proficient in the language or languages used for 
        instruction;
            ``(2) in designing the program, the eligible entity 
        has, after consultation with appropriate private school 
        officials--
                    ``(A) taken into account the needs of 
                children in nonprofit private elementary 
                schools and secondary schools; and
                    ``(B) in a manner consistent with the 
                number of such children enrolled in such 
                schools in the area to be served, whose 
                educational needs are of the type and whose 
                language, and grade levels are of a similar 
                type to the needs, language, and grade levels 
                that the program is intended to address, 
                provided for the participation of such children 
                on a basis comparable to the basis on which 
                public school children participate;
            ``(3)(A) student evaluation and assessment 
        procedures in the program are valid and reliable for 
        limited English proficient children; and
            ``(B) limited English proficient children with 
        disabilities will be identified and served through the 
        program in accordance with the requirements of the 
        Individuals with Disabilities Education Act;
            ``(4) Federal funds made available for the program 
        will be used to supplement the State and local funds 
        that, in the absence of such Federal funds, would be 
        expended for special programs for children of limited 
        English proficient individuals, and in no case to 
        supplant such State and local funds, except that 
        nothing in this paragraph shall be construed to 
        preclude a local educational agency from using funds 
        made available under this subpart--
                    ``(A) for activities carried out under an 
                order of a Federal or State court respecting 
                services to be provided to such children; or
                    ``(B) to carry out a plan approved by the 
                Secretary as adequate under title VI of the 
                Civil Rights Act of 1964 with respect to 
                services to be provided to such children;
            ``(5)(A) the assistance provided through the grant 
        will contribute toward building the capacity of the 
        eligible entity to provide a program on a regular 
        basis, similar to the proposed program, that will be of 
        sufficient size, scope, and quality to promise 
        significant improvement in the education of limited 
        English proficient children; and
            ``(B) the eligible entity will have the resources 
        and commitment to continue the program of sufficient 
        size, scope, and quality when assistance under this 
        subpart is reduced or no longer available; and
            ``(6) the eligible entity will use State and 
        national dissemination sources for program design and 
        dissemination of results and products.
    ``(i) Consideration.--In determining whether to approve an 
application under this subpart, the Secretary shall give 
consideration to--
            ``(1) the degree to which the program for which 
        assistance is sought involves the collaborative efforts 
        of institutions of higher education, community-based 
        organizations, the appropriate local educational agency 
        and State educational agency, or businesses; and
            ``(2) whether the application provides for training 
        for personnel participating in, or preparing to 
        participate in, a program that will assist such 
        personnel in meeting State and local certification 
        requirements.

``SEC. 3215. CAPACITY BUILDING.

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

``SEC. 3216. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

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

``SEC. 3217. EVALUATIONS.

    ``(a) Evaluation.--Each recipient of funds under this 
subpart for a program shall annually conduct an evaluation of 
the program and submit to the Secretary a report concerning the 
evaluation, in the form prescribed by the Secretary.
    ``(b) Use of Evaluation.--Such evaluation shall be used by 
the grant recipient--
            ``(1) for program improvement;
            ``(2) to further define the program's goals and 
        objectives; and
            ``(3) to determine program effectiveness.
    ``(c) Evaluation Report Components.--In preparing the 
evaluation reports, the recipient shall--
            ``(1) use the data provided in the application 
        submitted by the recipient under section 3214 as 
        baseline data against which to report academic 
        achievement and gains in English proficiency for 
        children in the program;
            ``(2) disaggregate the results of the evaluation by 
        gender, native languages spoken by children, 
        socioeconomic status, and whether the children have 
        disabilities;
            ``(3) include data on the progress of the recipient 
        in achieving the objectives of the program, including 
        data demonstrating the extent to which children served 
        by the program are meeting the challenging State 
        academic content and student academic achievement 
        standards, and including data comparing limited English 
        proficient children with English proficient children 
        with regard to school retention and academic 
        achievement concerning--
                    ``(A) reading and language arts;
                    ``(B) English proficiency;
                    ``(C) mathematics; and
                    ``(D) the native language of the children, 
                if the program develops native language 
                proficiency;
            ``(4) include information on the extent that 
        professional development activities carried out through 
        the program have resulted in improved classroom 
        practices and improved student academic achievement;
            ``(5) include a description of how the activities 
        carried out through the program are coordinated and 
        integrated with the other Federal, State, or local 
        programs serving limited English proficient children; 
        and
            ``(6) include such other information as the 
        Secretary may require.

``SEC. 3218. CONSTRUCTION.

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

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

``SEC. 3221. AUTHORITY.

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

``SEC. 3222. RESEARCH.

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

``SEC. 3223. ACADEMIC EXCELLENCE AWARDS.

    ``(a) Authority.--The Secretary may make grants to State 
educational agencies to assist the agencies in recognizing 
local educational agencies and other public and nonprofit 
entities whose programs have--
            ``(1) demonstrated significant progress in 
        assisting limited English proficient children to learn 
        English according to age appropriate and 
        developmentally appropriate standards; and
            ``(2) demonstrated significant progress in 
        assisting limited English proficient children to meet, 
        according to age appropriate and developmentally 
        appropriate standards, the same challenging State 
        academic content and student academic achievement 
        standards as all children are expected to meet.
    ``(b) Applications.--A State educational agency desiring a 
grant under this section shall include an application for such 
grant in the application submitted by the agency under section 
3224(e).

``SEC. 3224. STATE GRANT PROGRAM.

    ``(a) State Grant Program.--The Secretary is authorized to 
make an award to a State educational agency that demonstrates, 
to the satisfaction of the Secretary, that such agency, through 
such agency's programs and other Federal education programs, 
effectively provides for the education of limited English 
proficient children within the State.
    ``(b) Payments.--The amount paid to a State educational 
agency under subsection (a) shall not exceed 5 percent of the 
total amount awarded to local educational agencies and entities 
within the State under subpart 1 for the previous fiscal year, 
except that in no case shall the amount paid by the Secretary 
to any State educational agency under this subsection for any 
fiscal year be less than $100,000.
    ``(c) Use of Funds.--
            ``(1) In general.--A State educational agency shall 
        use funds awarded under this section--
                    ``(A) to assist local educational agencies 
                in the State with activities that--
                            ``(i) consist of program design, 
                        capacity building, assessment of 
                        student academic achievement, program 
                        evaluation, and development of data 
                        collection and accountability systems 
                        for limited English proficient 
                        children; and
                            ``(ii) are aligned with State 
                        reform efforts; and
                    ``(B) to collect data on the State's 
                limited English proficient populations and 
                document the services available to all such 
                populations.
            ``(2) Training.--The State educational agency may 
        also use funds provided under this section for the 
        training of State educational agency personnel in 
        educational issues affecting limited English proficient 
        children.
            ``(3) Special rule.--Recipients of funds under this 
        section shall not restrict the provision of services 
        under this section to federally funded programs.
    ``(d) State Consultation.--A State educational agency 
receiving funds under this section shall consult with 
recipients of grants under this subpart and other individuals 
or organizations involved in the development or operation of 
programs serving limited English proficient children to ensure 
that such funds are used in a manner consistent with the 
requirements of this subpart.
    ``(e) Applications.--A State educational agency desiring to 
receive funds under this section shall submit an application to 
the Secretary at such time, in such form, and containing such 
information and assurances as the Secretary may require.
    ``(f) Supplement, Not Supplant.--Federal funds made 
available under this section for any fiscal year shall be used 
by the State educational agency to supplement and, to the 
extent practical, to increase the State funds that, in the 
absence of such Federal funds, would be made available for the 
purposes described in this section, and in no case to supplant 
such State funds.
    ``(g) Report to the Secretary.--A State educational agency 
receiving an award under this section shall provide for the 
annual submission of a summary report to the Secretary 
describing such State's use of the funds made available through 
the award.

``SEC. 3225. INSTRUCTION MATERIALS DEVELOPMENT.

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

                 ``Subpart 3--Professional Development

``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide 
assistance to prepare educators to improve educational services 
for limited English proficient children by--
            ``(1) supporting professional development programs 
        and activities to prepare teachers, pupil service 
        personnel, administrators, and other educational 
        personnel working in language instruction educational 
        programs to provide effective services to limited 
        English proficient children;
            ``(2) incorporating curricula and resources 
        concerning appropriate and effective instruction and 
        assessment methodologies specific to limited English 
        proficient children into preservice and inservice 
        professional development programs;
            ``(3) upgrading the qualifications and skills of 
        non-certified educational personnel, including 
        paraprofessionals, to enable such personnel to meet 
        high professional standards for educating limited 
        English proficient children;
            ``(4) improving the quality of professional 
        development programs in schools or departments of 
        education at institutions of higher education, for 
        educational personnel serving, or preparing to serve, 
        limited English proficient children; and
            ``(5) supporting the recruitment and training of 
        prospective educational personnel to serve limited 
        English proficient children by providing fellowships 
        for undergraduate, graduate, doctoral, and post-
        doctoral study related to the instruction of such 
        children.
    ``(b) Authorization.--
            ``(1) In general.--The Secretary is authorized to 
        award grants under this section to--
                    ``(A) State educational agencies;
                    ``(B) local educational agencies;
                    ``(C) institutions of higher education; or
                    ``(D) consortia of one or more local 
                educational agencies, State educational 
                agencies, institutions of higher education, 
                for-profit organizations, or nonprofit 
                organizations.
            ``(2) Duration.--Each grant awarded under this 
        section shall be awarded for a period of not more than 
        4 years.
    ``(c) Authorized Activities.--Grants awarded under this 
section shall be used to conduct high-quality professional 
development programs and effective activities to improve the 
quality of instruction and services provided to limited English 
proficient children, including--
            ``(1) implementing preservice and inservice 
        professional development programs for teachers who 
        serve limited English proficient children, 
        administrators, and other educational personnel who are 
        preparing to provide educational services for limited 
        English proficient children, including professional 
        development programs that assist limited English 
        proficient children to attain English proficiency;
            ``(2) implementing school-based collaborative 
        efforts among teachers to improve instruction in core 
        academic subjects, especially reading, for limited 
        English proficient children;
            ``(3) developing and implementing programs to 
        assist beginning teachers who serve limited English 
        proficient children with transitioning to the teaching 
        profession, including programs that provide mentoring 
        and team teaching with trained and experienced 
        teachers;
            ``(4) implementing programs that support effective 
        teacher use of education technologies to improve 
        instruction and assessment;
            ``(5) developing curricular materials and 
        assessments for teachers that are appropriate to the 
        needs of limited English proficient children, and that 
        are aligned with challenging State academic content and 
        student academic achievement standards, including 
        materials and assessments that ensure limited English 
        proficient children attain English proficiency;
            ``(6) integrating and coordinating activities with 
        entities carrying out other programs consistent with 
        the purpose of this section and supported under this 
        Act, or other Acts as appropriate;
            ``(7) developing and implementing career ladder 
        programs to upgrade the qualifications and skills of 
        non-certified educational personnel working in, or 
        preparing to work in, language instruction educational 
        programs to enable such personnel to meet high 
        professional standards, including standards for 
        certification and licensure as teachers;
            ``(8) developing and implementing activities to 
        help recruit and train secondary school students as 
        teachers who serve limited English proficient children;
            ``(9) providing fellowships and assistance for 
        costs related to enrollment in a course of study at an 
        institution of higher education that addresses the 
        instruction of limited English proficient children in 
        such areas as teacher training, program administration, 
        research, evaluation, and curriculum development, and 
        for the support of dissertation research related to 
        such study, except that any person receiving such a 
        fellowship or assistance shall agree to--
                    ``(A) work in an activity related to 
                improving the educational services for limited 
                English proficient children authorized under 
                this subpart, including work as a teacher that 
                serves limited English proficient children, for 
                a period of time equivalent to the period of 
                time during which such person receives 
                assistance under this paragraph; or
                    ``(B) repay such assistance; and
            ``(10) carrying out such other activities as are 
        consistent with the purpose of this section.
    ``(d) Application.--
            ``(1) In general.--Each eligible entity desiring a 
        grant under this section shall submit an application to 
        the Secretary at such time, in such form, and 
        containing such information as the Secretary may 
        require.
            ``(2) Contents.--Each application shall--
                    ``(A) describe the programs and activities 
                proposed to be developed, implemented, and 
                administered under the award;
                    ``(B) describe how the applicant has 
                consulted with, and assessed the needs of, 
                public and private schools serving limited 
                English proficient children to determine such 
                schools' need for, and the design of, the 
                program for which funds are sought; and
                    ``(C) describe how the programs and 
                activities to be carried out under the award 
                will be used to ensure that limited English 
                proficient children meet challenging State 
                academic content and student academic 
                achievement standards and attain English 
                proficiency.
            ``(3) Special rule.--An eligible entity that 
        proposes to conduct a master's-level or doctoral-level 
        program with funds received under this section shall 
        include in the entity's application an assurance that 
        such program will include a training practicum in a 
        local elementary school or secondary school program 
        serving limited English proficient children.
            ``(4) Outreach and technical assistance.--The 
        Secretary shall provide for outreach and technical 
        assistance to institutions of higher education eligible 
        for assistance under title III of the Higher Education 
        Act of 1965, and institutions of higher education that 
        are operated or funded by the Bureau of Indian Affairs, 
        to facilitate the participation of such institutions in 
        programs and activities under this section.
            ``(5) Distribution rule.--In making awards under 
        this section, the Secretary shall ensure adequate 
        representation of Hispanic-serving institutions that 
        demonstrate competence and experience in carrying out 
        the programs and activities authorized under this 
        section and that are otherwise qualified.
    ``(e) Priorities in Awarding Grants.--
            ``(1) Grants to agencies.--In awarding grants to 
        State educational agencies and local educational 
        agencies under this section, the Secretary shall give 
        priority to agencies that propose programs and 
        activities designed to implement professional 
        development programs for teachers and educational 
        personnel who are providing or preparing to provide 
        educational services for limited English proficient 
        children, including services provided through language 
        instruction educational programs, that ensure such 
        children attain English proficiency and meet 
        challenging State academic content and student academic 
        achievement standards.
            ``(2) Grants to institutions of higher education.--
        In awarding grants to institutions of higher education 
        under this section, the Secretary shall give priority 
        to institutions that propose programs and activities to 
        recruit and upgrade the qualifications and skills of 
        certified and non-certified educational personnel by 
        offering degree programs that prepare beginning 
        teachers to serve limited English proficient children.
    ``(f) Program Evaluations.--Each recipient of an award 
under this section for a program or activity shall annually 
conduct an independent evaluation of the program or activity 
and submit to the Secretary a report containing such 
evaluation. Such report shall include information on--
            ``(1) the program or activity conducted by the 
        recipient to provide high-quality professional 
        development to participants in such program or 
        activity;
            ``(2) the number of participants served through the 
        program or activity, the number of participants who 
        completed the requirements of the program or activity, 
        and the number of participants who took positions in an 
        instruction setting with limited English proficient 
        children;
            ``(3) the effectiveness of the program or activity 
        in imparting the professional skills necessary for 
        participants to achieve the objectives of the program 
        or activity; and
            ``(4) the teaching effectiveness of graduates of 
        the program or activity or other participants who have 
        completed the program or activity.

           ``Subpart 4--Emergency Immigrant Education Program

``SEC. 3241. PURPOSE.

    ``The purpose of this subpart is to assist eligible local 
educational agencies that experience unexpectedly large 
increases in their student population due to immigration--
            ``(1) to provide high-quality instruction to 
        immigrant children and youth; and
            ``(2) to help such children and youth--
                    ``(A) with their transition into American 
                society; and
                    ``(B) meet the same challenging State 
                academic content and student academic 
                achievement standards as all children are 
                expected to meet.

``SEC. 3242. STATE ADMINISTRATIVE COSTS.

    ``For any fiscal year, a State educational agency may 
reserve not more than 1.5 percent (2 percent if the State 
educational agency distributes funds received under this 
subpart to local educational agencies on a competitive basis) 
of the amount allotted to such agency under section 3244 to pay 
the costs of performing such agency's administrative functions 
under this subpart.

``SEC. 3243. WITHHOLDING.

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

``SEC. 3244. STATE ALLOTMENTS.

    ``(a) Payments.--The Secretary shall, in accordance with 
the provisions of this section, make payments to State 
educational agencies for each of the fiscal years 2002 through 
2008 for the purpose set forth in section 3241.
    ``(b) Allotments.--
            ``(1) In general.--Except as provided in 
        subsections (c) and (d), of the amount appropriated for 
        each fiscal year for this subpart, each State 
        participating in the program assisted under this 
        subpart shall receive an allotment equal to the 
        proportion of the number of immigrant children and 
        youth who are enrolled in public elementary schools or 
        secondary schools under the jurisdiction of each local 
        educational agency described in paragraph (2), and in 
        nonpublic elementary schools or secondary schools 
        within the district served by each such local 
        educational agency within such State, relative to the 
        total number of immigrant children and youth so 
        enrolled in all the States participating in the program 
        assisted under this subpart.
            ``(2) Eligible local educational agencies.--A local 
        educational agency referred to in paragraph (1) is a 
        local educational agency for which the sum of the 
        number of immigrant children and youth who are enrolled 
        in public elementary schools or secondary schools under 
        the jurisdiction of such agency, and in nonpublic 
        elementary schools or secondary schools within the 
        district served by such agency, during the fiscal year 
        for which the payments are to be made under this 
        subpart, is equal to at least--
                    ``(A) 500; or
                    ``(B) 3 percent of the total number of 
                children enrolled in such public or nonpublic 
                schools during such fiscal year,
        whichever is less.
    ``(c) Determinations of Number of Children and Youth.--
            ``(1) In general.--Determinations by the Secretary 
        under this section for any period with respect to the 
        number of immigrant children and youth shall be made on 
        the basis of data or estimates provided to the 
        Secretary by each State educational agency in 
        accordance with criteria established by the Secretary, 
        unless the Secretary determines, after notice and 
        opportunity for a hearing to the affected State 
        educational agency, that such data or estimates are 
        clearly erroneous.
            ``(2) Special rule.--No such determination with 
        respect to the number of immigrant children and youth 
        shall operate because of an underestimate or 
        overestimate to deprive any State educational agency of 
        the allotment under this section that such State would 
        otherwise have received had such determination been 
        made on the basis of accurate data.
    ``(d) Reallotment.--
            ``(1) In general.--Whenever the Secretary 
        determines that any amount of a payment made to a State 
        under this subpart for a fiscal year will not be used 
        by such State for carrying out the purpose for which 
        the payment was made, the Secretary shall make such 
        amount available for carrying out such purpose to one 
        or more other States to the extent the Secretary 
        determines that such other States will be able to use 
        such additional amount for carrying out such purpose.
            ``(2) Fiscal year.--Any amount made available to a 
        State from any appropriation for a fiscal year in 
        accordance with paragraph (1) shall, for purposes of 
        this subpart, be regarded as part of such State's 
        payment (as determined under subsection (b)) for such 
        year, but shall remain available until the end of the 
        succeeding fiscal year.
    ``(e) Reservation of Funds.--
            ``(1) In general.--Notwithstanding any other 
        provision of this subpart, if the amount appropriated 
        to carry out this subpart exceeds $50,000,000 for a 
        fiscal year, a State educational agency may reserve not 
        more than 20 percent of such agency's payment under 
        this subpart for such year to award grants, on a 
        competitive basis, to local educational agencies within 
        the State as follows:
                    ``(A) Agencies with immigrant children and 
                youth.--At least \1/2\ of the funds reserved 
                under this paragraph shall be made available to 
                eligible local educational agencies (as 
                described in subsection (b)(2)) within the 
                State with the highest numbers and percentages 
                of immigrant children and youth.
                    ``(B) Agencies with a sudden influx of 
                children and youth.--Funds reserved under this 
                paragraph and not made available under 
                subparagraph (A) may be distributed to local 
                educational agencies within the State that are 
                experiencing a sudden influx of immigrant 
                children and youth and that are otherwise not 
                eligible for assistance under this subpart.
            ``(2) Use of grant funds.--Each local educational 
        agency receiving a grant under paragraph (1) shall use 
        such grant funds to carry out the activities described 
        in section 3247.
            ``(3) Information.--Local educational agencies 
        receiving funds under paragraph (1) with the highest 
        number of immigrant children and youth may make 
        information available on serving immigrant children and 
        youth to local educational agencies in the State with 
        sparse numbers of such children and youth.

``SEC. 3245. STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall 
receive any payment under this subpart for any fiscal year 
unless such agency submits an application to the Secretary at 
such time, in such manner, and containing or accompanied by 
such information, as the Secretary may reasonably require. Each 
such application shall--
            ``(1) provide that the educational programs, 
        services, and activities for which payments under this 
        subpart are made will be administered by or under the 
        supervision of the agency;
            ``(2) provide assurances that payments under this 
        subpart will be used for purposes set forth in sections 
        3241 and 3247, including a description of how local 
        educational agencies receiving funds under this subpart 
        will use such funds to meet such purposes and will 
        coordinate with entities carrying out other programs 
        and activities assisted under this Act, and other Acts 
        as appropriate;
            ``(3) provide an assurance that local educational 
        agencies receiving funds under this subpart will 
        coordinate the use of such funds with entities carrying 
        out programs and activities assisted under part A of 
        title I;
            ``(4) provide assurances that such payments, with 
        the exception of payments reserved under section 
        3244(e), will be distributed among local educational 
        agencies within that State on the basis of the number 
        of immigrant children and youth counted with respect to 
        each such local educational agency under section 
        3244(b)(1);
            ``(5) provide assurances that the State educational 
        agency will not finally disapprove in whole or in part 
        any application for funds received under this subpart 
        without first affording the local educational agency 
        submitting an application for such funds reasonable 
        notice and opportunity for a hearing;
            ``(6) provide for making such reports as the 
        Secretary may reasonably require to perform the 
        Secretary's functions under this subpart;
            ``(7) provide assurances--
                    ``(A) that to the extent consistent with 
                the number of immigrant children and youth 
                enrolled in the nonpublic elementary schools or 
                secondary schools within the district served by 
                a local educational agency, such agency, after 
                consultation with appropriate officials of such 
                schools, shall provide for the benefit of such 
                children and youth secular, neutral, and 
                nonideological services, materials, and 
                equipment necessary for the education of such 
                children and youth;
                    ``(B) that the control of funds provided 
                under this subpart for any materials or 
                equipment, or property repaired, remodeled, or 
                constructed with those funds shall be in a 
                public agency for the uses and purpose provided 
                in this subpart, and a public agency shall 
                administer such funds and property; and
                    ``(C) that the provision of services 
                pursuant to this paragraph shall be provided by 
                employees of a public agency or through 
                contract by such public agency with a person, 
                association, agency, or corporation who or 
                which, in the provision of such services, is 
                independent of such nonpublic elementary school 
                or secondary school and of any religious 
                organization, and such employment or contract 
                shall be under the control and supervision of 
                such public agency, and the funds provided 
                under this paragraph shall not be commingled 
                with State or local funds;
            ``(8) provide that funds reserved under section 
        3244(e) be awarded on a competitive basis based on 
        merit and need in accordance with such section; and
            ``(9) provide an assurance that the State 
        educational agency and local educational agencies in 
        the State receiving funds under this subpart will 
        comply with the requirements of section 1120(b).
    ``(b) Application Review.--
            ``(1) In general.--The Secretary shall review all 
        applications submitted pursuant to this section by 
        State educational agencies.
            ``(2) Approval.--The Secretary shall approve any 
        application submitted by a State educational agency 
        that meets the requirements of this section.
            ``(3) Disapproval.--The Secretary shall disapprove 
        any application submitted by a State educational agency 
        that does not meet the requirements of this section, 
        but shall not finally disapprove an application except 
        after providing reasonable notice, technical 
        assistance, and an opportunity for a hearing to the 
        State educational agency.

``SEC. 3246. ADMINISTRATIVE PROVISIONS.

    ``(a) Notification of Amount.--The Secretary, not later 
than June 1 of each year, shall notify each State educational 
agency that has an application approved under section 3245 of 
the amount of such agency's allotment under section 3244 for 
the succeeding year.
    ``(b) Services to Immigrant Children and Youth Enrolled in 
Nonpublic Schools.--If by reason of any provision of law a 
local educational agency is prohibited from providing 
educational services for immigrant children and youth enrolled 
in nonpublic elementary schools and secondary schools, as 
required by section 3245(a)(7), or if the Secretary determines 
that a local educational agency has substantially failed or is 
unwilling to provide for the participation on an equitable 
basis of such children and youth enrolled in such schools, the 
Secretary may waive such requirement and shall arrange for the 
provision of services, subject to the requirements of this 
subpart, to such children and youth. Such waivers shall be 
subject to consultation, withholding, notice, and judicial 
review requirements in accordance with the provisions of title 
I.

``SEC. 3247. USES OF FUNDS.

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

``SEC. 3248. REPORTS.

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

                      ``Subpart 5--Administration

``SEC. 3251. RELEASE TIME.

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

``SEC. 3252. NOTIFICATION.

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

``SEC. 3253. COORDINATION AND REPORTING REQUIREMENTS.

    ``(a) Coordination With Related Programs.--In order to 
maximize Federal efforts aimed at serving the educational needs 
of children and youth of limited English proficiency, the 
Secretary shall coordinate and ensure close cooperation with 
other programs serving language-minority and limited English 
proficient children that are administered by the Department and 
other agencies. The Secretary shall consult with the Secretary 
of Labor, the Secretary of Health and Human Services, the 
Secretary of Agriculture, the Attorney General, and the heads 
of other relevant agencies to identify and eliminate barriers 
to appropriate coordination of programs that affect language-
minority and limited English proficient children and their 
families. The Secretary shall provide for continuing 
consultation and collaboration, between the Office of English 
Language Acquisition, Language Enhancement, and Academic 
Achievement for Limited English Proficient Students and 
relevant programs operated by the Department, including 
programs under this part and other programs under this Act, in 
planning, contracts, providing joint technical assistance, 
providing joint field monitoring activities and in other 
relevant activities to ensure effective program coordination to 
provide high-quality educational opportunities to all language-
minority and limited English proficient children.
    ``(b) Data.--The Secretary shall, to the extent feasible, 
ensure that all data collected by the Department shall include 
the collection and reporting of data on limited English 
proficient children.
    ``(c) Publication of Proposals.--The Secretary shall 
publish and disseminate all requests for proposals for programs 
funded under this part.
    ``(d) Report.--The Director shall prepare and, not later 
than February 1 of every other year, shall submit to the 
Secretary, the Committee on Education and the Workforce of the 
House of Representatives, and the Committee on Health, 
Education, Labor, and Pensions of the Senate a report--
            ``(1) on programs and activities carried out to 
        serve limited English proficient children under this 
        part, and the effectiveness of such programs and 
        activities in improving the academic achievement and 
        English proficiency of children who are limited English 
        proficient;
            ``(2) containing a critical synthesis of data 
        reported by States under section 3224, when applicable;
            ``(3) containing an estimate of the number of 
        certified or licensed teachers working in language 
        instruction educational programs and educating limited 
        English proficient children, and an estimate of the 
        number of such teachers that will be needed for the 
        succeeding 5 fiscal years;
            ``(4) containing the major findings of 
        scientifically based research carried out under this 
        part; and
            ``(5) containing other information gathered from 
        the reports submitted to the Secretary under this title 
        when applicable.

                      ``PART C--GENERAL PROVISIONS

``SEC. 3301. DEFINITIONS.

    ``Except as otherwise provided, in this title:
            ``(1) Child.--The term `child' means any individual 
        aged 3 through 21.
            ``(2) Community-based organization.--The term 
        `community-based organization' means a private 
        nonprofit organization of demonstrated effectiveness, 
        Indian tribe, or tribally sanctioned educational 
        authority, that is representative of a community or 
        significant segments of a community and that provides 
        educational or related services to individuals in the 
        community. Such term includes a Native Hawaiian or 
        Native American Pacific Islander native language 
        educational organization.
            ``(3) Community college.--The term `community 
        college' means an institution of higher education as 
        defined in section 101 of the Higher Education Act of 
        1965 that provides not less than a 2-year program that 
        is acceptable for full credit toward a bachelor's 
        degree, including institutions receiving assistance 
        under the Tribally Controlled College or University 
        Assistance Act of 1978.
            ``(4) Director.--The term `Director' means the 
        Director of the Office of English Language Acquisition, 
        Language Enhancement, and Academic Achievement for 
        Limited English Proficient Students established under 
        section 209 of the Department of Education Organization 
        Act.
            ``(5) Family education program.--The term `family 
        education program' means a language instruction 
        educational program or special alternative instruction 
        program that--
                    ``(A) is designed--
                            ``(i) to help limited English 
                        proficient adults and out-of-school 
                        youths achieve English proficiency; and
                            ``(ii) to provide instruction on 
                        how parents and family members can 
                        facilitate the educational achievement 
                        of their children;
                    ``(B) when feasible, uses instructional 
                programs based on models developed under the 
                Even Start Family Literacy Programs, which 
                promote adult literacy and train parents to 
                support the educational growth of their 
                children, the Parents as Teachers Program, and 
                the Home Instruction Program for Preschool 
                Youngsters; and
                    ``(C) gives preference to participation by 
                parents and immediate family members of 
                children attending school.
            ``(6) Immigrant children and youth.--The term 
        `immigrant children and youth' means individuals who--
                    ``(A) are aged 3 through 21;
                    ``(B) were not born in any State; and
                    ``(C) have not been attending one or more 
                schools in any one or more States for more than 
                3 full academic years.
            ``(7) Indian tribe.--The term `Indian tribe' means 
        any Indian tribe, band, nation, or other organized 
        group or community, including any Native village or 
        Regional Corporation or Village Corporation as defined 
        in or established pursuant to the Alaska Native Claims 
        Settlement Act, that is recognized as eligible for the 
        special programs and services provided by the United 
        States to Indians because of their status as Indians.
            ``(8) Language instruction educational program.--
        The term `language instruction educational program' 
        means an instruction course--
                    ``(A) in which a limited English proficient 
                child is placed for the purpose of developing 
                and attaining English proficiency, while 
                meeting challenging State academic content and 
                student academic achievement standards, as 
                required by section 1111(b)(1); and
                    ``(B) that may make instructional use of 
                both English and a child's native language to 
                enable the child to develop and attain English 
                proficiency, and may include the participation 
                of English proficient children if such course 
                is designed to enable all participating 
                children to become proficient in English and a 
                second language.
            ``(9) Native american and native american 
        language.--The terms `Native American' and `Native 
        American language' shall have the meanings given such 
        terms in section 103 of the Native American Languages 
        Act.
            ``(10) Native hawaiian or native american pacific 
        islander native language educational organization.--The 
        term `Native Hawaiian or Native American Pacific 
        Islander native language educational organization' 
        means a nonprofit organization with--
                    ``(A) a majority of its governing board and 
                employees consisting of fluent speakers of the 
                traditional Native American languages used in 
                the organization's educational programs; and
                    ``(B) not less than 5 years successful 
                experience in providing educational services in 
                traditional Native American languages.
            ``(11) Native language.--The term `native 
        language', when used with reference to an individual of 
        limited English proficiency, means--
                    ``(A) the language normally used by such 
                individual; or
                    ``(B) in the case of a child or youth, the 
                language normally used by the parents of the 
                child or youth.
            ``(12) Paraprofessional.--The term 
        `paraprofessional' means an individual who is employed 
        in a preschool, elementary school, or secondary school 
        under the supervision of a certified or licensed 
        teacher, including individuals employed in language 
        instruction educational programs, special education, 
        and migrant education.
            ``(13) Specially qualified agency.--The term 
        `specially qualified agency' means an eligible entity, 
        as defined in section 3141, in a State whose State 
        educational agency--
                    ``(A) does not participate in a program 
                under subpart 1 of part A for a fiscal year; or
                    ``(B) submits a plan (or any amendment to a 
                plan) that the Secretary, after reasonable 
                notice and opportunity for a hearing, 
                determines does not satisfy the requirements of 
                such subpart.
            ``(14) State.--The term `State' means each of the 
        50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(15) Tribally sanctioned educational authority.--
        The term `tribally sanctioned educational authority' 
        means--
                    ``(A) any department or division of 
                education operating within the administrative 
                structure of the duly constituted governing 
                body of an Indian tribe; and
                    ``(B) any nonprofit institution or 
                organization that is--
                            ``(i) chartered by the governing 
                        body of an Indian tribe to operate a 
                        school described in section 3112(a) or 
                        otherwise to oversee the delivery of 
                        educational services to members of the 
                        tribe; and
                            ``(ii) approved by the Secretary 
                        for the purpose of carrying out 
                        programs under subpart 1 of part A for 
                        individuals served by a school 
                        described in section 3112(a).

``SEC. 3302. PARENTAL NOTIFICATION.

    ``(a) In General.--Each eligible entity using funds 
provided under this title to provide a language instruction 
educational program shall, not later than 30 days after the 
beginning of the school year, inform a parent or the parents of 
a limited English proficient child identified for participation 
in, or participating in, such program of--
            ``(1) the reasons for the identification of their 
        child as limited English proficient and in need of 
        placement in a language instruction educational 
        program;
            ``(2) the child's level of English proficiency, how 
        such level was assessed, and the status of the child's 
        academic achievement;
            ``(3) the method of instruction used in the program 
        in which their child is, or will be, participating, and 
        the methods of instruction used in other available 
        programs, including how such programs differ in 
        content, instruction goals, and use of English and a 
        native language in instruction;
            ``(4) how the program in which their child is, or 
        will be participating will meet the educational 
        strengths and needs of the child;
            ``(5) how such program will specifically help their 
        child learn English, and meet age appropriate academic 
        achievement standards for grade promotion and 
        graduation;
            ``(6) the specific exit requirements for such 
        program, the expected rate of transition from such 
        program into classrooms that are not tailored for 
        limited English proficient children, and the expected 
        rate of graduation from secondary school for such 
        program if funds under this title are used for children 
        in secondary schools;
            ``(7) in the case of a child with a disability, how 
        such program meets the objectives of the individualized 
        education program of the child; and
            ``(8) information pertaining to parental rights 
        that includes written guidance--
                    ``(A) detailing--
                            ``(i) the right that parents have 
                        to have their child immediately removed 
                        from such program upon their request; 
                        and
                            ``(ii) the options that parents 
                        have to decline to enroll their child 
                        in such program or to choose another 
                        program or method of instruction, if 
                        available; and
                    ``(B) assisting parents in selecting among 
                various programs and methods of instruction, if 
                more than one program or method is offered by 
                the eligible entity.
    ``(b) Separate Notification.--In addition to providing the 
information required to be provided under subsection (a), each 
eligible entity that is using funds provided under this title 
to provide a language instruction educational program, and that 
has failed to make progress on the annual measurable 
achievement objectives described in section 3122 for any fiscal 
year for which part A is in effect, shall separately inform a 
parent or the parents of a child identified for participation 
in such program, or participating in such program, of such 
failure not later than 30 days after such failure occurs.
    ``(c) Receipt of Information.--The information required to 
be provided under subsections (a) and (b) to a parent shall be 
provided in an understandable and uniform format and, to the 
extent practicable, in a language that the parent can 
understand.
    ``(d) Special Rule Applicable During School Year.--For a 
child who has not been identified for participation in a 
language instruction educational program prior to the beginning 
of the school year, the eligible entity shall carry out 
subsections (a) through (c) with respect to the parents of the 
child within 2 weeks of the child being placed in such a 
program.
    ``(e) Parental Participation.--
            ``(1) In general.--Each eligible entity using funds 
        provided under this title to provide a language 
        instruction educational program shall implement an 
        effective means of outreach to parents of limited 
        English proficient children to inform such parents of 
        how they can--
                    ``(A) be involved in the education of their 
                children; and
                    ``(B) be active participants in assisting 
                their children--
                            ``(i) to learn English;
                            ``(ii) to achieve at high levels in 
                        core academic subjects; and
                            ``(iii) to meet the same 
                        challenging State academic content and 
                        student academic achievement standards 
                        as all children are expected to meet.
            ``(2) Receipt of recommendations.--The outreach 
        described in paragraph (1) shall include holding, and 
        sending notice of opportunities for, regular meetings 
        for the purpose of formulating and responding to 
        recommendations from parents described in such 
        paragraph.
    ``(f) Basis for Admission or Exclusion.--A child shall not 
be admitted to, or excluded from, any federally assisted 
education program on the basis of a surname or language-
minority status.

``SEC. 3303. NATIONAL CLEARINGHOUSE.

    ``The Secretary shall establish and support the operation 
of a National Clearinghouse for English Language Acquisition 
and Language Instruction Educational Programs, which shall 
collect, analyze, synthesize, and disseminate information about 
language instruction educational programs for limited English 
proficient children, and related programs. The National 
Clearinghouse shall--
            ``(1) be administered as an adjunct clearinghouse 
        of the Educational Resources Information Center 
        Clearinghouses system supported by the Office of 
        Educational Research and Improvement;
            ``(2) coordinate activities with Federal data and 
        information clearinghouses and entities operating 
        Federal dissemination networks and systems;
            ``(3) develop a system for improving the operation 
        and effectiveness of federally funded language 
        instruction educational programs;
            ``(4) collect and disseminate information on--
                    ``(A) educational research and processes 
                related to the education of limited English 
                proficient children; and
                    ``(B) accountability systems that monitor 
                the academic progress of limited English 
                proficient children in language instruction 
                educational programs, including information on 
                academic content and English proficiency 
                assessments for language instruction 
                educational programs; and
            ``(5) publish, on an annual basis, a list of grant 
        recipients under this title.

``SEC. 3304. REGULATIONS.

    ``In developing regulations under this title, the Secretary 
shall consult with State educational agencies and local 
educational agencies, organizations representing limited 
English proficient individuals, and organizations representing 
teachers and other personnel involved in the education of 
limited English proficient children.''.

                     TITLE IV--21ST CENTURY SCHOOLS

SEC. 401. 21ST CENTURY SCHOOLS.

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

                    ``TITLE IV--21ST CENTURY SCHOOLS

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

``SEC. 4001. SHORT TITLE.

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

``SEC. 4002. PURPOSE.

    ``The purpose of this part is to support programs that 
prevent violence in and around schools; that prevent the 
illegal use of alcohol, tobacco, and drugs; that involve 
parents and communities; and that are coordinated with related 
Federal, State, school, and community efforts and resources to 
foster a safe and drug-free learning environment that supports 
student academic achievement, through the provision of Federal 
assistance to--
            ``(1) States for grants to local educational 
        agencies and consortia of such agencies to establish, 
        operate, and improve local programs of school drug and 
        violence prevention and early intervention;
            ``(2) States for grants to, and contracts with, 
        community-based organizations and public and private 
        entities for programs of drug and violence prevention 
        and early intervention, including community-wide drug 
        and violence prevention planning and organizing 
        activities;
            ``(3) States for development, training, technical 
        assistance, and coordination activities; and
            ``(4) public and private entities to provide 
        technical assistance; conduct training, demonstrations, 
        and evaluation; and to provide supplementary services 
        and community-wide drug and violence prevention 
        planning and organizing activities for the prevention 
        of drug use and violence among students and youth.

``SEC. 4003. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $650,000,000 for fiscal year 2002, and such 
        sums as may be necessary for each of the 5 succeeding 
        fiscal years, for State grants under subpart 1; and
            ``(2) such sums for fiscal year 2002, and for each 
        of the 5 succeeding fiscal years, for national programs 
        under subpart 2.

                       ``Subpart 1--State Grants

``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--
            ``(1) In general.--From the amount made available 
        under section 4003(1) to carry out this subpart for 
        each fiscal year, the Secretary--
                    ``(A) shall reserve 1 percent or $4,750,000 
                (whichever is greater) of such amount for 
                grants to Guam, American Samoa, the United 
                States Virgin Islands, and the Commonwealth of 
                the Northern Mariana Islands, to be allotted in 
                accordance with the Secretary's determination 
                of their respective needs and to carry out 
                programs described in this subpart;
                    ``(B) shall reserve 1 percent or $4,750,000 
                (whichever is greater) of such amount for the 
                Secretary of the Interior to carry out programs 
                described in this subpart for Indian youth; and
                    ``(C) shall reserve 0.2 percent of such 
                amount for Native Hawaiians to be used under 
                section 4117 to carry out programs described in 
                this subpart.
            ``(2) Other reservations.--From the amount made 
        available under section 4003(2) to carry out subpart 2 
        for each fiscal year, the Secretary--
                    ``(A) may reserve not more than $2,000,000 
                for the national impact evaluation required by 
                section 4122(a);
                    ``(B) notwithstanding section 3 of the No 
                Child Left Behind Act of 2001, shall reserve an 
                amount necessary to make continuation grants to 
                grantees under the Safe Schools/Healthy 
                Students initiative (under the same terms and 
                conditions as provided for in the grants 
                involved).
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Secretary shall, for each fiscal year, allot 
        among the States--
                    ``(A) \1/2\ of the remainder not reserved 
                under subsection (a) according to the ratio 
                between the school-aged population of each 
                State and the school-aged population of all the 
                States; and
                    ``(B) \1/2\ of such remainder according to 
                the ratio between the amount each State 
                received under section 1124A for the preceding 
                year and the sum of such amounts received by 
                all the States.
            ``(2) Minimum.--For any fiscal year, no State shall 
        be allotted under this subsection an amount that is 
        less than the greater of--
                    ``(A) \1/2\ of 1 percent of the total 
                amount allotted to all the States under this 
                subsection; or
                    ``(B) the amount such State received for 
                fiscal year 2001 under section 4111 as such 
                section was in effect the day preceding the 
                date of enactment of the No Child Left Behind 
                Act of 2001.
            ``(3) Reallotment.--
                    ``(A) Reallotment for failure to apply.--If 
                any State does not apply for an allotment under 
                this subpart for a fiscal year, the Secretary 
                shall reallot the amount of the State's 
                allotment to the remaining States in accordance 
                with this section.
                    ``(B) Reallotment of unused funds.--The 
                Secretary may reallot any amount of any 
                allotment to a State if the Secretary 
                determines that the State will be unable to use 
                such amount within 2 years of such allotment. 
                Such reallotments shall be made on the same 
                basis as allotments are made under paragraph 
                (1).
            ``(4) Definitions.--In this section the term 
        `State' means each of the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
    ``(c) Limitation.--Amounts appropriated under section 
4003(2) for a fiscal year may not be increased above the 
amounts appropriated under such section for the previous fiscal 
year unless the amounts appropriated under section 4003(1) for 
the fiscal year involved are at least 10 percent greater that 
the amounts appropriated under such section 4003(1) for the 
previous fiscal year.

``SEC. 4112. RESERVATION OF STATE FUNDS FOR SAFE AND DRUG-FREE SCHOOLS.

    ``(a) State Reservation for the Chief Executive Officer of 
a State.--
            ``(1) In general.--The chief executive officer of a 
        State may reserve not more than 20 percent of the total 
        amount allocated to a State under section 4111(b) for 
        each fiscal year to award competitive grants and 
        contracts to local educational agencies, community-
        based organizations (including community anti-drug 
        coalitions) other public entities and private 
        organizations, and consortia thereof. Such grants and 
        contracts shall be used to carry out the comprehensive 
        State plan described in section 4113(a) through 
        programs or activities that complement and support 
        activities of local educational agencies described in 
        section 4115(b). Such officer shall award grants based 
        on--
                    ``(A) the quality of the program or 
                activity proposed; and
                    ``(B) how the program or activity meets the 
                principles of effectiveness described in 
                section 4115(a).
            ``(2) Priority.--In making such grants and 
        contracts under this section, a chief executive officer 
        shall give priority to programs and activities that 
        prevent illegal drug use and violence for--
                    ``(A) children and youth who are not 
                normally served by State educational agencies 
                or local educational agencies; or
                    ``(B) populations that need special 
                services or additional resources (such as youth 
                in juvenile detention facilities, runaway or 
                homeless children and youth, pregnant and 
                parenting teenagers, and school dropouts).
            ``(3) Special consideration.--In awarding funds 
        under paragraph (1), a chief executive officer shall 
        give special consideration to grantees that pursue a 
        comprehensive approach to drug and violence prevention 
        that includes providing and incorporating mental health 
        services related to drug and violence prevention in 
        their program.
            ``(4) Peer review.--Grants or contracts awarded 
        under this section shall be subject to a peer review 
        process.
            ``(5) Use of funds.--Grants and contracts under 
        this section shall be used to implement drug and 
        violence prevention activities, including--
                    ``(A) activities that complement and 
                support local educational agency activities 
                under section 4115, including developing and 
                implementing activities to prevent and reduce 
                violence associated with prejudice and 
                intolerance;
                    ``(B) dissemination of information about 
                drug and violence prevention; and
                    ``(C) development and implementation of 
                community-wide drug and violence prevention 
                planning and organizing.
            ``(6) Administrative costs.--The chief executive 
        officer of a State may use not more than 3 percent of 
        the amount described in paragraph (1) for the 
        administrative costs incurred in carrying out the 
        duties of such officer under this section.
    ``(b) In State Distribution.--
            ``(1) In general.--A State educational agency shall 
        distribute not less than 93 percent of the amount made 
        available to the State under section 4111(b), less the 
        amount reserved under subsection (a) of this section, 
        to its local educational agencies.
            ``(2) State administration costs.--
                    ``(A) In general.--A State educational 
                agency may use not more than 3 percent of the 
                amount made available to the State under 
                section 4111(b) for each fiscal year less the 
                amount reserved under subsection (a) of this 
                section, for State educational agency 
                administrative costs, including the 
                implementation of the uniform management 
                information and reporting system as provided 
                for under subsection (c)(3).
                    ``(B) Additional amounts for the uniform 
                management information system.--In the case of 
                fiscal year 2002, a State educational agency 
                may, in addition to amounts provided for in 
                subparagraph (A), use 1 percent of the amount 
                made available to the State educational agency 
                under section 4111(b) for each fiscal year less 
                the amount reserved under subsection (a) of 
                this section, for implementation of the uniform 
                management information and reporting system as 
                provided for under subsection (c)(3).
    ``(c) State Activities.--
            ``(1) In general.--A State educational agency may 
        use not more than 5 percent of the amount made 
        available to the State under section 4111(b) for each 
        fiscal year less the amount reserved under subsection 
        (a) of this section, for activities described in this 
        subsection.
            ``(2) Activities.--A State educational agency shall 
        use the amounts described in paragraph (1), either 
        directly, or through grants and contracts, to plan, 
        develop, and implement capacity building, technical 
        assistance and training, evaluation, program 
        improvement services, and coordination activities for 
        local educational agencies, community-based 
        organizations, and other public and private entities. 
        Such uses--
                    ``(A) shall meet the principles of 
                effectiveness described in section 4115(a);
                    ``(B) shall complement and support local 
                uses of funds under section 4115(b);
                    ``(C) shall be in accordance with the 
                purposes of this part; and
                    ``(D) may include, among others 
                activities--
                            ``(i) identification, development, 
                        evaluation, and dissemination of drug 
                        and violence prevention strategies, 
                        programs, activities, and other 
                        information;
                            ``(ii) training, technical 
                        assistance, and demonstration projects 
                        to address violence that is associated 
                        with prejudice and intolerance; and
                            ``(iii) financial assistance to 
                        enhance drug and violence prevention 
                        resources available in areas that serve 
                        large numbers of low-income children, 
                        are sparsely populated, or have other 
                        special needs.
            ``(3) Uniform management information and reporting 
        system.--
                    ``(A) Information and statistics.--A State 
                shall establish a uniform management 
                information and reporting system.
                    ``(B) Uses of funds.--A State may use funds 
                described in subparagraphs (A) and (B) of 
                subsection (b)(2), either directly or through 
                grants and contracts, to implement the uniform 
                management information and reporting system 
                described in subparagraph (A), for the 
                collection of information on--
                            ``(i) truancy rates;
                            ``(ii) the frequency, seriousness, 
                        and incidence of violence and drug-
                        related offenses resulting in 
                        suspensions and expulsions in 
                        elementary schools and secondary 
                        schools in the State;
                            ``(iii) the types of curricula, 
                        programs, and services provided by the 
                        chief executive officer, the State 
                        educational agency, local educational 
                        agencies, and other recipients of funds 
                        under this subpart; and
                            ``(iv) the incidence and 
                        prevalence, age of onset, perception of 
                        health risk, and perception of social 
                        disapproval of drug use and violence by 
                        youth in schools and communities.
                    ``(C) Compilation of statistics.--In 
                compiling the statistics required for the 
                uniform management information and reporting 
                system, the offenses described in subparagraph 
                (B)(ii) shall be defined pursuant to the 
                State's criminal code, but shall not identify 
                victims of crimes or persons accused of crimes. 
                The collected data shall include incident 
                reports by school officials, anonymous student 
                surveys, and anonymous teacher surveys.
                    ``(D) Reporting.--The information described 
                under subparagraph (B) shall be reported to the 
                public and the data referenced in clauses (i) 
                and (ii) of such subparagraph shall be reported 
                to the State on a school-by-school basis.
                    ``(E) Limitation.--Nothing in this 
                subsection shall be construed to authorize the 
                Secretary to require particular policies, 
                procedures, or practices with respect to crimes 
                committed on school property or school 
                security.

``SEC. 4113. STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under 
section 4111(b) for any fiscal year, a State shall submit to 
the Secretary, at such time as the Secretary may require, an 
application that--
            ``(1) contains a comprehensive plan for the use of 
        funds by the State educational agency and the chief 
        executive officer of the State to provide safe, 
        orderly, and drug-free schools and communities through 
        programs and activities that complement and support 
        activities of local educational agencies under section 
        4115(b), that comply with the principles of 
        effectiveness under section 4115(a), and that otherwise 
        are in accordance with the purpose of this part;
            ``(2) describes how activities funded under this 
        subpart will foster a safe and drug-free learning 
        environment that supports academic achievement;
            ``(3) provides an assurance that the application 
        was developed in consultation and coordination with 
        appropriate State officials and others, including the 
        chief executive officer, the chief State school 
        officer, the head of the State alcohol and drug abuse 
        agency, the heads of the State health and mental health 
        agencies, the head of the State criminal justice 
        planning agency, the head of the State child welfare 
        agency, the head of the State board of education, or 
        their designees, and representatives of parents, 
        students, and community-based organizations;
            ``(4) describes how the State educational agency 
        will coordinate such agency's activities under this 
        subpart with the chief executive officer's drug and 
        violence prevention programs under this subpart and 
        with the prevention efforts of other State agencies and 
        other programs, as appropriate, in accordance with the 
        provisions in section 9306;
            ``(5) provides an assurance that funds reserved 
        under section 4112(a) will not duplicate the efforts of 
        the State educational agency and local educational 
        agencies with regard to the provision of school-based 
        drug and violence prevention activities and that those 
        funds will be used to serve populations not normally 
        served by the State educational agencies and local 
        educational agencies and populations that need special 
        services, such as school dropouts, suspended and 
        expelled students, youth in detention centers, runaway 
        or homeless children and youth, and pregnant and 
        parenting youth;
            ``(6) provides an assurance that the State will 
        cooperate with, and assist, the Secretary in conducting 
        data collection as required by section 4122;
            ``(7) provides an assurance that the local 
        educational agencies in the State will comply with the 
        provisions of section 9501 pertaining to the 
        participation of private school children and teachers 
        in the programs and activities under this subpart;
            ``(8) provides an assurance that funds under this 
        subpart will be used to increase the level of State, 
        local, and other non-Federal funds that would, in the 
        absence of funds under this subpart, be made available 
        for programs and activities authorized under this 
        subpart, and in no case supplant such State, local, and 
        other non-Federal funds;
            ``(9) contains the results of a needs assessment 
        conducted by the State for drug and violence prevention 
        programs, which shall be based on ongoing State 
        evaluation activities, including data on--
                    ``(A) the incidence and prevalence of 
                illegal drug use and violence among youth in 
                schools and communities, including the age of 
                onset, the perception of health risks, and the 
                perception of social disapproval among such 
                youth;
                    ``(B) the prevalence of risk factors, 
                including high or increasing rates of reported 
                cases of child abuse or domestic violence;
                    ``(C) the prevalence of protective factors, 
                buffers, or assets; and
                    ``(D) other variables in the school and 
                community identified through scientifically 
                based research;
            ``(10) provides a statement of the State's 
        performance measures for drug and violence prevention 
        programs and activities to be funded under this subpart 
        that will be focused on student behavior and attitudes, 
        derived from the needs assessment described in 
        paragraph (9), and be developed in consultation between 
        the State and local officials, and that consist of--
                    ``(A) performance indicators for drug and 
                violence prevention programs and activities; 
                and
                    ``(B) levels of performance for each 
                performance indicator;
            ``(11) describes the procedures the State will use 
        for assessing and publicly reporting progress toward 
        meeting the performance measures described in paragraph 
        (10);
            ``(12) provides an assurance that the State 
        application will be available for public review after 
        submission of the application;
            ``(13) describes the special outreach activities 
        that will be carried out by the State educational 
        agency and the chief executive officer of the State to 
        maximize the participation of community-based 
        organizations of demonstrated effectiveness that 
        provide services such as mentoring programs in low-
        income communities;
            ``(14) describes how funds will be used by the 
        State educational agency and the chief executive 
        officer of the State to support, develop, and implement 
        community-wide comprehensive drug and violence 
        prevention planning and organizing activities;
            ``(15) describes how input from parents will be 
        sought regarding the use of funds by the State 
        educational agency and the chief executive officer of 
        the State;
            ``(16) describes how the State educational agency 
        will review applications from local educational 
        agencies, including how the agency will receive input 
        from parents in such review;
            ``(17) describes how the State educational agency 
        will monitor the implementation of activities under 
        this subpart, and provide technical assistance for 
        local educational agencies, community-based 
        organizations, other public entities, and private 
        organizations;
            ``(18) describes how the chief executive officer of 
        the State will award funds under section 4112(a) and 
        implement a plan for monitoring the performance of, and 
        providing technical assistance to, recipients of such 
        funds; and
            ``(19) includes any other information the Secretary 
        may require.
    ``(b) Interim Application.--
            ``(1) Authority.--Notwithstanding any other 
        provision of this section, a State may submit for 
        fiscal year 2002 a 1-year interim application and plan 
        for the use of funds under this subpart that is 
        consistent with the requirements of this section and 
        contains such information as the Secretary may specify 
        in regulations.
            ``(2) Purpose.--The purpose of such interim 
        application and plan shall be to afford the State the 
        opportunity to fully develop and review such State's 
        application and comprehensive plan otherwise required 
        by this section.
            ``(3) Exception.--A State may not receive a grant 
        under this subpart for a fiscal year after fiscal year 
        2002 unless the Secretary has approved such State's 
        application and comprehensive plan as described in 
        subsection (a).
    ``(c) Approval Process.--
            ``(1) Deemed approval.--An application submitted by 
        a State pursuant to this section shall undergo peer 
        review by the Secretary and shall be deemed to be 
        approved by the Secretary unless the Secretary makes a 
        written determination, prior to the expiration of the 
        120-day period beginning on the date on which the 
        Secretary received the application, that the 
        application is not in compliance with this subpart.
            ``(2) Disapproval.--The Secretary shall not finally 
        disapprove the application, except after giving the 
        State educational agency and the chief executive 
        officer of the State notice and an opportunity for a 
        hearing.
            ``(3) Notification.--If the Secretary finds that 
        the application is not in compliance, in whole or in 
        part, with this subpart, the Secretary shall--
                    ``(A) give the State educational agency and 
                the chief executive officer of the State notice 
                and an opportunity for a hearing; and
                    ``(B) notify the State educational agency 
                and the chief executive officer of the State of 
                the finding of noncompliance, and in such 
                notification, shall--
                            ``(i) cite the specific provisions 
                        in the application that are not in 
                        compliance; and
                            ``(ii) request additional 
                        information, only as to the 
                        noncompliant provisions, needed to make 
                        the application compliant.
            ``(4) Response.--If the State educational agency 
        and the chief executive officer of the State respond to 
        the Secretary's notification described in paragraph 
        (3)(B) during the 45-day period beginning on the date 
        on which the agency received the notification, and 
        resubmit the application with the requested information 
        described in paragraph (3)(B)(ii), the Secretary shall 
        approve or disapprove such application prior to the 
        later of--
                    ``(A) the expiration of the 45-day period 
                beginning on the date on which the application 
                is resubmitted; or
                    ``(B) the expiration of the 120-day period 
                described in paragraph (1).
            ``(5) Failure to respond.--If the State educational 
        agency and the chief executive officer of the State do 
        not respond to the Secretary's notification described 
        in paragraph (3)(B) during the 45-day period beginning 
        on the date on which the agency received the 
        notification, such application shall be deemed to be 
        disapproved.

``SEC. 4114. LOCAL EDUCATIONAL AGENCY PROGRAM.

    ``(a) In General.--
            ``(1) Funds to local educational agencies.--A State 
        shall provide the amount made available to the State 
        under this subpart, less the amounts reserved under 
        section 4112 to local educational agencies for drug and 
        violence prevention and education programs and 
        activities as follows:
                    ``(A) 60 percent of such amount based on 
                the relative amount such agencies received 
                under part A of title I for the preceding 
                fiscal year.
                    ``(B) 40 percent of such amount based on 
                the relative enrollments in public and private 
                nonprofit elementary schools and secondary 
                schools within the boundaries of such agencies.
            ``(2) Administrative costs.--Of the amount received 
        under paragraph (1), a local educational agency may use 
        not more than 2 percent for the administrative costs of 
        carrying out its responsibilities under this subpart.
            ``(3) Return of funds to state; reallocation.--
                    ``(A) Return.--Except as provided in 
                subparagraph (B), upon the expiration of the 1-
                year period beginning on the date on which a 
                local educational agency receives its 
                allocation under this subpart--
                            ``(i) such agency shall return to 
                        the State educational agency any funds 
                        from such allocation that remain 
                        unobligated; and
                            ``(ii) the State educational agency 
                        shall reallocate any such amount to 
                        local educational agencies that have 
                        submitted plans for using such amount 
                        for programs or activities on a timely 
                        basis.
                    ``(B) Carryover.--In any fiscal year, a 
                local educational agency, may retain for 
                obligation in the succeeding fiscal year--
                            ``(i) an amount equal to not more 
                        than 25 percent of the allocation it 
                        received under this subpart for such 
                        fiscal year; or
                            ``(ii) upon a demonstration of good 
                        cause by such agency and approval by 
                        the State educational agency, an amount 
                        that exceeds 25 percent of such 
                        allocation.
                    ``(C) Reallocation.--If a local educational 
                agency chooses not to apply to receive the 
                amount allocated to such agency under 
                subsection (a), or if such agency's application 
                under subsection (d) is disapproved by the 
                State educational agency, the State educational 
                agency shall reallocate such amount to one or 
                more of its other local educational agencies.
    ``(b) Eligibility.--To be eligible to receive a subgrant 
under this subpart, a local educational agency desiring a 
subgrant shall submit an application to the State educational 
agency in accordance with subsection (d). Such an application 
shall be amended, as necessary, to reflect changes in the 
activities and programs of the local educational agency.
    ``(c) Development.--
            ``(1) Consultation.--
                    ``(A) In general.--A local educational 
                agency shall develop its application through 
                timely and meaningful consultation with State 
                and local government representatives, 
                representatives of schools to be served 
                (including private schools), teachers and other 
                staff, parents, students, community-based 
                organizations, and others with relevant and 
                demonstrated expertise in drug and violence 
                prevention activities (such as medical, mental 
                health, and law enforcement professionals).
                    ``(B) Continued consultation.--On an 
                ongoing basis, the local educational agency 
                shall consult with such representatives and 
                organizations in order to seek advice regarding 
                how best to coordinate such agency's activities 
                under this subpart with other related 
                strategies, programs, and activities being 
                conducted in the community.
            ``(2) Design and development.--To ensure timely and 
        meaningful consultation under paragraph (1), a local 
        educational agency at the initial stages of design and 
        development of a program or activity shall consult, in 
        accordance with this subsection, with appropriate 
        entities and persons on issues regarding the design and 
        development of the program or activity, including 
        efforts to meet the principles of effectiveness 
        described in section 4115(a).
    ``(d) Contents of Applications.--An application submitted 
by a local educational agency under this section shall 
contain--
            ``(1) an assurance that the activities or programs 
        to be funded comply with the principles of 
        effectiveness described in section 4115(a) and foster a 
        safe and drug-free learning environment that supports 
        academic achievement;
            ``(2) a detailed explanation of the local 
        educational agency's comprehensive plan for drug and 
        violence prevention, including a description of--
                    ``(A) how the plan will be coordinated with 
                programs under this Act, and other Federal, 
                State, and local programs for drug and violence 
                prevention, in accordance with section 9306;
                    ``(B) the local educational agency's 
                performance measures for drug and violence 
                prevention programs and activities, that shall 
                consist of--
                            ``(i) performance indicators for 
                        drug and violence prevention programs 
                        and activities; including--
                                    ``(I) specific reductions 
                                in the prevalence of identified 
                                risk factors; and
                                    ``(II) specific increases 
                                in the prevalence of protective 
                                factors, buffers, or assets if 
                                any have been identified; and
                            ``(ii) levels of performance for 
                        each performance indicator;
                    ``(C) how such agency will assess and 
                publicly report progress toward attaining its 
                performance measures;
                    ``(D) the drug and violence prevention 
                activity or program to be funded, including how 
                the activity or program will meet the 
                principles of effectiveness described in 
                section 4115(a), and the means of evaluating 
                such activity or program; and
                    ``(E) how the services will be targeted to 
                schools and students with the greatest need;
            ``(3) a description for how the results of the 
        evaluations of the effectiveness of the program will be 
        used to refine, improve, and strengthen the program;
            ``(4) an assurance that funds under this subpart 
        will be used to increase the level of State, local, and 
        other non-Federal funds that would, in the absence of 
        funds under this subpart, be made available for 
        programs and activities authorized under this subpart, 
        and in no case supplant such State, local, and other 
        non-Federal funds;
            ``(5) a description of the mechanisms used to 
        provide effective notice to the community of an 
        intention to submit an application under this subpart;
            ``(6) an assurance that drug and violence 
        prevention programs supported under this subpart convey 
        a clear and consistent message that acts of violence 
        and the illegal use of drugs are wrong and harmful;
            ``(7) an assurance that the applicant has, or the 
        schools to be served have, a plan for keeping schools 
        safe and drug-free that includes--
                    ``(A) appropriate and effective school 
                discipline policies that prohibit disorderly 
                conduct, the illegal possession of weapons, and 
                the illegal use, possession, distribution, and 
                sale of tobacco, alcohol, and other drugs by 
                students;
                    ``(B) security procedures at school and 
                while students are on the way to and from 
                school;
                    ``(C) prevention activities that are 
                designed to create and maintain safe, 
                disciplined, and drug-free environments;
                    ``(D) a crisis management plan for 
                responding to violent or traumatic incidents on 
                school grounds; and
                    ``(E) a code of conduct policy for all 
                students that clearly states the 
                responsibilities of students, teachers, and 
                administrators in maintaining a classroom 
                environment that--
                            ``(i) allows a teacher to 
                        communicate effectively with all 
                        students in the class;
                            ``(ii) allows all students in the 
                        class to learn;
                            ``(iii) has consequences that are 
                        fair, and developmentally appropriate;
                            ``(iv) considers the student and 
                        the circumstances of the situation; and
                            ``(v) is enforced accordingly;
            ``(8) an assurance that the application and any 
        waiver request under section 4115(a)(3) will be 
        available for public review after submission of the 
        application; and
            ``(9) such other assurances, goals, and objectives 
        identified through scientifically based research that 
        the State may reasonably require in accordance with the 
        purpose of this part.
    ``(e) Review of Application.--
            ``(1) In general.--In reviewing local applications 
        under this section, a State educational agency shall 
        use a peer review process or other methods of assuring 
        the quality of such applications.
            ``(2) Considerations.--In determining whether to 
        approve the application of a local educational agency 
        under this section, a State educational agency shall 
        consider the quality of application and the extent to 
        which the application meets the principles of 
        effectiveness described in section 4115(a).
    ``(f) Approval Process.--
            ``(1) Deemed approval.--An application submitted by 
        a local educational agency pursuant to this section 
        shall be deemed to be approved by the State educational 
        agency unless the State educational agency makes a 
        written determination, prior to the expiration of the 
        120-day period beginning on the date on which the State 
        educational agency received the application, that the 
        application is not in compliance with this subpart.
            ``(2) Disapproval.--The State educational agency 
        shall not finally disapprove the application, except 
        after giving the local educational agency notice and 
        opportunity for a hearing.
            ``(3) Notification.--If the State educational 
        agency finds that the application is not in compliance, 
        in whole or in part, with this subpart, the State 
        educational agency shall--
                    ``(A) give the local educational agency 
                notice and an opportunity for a hearing; and
                    ``(B) notify the local educational agency 
                of the finding of noncompliance, and in such 
                notification, shall--
                            ``(i) cite the specific provisions 
                        in the application that are not in 
                        compliance; and
                            ``(ii) request additional 
                        information, only as to the 
                        noncompliant provisions, needed to make 
                        the application compliant.
            ``(4) Response.--If the local educational agency 
        responds to the State educational agency's notification 
        described in paragraph (3)(B) during the 45-day period 
        beginning on the date on which the agency received the 
        notification, and resubmits the application with the 
        requested information described in paragraph 
        (3)(B)(ii), the State educational agency shall approve 
        or disapprove such application prior to the later of--
                    ``(A) the expiration of the 45-day period 
                beginning on the date on which the application 
                is resubmitted; or
                    ``(B) the expiration of the 120-day period 
                described in paragraph (1).
            ``(5) Failure to respond.--If the local educational 
        agency does not respond to the State educational 
        agency's notification described in paragraph (3)(B) 
        during the 45-day period beginning on the date on which 
        the agency received the notification, such application 
        shall be deemed to be disapproved.

``SEC. 4115. AUTHORIZED ACTIVITIES.

    ``(a) Principles of Effectiveness.--
            ``(1) In general.--For a program or activity 
        developed pursuant to this subpart to meet the 
        principles of effectiveness, such program or activity 
        shall--
                    ``(A) be based on an assessment of 
                objective data regarding the incidence of 
                violence and illegal drug use in the elementary 
                schools and secondary schools and communities 
                to be served, including an objective analysis 
                of the current conditions and consequences 
                regarding violence and illegal drug use, 
                including delinquency and serious discipline 
                problems, among students who attend such 
                schools (including private school students who 
                participate in the drug and violence prevention 
                program) that is based on ongoing local 
                assessment or evaluation activities;
                    ``(B) be based on an established set of 
                performance measures aimed at ensuring that the 
                elementary schools and secondary schools and 
                communities to be served by the program have a 
                safe, orderly, and drug-free learning 
                environment;
                    ``(C) be based on scientifically based 
                research that provides evidence that the 
                program to be used will reduce violence and 
                illegal drug use;
                    ``(D) be based on an analysis of the data 
                reasonably available at the time, of the 
                prevalence of risk factors, including high or 
                increasing rates of reported cases of child 
                abuse and domestic violence; protective 
                factors, buffers, assets; or other variables in 
                schools and communities in the State identified 
                through scientifically based research; and
                    ``(E) include meaningful and ongoing 
                consultation with and input from parents in the 
                development of the application and 
                administration of the program or activity.
            ``(2) Periodic evaluation.--
                    ``(A) Requirement.--The program or activity 
                shall undergo a periodic evaluation to assess 
                its progress toward reducing violence and 
                illegal drug use in schools to be served based 
                on performance measures described in section 
                4114(d)(2)(B).
                    ``(B) Use of results.--The results shall be 
                used to refine, improve, and strengthen the 
                program, and to refine the performance 
                measures, and shall also be made available to 
                the public upon request, with public notice of 
                such availability provided.
            ``(3) Waiver.--A local educational agency may apply 
        to the State for a waiver of the requirement of 
        subsection (a)(1)(C) to allow innovative activities or 
        programs that demonstrate substantial likelihood of 
        success.
    ``(b) Local Educational Agency Activities.--
            ``(1) Program requirements.--A local educational 
        agency shall use funds made available under section 
        4114 to develop, implement, and evaluate comprehensive 
        programs and activities, which are coordinated with 
        other school and community-based services and programs, 
        that shall--
                    ``(A) foster a safe and drug-free learning 
                environment that supports academic achievement;
                    ``(B) be consistent with the principles of 
                effectiveness described in subsection (a)(1);
                    ``(C) be designed to--
                            ``(i) prevent or reduce violence; 
                        the use, possession and distribution of 
                        illegal drugs; and delinquency; and
                            ``(ii) create a well disciplined 
                        environment conducive to learning, 
                        which includes consultation between 
                        teachers, principals, and other school 
                        personnel to identify early warning 
                        signs of drug use and violence and to 
                        provide behavioral interventions as 
                        part of classroom management efforts; 
                        and
                    ``(D) include activities to--
                            ``(i) promote the involvement of 
                        parents in the activity or program;
                            ``(ii) promote coordination with 
                        community groups and coalitions, and 
                        government agencies; and
                            ``(iii) distribute information 
                        about the local educational agency's 
                        needs, goals, and programs under this 
                        subpart.
            ``(2) Authorized activities.--Each local 
        educational agency, or consortium of such agencies, 
        that receives a subgrant under this subpart may use 
        such funds to carry out activities that comply with the 
        principles of effectiveness described in subsection 
        (a), such as the following:
                    ``(A) Age appropriate and developmentally 
                based activities that--
                            ``(i) address the consequences of 
                        violence and the illegal use of drugs, 
                        as appropriate;
                            ``(ii) promote a sense of 
                        individual responsibility;
                            ``(iii) teach students that most 
                        people do not illegally use drugs;
                            ``(iv) teach students to recognize 
                        social and peer pressure to use drugs 
                        illegally and the skills for resisting 
                        illegal drug use;
                            ``(v) teach students about the 
                        dangers of emerging drugs;
                            ``(vi) engage students in the 
                        learning process; and
                            ``(vii) incorporate activities in 
                        secondary schools that reinforce 
                        prevention activities implemented in 
                        elementary schools.
                    ``(B) Activities that involve families, 
                community sectors (which may include 
                appropriately trained seniors), and a variety 
                of drug and violence prevention providers in 
                setting clear expectations against violence and 
                illegal use of drugs and appropriate 
                consequences for violence and illegal use of 
                drugs.
                    ``(C) Dissemination of drug and violence 
                prevention information to schools and the 
                community.
                    ``(D) Professional development and training 
                for, and involvement of, school personnel, 
                pupil services personnel, parents, and 
                interested community members in prevention, 
                education, early identification and 
                intervention, mentoring, or rehabilitation 
                referral, as related to drug and violence 
                prevention.
                    ``(E) Drug and violence prevention 
                activities that may include the following:
                            ``(i) Community-wide planning and 
                        organizing activities to reduce 
                        violence and illegal drug use, which 
                        may include gang activity prevention.
                            ``(ii) Acquiring and installing 
                        metal detectors, electronic locks, 
                        surveillance cameras, or other related 
                        equipment and technologies.
                            ``(iii) Reporting criminal offenses 
                        committed on school property.
                            ``(iv) Developing and implementing 
                        comprehensive school security plans or 
                        obtaining technical assistance 
                        concerning such plans, which may 
                        include obtaining a security assessment 
                        or assistance from the School Security 
                        and Technology Resource Center at the 
                        Sandia National Laboratory located in 
                        Albuquerque, New Mexico.
                            ``(v) Supporting safe zones of 
                        passage activities that ensure that 
                        students travel safely to and from 
                        school, which may include bicycle and 
                        pedestrian safety programs.
                            ``(vi) The hiring and mandatory 
                        training, based on scientific research, 
                        of school security personnel (including 
                        school resource officers) who interact 
                        with students in support of youth drug 
                        and violence prevention activities 
                        under this part that are implemented in 
                        the school.
                            ``(vii) Expanded and improved 
                        school-based mental health services 
                        related to illegal drug use and 
                        violence, including early 
                        identification of violence and illegal 
                        drug use, assessment, and direct or 
                        group counseling services provided to 
                        students, parents, families, and school 
                        personnel by qualified school-based 
                        mental health service providers.
                            ``(viii) Conflict resolution 
                        programs, including peer mediation 
                        programs that educate and train peer 
                        mediators and a designated faculty 
                        supervisor, and youth anti-crime and 
                        anti-drug councils and activities.
                            ``(ix) Alternative education 
                        programs or services for violent or 
                        drug abusing students that reduce the 
                        need for suspension or expulsion or 
                        that serve students who have been 
                        suspended or expelled from the regular 
                        educational settings, including 
                        programs or services to assist students 
                        to make continued progress toward 
                        meeting the State academic achievement 
                        standards and to reenter the regular 
                        education setting.
                            ``(x) Counseling, mentoring, 
                        referral services, and other student 
                        assistance practices and programs, 
                        including assistance provided by 
                        qualified school-based mental health 
                        services providers and the training of 
                        teachers by school-based mental health 
                        services providers in appropriate 
                        identification and intervention 
                        techniques for students at risk of 
                        violent behavior and illegal use of 
                        drugs.
                            ``(xi) Programs that encourage 
                        students to seek advice from, and to 
                        confide in, a trusted adult regarding 
                        concerns about violence and illegal 
                        drug use.
                            ``(xii) Drug and violence 
                        prevention activities designed to 
                        reduce truancy.
                            ``(xiii) Age-appropriate, 
                        developmentally-based violence 
                        prevention and education programs that 
                        address victimization associated with 
                        prejudice and intolerance, and that 
                        include activities designed to help 
                        students develop a sense of individual 
                        responsibility and respect for the 
                        rights of others, and to resolve 
                        conflicts without violence.
                            ``(xiv) Consistent with the fourth 
                        amendment to the Constitution of the 
                        United States, the testing of a student 
                        for illegal drug use or the inspecting 
                        of a student's locker for weapons or 
                        illegal drugs or drug paraphernalia, 
                        including at the request of or with the 
                        consent of a parent or legal guardian 
                        of the student, if the local 
                        educational agency elects to so test or 
                        inspect.
                            ``(xv) Emergency intervention 
                        services following traumatic crisis 
                        events, such as a shooting, major 
                        accident, or a drug-related incident 
                        that have disrupted the learning 
                        environment.
                            ``(xvi) Establishing or 
                        implementing a system for transferring 
                        suspension and expulsion records, 
                        consistent with section 444 of the 
                        General Education Provisions Act (20 
                        U.S.C. 1232g), by a local educational 
                        agency to any public or private 
                        elementary school or secondary school.
                            ``(xvii) Developing and 
                        implementing character education 
                        programs, as a component of drug and 
                        violence prevention programs, that take 
                        into account the views of parents of 
                        the students for whom the program is 
                        intended and such students, such as a 
                        program described in subpart 3 of part 
                        D of title V.
                            ``(xviii) Establishing and 
                        maintaining a school safety hotline.
                            ``(xix) Community service, 
                        including community service performed 
                        by expelled students, and service-
                        learning projects.
                            ``(xx) Conducting a nationwide 
                        background check of each local 
                        educational agency employee, regardless 
                        of when hired, and prospective 
                        employees for the purpose of 
                        determining whether the employee or 
                        prospective employee has been convicted 
                        of a crime that bears upon the 
                        employee's fitness--
                                    ``(I) to be responsible for 
                                the safety or well-being of 
                                children;
                                    ``(II) to serve in the 
                                particular capacity in which 
                                the employee or prospective 
                                employee is or will be 
                                employed; or
                                    ``(III) to otherwise be 
                                employed by the local 
                                educational agency.
                            ``(xxi) Programs to train school 
                        personnel to identify warning signs of 
                        youth suicide and to create an action 
                        plan to help youth at risk of suicide.
                            ``(xxii) Programs that respond to 
                        the needs of students who are faced 
                        with domestic violence or child abuse.
                    ``(F) The evaluation of any of the 
                activities authorized under this subsection and 
                the collection of objective data used to assess 
                program needs, program implementation, or 
                program success in achieving program goals and 
                objectives.
    ``(c) Limitation.--
            ``(1) In general.--Except as provided in paragraph 
        (2), not more than 40 percent of the funds available to 
        a local educational agency under this subpart may be 
        used to carry out the activities described in clauses 
        (ii) through (vi) of subsection (b)(2)(E), of which not 
        more than 50 percent of such amount may be used to 
        carry out the activities described in clauses (ii) 
        through (v) of such subsection.
            ``(2) Exception.--A local educational agency may 
        use funds under this subpart for activities described 
        in clauses (ii) through (v) of subsection (b)(2)(E) 
        only if funding for these activities is not received 
        from other Federal agencies.
    ``(d) Rule of Construction.--Nothing in this section shall 
be construed to prohibit the use of funds under this subpart by 
any local educational agency or school for the establishment or 
implementation of a school uniform policy if such policy is 
part of the overall comprehensive drug and violence prevention 
plan of the State involved and is supported by the State's 
needs assessment and other scientifically based research 
information.

``SEC. 4116. REPORTING.

    ``(a) State Report.--
            ``(1) In general.--By December 1, 2003, and every 2 
        years thereafter, the chief executive officer of the 
        State, in cooperation with the State educational 
        agency, shall submit to the Secretary a report--
                    ``(A) on the implementation and outcomes of 
                State programs under section 4112(a)(1) and 
                section 4112(c) and local educational agency 
                programs under section 4115(b), as well as an 
                assessment of their effectiveness;
                    ``(B) on the State's progress toward 
                attaining its performance measures for drug and 
                violence prevention under section 4113(a)(10); 
                and
                    ``(C) on the State's efforts to inform 
                parents of, and include parents in, violence 
                and drug prevention efforts.
            ``(2) Special rule.--The report required by this 
        subsection shall be--
                    ``(A) in the form specified by the 
                Secretary;
                    ``(B) based on the State's ongoing 
                evaluation activities, and shall include data 
                on the incidence and prevalence, age of onset, 
                perception of health risk, and perception of 
                social disapproval of drug use and violence by 
                youth in schools and communities; and
                    ``(C) made readily available to the public.
    ``(b) Local Educational Agency Report.--
            ``(1) In general.--Each local educational agency 
        receiving funds under this subpart shall submit to the 
        State educational agency such information that the 
        State requires to complete the State report required by 
        subsection (a), including a description of how parents 
        were informed of, and participated in, violence and 
        drug prevention efforts.
            ``(2) Availability.--Information under paragraph 
        (1) shall be made readily available to the public.
            ``(3) Provision of documentation.--Not later than 
        January 1 of each year that a State is required to 
        report under subsection (a), the Secretary shall 
        provide to the State education agency all of the 
        necessary documentation required for compliance with 
        this section.

``SEC. 4117. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available 
pursuant to section 4111(a)(1)(C) to carry out this section, 
the Secretary shall make grants to or enter into cooperative 
agreements or contracts with organizations primarily serving 
and representing Native Hawaiians for the benefit of Native 
Hawaiians to plan, conduct, and administer programs, or 
portions thereof, that are authorized by and consistent with 
the provisions of this subpart.
    ``(b) Definition of Native Hawaiian.--For the purposes of 
this section, the term `Native Hawaiian' means any individual 
any of whose ancestors were natives, prior to 1778, of the area 
which now comprises the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 4121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to 
carry out this subpart under section 4003(2), the Secretary, in 
consultation with the Secretary of Health and Human Services, 
the Director of the Office of National Drug Control Policy, and 
the Attorney General, shall carry out programs to prevent the 
illegal use of drugs and violence among, and promote safety and 
discipline for, students. The Secretary shall carry out such 
programs directly, or through grants, contracts, or cooperative 
agreements with public and private entities and individuals, or 
through agreements with other Federal agencies, and shall 
coordinate such programs with other appropriate Federal 
activities. Such programs may include--
            ``(1) the development and demonstration of 
        innovative strategies for the training of school 
        personnel, parents, and members of the community for 
        drug and violence prevention activities based on State 
        and local needs;
            ``(2) the development, demonstration, 
        scientifically based evaluation, and dissemination of 
        innovative and high quality drug and violence 
        prevention programs and activities, based on State and 
        local needs, which may include--
                    ``(A) alternative education models, either 
                established within a school or separate and 
                apart from an existing school, that are 
                designed to promote drug and violence 
                prevention, reduce disruptive behavior, reduce 
                the need for repeat suspensions and expulsions, 
                enable students to meet challenging State 
                academic standards, and enable students to 
                return to the regular classroom as soon as 
                possible;
                    ``(B) community service and service-
                learning projects, designed to rebuild safe and 
                healthy neighborhoods and increase students' 
                sense of individual responsibility;
                    ``(C) video-based projects developed by 
                noncommercial telecommunications entities that 
                provide young people with models for conflict 
                resolution and responsible decisionmaking; and
                    ``(D) child abuse education and prevention 
                programs for elementary and secondary students;
            ``(3) the provision of information on drug abuse 
        education and prevention to the Secretary of Health and 
        Human Services for dissemination;
            ``(4) the provision of information on violence 
        prevention and education and school safety to the 
        Department of Justice for dissemination;
            ``(5) technical assistance to chief executive 
        officers, State agencies, local educational agencies, 
        and other recipients of funding under this part to 
        build capacity to develop and implement high-quality, 
        effective drug and violence prevention programs 
        consistent with the principles of effectiveness in 
        section 4115(a);
            ``(6) assistance to school systems that have 
        particularly severe drug and violence problems, 
        including hiring drug prevention and school safety 
        coordinators, or assistance to support appropriate 
        response efforts to crisis situations;
            ``(7) the development of education and training 
        programs, curricula, instructional materials, and 
        professional training and development for preventing 
        and reducing the incidence of crimes and conflicts 
        motivated by hate in localities most directly affected 
        by hate crimes;
            ``(8) activities in communities designated as 
        empowerment zones or enterprise communities that will 
        connect schools to community-wide efforts to reduce 
        drug and violence problems; and
            ``(9) other activities in accordance with the 
        purpose of this part, based on State and local needs.
    ``(b) Peer Review.--The Secretary shall use a peer review 
process in reviewing applications for funds under this section.

``SEC. 4122. IMPACT EVALUATION.

    ``(a) Biennial Evaluation.--The Secretary, in consultation 
with the Safe and Drug-Free Schools and Communities Advisory 
Committee described in section 4124, shall conduct an 
independent biennial evaluation of the impact of programs 
assisted under this subpart and of other recent and new 
initiatives to combat violence and illegal drug use in schools. 
The evaluation shall report on whether community and local 
educational agency programs funded under this subpart--
            ``(1) comply with the principles of effectiveness 
        described in section 4115(a);
            ``(2) have appreciably reduced the level of illegal 
        drug, alcohol and tobacco use, and school violence and 
        the illegal presence of weapons at schools; and
            ``(3) have conducted effective parent involvement 
        and training programs.
    ``(b) Data Collection.--The National Center for Education 
Statistics shall collect data, that is subject to independent 
review, to determine the incidence and prevalence of illegal 
drug use and violence in elementary schools and secondary 
schools in the States. The collected data shall include 
incident reports by schools officials, anonymous student 
surveys, and anonymous teacher surveys.
    ``(c) Biennial Report.--Not later than January 1, 2003, and 
every 2 years thereafter, the Secretary shall submit to the 
President and Congress a report on the findings of the 
evaluation conducted under subsection (a) together with the 
data collected under subsection (b) and data available from 
other sources on the incidence and prevalence, age of onset, 
perception of health risk, and perception of social disapproval 
of drug use and violence in elementary schools and secondary 
schools in the States. The Secretary shall include data 
submitted by the States pursuant to subsection 4116(a).

``SEC. 4123. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to 
carry out this subpart under section 4003(2) the Secretary may 
make grants to local educational agencies and community-based 
organizations for the purpose of providing assistance to 
localities most directly affected by hate crimes.
    ``(b) Use of Funds.--
            ``(1) Program development.--Grants under this 
        section may be used to improve elementary and secondary 
        educational efforts, including--
                    ``(A) development of education and training 
                programs designed to prevent and to reduce the 
                incidence of crimes and conflicts motivated by 
                hate;
                    ``(B) development of curricula for the 
                purpose of improving conflict or dispute 
                resolution skills of students, teachers, and 
                administrators;
                    ``(C) development and acquisition of 
                equipment and instructional materials to meet 
                the needs of, or otherwise be part of, hate 
                crime or conflict programs; and
                    ``(D) professional training and development 
                for teachers and administrators on the causes, 
                effects, and resolutions of hate crimes or 
                hate-based conflicts.
            ``(2) Application.--In order to be eligible to 
        receive a grant under this section for any fiscal year, 
        a local educational agency, or a local educational 
        agency in conjunction with a community-based 
        organization, shall submit an application to the 
        Secretary in such form and containing such information 
        as the Secretary may reasonably require.
            ``(3) Requirements.--Each application under 
        paragraph (2) shall include--
                    ``(A) a request for funds for the purpose 
                described in this section;
                    ``(B) a description of the schools and 
                communities to be served by the grants; and
                    ``(C) assurances that Federal funds 
                received under this section shall be used to 
                supplement, and not supplant, non-Federal 
                funds.
            ``(4) Comprehensive plan.--Each application shall 
        include a comprehensive plan that contains--
                    ``(A) a description of the hate crime or 
                conflict problems within the schools or the 
                community targeted for assistance;
                    ``(B) a description of the program to be 
                developed or augmented by such Federal and 
                matching funds;
                    ``(C) assurances that such program or 
                activity shall be administered by or under the 
                supervision of the applicant;
                    ``(D) procedures for the proper and 
                efficient administration of such program; and
                    ``(E) fiscal control and fund accounting 
                procedures as may be necessary to ensure 
                prudent use, proper disbursement, and accurate 
                accounting of funds received under this 
                section.
    ``(c) Award of Grants.--
            ``(1) Selection of recipients.--The Secretary shall 
        consider the incidence of crimes and conflicts 
        motivated by bias in the targeted schools and 
        communities in awarding grants under this section.
            ``(2) Geographic distribution.--The Secretary shall 
        attempt, to the extent practicable, to achieve an 
        equitable geographic distribution of grant awards.
            ``(3) Dissemination of information.--The Secretary 
        shall attempt, to the extent practicable, to make 
        available information regarding successful hate crime 
        prevention programs, including programs established or 
        expanded with grants under this section.
    ``(d) Reports.--The Secretary shall submit to Congress a 
report every 2 years that shall contain a detailed statement 
regarding grants and awards, activities of grant recipients, 
and an evaluation of programs established under this section.

``SEC. 4124. SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES ADVISORY 
                    COMMITTEE.

    ``(a) Establishment.--
            ``(1) In general.--There is hereby established an 
        advisory committee to be known as the `Safe and Drug 
        Free Schools and Communities Advisory Committee' 
        (referred to in this section as the `Advisory 
        Committee') to--
                    ``(A) consult with the Secretary under 
                subsection (b);
                    ``(B) coordinate Federal school- and 
                community-based substance abuse and violence 
                prevention programs and reduce duplicative 
                research or services;
                    ``(C) develop core data sets and evaluation 
                protocols for safe and drug-free school- and 
                community-based programs;
                    ``(D) provide technical assistance and 
                training for safe and drug-free school- and 
                community-based programs;
                    ``(E) provide for the diffusion of 
                scientifically based research to safe and drug-
                free school- and community-based programs; and
                    ``(F) review other regulations and 
                standards developed under this title.
            ``(2) Composition.--The Advisory Committee shall be 
        composed of representatives from--
                    ``(A) the Department of Education;
                    ``(B) the Centers for Disease Control and 
                Prevention;
                    ``(C) the National Institute on Drug Abuse;
                    ``(D) the National Institute on Alcoholism 
                and Alcohol Abuse;
                    ``(E) the Center for Substance Abuse 
                Prevention;
                    ``(F) the Center for Mental Health 
                Services;
                    ``(G) the Office of Juvenile Justice and 
                Delinquency Prevention;
                    ``(H) the Office of National Drug Control 
                Policy;
                    ``(I) State and local governments, 
                including education agencies; and
                    ``(J) researchers and expert practitioners.
            ``(3) Consultation.--In carrying out its duties 
        under this section, the Advisory Committee shall 
        annually consult with interested State and local 
        coordinators of school- and community-based substance 
        abuse and violence prevention programs and other 
        interested groups.
    ``(b) Programs.--
            ``(1) In general.--From amounts made available 
        under section 4003(2) to carry out this subpart, the 
        Secretary, in consultation with the Advisory Committee, 
        shall carry out scientifically based research programs 
        to strengthen the accountability and effectiveness of 
        the State, chief executive officer's, and national 
        programs under this part.
            ``(2) Grants, contracts or cooperative 
        agreements.--The Secretary shall carry out paragraph 
        (1) directly or through grants, contracts, or 
        cooperative agreements with public and private entities 
        and individuals or through agreements with other 
        Federal agencies.
            ``(3) Coordination.--The Secretary shall coordinate 
        programs under this section with other appropriate 
        Federal activities.
            ``(4) Activities.--Activities that may be carried 
        out under programs funded under this section may 
        include--
                    ``(A) the provision of technical assistance 
                and training, in collaboration with other 
                Federal agencies utilizing their expertise and 
                national and regional training systems, for 
                Governors, State educational agencies and local 
                educational agencies to support high quality, 
                effective programs that--
                            ``(i) provide a thorough assessment 
                        of the substance abuse and violence 
                        problem;
                            ``(ii) utilize objective data and 
                        the knowledge of a wide range of 
                        community members;
                            ``(iii) develop measurable goals 
                        and objectives; and
                            ``(iv) implement scientifically 
                        based research activities that have 
                        been shown to be effective and that 
                        meet identified needs;
                    ``(B) the provision of technical assistance 
                and training to foster program accountability;
                    ``(C) the diffusion and dissemination of 
                best practices and programs;
                    ``(D) the development of core data sets and 
                evaluation tools;
                    ``(E) program evaluations;
                    ``(F) the provision of information on drug 
                abuse education and prevention to the Secretary 
                of Health and Human Services for dissemination 
                by the clearinghouse for alcohol and drug abuse 
                information established under section 
                501(d)(16) of the Public Health Service Act; 
                and
                    ``(G) other activities that meet unmet 
                needs related to the purpose of this part and 
                that are undertaken in consultation with the 
                Advisory Committee.

``SEC. 4125. NATIONAL COORDINATOR PROGRAM.

    ``(a) In General.--From funds made available to carry out 
this subpart under section 4003(2), the Secretary may provide 
for the establishment of a National Coordinator Program under 
which the Secretary shall award grants to local educational 
agencies for the hiring of drug prevention and school safety 
program coordinators.
    ``(b) Use of Funds.--Amounts received under a grant under 
subsection (a) shall be used by local educational agencies to 
recruit, hire, and train individuals to serve as drug 
prevention and school safety program coordinators in schools 
with significant drug and school safety problems. Such 
coordinators shall be responsible for developing, conducting, 
and analyzing assessments of drug and crime problems at their 
schools, and administering the safe and drug-free grant program 
at such schools.

``SEC. 4126. COMMUNITY SERVICE GRANT PROGRAM.

    ``(a) In General.--From funds made available to carry out 
this subpart under section 4003(2), the Secretary may make 
grants to States to carry out programs under which students 
expelled or suspended from school are required to perform 
community service.
    ``(b) Allocation.--From the amount described in subsection 
(a), the Secretary shall allocate among the States--
            ``(1) \1/2\ according to the ratio between the 
        school-aged population of each State and the school-
        aged population of all the States; and
            ``(2) \1/2\ according to the ratio between the 
        amount each State received under section 1124A for the 
        preceding year and the sum of such amounts received by 
        all the States.
    ``(c) Minimum.--For any fiscal year, no State shall be 
allotted under this section an amount that is less than \1/2\ 
of 1 percent of the total amount allotted to all the States 
under this section.
    ``(d) Reallotment.--The Secretary may reallot any amount of 
any allotment to a State if the Secretary determines that the 
State will be unable to use such amount within 2 years of such 
allotment. Such reallotments shall be made on the same basis as 
allotments are made under subsection (b).
    ``(e) Definition.--In this section, the term `State' means 
each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.

``SEC. 4127. SCHOOL SECURITY TECHNOLOGY AND RESOURCE CENTER.

    ``(a) Center.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary, the Attorney 
General, and the Secretary of Energy may enter into an 
agreement for the establishment at the Sandia National 
Laboratories, in partnership with the National Law Enforcement 
and Corrections Technology Center--Southeast and the National 
Center for Rural Law Enforcement in Little Rock, Arkansas, of a 
center to be known as the `School Security Technology and 
Resource Center' (hereinafter in this section `the Center').
    ``(b) Administration.--The Center established under 
subsection (a) shall be administered by the Attorney General.
    ``(c) Functions.--The center established under subsection 
(a) shall be a resource to local educational agencies for 
school security assessments, security technology development, 
evaluation and implementation, and technical assistance 
relating to improving school security. The Center will also 
conduct and publish school violence research, coalesce data 
from victim communities, and monitor and report on schools that 
implement school security strategies.

``SEC. 4128. NATIONAL CENTER FOR SCHOOL AND YOUTH SAFETY.

    ``(a) Establishment.--From funds made available to carry 
out this subpart under section 4003(2), the Secretary of 
Education and the Attorney General may jointly establish a 
National Center for School and Youth Safety (in this section 
referred to as the `Center'). The Secretary of Education and 
the Attorney General may establish the Center at an existing 
facility, if the facility has a history of performing two or 
more of the duties described in subsection (b). The Secretary 
of Education and the Attorney General shall jointly appoint a 
Director of the Center to oversee the operation of the Center.
    ``(b) Duties.--The Center shall carry out emergency 
response, anonymous student hotline, consultation, and 
information and outreach activities with respect to elementary 
and secondary school safety, including the following:
            ``(1) Emergency response.--The staff of the Center, 
        and such temporary contract employees as the Director 
        of the Center shall determine necessary, shall offer 
        emergency assistance to local communities to respond to 
        school safety crises. Such assistance shall include 
        counseling for victims and the community, assistance to 
        law enforcement to address short-term security 
        concerns, and advice on how to enhance school safety, 
        prevent future incidents, and respond to future 
        incidents.
            ``(2) Anonymous student hotline.--The Center shall 
        establish a toll-free telephone number for students to 
        report criminal activity, threats of criminal activity, 
        and other high-risk behaviors such as substance abuse, 
        gang or cult affiliation, depression, or other warning 
        signs of potentially violent behavior. The Center shall 
        relay the reports, without attribution, to local law 
        enforcement or appropriate school hotlines. The 
        Director of the Center shall work with the Attorney 
        General to establish guidelines for Center staff to 
        work with law enforcement around the Nation to relay 
        information reported through the hotline.
            ``(3) Consultation.--The Center shall establish a 
        toll-free number for the public to contact staff of the 
        Center for consultation regarding school safety. The 
        Director of the Center shall hire administrative staff 
        and individuals with expertise in enhancing school 
        safety, including individuals with backgrounds in 
        counseling and psychology, education, law enforcement 
        and criminal justice, and community development to 
        assist in the consultation.
            ``(4) Information and outreach.--The Center shall 
        compile information about the best practices in school 
        violence prevention, intervention, and crisis 
        management, and shall serve as a clearinghouse for 
        model school safety program information. The staff of 
        the Center shall work to ensure local governments, 
        school officials, parents, students, and law 
        enforcement officials and agencies are aware of the 
        resources, grants, and expertise available to enhance 
        school safety and prevent school crime. The staff of 
        the Center shall give special attention to providing 
        outreach to rural and impoverished communities.

``SEC. 4129. GRANTS TO REDUCE ALCOHOL ABUSE.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator of the Substance Abuse and Mental Health Services 
Administration, may award grants from funds made available to 
carry out this subpart under section 4003(2), on a competitive 
basis, to local educational agencies to enable such agencies to 
develop and implement innovative and effective programs to 
reduce alcohol abuse in secondary schools.
    ``(b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a local educational agency shall prepare and 
submit to the Secretary an application at such time, in such 
manner, and containing such information as the Secretary may 
require, including--
            ``(1) a description of the activities to be carried 
        out under the grant;
            ``(2) an assurance that such activities will 
        include 1 or more of the proven strategies for reducing 
        underage alcohol abuse as determined by the Substance 
        Abuse and Mental Health Services Administration;
            ``(3) an explanation of how activities to be 
        carried under the grant that are not described in 
        paragraph (2) will be effective in reducing underage 
        alcohol abuse, including references to the past 
        effectiveness of such activities;
            ``(4) an assurance that the applicant will submit 
        to the Secretary an annual report concerning the 
        effectiveness of the programs and activities funded 
        under the grant; and
            ``(5) such other information as the Secretary 
        determines appropriate.
    ``(c) Streamlining of Process for Low-Income and Rural 
LEAs.--The Secretary, in consultation with the Administrator of 
the Substance Abuse and Mental Health Services Administration, 
shall develop procedures to make the application process for 
grants under this section more user-friendly, particularly for 
low-income and rural local educational agencies.
    ``(d) Reservations.--
            ``(1) Samhsa.--The Secretary may reserve 20 percent 
        of any amount used to carry out this section to enable 
        the Administrator of the Substance Abuse and Mental 
        Health Services Administration to provide alcohol abuse 
        resources and start-up assistance to local educational 
        agencies receiving grants under this section.
            ``(2) Low-income and rural areas.--The Secretary 
        may reserve 25 percent of any amount used to carry out 
        this section to award grants to low-income and rural 
        local educational agencies.

``SEC. 4130. MENTORING PROGRAMS.

    ``(a) Purpose; Definitions.--
            ``(1) Purpose.--The purpose of this section is to 
        make assistance available to promote mentoring programs 
        for children with greatest need--
                    ``(A) to assist such children in receiving 
                support and guidance from a mentor;
                    ``(B) to improve the academic achievement 
                of such children;
                    ``(C) to improve interpersonal 
                relationships between such children and their 
                peers, teachers, other adults, and family 
                members;
                    ``(D) to reduce the dropout rate of such 
                children; and
                    ``(E) to reduce juvenile delinquency and 
                involvement in gangs by such children.
            ``(2) Definitions.--In this part:
                    ``(A) Child with greatest need.--The term 
                `child with greatest need' means a child who is 
                at risk of educational failure, dropping out of 
                school, or involvement in criminal or 
                delinquent activities, or who lacks strong 
                positive role models.
                    ``(B) Eligible entity.--The term `eligible 
                entity' means--
                            ``(i) a local educational agency;
                            ``(ii) a nonprofit, community-based 
                        organization; or
                            ``(iii) a partnership between a 
                        local educational agency and a 
                        nonprofit, community-based 
                        organization.
                    ``(C) Mentor.--The term `mentor' means a 
                responsible adult, a postsecondary school 
                student, or a secondary school student who 
                works with a child--
                            ``(i) to provide a positive role 
                        model for the child;
                            ``(ii) to establish a supportive 
                        relationship with the child; and
                            ``(iii) to provide the child with 
                        academic assistance and exposure to new 
                        experiences and examples of opportunity 
                        that enhance the ability of the child 
                        to become a responsible adult.
                    ``(D) State.--The term `State' means each 
                of the several States, the District of 
                Columbia, the Commonwealth of Puerto Rico, the 
                United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern 
                Mariana Islands.
    ``(b) Grant Program.--
            ``(1) In general.--The Secretary may award grants 
        from funds made available to carry out this subpart 
        under section 4003(2) to eligible entities to assist 
        such entities in establishing and supporting mentoring 
        programs and activities for children with greatest need 
        that--
                    ``(A) are designed to link such children 
                (particularly children living in rural areas, 
                high-crime areas, or troubled home 
                environments, or children experiencing 
                educational failure) with mentors who--
                            ``(i) have received training and 
                        support in mentoring;
                            ``(ii) have been screened using 
                        appropriate reference checks, child and 
                        domestic abuse record checks, and 
                        criminal background checks; and
                            ``(iii) are interested in working 
                        with children with greatest need; and
                    ``(B) are intended to achieve 1 or more of 
                the following goals with respect to children 
                with greatest need:
                            ``(i) Provide general guidance.
                            ``(ii) Promote personal and social 
                        responsibility.
                            ``(iii) Increase participation in, 
                        and enhance the ability to benefit 
                        from, elementary and secondary 
                        education.
                            ``(iv) Discourage illegal use of 
                        drugs and alcohol, violence, use of 
                        dangerous weapons, promiscuous 
                        behavior, and other criminal, harmful, 
                        or potentially harmful activity.
                            ``(v) Encourage participation in 
                        community service and community 
                        activities.
                            ``(vi) Encourage setting goals and 
                        planning for the future, including 
                        encouragement of graduation from 
                        secondary school and planning for 
                        postsecondary education or training.
                            ``(viii) Discourage involvement in 
                        gangs.
            ``(2) Use of funds.--
                    ``(A) In general.--Each eligible entity 
                awarded a grant under this subsection shall use 
                the grant funds for activities that establish 
                or implement a mentoring program, that may 
                include--
                            ``(i) hiring of mentoring 
                        coordinators and support staff;
                            ``(ii) providing for the 
                        professional development of mentoring 
                        coordinators and support staff;
                            ``(iii) recruitment, screening, and 
                        training of mentors;
                            ``(iv) reimbursement to schools, if 
                        appropriate, for the use of school 
                        materials or supplies in carrying out 
                        the mentoring program;
                            ``(v) dissemination of outreach 
                        materials;
                            ``(vi) evaluation of the mentoring 
                        program using scientifically based 
                        methods; and
                            ``(vii) such other activities as 
                        the Secretary may reasonably prescribe 
                        by rule.
                    ``(B) Prohibited uses.--Notwithstanding 
                subparagraph (A), an eligible entity awarded a 
                grant under this section may not use the grant 
                funds--
                            ``(i) to directly compensate 
                        mentors;
                            ``(ii) to obtain educational or 
                        other materials or equipment that would 
                        otherwise be used in the ordinary 
                        course of the eligible entity's 
                        operations;
                            ``(iii) to support litigation of 
                        any kind; or
                            ``(iv) for any other purpose 
                        reasonably prohibited by the Secretary 
                        by rule.
            ``(3) Availability of funds.--Funds made available 
        through a grant under this section shall be available 
        for obligation for a period not to exceed 3 years.
            ``(4) Application.--Each eligible entity seeking a 
        grant under this section shall submit to the Secretary 
        an application that includes--
                    ``(A) a description of the plan for the 
                mentoring program the eligible entity proposes 
                to carry out with such grant;
                    ``(B) information on the children expected 
                to be served by the mentoring program for which 
                such grant is sought;
                    ``(C) a description of the mechanism the 
                eligible entity will use to match children with 
                mentors based on the needs of the children;
                    ``(D) an assurance that no mentor will be 
                assigned to mentor so many children that the 
                assignment will undermine the mentor's ability 
                to be an effective mentor or the mentor's 
                ability to establish a close relationship (a 
                one-to-one relationship, where practicable) 
                with each mentored child;
                    ``(E) an assurance that the mentoring 
                program will provide children with a variety of 
                experiences and support, including--
                            ``(i) emotional support;
                            ``(ii) academic assistance; and
                            ``(iii) exposure to experiences 
                        that the children might not otherwise 
                        encounter on their own;
                    ``(F) an assurance that the mentoring 
                program will be monitored to ensure that each 
                child assigned a mentor benefits from that 
                assignment and that the child will be assigned 
                a new mentor if the relationship between the 
                original mentor and the child is not beneficial 
                to the child;
                    ``(G) information regarding how mentors and 
                children will be recruited to the mentoring 
                program;
                    ``(H) information regarding how prospective 
                mentors will be screened;
                    ``(I) information on the training that will 
                be provided to mentors; and
                    ``(J) information on the system that the 
                eligible entity will use to manage and monitor 
                information relating to the mentoring 
                program's--
                            ``(i) reference checks;
                            ``(ii) child and domestic abuse 
                        record checks;
                            ``(iii) criminal background checks; 
                        and
                            ``(iv) procedure for matching 
                        children with mentors.
            ``(5) Selection.--
                    ``(A) Competitive basis.--In accordance 
                with this subsection, the Secretary shall award 
                grants to eligible entities on a competitive 
                basis.
                    ``(B) Priority.--In awarding grants under 
                subparagraph (A), the Secretary shall give 
                priority to each eligible entity that--
                            ``(i) serves children with greatest 
                        need living in rural areas, high-crime 
                        areas, or troubled home environments, 
                        or who attend schools with violence 
                        problems;
                            ``(ii) provides high quality 
                        background screening of mentors, 
                        training of mentors, and technical 
                        assistance in carrying out mentoring 
                        programs; or
                            ``(iii) proposes a school-based 
                        mentoring program.
                    ``(C) Other considerations.--In awarding 
                grants under subparagraph (A), the Secretary 
                shall also consider--
                            ``(i) the degree to which the 
                        location of the mentoring program 
                        proposed by each eligible entity 
                        contributes to a fair distribution of 
                        mentoring programs with respect to 
                        urban and rural locations;
                            ``(ii) the quality of the mentoring 
                        program proposed by each eligible 
                        entity, including--
                                    ``(I) the resources, if 
                                any, the eligible entity will 
                                dedicate to providing children 
                                with opportunities for job 
                                training or postsecondary 
                                education;
                                    ``(II) the degree to which 
                                parents, teachers, community-
                                based organizations, and the 
                                local community have 
                                participated, or will 
                                participate, in the design and 
                                implementation of the proposed 
                                mentoring program;
                                    ``(III) the degree to which 
                                the eligible entity can ensure 
                                that mentors will develop 
                                longstanding relationships with 
                                the children they mentor;
                                    ``(IV) the degree to which 
                                the mentoring program will 
                                serve children with greatest 
                                need in the 4th through 8th 
                                grades; and
                                    ``(V) the degree to which 
                                the mentoring program will 
                                continue to serve children from 
                                the 9th grade through 
                                graduation from secondary 
                                school, as needed; and
                            ``(iii) the capability of each 
                        eligible entity to effectively 
                        implement its mentoring program.
                    ``(D) Grant to each state.--Notwithstanding 
                any other provision of this subsection, in 
                awarding grants under subparagraph (A), the 
                Secretary shall select not less than 1 grant 
                recipient from each State for which there is an 
                eligible entity that submits an application of 
                sufficient quality pursuant to paragraph (4).
            ``(6) Model screening guidelines.--
                    ``(A) In general.--Based on model screening 
                guidelines developed by the Office of Juvenile 
                Programs of the Department of Justice, the 
                Secretary shall develop and distribute to each 
                eligible entity awarded a grant under this 
                section specific model guidelines for the 
                screening of mentors who seek to participate in 
                mentoring programs assisted under this section.
                    ``(B) Background checks.--The guidelines 
                developed under this subsection shall include, 
                at a minimum, a requirement that potential 
                mentors be subject to reference checks, child 
                and domestic abuse record checks, and criminal 
                background checks.

                      ``Subpart 3--Gun Possession

``SEC. 4141. GUN-FREE REQUIREMENTS.

    ``(a) Short Title.--This subpart may be cited as the ``Gun-
Free Schools Act''.
    ``(b) Requirements.--
            ``(1) In general.--Each State receiving Federal 
        funds under the No Child Left Behind Act of 2001 shall 
        have in effect a State law requiring local educational 
        agencies to expel from school for a period of not less 
        than one year a student who is determined to have 
        brought a firearm to a school, or to have possessed a 
        firearm at a school, under the jurisdiction of local 
        educational agencies in that State, except that such 
        State law shall allow the chief administering officer 
        of a local educational agency to modify such expulsion 
        requirement for a student on a case-by-case basis if 
        such modification is in writing.
            ``(2) Construction.--Nothing in this subpart shall 
        be construed to prevent a State from allowing a local 
        educational agency that has expelled a student from 
        such a student's regular school setting from providing 
        educational services to such student in an alternative 
        setting.
            ``(3) Definition.--For the purpose of this section, 
        the term `firearm' has the same meaning given such term 
        in section 921(a) of title 18, United States Code.
    ``(c) Special Rule.--The provisions of this section shall 
be construed in a manner consistent with the Individuals with 
Disabilities Education Act.
    ``(d) Report to State.--Each local educational agency 
requesting assistance from the State educational agency that is 
to be provided from funds made available to the State under the 
No Child Left Behind Act of 2001 shall provide to the State, in 
the application requesting such assistance--
            ``(1) an assurance that such local educational 
        agency is in compliance with the State law required by 
        subsection (b); and
            ``(2) a description of the circumstances 
        surrounding any expulsions imposed under the State law 
        required by subsection (b), including--
                    ``(A) the name of the school concerned;
                    ``(B) the number of students expelled from 
                such school; and
                    ``(C) the type of firearms concerned.
    ``(e) Reporting.--Each State shall report the information 
described in subsection (d) to the Secretary on an annual 
basis.
    ``(f) Definition.--For the purpose of subsection (d), the 
term `school' means any setting that is under the control and 
supervision of the local educational agency for the purpose of 
student activities approved and authorized by the local 
educational agency.
    ``(g) Exception.--Nothing in this section shall apply to a 
firearm that is lawfully stored inside a locked vehicle on 
school property, or if it is for activities approved and 
authorized by the local educational agency and the local 
educational agency adopts appropriate safeguards to ensure 
student safety.
    ``(h) Policy Regarding Criminal Justice System Referral.--
            ``(1) In general.--No funds shall be made available 
        under the No Child Left Behind Act of 2001 to any local 
        educational agency unless such agency has a policy 
        requiring referral to the criminal justice or juvenile 
        delinquency system of any student who brings a firearm 
        or weapon to a school served by such agency.
            ``(2) Definitions.--For the purpose of this 
        subsection, the terms `firearm' and `school' have the 
        same meaning given to such terms by section 921(a) of 
        title 18, United States Code.

                    ``Subpart 4--General Provisions

``SEC. 4151. DEFINITIONS.

    ``In this part:
            ``(1) Controlled substance.--The term `controlled 
        substance' means a drug or other substance identified 
        under Schedule I, II, III, IV, or V in section 202(c) 
        of the Controlled Substances Act (21 U.S.C. 812(c)).
            ``(2) Drug.--The term `drug' includes controlled 
        substances; the illegal use of alcohol and tobacco; and 
        the harmful, abusive, or addictive use of substances, 
        including inhalants and anabolic steroids.
            ``(3) Drug and violence prevention.--The term `drug 
        and violence prevention' means--
                    ``(A) with respect to drugs, prevention, 
                early intervention, rehabilitation referral, or 
                education related to the illegal use of drugs;
                    ``(B) with respect to violence, the 
                promotion of school safety, such that students 
                and school personnel are free from violent and 
                disruptive acts, including sexual harassment 
                and abuse, and victimization associated with 
                prejudice and intolerance, on school premises, 
                going to and from school, and at school-
                sponsored activities, through the creation and 
                maintenance of a school environment that is 
                free of weapons and fosters individual 
                responsibility and respect for the rights of 
                others.
            ``(4) Hate crime.--The term `hate crime' means a 
        crime as described in section 1(b) of the Hate Crime 
        Statistics Act of 1990.
            ``(5) Nonprofit.--The term `nonprofit', as applied 
        to a school, agency, organization, or institution means 
        a school, agency, organization, or institution owned 
        and operated by one or more nonprofit corporations or 
        associations, no part of the net earnings of which 
        inures, or may lawfully inure, to the benefit of any 
        private shareholder or individual.
            ``(6) Protective factor, buffer, or asset.--The 
        terms `protective factor', `buffer', and `asset' mean 
        any one of a number of the community, school, family, 
        or peer-individual domains that are known, through 
        prospective, longitudinal research efforts, or which 
        are grounded in a well-established theoretical model of 
        prevention, and have been shown to prevent alcohol, 
        tobacco, or illegal drug use, as well as violent 
        behavior, by youth in the community, and which promote 
        positive youth development.
            ``(7) Risk factor.--The term `risk factor' means 
        any one of a number of characteristics of the 
        community, school, family, or peer-individual domains 
        that are known, through prospective, longitudinal 
        research efforts, to be predictive of alcohol, tobacco, 
        and illegal drug use, as well as violent behavior, by 
        youth in the school and community.
            ``(8) School-aged population.--The term `school-
        aged population' means the population aged five through 
        17, as determined by the Secretary on the basis of the 
        most recent satisfactory data available from the 
        Department of Commerce.
            ``(9) School based mental health services 
        provider.--The term `school based mental health 
        services provider' includes a State licensed or State 
        certified school counselor, school psychologist, school 
        social worker, or other State licensed or certified 
        mental health professional qualified under State law to 
        provide such services to children and adolescents.
            ``(10) School personnel.--The term `school 
        personnel' includes teachers, principals, 
        administrators, counselors, social workers, 
        psychologists, nurses, librarians, and other support 
        staff who are employed by a school or who perform 
        services for the school on a contractual basis.
            ``(11) School resource officer.--The term `school 
        resource officer' means a career law enforcement 
        officer, with sworn authority, deployed in community 
        oriented policing, and assigned by the employing police 
        department to a local educational agency to work in 
        collaboration with schools and community based 
        organizations to--
                    ``(A) educate students in crime and illegal 
                drug use prevention and safety;
                    ``(B) develop or expand community justice 
                initiatives for students; and
                    ``(C) train students in conflict 
                resolution, restorative justice, and crime and 
                illegal drug use awareness.

``SEC. 4152. MESSAGE AND MATERIALS.

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

``SEC. 4153. PARENTAL CONSENT.

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

``SEC. 4154. PROHIBITED USES OF FUNDS.

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

``SEC. 4155. TRANSFER OF SCHOOL DISCIPLINARY RECORDS.

    ``(a) Nonapplication of Provisions.--This section shall not 
apply to any disciplinary records with respect to a suspension 
or expulsion that are transferred from a private, parochial or 
other nonpublic school, person, institution, or other entity, 
that provides education below the college level.
    ``(b) Disciplinary Records.--In accordance with the Family 
Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g), 
not later than 2 years after the date of enactment of this 
part, each State receiving Federal funds under this Act shall 
provide an assurance to the Secretary that the State has a 
procedure in place to facilitate the transfer of disciplinary 
records, with respect to a suspension or expulsion, by local 
educational agencies to any private or public elementary school 
or secondary school for any student who is enrolled or seeks, 
intends, or is instructed to enroll, on a full- or part-time 
basis, in the school.

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

``SEC. 4201. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to provide 
opportunities for communities to establish or expand activities 
in community learning centers that--
            ``(1) provide opportunities for academic 
        enrichment, including providing tutorial services to 
        help students, particularly students who attend low-
        performing schools, to meet State and local student 
        academic achievement standards in core academic 
        subjects, such as reading and mathematics;
            ``(2) offer students a broad array of additional 
        services, programs, and activities, such as youth 
        development activities, drug and violence prevention 
        programs, counseling programs, art, music, and 
        recreation programs, technology education programs, and 
        character education programs, that are designed to 
        reinforce and complement the regular academic program 
        of participating students; and
            ``(3) offer families of students served by 
        community learning centers opportunities for literacy 
        and related educational development.
    ``(b) Definitions.--In this part:
            ``(1) Community learning center.--The term 
        `community learning center' means an entity that--
                    ``(A) assists students in meeting State and 
                local academic achievement standards in core 
                academic subjects, such as reading and 
                mathematics, by providing the students with 
                opportunities for academic enrichment 
                activities and a broad array of other 
                activities (such as drug and violence 
                prevention, counseling, art, music, recreation, 
                technology, and character education programs) 
                during nonschool hours or periods when school 
                is not in session (such as before and after 
                school or during summer recess) that reinforce 
                and complement the regular academic programs of 
                the schools attended by the students served; 
                and
                    ``(B) offers families of students served by 
                such center opportunities for literacy and 
                related educational development.
            ``(2) Covered program.--The term `covered program' 
        means a program for which--
                    ``(A) the Secretary made a grant under part 
                I of title X (as such part was in effect on the 
                day before the date of enactment of the No 
                Child Left Behind Act of 2001); and
                    ``(B) the grant period had not ended on 
                that date of enactment.
            ``(3) Eligible entity.--The term `eligible entity' 
        means a local educational agency, community-based 
        organization, another public or private entity, or a 
        consortium of 2 or more of such agencies, 
        organizations, or entities.
            ``(4) State.--The term `State' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

``SEC. 4202. ALLOTMENTS TO STATES.

    ``(a) Reservation.--From the funds appropriated under 
section 4206 for any fiscal year, the Secretary shall reserve--
            ``(1) such amount as may be necessary to make 
        continuation awards to grant recipients under covered 
        programs (under the terms of those grants);
            ``(2) not more than 1 percent for national 
        activities, which the Secretary may carry out directly 
        or through grants and contracts, such as providing 
        technical assistance to eligible entities carrying out 
        programs under this part or conducting a national 
        evaluation; and
            ``(3) not more than 1 percent for payments to the 
        outlying areas and the Bureau of Indian Affairs, to be 
        allotted in accordance with their respective needs for 
        assistance under this part, as determined by the 
        Secretary, to enable the outlying areas and the Bureau 
        to carry out the purpose of this part.
    ``(b) State Allotments.--
            ``(1) Determination.--From the funds appropriated 
        under section 4206 for any fiscal year and remaining 
        after the Secretary makes reservations under subsection 
        (a), the Secretary shall allot to each State for the 
        fiscal year an amount that bears the same relationship 
        to the remainder as the amount the State received under 
        subpart 2 of part A of title I for the preceding fiscal 
        year bears to the amount all States received under that 
        subpart for the preceding fiscal year, except that no 
        State shall receive less than an amount equal to \1/2\ 
        of 1 percent of the total amount made available to all 
        States under this subsection.
            ``(2) Reallotment of unused funds.--If a State does 
        not receive an allotment under this part for a fiscal 
        year, the Secretary shall reallot the amount of the 
        State's allotment to the remaining States in accordance 
        with this section.
    ``(c) State Use of Funds.--
            ``(1) In general.--Each State that receives an 
        allotment under this part shall reserve not less than 
        95 percent of the amount allotted to such State under 
        subsection (b), for each fiscal year for awards to 
        eligible entities under section 4204.
            ``(2) State administration.--A State educational 
        agency may use not more than 2 percent of the amount 
        made available to the State under subsection (b) for--
                    ``(A) the administrative costs of carrying 
                out its responsibilities under this part;
                    ``(B) establishing and implementing a peer 
                review process for grant applications described 
                in section 4204(b) (including consultation with 
                the Governor and other State agencies 
                responsible for administering youth development 
                programs and adult learning activities); and
                    ``(C) supervising the awarding of funds to 
                eligible entities (in consultation with the 
                Governor and other State agencies responsible 
                for administering youth development programs 
                and adult learning activities).
            ``(3) State activities.--A State educational agency 
        may use not more than 3 percent of the amount made 
        available to the State under subsection (b) for the 
        following activities:
                    ``(A) Monitoring and evaluation of programs 
                and activities assisted under this part.
                    ``(B) Providing capacity building, 
                training, and technical assistance under this 
                part.
                    ``(C) Comprehensive evaluation (directly, 
                or through a grant or contract) of the 
                effectiveness of programs and activities 
                assisted under this part.
                    ``(D) Providing training and technical 
                assistance to eligible entities who are 
                applicants for or recipients of awards under 
                this part.

``SEC. 4203. STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under 
section 4202 for any fiscal year, a State shall submit to the 
Secretary, at such time as the Secretary may require, an 
application that--
            ``(1) designates the State educational agency as 
        the agency responsible for the administration and 
        supervision of programs assisted under this part;
            ``(2) describes how the State educational agency 
        will use funds received under this part, including 
        funds reserved for State-level activities;
            ``(3) contains an assurance that the State 
        educational agency will make awards under this part 
        only to eligible entities that propose to serve--
                    ``(A) students who primarily attend--
                            ``(i) schools eligible for 
                        schoolwide programs under section 1114; 
                        or
                            ``(ii) schools that serve a high 
                        percentage of students from low-income 
                        families; and
                    ``(B) the families of students described in 
                subparagraph (A);
            ``(4) describes the procedures and criteria the 
        State educational agency will use for reviewing 
        applications and awarding funds to eligible entities on 
        a competitive basis, which shall include procedures and 
        criteria that take into consideration the likelihood 
        that a proposed community learning center will help 
        participating students meet local content and student 
        academic achievement standards;
            ``(5) describes how the State educational agency 
        will ensure that awards made under this part are--
                    ``(A) of sufficient size and scope to 
                support high-quality, effective programs that 
                are consistent with the purpose of this part; 
                and
                    ``(B) in amounts that are consistent with 
                section 4204(h);
            ``(6) describes the steps the State educational 
        agency will take to ensure that programs implement 
        effective strategies, including providing ongoing 
        technical assistance and training, evaluation, and 
        dissemination of promising practices;
            ``(7) describes how programs under this part will 
        be coordinated with programs under this Act, and other 
        programs as appropriate;
            ``(8) contains an assurance that the State 
        educational agency--
                    ``(A) will make awards for programs for a 
                period of not less than 3 years and not more 
                than 5 years; and
                    ``(B) will require each eligible entity 
                seeking such an award to submit a plan 
                describing how the community learning center to 
                be funded through the award will continue after 
                funding under this part ends;
            ``(9) contains an assurance that funds appropriated 
        to carry out this part will be used to supplement, and 
        not supplant, other Federal, State, and local public 
        funds expended to provide programs and activities 
        authorized under this part and other similar programs;
            ``(10) contains an assurance that the State 
        educational agency will require eligible entities to 
        describe in their applications under section 4204(b) 
        how the transportation needs of participating students 
        will be addressed;
            ``(11) provides an assurance that the application 
        was developed in consultation and coordination with 
        appropriate State officials, including the chief State 
        school officer, and other State agencies administering 
        before and after school (or summer school) programs, 
        the heads of the State health and mental health 
        agencies or their designees, and representatives of 
        teachers, parents, students, the business community, 
        and community-based organizations;
            ``(12) describes the results of the State's needs 
        and resources assessment for before and after school 
        activities, which shall be based on the results of on-
        going State evaluation activities;
            ``(13) describes how the State educational agency 
        will evaluate the effectiveness of programs and 
        activities carried out under this part, which shall 
        include, at a minimum--
                    ``(A) a description of the performance 
                indicators and performance measures that will 
                be used to evaluate programs and activities; 
                and
                    ``(B) public dissemination of the 
                evaluations of programs and activities carried 
                out under this part; and
            ``(14) provides for timely public notice of intent 
        to file an application and an assurance that the 
        application will be available for public review after 
        submission.
    ``(b) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed 
to be approved by the Secretary unless the Secretary makes a 
written determination, prior to the expiration of the 120-day 
period beginning on the date on which the Secretary received 
the application, that the application is not in compliance with 
this part.
    ``(c) Disapproval.--The Secretary shall not finally 
disapprove the application, except after giving the State 
educational agency notice and opportunity for a hearing.
    ``(d) Notification.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with 
this part, the Secretary shall--
            ``(1) give the State educational agency notice and 
        an opportunity for a hearing; and
            ``(2) notify the State educational agency of the 
        finding of noncompliance, and, in such notification, 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to the noncompliant provisions, needed to 
                make the application compliant.
    ``(e) Response.--If the State educational agency responds 
to the Secretary's notification described in subsection (d)(2) 
during the 45-day period beginning on the date on which the 
agency received the notification, and resubmits the application 
with the requested information described in subsection 
(d)(2)(B), the Secretary shall approve or disapprove such 
application prior to the later of--
            ``(1) the expiration of the 45-day period beginning 
        on the date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period 
        described in subsection (b).
    ``(f) Failure to Respond.--If the State educational agency 
does not respond to the Secretary's notification described in 
subsection (d)(2) during the 45-day period beginning on the 
date on which the agency received the notification, such 
application shall be deemed to be disapproved.

``SEC. 4204. LOCAL COMPETITIVE GRANT PROGRAM.

    ``(a) In General.--A State that receives funds under this 
part for a fiscal year shall provide the amount made available 
under section 4202(c)(1) to eligible entities for community 
learning centers in accordance with this part.
    ``(b) Application.--
            ``(1) In general.--To be eligible to receive an 
        award under this part, an eligible entity shall submit 
        an application to the State educational agency at such 
        time, in such manner, and including such information as 
        the State educational agency may reasonably require.
            ``(2) Contents.--Each application submitted under 
        paragraph (1) shall include--
                    ``(A) a description of the before and after 
                school or summer recess activities to be 
                funded, including--
                            ``(i) an assurance that the program 
                        will take place in a safe and easily 
                        accessible facility;
                            ``(ii) a description of how 
                        students participating in the program 
                        carried out by the community learning 
                        center will travel safely to and from 
                        the center and home; and
                            ``(iii) a description of how the 
                        eligible entity will disseminate 
                        information about the community 
                        learning center (including its 
                        location) to the community in a manner 
                        that is understandable and accessible;
                    ``(B) a description of how the activity is 
                expected to improve student academic 
                achievement;
                    ``(C) an identification of Federal, State, 
                and local programs that will be combined or 
                coordinated with the proposed program to make 
                the most effective use of public resources;
                    ``(D) an assurance that the proposed 
                program was developed, and will be carried out, 
                in active collaboration with the schools the 
                students attend;
                    ``(E) a description of how the activities 
                will meet the principles of effectiveness 
                described in section 4205(b);
                    ``(F) an assurance that the program will 
                primarily target students who attend schools 
                eligible for schoolwide programs under section 
                1114 and the families of such students;
                    ``(G) an assurance that funds under this 
                part will be used to increase the level of 
                State, local, and other non-Federal funds that 
                would, in the absence of funds under this part, 
                be made available for programs and activities 
                authorized under this part, and in no case 
                supplant Federal, State, local, or non-Federal 
                funds;
                    ``(H) a description of the partnership 
                between a local educational agency, a 
                community-based organization, and another 
                public entity or private entity, if 
                appropriate;
                    ``(I) an evaluation of the community needs 
                and available resources for the community 
                learning center and a description of how the 
                program proposed to be carried out in the 
                center will address those needs (including the 
                needs of working families);
                    ``(J) a demonstration that the eligible 
                entity has experience, or promise of success, 
                in providing educational and related activities 
                that will complement and enhance the academic 
                performance, achievement, and positive youth 
                development of the students;
                    ``(K) a description of a preliminary plan 
                for how the community learning center will 
                continue after funding under this part ends;
                    ``(L) an assurance that the community will 
                be given notice of an intent to submit an 
                application and that the application and any 
                waiver request will be available for public 
                review after submission of the application;
                    ``(M) if the eligible entity plans to use 
                senior volunteers in activities carried out 
                through the community learning center, a 
                description of how the eligible entity will 
                encourage and use appropriately qualified 
                seniors to serve as the volunteers; and
                    ``(N) such other information and assurances 
                as the State educational agency may reasonably 
                require.
    ``(c) Approval of Certain Applications.--The State 
educational agency may approve an application under this part 
for a program to be located in a facility other than an 
elementary school or secondary school only if the program will 
be at least as available and accessible to the students to be 
served as if the program were located in an elementary school 
or secondary school.
    ``(d) Permissive Local Match.--
            ``(1) In general.--A State educational agency may 
        require an eligible entity to match funds awarded under 
        this part, except that such match may not exceed the 
        amount of the grant award and may not be derived from 
        other Federal or State funds.
            ``(2) Sliding scale.--The amount of a match under 
        paragraph (1) shall be established based on a sliding 
        fee scale that takes into account--
                    ``(A) the relative poverty of the 
                population to be targeted by the eligible 
                entity; and
                    ``(B) the ability of the eligible entity to 
                obtain such matching funds.
            ``(3) In-kind contributions.--Each State 
        educational agency that requires an eligible entity to 
        match funds under this subsection shall permit the 
        eligible entity to provide all or any portion of such 
        match in the form of in-kind contributions.
            ``(4) Consideration.--Notwithstanding this 
        subsection, a State educational agency shall not 
        consider an eligible entity's ability to match funds 
        when determining which eligible entities will receive 
        awards under this part.
    ``(e) Peer Review.--In reviewing local applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality of such 
applications.
    ``(f) Geographic Diversity.--To the extent practicable, a 
State educational agency shall distribute funds under this part 
equitably among geographic areas within the State, including 
urban and rural communities.
    ``(g) Duration of Awards.--Grants under this part may be 
awarded for a period of not less than 3 years and not more than 
5 years.
    ``(h) Amount of Awards.--A grant awarded under this part 
may not be made in an amount that is less than $50,000.
    ``(i) Priority.--
            ``(1) In general.--In awarding grants under this 
        part, a State educational agency shall give priority to 
        applications--
                    ``(A) proposing to target services to 
                students who attend schools that have been 
                identified as in need of improvement under 
                section 1116; and
                    ``(B) submitted jointly by eligible 
                entities consisting of not less than 1--
                            ``(i) local educational agency 
                        receiving funds under part A of title 
                        I; and
                            ``(ii) community-based organization 
                        or other public or private entity.
            ``(2) Special rule.--The State educational agency 
        shall provide the same priority under paragraph (1) to 
        an application submitted by a local educational agency 
        if the local educational agency demonstrates that it is 
        unable to partner with a community-based organization 
        in reasonable geographic proximity and of sufficient 
        quality to meet the requirements of this part.

``SEC. 4205. LOCAL ACTIVITIES.

    ``(a) Authorized Activities.--Each eligible entity that 
receives an award under this part may use the award funds to 
carry out a broad array of before and after school activities 
(including during summer recess periods) that advance student 
academic achievement, including--
            ``(1) remedial education activities and academic 
        enrichment learning programs, including providing 
        additional assistance to students to allow the students 
        to improve their academic achievement;
            ``(2) mathematics and science education activities;
            ``(3) arts and music education activities;
            ``(4) entrepreneurial education programs;
            ``(5) tutoring services (including those provided 
        by senior citizen volunteers) and mentoring programs;
            ``(6) programs that provide after school activities 
        for limited English proficient students that emphasize 
        language skills and academic achievement;
            ``(7) recreational activities;
            ``(8) telecommunications and technology education 
        programs;
            ``(9) expanded library service hours;
            ``(10) programs that promote parental involvement 
        and family literacy;
            ``(11) programs that provide assistance to students 
        who have been truant, suspended, or expelled to allow 
        the students to improve their academic achievement; and
            ``(12) drug and violence prevention programs, 
        counseling programs, and character education programs.
    ``(b) Principles of Effectiveness.--
            ``(1) In general.--For a program or activity 
        developed pursuant to this part to meet the principles 
        of effectiveness, such program or activity shall--
                    ``(A) be based upon an assessment of 
                objective data regarding the need for before 
                and after school programs (including during 
                summer recess periods) and activities in the 
                schools and communities;
                    ``(B) be based upon an established set of 
                performance measures aimed at ensuring the 
                availability of high quality academic 
                enrichment opportunities; and
                    ``(C) if appropriate, be based upon 
                scientifically based research that provides 
                evidence that the program or activity will help 
                students meet the State and local student 
                academic achievement standards.
            ``(2) Periodic evaluation.--
                    ``(A) In general.--The program or activity 
                shall undergo a periodic evaluation to assess 
                its progress toward achieving its goal of 
                providing high quality opportunities for 
                academic enrichment.
                    ``(B) Use of results.--The results of 
                evaluations under subparagraph (A) shall be--
                            ``(i) used to refine, improve, and 
                        strengthen the program or activity, and 
                        to refine the performance measures; and
                            ``(ii) made available to the public 
                        upon request, with public notice of 
                        such availability provided.

``SEC. 4206. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $1,250,000,000 for fiscal year 2002;
            ``(2) $1,500,000,000 for fiscal year 2003;
            ``(3) $1,750,000,000 for fiscal year 2004;
            ``(4) $2,000,000,000 for fiscal year 2005;
            ``(5) $2,250,000,000 for fiscal year 2006; and
            ``(6) $2,500,000,000 for fiscal year 2007.

                 ``PART C--ENVIRONMENTAL TOBACCO SMOKE

``SEC. 4301. SHORT TITLE.

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

``SEC. 4302. DEFINITIONS.

    ``As used in this part:
            ``(1) Children.--The term `children' means 
        individuals who have not attained the age of 18.
            ``(2) Children's services.--The term `children's 
        services' means the provision on a routine or regular 
        basis of health, day care, education, or library 
        services--
                    ``(A) that are funded, after the date of 
                enactment of the No Child Left Behind Act of 
                2001, directly by the Federal Government or 
                through State or local governments, by Federal 
                grant, loan, loan guarantee, or contract 
                programs--
                            ``(i) administered by either the 
                        Secretary of Health and Human Services 
                        or the Secretary of Education (other 
                        than services provided and funded 
                        solely under titles XVIII and XIX of 
                        the Social Security Act); or
                            ``(ii) administered by the 
                        Secretary of Agriculture in the case of 
                        a clinic (as defined in part 246.2 of 
                        title 7, Code of Federal Regulations 
                        (or any corresponding similar 
                        regulation or ruling)) under section 
                        17(b)(6) of the Child Nutrition Act of 
                        1966; or
                    ``(B) that are provided in indoor 
                facilities that are constructed, operated, or 
                maintained with such Federal funds, as 
                determined by the appropriate head of a Federal 
                agency in any enforcement action carried out 
                under this part,
        except that nothing in clause (ii) of subparagraph (A) 
        is intended to include facilities (other than clinics) 
        where coupons are redeemed under the Child Nutrition 
        Act of 1966.
            ``(3) Indoor facility.--The term `indoor facility' 
        means a building that is enclosed.
            ``(4) Person.--The term `person' means any State or 
        local subdivision of a State, agency of such State or 
        subdivision, corporation, or partnership that owns or 
        operates or otherwise controls and provides children's 
        services or any individual who owns or operates or 
        otherwise controls and provides such services.
            ``(5) Secretary.--The term `Secretary' means the 
        Secretary of Health and Human Services.

``SEC. 4303. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

    ``(a) Prohibition.--After the date of enactment of the No 
Child Left Behind Act of 2001, no person shall permit smoking 
within any indoor facility owned or leased or contracted for, 
and utilized, by such person for provision of routine or 
regular kindergarten, elementary, or secondary education or 
library services to children.
    ``(b) Additional Prohibition.--
            ``(1) In general.--After the date of enactment of 
        the No Child Left Behind Act of 2001, no person shall 
        permit smoking within any indoor facility (or portion 
        of such a facility) owned or leased or contracted for, 
        and utilized by, such person for the provision of 
        regular or routine health care or day care or early 
        childhood development (Head Start) services.
            ``(2) Exception.--Paragraph (1) shall not apply 
        to--
                    ``(A) any portion of such facility that is 
                used for inpatient hospital treatment of 
                individuals dependent on, or addicted to, drugs 
                or alcohol; and
                    ``(B) any private residence.
    ``(c) Federal Agencies.--
            ``(1) Kindergarten, elementary, or secondary 
        education or library services.--After the date of 
        enactment of the No Child Left Behind Act of 2001, no 
        Federal agency shall permit smoking within any indoor 
        facility in the United States operated by such agency, 
        directly or by contract, to provide routine or regular 
        kindergarten, elementary, or secondary education or 
        library services to children.
            ``(2) Health or day care or early childhood 
        development services.--
                    ``(A) In general.--After the date of 
                enactment of the No Child Left Behind Act of 
                2001, no Federal agency shall permit smoking 
                within any indoor facility (or portion of such 
                facility) operated by such agency, directly or 
                by contract, to provide routine or regular 
                health or day care or early childhood 
                development (Head Start) services to children.
                    ``(B) Exception.--Subparagraph (A) shall 
                not apply to--
                            ``(i) any portion of such facility 
                        that is used for inpatient hospital 
                        treatment of individuals dependent on, 
                        or addicted to, drugs or alcohol; and
                            ``(ii) any private residence.
            ``(3) Application of provisions.--The provisions of 
        paragraph (2) shall also apply to the provision of such 
        routine or regular kindergarten, elementary or 
        secondary education or library services in the 
        facilities described in paragraph (2) not subject to 
        paragraph (1).
    ``(d) Notice.--The prohibitions in subsections (a) through 
(c) shall be published in a notice in the Federal Register by 
the Secretary (in consultation with the heads of other affected 
agencies) and by such agency heads in funding arrangements 
involving the provision of children's services administered by 
such heads. Such prohibitions shall be effective 90 days after 
such notice is published, or 270 days after the date of 
enactment of the No Child Left Behind Act of 2001, whichever 
occurs first.
    ``(e) Civil Penalties.--
            ``(1) In general.--Any failure to comply with a 
        prohibition in this section shall be considered to be a 
        violation of this section and any person subject to 
        such prohibition who commits such violation may be 
        liable to the United States for a civil penalty in an 
        amount not to exceed $1,000 for each violation, or may 
        be subject to an administrative compliance order, or 
        both, as determined by the Secretary. Each day a 
        violation continues shall constitute a separate 
        violation. In the case of any civil penalty assessed 
        under this section, the total amount shall not exceed 
        fifty percent of the amount of Federal funds received 
        under the No Child Left Behind Act of 2001 by such 
        person for the fiscal year in which the continuing 
        violation occurred. For the purpose of the prohibition 
        in subsection (c), the term `person', as used in this 
        paragraph, shall mean the head of the applicable 
        Federal agency or the contractor of such agency 
        providing the services to children.
            ``(2) Administrative proceeding.--A civil penalty 
        may be assessed in a written notice, or an 
        administrative compliance order may be issued under 
        paragraph (1), by the Secretary only after an 
        opportunity for a hearing in accordance with section 
        554 of title 5, United States Code. Before making such 
        assessment or issuing such order, or both, the 
        Secretary shall give written notice of the assessment 
        or order to such person by certified mail with return 
        receipt and provide information in the notice of an 
        opportunity to request in writing, not later than 30 
        days after the date of receipt of such notice, such 
        hearing. The notice shall reasonably describe the 
        violation and be accompanied with the procedures for 
        such hearing and a simple form that may be used to 
        request such hearing if such person desires to use such 
        form. If a hearing is requested, the Secretary shall 
        establish by such certified notice the time and place 
        for such hearing, which shall be located, to the 
        greatest extent possible, at a location convenient to 
        such person. The Secretary (or the Secretary's 
        designee) and such person may consult to arrange a 
        suitable date and location where appropriate.
            ``(3) Circumstances affecting penalty or order.--In 
        determining the amount of the civil penalty or the 
        nature of the administrative compliance order, the 
        Secretary shall take into account, as appropriate--
                    ``(A) the nature, circumstances, extent, 
                and gravity of the violation;
                    ``(B) with respect to the violator, any 
                good faith efforts to comply, the importance of 
                achieving early and permanent compliance, the 
                ability to pay or comply, the effect of the 
                penalty or order on the ability to continue 
                operation, any prior history of the same kind 
                of violation, the degree of culpability, and 
                any demonstration of willingness to comply with 
                the prohibitions of this section in a timely 
                manner; and
                    ``(C) such other matters as justice may 
                require.
            ``(4) Modification.--The Secretary may, as 
        appropriate, compromise, modify, or remit, with or 
        without conditions, any civil penalty or administrative 
        compliance order. In the case of a civil penalty, the 
        amount, as finally determined by the Secretary or 
        agreed upon in compromise, may be deducted from any 
        sums that the United States or the agencies or 
        instrumentalities of the United States owe to the 
        person against whom the penalty is assessed.
            ``(5) Petition for review.--Any person aggrieved by 
        a penalty assessed or an order issued, or both, by the 
        Secretary under this section may file a petition for 
        judicial review of the order with the United States 
        Court of Appeals for the District of Columbia Circuit 
        or for any other circuit in which the person resides or 
        transacts business. Such person shall provide a copy of 
        the petition to the Secretary or the Secretary's 
        designee. The petition shall be filed within 30 days 
        after the Secretary's assessment or order, or both, are 
        final and have been provided to such person by 
        certified mail. The Secretary shall promptly provide to 
        the court a certified copy of the transcript of any 
        hearing held under this section and a copy of the 
        notice or order.
            ``(6) Failure to comply.--If a person fails to pay 
        an assessment of a civil penalty or comply with an 
        order, after the assessment or order, or both, are 
        final under this section, or after a court has entered 
        a final judgment under paragraph (5) in favor of the 
        Secretary, the Attorney General, at the request of the 
        Secretary, shall recover the amount of the civil 
        penalty (plus interest at prevailing rates from the day 
        the assessment or order, or both, are final) or enforce 
        the order in an action brought in the appropriate 
        district court of the United States. In such action, 
        the validity and appropriateness of the penalty or 
        order or the amount of the penalty shall not be subject 
        to review.

``SEC. 4304. PREEMPTION.

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

  TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.

    Title V (20 U.S.C. 7201 et seq.) is amended to read as 
follows:

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

                     ``PART A--INNOVATIVE PROGRAMS

``SEC. 5101. PURPOSES, STATE AND LOCAL RESPONSIBILITY.

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

                 ``Subpart 1--State and Local Programs

``SEC. 5111. ALLOTMENT TO STATES.

    ``(a) In General.--From the sums appropriated to carry out 
this part for each fiscal year and not reserved under 
subsection (b), the Secretary shall allot, and make available 
in accordance with this part, to each State educational agency 
an amount that bears the same ratio to such sums as the school-
age population of the State bears to the school-age population 
of all States, except that no State shall receive less than an 
amount equal to \1/2\ of 1 percent of such sums.
    ``(b) Reservation.--From the sums appropriated to carry out 
this part for each fiscal year, the Secretary shall reserve not 
more than 1 percent for payments to the outlying areas, to be 
allotted in accordance with their respective needs for 
assistance under this part.

``SEC. 5112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Distribution Rule.--
            ``(1) Allocation of base amounts.--From the amount 
        made available to a State educational agency under this 
        part for a fiscal year, the State educational agency 
        shall distribute, to local educational agencies within 
        the State, an amount that is not less than 85 percent 
        of the amount made available to the State educational 
        agency under this part for fiscal year 2002, according 
        to the relative enrollments in public and in private 
        nonprofit schools within the jurisdictions of such 
        local educational agencies, adjusted, in accordance 
        with criteria approved by the Secretary, to provide 
        higher per-pupil allocations to local educational 
        agencies that have the greatest numbers or percentages 
        of children whose education imposes a higher-than-
        average cost per child, such as--
                    ``(A) children living in areas with high 
                concentrations of economically disadvantaged 
                families;
                    ``(B) children from economically 
                disadvantaged families; and
                    ``(C) children living in sparsely populated 
                areas.
            ``(2) Allocation of increased amounts.--From the 
        amount made available to a State educational agency 
        under this part for a fiscal year that exceeds the 
        amount made available to the agency under this part for 
        fiscal year 2002, the State educational agency shall 
        distribute 100 percent (or, in the case of a State 
        educational agency receiving a minimum allotment under 
        section 5111(a), not less than 50 percent, 
        notwithstanding subsection (b)) to local educational 
        agencies within the State, on the same basis as the 
        State educational agency distributes amounts under 
        paragraph (1).
    ``(b) Limitations and Requirements.--Not more than 15 
percent of funds made available under section 5111 for State 
programs under this part for any fiscal year may be used for 
State administration under section 5121.
    ``(c) Calculation of Enrollments.--
            ``(1) In general.--The calculation of relative 
        enrollments under subsection (a)(1) shall be on the 
        basis of the total of--
                    ``(A) the number of children enrolled in 
                public schools; and
                    ``(B) the number of children enrolled in 
                private nonprofit schools that participated in 
                programs assisted under this part, for the 
                fiscal year preceding the fiscal year for which 
                the determination is made.
            ``(2) Rule of construction.--Nothing in this 
        subsection shall diminish the responsibility of each 
        local educational agency to contact, on an annual 
        basis, appropriate officials from private nonprofit 
        schools within the areas served by such agencies in 
        order to determine whether such schools desire that 
        their children participate in programs assisted under 
        this part.
            ``(3) Adjustments.--
                    ``(A) State criteria.--Relative enrollments 
                calculated under subsection (a)(1) shall be 
                adjusted, in accordance with criteria approved 
                by the Secretary under subparagraph (B), to 
                provide higher per-pupil allocations only to 
                local educational agencies that serve the 
                greatest numbers or percentages of--
                            ``(i) children living in areas with 
                        high concentrations of economically 
                        disadvantaged families;
                            ``(ii) children from economically 
                        disadvantaged families; or
                            ``(iii) children living in sparsely 
                        populated areas.
                    ``(B) Review of criteria.--The Secretary 
                shall review criteria submitted by a State 
                educational agency for adjusting allocations 
                under paragraph (1) and shall approve such 
                criteria only if the Secretary determines that 
                such criteria are reasonably calculated to 
                produce an adjusted allocation that reflects 
                the relative needs of the State's local 
                educational agencies based on the factors set 
                forth in subparagraph (A).
    ``(d) Payment of Allocations.--
            ``(1) Distribution.--From the funds paid to a State 
        educational agency under this subpart for a fiscal 
        year, the State educational agency shall distribute to 
        each eligible local educational agency that has 
        submitted an application as required by section 5133 
        the amount of such local educational agency's 
        allocation, as determined under subsection (a).
            ``(2) Additional funds.--
                    ``(A) Use.--Additional funds resulting from 
                higher per-pupil allocations provided to a 
                local educational agency on the basis of 
                adjusted enrollments of children described in 
                subsection (a)(1) may, in the discretion of the 
                local educational agency, be allocated for 
                expenditures to provide services for children 
                enrolled in public schools and private 
                nonprofit schools in direct proportion to the 
                number of children described in subsection 
                (a)(1) and enrolled in such schools within the 
                area served by the local educational agency.
                    ``(B) Allocation.--In any fiscal year, any 
                local educational agency that elects to 
                allocate such additional funds in the manner 
                described in subparagraph (A) shall allocate 
                all additional funds to schools within the area 
                served by the local educational agency in such 
                manner.
                    ``(C) Rule of construction.--Subparagraphs 
                (A) and (B) may not be construed to require any 
                school to limit the use of the additional funds 
                described in subparagraph (A) to the provision 
                of services to specific students or categories 
                of students.

                      ``Subpart 2--State Programs

``SEC. 5121. STATE USES OF FUNDS.

    ``A State educational agency may use funds made available 
for State use under section 5112(b) only for one or more of the 
following:
            ``(1) State administration of programs under this 
        part, including--
                    ``(A) allocating funds to local educational 
                agencies;
                    ``(B) planning, supervising, and processing 
                State educational agency funds; and
                    ``(C) monitoring and evaluating programs 
                under this part.
            ``(2) Support for the planning, design, and initial 
        implementation of charter schools as described in part 
        B.
            ``(3) Statewide education reform, school 
        improvement programs and technical assistance and 
        direct grants to local educational agencies, which 
        assist such agencies under section 5131.
            ``(4) Support for the design and implementation of 
        high-quality yearly student assessments.
            ``(5) Support for implementation of challenging 
        State and local academic achievement standards.
            ``(6) Support for arrangements that provide for 
        independent analysis to measure and report on school 
        district achievement.
            ``(7) Support for the program described in section 
        321 of the Departments of Labor, Health and Human 
        Services, and Education, and Related Agencies 
        Appropriations Act, 2001 (as enacted into law by 
        section 1(a)(1) of Public Law 106-554).
            ``(8) Support for programs to assist in the 
        implementation of the policy described in section 9507 
        which may include payment of reasonable transportation 
        costs and tuition costs for such students.

``SEC. 5122. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State that desires to 
receive assistance under this part shall submit to the 
Secretary an application that includes each of the following:
            ``(1) Designation of the State educational agency 
        as the State agency responsible for administration and 
        supervision of programs assisted under this part.
            ``(2) Provision for an annual statewide summary of 
        how assistance under this part is contributing toward 
        improving student academic achievement or improving the 
        quality of education for students.
            ``(3) Information setting forth the allocation of 
        funds required to implement section 5142.
            ``(4) A provision that the State educational agency 
        will keep such records, and provide such information to 
        the Secretary, as may be required for fiscal audit and 
        program evaluation (consistent with the 
        responsibilities of the Secretary under this section).
            ``(5) An assurance that, apart from providing 
        technical and advisory assistance and monitoring 
        compliance with this part, the State educational agency 
        has not exercised, and will not exercise, any influence 
        in the decisionmaking processes of local educational 
        agencies as to the expenditure made pursuant to an 
        application submitted under section 5133.
            ``(6) An assurance that there is compliance with 
        the specific requirements of this part.
            ``(7) Provision for timely public notice and public 
        dissemination of the information provided under 
        paragraph (3).
    ``(b) Statewide Summary.--The statewide summary referred to 
in subsection (a)(2) shall be submitted annually to the 
Secretary and shall be derived from the evaluation information 
submitted by local educational agencies to the State 
educational agency under section 5133(b)(8). The State 
educational agency shall determine the format and content of 
such summary and may include in the summary statistical 
measures, such as the number of students served by each type of 
innovative assistance program described in section 5131 and the 
number of teachers trained.
    ``(c) Period of Application.--An application submitted by 
the State educational agency under subsection (a) shall be for 
a period not to exceed 3 years. The agency may amend the 
application annually, as may be necessary to reflect changes, 
without filing a new application.
    ``(d) Audit Rule.--A local educational agency that receives 
less than an average of $10,000 under this part for any 3 
consecutive fiscal years shall not be audited more frequently 
than once every 5 years.

            ``Subpart 3--Local Innovative Education Programs

``SEC. 5131. LOCAL USES OF FUNDS.

    ``(a) Innovative Assistance Programs.--Funds made available 
to local educational agencies under section 5112 shall be used 
for innovative assistance programs, which may include any of 
the following:
            ``(1) Programs to recruit, train, and hire highly 
        qualified teachers to reduce class size, especially in 
        the early grades, and professional development 
        activities carried out in accordance with title II, 
        that give teachers, principals, and administrators the 
        knowledge and skills to provide students with the 
        opportunity to meet challenging State or local academic 
        content standards and student academic achievement 
        standards.
            ``(2) Technology activities related to the 
        implementation of school-based reform efforts, 
        including professional development to assist teachers 
        and other school personnel (including school library 
        media personnel) regarding how to use technology 
        effectively in the classrooms and the school library 
        media centers involved.
            ``(3) Programs for the development or acquisition 
        and use of instructional and educational materials, 
        including library services and materials (including 
        media materials), academic assessments, reference 
        materials, computer software and hardware for 
        instructional use, and other curricular materials that 
        are tied to high academic standards, that will be used 
        to improve student academic achievement, and that are 
        part of an overall education reform program.
            ``(4) Promising education reform projects, 
        including magnet schools.
            ``(5) Programs to improve the academic achievement 
        of educationally disadvantaged elementary school and 
        secondary school students, including activities to 
        prevent students from dropping out of school.
            ``(6) Programs to improve the literacy skills of 
        adults, especially the parents of children served by 
        the local educational agency, including adult education 
        and family literacy programs.
            ``(7) Programs to provide for the educational needs 
        of gifted and talented children.
            ``(8) The planning, design, and initial 
        implementation of charter schools as described in part 
        B.
            ``(9) School improvement programs or activities 
        under sections 1116 and 1117.
            ``(10) Community service programs that use 
        qualified school personnel to train and mobilize young 
        people to measurably strengthen their communities 
        through nonviolence, responsibility, compassion, 
        respect, and moral courage.
            ``(11) Activities to promote consumer, economic, 
        and personal finance education, such as disseminating 
        information on and encouraging use of the best 
        practices for teaching the basic principles of 
        economics and promoting the concept of achieving 
        financial literacy through the teaching of personal 
        financial management skills (including the basic 
        principles involved with earning, spending, saving, and 
        investing).
            ``(12) Activities to promote, implement, or expand 
        public school choice.
            ``(13) Programs to hire and support school nurses.
            ``(14) Expansion and improvement of school-based 
        mental health services, including early identification 
        of drug use and violence, assessment, and direct 
        individual or group counseling services provided to 
        students, parents, and school personnel by qualified 
        school-based mental health services personnel.
            ``(15) Alternative educational programs for those 
        students who have been expelled or suspended from their 
        regular educational setting, including programs to 
        assist students to reenter the regular educational 
        setting upon return from treatment or alternative 
        educational programs.
            ``(16) Programs to establish or enhance 
        prekindergarten programs for children.
            ``(17) Academic intervention programs that are 
        operated jointly with community-based organizations and 
        that support academic enrichment, and counseling 
        programs conducted during the school day (including 
        during extended school day or extended school year 
        programs), for students most at risk of not meeting 
        challenging State academic achievement standards or not 
        completing secondary school.
            ``(18) Programs for cardiopulmonary resuscitation 
        (CPR) training in schools.
            ``(19) Programs to establish smaller learning 
        communities.
            ``(20) Activities that encourage and expand 
        improvements throughout the area served by the local 
        educational agency that are designed to advance student 
        academic achievement.
            ``(21) Initiatives to generate, maintain, and 
        strengthen parental and community involvement.
            ``(22) Programs and activities that expand learning 
        opportunities through best-practice models designed to 
        improve classroom learning and teaching.
            ``(23) Programs to provide same-gender schools and 
        classrooms (consistent with applicable law).
            ``(24) Service learning activities.
            ``(25) School safety programs, including programs 
        to implement the policy described in section 9507 and 
        which may include payment of reasonable transportation 
        costs and tuition costs for such students.
            ``(26) Programs that employ research-based 
        cognitive and perceptual development approaches and 
        rely on a diagnostic-prescriptive model to improve 
        students' learning of academic content at the 
        preschool, elementary, and secondary levels.
            ``(27) Supplemental educational services, as 
        defined in section 1116(e).
    ``(b) Requirements.--The innovative assistance programs 
described in subsection (a) shall be--
            ``(1) tied to promoting challenging academic 
        achievement standards;
            ``(2) used to improve student academic achievement; 
        and
            ``(3) part of an overall education reform strategy.
    ``(c) Guidelines.--Not later than 120 days after the date 
of enactment of the No Child Left Behind Act of 2001, the 
Secretary shall issue guidelines for local educational agencies 
seeking funding for programs described in subsection (a)(23).

``SEC. 5132. ADMINISTRATIVE AUTHORITY.

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

``SEC. 5133. LOCAL APPLICATIONS.

    ``(a) Submission of Application.--A local educational 
agency may receive an allocation of funds under this part for 
any year for which the agency submits an application under this 
section that the State educational agency certifies under 
subsection (b).
    ``(b) Certification and Contents of Application.--The State 
educational agency shall certify each application submitted 
under subsection (a) that includes each of the following:
            ``(1) A description of locally identified needs 
        relative to the purposes of this part and to the 
        innovative assistance programs described in section 
        5131.
            ``(2) A statement that sets forth the planned 
        allocation of funds, based on the needs identified in 
        subparagraph (A), among innovative assistance programs 
        described in section 5131, a description of the 
        programs that the local educational agency intends to 
        support, and a description of the reasons for the 
        selection of such programs.
            ``(3) Information setting forth the allocation of 
        such funds required to implement section 5142.
            ``(4) A description of how assistance under this 
        part will contribute to improving student academic 
        achievement or improving the quality of education for 
        students.
            ``(5) An assurance that the local educational 
        agency will comply with this part, including the 
        provisions of section 5142 concerning the participation 
        of children enrolled in private nonprofit schools.
            ``(6) An assurance that the local educational 
        agency will keep such records, and provide such 
        information to the State educational agency, as may be 
        reasonably required for fiscal audit and program 
        evaluation (consistent with the responsibilities of the 
        State educational agency under this part).
            ``(7) Provision, in the allocation of funds for the 
        assistance authorized by this part and in the planning, 
        design, and implementation of such innovative 
        assistance programs, for systematic consultation with 
        parents of children attending elementary schools and 
        secondary schools in the area served by the local 
        educational agency, with teachers and administrative 
        personnel in such schools, and with such other groups 
        involved in the implementation of this part (such as 
        librarians, school counselors, and other pupil services 
        personnel) as may be considered appropriate by the 
        local educational agency.
            ``(8) An assurance that--
                    ``(A) programs carried out under this part 
                will be evaluated annually;
                    ``(B) the evaluation will be used to make 
                decisions about appropriate changes in programs 
                for the subsequent year;
                    ``(C) the evaluation will describe how 
                assistance under this part affected student 
                academic achievement and will include, at a 
                minimum, information and data on the use of 
                funds, the types of services furnished, and the 
                students served under this part; and
                    ``(D) the evaluation will be submitted to 
                the State educational agency at the time and in 
                the manner requested by the State educational 
                agency.
            ``(9) If the local educational agency seeks funds 
        under section 5131(a)(23), a description of how the 
        agency will comply with the guidelines issued by the 
        Secretary regarding same-gender schools and classrooms 
        under section 5131(c).
    ``(b) Period of Application.--An application submitted by a 
local educational agency under subsection (a) may seek 
allocations under this part for a period not to exceed 3 fiscal 
years. The agency may amend the application annually, as may be 
necessary to reflect changes, without the filing of a new 
application.
    ``(c) Local Educational Agency Discretion.--
            ``(1) In general.--Subject to the limitations and 
        requirements of this part, a local educational agency 
        shall have complete discretion in determining how funds 
        made available to carry out this subpart will be 
        divided among programs described in section 5131.
            ``(2) Limitation.--In exercising the discretion 
        described in paragraph (1), a local educational agency 
        shall ensure that expenditures under this subpart carry 
        out the purposes of this part and are used to meet the 
        educational needs within the schools served by the 
        local educational agency.

                    ``Subpart 4--General Provisions

``SEC. 5141. MAINTENANCE OF EFFORT.

    ``(a) In General.--Except as provided in subsection (b), a 
State educational agency is entitled to receive its full 
allotment of funds under this part for any fiscal year only if 
the Secretary determines that either the combined fiscal effort 
per student or the aggregate expenditures within the State, 
with respect to the provision of free public education for the 
fiscal year preceding the fiscal year for which the 
determination is made, was not less than 90 percent of such 
combined fiscal effort or aggregate expenditures for the second 
fiscal year preceding the fiscal year for which the 
determination is made.
    ``(b) Reduction of Funds.--The Secretary shall reduce the 
amount of the allotment of funds under this part in any fiscal 
year in the exact proportion by which the State educational 
agency fails to meet the requirements of subsection (a) by 
falling below 90 percent of the fiscal effort per student or 
aggregate expenditures (using the measure most favorable to the 
State educational agency), and no such lesser amount shall be 
used for computing the effort or expenditures required under 
paragraph (1) for subsequent years.
    ``(c) Waiver.--The Secretary may waive, for 1 fiscal year 
only, the requirements of this section, if the Secretary 
determines that such a waiver would be equitable due to 
exceptional or uncontrollable circumstances, such as a natural 
disaster or a precipitous and unforeseen decline in the 
financial resources of the State educational agency.

``SEC. 5142. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) Participation on Equitable Basis.--
            ``(1) In general.--To the extent consistent with 
        the number of children in the school district of a 
        local educational agency that is eligible to receive 
        funds under this part, or that serves the area in which 
        a program assisted under this part is located, who are 
        enrolled in private nonprofit elementary schools and 
        secondary schools, or, with respect to instructional or 
        personnel training programs funded by the State 
        educational agency from funds made available for State 
        educational agency use, the local educational agency, 
        after consultation with appropriate private school 
        officials--
                    ``(A) shall provide, as may be necessary, 
                for the benefit of such children in such 
                schools--
                            ``(i) secular, neutral, and 
                        nonideological services, materials, and 
                        equipment, including the participation 
                        of the teachers of such children (and 
                        other educational personnel serving 
                        such children) in training programs; 
                        and
                            ``(ii) the repair, minor 
                        remodeling, or construction of public 
                        facilities (consistent with subsection 
                        (c)); or
                    ``(B) if such services, materials, and 
                equipment are not feasible or necessary in one 
                or more such private schools, as determined by 
                the local educational agency after consultation 
                with the appropriate private school officials, 
                shall provide such other arrangements as will 
                assure equitable participation of such children 
                in the purposes and benefits of this part.
            ``(2) Other provisions for services.--If no program 
        is carried out under paragraph (1) in the school 
        district of a local educational agency, the State 
        educational agency shall make arrangements, such as 
        through contracts with nonprofit agencies or 
        organizations, under which children in private schools 
        in the district are provided with services and 
        materials to the same extent as would have occurred if 
        the local educational agency had received funds under 
        this part.
            ``(3) Application of requirements.--The 
        requirements of this section relating to the 
        participation of children, teachers, and other 
        personnel serving such children shall apply to programs 
        carried out under this part by a State educational 
        agency or local educational agency, whether directly or 
        through grants to, or contracts with, other public or 
        private agencies, institutions, or organizations.
    ``(b) Equal Expenditures.--
            ``(1) In general.--Expenditures for programs under 
        subsection (a) shall be equal (consistent with the 
        number of children to be served) to expenditures for 
        programs under this part for children enrolled in the 
        public schools of the local educational agency.
            ``(2) Concentrated programs.--Taking into account 
        the needs of the individual children and other factors 
        that relate to the expenditures referred to in 
        paragraph (1), and when funds available to a local 
        educational agency under this part are used to 
        concentrate programs on a particular group, attendance 
        area, or grade or age level, children enrolled in 
        private schools who are included within the group, 
        attendance area, or grade or age level selected for 
        such concentration shall, after consultation with the 
        appropriate private school officials, be assured 
        equitable participation in the purposes and benefits of 
        such programs.
    ``(c) Administrative Requirements.--
            ``(1) Funds and property.--The control of funds 
        provided under this part, and title to materials, 
        equipment, and property repaired, remodeled, or 
        constructed with such funds, shall be in a public 
        agency for the uses and purposes provided in this part, 
        and a public agency shall administer such funds and 
        property.
            ``(2) Provision of services.--Services provided 
        under this part shall be provided by employees of a 
        public agency or through contract by such a public 
        agency with a person, association, agency, or 
        corporation that, in the provision of such services, is 
        independent of the private school and of any religious 
        organizations, and such employment or contract shall be 
        under the control and supervision of such a public 
        agency. The funds provided under this part shall not be 
        commingled with State or local funds.
    ``(d) Waiver.--
            ``(1) State prohibition.--If a State educational 
        agency or local educational agency is prohibited, by 
        reason of any provision of law, from providing for the 
        participation in programs of children enrolled in 
        private elementary schools and secondary schools as 
        required by subsections (a) through (c), the Secretary 
        shall waive such requirements for the agency involved 
        and shall arrange for the provision of services to such 
        children through arrangements that shall be subject to 
        the requirements of this section.
            ``(2) Failure to comply.--If the Secretary 
        determines that a State educational agency or a local 
        educational agency has substantially failed, or is 
        unwilling, to provide for the participation on an 
        equitable basis of children enrolled in private 
        elementary schools and secondary schools as required by 
        subsections (a) through (c), the Secretary may waive 
        such requirements and shall arrange for the provision 
        of services to such children through arrangements that 
        shall be subject to the requirements of this section.
    ``(e) Withholding of Allotment or Allocation.--Pending 
final resolution of any investigation or complaint that could 
result in a waiver under subsection (d)(1) or (d)(2), the 
Secretary may withhold from the allotment or allocation of the 
affected State educational agency or local educational agency 
the amount estimated by the Secretary to be necessary to pay 
the cost of services to be provided by the Secretary under such 
subsection.
    ``(f) Duration of Determination.--Any determination by the 
Secretary under this section shall continue in effect until the 
Secretary determines that there will no longer be any failure 
or inability on the part of the State educational agency or 
local educational agency to meet the requirements of 
subsections (a) through (c).
    ``(g) Payment From State Allotment.--When the Secretary 
arranges for services under subsection (d), the Secretary 
shall, after consultation with the appropriate public school 
and private school officials, pay the cost of such services, 
including the administrative costs of arranging for those 
services, from the appropriate allotment of the State 
educational agency under this part.
    ``(h) Review of Determination.--
            ``(1) Written objections.--The Secretary shall not 
        take any final action under this section until the 
        State educational agency and the local educational 
        agency affected by such action have had an opportunity, 
        for not less than 45 days after receiving written 
        notice thereof, to submit written objections and to 
        appear before the Secretary or the Secretary's designee 
        to show cause why that action should not be taken.
            ``(2) Court action.--If a State educational agency 
        or local educational agency is dissatisfied with the 
        Secretary's final action after a proceeding under 
        paragraph (1), such agency may, not later than 60 days 
        after notice of such action, file with the United 
        States court of appeals for the circuit in which such 
        State is located a petition for review of that action. 
        A copy of the petition shall be transmitted by the 
        clerk of the court to the Secretary. The Secretary 
        thereupon shall file in the court the record of the 
        proceedings on which the Secretary based the action, as 
        provided in section 2112 of title 28, United States 
        Code.
            ``(3) Remand to secretary.--The findings of fact by 
        the Secretary with respect to a proceeding under 
        paragraph (1), if supported by substantial evidence, 
        shall be conclusive. The court, for good cause shown, 
        may remand the case to the Secretary to take further 
        evidence and the Secretary may make new or modified 
        findings of fact and may modify the Secretary's 
        previous action, and shall file in the court the record 
        of the further proceedings. Such new or modified 
        findings of fact shall likewise be conclusive, if 
        supported by substantial evidence.
            ``(4) Court review.--Upon the filing of a petition 
        under paragraph (2), the court shall have jurisdiction 
        to affirm the action of the Secretary or to set such 
        action aside, in whole or in part. The judgment of the 
        court shall be subject to review by the Supreme Court 
        upon certiorari or certification, as provided in 
        section 1254 of title 28, United States Code.
    ``(i) Prior Determination.--Any bypass determination by the 
Secretary under title VI (as such title was in effect on the 
day preceding the date of enactment of the No Child Left Behind 
Act of 2001) shall, to the extent consistent with the purposes 
of this part, apply to programs under this part.

``SEC. 5143. FEDERAL ADMINISTRATION.

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

``SEC. 5144. SUPPLEMENT, NOT SUPPLANT.

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

``SEC. 5145. DEFINITIONS.

    ``In this part:
            ``(1) Local educational agency.--The term `local 
        educational agency' means a local educational agency or 
        a consortium of such agencies.
            ``(2) Public school.--The term `public school' 
        means a public elementary school or a public secondary 
        school.
            ``(3) School-age population.--The term `school-age 
        population' means the population aged 5 through 17.
            ``(4) State.--The term `State' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

``SEC. 5146. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
part--
            ``(1) $450,000,000 for fiscal year 2002;
            ``(2) $475,000,000 for fiscal year 2003;
            ``(3) $500,000,000 for fiscal year 2004;
            ``(4) $525,000,000 for fiscal year 2005;
            ``(5) $550,000,000 for fiscal year 2006; and
            ``(6) $600,000,000 for fiscal year 2007.

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

``SEC. 5201. PURPOSE.

    ``It is the purpose of this subpart to increase national 
understanding of the charter schools model by--
            ``(1) providing financial assistance for the 
        planning, program design, and initial implementation of 
        charter schools;
            ``(2) evaluating the effects of such schools, 
        including the effects on students, student academic 
        achievement, staff, and parents;
            ``(3) expanding the number of high-quality charter 
        schools available to students across the Nation; and
            ``(4) encouraging the States to provide support to 
        charter schools for facilities financing in an amount 
        more nearly commensurate to the amount the States have 
        typically provided for traditional public schools.

``SEC. 5202. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to 
section 5203 to enable such agencies to conduct a charter 
school grant program in accordance with this subpart.
    ``(b) Special Rule.--If a State educational agency elects 
not to participate in the program authorized by this subpart or 
does not have an application approved under section 5203, the 
Secretary may award a grant to an eligible applicant that 
serves such State and has an application approved pursuant to 
section 5203(c).
    ``(c) Program Periods.--
            ``(1) Grants to states.--Grants awarded to State 
        educational agencies under this subpart shall be for a 
        period of not more than 3 years.
            ``(2) Grants to eligible applicants.--Grants 
        awarded by the Secretary to eligible applicants or 
        subgrants awarded by State educational agencies to 
        eligible applicants under this subpart shall be for a 
        period of not more than 3 years, of which the eligible 
        applicant may use--
                    ``(A) not more than 18 months for planning 
                and program design;
                    ``(B) not more than 2 years for the initial 
                implementation of a charter school; and
                    ``(C) not more than 2 years to carry out 
                dissemination activities described in section 
                5204(f)(6)(B).
    ``(d) Limitation.--A charter school may not receive--
            ``(1) more than 1 grant for activities described in 
        subparagraphs (A) and (B) of subsection (c)(2); or
            ``(2) more than 1 grant for activities under 
        subparagraph (C) of subsection (c)(2).
    ``(e) Priority Treatment.--
            ``(1) In general.--In awarding grants under this 
        subpart for fiscal year 2002 or any succeeding fiscal 
        year from any funds appropriated under section 5211 
        (other than funds reserved to carry out section 
        5205(b)), the Secretary shall give priority to States 
        to the extent that the States meet the criteria 
        described in paragraph (2) and 1 or more of the 
        criteria described in subparagraph (A), (B), or (C) of 
        paragraph (3).
            ``(2) Review and evaluation priority criteria.--The 
        criteria referred to in paragraph (1) are that the 
        State provides for periodic review and evaluation by 
        the authorized public chartering agency of each charter 
        school, at least once every 5 years unless required 
        more frequently by State law, to determine whether the 
        charter school is meeting the terms of the school's 
        charter, and is meeting or exceeding the student 
        academic achievement requirements and goals for charter 
        schools as set forth under State law or the school's 
        charter.
            ``(3) Priority criteria.--The criteria referred to 
        in paragraph (1) are the following:
                    ``(A) The State has demonstrated progress, 
                in increasing the number of high-quality 
                charter schools that are held accountable in 
                the terms of the schools' charters for meeting 
                clear and measurable objectives for the 
                educational progress of the students attending 
                the schools, in the period prior to the period 
                for which a State educational agency or 
                eligible applicant applies for a grant under 
                this subpart.
                    ``(B) The State--
                            ``(i) provides for 1 authorized 
                        public chartering agency that is not a 
                        local educational agency, such as a 
                        State chartering board, for each 
                        individual or entity seeking to operate 
                        a charter school pursuant to such State 
                        law; or
                            ``(ii) in the case of a State in 
                        which local educational agencies are 
                        the only authorized public chartering 
                        agencies, allows for an appeals process 
                        for the denial of an application for a 
                        charter school.
                    ``(C) The State ensures that each charter 
                school has a high degree of autonomy over the 
                charter school's budgets and expenditures.
    ``(f) Amount Criteria.--In determining the amount of a 
grant to be awarded under this subpart to a State educational 
agency, the Secretary shall take into consideration the number 
of charter schools that are operating, or are approved to open, 
in the State.

``SEC. 5203. APPLICATIONS.

    ``(a) Applications From State Agencies.--Each State 
educational agency desiring a grant from the Secretary under 
this subpart shall submit to the Secretary an application at 
such time, in such manner, and containing or accompanied by 
such information as the Secretary may require.
    ``(b) Contents of a State Educational Agency Application.--
Each application submitted pursuant to subsection (a) shall--
            ``(1) describe the objectives of the State 
        educational agency's charter school grant program and a 
        description of how such objectives will be fulfilled, 
        including steps taken by the State educational agency 
        to inform teachers, parents, and communities of the 
        State educational agency's charter school grant 
        program; and
            ``(2) describe how the State educational agency--
                    ``(A) will inform each charter school in 
                the State regarding--
                            ``(i) Federal funds that the 
                        charter school is eligible to receive; 
                        and
                            ``(ii) Federal programs in which 
                        the charter school may participate;
                    ``(B) will ensure that each charter school 
                in the State receives the charter school's 
                commensurate share of Federal education funds 
                that are allocated by formula each year, 
                including during the first year of operation of 
                the charter school; and
                    ``(C) will disseminate best or promising 
                practices of charter schools to each local 
                educational agency in the State; and
            ``(3) contain assurances that the State educational 
        agency will require each eligible applicant desiring to 
        receive a subgrant to submit an application to the 
        State educational agency containing--
                    ``(A) a description of the educational 
                program to be implemented by the proposed 
                charter school, including--
                            ``(i) how the program will enable 
                        all students to meet challenging State 
                        student academic achievement standards;
                            ``(ii) the grade levels or ages of 
                        children to be served; and
                            ``(iii) the curriculum and 
                        instructional practices to be used;
                    ``(B) a description of how the charter 
                school will be managed;
                    ``(C) a description of--
                            ``(i) the objectives of the charter 
                        school; and
                            ``(ii) the methods by which the 
                        charter school will determine its 
                        progress toward achieving those 
                        objectives;
                    ``(D) a description of the administrative 
                relationship between the charter school and the 
                authorized public chartering agency;
                    ``(E) a description of how parents and 
                other members of the community will be involved 
                in the planning, program design, and 
                implementation of the charter school;
                    ``(F) a description of how the authorized 
                public chartering agency will provide for 
                continued operation of the school once the 
                Federal grant has expired, if such agency 
                determines that the school has met the 
                objectives described in subparagraph (C)(i);
                    ``(G) a request and justification for 
                waivers of any Federal statutory or regulatory 
                provisions that the eligible applicant believes 
                are necessary for the successful operation of 
                the charter school, and a description of any 
                State or local rules, generally applicable to 
                public schools, that will be waived for, or 
                otherwise not apply to, the school;
                    ``(H) a description of how the subgrant 
                funds or grant funds, as appropriate, will be 
                used, including a description of how such funds 
                will be used in conjunction with other Federal 
                programs administered by the Secretary;
                    ``(I) a description of how students in the 
                community will be--
                            ``(i) informed about the charter 
                        school; and
                            ``(ii) given an equal opportunity 
                        to attend the charter school;
                    ``(J) an assurance that the eligible 
                applicant will annually provide the Secretary 
                and the State educational agency such 
                information as may be required to determine if 
                the charter school is making satisfactory 
                progress toward achieving the objectives 
                described in subparagraph (C)(i);
                    ``(K) an assurance that the eligible 
                applicant will cooperate with the Secretary and 
                the State educational agency in evaluating the 
                program assisted under this subpart;
                    ``(L) a description of how a charter school 
                that is considered a local educational agency 
                under State law, or a local educational agency 
                in which a charter school is located, will 
                comply with sections 613(a)(5) and 613(e)(1)(B) 
                of the Individuals with Disabilities Education 
                Act;
                    ``(M) if the eligible applicant desires to 
                use subgrant funds for dissemination activities 
                under section 5202(c)(2)(C), a description of 
                those activities and how those activities will 
                involve charter schools and other public 
                schools, local educational agencies, 
                developers, and potential developers; and
                    ``(N) such other information and assurances 
                as the Secretary and the State educational 
                agency may require.
    ``(c) Eligible Applicant Application.--Each eligible 
applicant desiring a grant pursuant to section 5202(b) shall 
submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary 
may reasonably require.
    ``(d) Contents of Eligible Applicant Application.--Each 
application submitted pursuant to subsection (c) shall 
contain--
            ``(1) the information and assurances described in 
        subparagraphs (A) through (N) of subsection (b)(3), 
        except that for purposes of this subsection 
        subparagraphs (J), (K), and (N) of such subsection 
        shall be applied by striking `and the State educational 
        agency' each place such term appears;
            ``(2) assurances that the State educational 
        agency--
                    ``(A) will grant, or will obtain, waivers 
                of State statutory or regulatory requirements; 
                and
                    ``(B) will assist each subgrantee in the 
                State in receiving a waiver under section 
                5204(e); and
            ``(3) assurances that the eligible applicant has 
        provided its authorized public chartering authority 
        timely notice, and a copy, of the application, except 
        that the State educational agency (or the Secretary, in 
        the case of an application submitted to the Secretary) 
        may waive the requirement of this paragraph in the case 
        of an application for a precharter planning grant or 
        subgrant if the authorized public chartering authority 
        to which a charter school proposal will be submitted 
        has not been determined at the time the grant or 
        subgrant application is submitted.

``SEC. 5204. ADMINISTRATION.

    ``(a) Selection Criteria for State Educational Agencies.--
The Secretary shall award grants to State educational agencies 
under this subpart on the basis of the quality of the 
applications submitted under section 5203(b), after taking into 
consideration such factors as--
            ``(1) the contribution that the charter schools 
        grant program will make to assisting educationally 
        disadvantaged and other students in meeting State 
        academic content standards and State student academic 
        achievement standards;
            ``(2) the degree of flexibility afforded by the 
        State educational agency to charter schools under the 
        State's charter schools law;
            ``(3) the ambitiousness of the objectives for the 
        State charter school grant program;
            ``(4) the quality of the strategy for assessing 
        achievement of those objectives;
            ``(5) the likelihood that the charter school grant 
        program will meet those objectives and improve 
        educational results for students;
            ``(6) the number of high-quality charter schools 
        created under this subpart in the State; and
            ``(7) in the case of State educational agencies 
        that propose to use grant funds to support 
        dissemination activities under subsection (f)(6)(B), 
        the quality of those activities and the likelihood that 
        those activities will improve student academic 
        achievement.
    ``(b) Selection Criteria for Eligible Applicants.--The 
Secretary shall award grants to eligible applicants under this 
subpart on the basis of the quality of the applications 
submitted under section 5203(c), after taking into 
consideration such factors as--
            ``(1) the quality of the proposed curriculum and 
        instructional practices;
            ``(2) the degree of flexibility afforded by the 
        State educational agency and, if applicable, the local 
        educational agency to the charter school;
            ``(3) the extent of community support for the 
        application;
            ``(4) the ambitiousness of the objectives for the 
        charter school;
            ``(5) the quality of the strategy for assessing 
        achievement of those objectives;
            ``(6) the likelihood that the charter school will 
        meet those objectives and improve educational results 
        for students; and
            ``(7) in the case of an eligible applicant that 
        proposes to use grant funds to support dissemination 
        activities under subsection (f)(6)(B), the quality of 
        those activities and the likelihood that those 
        activities will improve student achievement.
    ``(c) Peer Review.--The Secretary, and each State 
educational agency receiving a grant under this subpart, shall 
use a peer review process to review applications for assistance 
under this subpart.
    ``(d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this subpart, shall 
award grants and subgrants under this subpart in a manner that, 
to the extent possible, ensures that such grants and 
subgrants--
            ``(1) are distributed throughout different areas of 
        the Nation and each State, including urban and rural 
        areas; and
            ``(2) will assist charter schools representing a 
        variety of educational approaches, such as approaches 
        designed to reduce school size.
    ``(e) Waivers.--The Secretary may waive any statutory or 
regulatory requirement over which the Secretary exercises 
administrative authority except any such requirement relating 
to the elements of a charter school described in section 
5210(1), if--
            ``(1) the waiver is requested in an approved 
        application under this subpart; and
            ``(2) the Secretary determines that granting such a 
        waiver will promote the purpose of this subpart.
    ``(f) Use of Funds.--
            ``(1) State educational agencies.--Each State 
        educational agency receiving a grant under this subpart 
        shall use such grant funds to award subgrants to 1 or 
        more eligible applicants in the State to enable such 
        applicant to plan and implement a charter school in 
        accordance with this subpart, except that the State 
        educational agency may reserve not more than 10 percent 
        of the grant funds to support dissemination activities 
        described in paragraph (6).
            ``(2) Eligible applicants.--Each eligible applicant 
        receiving funds from the Secretary or a State 
        educational agency shall use such funds to plan and 
        implement a charter school, or to disseminate 
        information about the charter school and successful 
        practices in the charter school, in accordance with 
        this subpart.
            ``(3) Allowable activities.--An eligible applicant 
        receiving a grant or subgrant under this subpart may 
        use the grant or subgrant funds only for--
                    (A) post-award planning and design of the 
                educational program, which may include--
                            ``(i) refinement of the desired 
                        educational results and of the methods 
                        for measuring progress toward achieving 
                        those results; and
                            ``(ii) professional development of 
                        teachers and other staff who will work 
                        in the charter school; and
                    ``(B) initial implementation of the charter 
                school, which may include--
                            ``(i) informing the community about 
                        the school;
                            ``(ii) acquiring necessary 
                        equipment and educational materials and 
                        supplies;
                            ``(iii) acquiring or developing 
                        curriculum materials; and
                            ``(iv) other initial operational 
                        costs that cannot be met from State or 
                        local sources.
            ``(4) Administrative expenses.--
                    ``(A) State educational agency 
                administrative expenses.--Each State 
                educational agency receiving a grant pursuant 
                to this subpart may reserve not more than 5 
                percent of such grant funds for administrative 
                expenses associated with the charter school 
                grant program assisted under this subpart.
                    ``(B) Local administrative expenses.--A 
                local educational agency may not deduct funds 
                for administrative fees or expenses from a 
                subgrant awarded to an eligible applicant, 
                unless the eligible applicant enters 
                voluntarily into a mutually agreed upon 
                arrangement for administrative services with 
                the relevant local educational agency. Absent 
                such approval, the local educational agency 
                shall distribute all such subgrant funds to the 
                eligible applicant without delay.
            ``(5) Revolving loan funds.--Each State educational 
        agency receiving a grant pursuant to this subpart may 
        reserve not more than 10 percent of the grant funds for 
        the establishment of a revolving loan fund. Such fund 
        may be used to make loans to eligible applicants that 
        have received a subgrant under this subpart, under such 
        terms as may be determined by the State educational 
        agency, for the initial operation of the charter school 
        grant program of the eligible applicant until such time 
        as the recipient begins receiving ongoing operational 
        support from State or local financing sources.
            ``(6) Dissemination.--
                    ``(A) In general.--A charter school may 
                apply for funds under this subpart, whether or 
                not the charter school has applied for or 
                received funds under this subpart for planning, 
                program design, or implementation, to carry out 
                the activities described in subparagraph (B) if 
                the charter school has been in operation for at 
                least 3 consecutive years and has demonstrated 
                overall success, including--
                            ``(i) substantial progress in 
                        improving student academic achievement;
                            ``(ii) high levels of parent 
                        satisfaction; and
                            ``(iii) the management and 
                        leadership necessary to overcome 
                        initial start-up problems and establish 
                        a thriving, financially viable charter 
                        school.
                    ``(B) Activities.--A charter school 
                described in subparagraph (A) may use funds 
                reserved under paragraph (1) to assist other 
                schools in adapting the charter school's 
                program (or certain aspects of the charter 
                school's program), or to disseminate 
                information about the charter school, through 
                such activities as--
                            ``(i) assisting other individuals 
                        with the planning and start-up of 1 or 
                        more new public schools, including 
                        charter schools, that are independent 
                        of the assisting charter school and the 
                        assisting charter school's developers, 
                        and that agree to be held to at least 
                        as high a level of accountability as 
                        the assisting charter school;
                            ``(ii) developing partnerships with 
                        other public schools, including charter 
                        schools, designed to improve student 
                        academic achievement in each of the 
                        schools participating in the 
                        partnership;
                            ``(iii) developing curriculum 
                        materials, assessments, and other 
                        materials that promote increased 
                        student achievement and are based on 
                        successful practices within the 
                        assisting charter school; and
                            ``(iv) conducting evaluations and 
                        developing materials that document the 
                        successful practices of the assisting 
                        charter school and that are designed to 
                        improve student performance in other 
                        schools.
    ``(g) Tribally Controlled Schools.--Each State that 
receives a grant under this subpart and designates a tribally 
controlled school as a charter school shall not consider 
payments to a school under the Tribally Controlled Schools Act 
of 1988 (25 U.S.C. 2507) in determining--
            ``(1) the eligibility of the school to receive any 
        other Federal, State, or local aid; or
            ``(2) the amount of such aid.

``SEC. 5205. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary shall reserve for each 
fiscal year the greater of 5 percent or $5,000,000 of the 
amount appropriated to carry out this subpart, except that in 
no fiscal year shall the total amount so reserved exceed 
$8,000,000, to carry out the following activities:
            ``(1) To provide charter schools, either directly 
        or through State educational agencies, with--
                    ``(A) information regarding--
                            ``(i) Federal funds that charter 
                        schools are eligible to receive; and
                            ``(ii) other Federal programs in 
                        which charter schools may participate; 
                        and
                    ``(B) assistance in applying for Federal 
                education funds that are allocated by formula, 
                including assistance with filing deadlines and 
                submission of applications.
            ``(2) To provide for other evaluations or studies 
        that include the evaluation of the impact of charter 
        schools on student academic achievement, including 
        information regarding--
                    ``(A) students attending charter schools 
                reported on the basis of race, age, disability, 
                gender, limited English proficiency, and 
                previous enrollment in public school; and
                    ``(B) the professional qualifications of 
                teachers within a charter school and the 
                turnover of the teaching force.
            ``(3) To provide--
                    ``(A) information to applicants for 
                assistance under this subpart;
                    ``(B) assistance to applicants for 
                assistance under this subpart with the 
                preparation of applications under section 5203;
                    ``(C) assistance in the planning and 
                startup of charter schools;
                    ``(D) training and technical assistance to 
                existing charter schools; and
                    ``(E) for the dissemination to other public 
                schools of best or promising practices in 
                charter schools.
            ``(4) To provide (including through the use of 1 or 
        more contracts that use a competitive bidding process) 
        for the collection of information regarding the 
        financial resources available to charter schools, 
        including access to private capital, and to widely 
        disseminate to charter schools any such relevant 
        information and model descriptions of successful 
        programs.
            ``(5) To carry out evaluations of, technical 
        assistance for, and information dissemination 
        regarding, the per-pupil facilities aid programs. In 
        carrying out the evaluations, the Secretary may carry 
        out 1 or more evaluations of State programs assisted 
        under this subsection, which shall, at a minimum, 
        address--
                    ``(A) how, and the extent to which, the 
                programs promote educational equity and 
                excellence; and
                    ``(B) the extent to which charter schools 
                supported through the programs are--
                            ``(i) held accountable to the 
                        public;
                            ``(ii) effective in improving 
                        public education; and
                            ``(iii) open and accessible to all 
                        students.
    ``(b) Per-Pupil Facilities Aid Programs.--
            ``(1) Definition of per-pupil facilities aid 
        program.--In this subsection, the term `per-pupil 
        facilities aid program' means a program in which a 
        State makes payments, on a per-pupil basis, to charter 
        schools to provide the schools with financing--
                    ``(A) that is dedicated solely for funding 
                charter school facilities; or
                    ``(B) a portion of which is dedicated for 
                funding charter school facilities.
            ``(2) Grants.--
                    ``(A) In general.--From the amount made 
                available to carry out this subsection under 
                paragraphs (2) and (3)(B) of section 5211(b) 
                for any fiscal year, the Secretary shall make 
                grants, on a competitive basis, to States to 
                pay for the Federal share of the cost of 
                establishing or enhancing, and administering 
                per-pupil facilities aid programs.
                    ``(B) Period.--The Secretary shall award 
                grants under this subsection for periods of not 
                more than 5 years.
                    ``(C) Federal share.--The Federal share of 
                the cost described in subparagraph (A) for a 
                per-pupil facilities aid program shall be not 
                more than--
                            ``(i) 90 percent of the cost, for 
                        the first fiscal year for which the 
                        program receives assistance under this 
                        subsection;
                            ``(ii) 80 percent in the second 
                        such year;
                            ``(iii) 60 percent in the third 
                        such year;
                            ``(iv) 40 percent in the fourth 
                        such year; and
                            ``(v) 20 percent in the fifth such 
                        year.
            ``(3) Use of funds.--
                    ``(A) In general.--A State that receives a 
                grant under this subsection shall use the funds 
                made available through the grant to establish 
                or enhance, and administer, a per-pupil 
                facilities aid program for charter schools in 
                the State.
                    ``(B) Evaluations; technical assistance; 
                dissemination.--From the amount made available 
                to a State through a grant under this 
                subsection for a fiscal year, the State may 
                reserve not more than 5 percent to carry out 
                evaluations, to provide technical assistance, 
                and to disseminate information.
                    ``(C) Supplement, not supplant.--Funds made 
                available under this subsection shall be used 
                to supplement, and not supplant, State and 
                local public funds expended to provide per 
                pupil facilities aid programs, operations 
                financing programs, or other programs, for 
                charter schools.
            ``(4) Requirements.--
                    ``(A) Voluntary participation.--No State 
                may be required to participate in a program 
                carried out under this subsection.
                    ``(B) State law.--To be eligible to receive 
                a grant under this subsection, a State shall 
                establish or enhance, and administer, a per-
                pupil facilities aid program for charter 
                schools in the State, that--
                            ``(i) is specified in State law; 
                        and
                            ``(ii) provides annual financing, 
                        on a per-pupil basis, for charter 
                        school facilities.
            ``(5) Applications.--To be eligible to receive a 
        grant under this subsection, a State shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may require.
            ``(6) Priorities.--In making grants under this 
        subsection, the Secretary shall give priority to States 
        that meet the criteria described in paragraph (2), and 
        subparagraphs (A), (B), and (C) of paragraph (3), of 
        section 5202(e).
    ``(c) Rule of Construction.--Nothing in this section shall 
be construed to require charter schools to collect any data 
described in subsection (a).

``SEC. 5206. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND FOR 
                    SUCCESSIVE ENROLLMENT EXPANSIONS.

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

``SEC. 5207. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.

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

``SEC. 5208. RECORDS TRANSFER.

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

``SEC. 5209. PAPERWORK REDUCTION.

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

``SEC. 5210. DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' 
        means a public school that--
                    ``(A) in accordance with a specific State 
                statute authorizing the granting of charters to 
                schools, is exempt from significant State or 
                local rules that inhibit the flexible operation 
                and management of public schools, but not from 
                any rules relating to the other requirements of 
                this paragraph;
                    ``(B) is created by a developer as a public 
                school, or is adapted by a developer from an 
                existing public school, and is operated under 
                public supervision and direction;
                    ``(C) operates in pursuit of a specific set 
                of educational objectives determined by the 
                school's developer and agreed to by the 
                authorized public chartering agency;
                    ``(D) provides a program of elementary or 
                secondary education, or both;
                    ``(E) is nonsectarian in its programs, 
                admissions policies, employment practices, and 
                all other operations, and is not affiliated 
                with a sectarian school or religious 
                institution;
                    ``(F) does not charge tuition;
                    ``(G) complies with the Age Discrimination 
                Act of 1975, title VI of the Civil Rights Act 
                of 1964, title IX of the Education Amendments 
                of 1972, section 504 of the Rehabilitation Act 
                of 1973, and part B of the Individuals with 
                Disabilities Education Act;
                    ``(H) is a school to which parents choose 
                to send their children, and that admits 
                students on the basis of a lottery, if more 
                students apply for admission than can be 
                accommodated;
                    ``(I) agrees to comply with the same 
                Federal and State audit requirements as do 
                other elementary schools and secondary schools 
                in the State, unless such requirements are 
                specifically waived for the purpose of this 
                program;
                    ``(J) meets all applicable Federal, State, 
                and local health and safety requirements;
                    ``(K) operates in accordance with State 
                law; and
                    ``(L) has a written performance contract 
                with the authorized public chartering agency in 
                the State that includes a description of how 
                student performance will be measured in charter 
                schools pursuant to State assessments that are 
                required of other schools and pursuant to any 
                other assessments mutually agreeable to the 
                authorized public chartering agency and the 
                charter school.
            ``(2) Developer.--The term `developer' means an 
        individual or group of individuals (including a public 
        or private nonprofit organization), which may include 
        teachers, administrators and other school staff, 
        parents, or other members of the local community in 
        which a charter school project will be carried out.
            ``(3) Eligible applicant.--The term `eligible 
        applicant' means a developer that has--
                    ``(A) applied to an authorized public 
                chartering authority to operate a charter 
                school; and
                    ``(B) provided adequate and timely notice 
                to that authority under section 5203(d)(3).
            ``(4) Authorized public chartering agency.--The 
        term `authorized public chartering agency' means a 
        State educational agency, local educational agency, or 
        other public entity that has the authority pursuant to 
        State law and approved by the Secretary to authorize or 
        approve a charter school.

``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated 
to carry out this subpart $300,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 5 succeeding 
fiscal years.
    ``(b) Reservation.--From the amount appropriated under 
subsection (a) for each fiscal year, the Secretary shall 
reserve--
            ``(1) $200,000,000 to carry out this subpart, other 
        than section 5205(b); and
            ``(2) any funds in excess of $200,000,000, that do 
        not exceed $300,000,000, to carry out section 5205(b); 
        and
            ``(3)(A) 50 percent of any funds in excess of 
        $300,000,000 to carry out this subpart, other than 
        section 5205(b); and
            ``(B) 50 percent of any funds in excess of 
        $300,000,000 to carry out section 5205(b).

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

``SEC. 5221. PURPOSE.

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

``SEC. 5222. GRANTS TO ELIGIBLE ENTITIES.

    ``(a) Grants.--The Secretary shall use 100 percent of the 
amount available to carry out this subpart to award not less 
than 3 grants to eligible entities that have applications 
approved under this subpart to demonstrate innovative methods 
of assisting charter schools to address the cost of acquiring, 
constructing, and renovating facilities by enhancing the 
availability of loans or bond financing.
    ``(b) Grantee Selection.--
            ``(1) Evaluation of application.--The Secretary 
        shall evaluate each application submitted under section 
        5223, and shall determine whether the application is 
        sufficient to merit approval.
            ``(2) Distribution of grants.--The Secretary shall 
        award at least 1 grant to an eligible entity described 
        in section 5230(2)(A), at least 1 grant to an eligible 
        entity described in section 5230(2)(B), and at least 1 
        grant to an eligible entity described in section 
        5230(2)(C), if applications are submitted that permit 
        the Secretary to do so without approving an application 
        that is not of sufficient quality to merit approval.
    ``(c) Grant Characteristics.--Grants under this subpart 
shall be of a sufficient size, scope, and quality so as to 
ensure an effective demonstration of an innovative means of 
enhancing credit for the financing of charter school 
acquisition, construction, or renovation.
    ``(d) Special Rule.--In the event the Secretary determines 
that the funds made available under this subpart are 
insufficient to permit the Secretary to award not less than 3 
grants in accordance with subsections (a) through (c), such 3-
grant minimum and subsection (b)(2) shall not apply, and the 
Secretary may determine the appropriate number of grants to be 
awarded in accordance with subsection (c).

``SEC. 5223. APPLICATIONS.

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

``SEC. 5224. CHARTER SCHOOL OBJECTIVES.

    ``An eligible entity receiving a grant under this subpart 
shall use the funds deposited in the reserve account 
established under section 5225(a) to assist 1 or more charter 
schools to access private sector capital to accomplish 1 or 
both of the following objectives:
            ``(1) The acquisition (by purchase, lease, 
        donation, or otherwise) of an interest (including an 
        interest held by a third party for the benefit of a 
        charter school) in improved or unimproved real property 
        that is necessary to commence or continue the operation 
        of a charter school.
            ``(2) The construction of new facilities, or the 
        renovation, repair, or alteration of existing 
        facilities, necessary to commence or continue the 
        operation of a charter school.

``SEC. 5225. RESERVE ACCOUNT.

    ``(a) Use of Funds.--To assist charter schools to 
accomplish the objectives described in section 5224, an 
eligible entity receiving a grant under this subpart shall, in 
accordance with State and local law, directly or indirectly, 
alone or in collaboration with others, deposit the funds 
received under this subpart (other than funds used for 
administrative costs in accordance with section 5226) in a 
reserve account established and maintained by the eligible 
entity for this purpose. Amounts deposited in such account 
shall be used by the eligible entity for 1 or more of the 
following purposes:
            ``(1) Guaranteeing, insuring, and reinsuring bonds, 
        notes, evidences of debt, loans, and interests therein, 
        the proceeds of which are used for an objective 
        described in section 5224.
            ``(2) Guaranteeing and insuring leases of personal 
        and real property for an objective described in section 
        5224.
            ``(3) Facilitating financing by identifying 
        potential lending sources, encouraging private lending, 
        and other similar activities that directly promote 
        lending to, or for the benefit of, charter schools.
            ``(4) Facilitating the issuance of bonds by charter 
        schools, or by other public entities for the benefit of 
        charter schools, by providing technical, 
        administrative, and other appropriate assistance 
        (including the recruitment of bond counsel, 
        underwriters, and potential investors and the 
        consolidation of multiple charter school projects 
        within a single bond issue).
    ``(b) Investment.--Funds received under this subpart and 
deposited in the reserve account established under subsection 
(a) shall be invested in obligations issued or guaranteed by 
the United States or a State, or in other similarly low-risk 
securities.
    ``(c) Reinvestment of Earnings.--Any earnings on funds 
received under this subpart shall be deposited in the reserve 
account established under subsection (a) and used in accordance 
with such subsection.

``SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS.

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

``SEC. 5227. AUDITS AND REPORTS.

    ``(a) Financial Record Maintenance and Audit.--The 
financial records of each eligible entity receiving a grant 
under this subpart shall be maintained in accordance with 
generally accepted accounting principles and shall be subject 
to an annual audit by an independent public accountant.
    ``(b) Reports.--
            ``(1) Grantee annual reports.--Each eligible entity 
        receiving a grant under this subpart annually shall 
        submit to the Secretary a report of its operations and 
        activities under this subpart.
            ``(2) Contents.--Each annual report submitted under 
        paragraph (1) shall include--
                    ``(A) a copy of the most recent financial 
                statements, and any accompanying opinion on 
                such statements, prepared by the independent 
                public accountant reviewing the financial 
                records of the eligible entity;
                    ``(B) a copy of any report made on an audit 
                of the financial records of the eligible entity 
                that was conducted under subsection (a) during 
                the reporting period;
                    ``(C) an evaluation by the eligible entity 
                of the effectiveness of its use of the Federal 
                funds provided under this subpart in leveraging 
                private funds;
                    ``(D) a listing and description of the 
                charter schools served during the reporting 
                period;
                    ``(E) a description of the activities 
                carried out by the eligible entity to assist 
                charter schools in meeting the objectives set 
                forth in section 5224; and
                    ``(F) a description of the characteristics 
                of lenders and other financial institutions 
                participating in the activities undertaken by 
                the eligible entity under this subpart during 
                the reporting period.
            ``(3) Secretarial report.--The Secretary shall 
        review the reports submitted under paragraph (1) and 
        shall provide a comprehensive annual report to Congress 
        on the activities conducted under this subpart.

``SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

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

``SEC. 5229. RECOVERY OF FUNDS.

    ``(a) In General.--The Secretary, in accordance with 
chapter 37 of title 31, United States Code, shall collect--
            ``(1) all of the funds in a reserve account 
        established by an eligible entity under section 5225(a) 
        if the Secretary determines, not earlier than 2 years 
        after the date on which the eligible entity first 
        received funds under this subpart, that the eligible 
        entity has failed to make substantial progress in 
        carrying out the purposes described in section 5225(a); 
        or
            ``(2) all or a portion of the funds in a reserve 
        account established by an eligible entity under section 
        5225(a) if the Secretary determines that the eligible 
        entity has permanently ceased to use all or a portion 
        of the funds in such account to accomplish any purpose 
        described in section 5225(a).
    ``(b) Exercise of Authority.--The Secretary shall not 
exercise the authority provided in subsection (a) to collect 
from any eligible entity any funds that are being properly used 
to achieve 1 or more of the purposes described in section 
5225(a).
    ``(c) Procedures.--The provisions of sections 451, 452, and 
458 of the General Education Provisions Act shall apply to the 
recovery of funds under subsection (a).
    ``(d) Construction.--This section shall not be construed to 
impair or affect the authority of the Secretary to recover 
funds under part D of the General Education Provisions Act.

``SEC. 5230. DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' 
        has the meaning given such term in section 5210.
            ``(2) Eligible entity.--The term `eligible entity' 
        means--
                    ``(A) a public entity, such as a State or 
                local governmental entity;
                    ``(B) a private nonprofit entity; or
                    ``(C) a consortium of entities described in 
                subparagraphs (A) and (B).

``SEC. 5231. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are 
authorized to be appropriated $150,000,000 for fiscal year 2002 
and such sums as may be necessary for fiscal year 2003.''

          ``Subpart 3--Voluntary Public School Choice Programs

``SEC. 5241. GRANTS.

    ``(a) Authorization.--From funds made available under 
section 5248 to carry out this subpart, the Secretary shall 
award grants, on a competitive basis, to eligible entities to 
enable the entities to establish or expand a program of public 
school choice (referred to in this subpart as a `program') in 
accordance with this subpart.
    ``(b) Duration.--Grants awarded under subsection (a) may be 
awarded for a period of not more than 5 years.

``SEC. 5242. USES OF FUNDS.

    ``(a) Required Use of Funds.--An eligible entity that 
receives a grant under this subpart shall use the grant funds 
to provide students selected to participate in the program with 
transportation services or the cost of transportation to and 
from the public elementary schools and secondary schools, 
including charter schools, that the students choose to attend 
under the program.
    ``(b) Permissible Uses of Funds.--An eligible entity that 
receives a grant under this subpart may use the grant funds 
for--
            ``(1) planning or designing a program (for not more 
        than 1 year);
            ``(2) the cost of making tuition transfer payments 
        to public elementary schools or secondary schools to 
        which students transfer under the program;
            ``(3) the cost of capacity-enhancing activities 
        that enable high-demand public elementary schools or 
        secondary schools to accommodate transfer requests 
        under the program;
            ``(4) the cost of carrying out public education 
        campaigns to inform students and parents about the 
        program; and
            ``(5) other costs reasonably necessary to implement 
        the program.
    ``(c) Nonpermissible Uses of Funds.--An eligible entity 
that receives a grant under this subpart may not use the grant 
funds for school construction.
    ``(d) Administrative Expenses.--The eligible entity may use 
not more than 5 percent of the funds made available through the 
grant for any fiscal year for administrative expenses.

``SEC. 5243. APPLICATIONS.

    ``(a) Submission.--An eligible entity that desires a grant 
under this subpart shall submit an application to the Secretary 
at such time, in such manner, and containing such information 
as the Secretary may require.
    ``(b) Contents.--An application submitted under subsection 
(a) shall include--
            ``(1) a description of the program for which the 
        eligible entity seeks funds and the goals for such 
        program;
            ``(2) a description of how and when parents of 
        students will be given the notice required under 
        section 5245(a)(2);
            ``(3) a description of how students will be 
        selected for the program;
            ``(4) a description of how the program will be 
        coordinated with, and will complement and enhance, 
        other related Federal and non-Federal projects;
            ``(5) if the program is to be carried out by a 
        partnership, the name of each partner and a description 
        of the partner's responsibilities; and
            ``(6) such other information as the Secretary may 
        require.

``SEC. 5244. PRIORITIES.

    ``In awarding grants under this subpart, the Secretary 
shall give priority to an eligible entity--
            ``(1) whose program would provide the widest 
        variety of choices to all students in participating 
        schools;
            ``(2) whose program would, through various choice 
        options, have the most impact in allowing students in 
        low-performing schools to attend higher-performing 
        schools; and
            ``(3) that is a partnership that seeks to implement 
        an interdistrict approach to carrying out a program.

``SEC. 5245. REQUIREMENTS AND VOLUNTARY PARTICIPATION.

    ``(a) Parent and Community Involvement and Notice.--In 
carrying out a program under this subpart, an eligible entity 
shall--
            ``(1) develop the program with--
                    ``(A) the involvement of parents and others 
                in the community to be served; and
                    ``(B) individuals who will carry out the 
                program, including administrators, teachers, 
                principals, and other staff; and
            ``(2) provide to parents of students in the area to 
        be served by the program with prompt notice of--
                    ``(A) the existence of the program;
                    ``(B) the program's availability; and
                    ``(C) a clear explanation of how the 
                program will operate.
    ``(b) Selection of Students.--An eligible entity that 
receives a grant under this subpart shall select students to 
participate in a program on the basis of a lottery, if more 
students apply for admission to the program than can be 
accommodated.
    ``(c) Voluntary Participation.--Student participation in a 
program funded under this subpart shall be voluntary.

``SEC. 5246. EVALUATIONS.

    ``(a) In General.--From the amount made available to carry 
out this subpart for any fiscal year, the Secretary may reserve 
not more than 5 percent--
            ``(1) to carry out evaluations;
            ``(2) to provide technical assistance; and
            ``(3) to disseminate information.
    ``(b) Evaluations.--In carrying out the evaluations under 
subsection (a), the Secretary shall, at a minimum, address--
            ``(1) how, and the extent to which, the programs 
        promote educational equity and excellence;
            ``(2) the characteristics of the students 
        participating in the programs; and
            ``(3) the effect of the programs on the academic 
        achievement of students participating in the programs, 
        particularly students who move from schools identified 
        under section 1116 to schools not so identified, and on 
        the overall quality of participating schools and 
        districts.

``SEC. 5247. DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' 
        has the meaning given such term in section 5210.
            ``(2) Eligible entity.--The term `eligible entity' 
        means--
                    ``(A) one or more State educational 
                agencies;
                    ``(B) one or more local educational 
                agencies; or
                    ``(C) a partnership of--
                            ``(i) one or more--
                                    ``(I) State educational 
                                agencies; and
                                    ``(II) local educational 
                                agencies or other public, for-
                                profit, or nonprofit entities; 
                                or
                            ``(ii) one or more--
                                    ``(I) local educational 
                                agencies; and
                                    ``(II) public, for-profit, 
                                or nonprofit entities.
            ``(3) Low-performing school.--The term `low-
        performing school' means a public elementary school or 
        secondary school that has failed to make adequate 
        yearly progress, as described in section 1111(b), for 2 
        or more consecutive years.

``SEC. 5248. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart $100,000,000 for fiscal year 2002 and each of the 5 
succeeding fiscal years.

                  ``PART C--MAGNET SCHOOLS ASSISTANCE

``SEC. 5301. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Magnet schools are a significant part of the 
        Nation's effort to achieve voluntary desegregation in 
        our Nation's schools.
            ``(2) The use of magnet schools has increased 
        dramatically since the inception of the magnet schools 
        assistance program under this Act, with approximately 
        2,000,000 students nationwide attending such schools, 
        of whom more than 65 percent are non-white.
            ``(3) Magnet schools offer a wide range of 
        distinctive programs that have served as models for 
        school improvement efforts.
            ``(4) It is in the best interests of the United 
        States--
                    ``(A) to continue the Federal Government's 
                support of local educational agencies that are 
                implementing court-ordered desegregation plans 
                and local educational agencies that are 
                voluntarily seeking to foster meaningful 
                interaction among students of different racial 
                and ethnic backgrounds, beginning at the 
                earliest stage of such students' education;
                    ``(B) to ensure that all students have 
                equitable access to a high quality education 
                that will prepare all students to function well 
                in a technologically oriented and a highly 
                competitive economy comprised of people from 
                many different racial and ethnic backgrounds; 
                and
                    ``(C) to continue to desegregate and 
                diversify schools by supporting magnet schools, 
                recognizing that segregation exists between 
                minority and nonminority students as well as 
                among students of different minority groups.
            ``(5) Desegregation efforts through magnet school 
        programs are a significant part of our Nation's effort 
        to achieve voluntary desegregation in schools and help 
        to ensure equal educational opportunities for all 
        students.
    ``(b) Purpose.--The purpose of this part is to assist in 
the desegregation of schools served by local educational 
agencies by providing financial assistance to eligible local 
educational agencies for--
            ``(1) the elimination, reduction, or prevention of 
        minority group isolation in elementary schools and 
        secondary schools with substantial proportions of 
        minority students, which shall include assisting in the 
        efforts of the United States to achieve voluntary 
        desegregation in public schools;
            ``(2) the development and implementation of magnet 
        school programs that will assist local educational 
        agencies in achieving systemic reforms and providing 
        all students the opportunity to meet challenging State 
        academic content standards and student academic 
        achievement standards;
            ``(3) the development and design of innovative 
        educational methods and practices that promote 
        diversity and increase choices in public elementary 
        schools and public secondary schools and public 
        educational programs;
            ``(4) courses of instruction within magnet schools 
        that will substantially strengthen the knowledge of 
        academic subjects and the attainment of tangible and 
        marketable vocational, technological, and professional 
        skills of students attending such schools;
            ``(5) improving the capacity of local educational 
        agencies, including through professional development, 
        to continue operating magnet schools at a high 
        performance level after Federal funding for the magnet 
        schools is terminated; and
            ``(6) ensuring that all students enrolled in the 
        magnet school programs have equitable access to high 
        quality education that will enable the students to 
        succeed academically and continue with postsecondary 
        education or productive employment.

``SEC. 5302. DEFINITION.

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

``SEC. 5303. PROGRAM AUTHORIZED.

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

``SEC. 5304. ELIGIBILITY.

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

``SEC. 5305. APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency, 
or consortium of such agencies, desiring to receive a grant 
under this part shall submit an application to the Secretary at 
such time, in such manner, and containing such information and 
assurances as the Secretary may reasonably require.
    ``(b) Information and Assurances.--Each application 
submitted under subsection (a) shall include--
            ``(1) a description of--
                    ``(A) how a grant awarded under this part 
                will be used to promote desegregation, 
                including how the proposed magnet school 
                programs will increase interaction among 
                students of different social, economic, ethnic, 
                and racial backgrounds;
                    ``(B) the manner and extent to which the 
                magnet school program will increase student 
                academic achievement in the instructional area 
                or areas offered by the school;
                    ``(C) how the applicant will continue the 
                magnet school program after assistance under 
                this part is no longer available, and, if 
                applicable, an explanation of why magnet 
                schools established or supported by the 
                applicant with grant funds under this part 
                cannot be continued without the use of grant 
                funds under this part;
                    ``(D) how grant funds under this part will 
                be used--
                            ``(i) to improve student academic 
                        achievement for all students attending 
                        the magnet school programs; and
                            ``(ii) to implement services and 
                        activities that are consistent with 
                        other programs under this Act, and 
                        other Acts, as appropriate; and
                    ``(E) the criteria to be used in selecting 
                students to attend the proposed magnet school 
                program; and
            ``(2) assurances that the applicant will--
                    ``(A) use grant funds under this part for 
                the purposes specified in section 5301(b);
                    ``(B) employ highly qualified teachers in 
                the courses of instruction assisted under this 
                part;
                    ``(C) not engage in discrimination based on 
                race, religion, color, national origin, sex, or 
                disability in--
                            ``(i) the hiring, promotion, or 
                        assignment of employees of the 
                        applicant or other personnel for whom 
                        the applicant has any administrative 
                        responsibility;
                            ``(ii) the assignment of students 
                        to schools, or to courses of 
                        instruction within the schools, of such 
                        applicant, except to carry out the 
                        approved plan; and
                            ``(iii) designing or operating 
                        extracurricular activities for 
                        students;
                    ``(D) carry out a high-quality education 
                program that will encourage greater parental 
                decisionmaking and involvement; and
                    ``(E) give students residing in the local 
                attendance area of the proposed magnet school 
                program equitable consideration for placement 
                in the program, consistent with desegregation 
                guidelines and the capacity of the applicant to 
                accommodate the students.
    ``(c) Special Rule.--No grant shall be awarded under this 
part unless the Assistant Secretary of Education for Civil 
Rights determines that the assurances described in subsection 
(b)(2)(C) will be met.

``SEC. 5306. PRIORITY.

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

``SEC. 5307. USE OF FUNDS.

    ``(a) In General.--Grant funds made available under this 
part may be used by an eligible local educational agency, or 
consortium of such agencies--
            ``(1) for planning and promotional activities 
        directly related to the development, expansion, 
        continuation, or enhancement of academic programs and 
        services offered at magnet schools;
            ``(2) for the acquisition of books, materials, and 
        equipment, including computers and the maintenance and 
        operation of materials, equipment, and computers, 
        necessary to conduct programs in magnet schools;
            ``(3) for the compensation, or subsidization of the 
        compensation, of elementary school and secondary school 
        teachers who are highly qualified, and instructional 
        staff where applicable, who are necessary to conduct 
        programs in magnet schools;
            ``(4) with respect to a magnet school program 
        offered to less than the entire student population of a 
        school, for instructional activities that--
                    ``(A) are designed to make available the 
                special curriculum that is offered by the 
                magnet school program to students who are 
                enrolled in the school but who are not enrolled 
                in the magnet school program; and
                    ``(B) further the purpose of this part;
            ``(5) for activities, which may include 
        professional development, that will build the 
        recipient's capacity to operate magnet school programs 
        once the grant period has ended;
            ``(6) to enable the local educational agency, or 
        consortium of such agencies, to have more flexibility 
        in the administration of a magnet school program in 
        order to serve students attending a school who are not 
        enrolled in a magnet school program; and
            ``(7) to enable the local educational agency, or 
        consortium of such agencies, to have flexibility in 
        designing magnet schools for students in all grades.
    ``(b) Special Rule.--Grant funds under this part may be 
used for activities described in paragraphs (2) and (3) of 
subsection (a) only if the activities are directly related to 
improving student academic achievement based on the State's 
challenging academic content standards and student academic 
achievement standards or directly related to improving student 
reading skills or knowledge of mathematics, science, history, 
geography, English, foreign languages, art, or music, or to 
improving vocational, technological, and professional skills.

``SEC. 5308. PROHIBITION.

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

``SEC. 5309. LIMITATIONS.

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

``SEC. 5310. EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than 
2 percent of the funds appropriated under section 5311(a) for 
any fiscal year to carry out evaluations, provide technical 
assistance, and carry out dissemination projects with respect 
to magnet school programs assisted under this part.
    ``(b) Contents.--Each evaluation described in subsection 
(a), at a minimum, shall address--
            ``(1) how and the extent to which magnet school 
        programs lead to educational quality and improvement;
            ``(2) the extent to which magnet school programs 
        enhance student access to a high quality education;
            ``(3) the extent to which magnet school programs 
        lead to the elimination, reduction, or prevention of 
        minority group isolation in elementary schools and 
        secondary schools with substantial proportions of 
        minority students; and
            ``(4) the extent to which magnet school programs 
        differ from other school programs in terms of the 
        organizational characteristics and resource allocations 
        of such magnet school programs.
    ``(c) Dissemination.--The Secretary shall collect and 
disseminate to the general public information on successful 
magnet school programs.

``SEC. 5311. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

    ``(a) Authorization.--For the purpose of carrying out this 
part, there are authorized to be appropriated $125,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of 
the 5 succeeding fiscal years.
    ``(b) Availability of Funds for Grants to Agencies Not 
Previously Assisted.--In any fiscal year for which the amount 
appropriated pursuant to subsection (a) exceeds $75,000,000, 
the Secretary shall give priority in using such amounts in 
excess of $75,000,000 to awarding grants to local educational 
agencies or consortia of such agencies that did not receive a 
grant under this part in the preceding fiscal year.

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

``SEC. 5401. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
part the following amounts:
            ``(1) $550,000,000 for fiscal year 2002.
            ``(2) $575,000,000 for fiscal year 2003.
            ``(3) $600,000,000 for fiscal year 2004.
            ``(4) $625,000,000 for fiscal year 2005.
            ``(5) $650,000,000 for fiscal year 2006.
            ``(6) $675,000,000 for fiscal year 2007.

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

``SEC. 5411. PROGRAMS AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to 
support nationally significant programs to improve the quality 
of elementary and secondary education at the State and local 
levels and help all children meet challenging State academic 
content and student academic achievement standards. The 
Secretary may carry out such programs directly, or through 
grants to, or contracts with--
            ``(1) States or local educational agencies;
            ``(2) institutions of higher education; and
            ``(3) other public and private agencies, 
        organizations, and institutions.
    ``(b) Uses of Funds.--Funds made available under section 
5401 to carry out this subpart may be used for any of the 
following programs:
            ``(1) Activities to promote systemic education 
        reform at the State and local levels, including 
        scientifically based research, development, and 
        evaluation designed to improve--
                    ``(A) student academic achievement at the 
                State and local level; and
                    ``(B) strategies for effective parent and 
                community involvement.
            ``(2) Programs at the State and local levels that 
        are designed to yield significant results, including 
        programs to explore approaches to public school choice 
        and school-based decisionmaking.
            ``(3) Recognition programs, which may include 
        financial awards to States, local educational agencies, 
        and schools that have made the greatest progress, based 
        on the Secretary's determination or on a nomination by 
        the State in which the school is located (or in the 
        case of a Bureau funded school, by the Secretary of the 
        Interior) in--
                    ``(A) improving the academic achievement of 
                economically disadvantaged students and 
                students from major racial and ethnic minority 
                groups; and
                    ``(B) in closing the academic achievement 
                gap for those groups of students farthest away 
                from the proficient level on the academic 
                assessments administered by the State under 
                section 1111.
            ``(4) Scientifically based studies and evaluations 
        of education reform strategies and innovations, and the 
        dissemination of information on the effectiveness of 
        such strategies and innovations.
            ``(5) Identification and recognition of exemplary 
        schools and programs, such as Blue Ribbon Schools, 
        including programs to evaluate the effectiveness of 
        using the best practices of exemplary or Blue Ribbon 
        Schools to improve academic achievement.
            ``(6) Activities to support Scholar-Athlete Games 
        programs, including the World Scholar-Athlete Games and 
        the U.S. Scholar-Athlete Games.
            ``(7) Programs to promote voter participation in 
        American elections through programs, such as the 
        National Student/Parent Mock Election and Kids Voting 
        USA.
            ``(8) Demonstrations relating to the planning and 
        evaluation of the effectiveness of programs under which 
        local educational agencies or schools contract with 
        private management organizations to reform a school or 
        schools.
            ``(9) Other programs that meet the purposes of this 
        Act.
    ``(c) Basis of Awards.--The Secretary is authorized to--
            ``(1) make awards under this subpart on the basis 
        of competitions announced by the Secretary; and
            ``(2) support meritorious unsolicited proposals for 
        awards under this subpart.
    ``(d) Effectiveness of Programs.--The Secretary shall 
ensure that programs supported under this subpart are designed 
so that their effectiveness is readily ascertainable, and shall 
ensure that such effectiveness is assessed using rigorous, 
scientifically based research and evaluations.

``SEC. 5412. APPLICATIONS.

    ``(a) Submission.--To be eligible for an award under this 
subpart, an entity shall submit an application to the 
Secretary, at such time, in such manner, and containing such 
information as the Secretary may require.
            ``(b) Contents.--Each application submitted under 
        subsection (a) shall--
            ``(1) establish clear objectives, which are based 
        on scientifically based research, for the proposed 
        program; and
            ``(2) describe the activities the applicant will 
        carry out in order to meet the objectives described in 
        paragraph (1).
    ``(c) Peer Review.--The Secretary shall use a peer review 
process in reviewing applications for awards under this subpart 
and in recognizing States, local educational agencies, and 
schools under section 5411(b)(3), only if funds are used for 
such recognition programs. The Secretary may use funds 
appropriated under this subpart for the cost of such peer 
review.

``SEC. 5413. PROGRAM REQUIREMENTS.

    ``(a) Evaluations.--A recipient of an award under this 
subpart shall--
            ``(1) evaluate the effectiveness of the program 
        funded under the award in achieving the objectives 
        stated in application submitted under section 5412; and
            ``(2) report to the Secretary such information as 
        may be required to determine the effectiveness of such 
        program, including evidence of progress toward meeting 
        such objectives.
    ``(b) Dissemination of Evaluation Results.--The Secretary 
shall provide for the dissemination of the evaluations of 
programs funded under this subpart by making the evaluations 
publicly available upon request, and shall provide public 
notice that the evaluations are so available.
    ``(c) Matching Funds.--The Secretary may require recipients 
of awards under this subpart to provide matching funds from 
non-Federal sources, and shall permit the recipients to match 
funds in whole or in part with in-kind contributions.
    ``(d) Special Rule for Recognition Programs.--The 
application requirements of section 5412(b), and the evaluation 
requirements of subsections (a) and (b) of this section, do not 
apply to recognition programs under section 5411(b)(3).

``SEC. 5414. STUDIES OF NATIONAL SIGNIFICANCE.

    ``(a) Studies.--The Secretary shall conduct the following 
studies of national significance:
            ``(1) Unhealthy public school buildings.--A study 
        regarding the health and learning impacts of 
        environmentally unhealthy public school buildings on 
        students and teachers. The study shall include the 
        following information:
                    ``(A) The characteristics of those public 
                elementary school and secondary school 
                buildings that contribute to unhealthy school 
                environments.
                    ``(B) The health and learning impacts of 
                environmental unhealthy public school buildings 
                on students that are attending or that have 
                attended such schools.
                    ``(C) Recommendations to Congress on how to 
                assist schools that are out of compliance with 
                Federal or State health and safety codes, and a 
                cost estimate of bringing up environmentally 
                unhealthy public school buildings to minimum 
                Federal health and safety building standards.
            ``(2) Exposure to violent entertainment.--A study 
        regarding how exposure to violent entertainment (such 
        as in movies, music, television, Internet content, 
        video games, and arcade games) affects children's 
        cognitive development and educational achievement.
            ``(3) Sexual abuse in schools.--A study regarding 
        the prevalence of sexual abuse in schools, including 
        recommendations and legislative remedies for addressing 
        the problem of sexual abuse in schools.
    ``(b) Completion Date.--The studies under subsection (a) 
shall be completed not later than 18 months after the date of 
enactment of the No Child Left Behind Act of 2001.
    ``(c) Public Dissemination.--The Secretary shall make the 
study conducted under subsection (a)(1) available to the public 
through the Educational Resources Information Center National 
Clearinghouse for Educational Facilities of the Department.

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

``SEC. 5421. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

    ``(a) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to local educational agencies to enable 
        such agencies to establish or expand elementary school 
        and secondary school counseling programs that comply 
        with the requirements of subsection (c)(2).
            ``(2) Special consideration.--In awarding grants 
        under this section, the Secretary shall give special 
        consideration to applications describing programs 
        that--
                    ``(A) demonstrate the greatest need for new 
                or additional counseling services among 
                children in the schools served by the local 
                educational agency, in part by providing 
                information on current ratios of students to 
                school counselors, students to school social 
                workers, and students to school psychologists;
                    ``(B) propose the most promising and 
                innovative approaches for initiating or 
                expanding school counseling; and
                    ``(C) show the greatest potential for 
                replication and dissemination.
            ``(3) Equitable distribution.--In awarding grants 
        under this section, the Secretary shall ensure an 
        equitable geographic distribution among the regions of 
        the United States and among local educational agencies 
        located in urban, rural, and suburban areas.
            ``(4) Duration.--A grant under this section shall 
        be awarded for a period not to exceed 3 years.
            ``(5) Maximum grant.--A grant awarded under this 
        section shall not exceed $400,000 for any fiscal year.
            ``(6) Supplement, not supplant.--Funds made 
        available under this section shall be used to 
        supplement, and not supplant, other Federal, State, or 
        local funds used for providing school-based counseling 
        and mental health services to students.
    ``(b) Applications.--
            ``(1) In general.--Each local educational agency 
        desiring a grant under this section shall submit an 
        application to the Secretary at such time, in such 
        manner, and accompanied by such information as the 
        Secretary may reasonably require.
            ``(2) Contents.--Each application for a grant under 
        this section shall--
                    ``(A) describe the school population to be 
                targeted by the program, the particular 
                counseling needs of such population, and the 
                current school counseling resources available 
                for meeting such needs;
                    ``(B) describe the activities, services, 
                and training to be provided by the program and 
                the specific approaches to be used to meet the 
                needs described in subparagraph (A);
                    ``(C) describe the methods to be used to 
                evaluate the outcomes and effectiveness of the 
                program;
                    ``(D) describe how the local educational 
                agency will involve community groups, social 
                service agencies, and other public and private 
                entities in collaborative efforts to enhance 
                the program and promote school-linked services 
                integration;
                    ``(E) document that the local educational 
                agency has the personnel qualified to develop, 
                implement, and administer the program;
                    ``(F) describe how diverse cultural 
                populations, if applicable, will be served 
                through the program;
                    ``(G) assure that the funds made available 
                under this subpart for any fiscal year will be 
                used to supplement, and not supplant, any other 
                Federal, State, or local funds used for 
                providing school-based counseling and mental 
                health services to students; and
                    ``(H) assure that the applicant will 
                appoint an advisory board composed of 
                interested parties, including parents, 
                teachers, school administrators, counseling 
                services providers described in subsection 
                (c)(2)(D), and community leaders, to advise the 
                local educational agency on the design and 
                implementation of the program.
    ``(c) Use of Funds.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to local educational agencies to enable 
        the local educational agencies to initiate or expand 
        elementary school or secondary school counseling 
        programs that comply with the requirements of paragraph 
        (2).
            ``(2) Requirements.--Each program funded under this 
        section shall--
                    ``(A) be comprehensive in addressing the 
                counseling and educational needs of all 
                students;
                    ``(B) use a developmental, preventive 
                approach to counseling;
                    ``(C) increase the range, availability, 
                quantity, and quality of counseling services in 
                the elementary schools and secondary schools of 
                the local educational agency;
                    ``(D) expand counseling services through 
                qualified school counselors, school social 
                workers, school psychologists, other qualified 
                psychologists, or child and adolescent 
                psychiatrists;
                    ``(E) use innovative approaches to increase 
                children's understanding of peer and family 
                relationships, work and self, decisionmaking, 
                or academic and career planning, or to improve 
                peer interaction;
                    ``(F) provide counseling services in 
                settings that meet the range of student needs;
                    ``(G) include in-service training 
                appropriate to the activities funded under this 
                Act for teachers, instructional staff, and 
                appropriate school personnel, including in-
                service training in appropriate identification 
                and early intervention techniques by school 
                counselors, school social workers, school 
                psychologists, other qualified psychologists, 
                and child and adolescent psychiatrists;
                    ``(H) involve parents of participating 
                students in the design, implementation, and 
                evaluation of the counseling program;
                    ``(I) involve community groups, social 
                service agencies, or other public or private 
                entities in collaborative efforts to enhance 
                the program and promote school-linked 
                integration of services;
                    ``(J) evaluate annually the effectiveness 
                and outcomes of the counseling services and 
                activities assisted under this section;
                    ``(K) ensure a team approach to school 
                counseling in the schools served by the local 
                educational agency by working toward ratios 
                recommended by the American School Health 
                Association of 1 school counselor to 250 
                students, 1 school social worker to 800 
                students, and 1 school psychologist to 1,000 
                students; and
                    ``(L) ensure that school counselors, school 
                psychologists, other qualified psychologists, 
                school social workers, or child and adolescent 
                psychiatrists paid from funds made available 
                under this section spend a majority of their 
                time counseling students or in other activities 
                directly related to the counseling process.
    ``(d) Limitation on Administrative Costs.--Not more than 4 
percent of the amounts made available under this section for 
any fiscal year may be used for administrative costs to carry 
out this section.
    ``(e) Definitions.--For the purpose of this section--
            ``(1) the term `child and adolescent psychiatrist' 
        means an individual who--
                    ``(A) possesses State medical licensure; 
                and
                    ``(B) has completed residency training 
                programs in both general psychiatry and child 
                and adolescent psychiatry;
            ``(2) the term `other qualified psychologist' means 
        an individual who has demonstrated competence in 
        counseling children in a school setting and who--
                    ``(A) is licensed in psychology by the 
                State in which the individual works; and
                    ``(B) practices in the scope of the 
                individual's education, training, and 
                experience with children in school settings;
            ``(3) the term `school counselor' means an 
        individual who has documented competence in counseling 
        children and adolescents in a school setting and who--
                    ``(A) is licensed by the State or certified 
                by an independent professional regulatory 
                authority;
                    ``(B) in the absence of such State 
                licensure or certification, possesses national 
                certification in school counseling or a 
                specialty of counseling granted by an 
                independent professional organization; or
                    ``(C) holds a minimum of a master's degree 
                in school counseling from a program accredited 
                by the Council for Accreditation of Counseling 
                and Related Educational Programs or the 
                equivalent;
            ``(4) the term `school psychologist' means an 
        individual who--
                    ``(A) has completed a minimum of 60 
                graduate semester hours in school psychology 
                from an institution of higher education and has 
                completed 1,200 clock hours in a supervised 
                school psychology internship, of which 600 
                hours are in the school setting;
                    ``(B) is licensed or certified in school 
                psychology by the State in which the individual 
                works; or
                    ``(C) in the absence of such State 
                licensure or certification, possesses national 
                certification by the National School Psychology 
                Certification Board; and
            ``(5) the term `school social worker' means an 
        individual who--
                    ``(A) holds a master's degree in social 
                work from a program accredited by the Council 
                on Social Work Education; and
                    ``(B)(i) is licensed or certified by the 
                State in which services are provided; or
                    ``(ii) in the absence of such State 
                licensure or certification, possesses a 
                national credential or certification as a 
                school social work specialist granted by an 
                independent professional organization.
    ``(f) Report.--Not later than 2 years after assistance is 
made available to local educational agencies under subsection 
(c), the Secretary shall make publicly available a report--
            ``(1) evaluating the programs assisted pursuant to 
        each grant under this subpart; and
            ``(2) outlining the information from local 
        educational agencies regarding the ratios of students 
        to--
                    ``(A) school counselors;
                    ``(B) school social workers; and
                    ``(C) school psychologists.
    ``(g) Special Rule.--
            ``(1) Amount equals or exceeds $40,000,000.--If the 
        amount of funds made available by the Secretary for 
        this subpart equals or exceeds $40,000,000, the 
        Secretary shall award not less than $40,000,000 in 
        grants to local educational agencies to enable the 
        agencies to establish or expand counseling programs in 
        elementary schools.
            ``(2) Amount less than $40,000,000.--If the amount 
        of funds made available by the Secretary for this 
        subpart is less than $40,000,000, the Secretary shall 
        award grants to local educational agencies only to 
        establish or expand counseling programs in elementary 
        schools.

            ``Subpart 3--Partnerships in Character Education

``SEC. 5431. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to eligible entities for the design and 
        implementation of character education programs that--
                    ``(A) are able to be integrated into 
                classroom instruction and to be consistent with 
                State academic content standards; and
                    ``(B) are able to be carried out in 
                conjunction with other educational reform 
                efforts.
            ``(2) Eligible entity.--In this section, the term 
        `eligible entity' means--
                    ``(A) a State educational agency in 
                partnership with--
                            ``(i) one or more local educational 
                        agencies; or
                            ``(ii) one or more--
                                    ``(I) local educational 
                                agencies; and
                                    ``(II) nonprofit 
                                organizations or entities, 
                                including an institution of 
                                higher education;
                    ``(B) a local educational agency or 
                consortium of local educational agencies; or
                    ``(C) a local educational agency in 
                partnership with one or more nonprofit 
                organizations or entities, including an 
                institution of higher education.
            ``(3) Duration.--Each grant under this section 
        shall be awarded for a period not to exceed 5 years, of 
        which the eligible entity may not use more than 1 year 
        for planning and program design.
            ``(4) Amount of grants for state educational 
        agencies.--Subject to the availability of 
        appropriations, the amount of a grant made by the 
        Secretary to a State educational agency under this 
        section shall not be less than $500,000 if the State 
        educational agency--
                    ``(A) is in a partnership described in 
                paragraph (2)(A); and
                    ``(B) meets such requirements as the 
                Secretary may establish under this section.
    ``(b) Contracts Under Program.--
            ``(1) Evaluation.--Each eligible entity awarded a 
        grant under this section may contract with outside 
        sources, including institutions of higher education and 
        private and nonprofit organizations, for the purposes 
        of--
                    ``(A) evaluating the program for which the 
                assistance is made available;
                    ``(B) measuring the integration of such 
                program into the curriculum and teaching 
                methods of schools where the program is carried 
                out; and
                    ``(C) measuring the success of such program 
                in fostering the elements of character selected 
                by the recipient under subsection (c).
            ``(2) Materials and program development.--Each 
        eligible entity awarded a grant under this section may 
        contract with outside sources, including institutions 
        of higher education and private and nonprofit 
        organizations, for assistance in--
                    ``(A) developing secular curricula, 
                materials, teacher training, and other 
                activities related to character education; and
                    ``(B) integrating secular character 
                education into the curricula and teaching 
                methods of schools where the program is carried 
                out.
    ``(c) Elements of Character.--
            ``(1) Selection.--
                    ``(A) In general.--Each eligible entity 
                awarded a grant under this section may select 
                the elements of character that will be taught 
                under the program for which the grant was 
                awarded.
                    ``(B) Consideration of views.--In selecting 
                elements of character under subparagraph (A), 
                the eligible entity shall consider the views of 
                the parents of the students to be taught under 
                the program and the views of the students.
            ``(2) Example elements.--Elements of character 
        selected under this subsection may include any of the 
        following:
                    ``(A) Caring.
                    ``(B) Civic virtue and citizenship.
                    ``(C) Justice and fairness.
                    ``(D) Respect.
                    ``(E) Responsibility.
                    ``(F) Trustworthiness.
                    ``(G) Giving.
                    ``(H) Any other elements deemed appropriate 
                by the eligible entity.
    ``(d) Use of Funds by State Educational Agency 
Recipients.--Of the total funds received in any fiscal year 
under this section by an eligible entity that is a State 
educational agency--
            ``(1) not more than 3 percent of such funds may be 
        used for administrative purposes; and
            ``(2) the remainder of such funds may be used for--
                    ``(A) collaborative initiatives with and 
                between local educational agencies and schools;
                    ``(B) the preparation or purchase of 
                materials, and teacher training;
                    ``(C) providing assistance to local 
                educational agencies, schools, or institutions 
                of higher education; and
                    ``(D) technical assistance and evaluation.
    ``(e) Application.--
            ``(1) In general.--Each eligible entity desiring a 
        grant under this section shall submit an application to 
        the Secretary at such time and in such manner as the 
        Secretary may require.
            ``(2) Required information.--Each application for a 
        grant under this section shall include (together with 
        any other information that the Secretary may require) 
        information that--
                    ``(A) demonstrates that the program for 
                which the grant is sought has clear objectives 
                that are based on scientifically based 
                research;
                    ``(B) describes any partnerships or 
                collaborative efforts among the organizations 
                and entities of the eligible entity;
                    ``(C) describes the activities that will be 
                carried out with the grant funds and how such 
                activities will meet the objectives described 
                in subparagraph (A), including--
                            ``(i) how parents, students, 
                        students with disabilities (including 
                        those with mental or physical 
                        disabilities), and other members of the 
                        community, including members of private 
                        and nonprofit organizations, will be 
                        involved in the design and 
                        implementation of the program and how 
                        the eligible entity will work with the 
                        larger community to increase the reach 
                        and promise of the program;
                            ``(ii) curriculum and instructional 
                        practices that will be used or 
                        developed; and
                            ``(iii) methods of teacher training 
                        and parent education that will be used 
                        or developed;
                    ``(D) describes how the program for which 
                the grant is sought will be linked to other 
                efforts to improve academic achievement, 
                including--
                            ``(i) broader educational reforms 
                        that are being instituted by the 
                        eligible entity or its partners; and
                            ``(ii) State academic content 
                        standards;
                    ``(E) in the case of an eligible entity 
                that is a State educational agency, describes 
                how the State educational agency--
                            ``(i) will provide technical and 
                        professional assistance to its local 
                        educational agency partners in the 
                        development and implementation of 
                        character education programs; and
                            ``(ii) will assist other interested 
                        local educational agencies that are not 
                        members of the original partnership in 
                        designing and establishing character 
                        education programs;
                    ``(F) describes how the eligible entity 
                will evaluate the success of its program--
                            ``(i) based on the objectives 
                        described in subparagraph (A); and
                            ``(ii) in cooperation with any 
                        national evaluation conducted pursuant 
                        to subsection (h)(2)(B)(iii); and
                    ``(G) assures that the eligible entity 
                annually will provide to the Secretary such 
                information as may be required to determine the 
                effectiveness of the program.
    ``(f) Selection of Recipients.--
            ``(1) Peer review.--
                    ``(A) In general.--In selecting eligible 
                entities to receive grants under this section 
                from among the applicants for such grants, the 
                Secretary shall use a peer review process that 
                includes the participation of experts in the 
                field of character education and development.
                    ``(B) Use of funds.--The Secretary may use 
                funds appropriated under this section for the 
                cost of carrying out peer reviews under this 
                paragraph.
            ``(2) Selection criteria.--Each selection under 
        paragraph (1) shall be made on the basis of the quality 
        of the application submitted, taking into consideration 
        such factors as--
                    ``(A) the extent to which the program 
                fosters character in students and the potential 
                for improved student academic achievement;
                    ``(B) the extent and ongoing nature of 
                parental, student, and community involvement;
                    ``(C) the quality of the plan for measuring 
                and assessing success; and
                    ``(D) the likelihood that the objectives of 
                the program will be achieved.
            ``(3) Equitable distribution.--In making selections 
        under this subsection, the Secretary shall ensure, to 
        the extent practicable under paragraph (2), that the 
        programs assisted under this section are equitably 
        distributed among the geographic regions of the United 
        States, and among urban, suburban, and rural areas.
    ``(g) Participation by Private School Children and 
Teachers.--Each eligible entity that receives a grant under 
this section shall provide, to the extent feasible and 
appropriate, for the participation in programs and activities 
under this section of students and teachers in private 
elementary schools and secondary schools.
    ``(h) Evaluation and Program Development.--
            ``(1) State and local reporting and evaluation.--
        Each eligible entity receiving a grant under this 
        section shall submit to the Secretary a comprehensive 
        evaluation of the program assisted under this section, 
        including its impact on students, students with 
        disabilities (including those with mental or physical 
        disabilities), teachers, administrators, parents, and 
        others--
                    ``(A) by the end of the second year of the 
                program; and
                    ``(B) not later than 1 year after 
                completion of the grant period.
            ``(2) National research, dissemination, and 
        evaluation.--
                    ``(A) In general.--
                            ``(i) Authorization.--The Secretary 
                        is authorized to award grants to, or 
                        enter into contracts or cooperative 
                        agreements with, State educational 
                        agencies or local educational agencies, 
                        institutions of higher education, 
                        tribal organizations, or other public 
                        or private agencies or organizations to 
                        carry out research, development, 
                        dissemination, technical assistance, 
                        and evaluation activities that support 
                        or inform State and local character 
                        education programs.
                            ``(ii) Reservation of funds.--The 
                        Secretary shall reserve not more than 5 
                        percent of the funds made available 
                        under this section to carry out this 
                        paragraph.
                    ``(B) Uses.--Funds made available under 
                subparagraph (A) may be used for the following:
                            ``(i) Conducting research and 
                        development activities that focus on 
                        matters such as--
                                    ``(I) the extent to which 
                                schools are undertaking 
                                character education 
                                initiatives;
                                    ``(II) the effectiveness of 
                                instructional models for all 
                                students, including students 
                                with disabilities (including 
                                those with mental or physical 
                                disabilities);
                                    ``(III) materials and 
                                curricula for use by programs 
                                in character education;
                                    ``(IV) models of 
                                professional development in 
                                character education;
                                    ``(V) the development of 
                                measures of effectiveness for 
                                character education programs 
                                (which may include the factors 
                                described in paragraph (3)); 
                                and
                                    ``(VI) the effectiveness of 
                                State and local programs 
                                receiving funds under this 
                                section.
                            ``(ii) Providing technical 
                        assistance to State and local programs, 
                        particularly on matters of program 
                        evaluation.
                            ``(iii) Conducting evaluations of 
                        State and local programs receiving 
                        funding under this section, that may be 
                        conducted through a national 
                        clearinghouse under clause (iv).
                            ``(iv) Compiling and disseminating, 
                        through a national clearinghouse or 
                        other means--
                                    ``(I) information on model 
                                character education programs;
                                    ``(II) information about 
                                high quality character 
                                education materials and 
                                curricula;
                                    ``(III) research findings 
                                in the area of character 
                                education and character 
                                development; and
                                    ``(IV) any other 
                                information that will be useful 
                                to character education program 
                                participants nationwide, 
                                including educators, parents, 
                                and administrators.
                    ``(C) Partnerships.--In carrying out 
                national activities under this paragraph, the 
                Secretary may enter into partnerships with 
                national nonprofit character education 
                organizations and institutions of higher 
                education with expertise and successful 
                experience in implementing--
                            ``(i) character education programs 
                        that had an effective impact on 
                        schools, students, students with 
                        disabilities (including those with 
                        mental or physical disabilities), and 
                        teachers; or
                            ``(ii) character education program 
                        evaluation and research.
                    ``(D) Partnership for activities under 
                subparagraph (B)(iv).--In carrying out national 
                activities under subparagraph (B)(iv), the 
                Secretary may enter into a partnership with a 
                national nonprofit character education 
                organization that will disseminate information 
                to educators, parents, administrators, and 
                others nationwide, including information about 
                the range of model character education 
                programs, materials, and curricula.
                    ``(E) Report.--Each entity awarded a grant 
                or entering into a contract or cooperative 
                agreement under this paragraph shall submit an 
                annual report to the Secretary that--
                            ``(i) describes the entity's 
                        progress in carrying out research, 
                        development, dissemination, evaluation, 
                        and technical assistance under this 
                        paragraph;
                            ``(ii) identifies unmet and future 
                        information needs in the field of 
                        character education; and
                            ``(iii) if applicable, describes 
                        the progress of the entity in carrying 
                        out the requirements of subparagraph 
                        (B)(iv), including a listing of--
                                    ``(I) the number of 
                                requests for information 
                                received by the entity in the 
                                course of carrying out such 
                                requirements;
                                    ``(II) the types of 
                                organizations making such 
                                requests; and
                                    ``(III) the types of 
                                information requested.
            ``(3) Factors.--Factors that may be considered in 
        evaluating the success of programs funded under this 
        section include the following:
                    ``(A) Discipline issues.
                    ``(B) Student academic achievement.
                    ``(C) Participation in extracurricular 
                activities.
                    ``(D) Parental and community involvement.
                    ``(E) Faculty and administration 
                involvement.
                    ``(F) Student and staff morale.
                    ``(G) Overall improvements in school 
                climate for all students, including students 
                with disabilities (including those with mental 
                or physical disabilities).
    ``(i) Permissive Match.--
            ``(1) In general.--The Secretary may require 
        eligible entities to match funds awarded under this 
        section with non-Federal funds, except that the amount 
        of the match may not exceed the amount of the grant 
        award.
            ``(2) Sliding scale.--The amount of a match under 
        paragraph (1) shall be established based on a sliding 
        scale that takes into account--
                    ``(A) the poverty of the population to be 
                targeted by the eligible entity; and
                    ``(B) the ability of the eligible entity to 
                obtain funding for the match.
            ``(3) In-kind contributions.--The Secretary shall 
        permit eligible entities to match funds in whole or in 
        part with in-kind contributions.
            ``(4) Consideration.--Notwithstanding this 
        subsection, the Secretary in making awards under this 
        section shall not consider the ability of an eligible 
        entity to match funds.

               ``Subpart 4--Smaller Learning Communities

``SEC. 5441. SMALLER LEARNING COMMUNITIES.

    ``(a) Grant Authority.--The Secretary is authorized to 
award grants to local educational agencies to enable the 
agencies to create a smaller learning community or communities.
    ``(b) Application.--Each local educational agency desiring 
a grant under this subpart shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. The application shall 
include descriptions of the following:
            ``(1) Strategies and methods the local educational 
        agency will use to create the smaller learning 
        community or communities.
            ``(2) Curriculum and instructional practices, 
        including any particular themes or emphases, to be used 
        in the smaller learning environment.
            ``(3) The extent of involvement of teachers and 
        other school personnel in investigating, designing, 
        implementing, and sustaining the smaller learning 
        community or communities.
            ``(4) The process to be used for involving 
        students, parents, and other stakeholders in the 
        development and implementation of the smaller learning 
        community or communities.
            ``(5) Any cooperation or collaboration among 
        community agencies, organizations, businesses, and 
        others to develop or implement a plan to create the 
        smaller learning community or communities.
            ``(6) The training and professional development 
        activities that will be offered to teachers and others 
        involved in the activities assisted under this subpart.
            ``(7) The objectives of the activities assisted 
        under this subpart, including a description of how such 
        activities will better enable all students to reach 
        challenging State academic content standards and State 
        student academic achievement standards.
            ``(8) The methods by which the local educational 
        agency will assess progress in meeting the objectives 
        described in paragraph (7).
            ``(9) If the smaller learning community or 
        communities exist as a school-within-a-school, the 
        relationship, including governance and administration, 
        of the smaller learning community to the remainder of 
        the school.
            ``(10) The administrative and managerial 
        relationship between the local educational agency and 
        the smaller learning community or communities, 
        including how such agency will demonstrate a commitment 
        to the continuity of the smaller learning community or 
        communities (including the continuity of student and 
        teacher assignment to a particular learning community).
            ``(11) How the local educational agency will 
        coordinate or use funds provided under this subpart 
        with other funds provided under this Act or other 
        Federal laws.
            ``(12) The grade levels or ages of students who 
        will participate in the smaller learning community or 
        communities.
            ``(13) The method of placing students in the 
        smaller learning community or communities, such that 
        students are not placed according to ability or any 
        other measure, but are placed at random or by their own 
        choice, and not pursuant to testing or other judgments.
    ``(c) Authorized Activities.--Funds under this section may 
be used for one or more of the following:
            ``(1) To study--
                    ``(A) the feasibility of creating the 
                smaller learning community or communities; and
                    ``(B) effective and innovative 
                organizational and instructional strategies 
                that will be used in the smaller learning 
                community or communities.
            ``(2) To research, develop, and implement--
                    ``(A) strategies for creating the smaller 
                learning community or communities; and
                    ``(B) strategies for effective and 
                innovative changes in curriculum and 
                instruction, geared to challenging State 
                academic content standards and State student 
                academic achievement standards.
            ``(3) To provide professional development for 
        school staff in innovative teaching methods that--
                    ``(A) challenge and engage students; and
                    ``(B) will be used in the smaller learning 
                community or communities.
            ``(4) To develop and implement strategies to 
        include parents, business representatives, local 
        institutions of higher education, community-based 
        organizations, and other community members in the 
        smaller learning communities as facilitators of 
        activities that enable teachers to participate in 
        professional development activities and provide links 
        between students and their community.

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

``SEC. 5451. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
                    MOTIVATION.

    ``(a) Purpose.--The purpose of this subpart is to establish 
and implement a model partnership between a governmental entity 
and a private entity, to help prepare young children for 
reading and to motivate older children to read, through the 
distribution of inexpensive books. Local reading motivation 
programs assisted under this section shall use such assistance 
to provide books, training for volunteers, motivational 
activities, and other essential literacy resources and shall 
assign the highest priority to serving the youngest and 
neediest children in the United States.
    ``(b) Authorization.--The Secretary is authorized to enter 
into a contract with Reading Is Fundamental (RIF) (hereafter in 
this section referred to as the `contractor') to support and 
promote programs, which include the distribution of inexpensive 
books to young and school-age children, that motivate children 
to read.
    ``(c) Requirements of Contract.--Any contract entered into 
under subsection (b) shall contain each of the following:
            ``(1) A provision that the contractor will enter 
        into subcontracts with local private nonprofit groups 
        or organizations, or with public agencies, under which 
        each subcontractor will agree to establish, operate, 
        and provide the non-Federal share of the cost of 
        reading motivation programs that include the 
        distribution of books, by gift (to the extent feasible) 
        or by loan, to children from birth through secondary 
        school age, including children in family literacy 
        programs.
            ``(2) A provision that funds made available to 
        subcontractors will be used only to pay the Federal 
        share of the cost of such programs.
            ``(3) A provision that, in selecting subcontractors 
        for initial funding, the contractor will give priority 
        to programs that will serve a substantial number or 
        percentage of children with special needs, such as the 
        following:
                    ``(A) Low-income children, particularly in 
                high-poverty areas.
                    ``(B) Children at risk of school failure.
                    ``(C) Children with disabilities.
                    ``(D) Foster children.
                    ``(E) Homeless children.
                    ``(F) Migrant children.
                    ``(G) Children without access to libraries.
                    ``(H) Institutionalized or incarcerated 
                children.
                    ``(I) Children whose parents are 
                institutionalized or incarcerated.
            ``(4) A provision that the contractor will provide 
        such training and technical assistance to 
        subcontractors as may be necessary to carry out the 
        purpose of this subpart.
            ``(5) A provision that the contractor will annually 
        report to the Secretary the number, and a description, 
        of programs funded under paragraph (3).
            ``(6) Such other terms and conditions as the 
        Secretary determines to be appropriate to ensure the 
        effectiveness of such programs.
    ``(d) Restriction on Payments.--The Secretary shall make no 
payment of the Federal share of the cost of acquiring and 
distributing books under any contract under this section unless 
the Secretary determines that the contractor or subcontractor, 
as the case may be, has made arrangements with book publishers 
or distributors to obtain books at discounts at least as 
favorable as discounts that are customarily given by such 
publisher or distributor for book purchases made under similar 
circumstances in the absence of Federal assistance.
    ``(e) Special Rules for Certain Subcontractors.--
            ``(1) Funds from other federal sources.--
        Subcontractors operating programs under this section in 
        low-income communities with a substantial number or 
        percentage of children with special needs, as described 
        in subsection (c)(3), may use funds from other Federal 
        sources to pay the non-Federal share of the cost of the 
        program, if those funds do not comprise more than 50 
        percent of the non-Federal share of the funds used for 
        the cost of acquiring and distributing books.
            ``(2) Waiver authority.--Notwithstanding subsection 
        (c), the contractor may waive, in whole or in part, the 
        requirement in subsection (c)(1) for a subcontractor, 
        if the subcontractor demonstrates that it would 
        otherwise not be able to participate in the program, 
        and enters into an agreement with the contractor with 
        respect to the amount of the non-Federal share to which 
        the waiver will apply. In a case in which such a waiver 
        is granted, the requirement in subsection (c)(2) shall 
        not apply.
    ``(f) Multi-Year Contracts.--The contractor may enter into 
a multi-year subcontract under this section, if--
            ``(1) the contractor believes that such subcontract 
        will provide the subcontractor with additional leverage 
        in seeking local commitments; and
            ``(2) the subcontract does not undermine the 
        finances of the national program.
    ``(g) Federal Share Defined.--In this section, the term 
`Federal share' means, with respect to the cost to a 
subcontractor of purchasing books to be paid for under this 
section, 75 percent of such costs to the subcontractor, except 
that the Federal share for programs serving children of migrant 
or seasonal farmworkers shall be 100 percent of such costs to 
the subcontractor.

               ``Subpart 6--Gifted and Talented Students

``SEC. 5461. SHORT TITLE.

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

``SEC. 5462. PURPOSE.

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

``SEC. 5463. RULE OF CONSTRUCTION.

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

``SEC. 5464. AUTHORIZED PROGRAMS.

    ``(a) Establishment of Program.--
            ``(1) In general.--The Secretary (after 
        consultation with experts in the field of the education 
        of gifted and talented students) is authorized to make 
        grants to, or enter into contracts with, State 
        educational agencies, local educational agencies, 
        institutions of higher education, other public 
        agencies, and other private agencies and organizations 
        (including Indian tribes and Indian organizations (as 
        such terms are defined in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b)) and Native Hawaiian organizations) to assist 
        such agencies, institutions, and organizations in 
        carrying out programs or projects authorized by this 
        subpart that are designed to meet the educational needs 
        of gifted and talented students, including the training 
        of personnel in the education of gifted and talented 
        students and in the use, where appropriate, of gifted 
        and talented services, materials, and methods for all 
        students.
            ``(2) Application.--Each entity seeking assistance 
        under this subpart shall submit an application to the 
        Secretary at such time, in such manner, and containing 
        such information as the Secretary may reasonably 
        require. Each such application shall describe how--
                    ``(A) the proposed gifted and talented 
                services, materials, and methods can be 
                adapted, if appropriate, for use by all 
                students; and
                    ``(B) the proposed programs can be 
                evaluated.
    ``(b) Use of Funds.--Programs and projects assisted under 
this section may include each of the following:
            ``(1) Conducting--
                    ``(A) scientifically based research on 
                methods and techniques for identifying and 
                teaching gifted and talented students and for 
                using gifted and talented programs and methods 
                to serve all students; and
                    ``(B) program evaluations, surveys, and the 
                collection, analysis, and development of 
                information needed to accomplish the purpose of 
                this subpart.
            ``(2) Carrying out professional development 
        (including fellowships) for personnel (including 
        leadership personnel) involved in the education of 
        gifted and talented students.
            ``(3) Establishing and operating model projects and 
        exemplary programs for serving gifted and talented 
        students, including innovative methods for identifying 
        and educating students who may not be served by 
        traditional gifted and talented programs (such as 
        summer programs, mentoring programs, service learning 
        programs, and cooperative programs involving business, 
        industry, and education).
            ``(4) Implementing innovative strategies, such as 
        cooperative learning, peer tutoring, and service 
        learning.
            ``(5) Carrying out programs of technical assistance 
        and information dissemination, including assistance and 
        information with respect to how gifted and talented 
        programs and methods, where appropriate, may be adapted 
        for use by all students.
            ``(6) Making materials and services available 
        through State regional educational service centers, 
        institutions of higher education, or other entities.
            ``(7) Providing funds for challenging, high-level 
        course work, disseminated through technologies 
        (including distance learning), for individual students 
        or groups of students in schools and local educational 
        agencies that would not otherwise have the resources to 
        provide such course work.
    ``(c) Special Rule.--To the extent that funds appropriated 
to carry out this subpart for a fiscal year beginning with 
fiscal year 2002 exceed such funds appropriated for fiscal year 
2001, the Secretary shall use such excess funds to award 
grants, on a competitive basis, to State educational agencies, 
local educational agencies, or both, to implement activities 
described in subsection (b).
    ``(d) Center for Research and Development.--
            ``(1) In general.--The Secretary (after 
        consultation with experts in the field of the education 
        of gifted and talented students) shall establish a 
        National Research Center for the Education of Gifted 
        and Talented Children and Youth through grants to, or 
        contracts with, one or more institutions of higher 
        education or State educational agencies, or a 
        combination or consortium of such institutions and 
        agencies and other public or private agencies and 
        organizations, for the purpose of carrying out 
        activities described in subsection (b).
            ``(2) Director.--The National Center shall be 
        headed by a Director. The Secretary may authorize the 
        Director to carry out such functions of the National 
        Center as may be agreed upon through arrangements with 
        institutions of higher education, State educational 
        agencies, local educational agencies, or other public 
        or private agencies and organizations.
            ``(3) Funding.--The Secretary may use not more than 
        30 percent of the funds made available under this 
        subpart for fiscal year 2001 to carry out this 
        subsection.
    ``(e) Coordination.--Scientifically based research 
activities supported under this subpart--
            ``(1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        ensure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by such Office; and
            ``(2) may include collaborative scientifically 
        based research activities which are jointly funded and 
        carried out with such Office.

``SEC. 5465. PROGRAM PRIORITIES.

    ``(a) General Priority.--In carrying out this subpart, the 
Secretary shall give highest priority to programs and projects 
designed to develop new information that--
            ``(1) improves the capability of schools to plan, 
        conduct, and improve programs to identify and serve 
        gifted and talented students; and
            ``(2) assists schools in the identification of, and 
        provision of services to, gifted and talented students 
        (including economically disadvantaged individuals, 
        individuals with limited English proficiency, and 
        individuals with disabilities) who may not be 
        identified and served through traditional assessment 
        methods.
    ``(b) Service Priority.--The Secretary shall ensure that 
not less than 50 percent of the applications approved under 
section 5464(a)(2) in a fiscal year address the priority 
described in subsection (a)(2).

``SEC. 5466. GENERAL PROVISIONS.

    ``(a) Participation of Private School Children and 
Teachers.--In making grants and entering into contracts under 
this subpart, the Secretary shall ensure, where appropriate, 
that provision is made for the equitable participation of 
students and teachers in private nonprofit elementary schools 
and secondary schools, including the participation of teachers 
and other personnel in professional development programs 
serving such students.
    ``(b) Review, Dissemination, and Evaluation.--The Secretary 
shall--
            ``(1) use a peer review process in reviewing 
        applications under this subpart;
            ``(2) ensure that information on the activities and 
        results of programs and projects funded under this 
        subpart is disseminated to appropriate State 
        educational agencies, local educational agencies, and 
        other appropriate organizations, including nonprofit 
        private organizations; and
            ``(3) evaluate the effectiveness of programs under 
        this subpart in accordance with section 9601, in terms 
        of the impact on students traditionally served in 
        separate gifted and talented programs and on other 
        students, and submit the results of such evaluation to 
        Congress not later than 2 years after the date of 
        enactment of the No Child Left Behind Act of 2001.
    ``(c) Program Operations.--The Secretary shall ensure that 
the programs under this subpart are administered within the 
Department by a person who has recognized professional 
qualifications and experience in the field of the education of 
gifted and talented students and who shall--
            ``(1) administer and coordinate the programs 
        authorized under this subpart;
            ``(2) serve as a focal point of national leadership 
        and information on the educational needs of gifted and 
        talented students and the availability of educational 
        services and programs designed to meet such needs;
            ``(3) assist the Assistant Secretary for 
        Educational Research and Improvement in identifying 
        research priorities that reflect the needs of gifted 
        and talented students; and
            ``(4) shall disseminate, and consult on, the 
        information developed under this subpart with other 
        offices within the Department.

                   ``Subpart 7--Star Schools Program

``SEC. 5471. SHORT TITLE.

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

``SEC. 5472. PURPOSES.

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

``SEC. 5473. GRANT PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary, in conjunction with 
the Office of Educational Technology, is authorized to make 
grants, in accordance with the provisions of this subpart, to 
eligible entities to pay the Federal share of the cost of the 
following:
            ``(1) Development, construction, acquisition, 
        maintenance, and operation of telecommunications 
        facilities and equipment.
            ``(2) Development and acquisition of live, 
        interactive instructional programming.
            ``(3) Development and acquisition of preservice and 
        inservice teacher training programs based on 
        established research regarding teacher-to-teacher 
        mentoring, and ongoing, in-class instruction.
            ``(4) Establishment of teleconferencing facilities 
        and resources for making interactive training available 
        to teachers.
            ``(5) Obtaining technical assistance.
            ``(6) Coordination of the design and connectivity 
        of telecommunications networks to reach the greatest 
        number of schools.
    ``(b) Duration and Amount.--
            ``(1) In general.--A grant under this section may 
        not exceed--
                    ``(A) 5 years in duration (subject to 
                subsection (c)); and
                    ``(B) $10,000,000 in any single fiscal 
                year.
    ``(c) Renewal.--
            ``(1) In general.--Grants awarded under subsection 
        (a) may be renewed for a single additional period of 3 
        years.
            ``(2) Continuing Eligibility.--In order to be 
        eligible to receive a grant renewal under this 
        subsection, a grant recipient shall demonstrate, to the 
        satisfaction of the Secretary, in an addendum to its 
        application submitted under section 5474, that the 
        grant recipient will--
                    ``(A) continue to provide services in the 
                subject areas and geographic areas assisted 
                with funds received under this subpart for the 
                previous grant period; and
                    ``(B) use all grant funds received under 
                this subpart for the 3-year renewal period to 
                provide expanded services by--
                            ``(i) increasing the number of 
                        students, schools, or school districts 
                        served by the courses of instruction 
                        assisted under this part in the 
                        previous fiscal year;
                            ``(ii) providing new courses of 
                        instruction; and
                            ``(iii) serving new populations of 
                        underserved individuals, such as 
                        children or adults who are 
                        disadvantaged, have limited English 
                        proficiency, are individuals with 
                        disabilities, are illiterate, or lack 
                        secondary school diplomas or their 
                        recognized equivalent.
            ``(3) Supplement, not supplant.--Grant funds 
        received under this subsection shall be used to 
        supplement, and not supplant, services provided by the 
        grant recipient under this subpart in the previous 
        fiscal year.
    ``(d) Reservations.--
            ``(1) Instructional programming.--At least 25 
        percent of the funds made available to the Secretary 
        for any fiscal year under this subpart shall be used 
        for the cost of instructional programming.
            ``(2) Local educational agency assistance.--At 
        least 50 percent of the funds available in any fiscal 
        year under this subpart shall be used for the cost of 
        facilities, equipment, teacher training or retraining, 
        technical assistance, or programming, for local 
        educational agencies that are eligible to receive 
        assistance under part A of title I.
    ``(e) Federal Share.--
            ``(1) Amount.--The Federal share of the cost of 
        projects funded under this section shall not exceed the 
        following amounts:
                    ``(A) 75 percent for the first and second 
                years for which an eligible telecommunications 
                partnership receives a grant under this 
                subpart.
                    ``(B) 60 percent for the third and fourth 
                such years.
                    ``(C) 50 percent for the fifth such year.
            ``(2) Reduction or waiver.--The Secretary may 
        reduce or waive the corresponding non-Federal share 
        under paragraph (1) upon a showing of financial 
        hardship.
    ``(f) Required Local Educational Agency Participation.--The 
Secretary is authorized to make a grant under this section to 
any eligible entity, if at least one local educational agency 
is participating in the proposed program.
    ``(g) Assistance Obtaining Satellite Time.--The Secretary 
may assist recipients of grants made under this section in 
acquiring satellite time, where appropriate, as economically as 
possible.

``SEC. 5474. APPLICATIONS.

    ``(a) Submission.--Each eligible entity that desires to 
receive a grant under section 5473 shall submit an application 
to the Secretary, at such time, in such manner, and containing 
or accompanied by such information as the Secretary may 
reasonably require.
    ``(b) Contents.--An application submitted under subsection 
(a) shall include each of the following:
            ``(1) A description of how the proposed program 
        will assist all students to have an opportunity to meet 
        challenging State academic achievement standards, how 
        such program will assist State and local educational 
        reform efforts, and how such program will contribute to 
        creating a high-quality system of educational 
        development.
            ``(2) A description of the telecommunications 
        facilities and equipment and technical assistance for 
        which assistance is sought, which may include--
                    ``(A) the design, development, 
                construction, acquisition, maintenance, and 
                operation of State or multistate educational 
                telecommunications networks and technology 
                resource centers;
                    ``(B) microwave, fiber optics, cable, and 
                satellite transmission equipment or any 
                combination thereof;
                    ``(C) reception facilities;
                    ``(D) satellite time;
                    ``(E) production facilities;
                    ``(F) other telecommunications equipment 
                capable of serving a wide geographic area;
                    ``(G) the provision of training services to 
                instructors who will be using the facilities 
                and equipment for which assistance is sought, 
                including training in using such facilities and 
                equipment and training in integrating programs 
                into the classroom curriculum; and
                    ``(H) the development of educational and 
                related programming for use on a 
                telecommunications network.
            ``(3) In the case of an application for assistance 
        for instructional programming, a description of the 
        types of programming that will be developed to enhance 
        instruction and training and provide an assurance that 
        such programming will be designed in consultation with 
        professionals (including classroom teachers) who are 
        experts in the applicable subject matter and grade 
        level.
            ``(4) A description of how the eligible entity has 
        engaged in sufficient survey and analysis of the area 
        to be served to ensure that the services offered by the 
        eligible entity will increase the availability of 
        courses of instruction in English, mathematics, 
        science, foreign languages, arts, history, geography, 
        or other disciplines.
            ``(5) A description of the professional development 
        policies for teachers and other school personnel to be 
        implemented to ensure the effective use of the 
        telecommunications facilities and equipment for which 
        assistance is sought.
            ``(6) A description of the manner in which 
        historically underserved students (such as students 
        from low-income families, limited English proficient 
        students, students with disabilities, or students who 
        have low literacy skills) and their families, will 
        participate in the benefits of the telecommunications 
        facilities, equipment, technical assistance, and 
        programming assisted under this subpart.
            ``(7) A description of how existing 
        telecommunications equipment, facilities, and services, 
        where available, will be used.
            ``(8) An assurance that the financial interest of 
        the United States in the telecommunications facilities 
        and equipment will be protected for the useful life of 
        such facilities and equipment.
            ``(9) An assurance that a significant portion of 
        any facilities and equipment, technical assistance, and 
        programming for which assistance is sought for 
        elementary schools and secondary schools will be made 
        available to schools or local educational agencies that 
        have a high number or percentage of children eligible 
        to be counted under part A of title I.
            ``(10) An assurance that the applicant will use the 
        funds provided under this subpart to supplement, and 
        not supplant, funds available for the purposes of this 
        subpart.
            ``(11) A description of how funds received under 
        this subpart will be coordinated with funds received 
        for educational technology in the classroom.
            ``(12) A description of the activities or services 
        for which assistance is sought, such as--
                    ``(A) providing facilities, equipment, 
                training services, and technical assistance;
                    ``(B) making programs accessible to 
                students with disabilities through mechanisms 
                such as closed captioning and descriptive video 
                services;
                    ``(C) linking networks around issues of 
                national importance (such as elections) or to 
                provide information about employment 
                opportunities, job training, or student and 
                other social service programs;
                    ``(D) sharing curriculum resources between 
                networks and development of program guides 
                which demonstrate cooperative, cross-network 
                listing of programs for specific curriculum 
                areas;
                    ``(E) providing teacher and student support 
                services, including classroom and training 
                support materials which permit student and 
                teacher involvement in the live interactive 
                distance learning telecasts;
                    ``(F) incorporating community resources, 
                such as libraries and museums, into 
                instructional programs;
                    ``(G) providing professional development 
                for teachers, including, as appropriate, 
                training to early childhood development and 
                Head Start teachers and staff and vocational 
                education teachers and staff, and adult and 
                family educators;
                    ``(H) providing programs for adults to 
                maximize the use of telecommunications 
                facilities and equipment;
                    ``(I) providing teacher training on 
                proposed or established models of exemplary 
                academic content standards in mathematics and 
                science and other disciplines as such standards 
                are developed; and
                    ``(J) providing parent education programs 
                during and after the regular school day which 
                reinforce a student's course of study and 
                actively involve parents in the learning 
                process.
            ``(13) A description of how the proposed program as 
        a whole will be financed and how arrangements for 
        future financing will be developed before the program 
        expires.
            ``(14) An assurance that a significant portion of 
        any facilities, equipment, technical assistance, and 
        programming for which assistance is sought for 
        elementary schools and secondary schools will be made 
        available to schools in local educational agencies that 
        have a high percentage of children counted for the 
        purpose of part A of title I.
            ``(15) An assurance that the applicant will provide 
        such information and cooperate in any evaluation that 
        the Secretary may conduct under this subpart.
            ``(16) Such additional assurances as the Secretary 
        may reasonably require.
    ``(c) Approval.--In approving applications submitted under 
subsection (a) for grants under section 5473, the Secretary 
shall--
            ``(1) to the extent feasible, ensure an equitable 
        geographic distribution of services provided under this 
        subpart.
            ``(2) give priority to applications describing 
        programs that--
                    ``(A) propose high-quality plans, will 
                provide instruction consistent with State 
                academic content standards, or will otherwise 
                provide significant and specific assistance to 
                States and local educational agencies 
                undertaking systemic education reform;
                    ``(B) will provide services to programs 
                serving adults, especially parents, with low 
                levels of literacy;
                    ``(C) will serve schools with significant 
                numbers of children counted for the purposes of 
                part A of title I;
                    ``(D) ensure that the eligible entity 
                will--
                            ``(i) serve the broadest range of 
                        institutions, programs providing 
                        instruction outside of the school 
                        setting, programs serving adults, 
                        especially parents, with low levels of 
                        literacy, institutions of higher 
                        education, teacher training centers, 
                        research institutes, and private 
                        industry;
                            ``(ii) have substantial academic 
                        and teaching capabilities, including 
                        the capability of training, retraining, 
                        and inservice upgrading of teaching 
                        skills and the capability to provide 
                        professional development;
                            ``(iii) provide a comprehensive 
                        range of courses for educators to teach 
                        instructional strategies for students 
                        with different skill levels;
                            ``(iv) provide training to 
                        participating educators in ways to 
                        integrate telecommunications courses 
                        into existing school curriculum;
                            ``(v) provide instruction for 
                        students, teachers, and parents;
                            ``(vi) serve a multistate area; and
                            ``(vii) give priority to the 
                        provision of equipment and linkages to 
                        isolated areas; and
                    ``(E) involve a telecommunications entity 
                (such as a satellite, cable, telephone, 
                computer, or public or private television 
                stations) participating in the eligible entity 
                and donating equipment or in-kind services for 
                telecommunications linkages.

``SEC. 5475. OTHER GRANT ASSISTANCE.

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

``SEC. 5476. ADMINISTRATIVE PROVISIONS.

    ``(a) Leadership, Evaluation, and Peer Review.--
            ``(1) Reservation of funds.--The Secretary may 
        reserve not more than 5 percent of the amount made 
        available to carry out this subpart for a fiscal year 
        for national leadership, evaluation, and peer review 
        activities, which the Secretary may carry out directly 
        or through grants, contracts, and cooperative 
        agreements.
            ``(2) Leadership.--Funds reserved for leadership 
        activities under paragraph (1) may be used for--
                    ``(A) disseminating information, including 
                lists and descriptions of services available 
                from grant recipients under this subpart; and
                    ``(B) other activities designed to enhance 
                the quality of distance learning activities 
                nationwide.
            ``(3) Evaluation.--Funds reserved for evaluation 
        activities under paragraph (1) may be used to conduct 
        independent evaluations of the activities assisted 
        under this subpart and of distance learning in general, 
        including--
                    ``(A) analyses of distance learning efforts 
                (including such efforts that are, or are not, 
                assisted under this subpart); and
                    ``(B) comparisons of the effects (including 
                student outcomes) of different technologies in 
                distance learning efforts.
            ``(4) Peer review.--Funds reserved for peer review 
        activities under paragraph (1) may be used for peer 
        review of--
                    ``(A) applications for grants under this 
                subpart; and
                    ``(B) activities assisted under this 
                subpart.
    ``(b) Coordination.--The Department, the National Science 
Foundation, the Department of Agriculture, the Department of 
Commerce, and any other Federal department or agency operating 
a telecommunications network for educational purposes, shall 
coordinate the activities assisted under this subpart with the 
activities of such department or agency relating to a 
telecommunications network for educational purposes.
    ``(c) Funds From Other Agencies.--The Secretary may accept 
funds from other Federal departments or agencies to carry out 
the purposes of this subpart, including funds for the purchase 
of equipment.
    ``(d) Availability of Funds.--Funds made available to carry 
out this subpart shall remain available until expended.
    ``(e) Closed Captioning and Descriptive Video.--The 
Secretary shall encourage each entity receiving funds under 
this subpart to provide--
            ``(1) closed captioning of the verbal content of 
        the entity's programming, as appropriate; and
            ``(2) descriptive video of the visual content of 
        the entity's programming, as appropriate.

``SEC. 5477. DEFINITIONS.

    ``In this subpart:
            ``(1) Educational institution.--The term 
        `educational institution' means an institution of 
        higher education, a local educational agency, or a 
        State educational agency.
            ``(2) Eligible entity.--The term `eligible entity' 
        includes any of the following that is organized on a 
        Statewide or multistate basis:
                    ``(A) A public agency or corporation 
                established for the purpose of developing and 
                operating telecommunications networks to 
                enhance educational opportunities provided by 
                educational institutions, teacher training 
                centers, and other entities, except that any 
                such agency or corporation shall represent the 
                interests of elementary schools and secondary 
                schools that are eligible to participate in the 
                program under part A of title I.
                    ``(B) A partnership that will provide 
                telecommunications services and that includes 
                three or more of the following entities, at 
                least one of which shall be an agency described 
                in clause (i) or (ii):
                            ``(i) A local educational agency 
                        that serves a significant number of 
                        elementary schools and secondary 
                        schools that are eligible for 
                        assistance under part A of title I, or 
                        elementary schools and secondary 
                        schools operated or funded for Indian 
                        children by the Department of the 
                        Interior eligible under section 
                        1121(d)(1)(A).
                            ``(ii) A State educational agency.
                            ``(iii) An adult and family 
                        education program.
                            ``(iv) An institution of higher 
                        education or a State higher education 
                        agency (as that term is defined in 
                        section 103 of the Higher Education Act 
                        of 1965 (20 U.S.C. 1003)).
                            ``(v) A teacher training center or 
                        academy that--
                                    ``(I) provides teacher 
                                preservice and inservice 
                                training; and
                                    ``(II) receives Federal 
                                financial assistance or has 
                                been approved by a State 
                                agency;
                            ``(vi)(I) A public or private 
                        entity with experience and expertise in 
                        the planning and operation of a 
                        telecommunications network, including 
                        entities involved in telecommunications 
                        through satellite, cable, telephone, or 
                        computer; or
                            ``(II) a public broadcasting entity 
                        with such experience.
                            ``(vii) A public or private 
                        elementary school or secondary school.
            ``(3) Instructional programming.--The term 
        `instructional programming' means courses of 
        instruction and training courses for elementary and 
        secondary students, teachers, and others, and materials 
        for use in such instruction and training that have been 
        prepared in audio and visual form on tape, disc, film, 
        or live, and presented by means of telecommunications 
        devices.
            ``(4) Public broadcasting entity.--The term `public 
        broadcasting entity' has the same meaning given such 
        term in section 397 of the Communications Act of 1934 
        (47 U.S.C. 397).

                      ``Subpart 8--Ready to Teach

``SEC. 5481. GRANTS.

    ``(a) In General.--The Secretary is authorized to award 
grants to a nonprofit telecommunications entity, or partnership 
of such entities, for the purpose of carrying out a national 
telecommunications-based program to improve teaching in core 
curriculum areas. The program shall be designed to assist 
elementary school and secondary school teachers in preparing 
all students to achieve challenging State academic content and 
student academic achievement standards in core curriculum 
areas.
    ``(b) Digital Educational Programming.--The Secretary is 
authorized to award grants, as provided for in section 5484, to 
eligible entities described in subsection (b) of such section, 
to enable such entities to develop, produce, and distribute 
innovative educational and instructional video programming that 
is designed for use by elementary schools and secondary schools 
and based on challenging State academic content and student 
academic achievement standards. In awarding such grants, the 
Secretary shall ensure that eligible entities enter into 
multiyear content development collaborative arrangements with 
State educational agencies, local educational agencies, 
institutions of higher education, businesses, or other agencies 
or organizations.

``SEC. 5482. APPLICATION REQUIRED.

    ``(a) General Application.--
            ``(1) In general.--To be eligible to receive a 
        grant under section 5481(a), a nonprofit 
        telecommunications entity, or partnership of such 
        entities shall submit an application to the Secretary. 
        Each such application shall--
                    ``(A) demonstrate that the applicant will 
                use the public broadcasting infrastructure, the 
                Internet, and school digital networks, where 
                available, to deliver video and data in an 
                integrated service to train teachers in the use 
                of materials and learning technologies for 
                achieving challenging State academic content 
                and student academic achievement standards;
                    ``(B) ensure that the project for which 
                assistance is sought will be conducted in 
                cooperation with appropriate State educational 
                agencies, local educational agencies, and State 
                or local nonprofit public telecommunications 
                entities;
                    ``(C) ensure that a significant portion of 
                the benefits available for elementary schools 
                and secondary schools from the project for 
                which assistance is sought will be available to 
                schools of local educational agencies that have 
                a high percentage of children counted for the 
                purpose of part A of title I; and
                    ``(D) contain such additional assurances as 
                the Secretary may reasonably require.
            ``(2) Sites.--In approving applications under 
        paragraph (1), the Secretary shall ensure that the 
        program authorized by section 5481(a) is conducted at 
        elementary school and secondary school sites throughout 
        the United States.
    ``(b) Programming Application.--To be eligible to receive a 
grant under section 5481(b), an entity shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.

``SEC. 5483. REPORTS AND EVALUATION.

    ``An entity receiving a grant under section 5481(a) shall 
prepare and submit to the Secretary an annual report that 
contains such information as the Secretary may require. At a 
minimum, such report shall describe the program activities 
undertaken with funds received under the grant, including--
            ``(1) the core curriculum areas for which program 
        activities have been undertaken and the number of 
        teachers using the program in each core curriculum 
        area; and
            ``(2) the States in which teachers using the 
        program are located.

``SEC. 5484. DIGITAL EDUCATIONAL PROGRAMMING GRANTS.

    ``(a) Grants.--The Secretary is authorized to award grants 
under section 5481(b) to eligible entities to facilitate the 
development of educational programming that shall--
            ``(1) include student assessment tools to provide 
        feedback on student academic achievement;
            ``(2) include built-in teacher utilization and 
        support components to ensure that teachers understand 
        and can easily use the content of the programming with 
        group instruction or for individual student use;
            ``(3) be created for, or adaptable to, challenging 
        State academic content standards and student academic 
        achievement standards; and
            ``(4) be capable of distribution through digital 
        broadcasting and school digital networks.
    ``(b) Eligible Entities.--To be eligible to receive a grant 
under section 5481(b), an entity shall be a local public 
telecommunications entity, as defined in section 397(12) of the 
Communications Act of 1934, that is able to demonstrate a 
capacity for the development and distribution of educational 
and instructional television programming of high quality.
    ``(c) Competitive Basis.--Grants under section 5481(b) 
shall be awarded on a competitive basis as determined by the 
Secretary.
    ``(d) Matching Requirement.--To be eligible to receive a 
grant under section 5481(b), an entity shall contribute to the 
activities assisted under such grant non-Federal matching funds 
in an amount equal to not less than 100 percent of the amount 
of the grant. Such matching funds may include funds provided 
for the transition to digital broadcasting, as well as in-kind 
contributions.
    ``(e) Duration.--A grant under section 5481(b) shall be 
awarded for a period of 3 years in order to provide a 
sufficient period of time for the creation of a substantial 
body of significant content.

``SEC. 5485. ADMINISTRATIVE COSTS.

    ``An entity that receives a grant under this subpart may 
not use more than 5 percent of the amount received under the 
grant for administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

``SEC. 5491. SHORT TITLE.

    ``This subpart may be cited as the `Foreign Language 
Assistance Act of 2001'.

``SEC. 5492. PROGRAM AUTHORIZED.

    ``(a) Program Authority.--
            ``(1) In general.--The Secretary is authorized to 
        make grants, on a competitive basis, to State 
        educational agencies or local educational agencies to 
        pay the Federal share of the cost of innovative model 
        programs providing for the establishment, improvement, 
        or expansion of foreign language study for elementary 
        school and secondary school students.
            ``(2) Duration.--Each grant under paragraph (1) 
        shall be awarded for a period of 3 years.
    ``(b) Requirements.--
            ``(1) Grants to state educational agencies.--In 
        awarding a grant under subsection (a) to a State 
        educational agency, the Secretary shall support 
        programs that promote systemic approaches to improving 
        foreign language learning in the State.
            ``(2) Grants to local educational agencies.--In 
        awarding a grant under subsection (a) to a local 
        educational agency, the Secretary shall support 
        programs that--
                    ``(A) show the promise of being continued 
                beyond the grant period;
                    ``(B) demonstrate approaches that can be 
                disseminated and duplicated in other local 
                educational agencies; and
                    ``(C) may include a professional 
                development component.
    ``(c) Federal Share.--
            ``(1) In general.--The Federal share for each 
        fiscal year shall be 50 percent.
            ``(2) Waiver.--Notwithstanding paragraph (1), the 
        Secretary may determine the Federal share for any local 
        educational agency which the Secretary determines does 
        not have adequate resources to pay the non-Federal 
        share of the cost of the activities assisted under this 
        subpart.
    ``(d) Special Rule.--Not less than \3/4\ of the funds made 
available under section 5401 to carry out this subpart shall be 
used for the expansion of foreign language learning in the 
elementary grades.
    ``(e) Reservation.--The Secretary may reserve not more than 
5 percent of funds made available under section 5401 to carry 
out this subpart for a fiscal year to evaluate the efficacy of 
programs assisted under this subpart.

``SEC. 5493. APPLICATIONS.

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

``SEC. 5494. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

    ``(a) Incentive Payments.--From amounts made available 
under section 5401 to carry out this subpart, the Secretary 
shall make an incentive payment for each fiscal year to each 
public elementary school that provides to students attending 
such school a program designed to lead to communicative 
competency in a foreign language.
    ``(b) Amount.--The Secretary shall determine the amount of 
the incentive payment under subsection (a) for each public 
elementary school for each fiscal year on the basis of the 
number of students participating in a program described in such 
subsection at such school for such year compared to the total 
number of such students at all such schools in the United 
States for such year.
    ``(c) Requirement.--The Secretary shall consider a program 
to be designed to lead to communicative competency in a foreign 
language if such program is comparable to a program that 
provides not less than 45 minutes of instruction in a foreign 
language for not fewer than 4 days per week throughout an 
academic year.

                    ``Subpart 10--Physical Education

``SEC. 5501. SHORT TITLE.

    ``This subpart may be cited as the `Carol M. White Physical 
Education Program'.

``SEC. 5502. PURPOSE.

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

``SEC. 5503. PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to award 
grants to local educational agencies and community-based 
organizations (such as Boys and Girls Clubs, Boy Scouts and 
Girl Scouts, and the Young Men's Christian Organization (YMCA) 
and Young Women's Christian Organization (YWCA)) to pay the 
Federal share of the costs of initiating, expanding, and 
improving physical education programs (including after-school 
programs) for kindergarten through 12th-grade students by--
            ``(1) providing equipment and support to enable 
        students to participate actively in physical education 
        activities; and
            ``(2) providing funds for staff and teacher 
        training and education.
    ``(b) Program Elements.--A physical education program 
funded under this subpart may provide for one or more of the 
following:
            ``(1) Fitness education and assessment to help 
        students understand, improve, or maintain their 
        physical well-being.
            ``(2) Instruction in a variety of motor skills and 
        physical activities designed to enhance the physical, 
        mental, and social or emotional development of every 
        student.
            ``(3) Development of, and instruction in, cognitive 
        concepts about motor skill and physical fitness that 
        support a lifelong healthy lifestyle.
            ``(4) Opportunities to develop positive social and 
        cooperative skills through physical activity 
        participation.
            ``(5) Instruction in healthy eating habits and good 
        nutrition.
            ``(6) Opportunities for professional development 
        for teachers of physical education to stay abreast of 
        the latest research, issues, and trends in the field of 
        physical education.
    ``(c) Special Rule.--For the purpose of this subpart, 
extracurricular activities, such as team sports and Reserve 
Officers' Training Corps (ROTC) program activities, shall not 
be considered as part of the curriculum of a physical education 
program assisted under this subpart.

``SEC. 5504. APPLICATIONS.

    ``(a) Submission.--Each local educational agency or 
community-based organization desiring a grant or contract under 
this subpart shall submit to the Secretary an application that 
contains a plan to initiate, expand, or improve physical 
education programs in order to make progress toward meeting 
State standards for physical education.
    ``(b) Private School and Home-Schooled Students.--An 
application for funds under this subpart may provide for the 
participation, in the activities funded under this subpart, 
of--
            ``(1) students enrolled in private nonprofit 
        elementary schools or secondary schools, and their 
        parents and teachers; or
            ``(2) home-schooled students, and their parents and 
        teachers.

``SEC. 5505. REQUIREMENTS.

    ``(a) Annual Report to the Secretary.--In order to continue 
receiving funding after the first year of a multiyear grant or 
contract under this subpart, the administrator of the grant or 
contract for the local educational agency or community-based 
organization shall submit to the Secretary an annual report 
that--
            ``(1) describes the activities conducted during the 
        preceding year; and
            ``(2) demonstrates that progress has been made 
        toward meeting State standards for physical education.
    ``(b) Administrative Expenses.--Not more than 5 percent of 
the grant funds made available to a local educational agency or 
community-based organization under this subpart for any fiscal 
year may be used for administrative expenses.

``SEC. 5506. ADMINISTRATIVE PROVISIONS.

    ``(a) Federal Share.--The Federal share under this subpart 
may not exceed--
            ``(1) 90 percent of the total cost of a program for 
        the first year for which the program receives 
        assistance under this subpart; and
            ``(2) 75 percent of such cost for the second and 
        each subsequent such year.
    ``(b) Proportionality.--To the extent practicable, the 
Secretary shall ensure that grants awarded under this subpart 
shall be equitably distributed among local educational agencies 
and community-based organizations serving urban and rural 
areas.
    ``(c) Report to Congress.--Not later than June 1, 2003, the 
Secretary shall submit a report to Congress that--
            ``(1) describes the programs assisted under this 
        subpart;
            ``(2) documents the success of such programs in 
        improving physical fitness; and
            ``(3) makes such recommendations as the Secretary 
        determines appropriate for the continuation and 
        improvement of the programs assisted under this 
        subpart.
    ``(d) Availability of Funds.--Amounts made available to the 
Secretary to carry out this subpart shall remain available 
until expended.

``SEC. 5507. SUPPLEMENT, NOT SUPPLANT.

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

               ``Subpart 11--Community Technology Centers

``SEC. 5511. PURPOSE AND PROGRAM AUTHORIZATION.

    ``(a) Purpose.--It is the purpose of this subpart to assist 
eligible applicants--
            ``(1) to create or expand community technology 
        centers that will provide disadvantaged residents of 
        economically distressed urban and rural communities 
        with access to information technology and related 
        training; and
            ``(2) to provide technical assistance and support 
        to community technology centers.
    ``(b) Program Authorization.--The Secretary is authorized, 
in conjunction with the Office of Educational Technology, to 
award grants, contracts, or cooperative agreements, on a 
competitive basis, for a period of not more than 3 years, to 
eligible applicants in order to assist such applicants in--
            ``(1) creating or expanding community technology 
        centers; or
            ``(2) providing technical assistance and support to 
        community technology centers.
            ``(3) Service of americorps participants.--The 
        Secretary may collaborate with the Chief Executive 
        Officer of the Corporation for National and Community 
        Service on the use in community technology centers of 
        participants in National Service programs carried out 
        under subtitle C of title I of the National and 
        Community Service Act of 1990 (42 U.S.C. 12571 et 
        seq.).

``SEC. 5512. ELIGIBILITY AND APPLICATION REQUIREMENTS.

    ``(a) Eligible Applicants.--In order to be eligible to 
receive an award under this subpart, an applicant shall--
            ``(1) be an entity (such as a foundation, museum, 
        library, for-profit business, public or private 
        nonprofit organization, or community-based 
        organization), an institution of higher education, a 
        State educational agency, a local education agency, or 
        a consortium of such entities, institutions, or 
        agencies; and
            ``(2) have the capacity to significantly expand 
        access to computers and related services for 
        disadvantaged residents of economically distressed 
        urban and rural communities (who would otherwise be 
        denied such access).
    ``(b) Application Requirements.--In order to receive an 
award under this subpart, an eligible applicant shall submit an 
application to the Secretary at such time, and containing such 
information, as the Secretary may require. The application 
shall include each of the following:
            ``(1) A description of the proposed project, 
        including a description of the magnitude of the need 
        for the services and how the project would expand 
        access to information technology and related services 
        to disadvantaged residents of an economically 
        distressed urban or rural community.
            ``(2) A demonstration of--
                    ``(A) the commitment, including the 
                financial commitment, of entities (such as 
                institutions, organizations, business and other 
                groups in the community) that will provide 
                support for the creation, expansion, and 
                continuation of the proposed project; and
                    ``(B) the extent to which the proposed 
                project coordinates with other appropriate 
                agencies, efforts, and organizations providing 
                services to disadvantaged residents of an 
                economically distressed urban or rural 
                community.
            ``(3) A description of how the proposed project 
        would be sustained once the Federal funds awarded under 
        this subpart end.
            ``(4) A plan for the evaluation of the program, 
        which shall include benchmarks to monitor progress 
        toward specific project objectives.
    ``(c) Matching Requirements.--The Federal share of the cost 
of any project funded under this subpart shall not exceed 50 
percent. The non-Federal share of such project may be in cash 
or in kind, fairly evaluated, including services.

``SEC. 5513. USES OF FUNDS.

    ``(a) Required Uses.--A recipient shall use funds under 
this subpart for--
            ``(1) creating or expanding community technology 
        centers that expand access to information technology 
        and related training for disadvantaged residents of 
        distressed urban or rural communities; and
            ``(2) evaluating the effectiveness of the project.
    ``(b) Permissible Uses.--A recipient may use funds under 
this subpart for activities, described in its application, that 
carry out the purposes of this subpart, such as--
            ``(1) supporting a center coordinator, and staff, 
        to supervise instruction and build community 
        partnerships;
            ``(2) acquiring equipment, networking capabilities, 
        and infrastructure to carry out the project; and
            ``(3) developing and providing services and 
        activities for community residents that provide access 
        to computers, information technology, and the use of 
        such technology in support of preschool preparation, 
        academic achievement, educational development, and 
        workforce development, such as the following:
                    ``(A) After-school activities in which 
                children and youths use software that provides 
                academic enrichment and assistance with 
                homework, develop their technical skills, 
                explore the Internet, and participate in 
                multimedia activities, including web page 
                design and creation.
                    ``(B) Adult education and family literacy 
                activities through technology and the Internet, 
                including--
                            ``(i) General Education 
                        Development, Language Instruction 
                        Educational Programs, and adult basic 
                        education classes or programs;
                            ``(ii) introduction to computers;
                            ``(iii) intergenerational 
                        activities; and
                            ``(iv) educational development 
                        opportunities.
                    ``(C) Career development and job 
                preparation activities, such as--
                            ``(i) training in basic and 
                        advanced computer skills;
                            ``(ii) resume writing workshops; 
                        and
                            ``(iii) access to databases of 
                        employment opportunities, career 
                        information, and other online 
                        materials.
                    ``(D) Small business activities, such as--
                            ``(i) computer-based training for 
                        basic entrepreneurial skills and 
                        electronic commerce; and
                            ``(ii) access to information on 
                        business start-up programs that is 
                        available online, or from other 
                        sources.
                    ``(E) Activities that provide home access 
                to computers and technology, such as assistance 
                and services to promote the acquisition, 
                installation, and use of information technology 
                in the home through low-cost solutions such as 
                networked computers, web-based television 
                devices, and other technology.

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

``SEC. 5521. SHORT TITLE.

    ``This subpart may be cited as the `Alaska Native and 
Native Hawaiian Education Through Cultural and Historical 
Organizations Act'.

``SEC. 5522. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds the following:
            ``(1) Alaska Natives and Native Hawaiians have been 
        linked for over 200 years to the coastal towns of 
        Salem, Massachusetts, and New Bedford, Massachusetts, 
        through the China trade from Salem and whaling voyages 
        from New Bedford.
            ``(2) Nineteenth-century trading ships sailed from 
        Salem, Massachusetts, around Cape Horn of South 
        America, and up the Northwest coast of the United 
        States to Alaska, where their crews traded with Alaska 
        Native people for furs, and then went on to Hawaii to 
        trade for sandalwood with Native Hawaiians before going 
        on to China.
            ``(3) During the 19th century, over 2,000 whaling 
        voyages sailed out of New Bedford, Massachusetts to the 
        Arctic region of Alaska, and joined Alaska Natives from 
        Barrow, Alaska and other areas in the Arctic region in 
        subsistence whaling activities.
            ``(4) Many New Bedford whaling voyages continued on 
        to Hawaii, where they joined Native Hawaiians from the 
        neighboring islands.
            ``(5) From those commercial and whaling voyages, a 
        rich cultural exchange and strong trading relationships 
        developed among the three peoples involved.
            ``(6) In the past decades, awareness of the 
        historical trading, cultural, and whaling links has 
        faded among Alaska Natives, Native Hawaiians, and the 
        people of the continental United States.
            ``(7) In 2000, the Alaska Native Heritage Center in 
        Alaska, the Bishop Museum in Hawaii, and the Peabody-
        Essex Museum in Massachusetts initiated the New Trade 
        Winds project to use 21st-century technology, including 
        the Internet, to educate students and their parents 
        about historic and contemporary cultural and trading 
        ties that continue to link the diverse cultures of the 
        peoples involved.
            ``(8) The New Bedford Whaling Museum, in 
        partnership with the New Bedford Whaling National 
        Historical Park, has developed a cultural exchange and 
        educational program with the Inupiat Heritage Center in 
        Barrow, Alaska to bring together the children, parents, 
        and elders from the Arctic region of Alaska with 
        children and families of Massachusetts to learn about 
        their historical ties and about each other's 
        contemporary cultures.
            ``(9) Within the fast-growing cultural sector, 
        meaningful educational and career opportunities based 
        on traditional relationships exist for Alaska Natives, 
        Native Hawaiians, and low-income youth in 
        Massachusetts.
            ``(10) Cultural institutions can provide practical, 
        culturally relevant, education-related internship and 
        apprentice programs, such as the Museum Action Corps at 
        the Peabody-Essex Museum and similar programs at the 
        New Bedford Oceanarium and other institutions, to 
        prepare youths and their families for careers in the 
        cultural sector.
            ``(11) The resources of the institutions described 
        in paragraphs (7) and (8) provide unique opportunities 
        for illustrating and interpreting the contributions of 
        Alaska Natives, Native Hawaiians, the whaling industry, 
        and the China trade to the economic, social, and 
        environmental history of the United States, for 
        educating students and their parents, and for providing 
        opportunities for internships and apprenticeships 
        leading to careers with cultural institutions.
    ``(b) Purposes.--The purposes of this subpart are the 
following:
            ``(1) To authorize and develop innovative 
        culturally-based educational programs and cultural 
        exchanges to assist Alaska Natives, Native Hawaiians, 
        and children and families of Massachusetts linked by 
        history and tradition to Alaska and Hawaii to learn 
        about shared culture and traditions.
            ``(2) To authorize and develop internship and 
        apprentice programs to assist Alaska Natives, Native 
        Hawaiians, and children and families of Massachusetts 
        linked by history and tradition with Alaska and Hawaii 
        to prepare for careers with cultural institutions.
            ``(3) To supplement programs and authorities in the 
        area of education to further the objectives of this 
        subpart.

``SEC. 5523. PROGRAM AUTHORIZATION.

    ``(a) Grants and Contracts.--In order to carry out programs 
that fulfill the purposes of this subpart, the Secretary is 
authorized to make grants to, or enter into contracts with, the 
following:
            ``(1) The Alaska Native Heritage Center in 
        Anchorage, Alaska.
            ``(2) The Inupiat Heritage Center in Barrow, 
        Alaska.
            ``(3) The Bishop Museum in Hawaii.
            ``(4) The Peabody-Essex Museum in Salem, 
        Massachusetts.
            ``(5) The New Bedford Whaling Museum and the New 
        Bedford Oceanarium in New Bedford, Massachusetts.
            ``(6) Other Alaska Native and Native Hawaiian 
        cultural and educational organizations.
            ``(7) Cultural and educational organizations with 
        experience in developing or operating programs that 
        illustrate and interpret the contributions of Alaska 
        Natives, Native Hawaiians, the whaling industry, and 
        the China trade to the economic, social, and 
        environmental history of the United States.
            ``(8) Consortia of the organizations and entities 
        described in this subsection.
    ``(b) Uses of Funds.--Activities provided through programs 
carried out under this subpart may include one or more of the 
following:
            ``(1) Development and implementation of educational 
        programs to increase understanding of cultural 
        diversity and multicultural communication among Alaska 
        Natives, Native Hawaiians, and the people of the 
        continental United States, based on historic patterns 
        of trading and commerce.
            ``(2) Development and implementation of programs 
        using modern technology, including the Internet, to 
        educate students, their parents, and teachers about 
        historic and contemporary cultural and trading ties 
        that continue to link the diverse cultures of Alaska 
        Natives, Native Hawaiians, and the people of 
        Massachusetts.
            ``(3) Cultural exchanges of elders, students, 
        parents, and teachers among Alaska Natives, Native 
        Hawaiians, and the people of Massachusetts to increase 
        awareness of diverse cultures among each group.
            ``(4) Sharing of collections among cultural 
        institutions designed to increase awareness of diverse 
        cultures and links among them.
            ``(5) Development and implementation of internship 
        and apprentice programs in cultural institutions to 
        train Alaska Natives, Native Hawaiians and low-income 
        students in Massachusetts for careers with cultural 
        institutions.
            ``(6) Other activities, consistent with the 
        purposes of this subpart, to meet the educational needs 
        of Alaska Natives, Native Hawaiians, and students and 
        their parents in Massachusetts.

``SEC. 5524. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under 
this subpart, and no contract may be entered into under this 
subpart, unless the entity seeking the grant or contract 
submits an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may 
determine to be necessary to carry out the provisions of this 
subpart.
    ``(b) Local Educational Agency Coordination.--Each 
applicant for a grant or contract under this subpart shall 
inform each local educational agency serving students who will 
participate in the program to be carried out under the grant or 
contract about the application.

``SEC. 5525. AVAILABILITY OF FUNDS.

    ``If sufficient funds are made available under section 5401 
to carry out this subpart for a fiscal year, the Secretary 
shall make available, to support activities described in 
section 5523(b), the following amounts:
            ``(1) Not less than $2,000,000 each to--
                    ``(A) the New Bedford Whaling Museum, in 
                partnership with the New Bedford Oceanarium, in 
                Massachusetts; and
                    ``(B) the Inupiat Heritage Center in 
                Alaska.
            ``(2) For the New Trade Winds project, not less 
        than $1,000,000 each to--
                    ``(A) the Alaska Native Heritage Center in 
                Alaska;
                    ``(B) the Bishop Museum in Hawaii; and
                    ``(C) the Peabody-Essex Museum in 
                Massachusetts.
            ``(3) For internship and apprenticeship programs 
        (including the Museum Action Corps of the Peabody-Essex 
        Museum), not less than $1,000,000 each to--
                    ``(A) the Alaska Native Heritage Center in 
                Alaska;
                    ``(B) the Bishop Museum in Hawaii; and
                    ``(C) the Peabody-Essex Museum in 
                Massachusetts.

``SEC. 5526. DEFINITIONS.

    ``In this subpart:
            ``(1) Alaska native.--The term `Alaska Native' has 
        the meaning given that term in section 7306.
            ``(2) Native hawaiian.--The term `Native Hawaiian' 
        has the meaning given that term in section 7207.

             ``Subpart 13--Excellence in Economic Education

``SEC. 5531. SHORT TITLE.

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

``SEC. 5532. PURPOSE AND GOALS.

    ``(a) Purpose.--The purpose of this subpart is to promote 
economic and financial literacy among all students in 
kindergarten through grade 12 by awarding a competitive grant 
to a national nonprofit educational organization that has as 
its primary purpose the improvement of the quality of student 
understanding of personal finance and economics.
    ``(b) Objectives.--The objectives of this subpart are the 
following:
            ``(1) To increase students' knowledge of, and 
        achievement in, economics to enable the students to 
        become more productive and informed citizens.
            ``(2) To strengthen teachers' understanding of, and 
        competency in, economics to enable the teachers to 
        increase student mastery of economic principles and the 
        practical application of those principles.
            ``(3) To encourage economic education research and 
        development, to disseminate effective instructional 
        materials, and to promote replication of best practices 
        and exemplary programs that foster economic literacy.
            ``(4) To assist States in measuring the impact of 
        education in economics.
            ``(5) To leverage and expand private and public 
        support for economic education partnerships at 
        national, State, and local levels.

``SEC. 5533. GRANT PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to award 
a competitive grant to a national nonprofit educational 
organization that has as its primary purpose the improvement of 
the quality of student understanding of personal finance and 
economics through effective teaching of economics in the 
Nation's classrooms (referred to in this subpart as the 
`grantee').
    ``(b) Uses of Funds.--
            ``(1) Direct activities.--The grantee shall use 25 
        percent of the funds made available through the grant 
        for a fiscal year--
                    ``(A) to strengthen and expand the 
                grantee's relationships with State and local 
                personal finance, entrepreneurial, and economic 
                education organizations;
                    ``(B) to support and promote training of 
                teachers who teach a grade from kindergarten 
                through grade 12 regarding economics, including 
                the dissemination of information on effective 
                practices and research findings regarding the 
                teaching of economics;
                    ``(C) to support research on effective 
                teaching practices and the development of 
                assessment instruments to document student 
                understanding of personal finance and 
                economics; and
                    ``(D) to develop and disseminate 
                appropriate materials to foster economic 
                literacy.
            ``(2) Subgrants.--The grantee shall use 75 percent 
        of the funds made available through the grant for a 
        fiscal year to award subgrants to State educational 
        agencies or local educational agencies, and State or 
        local economic, personal finance, or entrepreneurial 
        education organizations (referred to in this section as 
        the `recipient'). The grantee shall award such a 
        subgrant to pay for the Federal share of the cost of 
        enabling the recipient to work in partnership with one 
        or more of the entities described in paragraph (3) for 
        one or more of the following purposes:
                    ``(A) Collaboratively establishing and 
                conducting teacher training programs that use 
                effective and innovative approaches to the 
                teaching of economics, personal finance, and 
                entrepreneurship.
                    ``(B) Providing resources to school 
                districts that desire to incorporate economics 
                and personal finance into the curricula of the 
                schools in the districts.
                    ``(C) Conducting evaluations of the impact 
                of economic and financial literacy education on 
                students.
                    ``(D) Conducting economic and financial 
                literacy education research.
                    ``(E) Creating and conducting school-based 
                student activities to promote consumer, 
                economic, and personal finance education (such 
                as saving, investing, and entrepreneurial 
                education) and to encourage awareness and 
                student academic achievement in economics.
                    ``(F) Encouraging replication of best 
                practices to promote economic and financial 
                literacy.
            ``(3) Partnership entities.--The entities described 
        in this paragraph are the following:
                    ``(A) A private sector entity.
                    ``(B) A State educational agency.
                    ``(C) A local educational agency.
                    ``(D) An institution of higher education.
                    ``(E) An organization promoting economic 
                development.
                    ``(F) An organization promoting educational 
                excellence.
                    ``(G) An organization promoting personal 
                finance or entrepreneurial education.

``SEC. 5534. APPLICATIONS.

    ``(a) Grantee Applications.--To be eligible to receive a 
grant under this subpart, the grantee shall submit to the 
Secretary an application at such time, in such manner, and 
accompanied by such information as the Secretary may require.
    ``(b) Recipient Applications.--
            ``(1) Submission.--To be eligible to receive a 
        subgrant under this section, a recipient shall submit 
        an application to the grantee at such time, in such 
        manner, and accompanied by such information as the 
        grantee may require.
            ``(2) Review.--The grantee shall invite the 
        individuals described in paragraph (3) to review all 
        applications from recipients for a subgrant under this 
        section and to make recommendations to the grantee 
        regarding the approval of the applications.
            ``(3) Reviewers.--The individuals described in this 
        paragraph are the following:
                            ``(i) Leaders in the fields of 
                        economics and education.
                            ``(ii) Such other individuals as 
                        the grantee determines to be necessary, 
                        especially members of the State and 
                        local business, banking, and finance 
                        communities.

``SEC. 5535. REQUIREMENTS.

    ``(a) Administrative Costs.--The grantee and each recipient 
receiving a subgrant under this subpart for a fiscal year may 
use not more than 5 percent of the funds made available through 
the grant or subgrant for administrative costs.
    ``(b) Teacher Training Programs.--In carrying out the 
teacher training programs described in section 5533(b)(2)(A), a 
recipient shall--
            ``(1) train teachers who teach a grade from 
        kindergarten through grade 12; and
            ``(2) encourage teachers from disciplines other 
        than economics and financial literacy to participate in 
        such teacher training programs, if the training will 
        promote the economic and financial literacy of those 
        teachers' students.
    ``(c) Involvement of Business Community.--In carrying out 
the activities assisted under this subpart, the grantee and 
recipients are strongly encouraged to--
            ``(1) include interactions with the local business 
        community to the fullest extent possible to reinforce 
        the connection between economic and financial literacy 
        and economic development; and
            ``(2) work with private businesses to obtain 
        matching contributions for Federal funds and assist 
        recipients in working toward self-sufficiency.
    ``(d) Additional Requirements and Technical Assistance.--
The grantee shall--
            ``(1) meet such other requirements as the Secretary 
        determines to be necessary to assure compliance with 
        this section; and
            ``(2) receive from the Secretary such technical 
        assistance as may be necessary to carry out this 
        section.

``SEC. 5536. ADMINISTRATIVE PROVISIONS.

    ``(a) Federal Share.--The Federal share of the cost 
described in section 5533(b)(2) shall be 50 percent.
    ``(b) Payment of Non-Federal Share.--The non-Federal share 
may be paid in cash or in kind (fairly evaluated, including 
plant, equipment, or services).
    ``(c) Reports to Congress.--Not later than 2 years after 
the date funds are first made available to carry out this 
subpart, and every 2 years thereafter, the Secretary shall 
submit to the appropriate committees of Congress a report 
regarding activities assisted under this subpart.

``SEC. 5537. SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available to carry out this subpart shall be 
used to supplement, and not supplant, other Federal, State, and 
local funds expended for the purpose described in section 
5532(a).

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

``SEC. 5541. GRANTS FOR THE INTEGRATION OF SCHOOLS AND MENTAL HEALTH 
                    SYSTEMS.

    ``(a) Authorization.--The Secretary is authorized to award 
grants to, or enter into contracts or cooperative agreements 
with, State educational agencies, local educational agencies, 
or Indian tribes, for the purpose of increasing student access 
to quality mental health care by developing innovative programs 
to link local school systems with the local mental health 
system.
    ``(b) Duration.--With respect to a grant, contract, or 
cooperative agreement awarded or entered into under this 
section, the period during which payments under such grant, 
contract or agreement are made to the recipient may not exceed 
5 years.
    ``(c) Use of Funds.--A State educational agency, local 
educational agency, or Indian tribe that receives a grant, 
contract, or cooperative agreement under this section shall use 
amounts made available through such grant, contract, or 
cooperative agreement for the following:
            ``(1) To enhance, improve, or develop collaborative 
        efforts between school-based service systems and mental 
        health service systems to provide, enhance, or improve 
        prevention, diagnosis, and treatment services to 
        students.
            ``(2) To enhance the availability of crisis 
        intervention services, appropriate referrals for 
        students potentially in need of mental health services, 
        and ongoing mental health services.
            ``(3) To provide training for the school personnel 
        and mental health professionals who will participate in 
        the program carried out under this section.
            ``(4) To provide technical assistance and 
        consultation to school systems and mental health 
        agencies and families participating in the program 
        carried out under this section.
            ``(5) To provide linguistically appropriate and 
        culturally competent services.
            ``(6) To evaluate the effectiveness of the program 
        carried out under this section in increasing student 
        access to quality mental health services, and make 
        recommendations to the Secretary about sustainability 
        of the program.
    ``(d) Applications.--To be eligible to receive a grant, 
contract, or cooperative agreement under this section, a State 
educational agency, local educational agency, or Indian tribe 
shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary 
may reasonably require. The application shall include each of 
the following:
            ``(1) A description of the program to be funded 
        under the grant, contract, or cooperative agreement.
            ``(2) A description of how such program will 
        increase access to quality mental health services for 
        students.
            ``(3) A description of how the applicant will 
        establish a crisis intervention program to provide 
        immediate mental health services to the school 
        community when necessary.
            ``(4) An assurance that--
                    ``(A) persons providing services under the 
                grant, contract, or cooperative agreement are 
                adequately trained to provide such services;
                    ``(B) the services will be provided in 
                accordance with subsection (c);
                    ``(C) teachers, principal administrators, 
                and other school personnel are aware of the 
                program; and
                    ``(D) parents of students participating in 
                services under this section will be involved in 
                the design and implementation of the services.
            ``(5) An explanation of how the applicant will 
        support and integrate existing school-based services 
        with the program to provide appropriate mental health 
        services for students.
            ``(6) An explanation of how the applicant will 
        establish a program that will support students and the 
        school in maintaining an environment conducive to 
        learning.
    ``(e) Interagency Agreements.--
            ``(1) Designation of lead agency.--The recipient of 
        each grant, contract, or cooperative agreement shall 
        designate a lead agency to direct the establishment of 
        an interagency agreement among local educational 
        agencies, juvenile justice authorities, mental health 
        agencies, and other relevant entities in the State, in 
        collaboration with local entities and parents and 
        guardians of students.
            ``(2) Contents.--The interagency agreement shall 
        ensure the provision of the services described in 
        subsection (c), specifying with respect to each agency, 
        authority, or entity--
                    ``(A) the financial responsibility for the 
                services;
                    ``(B) the conditions and terms of 
                responsibility for the services, including 
                quality, accountability, and coordination of 
                the services; and
                    ``(C) the conditions and terms of 
                reimbursement among the agencies, authorities, 
                or entities that are parties to the interagency 
                agreement, including procedures for dispute 
                resolution.
    ``(f) Evaluation.--The Secretary shall evaluate each 
program carried out by a State educational agency, local 
educational agency, or Indian tribe under this section and 
shall disseminate the findings with respect to each such 
evaluation to appropriate public and private entities.
    ``(g) Distribution of Awards.--The Secretary shall ensure 
that grants, contracts, and cooperative agreements awarded or 
entered into under this section are equitably distributed among 
the geographical regions of the United States and among urban, 
suburban, and rural populations.
    ``(h) Rule of Construction.--Nothing in Federal law shall 
be construed--
            ``(1) to prohibit an entity involved with a program 
        carried out under this section from reporting a crime 
        that is committed by a student to appropriate 
        authorities; or
            ``(2) to prevent State law enforcement and judicial 
        authorities from exercising their responsibilities with 
        regard to the application of Federal and State law to 
        crimes committed by a student.
    ``(i) Supplement, Not Supplant.--Any services provided 
through programs carried out under this section must 
supplement, and not supplant, existing mental health services, 
including any services required to be provided under the 
Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
seq.).

``SEC. 5542. PROMOTION OF SCHOOL READINESS THROUGH EARLY CHILDHOOD 
                    EMOTIONAL AND SOCIAL DEVELOPMENT.

    ``(a) Authorization.--The Secretary, in consultation with 
the Secretary of Health and Human Services, may award grants 
(to be known as `Foundations for Learning Grants') to local 
educational agencies, local councils, community-based 
organizations, and other public or nonprofit private entities 
to assist eligible children to become ready for school.
    ``(b) Applications.--To be eligible to receive a grant 
under this section, a local educational agency, local council, 
community-based organization, or other public or nonprofit 
private entity, or a combination of such entities, shall submit 
an application to the Secretary at such time, in such manner, 
and accompanied by such information as the Secretary may 
reasonably require. The application shall include each of the 
following:
            ``(1) A description of the population that the 
        applicant intends to serve and the types of services to 
        be provided under the grant.
            ``(2) A description of the manner in which services 
        under the grant will be coordinated with existing 
        similar services provided by public and nonprofit 
        private entities within the State.
            ``(3) An assurance that--
                    ``(A) services under the grant shall be 
                provided by or under the supervision of 
                qualified professionals with expertise in early 
                childhood development;
                    ``(B) such services shall be culturally 
                competent;
                    ``(C) such services shall be provided in 
                accordance with subsection (c);
                    ``(D) funds received under this section 
                shall be used to supplement, and not supplant, 
                non-Federal funds; and
                    ``(E) parents of students participating in 
                services under this section will be involved in 
                the design and implementation of the services.
    ``(c) Uses of Funds.--A local educational agency, local 
council, community-based organization, or other public or 
nonprofit private entity that receives funds under this section 
may use such funds to benefit eligible children, for one or 
more of the following:
            ``(1) To deliver services to eligible children and 
        their families that foster eligible children's 
        emotional, behavioral, and social development and take 
        into consideration the characteristics described in 
        subsection (f)(1).
            ``(2) To coordinate and facilitate access by 
        eligible children and their families to the services 
        available through community resources, including mental 
        health, physical health, substance abuse, educational, 
        domestic violence prevention, child welfare, and social 
        services.
            ``(3) To provide ancillary services such as 
        transportation or child care in order to facilitate the 
        delivery of any other services or activities authorized 
        by this section.
            ``(4) To develop or enhance early childhood 
        community partnerships and build toward a community 
        system of care that brings together child-serving 
        agencies or organizations to provide individualized 
        supports for eligible children and their families.
            ``(5) To evaluate the success of strategies and 
        services provided pursuant to this section in promoting 
        young children's successful entry to school and to 
        maintain data systems required for effective 
        evaluations.
            ``(6) To pay for the expenses of administering the 
        activities authorized under this section, including 
        assessment of children's eligibility for services.
    ``(d) Limitations.--
            ``(1) Services not otherwise funded.--A local 
        educational agency, local council, community-based 
        organization, or other public or nonprofit private 
        entity may use funds under this section only to pay for 
        services that cannot be paid for using other Federal, 
        State, or local public resources or through private 
        insurance.
            ``(2) Administrative expenses.--A grantee may not 
        use more than 3 percent of the amount of the grant to 
        pay the administrative expenses described in subsection 
        (c)(6).
    ``(e) Evaluations.--The Secretary shall directly evaluate, 
or enter into a contract for an outside evaluation of, each 
program carried out under this section and shall disseminate 
the findings with respect to such evaluation to appropriate 
public and private entities.
    ``(f) Definitions.--In this section:
            ``(1) Eligible child.--The term `eligible child' 
        means a child who has not attained the age of 7 years, 
        and to whom two or more of the following 
        characteristics apply:
                    ``(A) The child has been abused, 
                maltreated, or neglected.
                    ``(B) The child has been exposed to 
                violence.
                    ``(C) The child has been homeless.
                    ``(D) The child has been removed from child 
                care, Head Start, or preschool for behavioral 
                reasons or is at risk of being so removed.
                    ``(E) The child has been exposed to 
                parental depression or other mental illness.
                    ``(F) The family income with respect to the 
                child is below 200 percent of the poverty line.
                    ``(G) The child has been exposed to 
                parental substance abuse.
                    ``(H) The child has had early behavioral 
                and peer relationship problems.
                    ``(I) The child had a low birth weight.
                    ``(J) The child has a cognitive deficit or 
                developmental disability.
            ``(2) Local council.--The term `local council' 
        means a council that is established or designated by a 
        local government entity, Indian tribe, regional 
        corporation, or native Hawaiian entity, as appropriate, 
        which is composed of representatives of local agencies 
        directly affected by early learning programs, parents, 
        key community leaders, and other individuals concerned 
        with early learning issues in the locality, such as 
        elementary education, child care resource and referral 
        services, early learning opportunities, child care, and 
        health services.
            ``(3) Provider of early childhood services.--The 
        term `provider of early childhood services' means a 
        public or private entity that has regular contact with 
        young children, including child welfare agencies, child 
        care providers, Head Start and Early Head Start 
        providers, preschools, kindergartens, libraries, mental 
        health professionals, family courts, homeless shelters, 
        and primary care providers.

                    ``Subpart 15--Arts in Education

``SEC. 5551. ASSISTANCE FOR ARTS EDUCATION.

    ``(a) Purposes.--The purposes of this subpart are the 
following:
            ``(1) To support systemic education reform by 
        strengthening arts education as an integral part of the 
        elementary school and secondary school curriculum.
            ``(2) To help ensure that all students meet 
        challenging State academic content standards and 
        challenging State student academic achievement 
        standards in the arts.
            ``(3) To support the national effort to enable all 
        students to demonstrate competence in the arts.
    ``(b) Authority.--The Secretary is authorized to make 
grants to, or enter into contracts or cooperative agreements 
with, eligible entities described in subsection (c).
    ``(c) Eligible Entities.--The Secretary may make assistance 
available under subsection (b) to each of the following 
eligible entities:
            ``(1) State educational agencies.
            ``(2) Local educational agencies.
            ``(3) Institutions of higher education.
            ``(4) Museums or other cultural institutions.
            ``(5) Any other public or private agencies, 
        institutions, or organizations.
    ``(d) Use of Funds.--Assistance made available under this 
subpart may be used for any of the following:
            ``(1) Research on arts education.
            ``(2) Planning, developing, acquiring, expanding, 
        improving, or disseminating information about model 
        school-based arts education programs.
            ``(3) The development of model State arts education 
        assessments based on State academic achievement 
        standards.
            ``(4) The development and implementation of 
        curriculum frameworks for arts education.
            ``(5) The development of model inservice 
        professional development programs for arts educators 
        and other instructional staff.
            ``(6) Supporting collaborative activities with 
        Federal agencies or institutions involved in arts 
        education, arts educators, and organizations 
        representing the arts, including State and local arts 
        agencies involved in arts education.
            ``(7) Supporting model projects and programs in the 
        performing arts for children and youth through 
        arrangements made with the John F. Kennedy Center for 
        the Performing Arts.
            ``(8) Supporting model projects and programs by 
        Very Special Arts which assure the participation in 
        mainstream settings in arts and education programs of 
        individuals with disabilities.
            ``(9) Supporting model projects and programs to 
        integrate arts education into the regular elementary 
        school and secondary school curriculum.
            ``(10) Other activities that further the purposes 
        of this subpart.
    ``(e) Special Rule.--If the amount made available to the 
Secretary to carry out this subpart for any fiscal year is 
$15,000,000 or less, then such amount shall only be available 
to carry out the activities described in paragraphs (7) and (8) 
of subsection (d).
    ``(f) Conditions.--As conditions of receiving assistance 
made available under this subpart, the Secretary shall require 
each entity receiving such assistance--
            ``(1) to coordinate, to the extent practicable, 
        each project or program carried out with such 
        assistance with appropriate activities of public or 
        private cultural agencies, institutions, and 
        organizations, including museums, arts education 
        associations, libraries, and theaters; and
            ``(2) to use such assistance only to supplement, 
        and not to supplant, any other assistance or funds made 
        available from non-Federal sources for the activities 
        assisted under this subpart.
    ``(g) Consultation.--In carrying out this subpart, the 
Secretary shall consult with Federal agencies or institutions, 
arts educators (including professional arts education 
associations), and organizations representing the arts 
(including State and local arts agencies involved in arts 
education).

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

``SEC. 5561. PURPOSES.

    ``The purposes of this subpart are the following:
            ``(1) To provide leadership, technical assistance, 
        and financial support to nonprofit organizations 
        (including statewide nonprofit organizations) and local 
        educational agencies to help the organizations and 
        agencies implement successful and effective parental 
        involvement policies, programs, and activities that 
        lead to improvements in student academic achievement.
            ``(2) To strengthen partnerships among parents 
        (including parents of children from birth through age 
        5), teachers, principals, administrators, and other 
        school personnel in meeting the educational needs of 
        children.
            ``(3) To develop and strengthen the relationship 
        between parents and their children's school.
            ``(4) To further the developmental progress of 
        children assisted under this subpart.
            ``(5) To coordinate activities funded under this 
        subpart with parental involvement initiatives funded 
        under section 1118 and other provisions of this Act.
            ``(6) To provide a comprehensive approach to 
        improving student learning, through coordination and 
        integration of Federal, State, and local services and 
        programs.

``SEC. 5562. GRANTS AUTHORIZED.

    ``(a) Parental Information and Resource Centers.--The 
Secretary is authorized to award grants in each fiscal year to 
nonprofit organizations (including statewide nonprofit 
organizations), and consortia of such organizations and local 
educational agencies, to establish school-linked or school-
based parental information and resource centers that provide 
comprehensive training, information, and support to--
            ``(1) parents of children enrolled in elementary 
        schools and secondary schools;
            ``(2) individuals who work with the parents of 
        children enrolled in elementary schools and secondary 
        schools;
            ``(3) State educational agencies, local educational 
        agencies, schools, organizations that support family-
        school partnerships (such as parent-teacher 
        associations and Parents as Teachers organizations), 
        and other organizations that carry out parent education 
        and family involvement programs; and
            ``(4) parents of children from birth through age 5.
    ``(b) Geographic Distribution.--In awarding grants under 
this subpart, the Secretary shall, to the extent practicable, 
ensure that such grants are distributed in all geographic 
regions of the United States.

``SEC. 5563. APPLICATIONS.

    ``(a) Submission.--Each nonprofit organization (including a 
statewide nonprofit organization), or a consortia of such an 
organization and a local educational agency, that desires a 
grant under this subpart shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(b) Contents.--Each application submitted under 
subsection (a), at a minimum, shall include assurances that the 
organization or consortium will--
            ``(1)(A) be governed by a board of directors the 
        membership of which includes parents; or
            ``(B) be an organization or consortium that 
        represents the interests of parents;
            ``(2) establish a special advisory committee the 
        membership of which includes--
                    ``(A) parents of children enrolled in 
                elementary schools and secondary schools, who 
                shall constitute a majority of the members of 
                the special advisory committee;
                    ``(B) representatives of education 
                professionals with expertise in improving 
                services for disadvantaged children; and
                    ``(C) representatives of local elementary 
                schools and secondary schools, including 
                students and representatives from local youth 
                organizations;
            ``(3) use at least 50 percent of the funds received 
        under this subpart in each fiscal year to serve areas 
        with high concentrations of low-income families, in 
        order to serve parents who are severely educationally 
        or economically disadvantaged;
            ``(4) operate a center of sufficient size, scope, 
        and quality to ensure that the center is adequate to 
        serve the parents in the area;
            ``(5) serve both urban and rural areas;
            ``(6) design a center that meets the unique 
        training, information, and support needs of parents of 
        children enrolled in elementary schools and secondary 
        schools, particularly such parents who are 
        educationally or economically disadvantaged;
            ``(7) demonstrate the capacity and expertise to 
        conduct the effective training, information, and 
        support activities for which assistance is sought;
            ``(8) network with--
                    ``(A) local educational agencies and 
                schools;
                    ``(B) parents of children enrolled in 
                elementary schools and secondary schools;
                    ``(C) parent training and information 
                centers assisted under section 682 of the 
                Individuals with Disabilities Education Act;
                    ``(D) clearinghouses; and
                    ``(E) other organizations and agencies;
            ``(9) focus on serving parents of children enrolled 
        in elementary schools and secondary schools who are 
        parents of low-income, minority, and limited English 
        proficient children;
            ``(10) use at least 30 percent of the funds 
        received under this subpart in each fiscal year to 
        establish, expand, or operate Parents as Teachers 
        programs, Home Instruction for Preschool Youngsters 
        programs, or other early childhood parent education 
        programs;
            ``(11) provide assistance to parents in areas such 
        as understanding State and local standards and measures 
        of student and school academic achievement;
            ``(12) work with State educational agencies and 
        local educational agencies to determine parental needs 
        and the best means for delivery of services;
            ``(13) identify and coordinate Federal, State, and 
        local services and programs that support improved 
        student learning, including programs supported under 
        this Act, violence prevention programs, nutrition 
        programs, housing programs, Head Start programs, adult 
        education, and job training; and
            ``(14) work with and foster partnerships with other 
        agencies that provide programs and deliver services 
        described in paragraph (13) to make such programs and 
        services more accessible to children and families.

``SEC. 5564. USES OF FUNDS.

    ``(a) In General.--Grant funds received under this subpart 
shall be used for one or more of the following:
            ``(1) To assist parents in participating 
        effectively in their children's education and to help 
        their children meet State and local standards, such as 
        assisting parents--
                    ``(A) to engage in activities that will 
                improve student academic achievement, including 
                understanding the accountability systems in 
                place within their State educational agency and 
                local educational agency and understanding 
                their children's educational academic 
                achievement in comparison to State and local 
                standards;
                    ``(B) to provide follow-up support for 
                their children's educational achievement;
                    ``(C) to communicate effectively with 
                teachers, principals, counselors, 
                administrators, and other school personnel;
                    ``(D) to become active participants in the 
                development, implementation, and review of 
                school-parent compacts, parent involvement 
                policies, and school planning and improvement;
                    ``(E) to participate in the design and 
                provision of assistance to students who are not 
                making adequate academic progress;
                    ``(F) to participate in State and local 
                decisionmaking; and
                    ``(G) to train other parents (such as 
                training related to Parents as Teachers 
                activities).
            ``(2) To obtain information about the range of 
        options, programs, services, and resources available at 
        the national, State, and local levels to assist parents 
        and school personnel who work with parents.
            ``(3) To help the parents learn and use the 
        technology applied in their children's education.
            ``(4) To plan, implement, and fund activities for 
        parents that coordinate the education of their children 
        with other Federal, State, and local services and 
        programs that serve their children or their families.
            ``(5) To provide support for State or local 
        educational personnel, if the participation of such 
        personnel will further the activities assisted under 
        the grant.
            ``(6) To coordinate and integrate early childhood 
        programs with school-age programs.
    ``(b) Permissive Activities.--Grant funds received under 
this subpart may be used to assist schools with activities 
including one or more of the following:
            ``(1) Developing and implementing the schools' 
        plans or activities under sections 1118 and 1119.
            ``(2) Developing and implementing school 
        improvement plans, including addressing problems that 
        develop in the implementation of the schools' plans or 
        activities under sections 1118 and 1119.
            ``(3) Providing information about assessment and 
        individual results to parents in a manner and a 
        language the family can understand.
            ``(4) Coordinating the efforts of Federal, State, 
        and local parent education and family involvement 
        initiatives.
            ``(5) Providing training, information, and support 
        to--
                    ``(A) State educational agencies;
                    ``(B) local educational agencies and 
                schools, especially low-performing local 
                educational agencies and schools; and
                    ``(C) organizations that support family-
                school partnerships.

``SEC. 5565. ADMINISTRATIVE PROVISIONS.

    ``(a) Matching Funds for Grant Renewal.--For each fiscal 
year after the first fiscal year in which an organization or 
consortium receives assistance under this subpart, the 
organization or consortium shall demonstrate in the application 
submitted for such fiscal year, that a portion of the services 
provided by the organization or consortium is supported through 
non-Federal contributions, which contributions may be in cash 
or in kind.
    ``(b) Submission of Information.--
            ``(1) In general.--Each organization or consortium 
        receiving assistance under this subpart shall submit to 
        the Secretary, on an annual basis, information 
        concerning the parental information and resource 
        centers assisted under this subpart, including the 
        following information:
                    ``(A) The number of parents (including the 
                number of minority and limited English 
                proficient parents) who receive information and 
                training.
                    ``(B) The types and modes of training, 
                information, and support provided under this 
                subpart.
                    ``(C) The strategies used to reach and 
                serve parents of minority and limited English 
                proficient children, parents with limited 
                literacy skills, and other parents in need of 
                the services provided under this subpart.
                    ``(D) The parental involvement policies and 
                practices used by the center and an evaluation 
                of whether such policies and practices are 
                effective in improving home-school 
                communication, student academic achievement, 
                student and school academic achievement, and 
                parental involvement in school planning, 
                review, and improvement.
                    ``(E) The effectiveness of the activities 
                that local educational agencies and schools are 
                carrying out, with regard to parental 
                involvement and other activities assisted under 
                this Act, that lead to improved student 
                academic achievement and improved student and 
                school academic achievement.
            ``(2) Dissemination.--The Secretary shall 
        disseminate annually to Congress and the public the 
        information that each organization or consortium 
        submits under paragraph (1).
    ``(c) Technical Assistance.--The Secretary shall provide 
technical assistance, by grant or contract, for the 
establishment, development, and coordination of parent 
training, information, and support programs and parental 
information and resource centers.
    ``(d) Rule of Construction.--Nothing in this subpart shall 
be construed to prohibit a parental information and resource 
center from--
            ``(1) having its employees or agents meet with a 
        parent at a site that is not on school grounds; or
            ``(2) working with another agency that serves 
        children.
    ``(e) Parental Rights.--Notwithstanding any other provision 
of this subpart--
            ``(1) no person (including a parent who educates a 
        child at home, a public school parent, or a private 
        school parent) shall be required to participate in any 
        program of parent education or developmental screening 
        under this subpart; and
            ``(2) no program or center assisted under this 
        subpart shall take any action that infringes in any 
        manner on the right of a parent to direct the education 
        of their children.
    ``(f) Continuation of Awards.--The Secretary shall use 
funds made available under this subpart to continue to make 
grant or contract payments to each entity that was awarded a 
multiyear grant or contract under title IV of the Goals 2000: 
Educate America Act (as such title was in effect on the day 
before the date of enactment of the No Child Left Behind Act of 
2001) for the duration of the grant or contract award.

``SEC. 5566. LOCAL FAMILY INFORMATION CENTERS.

    ``(a) In General.--If the amount made available to carry 
out this subpart for a fiscal year is more than $50,000,000, 
the Secretary is authorized to award 50 percent of the amount 
that exceeds $50,000,000 as grants to, and enter into contracts 
and cooperative agreements with, local nonprofit parent 
organizations to enable the organizations to support local 
family information centers that help ensure that parents of 
students in elementary schools and secondary schools assisted 
under this subpart have the training, information, and support 
the parents need to enable the parents to participate 
effectively in their children's early childhood education, in 
their children's elementary and secondary education, and in 
helping their children to meet challenging State academic 
content and student academic achievement standards.
    ``(b) Local Nonprofit Parent Organization Defined.--In this 
section, the term `local nonprofit parent organization' means a 
private nonprofit organization (other than an institution of 
higher education) that--
            ``(1) has a demonstrated record of working with 
        low-income individuals and parents;
            ``(2)(A) has a board of directors, the majority of 
        whom are parents of students in elementary schools and 
        secondary schools assisted under part A of title I and 
        located in the geographic area to be served by a local 
        family information center; or
            ``(B) has a special governing committee to direct 
        and implement a local family information center, a 
        majority of the members of whom are parents of students 
        in schools assisted under part A of title I; and
            ``(3) is located in a community with elementary 
        schools and secondary schools that receive funds under 
        part A of title I, and is accessible to the families of 
        students in those schools.

               ``Subpart 17--Combatting Domestic Violence

``SEC. 5571. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING 
                    DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY 
                    SCHOOL CHILDREN.

    ``(a) Definitions.--In this section:
            ``(1) Domestic violence.--The term `domestic 
        violence' has the meaning given that term in section 
        2003 of the Omnibus Crime Control and Safe Streets Act 
        of 1968 (42 U.S.C. 3796gg-2).
            ``(2) Expert.--The term `expert' means--
                    ``(A) an expert on domestic violence, 
                sexual assault, and child abuse from the 
                educational, legal, youth, mental health, 
                substance abuse, or victim advocacy field; and
                    ``(B) a State or local domestic violence 
                coalition or community-based youth 
                organization.
            ``(3) Witness domestic violence.--
                    ``(A) In general.--The term `witness 
                domestic violence' means to witness--
                            ``(i) an act of domestic violence 
                        that constitutes actual or attempted 
                        physical assault; or
                            ``(ii) a threat or other action 
                        that places the victim in fear of 
                        domestic violence.
                    ``(B) Witness.--In subparagraph (A), the 
                term `witness' means--
                            ``(i) to directly observe an act, 
                        threat, or action described in 
                        subparagraph (A), or the aftermath of 
                        that act, threat, or action; or
                            ``(ii) to be within earshot of an 
                        act, threat, or action described in 
                        subparagraph (A), or the aftermath of 
                        that act, threat, or action.
    ``(b) Grants Authorized.--
            ``(1) Authority.--The Secretary is authorized to 
        award grants to local educational agencies that work 
        with experts to enable the elementary schools and 
        secondary schools served by the local educational 
        agency--
                    ``(A) to provide training to school 
                administrators, faculty, and staff, with 
                respect to issues concerning children who 
                experience domestic violence in dating 
                relationships or who witness domestic violence, 
                and the impact of the violence on the children;
                    ``(B) to provide educational programming 
                for students regarding domestic violence and 
                the impact of experiencing or witnessing 
                domestic violence on children;
                    ``(C) to provide support services for 
                students and school personnel to develop and 
                strengthen effective prevention and 
                intervention strategies with respect to issues 
                concerning children who experience domestic 
                violence in dating relationships or who witness 
                domestic violence, and the impact of the 
                violence on the children; and
                    ``(D) to develop and implement school 
                system policies regarding appropriate and safe 
                responses to, identification of, and referral 
                procedures for, students who are experiencing 
                or witnessing domestic violence.
            ``(2) Award basis.--The Secretary is authorized to 
        award grants under this section--
                    ``(A) on a competitive basis; and
                    ``(B) in a manner that ensures that such 
                grants are equitably distributed among local 
                educational agencies located in rural, urban, 
                and suburban areas.
            ``(3) Policy dissemination.--The Secretary shall 
        disseminate to local educational agencies any 
        Department policy guidance regarding the prevention of 
        domestic violence and the impact on children of 
        experiencing or witnessing domestic violence.
    ``(c) Uses of Funds.--Funds made available to carry out 
this subpart may be used for one or more of the following 
purposes:
            ``(1) To provide training for elementary school and 
        secondary school administrators, faculty, and staff 
        that addresses issues concerning elementary school and 
        secondary school students who experience domestic 
        violence in dating relationships or who witness 
        domestic violence, and the impact of such violence on 
        those students.
            ``(2) To provide education programs for elementary 
        school and secondary school students that are 
        developmentally appropriate for the students' grade 
        levels and are designed to meet any unique cultural and 
        language needs of the particular student populations.
            ``(3) To develop and implement elementary school 
        and secondary school system policies regarding--
                    ``(A) appropriate and safe responses to, 
                identification of, and referral procedures for, 
                students who are experiencing or witnessing 
                domestic violence; and
                    ``(B) to develop and implement policies on 
                reporting and referral procedures for those 
                students.
            ``(4) To provide the necessary human resources to 
        respond to the needs of elementary school and secondary 
        school students and personnel who are faced with the 
        issue of domestic violence, such as a resource person 
        who is either on-site or on-call and who is an expert.
            ``(5) To provide media center materials and 
        educational materials to elementary schools and 
        secondary schools that address issues concerning 
        children who experience domestic violence in dating 
        relationships or who witness domestic violence, and the 
        impact of the violence on those children.
            ``(6) To conduct evaluations to assess the impact 
        of programs and policies assisted under this subpart in 
        order to enhance the development of the programs.
    ``(d) Confidentiality.--Policies, programs, training 
materials, and evaluations developed and implemented under 
subsection (c) shall address issues of safety and 
confidentiality for the victim and the victim's family in a 
manner consistent with applicable Federal and State laws.
    ``(e) Application.--To be eligible for a grant under this 
section for a fiscal year, a local educational agency, in 
consultation with an expert, shall submit an application to the 
Secretary at such time, in such manner, and containing such 
information as the Secretary may require. The application shall 
include each of the following:
            ``(1) A description of the need for funds provided 
        under the grant and the plan for implementation of any 
        of the activities described in subsection (c).
            ``(2) A description of how the experts will work in 
        consultation and collaboration with the local 
        educational agency.
            ``(3) Measurable objectives for, and expected 
        results from, the use of the funds provided under the 
        grant.
            ``(4) Provisions for appropriate remuneration for 
        collaborating partners.

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

``SEC. 5581. GRANT PROGRAM AUTHORIZED.

    ``The Secretary, in consultation with the Secretary of 
Energy and the Administrator of the Environmental Protection 
Agency, is authorized to award grants to State educational 
agencies to permit such State educational agencies to carry out 
section 5582.

``SEC. 5582. STATE USES OF FUNDS.

    ``(a) Subgrants.--
            ``(1) In general.--A State educational agency 
        receiving a grant under this subpart shall use funds 
        made available under the grant to award subgrants to 
        local educational agencies to permit such local 
        educational agencies to carry out the activities 
        described in section 5583.
            ``(2) Limitation.--A State educational agency shall 
        award subgrants under this subsection to local 
        educational agencies that are the neediest, as 
        determined by the State, and that have made a 
        commitment to develop healthy, high-performance school 
        buildings in accordance with the plan developed and 
        approved under paragraph (3)(A).
            ``(3) Implementation.--
                    ``(A) Plans.--A State educational agency 
                shall award subgrants under this subsection 
                only to local educational agencies that, in 
                consultation with the State educational agency 
                and State agencies with responsibilities 
                relating to energy and health, have developed 
                plans that the State educational agency 
                determines to be feasible and appropriate in 
                order to achieve the purposes for which the 
                subgrants are made.
                    ``(B) Supplementing grant funds.--The State 
                educational agency shall encourage local 
                educational agencies that receive subgrants 
                under this subsection to supplement their 
                subgrant funds with funds from other sources in 
                order to implement their plans.
    ``(b) Administration.--A State educational agency receiving 
a grant under this subpart shall use the grant funds made 
available under this subpart for one or more of the following:
            ``(1) To evaluate compliance by local educational 
        agencies with the requirements of this subpart.
            ``(2) To distribute information and materials on 
        healthy, high-performance school buildings for both new 
        and existing facilities.
            ``(3) To organize and conduct programs for school 
        board members, school district personnel, and others to 
        disseminate information on healthy, high-performance 
        school buildings.
            ``(4) To provide technical services and assistance 
        in planning and designing healthy, high-performance 
        school buildings.
            ``(5) To collect and monitor information pertaining 
        to healthy, high-performance school building projects.

``SEC. 5583. LOCAL USES OF FUNDS.

    ``(a) In General.--A local educational agency that receives 
a subgrant under section 5582(a) shall use the subgrant funds 
to plan and prepare for healthy, high-performance school 
building projects that--
            ``(1) reduce energy use to at least 30 percent 
        below that of a school constructed in compliance with 
        standards prescribed in chapter 8 of the 2000 
        International Energy Conservation Code, or a similar 
        State code intended to achieve substantially equivalent 
        results;
            ``(2) meet Federal and State health and safety 
        codes; and
            ``(3) support healthful, energy efficient, and 
        environmentally sound practices.
    ``(b) Use of Funds.--A local educational agency that 
receives a subgrant under section 5582(a) shall use funds for 
one or more of the following:
            ``(1) To develop a comprehensive energy audit of 
        the energy consumption characteristics of a building 
        and the need for additional energy conservation 
        measures necessary to allow schools to meet the 
        guidelines set out in subsection (a).
            ``(2) To produce a comprehensive analysis of 
        building strategies, designs, materials, and equipment 
        that--
                    ``(A) are cost effective, produce greater 
                energy efficiency, and enhance indoor air 
                quality; and
                    ``(B) can be used when conducting school 
                construction and renovation or purchasing 
                materials and equipment.
            ``(3) To obtain research and provide technical 
        services and assistance in planning and designing 
        healthy, high-performance school buildings, including 
        developing a timeline for implementation of such plans.

``SEC. 5584. REPORT TO CONGRESS.

    ``The Secretary shall conduct a biennial review of State 
actions implementing this subpart and carrying out the plans 
developed under this subpart through State and local funding, 
and shall submit a report to Congress on the results of such 
reviews.

``SEC. 5585. LIMITATIONS.

    ``No funds received under this subpart may be used for any 
of the following:
            ``(1) Payment of maintenance of costs in connection 
        with any projects constructed in whole or in part with 
        Federal funds provided under this subpart.
            ``(2) Construction, renovation, or repair of school 
        facilities.
            ``(3) Construction, renovation, repair, or 
        acquisition of a stadium or other facility primarily 
        used for athletic contests or exhibitions, or other 
        events for which admission is charged to the general 
        public.

``SEC. 5586. HEALTHY, HIGH-PERFORMANCE SCHOOL BUILDING DEFINED.

    ``In this subpart, the term `healthy, high-performance 
school building' means a school building in which the design, 
construction, operation, and maintenance--
            ``(1) use energy-efficient and affordable practices 
        and materials;
            ``(2) are cost-effective;
            ``(3) enhance indoor air quality; and
            ``(4) protect and conserve water.

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

``SEC. 5591. GRANT PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants to State 
educational agencies, from allotments made under section 5593, 
to enable the State educational agencies to award subgrants to 
local educational agencies to pay for capital expenses in 
accordance with this subpart.

``SEC. 5592. USES OF FUNDS.

    ``A local educational agency that receives a subgrant under 
this subpart shall use the subgrant funds only to pay for 
capital expenses incurred in providing equitable services for 
private school students under section 1120.

``SEC. 5593. ALLOTMENTS TO STATES.

    ``From the funds made available to carry out this subpart 
for a fiscal year, the Secretary shall allot to each State an 
amount that bears the same ratio to the funds made available as 
the number of private school students who received services 
under part A of title I in the State in the most recent year 
for which data, satisfactory to the Secretary, are available 
bears to the number of such students in all States in such 
year.

``SEC. 5594. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Applications.--A local educational agency that 
desires to receive a subgrant under this subpart shall submit 
an application to the State educational agency involved at such 
time, in such manner, and containing such information as the 
State educational agency may require.
    ``(b) Distribution.--A State educational agency shall award 
subgrants to local educational agencies within the State based 
on the degree of need set forth in their respective 
applications submitted under subsection (a).

``SEC. 5595. CAPITAL EXPENSES DEFINED.

    ``In this subpart, the term `capital expenses' means--
            ``(1) expenditures for noninstructional goods and 
        services, such as the purchase, lease, or renovation of 
        real and personal property, including mobile 
        educational units and leasing of neutral sites or 
        spaces;
            ``(2) insurance and maintenance costs;
            ``(3) transportation; and
            ``(4) other comparable goods and services.

``SEC. 5596. TERMINATION.

    ``The authority provided by this subpart terminates 
effective October 1, 2003.

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

``SEC. 5601. RESERVATION.

    ``The Secretary is authorized to provide additional 
assistance to meet special circumstances relating to the 
provision of education in local educational agencies eligible 
to receive assistance under section 8002.

``SEC. 5602. ELIGIBILITY.

    ``A local educational agency is eligible to receive 
additional assistance under this subpart only if such agency--
            ``(1) received a payment under both section 8002 
        and section 8003(b) for fiscal year 1996 and is 
        eligible to receive payments under those sections for 
        the year of application;
            ``(2) provided a free public education to children 
        described under subparagraphs (A), (B), or (D) of 
        section 8003(a)(1);
            ``(3) had a military installation located within 
        the geographic boundaries of the local educational 
        agency that was closed as a result of base closure or 
        realignment and, at the time at which the agency is 
        applying for a payment under this subpart, the agency 
        does not have a military installation located within 
        its geographic boundaries;
            ``(4) remains responsible for the free public 
        education of children residing in housing located on 
        Federal property within the boundaries of the closed 
        military installation but whose parents are on active 
        duty in the uniformed services and assigned to a 
        military activity located within the boundaries of an 
        adjoining local educational agency; and
            ``(5) demonstrates to the satisfaction of the 
        Secretary that such agency's per-pupil revenue derived 
        from local sources for current expenditures is not less 
        than that revenue for the preceding fiscal year.

``SEC. 5603. MAXIMUM AMOUNT.

    ``(a) Maximum Amount.--The maximum amount that a local 
educational agency is eligible to receive under this subpart 
for any fiscal year, when combined with its payment under 
section 8002(b), shall not be more than 50 percent of the 
maximum amount determined under section 8002(b).
    ``(b) Insufficient Funds.--If funds appropriated under 
section 5401 are insufficient to pay the amount determined 
under subsection (a), the Secretary shall ratably reduce the 
payment to each local education agency eligible under this 
subpart.
    ``(c) Excess Funds.--If funds appropriated under section 
5401 are in excess of the amount determined under subsection 
(a), the Secretary shall ratably distribute any excess funds to 
all local educational agencies eligible for payment under 
section 8002(b).

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

``SEC. 5611. SHORT TITLE AND FINDINGS.

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

``SEC. 5612. STATEMENT OF PURPOSES.

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

``SEC. 5613. PROGRAMS AUTHORIZED.

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

``SEC. 5614. APPLICATIONS.

    ``An application under this subpart shall--
            ``(1) set forth policies and procedures that will 
        ensure a comprehensive evaluation of the activities 
        assisted under this subpart, including an evaluation of 
        the practices, policies, and materials used by the 
        applicant and an evaluation or estimate of the 
        continued significance of the work of the project 
        following completion of the award period;
            ``(2) demonstrate how the applicant will address 
        perceptions of gender roles based on cultural 
        differences or stereotypes;
            ``(3) for applications for assistance under section 
        5613(b)(1), demonstrate how the applicant will foster 
        partnerships and, where applicable, share resources 
        with State educational agencies, local educational 
        agencies, institutions of higher education, community-
        based organizations (including organizations serving 
        women), parent, teacher, and student groups, 
        businesses, or other recipients of Federal educational 
        funding which may include State literacy resource 
        centers;
            ``(4) for applications for assistance under section 
        5613(b)(1), demonstrate how parental involvement in the 
        project will be encouraged; and
            ``(5) for applications for assistance under section 
        5613(b)(1), describe plans for continuation of the 
        activities assisted under this subpart with local 
        support following completion of the grant period and 
        termination of Federal support under this subpart.

``SEC. 5615. CRITERIA AND PRIORITIES.

    ``(a) Criteria and Priorities.--
            ``(1) In general.--The Secretary shall establish 
        separate criteria and priorities for awards under 
        paragraphs (1) and (2) of section 5613(b) to ensure 
        that funds under this subpart are used for programs 
        that most effectively will achieve the purposes of this 
        subpart.
            ``(2) Criteria.--The criteria described in 
        paragraph (1) may include the extent to which the 
        activities assisted under this subpart--
                    ``(A) address the needs of women and girls 
                of color and women and girls with disabilities;
                    ``(B) meet locally defined and documented 
                educational equity needs and priorities, 
                including compliance with title IX of the 
                Education Amendments of 1972;
                    ``(C) are a significant component of a 
                comprehensive plan for educational equity and 
                compliance with title IX of the Education 
                Amendments of 1972 in the particular school 
                district, institution of higher education, 
                vocational-technical institution, or other 
                educational agency or institution; and
                    ``(D) implement an institutional change 
                strategy with long-term impact that will 
                continue as a central activity of the applicant 
                after the grant under this subpart has 
                terminated.
    ``(b) Priorities.--In awarding grants under this subpart, 
the Secretary may give special consideration to applications--
            ``(1) submitted by applicants that have not 
        received assistance under this subpart or this 
        subpart's predecessor authorities;
            ``(2) for projects that will contribute 
        significantly to directly improving teaching and 
        learning practices in the local community; and
            ``(3) for projects that will--
                    ``(A) provide for a comprehensive approach 
                to enhancing gender equity in educational 
                institutions and agencies;
                    ``(B) draw on a variety of resources, 
                including the resources of local educational 
                agencies, community-based organizations, 
                institutions of higher education, and private 
                organizations;
                    ``(C) implement a strategy with long-term 
                impact that will continue as a central activity 
                of the applicant after the grant under this 
                subpart has terminated;
                    ``(D) address issues of national 
                significance that can be duplicated; and
                    ``(E) address the educational needs of 
                women and girls who suffer multiple or compound 
                discrimination based on sex and on race, ethnic 
                origin, disability, or age.
    ``(c) Special Rule.--To the extent feasible, the Secretary 
shall ensure that grants awarded under this subpart for each 
fiscal year address--
            ``(1) all levels of education, including preschool, 
        elementary and secondary education, higher education, 
        vocational education, and adult education;
            ``(2) all regions of the United States; and
            ``(3) urban, rural, and suburban educational 
        institutions.
    ``(d) Coordination.--Research activities supported under 
this subpart--
            ``(1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        ensure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by the Office; and
            ``(2) may include collaborative research activities 
        which are jointly funded and carried out with the 
        Office of Educational Research and Improvement.
    ``(e) Limitation.--Nothing in this subpart shall be 
construed as prohibiting men and boys from participating in any 
programs or activities assisted with funds under this subpart.

``SEC. 5616. REPORT.

    ``Not later than January 1, 2006, the Secretary shall 
submit to the President and Congress a report on the status of 
educational equity for girls and women in the Nation.

``SEC. 5617. ADMINISTRATION.

    ``(a) Evaluation and Dissemination.--Not later than January 
1, 2005, the Secretary shall evaluate and disseminate materials 
and programs developed under this subpart and shall report to 
Congress regarding such evaluation materials and programs.
    ``(b) Program Operations.--The Secretary shall ensure that 
the activities assisted under this subpart are administered 
within the Department by a person who has recognized 
professional qualifications and experience in the field of 
gender equity education.

``SEC. 5618. AMOUNT.

    ``From amounts made available to carry out this subpart for 
a fiscal year, not less than \2/3\ of such amount shall be used 
to carry out the activities described in section 5613(b)(1).''

SEC. 502. CONTINUATION OF AWARDS.

    (a) In General.--Notwithstanding any other provision of 
this Act or the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.), in the case of any agency or 
consortium that was awarded a grant under section 5111 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7211) 
or any person or agency that was awarded a contract or grant 
under part B, D, or E of title X of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 
et seq., 8131 et seq.), prior to the date of enactment of this 
Act, the Secretary of Education shall continue to provide funds 
in accordance with the terms of such award until the date on 
which the award period terminates under such terms.
    (b) Special Rule.--Notwithstanding any other provision of 
this Act, any person or agency that was awarded or entered into 
a grant, contract, or cooperative agreement under part B of 
title V of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7231 et seq.), prior to the date of enactment of 
this Act shall continue to receive funds in accordance with the 
terms of such grant, contract, or agreement until the date on 
which the grant, contract, or agreement period terminates under 
such terms.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

SEC. 601. FLEXIBILITY AND ACCOUNTABILITY.

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

               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                      ``Subpart 1--Accountability

``SEC. 6111. GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES.

    ``The Secretary shall make grants to States to enable the 
States--
            ``(1) to pay the costs of the development of the 
        additional State assessments and standards required by 
        section 1111(b), which may include the costs of working 
        in voluntary partnerships with other States, at the 
        sole discretion of each such State; and
            ``(2) if a State has developed the assessments and 
        standards required by section 1111(b), to administer 
        those assessments or to carry out other activities 
        described in this subpart and other activities related 
        to ensuring that the State's schools and local 
        educational agencies are held accountable for results, 
        such as the following:
                    ``(A) Developing challenging State academic 
                content and student academic achievement 
                standards and aligned assessments in academic 
                subjects for which standards and assessments 
                are not required by section 1111(b).
                    ``(B) Developing or improving assessments 
                of English language proficiency necessary to 
                comply with section 1111(b)(7).
                    ``(C) Ensuring the continued validity and 
                reliability of State assessments.
                    ``(D) Refining State assessments to ensure 
                their continued alignment with the State's 
                academic content standards and to improve the 
                alignment of curricula and instructional 
                materials.
                    ``(E) Developing multiple measures to 
                increase the reliability and validity of State 
                assessment systems.
                    ``(F) Strengthening the capacity of local 
                educational agencies and schools to provide all 
                students the opportunity to increase 
                educational achievement, including carrying out 
                professional development activities aligned 
                with State student academic achievement 
                standards and assessments.
                    ``(G) Expanding the range of accommodations 
                available to students with limited English 
                proficiency and students with disabilities to 
                improve the rates of inclusion of such 
                students, including professional development 
                activities aligned with State academic 
                achievement standards and assessments.
                    ``(H) Improving the dissemination of 
                information on student achievement and school 
                performance to parents and the community, 
                including the development of information and 
                reporting systems designed to identify best 
                educational practices based on scientifically 
                based research or to assist in linking records 
                of student achievement, length of enrollment, 
                and graduation over time.

``SEC. 6112. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

    ``(a) Grant Program Authorized.--From funds made available 
to carry out this subpart, the Secretary shall award, on a 
competitive basis, grants to State educational agencies that 
have submitted an application at such time, in such manner, and 
containing such information as the Secretary may require, which 
demonstrate to the satisfaction of the Secretary, that the 
requirements of this section will be met, for the following:
            ``(1) To enable States (or consortia of States) to 
        collaborate with institutions of higher education, 
        other research institutions, or other organizations to 
        improve the quality, validity, and reliability of State 
        academic assessments beyond the requirements for such 
        assessments described in section 1111(b)(3).
            ``(2) To measure student academic achievement using 
        multiple measures of student academic achievement from 
        multiple sources.
            ``(3) To chart student progress over time.
            ``(4) To evaluate student academic achievement 
        through the development of comprehensive academic 
        assessment instruments, such as performance and 
        technology-based academic assessments.
    ``(b) Application.--Each State wishing to apply for funds 
under this section shall include in its State plan under part A 
of title I such information as the Secretary may require.
    ``(c) Annual Report.--Each State educational agency 
receiving a grant under this section shall submit an annual 
report to the Secretary describing its activities, and the 
result of those activities, under the grant.

``SEC. 6113. FUNDING.

    ``(a) Authorization of Appropriations.--
            ``(1) National assessment of educational 
        progress.--For the purpose of administering the State 
        assessments under the National Assessment of 
        Educational Progress, there are authorized to be 
        appropriated $72,000,000 for fiscal year 2002, and such 
        sums as may be necessary for each of the 5 succeeding 
        fiscal years.
            ``(2) State assessments and related activities.--
        For the purpose of carrying out this subpart, there are 
        authorized to be appropriated $490,000,000 for fiscal 
        year 2002, and such sums as may be necessary for each 
        of the 5 succeeding fiscal years.
    ``(b) Allotment of Appropriated Funds.--
            ``(1) In general.--From amounts made available for 
        each fiscal year under subsection (a)(2) that are equal 
        to or less than the amount described in section 
        1111(b)(3)(D) (hereinafter in this subsection referred 
        to as the `trigger amount'), the Secretary shall--
                    ``(A) reserve \1/2\ of 1 percent for the 
                Bureau of Indian Affairs;
                    ``(B) reserve \1/2\ of 1 percent for the 
                outlying areas; and
                    ``(C) from the remainder, allocate to each 
                State an amount equal to--
                            ``(i) $3,000,000; and
                            ``(ii) with respect to any amounts 
                        remaining after the allocation is made 
                        under clause (i), an amount that bears 
                        the same relationship to such total 
                        remaining amounts as the number of 
                        students ages 5 through 17 in the State 
                        (as determined by the Secretary on the 
                        basis of the most recent satisfactory 
                        data) bears to the total number of such 
                        students in all States.
            ``(2) Remainder.--Any amounts remaining for a 
        fiscal year after the Secretary carries out paragraph 
        (1) shall be made available as follows:
                    ``(A)(i) To award funds under section 6112 
                to States according to the quality, needs, and 
                scope of the State application under that 
                section.
                    ``(ii) In determining the grant amount 
                under clause (i), the Secretary shall ensure 
                that a State's grant shall include an amount 
                that bears the same relationship to the total 
                funds available under this paragraph for the 
                fiscal year as the number of students ages 5 
                through 17 in the State (as determined by the 
                Secretary on the basis of the most recent 
                satisfactory data) bears to the total number of 
                such students in all States.
                    ``(B) Any amounts remaining after the 
                Secretary awards funds under subparagraph (A) 
                shall be allocated to each State that did not 
                receive a grant under such subparagraph, in an 
                amount that bears the same relationship to the 
                total funds available under this subparagraph 
                as the number of students ages 5 through 17 in 
                the State (as determined by the Secretary on 
                the basis of the most recent satisfactory data) 
                bears to the total number of such students in 
                all States.
    ``(c) State Defined.--In this section, the term `State' 
means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.

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

``SEC. 6121. SHORT TITLE.

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

``SEC. 6122. PURPOSE.

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

``SEC. 6123. TRANSFERABILITY OF FUNDS.

    ``(a) Transfers by States.--
            ``(1) In general.--In accordance with this subpart, 
        a State may transfer not more than 50 percent of the 
        nonadministrative State funds (including funds 
        transferred under paragraph (2)) allotted to the State 
        for use for State-level activities under the following 
        provisions for a fiscal year to one or more of the 
        State's allotments for such fiscal year under any other 
        of such provisions:
                    ``(A) Section 2113(a)(3).
                    ``(B) Section 2412(a)(1).
                    ``(C) Subsections (a)(1) (with the 
                agreement of the Governor) and (c)(1) of 
                section 4112 and section 4202(c)(3).
                    ``(D) Section 5112(b).
            ``(2) Additional funds for title i.--In accordance 
        with this subpart and subject to the 50 percent 
        limitation described in paragraph (1), a State may 
        transfer any funds allotted to the State under a 
        provision listed in paragraph (1) to its allotment 
        under title I.
    ``(b) Transfers by Local Educational Agencies.--
            ``(1) Authority to transfer funds.--
                    ``(A) In general.--In accordance with this 
                subpart, a local educational agency (except a 
                local educational agency identified for 
                improvement under section 1116(c) or subject to 
                corrective action under section 1116(c)(9)) may 
                transfer not more than 50 percent of the funds 
                allocated to it (including funds transferred 
                under subparagraph (C)) under each of the 
                provisions listed in paragraph (2) for a fiscal 
                year to one or more of its allocations for such 
                fiscal year under any other provision listed in 
                paragraph (2).
                    ``(B) Agencies identified for 
                improvement.--In accordance with this subpart, 
                a local educational agency identified for 
                improvement under section 1116(c) may transfer 
                not more than 30 percent of the funds allocated 
                to it (including funds transferred under 
                subparagraph (C)) under each of the provisions 
                listed in paragraph (2) for a fiscal year--
                            ``(i) to its allocation for school 
                        improvement for such fiscal year under 
                        section 1003; or
                            ``(ii) to any other allocation for 
                        such fiscal year if such transferred 
                        funds are used only for local 
                        educational agency improvement 
                        activities consistent with section 
                        1116(c).
                    ``(C) Additional funds for title i.--In 
                accordance with this subpart and subject to the 
                percentage limitation described in subparagraph 
                (A) or (B), as applicable, a local educational 
                agency may transfer funds allocated to such 
                agency under any of the provisions listed in 
                paragraph (2) for a fiscal year to its 
                allocation for part A of title I for that 
                fiscal year.
            ``(2) Applicable provisions.--A local educational 
        agency may transfer funds under subparagraph (A), (B), 
        or (C) of paragraph (1) from allocations made under 
        each of the following provisions:
                    ``(A) Section 2121.
                    ``(B) Section 2412(a)(2)(A).
                    ``(C) Section 4112(b)(1).
                    ``(D) Section 5112(a).
    ``(c) No Transfer of Title I Funds.--A State or a local 
educational agency may not transfer under this subpart to any 
other program any funds allotted or allocated to it for part A 
of title I.
    ``(d) Modification of Plans and Applications; 
Notification.--
            ``(1) State transfers.--Each State that makes a 
        transfer of funds under this section shall--
                    ``(A) modify, to account for such transfer, 
                each State plan, or application submitted by 
                the State, to which such funds relate;
                    ``(B) not later than 30 days after the date 
                of such transfer, submit a copy of such 
                modified plan or application to the Secretary; 
                and
                    ``(C) not later than 30 days before the 
                effective date of such transfer, notify the 
                Secretary of such transfer.
            ``(2) Local transfers.--Each local educational 
        agency that makes a transfer of funds under this 
        section shall--
                    ``(A) modify, to account for such transfer, 
                each local plan, or application submitted by 
                the agency, to which such funds relate;
                    ``(B) not later than 30 days after the date 
                of such transfer, submit a copy of such 
                modified plan or application to the State; and
                    ``(C) not later than 30 days before the 
                effective date of such transfer, notify the 
                State of such transfer.
    ``(e) Applicable Rules.--
            ``(1) In general.--Except as otherwise provided in 
        this subpart, funds transferred under this section are 
        subject to each of the rules and requirements 
        applicable to the funds under the provision to which 
        the transferred funds are transferred.
            ``(2) Consultation.--Each State educational agency 
        or local educational agency that transfers funds under 
        this section shall conduct consultations in accordance 
        with section 9501, if such transfer transfers funds 
        from a program that provides for the participation of 
        students, teachers, or other educational personnel, 
        from private schools.

         ``Subpart 3--State and Local Flexibility Demonstration

``SEC. 6131. SHORT TITLE.

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

``SEC. 6132. PURPOSE.

    ``The purpose of this subpart is to create options for 
selected State educational agencies and local educational 
agencies--
            ``(1) to improve the academic achievement of all 
        students, and to focus the resources of the Federal 
        Government upon such achievement;
            ``(2) to improve teacher quality and subject matter 
        mastery, especially in mathematics, reading, and 
        science;
            ``(3) to better empower parents, educators, 
        administrators, and schools to effectively address the 
        needs of their children and students;
            ``(4) to give participating State educational 
        agencies and local educational agencies greater 
        flexibility in determining how to increase their 
        students' academic achievement and implement education 
        reforms in their schools;
            ``(5) to eliminate barriers to implementing 
        effective State and local education reform, while 
        preserving the goals of opportunity for all students 
        and accountability for student progress;
            ``(6) to hold participating State educational 
        agencies and local educational agencies accountable for 
        increasing the academic achievement of all students, 
        especially disadvantaged students; and
            ``(7) to narrow achievement gaps between the lowest 
        and highest achieving groups of students so that no 
        child is left behind.

``SEC. 6133. GENERAL PROVISION.

    ``For purposes of this subpart, any State that is one local 
educational agency shall be considered a State educational 
agency and not a local educational agency.

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``SEC. 6141. STATE FLEXIBILITY.

    ``(a) Flexibility Authority.--Except as otherwise provided 
in this chapter, the Secretary shall, on a competitive basis, 
grant flexibility authority to not more than 7 eligible State 
educational agencies, under which the agencies may consolidate 
and use funds in accordance with section 6142.
    ``(b) Definitions.--In this chapter:
            ``(1) Eligible state educational agency.--The term 
        `eligible State educational agency' means a State 
        educational agency that--
                    ``(A) submits an approvable application 
                under subsection (c); and
                    ``(B) proposes performance agreements--
                            ``(i) that shall be entered into 
                        with not fewer than 4, and not more 
                        than 10, local educational agencies;
                            ``(ii) not fewer than half of which 
                        shall be entered into with high-poverty 
                        local educational agencies; and
                            ``(iii) that require the local 
                        educational agencies described in 
                        clause (i) to align their use of 
                        consolidated funds under section 6152 
                        with the State educational agency's use 
                        of consolidated funds under section 
                        6142.
            ``(2) High-poverty local educational agency.--The 
        term `high-poverty local educational agency' means a 
        local educational agency for which 20 percent or more 
        of the children who are age 5 through 17, and served by 
        the local educational agency, are from families with 
        incomes below the poverty line.
    ``(c) State Applications.--
            ``(1) Applications.--To be eligible to receive 
        flexibility authority under this chapter, a State 
        educational agency shall submit an application to the 
        Secretary at such time, in such manner, and containing 
        such information as the Secretary may require, 
        including--
                    ``(A) information demonstrating, to the 
                satisfaction of the Secretary, that the grant 
                of authority offers substantial promise of--
                            ``(i) assisting the State 
                        educational agency in making adequate 
                        yearly progress, as defined under 
                        section 1111(b)(2); and
                            ``(ii) aligning State and local 
                        reforms and assisting the local 
                        educational agencies that enter into 
                        performance agreements with the State 
                        educational agency under paragraph (2) 
                        in making such adequate yearly 
                        progress;
                    ``(B) the performance agreements that the 
                State educational agency proposes to enter into 
                with eligible local educational agencies under 
                paragraph (2);
                    ``(C) information demonstrating that the 
                State educational agency has consulted with and 
                involved parents, representatives of local 
                educational agencies, and other educators in 
                the development of the terms of the grant of 
                authority;
                    ``(D) a provision specifying that the grant 
                of flexibility authority shall be for a term of 
                not more than 5 years;
                    ``(E) a list of the programs described in 
                section 6142(b) that are included in the scope 
                of the grant of authority;
                    ``(F) a provision specifying that no 
                requirements of any program described in 
                section 6142(b) and included by a State 
                educational agency in the scope of the grant of 
                authority shall apply to that agency, except as 
                otherwise provided in this chapter;
                    ``(G) a 5-year plan describing how the 
                State educational agency intends to consolidate 
                and use the funds from programs included in the 
                scope of the grant of authority, for any 
                educational purpose authorized under this Act, 
                in order to make adequate yearly progress and 
                advance the education priorities of the State 
                and the local educational agencies with which 
                the State educational agency enters into 
                performance agreements;
                    ``(H) an assurance that the State 
                educational agency will provide parents, 
                teachers, and representatives of local 
                educational agencies and schools with notice 
                and an opportunity to comment on the proposed 
                terms of the grant of authority;
                    ``(I) an assurance that the State 
                educational agency, and the local educational 
                agencies with which the State educational 
                agency enters into performance agreements, will 
                use fiscal control and fund accounting 
                procedures that will ensure proper disbursement 
                of, and accounting for, Federal funds 
                consolidated and used under the grant of 
                authority;
                    ``(J) an assurance that the State 
                educational agency, and the local educational 
                agencies with which the State educational 
                agency enters into performance agreements, will 
                meet the requirements of all applicable Federal 
                civil rights laws in carrying out the grant of 
                authority, including consolidating and using 
                funds under the grant of authority;
                    ``(K) an assurance that, in consolidating 
                and using funds under the grant of authority--
                            ``(i) the State educational agency, 
                        and the local educational agencies with 
                        which the State educational agency 
                        enters into performance agreements, 
                        will provide for the equitable 
                        participation of students and 
                        professional staff in private schools 
                        consistent with section 9501; and
                            ``(ii) that sections 9502, 9503, 
                        and 9504 shall apply to all services 
                        and assistance provided with such funds 
                        in the same manner as such sections 
                        apply to services and assistance 
                        provided in accordance with section 
                        9501;
                    ``(L) an assurance that the State 
                educational agency will, for the duration of 
                the grant of authority, use funds consolidated 
                under section 6142 only to supplement the 
                amount of funds that would, in the absence of 
                those Federal funds, be made available from 
                non-Federal sources for the education of 
                students participating in programs assisted 
                with the consolidated funds, and not to 
                supplant those funds; and
                    ``(M) an assurance that the State 
                educational agency shall, not later than 1 year 
                after the date on which the Secretary makes the 
                grant of authority, and annually thereafter 
                during the term of the grant of authority, 
                disseminate widely to parents and the general 
                public, transmit to the Secretary, distribute 
                to print and broadcast media, and post on the 
                Internet, a report, which shall include a 
                detailed description of how the State 
                educational agency, and the local educational 
                agencies with which the State educational 
                agency enters into performance agreements, used 
                the funds consolidated under the grant of 
                authority to make adequate yearly progress and 
                advance the education priorities of the State 
                and local educational agencies in the State.
            ``(2) Proposed performance agreements with local 
        educational agencies.--
                    ``(A) In general.--A State educational 
                agency that wishes to receive flexibility 
                authority under this subpart shall propose 
                performance agreements that meet the 
                requirements of clauses (i) and (ii) of 
                subsection (b)(1)(B) (subject to approval of 
                the application or amendment involved under 
                subsection (d) or (e)).
                    ``(B) Performance agreements.--Each 
                proposed performance agreement with a local 
                educational agency shall--
                            ``(i) contain plans for the local 
                        educational agency to consolidate and 
                        use funds in accordance with section 
                        6152, for activities that are aligned 
                        with the State educational agency's 
                        plan described in paragraph (1)(G);
                            ``(ii) be subject to the 
                        requirements of chapter B relating to 
                        agreements between the Secretary and a 
                        local educational agency, except--
                                    ``(I) that, as appropriate, 
                                references in that chapter to 
                                the Secretary shall be deemed 
                                to be references to the State 
                                educational agency; and
                                    ``(II) as otherwise 
                                provided in this chapter; and
                            ``(iii) contain an assurance that 
                        the local educational agency will, for 
                        the duration of the grant of authority, 
                        use funds consolidated under section 
                        6152 only to supplement the amount of 
                        funds that would, in the absence of 
                        those Federal funds, be made available 
                        from non-Federal sources for the 
                        education of students participating in 
                        programs assisted with the consolidated 
                        funds, and not to supplant those funds.
    ``(d) Approval and Selection.--The Secretary shall--
            ``(1) establish a peer review process to assist in 
        the review of proposed State applications under this 
        section; and
            ``(2) appoint individuals to participate in the 
        peer review process who are--
                    ``(A) representative of parents, teachers, 
                State educational agencies, and local 
                educational agencies; and
                    ``(B) familiar with educational standards, 
                assessments, accountability, curricula, 
                instruction, and staff development, and other 
                diverse educational needs of students.
    ``(e) Amendment to Grant of Authority.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary shall amend the grant of flexibility 
        authority made to a State educational agency under this 
        chapter, in each of the following circumstances:
                    ``(A) Reduction in scope of the grant of 
                authority.--Not later than 1 year after 
                receiving a grant of flexibility authority, the 
                State educational agency seeks to amend the 
                grant of authority to remove from the scope of 
                the grant of authority any program described in 
                section 6142(b).
                    ``(B) Expansion of scope of the grant of 
                authority.--Not later than 1 year after 
                receiving a grant of flexibility authority, the 
                State educational agency seeks to amend the 
                grant of authority to include in the scope of 
                the grant of authority any additional program 
                described in section 6142(b) or any additional 
                achievement indicators for which the State will 
                be held accountable.
                    ``(C) Changes with respect to number of 
                performance agreements.--The State educational 
                agency seeks to amend the grant of authority to 
                include or remove performance agreements that 
                the State educational agency proposes to enter 
                into with eligible local educational agencies, 
                except that in no case may the State 
                educational agency enter into performance 
                agreements that do not meet the requirements of 
                clauses (i) and (ii) of subsection (b)(1)(B).
            ``(2) Approval and disapproval.--
                    ``(A) Deemed approval.--A proposed 
                amendment to a grant of flexibility authority 
                submitted by a State educational agency 
                pursuant to paragraph (1) shall be deemed to be 
                approved by the Secretary unless the Secretary 
                makes a written determination, prior to the 
                expiration of the 120-day period beginning on 
                the date on which the Secretary received the 
                proposed amendment, that the proposed amendment 
                is not in compliance with this chapter.
                    ``(B) Disapproval.--The Secretary shall not 
                finally disapprove the proposed amendment, 
                except after giving the State educational 
                agency notice and an opportunity for a hearing.
                    ``(C) Notification.--If the Secretary finds 
                that the proposed amendment is not in 
                compliance, in whole or in part, with this 
                chapter, the Secretary shall--
                            ``(i) give the State educational 
                        agency notice and an opportunity for a 
                        hearing; and
                            ``(ii) notify the State educational 
                        agency of the finding of noncompliance 
                        and, in such notification, shall--
                                    ``(I) cite the specific 
                                provisions in the proposed 
                                amendment that are not in 
                                compliance; and
                                    ``(II) request additional 
                                information, only as to the 
                                noncompliant provisions, needed 
                                to make the proposed amendment 
                                compliant.
                    ``(D) Response.--If the State educational 
                agency responds to the Secretary's notification 
                described in subparagraph (C)(ii) during the 
                45-day period beginning on the date on which 
                the agency received the notification, and 
                resubmits the proposed amendment with the 
                requested information described in subparagraph 
                (C)(ii)(II), the Secretary shall approve or 
                disapprove such proposed amendment prior to the 
                later of--
                            ``(i) the expiration of the 45-day 
                        period beginning on the date on which 
                        the proposed amendment is resubmitted; 
                        or
                            ``(ii) the expiration of the 120-
                        day period described in subparagraph 
                        (A).
                    ``(E) Failure to respond.--If the State 
                educational agency does not respond to the 
                Secretary's notification described in 
                subparagraph (C)(ii) during the 45-day period 
                beginning on the date on which the agency 
                received the notification, such proposed 
                amendment shall be deemed to be disapproved.
            ``(3) Treatment of program funds withdrawn from 
        grant of authority.--Beginning on the effective date of 
        an amendment executed under paragraph (1)(A), each 
        program requirement of each program removed from the 
        scope of a grant of authority shall apply to the use of 
        funds made available under the program by the State 
        educational agency and each local educational agency 
        with which the State educational agency has a 
        performance agreement.

``SEC. 6142. CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
            ``(1) Authority.--Under a grant of flexibility 
        authority made under this chapter, a State educational 
        agency may consolidate Federal funds described in 
        subsection (b) and made available to the agency, and 
        use such funds for any educational purpose authorized 
        under this Act.
            ``(2) Program requirements.--Except as otherwise 
        provided in this chapter, a State educational agency 
        may use funds under paragraph (1) notwithstanding the 
        program requirements of the program under which the 
        funds were made available to the State.
    ``(b) Eligible Funds and Programs.--
            ``(1) Funds.--The funds described in this 
        subsection are funds, for State-level activities and 
        State administration, that are described in the 
        following provisions:
                    ``(A) Section 1004.
                    ``(B) Paragraphs (4) and (5) of section 
                1202(d).
                    ``(C) Section 2113(a)(3).
                    ``(D) Section 2412(a)(1).
                    ``(E) Subsections (a) (with the agreement 
                of the Governor), (b)(2), and (c)(1) of section 
                4112.
                    ``(F) Paragraphs (2) and (3) of section 
                4202(c).
                    ``(G) Section 5112(b).
            ``(2) Programs.--The programs described in this 
        subsection are the programs authorized to be carried 
        out with funds described in paragraph (1).
    ``(c) Special Rule.--A State educational agency that 
receives a grant of flexibility authority under this chapter--
            ``(1) shall ensure that the funds described in 
        section 5112(a) are allocated to local educational 
        agencies in the State in accordance with section 
        5112(a); but
            ``(2) may specify how the local educational 
        agencies shall use the allocated funds.

``SEC. 6143. PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Midterm Review.--
            ``(1) Failure to make adequate yearly progress.--
        If, during the term of a grant of flexibility authority 
        under this chapter, a State educational agency fails to 
        make adequate yearly progress for 2 consecutive years, 
        the Secretary shall, after providing notice and an 
        opportunity for a hearing, terminate the grant of 
        authority promptly.
            ``(2) Noncompliance.--The Secretary may, after 
        providing notice and an opportunity for a hearing 
        (including the opportunity to provide evidence as 
        described in paragraph (3)), terminate a grant of 
        flexibility authority for a State if there is evidence 
        that the State educational agency involved has failed 
        to comply with the terms of the grant of authority.
            ``(3) Evidence.--If a State educational agency 
        believes that a determination of the Secretary under 
        this subsection is in error for statistical or other 
        substantive reasons, the State educational agency may 
        provide supporting evidence to the Secretary, and the 
        Secretary shall consider that evidence before making a 
        final termination determination under this subsection.
    ``(b) Final Review.--
            ``(1) In general.--If, at the end of the 5-year 
        term of a grant of flexibility authority made under 
        this chapter, the State educational agency has not met 
        the requirements described in section 6141(c), the 
        Secretary may not renew the grant of flexibility 
        authority under section 6144.
            ``(2) Compliance.--Beginning on the date on which 
        such term ends, the State educational agency, and the 
        local educational agencies with which the State 
        educational agency has entered into performance 
        agreements, shall be required to comply with each of 
        the program requirements in effect on such date for 
        each program that was included in the grant of 
        authority.

``SEC. 6144. RENEWAL OF GRANT OF FLEXIBILITY AUTHORITY.

    ``(a) In General.--Except as provided in section 6143 and 
in accordance with this section, if a State educational agency 
has met, by the end of the original 5-year term of a grant of 
flexibility authority under this chapter, the requirements 
described in section 6141(c), the Secretary shall renew a grant 
of flexibility authority for one additional 5-year term.
    ``(b) Renewal.--The Secretary may not renew a grant of 
flexibility authority under this chapter unless, not later than 
6 months before the end of the original term of the grant of 
authority, the State educational agency seeking the renewal 
notifies the Secretary, and the local educational agencies with 
which the State educational agency has entered into performance 
agreements, of the agency's intention to renew the grant of 
authority.
    ``(c) Effective Date.--A renewal under this section shall 
be effective on the later of--
            ``(1) the expiration of the original term of the 
        grant of authority; or
            ``(2) the date on which the State educational 
        agency seeking the renewal provides to the Secretary 
        all data required for the application described in 
        section 6141(c).

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``SEC. 6151. LOCAL FLEXIBILITY DEMONSTRATION AGREEMENTS.

    ``(a) Authority.--Except as otherwise provided in this 
chapter, the Secretary shall, on a competitive basis, enter 
into local flexibility demonstration agreements--
            ``(1) with local educational agencies that submit 
        approvable proposed agreements under subsection (c) and 
        that are selected under subsection (b); and
            ``(2) under which those agencies may consolidate 
        and use funds in accordance with section 6152.
    ``(b) Selection of Local Educational Agencies.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary shall enter into local flexibility 
        demonstration agreements under this chapter with not 
        more than 80 local educational agencies. Each local 
        educational agency shall be selected on a competitive 
        basis from among those local educational agencies 
        that--
                    ``(A) submit a proposed local flexibility 
                demonstration agreement under subsection (c) to 
                the Secretary and demonstrate, to the 
                satisfaction of the Secretary, that the 
                agreement--
                            ``(i) has a substantial promise of 
                        assisting the local educational agency 
                        in meeting the State's definition of 
                        adequate yearly progress, advancing the 
                        education priorities of the local 
                        educational agency, meeting the general 
                        purposes of the programs included under 
                        this chapter and the purposes of this 
                        part, improving student achievement, 
                        and narrowing achievement gaps in 
                        accordance with section 1111(b);
                            ``(ii) meets the requirements of 
                        this chapter; and
                            ``(iii) contains a plan to 
                        consolidate and use funds in accordance 
                        with section 6152 in order to meet the 
                        State's definition of adequate yearly 
                        progress and the local educational 
                        agency's specific, measurable goals for 
                        improving student achievement and 
                        narrowing achievement gaps; and
                    ``(B) have consulted and involved parents 
                and other educators in the development of the 
                proposed local flexibility demonstration 
                agreement.
            ``(2) Geographic distribution.--
                    ``(A) Initial agreements.--The Secretary 
                may enter into not more than 3 local 
                flexibility demonstration agreements under this 
                chapter with local educational agencies in each 
                State that does not have a grant of flexibility 
                authority under chapter A.
                    ``(B) Urban and rural areas.--If more than 
                3 local educational agencies in a State submit 
                approvable local flexibility demonstration 
                agreements under this chapter, the Secretary 
                shall select local educational agencies with 
                which to enter into such agreements in a manner 
                that ensures an equitable distribution among 
                such agencies serving urban and rural areas.
                    ``(C) Priority of states to enter into 
                state flexibility demonstration agreements.--
                Notwithstanding any other provision of this 
                part, a local educational agency may not seek 
                to enter into a local flexibility demonstration 
                agreement under this chapter if that agency is 
                located in a State for which the State 
                educational agency--
                            ``(i) has, not later than 4 months 
                        after the date of enactment of the No 
                        Child Left Behind Act of 2001, notified 
                        the Secretary of its intent to apply 
                        for a grant of flexibility authority 
                        under chapter A and, within such period 
                        of time as the Secretary may establish, 
                        is provided with such authority by the 
                        Secretary; or
                            ``(ii) has, at any time after such 
                        period, been granted flexibility 
                        authority under chapter A.
    ``(c) Required Terms of Local Flexibility Demonstration 
Agreement.--Each local flexibility demonstration agreement 
entered into with the Secretary under this chapter shall 
contain each of the following terms:
            ``(1) Duration.--The local flexibility 
        demonstration agreement shall be for a term of 5 years.
            ``(2) Application of program requirements.--The 
        local flexibility demonstration agreement shall provide 
        that no requirements of any program described in 
        section 6152 and included by a local educational agency 
        in the scope of its agreement shall apply to that 
        agency, except as otherwise provided in this chapter.
            ``(3) List of programs.--The local flexibility 
        demonstration agreement shall list which of the 
        programs described in section 6152 are included in the 
        scope of the agreement.
            ``(4) Use of funds to improve student 
        achievement.--The local flexibility demonstration 
        agreement shall contain a 5-year plan describing how 
        the local educational agency intends to consolidate and 
        use the funds from programs included in the scope of 
        the agreement for any educational purpose authorized 
        under this Act to advance the education priorities of 
        the local educational agency, meet the general purposes 
        of the included programs, improve student achievement, 
        and narrow achievement gaps in accordance with section 
        1111(b).
            ``(5) Local input.--The local flexibility 
        demonstration agreement shall contain an assurance that 
        the local educational agency will provide parents, 
        teachers, and representatives of schools with notice 
        and an opportunity to comment on the proposed terms of 
        the local flexibility demonstration agreement.
            ``(6) Fiscal responsibilities.--The local 
        flexibility demonstration agreement shall contain an 
        assurance that the local educational agency will use 
        fiscal control and fund accounting procedures that will 
        ensure proper disbursement of, and accounting for, 
        Federal funds consolidated and used under the 
        agreement.
            ``(7) Civil rights.--The local flexibility 
        demonstration agreement shall contain an assurance that 
        the local educational agency will meet the requirements 
        of all applicable Federal civil rights laws in carrying 
        out the agreement and in consolidating and using the 
        funds under the agreement.
            ``(8) Private school participation.--The local 
        flexibility demonstration agreement shall contain an 
        assurance that the local educational agency agrees that 
        in consolidating and using funds under the agreement--
                    ``(A) the local educational agency, will 
                provide for the equitable participation of 
                students and professional staff in private 
                schools consistent with section 9501; and
                    ``(B) that sections 9502, 9503, and 9504 
                shall apply to all services and assistance 
                provided with such funds in the same manner as 
                such sections apply to services and assistance 
                provided in accordance with section 9501.
            ``(9) Supplanting.-- The local flexibility 
        demonstration agreement shall contain an assurance that 
        the local educational agency will, for the duration of 
        the grant of authority, use funds consolidated under 
        section 6152 only to supplement the amount of funds 
        that would, in the absence of those Federal funds, be 
        made available from non-Federal sources for the 
        education of students participating in programs 
        assisted with the consolidated funds, and not to 
        supplant those funds.
            ``(10) Annual reports.--The local flexibility 
        demonstration agreement shall contain an assurance that 
        the local educational agency shall, not later than 1 
        year after the date on which the Secretary enters into 
        the agreement, and annually thereafter during the term 
        of the agreement, disseminate widely to parents and the 
        general public, transmit to the Secretary, and the 
        State educational agency for the State in which the 
        local educational agency is located, distribute to 
        print and broadcast media, and post on the Internet, a 
        report that includes a detailed description of how the 
        local educational agency used the funds consolidated 
        under the agreement to improve student academic 
        achievement and reduce achievement gaps.
    ``(d) Peer Review.--The Secretary shall--
            ``(1) establish a peer review process to assist in 
        the review of proposed local flexibility demonstration 
        agreements under this chapter; and
            ``(2) appoint individuals to the peer review 
        process who are representative of parents, teachers, 
        State educational agencies, and local educational 
        agencies, and who are familiar with educational 
        standards, assessments, accountability, curriculum, 
        instruction and staff development, and other diverse 
        educational needs of students.
    ``(e) Amendment to Performance Agreement.--
            ``(1) In general.--In each of the following 
        circumstances, the Secretary shall amend a local 
        flexibility demonstration agreement entered into with a 
        local educational agency under this chapter:
                    ``(A) Reduction in scope of local 
                flexibility demonstration agreement.--Not later 
                than 1 year after entering into a local 
                flexibility demonstration agreement, the local 
                educational agency seeks to amend the agreement 
                to remove from the scope any program described 
                in section 6152.
                    ``(B) Expansion of scope of local 
                flexibility demonstration agreement.--Not later 
                than 1 year after entering into the local 
                flexibility demonstration agreement, a local 
                educational agency seeks to amend the agreement 
                to include in its scope any additional program 
                described in section 6251 or any additional 
                achievement indicators for which the local 
                educational agency will be held accountable.
            ``(2) Approval and disapproval.--
                    ``(A) Deemed approval.--A proposed 
                amendment to a local flexibility demonstration 
                agreement pursuant to paragraph (1) shall be 
                deemed to be approved by the Secretary unless 
                the Secretary makes a written determination, 
                prior to the expiration of the 120-day period 
                beginning on the date on which the Secretary 
                received the proposed amendment, that the 
                proposed amendment is not in compliance with 
                this chapter.
                    ``(B) Disapproval.--The Secretary shall not 
                finally disapprove the proposed amendment, 
                except after giving the local educational 
                agency notice and an opportunity for a hearing.
                    ``(C) Notification.--If the Secretary finds 
                that the proposed amendment is not in 
                compliance, in whole or in part, with this 
                chapter, the Secretary shall--
                            ``(i) give the local educational 
                        agency notice and an opportunity for a 
                        hearing; and
                            ``(ii) notify the local educational 
                        agency of the finding of noncompliance 
                        and, in such notification, shall--
                                    ``(I) cite the specific 
                                provisions in the proposed 
                                amendment that are not in 
                                compliance; and
                                    ``(II) request additional 
                                information, only as to the 
                                noncompliant provisions, needed 
                                to make the proposed amendment 
                                compliant.
                    ``(D) Response.--If the local educational 
                agency responds to the Secretary's notification 
                described in subparagraph (C)(ii) during the 
                45-day period beginning on the date on which 
                the agency received the notification, and 
                resubmits the proposed amendment with the 
                requested information described in subparagraph 
                (C)(ii)(II), the Secretary shall approve or 
                disapprove such proposed amendment prior to the 
                later of--
                            ``(i) the expiration of the 45-day 
                        period beginning on the date on which 
                        the proposed amendment is resubmitted; 
                        or
                            ``(ii) the expiration of the 120-
                        day period described in subparagraph 
                        (A).
                    ``(E) Failure to respond.--If the local 
                educational agency does not respond to the 
                Secretary's notification described in 
                subparagraph (C)(ii) during the 45-day period 
                beginning on the date on which the agency 
                received the notification, such proposed 
                amendment shall be deemed to be disapproved.
            ``(3) Treatment of program funds withdrawn from 
        agreement.--Beginning on the effective date of an 
        amendment executed under paragraph (1)(A), each program 
        requirement of each program removed from the scope of a 
        local flexibility demonstration agreement shall apply 
        to the use of funds made available under the program by 
        the local educational agency.

``SEC. 6152. CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
            ``(1) Authority.--Under a local flexibility 
        demonstration agreement entered into under this 
        chapter, a local educational agency may consolidate 
        Federal funds made available to the agency under the 
        provisions listed in subsection (b) and use such funds 
        for any educational purpose permitted under this Act.
            ``(2) Program requirements.--Except as otherwise 
        provided in this chapter, a local educational agency 
        may use funds under paragraph (1) notwithstanding the 
        program requirements of the program under which the 
        funds were made available to the agency.
    ``(b) Eligible Programs.--Program funds made available to 
local educational agencies on the basis of a formula under the 
following provisions may be consolidated and used under 
subsection (a):
            ``(1) Subpart 2 of part A of title II.
            ``(2) Subpart 1 of part D of title II.
            ``(3) Subpart 1 of part A of title IV.
            ``(4) Subpart 1 of part A of title V.

``SEC. 6153. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.

    ``Each local educational agency that has entered into a 
local flexibility demonstration agreement with the Secretary 
under this chapter may use for administrative purposes not more 
than 4 percent of the total amount of funds allocated to the 
agency under the programs included in the scope of the 
agreement.

``SEC. 6154. PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Midterm Review.--
            ``(1) Failure to make adequate yearly progress.--
        If, during the term of a local flexibility 
        demonstration agreement, a local educational agency 
        fails to make adequate yearly progress for 2 
        consecutive years, the Secretary shall, after notice 
        and opportunity for a hearing, promptly terminate the 
        agreement.
            ``(2) Noncompliance.--The Secretary may, after 
        providing notice and an opportunity for a hearing 
        (including the opportunity to provide information as 
        provided for in paragraph (3)), terminate a local 
        flexibility demonstration agreement under this chapter 
        if there is evidence that the local educational agency 
        has failed to comply with the terms of the agreement.
            ``(3) Evidence.--If a local educational agency 
        believes that the Secretary's determination under this 
        subsection is in error for statistical or other 
        substantive reasons, the local educational agency may 
        provide supporting evidence to the Secretary, and the 
        Secretary shall consider that evidence before making a 
        final early termination determination.
    ``(b) Final Review.--If, at the end of the 5-year term of a 
local flexibility demonstration agreement entered into under 
this chapter, the local educational agency has not met the 
requirements described in section 6151(c), the Secretary may 
not renew the agreement under section 6155 and, beginning on 
the date on which such term ends, the local educational agency 
shall be required to comply with each of the program 
requirements in effect on such date for each program included 
in the local flexibility demonstration agreement.

``SEC. 6155. RENEWAL OF LOCAL FLEXIBILITY DEMONSTRATION AGREEMENT.

    ``(a) In General.--Except as provided in section 6154 and 
in accordance with this section, the Secretary shall renew for 
1 additional 5-year term a local flexibility demonstration 
agreement entered into under this chapter if the local 
educational agency has met, by the end of the original term of 
the agreement, the requirements described in section 6151(c).
    ``(b) Notification.--The Secretary may not renew a local 
flexibility demonstration agreement under this chapter unless, 
not less than 6 months before the end of the original term of 
the agreement, the local educational agency seeking the renewal 
notifies the Secretary of its intention to renew.
    ``(c) Effective Date.--A renewal under this section shall 
be effective at the end of the original term of the agreement 
or on the date on which the local educational agency seeking 
renewal provides to the Secretary all data required under the 
agreement, whichever is later.

``SEC. 6156. REPORTS.

    ``(a) Transmittal to Congress.--Not later than 60 days 
after the Secretary receives a report described in section 
6151(b)(10), the Secretary shall make the report available to 
the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor 
and Pensions of the Senate.
    ``(b) Limitation.--A State in which a local educational 
agency that has a local flexibility demonstration agreement is 
located may not require such local educational agency to 
provide any application information with respect to the 
programs included within the scope of that agreement other than 
that information that is required to be included in the report 
described in section 6151(b)(10).

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

``SEC. 6161. ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.

    ``In the case of a State educational agency that has a plan 
approved under subpart 1 of part A of title I after the date of 
enactment of the No Child Left Behind Act of 2001, and has a 
plan approved under subpart 1 of part A of title III of such 
Act after such date of enactment, the Secretary shall annually, 
starting with the beginning of the first school year following 
the first 2 school years for which such plans were implemented, 
review whether the State has--
            ``(1) made adequate yearly progress, as defined in 
        section 1111(b)(2)(B), for each of the groups of 
        students described in section 1111(b)(2)(C)(v); and
            ``(2) met its annual measurable achievement 
        objectives under section 3122(a).

``SEC. 6162. PEER REVIEW.

    ``The Secretary shall use a peer review process to review, 
based on data from the State assessments administered under 
section 1111(b)(3) and on data from the evaluations conducted 
under section 3121, whether the State has failed to make 
adequate yearly progress for 2 consecutive years or whether the 
State has met its annual measurable achievement objectives.

``SEC. 6163. TECHNICAL ASSISTANCE.

    ``(a) Provision of Assistance.--
            ``(1) Adequate yearly progress.--Based on the 
        review described in section 6161(1), the Secretary 
        shall provide technical assistance to a State that has 
        failed to make adequate yearly progress, as defined in 
        section 1111(b)(2), for 2 consecutive years. The 
        Secretary shall provide such assistance not later than 
        the beginning of the first school year that begins 
        after such determination is made.
            ``(2) Annual measurable achievement objectives.--
        Based on the reviews described in section 6161(2), the 
        Secretary may provide technical assistance to a State 
        that has failed to meet its annual measurable 
        achievement objectives under section 3122(a) for 2 
        consecutive years. The Secretary shall provide such 
        assistance not later than the beginning of the first 
        school year that begins after such determination is 
        made.
    ``(b) Characteristics.--The technical assistance described 
in subsection (a) shall--
            ``(1) be valid, reliable and rigorous; and
            ``(2) provide constructive feedback to help the 
        State make adequate yearly progress, as defined in 
        section 1111(b)(2), or meet the annual measurable 
        achievement objectives under section 3122(a).

``SEC. 6164. REPORT TO CONGRESS.

    ``Beginning with the school year that begins in 2005, the 
Secretary shall submit an annual report to the Committee on 
Education and the Workforce of the House of Representatives and 
the Committee on Health, Education, Labor, and Pensions of the 
Senate containing the following:
            ``(1) A list of each State that has not made 
        adequate yearly progress based on the review conducted 
        under section 6161(1).
            ``(2) A list of each State that has not met its 
        annual measurable achievement objectives based on the 
        review conducted under section 6161(2).
            ``(3) The information reported by the State to the 
        Secretary pursuant to section 1119(a).
            ``(4) A description of any technical assistance 
        provided pursuant to section 6163.

                  ``PART B--RURAL EDUCATION INITIATIVE

``SEC. 6201. SHORT TITLE.

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

``SEC. 6202. PURPOSE.

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

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

``SEC. 6211. USE OF APPLICABLE FUNDING.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, an eligible local educational agency 
        may use the applicable funding that the agency is 
        eligible to receive from the State educational agency 
        for a fiscal year to carry out local activities 
        authorized under any of the following provisions:
                    ``(A) Part A of title I.
                    ``(B) Part A or D of title II.
                    ``(C) Title III.
                    ``(D) Part A or B of title IV.
                    ``(E) Part A of title V.
            ``(2) Notification.--An eligible local educational 
        agency shall notify the State educational agency of the 
        local educational agency's intention to use the 
        applicable funding in accordance with paragraph (1), by 
        a date that is established by the State educational 
        agency for the notification.
    ``(b) Eligibility.--
            ``(1) In general.--A local educational agency shall 
        be eligible to use the applicable funding in accordance 
        with subsection (a) if--
                    ``(A)(i)(I) the total number of students in 
                average daily attendance at all of the schools 
                served by the local educational agency is fewer 
                than 600; or
                    ``(II) each county in which a school served 
                by the local educational agency is located has 
                a total population density of fewer than 10 
                persons per square mile; and
                    ``(ii) all of the schools served by the 
                local educational agency are designated with a 
                school locale code of 7 or 8, as determined by 
                the Secretary; or
                    ``(B) the agency meets the criteria 
                established in subparagraph (A)(i) and the 
                Secretary, in accordance with paragraph (2), 
                grants the local educational agency's request 
                to waive the criteria described in subparagraph 
                (A)(ii).
            ``(2) Certification.--The Secretary shall determine 
        whether to waive the criteria described in paragraph 
        (1)(A)(ii) based on a demonstration by the local 
        educational agency, and concurrence by the State 
        educational agency, that the local educational agency 
        is located in an area defined as rural by a 
        governmental agency of the State.
    ``(c) Applicable Funding Defined.--In this section, the 
term `applicable funding' means funds provided under any of the 
following provisions:
            ``(1) Subpart 2 and section 2412(a)(2)(A) of title 
        II.
            ``(2) Section 4114.
            ``(3) Part A of title V.
    ``(d) Disbursement.--Each State educational agency that 
receives applicable funding for a fiscal year shall disburse 
the applicable funding to local educational agencies for 
alternative uses under this section for the fiscal year at the 
same time as the State educational agency disburses the 
applicable funding to local educational agencies that do not 
intend to use the applicable funding for such alternative uses 
for the fiscal year.
    ``(e) Applicable Rules.--Applicable funding under this 
section shall be available to carry out local activities 
authorized under subsection (a).

``SEC. 6212. GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award 
grants to eligible local educational agencies to enable the 
local educational agencies to carry out activities authorized 
under any of the following provisions:
            ``(1) Part A of title I.
            ``(2) Part A or D of title II.
            ``(3) Title III.
            ``(4) Part A or B of title IV.
            ``(5) Part A of title V.
    ``(b) Allocation.--
            ``(1) In general.--Except as provided in paragraph 
        (3), the Secretary shall award a grant under subsection 
        (a) to a local educational agency eligible under 
        section 6211(b) for a fiscal year in an amount equal to 
        the initial amount determined under paragraph (2) for 
        the fiscal year minus the total amount received by the 
        agency under the provisions of law described in section 
        6211(c) for the preceding fiscal year.
            ``(2) Determination of initial amount.--The initial 
        amount referred to in paragraph (1) is equal to $100 
        multiplied by the total number of students in excess of 
        50 students, in average daily attendance at the schools 
        served by the local educational agency, plus $20,000, 
        except that the initial amount may not exceed $60,000.
            ``(3) Ratable adjustment.--
                    ``(A) In general.--If the amount made 
                available to carry out this section for any 
                fiscal year is not sufficient to pay in full 
                the amounts that local educational agencies are 
                eligible to receive under paragraph (1) for 
                such year, the Secretary shall ratably reduce 
                such amounts for such year.
                    ``(B) Additional amounts.--If additional 
                funds become available for making payments 
                under paragraph (1) for such fiscal year, 
                payments that were reduced under subparagraph 
                (A) shall be increased on the same basis as 
                such payments were reduced.
    ``(c) Disbursement.--The Secretary shall disburse the funds 
awarded to a local educational agency under this section for a 
fiscal year not later than July 1 of that fiscal year.
    ``(d) Special Eligibility Rule.--A local educational agency 
that is eligible to receive a grant under this subpart for a 
fiscal year is not eligible to receive funds for such fiscal 
year under subpart 2.

``SEC. 6213. ACCOUNTABILITY.

    ``(a) Academic Achievement Assessment.--Each local 
educational agency that uses or receives funds under this 
subpart for a fiscal year shall administer an assessment that 
is consistent with section 1111(b)(3).
    ``(b) Determination Regarding Continuing Participation.--
Each State educational agency that receives funding under the 
provisions of law described in section 6211(c) shall--
            ``(1) after the third year that a local educational 
        agency in the State participates in a program under 
        this subpart and on the basis of the results of the 
        assessments described in subsection (a), determine 
        whether the local educational agency participating in 
        the program made adequate yearly progress, as described 
        in section 1111(b)(2);
            ``(2) permit only those local educational agencies 
        that participated and made adequate yearly progress, as 
        described in section 1111(b)(2), to continue to 
        participate; and
            ``(3) permit those local educational agencies that 
        participated and failed to make adequate yearly 
        progress, as described in section 1111(b)(2), to 
        continue to participate only if such local educational 
        agencies use applicable funding under this subpart to 
        carry out the requirements of section 1116.

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

``SEC. 6221. PROGRAM AUTHORIZED.

    ``(a) Grants to States.--
            ``(1) In general.--From amounts appropriated under 
        section 6234 for this subpart for a fiscal year that 
        are not reserved under subsection (c), the Secretary 
        shall award grants (from allotments made under 
        paragraph (2)) for the fiscal year to State educational 
        agencies that have applications submitted under section 
        6223 approved to enable the State educational agencies 
        to award grants to eligible local educational agencies 
        for local authorized activities described in section 
        6222(a).
            ``(2) Allotment.--From amounts described in 
        paragraph (1) for a fiscal year, the Secretary shall 
        allot to each State educational agency for that fiscal 
        year an amount that bears the same ratio to those 
        amounts as the number of students in average daily 
        attendance served by eligible local educational 
        agencies in the State for that fiscal year bears to the 
        number of all such students served by eligible local 
        educational agencies in all States for that fiscal 
        year.
            ``(3) Specially qualified agencies.--
                    ``(A) Eligibility and application.--If a 
                State educational agency elects not to 
                participate in the program under this subpart 
                or does not have an application submitted under 
                section 6223 approved, a specially qualified 
                agency in such State desiring a grant under 
                this subpart may submit an application under 
                such section directly to the Secretary to 
                receive an award under this subpart.
                    ``(B) Direct awards.--The Secretary may 
                award, on a competitive basis or by formula, 
                the amount the State educational agency is 
                eligible to receive under paragraph (2) 
                directly to a specially qualified agency in the 
                State that has submitted an application in 
                accordance with subparagraph (A) and obtained 
                approval of the application.
                    ``(C) Specially qualified agency defined.--
                In this subpart, the term `specially qualified 
                agency' means an eligible local educational 
                agency served by a State educational agency 
                that does not participate in a program under 
                this subpart in a fiscal year, that may apply 
                directly to the Secretary for a grant in such 
                year under this subsection.
    ``(b) Local Awards.--
            ``(1) Eligibility.--A local educational agency 
        shall be eligible to receive a grant under this subpart 
        if--
                    ``(A) 20 percent or more of the children 
                ages 5 through 17 years served by the local 
                educational agency are from families with 
                incomes below the poverty line; and
                    ``(B) all of the schools served by the 
                agency are designated with a school locale code 
                of 6, 7, or 8, as determined by the Secretary.
            ``(2) Award basis.--A State educational agency 
        shall award grants to eligible local educational 
        agencies--
                    ``(A) on a competitive basis;
                    ``(B) according to a formula based on the 
                number of students in average daily attendance 
                served by the eligible local educational 
                agencies or schools in the State; or
                    ``(C) according to an alternative formula, 
                if, prior to awarding the grants, the State 
                educational agency demonstrates, to the 
                satisfaction of the Secretary, that the 
                alternative formula enables the State 
                educational agency to allot the grant funds in 
                a manner that serves equal or greater 
                concentrations of children from families with 
                incomes below the poverty line, relative to the 
                concentrations that would be served if the 
                State educational agency used the formula 
                described in subparagraph (B).
    ``(c) Reservations.--From amounts appropriated under 
section 6234 for this subpart for a fiscal year, the Secretary 
shall reserve--
            ``(1) \1/2\ of 1 percent to make awards to 
        elementary schools or secondary schools operated or 
        supported by the Bureau of Indian Affairs, to carry out 
        the activities authorized under this subpart; and
            ``(2) \1/2\ of 1 percent to make awards to the 
        outlying areas in accordance with their respective 
        needs, to carry out the activities authorized under 
        this subpart.

``SEC. 6222. USES OF FUNDS.

    ``(a) Local Awards.--Grant funds awarded to local 
educational agencies under this subpart shall be used for any 
of the following:
            ``(1) Teacher recruitment and retention, including 
        the use of signing bonuses and other financial 
        incentives.
            ``(2) Teacher professional development, including 
        programs that train teachers to utilize technology to 
        improve teaching and to train special needs teachers.
            ``(3) Educational technology, including software 
        and hardware, as described in part D of title II.
            ``(4) Parental involvement activities.
            ``(5) Activities authorized under the Safe and 
        Drug-Free Schools program under part A of title IV.
            ``(6) Activities authorized under part A of title 
        I.
            ``(7) Activities authorized under title III.
    ``(b) Administrative Costs.--A State educational agency 
receiving a grant under this subpart may not use more than 5 
percent of the amount of the grant for State administrative 
costs and to provide technical assistance to eligible local 
educational agencies.

``SEC. 6223. APPLICATIONS.

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

``SEC. 6224. ACCOUNTABILITY.

    ``(a) State Report.--Each State educational agency that 
receives a grant under this subpart shall prepare and submit an 
annual report to the Secretary. The report shall describe--
            ``(1) the method the State educational agency used 
        to award grants to eligible local educational agencies, 
        and to provide assistance to schools, under this 
        subpart;
            ``(2) how local educational agencies and schools 
        used funds provided under this subpart; and
            ``(3) the degree to which progress has been made 
        toward meeting the goals and objectives described in 
        the application submitted under section 6223.
    ``(b) Specially Qualified Agency Report.--Each specially 
qualified agency that receives a grant under this subpart shall 
provide an annual report to the Secretary. Such report shall 
describe--
            ``(1) how such agency uses funds provided under 
        this subpart; and
            ``(2) the degree to which progress has been made 
        toward meeting the goals and objectives described in 
        the application submitted under section 6223.
    ``(c) Report to Congress.--The Secretary shall prepare and 
submit to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate a biennial report. 
The report shall describe--
            ``(1) the methods the State educational agencies 
        used to award grants to eligible local educational 
        agencies, and to provide assistance to schools, under 
        this subpart;
            ``(2) how local educational agencies and schools 
        used funds provided under this subpart; and
            ``(3) the degree to which progress has been made 
        toward meeting the goals and objectives described in 
        the applications submitted under section 6223.
    ``(d) Academic Achievement Assessment.--Each local 
educational agency or specially qualified agency that receives 
a grant under this subpart for a fiscal year shall administer 
an assessment that is consistent with section 1111(b)(3).
    ``(e) Determination Regarding Continuing Participation.--
Each State educational agency or specially qualified agency 
that receives a grant under this subpart shall--
            ``(1) after the third year that a local educational 
        agency or specially qualified agency in the State 
        receives funds under this subpart, and on the basis of 
        the results of the assessments described in subsection 
        (d)--
                    ``(A) in the case of a local educational 
                agency, determine whether the local educational 
                agency made adequate yearly progress, as 
                described in section 1111(b)(2); and
                    ``(B) in the case of a specially qualified 
                agency, submit to the Secretary information 
                that would allow the Secretary to determine 
                whether the specially qualified agency has made 
                adequate yearly progress, as described in 
                section 1111(b)(2);
            ``(2) permit only those local educational agencies 
        or specially qualified agencies that made adequate 
        yearly progress, as described in section 1111(b)(2), to 
        continue to receive grants under this subpart; and
            ``(3) permit those local educational agencies or 
        specially qualified agencies that failed to make 
        adequate yearly progress, as described in section 
        1111(b)(2), to continue to receive such grants only if 
        the State educational agency disbursed such grants to 
        the local educational agencies or specially qualified 
        agencies to carry out the requirements of section 1116.

                    ``Subpart 3--General Provisions

``SEC. 6231. ANNUAL AVERAGE DAILY ATTENDANCE DETERMINATION.

    ``(a) Census Determination.--Each local educational agency 
desiring a grant under section 6212 and each local educational 
agency or specially qualified agency desiring a grant under 
subpart 2 shall--
            ``(1) not later than December 1 of each year, 
        conduct a census to determine the number of students in 
        average daily attendance in kindergarten through grade 
        12 at the schools served by the agency; and
            ``(2) not later than March 1 of each year, submit 
        the number described in paragraph (1) to the Secretary 
        (and to the State educational agency, in the case of a 
        local educational agency seeking a grant under subpart 
        (2)).
    ``(b) Penalty.--If the Secretary determines that a local 
educational agency or specially qualified agency has knowingly 
submitted false information under subsection (a) for the 
purpose of gaining additional funds under section 6212 or 
subpart 2, then the agency shall be fined an amount equal to 
twice the difference between the amount the agency received 
under this section and the correct amount the agency would have 
received under section 6212 or subpart 2 if the agency had 
submitted accurate information under subsection (a).

``SEC. 6232. SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available under subpart 1 or subpart 2 shall 
be used to supplement, and not supplant, any other Federal, 
State, or local education funds.

``SEC. 6233. RULE OF CONSTRUCTION.

    ``Nothing in this part shall be construed to prohibit a 
local educational agency that enters into cooperative 
arrangements with other local educational agencies for the 
provision of special, compensatory, or other education 
services, pursuant to State law or a written agreement, from 
entering into similar arrangements for the use, or the 
coordination of the use, of the funds made available under this 
part.

``SEC. 6234. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
part $300,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years, to be 
distributed equally between subparts 1 and 2.

                      ``PART C--GENERAL PROVISIONS

``SEC. 6301. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR 
                    CONTROL.

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

``SEC. 6302. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

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

SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS ACT OF 1994.

    (a) National Assessment of Educational Progress.--Section 
411 of the National Education Statistics Act of 1994 (20 U.S.C. 
9010) is amended to read as follows:

``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

    ``(a) Establishment.--The Commissioner shall, with the 
advice of the National Assessment Governing Board established 
under section 412, and with the technical assistance of the 
Advisory Council established under section 407, carry out, 
through grants, contracts, or cooperative agreements with one 
or more qualified organizations, or consortia thereof, a 
National Assessment of Educational Progress, which collectively 
refers to a national assessment, State assessments, and a long-
term trend assessment in reading and mathematics.
    ``(b) Purpose; State Assessments.--
            ``(1) Purpose.--The purpose of this section is to 
        provide, in a timely manner, a fair and accurate 
        measurement of student academic achievement and 
        reporting trends in such achievement in reading, 
        mathematics, and other subject matter as specified in 
        this section.
            ``(2) Measurement and reporting.--The Commissioner, 
        in carrying out the measurement and reporting described 
        in paragraph (1), shall--
                    ``(A) use a random sampling process which 
                is consistent with relevant, widely accepted 
                professional assessment standards and that 
                produces data that are representative on a 
                national and regional basis;
                    ``(B) conduct a national assessment and 
                collect and report assessment data, including 
                achievement data trends, in a valid and 
                reliable manner on student academic achievement 
                in public and private elementary schools and 
                secondary schools at least once every two 
                years, in grades 4 and 8 in reading and 
                mathematics;
                    ``(C) conduct a national assessment and 
                collect and report assessment data, including 
                achievement data trends, in a valid and 
                reliable manner on student academic achievement 
                in public and private schools in reading and 
                mathematics in grade 12 in regularly scheduled 
                intervals, but at least as often as such 
                assessments were conducted prior to the date of 
                enactment of the No Child Left Behind Act of 
                2001;
                    ``(D) to the extent time and resources 
                allow, and after the requirements described in 
                subparagraph (B) are implemented and the 
                requirements described in subparagraph (C) are 
                met, conduct additional national assessments 
                and collect and report assessment data, 
                including achievement data trends, in a valid 
                and reliable manner on student academic 
                achievement in grades 4, 8, and 12 in public 
                and private elementary schools and secondary 
                schools in regularly scheduled intervals in 
                additional subject matter, including writing, 
                science, history, geography, civics, economics, 
                foreign languages, and arts, and the trend 
                assessment described in subparagraph (F);
                    ``(E) conduct the reading and mathematics 
                assessments described in subparagraph (B) in 
                the same year, and every other year thereafter, 
                to provide for one year in which no such 
                assessments are conducted in between each 
                administration of such assessments;
                    ``(F) continue to conduct the trend 
                assessment of academic achievement at ages 9, 
                13, and 17 for the purpose of maintaining data 
                on long-term trends in reading and mathematics;
                    ``(G) include information on special 
                groups, including, whenever feasible, 
                information collected, cross tabulated, 
                compared, and reported by race, ethnicity, 
                socioeconomic status, gender, disability and 
                limited English proficiency; and
                    ``(H) ensure that achievement data are made 
                available on a timely basis following official 
                reporting, in a manner that facilitates further 
                analysis and that includes trend lines.
            ``(3) State assessments.--
                    ``(A) In general.--The Commissioner--
                            ``(i) shall conduct biennial State 
                        academic assessments of student 
                        achievement in reading and mathematics 
                        in grades 4 and 8 as described in 
                        paragraphs (1)(B) and (1)(E);
                            ``(ii) may conduct the State 
                        academic assessments of student 
                        achievement in reading and mathematics 
                        in grade 12 as described in paragraph 
                        (1)(C);
                            ``(iii) may conduct State academic 
                        assessments of student achievement in 
                        grades 4, 8, and 12 as described in 
                        paragraph (1)(D); and
                            ``(iv) shall conduct each such 
                        State assessment, in each subject area 
                        and at each grade level, on a 
                        developmental basis until the 
                        Commissioner determines, as the result 
                        of an evaluation required by subsection 
                        (f), that such assessment produces high 
                        quality data that are valid and 
                        reliable.
                    (B) Agreement.--
                            (i) In general.--States 
                        participating in State assessments 
                        shall enter into an agreement with the 
                        Secretary pursuant to subsection 
                        (d)(3).
                            ``(ii) Content.--Such agreement 
                        shall contain information sufficient to 
                        give States full information about the 
                        process for decision-making (which 
                        shall include the consensus process 
                        used), on objectives to be tested, and 
                        the standards for random sampling, test 
                        administration, test security, data 
                        collection, validation, and reporting.
                    ``(C) Review and release.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), a 
                        participating State shall review and 
                        give permission for the release of 
                        results from any test of its students 
                        administered as a part of a State 
                        assessment prior to the release of such 
                        data. Refusal by a State to release its 
                        data shall not restrict the release of 
                        data from other States that have 
                        approved the release of such data.
                            ``(ii) Special rule.--A State 
                        participating in the biennial academic 
                        assessments of student achievement in 
                        reading and mathematics in grades 4 and 
                        8 shall be deemed to have given its 
                        permission to release its data if the 
                        State has an approved plan under 
                        section 1111 of the Elementary and 
                        Secondary Education Act of 1965.
            ``(4) Prohibited activities.--
                    ``(A) In general.--The use of assessment 
                items and data on any assessment authorized 
                under this section by an agent or agents of the 
                Federal Government to rank, compare, or 
                otherwise evaluate individual students or 
                teachers, or to provide rewards or sanctions 
                for individual students, teachers, schools or 
                local educational agencies is prohibited.
                    ``(B) Special rule.--Any assessment 
                authorized under this section shall not be used 
                by an agent or agents of the Federal Government 
                to establish, require, or influence the 
                standards, assessments, curriculum, including 
                lesson plans, textbooks, or classroom 
                materials, or instructional practices of States 
                or local educational agencies.
                    ``(C) Applicability to student educational 
                decisions.--Nothing in this section shall be 
                construed to prescribe the use of any 
                assessment authorized under this section for 
                student promotion or graduation purposes.
                    ``(D) Applicability to home schools.--
                Nothing in this section shall be construed to 
                affect home schools, whether or not a home 
                school is treated as a home school or a private 
                school under State law, nor shall any home 
                schooled student be required to participate in 
                any assessment referenced or authorized under 
                this section.
            ``(5) Requirement.--In carrying out any assessment 
        authorized under this section, the Commissioner, in a 
        manner consistent with subsection (c)(2), shall--
                    ``(A) use widely accepted professional 
                testing standards, objectively measure academic 
                achievement, knowledge, and skills, and ensure 
                that any academic assessment authorized under 
                this section be tests that do not evaluate or 
                assess personal or family beliefs and attitudes 
                or publicly disclose personally identifiable 
                information;
                    ``(B) only collect information that is 
                directly related to the appraisal of academic 
                achievement, and to the fair and accurate 
                presentation of such information; and
                    ``(C) collect information on race, 
                ethnicity, socioeconomic status, disability, 
                limited English proficiency, and gender.
            (6) Technical assistance.--In carrying out any 
        assessment authorized under this section, the 
        Commissioner may provide technical assistance to 
        States, localities, and other parties.
    ``(c) Access.--
            ``(1) Public access.--
                    ``(A) In general.--Except as provided in 
                paragraph (3), parents and members of the 
                public shall have access to all assessment 
                data, questions, and complete and current 
                assessment instruments of any assessment 
                authorized under this section. The local 
                educational agency shall make reasonable 
                efforts to inform parents and members of the 
                public about the access required under this 
                paragraph.
                    ``(B) Timeline.--The access described in 
                this paragraph shall be provided within 45 days 
                of the date the request was made, in writing, 
                and be made available in a secure setting that 
                is convenient to both parties.
                    ``(C) Prohibition.--To protect the 
                integrity of the assessment, no copy of the 
                assessment items or assessment instruments 
                shall be duplicated or taken from the secure 
                setting.
            ``(2) Complaints.--
                    ``(A) In general.--Parents and members of 
                the public may submit written complaints to the 
                National Assessment Governing Board.
                    ``(B) Forwarding of complaints.--The 
                National Assessment Governing Board shall 
                forward such complaints to the Commissioner, 
                the Secretary of Education, and the State and 
                local educational agency from within which the 
                complaint originated within 30 days of receipt 
                of such complaint.
                    ``(C) Review.--The National Assessment 
                Governing Board, in consultation with the 
                Commissioner, shall review such complaint and 
                determine whether revisions are necessary and 
                appropriate. As determined by such review, the 
                Board shall revise, as necessary and 
                appropriate, the procedures or assessment items 
                that have generated the complaint and respond 
                to the individual submitting the complaint, 
                with a copy of such response provided to the 
                Secretary, describing any action taken, not 
                later than 30 days after so acting.
                    ``(D) Report.--The Secretary shall submit a 
                summary report of all complaints received 
                pursuant to subparagraph (A) and responses by 
                the National Assessment Governing Board 
                pursuant to subparagraph (B) to the Chairman of 
                the House Committee on Education and the 
                Workforce, and the Chairman of the Senate 
                Committee on Health, Education, Labor, and 
                Pensions.
                    ``(E) Cognitive questions.--
                            ``(i) In general.--The Commissioner 
                        may decline to make available through 
                        public means, such as posting on the 
                        Internet, distribution to the media, 
                        distribution through public agencies, 
                        or in response to a request under 
                        section 552 of title 5, United States 
                        Code, for a period, not to exceed 10 
                        years after initial use, cognitive 
                        questions that the Commissioner intends 
                        to reuse in the future.
                            ``(ii) Extension.--Notwithstanding 
                        clause (i), the Commissioner may 
                        decline to make cognitive questions 
                        available as described in clause (i) 
                        for a period longer than 10 years if 
                        the Commissioner determines such 
                        additional period is necessary to 
                        protect the security and integrity of 
                        long-term trend data.
            ``(3) Personally identifiable information.--
                    ``(A) In general.--The Commissioner shall 
                ensure that all personally identifiable 
                information about students, their academic 
                achievement, and their families, and that 
                information with respect to individual schools, 
                remains confidential, in accordance with 
                section 552a of title 5, United States Code.
                    ``(B) Prohibition.--The National Board, the 
                Commissioner, and any contractor or 
                subcontractor shall not maintain any system of 
                records containing a student's name, birth 
                information, Social Security number, or 
                parents' name or names, or any other personally 
                identifiable information.
            ``(4) Penalties.--Any unauthorized person who 
        knowingly discloses, publishes, or uses assessment 
        questions, or complete and current assessment 
        instruments of any assessment authorized under this 
        section may be fined as specified in section 3571 of 
        title 18, United States Code or charged with a class E 
        felony.
    ``(d) Participation.--
            ``(1) Voluntary participation.--Participation in 
        any assessment authorized under this section shall be 
        voluntary for students, schools, and local educational 
        agencies.
            ``(2) Student participation.--Parents of children 
        selected to participate in any assessment authorized 
        under this section shall be informed before the 
        administration of any authorized assessment, that their 
        child may be excused from participation for any reason, 
        is not required to finish any authorized assessment, 
        and is not required to answer any test question.
            ``(3) State participation.--
                    ``(A) Voluntary.--Participation in 
                assessments authorized under this section, 
                other than reading and mathematics in grades 4 
                and 8, shall be voluntary.
                    ``(B) Agreement.--For reading and 
                mathematics assessments in grades 4 and 8, the 
                Secretary shall enter into an agreement with 
                any State carrying out an assessment for the 
                State under this section. Each such agreement 
                shall contain provisions designed to ensure 
                that the State will participate in the 
                assessment.
            ``(4) Review.--Representatives of State educational 
        agencies and local educational agencies or the chief 
        State school officer shall have the right to review any 
        assessment item or procedure of any authorized 
        assessment upon request in a manner consistent with 
        subsection (c), except the review described in 
        subparagraph (2)(C) of subsection (c) shall take place 
        in consultation with the representatives described in 
        this paragraph.
    ``(e) Student Achievement Levels.--
            ``(1) Achievement levels.--The National Assessment 
        Governing Board shall develop appropriate student 
        achievement levels for each grade or age in each 
        subject area to be tested under assessments authorized 
        under this section, except the trend assessment 
        described in subsection (b)(2)(F).
            ``(2) Determination of levels.--
                    ``(A) In general.--Such levels shall--
                            ``(i) be determined by--
                                    ``(I) identifying the 
                                knowledge that can be measured 
                                and verified objectively using 
                                widely accepted professional 
                                assessment standards; and
                                    ``(II) developing 
                                achievement levels that are 
                                consistent with relevant widely 
                                accepted professional 
                                assessment standards and based 
                                on the appropriate level of 
                                subject matter knowledge for 
                                grade levels to be assessed, or 
                                the age of the students, as the 
                                case may be.
                    ``(B) National consensus approach.--After 
                the determinations described in subparagraph 
                (A), devising a national consensus approach.
                    ``(C) Trial basis.--The achievement levels 
                shall be used on a trial basis until the 
                Commissioner determines, as a result of an 
                evaluation under subsection (f), that such 
                levels are reasonable, valid, and informative 
                to the public.
                    ``(D) Status.--The Commissioner and the 
                Board shall ensure that reports using such 
                levels on a trial basis do so in a manner that 
                makes clear the status of such levels.
                    (E) Updates.--Such levels shall be updated 
                as appropriate by the National Assessment 
                Governing Board in consultation with the 
                Commissioner.
            ``(3) Reporting.--After determining that such 
        levels are reasonable, valid, and informative to the 
        public, as the result of an evaluation under subsection 
        (f), the Commissioner shall use such levels or other 
        methods or indicators for reporting results of the 
        National Assessment and State assessments.
            ``(4) Review.--The National Assessment Governing 
        Board shall provide for a review of any trial student 
        achievement levels under development by representatives 
        of State educational agencies or the chief State school 
        officer in a manner consistent with subsection (c), 
        except the review described in subparagraph (2)(C) 
        shall take place in consultation with the 
        representatives described in this paragraph.
    ``(f) Review of National and State Assessments.--
            ``(1) Review.--
                    ``(A) In general.--The Secretary shall 
                provide for continuing review of any assessment 
                authorized under this section, and student 
                achievement levels, by 1 or more professional 
                assessment evaluation organizations.
                    ``(B) Issues addressed.--Such continuing 
                review shall address--
                            ``(i) whether any authorized 
                        assessment is properly administered, 
                        produces high quality data that are 
                        valid and reliable, is consistent with 
                        relevant widely accepted professional 
                        assessment standards, and produces data 
                        on student achievement that are not 
                        otherwise available to the State (other 
                        than data comparing participating 
                        States to each other and the Nation);
                            ``(ii) whether student achievement 
                        levels are reasonable, valid, reliable, 
                        and informative to the public;-
                            ``(iii) whether any authorized 
                        assessment is being administered as a 
                        random sample and is reporting the 
                        trends in academic achievement in a 
                        valid and reliable manner in the 
                        subject areas being assessed;
                            ``(iv) whether any of the test 
                        questions are biased, as described in 
                        section 412(e)(4); and
                            ``(v) whether the appropriate 
                        authorized assessments are measuring, 
                        consistent with this section, reading 
                        ability and mathematical knowledge.
            ``(2) Report.--The Secretary shall report to the 
        Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Health, 
        Education, Labor, and Pensions of the Senate, the 
        President, and the Nation on the findings and 
        recommendations of such reviews.
            ``(3) Use of findings and recommendations.--The 
        Commissioner and the National Assessment Governing 
        Board shall consider the findings and recommendations 
        of such reviews in designing the competition to select 
        the organization, or organizations, through which the 
        Commissioner carries out the National Assessment.
    ``(g) Coverage Agreements.--
            ``(1) Department of defense schools.--The Secretary 
        and the Secretary of Defense may enter into an 
        agreement, including such terms as are mutually 
        satisfactory, to include in the National Assessment 
        elementary schools and secondary schools operated by 
        the Department of Defense.
            ``(2) Bureau of indian affairs schools.--The 
        Secretary and the Secretary of the Interior may enter 
        into an agreement, including such terms as are mutually 
        satisfactory, to include in the National Assessment 
        schools for Indian children operated or supported by 
        the Bureau of Indian Affairs.''.
    (b) National Assessment Governing Board.--Section 412 of 
the National Education Statistics Act of 1994 (20 U.S.C. 9011) 
is amended to read as follows:

``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

    ``(a) Establishment.--There is established the National 
Assessment Governing Board (hereafter in this title referred to 
as the ``Board''), which shall formulate policy guidelines for 
the National Assessment.
    ``(b) Membership.--
            ``(1) Appointment and composition.--The Board shall 
        be appointed by the Secretary and be composed as 
        follows:
                    ``(A) Two Governors, or former Governors, 
                who shall not be members of the same political 
                party.
                    ``(B) Two State legislators, who shall not 
                be members of the same political party.
                    ``(C) Two chief State school officers.
                    ``(D) One superintendent of a local 
                educational agency.
                    ``(E) One member of a State board of 
                education.
                    ``(F) One member of a local board of 
                education.
                    ``(G) Three classroom teachers representing 
                the grade levels at which the National 
                Assessment is conducted.
                    ``(H) One representative of business or 
                industry.
                    ``(I) Two curriculum specialists.
                    ``(J) Three testing and measurement 
                experts, who shall have training and experience 
                in the field of testing and measurement.
                    ``(K) One nonpublic school administrator or 
                policymaker.
                    ``(L) Two school principals, of whom one 
                shall be an elementary school principal and one 
                shall be a secondary school principal.
                    ``(M) Two parents who are not employed by a 
                local, State or Federal educational agency.
                    ``(N) Two additional members who are 
                representatives of the general public, and who 
                may be parents, but who are not employed by a 
                local, State, or Federal educational agency.
            ``(2) Assistant secretary for educational 
        research.--The Assistant Secretary for Educational 
        Research and Improvement shall serve as an ex officio, 
        nonvoting member of the Board.
            ``(3) Balance and diversity.--The Secretary and the 
        Board shall ensure at all times that the membership of 
        the Board reflects regional, racial, gender, and 
        cultural balance and diversity and that the Board 
        exercises its independent judgment, free from 
        inappropriate influences and special interests.
    ``(c) Terms.--
            ``(1) In general.--Terms of service of members of 
        the Board shall be staggered and may not exceed a 
        period of 4 years, as determined by the Secretary.
            ``(2) Service limitation.--Members of the Board may 
        serve not more than two terms.
            ``(3) Change of status.--A member of the Board who 
        changes status under subsection (b) during the term of 
        the appointment of the member may continue to serve as 
        a member until the expiration of such term.
            ``(4) Conforming provision.--Members of the Board 
        previously granted 3 year terms, whose terms are in 
        effect on the date of enactment of the Department of 
        Education Appropriations Act, 2001, shall have their 
        terms extended by one year.
    ``(d) Vacancies.--
            ``(1) In general.--
                    ``(A) Organizations.--The Secretary shall 
                appoint new members to fill vacancies on the 
                Board from among individuals who are nominated 
                by organizations representing the type of 
                individuals described in subsection (b)(1) with 
                respect to which the vacancy exists.
                    ``(B) Nominations.--Each organization 
                submitting nominations to the Secretary with 
                respect to a particular vacancy shall nominate 
                for such vacancy six individuals who are 
                qualified by experience or training to fill the 
                particular Board vacancy.
                    ``(C) Maintenance of board.--The 
                Secretary's appointments shall maintain the 
                composition, diversity, and balance of the 
                Board required under subsection (b).
            ``(2) Additional nominations.--The Secretary may 
        request that each organization described in paragraph 
        (1)(A) submit additional nominations if the Secretary 
        determines that none of the individuals nominated by 
        such organization have appropriate knowledge or 
        expertise.
    ``(e) Duties.--
            ``(1) In general.--In carrying out its functions 
        under this section the Board shall--
                    ``(A) select the subject areas to be 
                assessed (consistent with section 411(b));
                    ``(B) develop appropriate student 
                achievement levels as provided in section 
                411(e);
                    ``(C) develop assessment objectives 
                consistent with the requirements of this 
                section and test specifications that produce an 
                assessment that is valid and reliable, and are 
                based on relevant widely accepted professional 
                standards;
                    ``(D) develop a process for review of the 
                assessment which includes the active 
                participation of teachers, curriculum 
                specialists, local school administrators, 
                parents, and concerned members of the public;
                    ``(E) design the methodology of the 
                assessment to ensure that assessment items are 
                valid and reliable, in consultation with 
                appropriate technical experts in measurement 
                and assessment, content and subject matter, 
                sampling, and other technical experts who 
                engage in large scale surveys, including the 
                Advisory Council established under section 407;
                    ``(F) consistent with section 411, measure 
                student academic achievement in grades 4, 8, 
                and 12 in the authorized academic subjects;
                    ``(G) develop guidelines for reporting and 
                disseminating results;
                    ``(H) develop standards and procedures for 
                regional and national comparisons; and
                    ``(I) take appropriate actions needed to 
                improve the form, content, use, and reporting 
                of results of any assessment authorized by 
                section 411 consistent with the provisions of 
                this section and section 411.
            ``(2) Delegation.--The Board may delegate any of 
        the Board's procedural and administrative functions to 
        its staff.
            ``(3) All cognitive and noncognitive assessment 
        items.--The Board shall have final authority on the 
        appropriateness of all assessment items.
            ``(4) Prohibition against bias.--The Board shall 
        take steps to ensure that all items selected for use in 
        the National Assessment are free from racial, cultural, 
        gender, or regional bias and are secular, neutral, and 
        non-ideological.
            ``(5) Technical.--In carrying out the duties 
        required by paragraph (1), the Board may seek technical 
        advice, as appropriate, from the Commissioner and the 
        Advisory Council on Education Statistics and other 
        experts.
            ``(6) Report.--Not later than 90 days after an 
        evaluation of the student achievement levels under 
        section 411(e), the Board shall make a report to the 
        Secretary, the Committee on Education and the Workforce 
        of the House of Representatives, and the Committee on 
        Health, Education, Labor, and Pensions of the Senate 
        describing the steps the Board is taking to respond to 
        each of the recommendations contained in such 
        evaluation.
    ``(f) Personnel.--
            ``(1) In general.--In the exercise of its 
        responsibilities, the Board shall be independent of the 
        Secretary and the other offices and officers of the 
        Department.
            ``(2) Staff.--
                    ``(A) In general.--The Secretary may 
                appoint, at the request of the Board, such 
                staff as will enable the Board to carry out its 
                responsibilities.
                    ``(B) Technical employees.--Such 
                appointments may include, for terms not to 
                exceed three years and without regard to the 
                provisions of title 5, United States Code, 
                governing appointments in the competitive 
                service, not more than six technical employees 
                who may be paid without regard to the 
                provisions of chapter 51 and subchapter III of 
                chapter 53 of such title relating to 
                classification and General Schedule pay rates.
    ``(g) Coordination.--The Commissioner and the Board shall 
meet periodically--
            ``(1) to ensure coordination of their duties and 
        activities relating to the National Assessment; and
            ``(2) for the Commissioner to report to the Board 
        on the Department's actions to implement the decisions 
        of the Board.
    ``(h) Administration.--The Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply with respect to the Board, 
other than sections 10, 11, and 12 of such Act.''.

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

SEC. 701. INDIANS.

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

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

                       ``PART A--INDIAN EDUCATION

``SEC. 7101. STATEMENT OF POLICY.

    ``It is the policy of the United States to fulfill the 
Federal Government's unique and continuing trust relationship 
with and responsibility to the Indian people for the education 
of Indian children. The Federal Government will continue to 
work with local educational agencies, Indian tribes and 
organizations, postsecondary institutions, and other entities 
toward the goal of ensuring that programs that serve Indian 
children are of the highest quality and provide for not only 
the basic elementary and secondary educational needs, but also 
the unique educational and culturally related academic needs of 
these children.

``SEC. 7102. PURPOSE.

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

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

``SEC. 7111. PURPOSE.

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

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

    ``(a) In General.--The Secretary may make grants, from 
allocations made under section 7113, to local educational 
agencies and Indian tribes, in accordance with this section and 
section 7113.
    ``(b) Local Educational Agencies.--
            ``(1) Enrollment requirements.--A local educational 
        agency shall be eligible for a grant under this subpart 
        for any fiscal year if the number of Indian children 
        eligible under section 7117 who were enrolled in the 
        schools of the agency, and to whom the agency provided 
        free public education, during the preceding fiscal 
        year--
                    ``(A) was at least 10; or
                    ``(B) constituted not less than 25 percent 
                of the total number of individuals enrolled in 
                the schools of such agency.
            ``(2) Exclusion.--The requirement of paragraph (1) 
        shall not apply in Alaska, California, or Oklahoma, or 
        with respect to any local educational agency located 
        on, or in proximity to, a reservation.
    ``(c) Indian Tribes.--
            ``(1) In general.--If a local educational agency 
        that is otherwise eligible for a grant under this 
        subpart does not establish a committee under section 
        7114(c)(4) for such grant, an Indian tribe that 
        represents not less than \1/2\ of the eligible Indian 
        children who are served by such local educational 
        agency may apply for such grant.
            ``(2) Special rule.--The Secretary shall treat each 
        Indian tribe applying for a grant pursuant to paragraph 
        (1) as if such Indian tribe were a local educational 
        agency for purposes of this subpart, except that any 
        such tribe is not subject to section 7114(c)(4), 
        section 7118(c), or section 7119.

``SEC. 7113. AMOUNT OF GRANTS.

    ``(a) Amount of Grant Awards.--
            ``(1) In general.--Except as provided in subsection 
        (b) and paragraph (2), the Secretary shall allocate to 
        each local educational agency that has an approved 
        application under this subpart an amount equal to the 
        product of--
                    ``(A) the number of Indian children who are 
                eligible under section 7117 and served by such 
                agency; and
                    ``(B) the greater of--
                            ``(i) the average per pupil 
                        expenditure of the State in which such 
                        agency is located; or
                            ``(ii) 80 percent of the average 
                        per pupil expenditure of all the 
                        States.
            ``(2) Reduction.--The Secretary shall reduce the 
        amount of each allocation otherwise determined under 
        this section in accordance with subsection (e).
    ``(b) Minimum Grant.--
            ``(1) In general.--Notwithstanding subsection (e), 
        an entity that is eligible for a grant under section 
        7112, and a school that is operated or supported by the 
        Bureau of Indian Affairs that is eligible for a grant 
        under subsection (d), that submits an application that 
        is approved by the Secretary, shall, subject to 
        appropriations, receive a grant under this subpart in 
        an amount that is not less than $3,000.
            ``(2) Consortia.--Local educational agencies may 
        form a consortium for the purpose of obtaining grants 
        under this subpart.
            ``(3) Increase.--The Secretary may increase the 
        minimum grant under paragraph (1) to not more than 
        $4,000 for all grantees if the Secretary determines 
        such increase is necessary to ensure the quality of the 
        programs provided.
    ``(c) Definition.--For the purpose of this section, the 
term `average per pupil expenditure', used with respect to a 
State, means an amount equal to--
            ``(1) the sum of the aggregate current expenditures 
        of all the local educational agencies in the State, 
        plus any direct current expenditures by the State for 
        the operation of such agencies, without regard to the 
        sources of funds from which such local or State 
        expenditures were made, during the second fiscal year 
        preceding the fiscal year for which the computation is 
        made; divided by
            ``(2) the aggregate number of children who were 
        included in average daily attendance for whom such 
        agencies provided free public education during such 
        preceding fiscal year.
    ``(d) Schools Operated or Supported by the Bureau of Indian 
Affairs.--
            ``(1) In general.--Subject to subsection (e), in 
        addition to the grants awarded under subsection (a), 
        the Secretary shall allocate to the Secretary of the 
        Interior an amount equal to the product of--
                    ``(A) the total number of Indian children 
                enrolled in schools that are operated by--
                            ``(i) the Bureau of Indian Affairs; 
                        or
                            ``(ii) an Indian tribe, or an 
                        organization controlled or sanctioned 
                        by an Indian tribal government, for the 
                        children of that tribe under a contract 
                        with, or grant from, the Department of 
                        the Interior under the Indian Self-
                        Determination Act or the Tribally 
                        Controlled Schools Act of 1988; and
                    ``(B) the greater of--
                            ``(i) the average per pupil 
                        expenditure of the State in which the 
                        school is located; or
                            ``(ii) 80 percent of the average 
                        per pupil expenditure of all the 
                        States.
            ``(2) Special rule.--Any school described in 
        paragraph (1)(A) that wishes to receive an allocation 
        under this subpart shall submit an application in 
        accordance with section 7114, and shall otherwise be 
        treated as a local educational agency for the purpose 
        of this subpart, except that such school shall not be 
        subject to section 7114(c)(4), section 7118(c), or 
        section 7119.
    ``(e) Ratable Reductions.--If the sums appropriated for any 
fiscal year under section 7152(a) are insufficient to pay in 
full the amounts determined for local educational agencies 
under subsection (a)(1) and for the Secretary of the Interior 
under subsection (d), each of those amounts shall be ratably 
reduced.

``SEC. 7114. APPLICATIONS.

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

``SEC. 7115. AUTHORIZED SERVICES AND ACTIVITIES.

    ``(a) General Requirements.--Each local educational agency 
that receives a grant under this subpart shall use the grant 
funds, in a manner consistent with the purpose specified in 
section 7111, for services and activities that--
            (1) are designed to carry out the comprehensive 
        program of the local educational agency for Indian 
        students, and described in the application of the local 
        educational agency submitted to the Secretary under 
        section 7114(a);
            ``(2) are designed with special regard for the 
        language and cultural needs of the Indian students; and
            ``(3) supplement and enrich the regular school 
        program of such agency.
    ``(b) Particular Activities.--The services and activities 
referred to in subsection (a) may include--
            ``(1) culturally related activities that support 
        the program described in the application submitted by 
        the local educational agency;
            ``(2) early childhood and family programs that 
        emphasize school readiness;
            ``(3) enrichment programs that focus on problem 
        solving and cognitive skills development and directly 
        support the attainment of challenging State academic 
        content and student academic achievement standards;
            ``(4) integrated educational services in 
        combination with other programs that meet the needs of 
        Indian children and their families;
            ``(5) career preparation activities to enable 
        Indian students to participate in programs such as the 
        programs supported by the Carl D. Perkins Vocational 
        and Technical Education Act of 1998, including programs 
        for tech-prep education, mentoring, and apprenticeship;
            ``(6) activities to educate individuals concerning 
        substance abuse and to prevent substance abuse;
            ``(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to achieve 
        the purpose described in section 7111;
            ``(8) activities that promote the incorporation of 
        culturally responsive teaching and learning strategies 
        into the educational program of the local educational 
        agency;
            ``(9) activities that incorporate American Indian 
        and Alaska Native specific curriculum content, 
        consistent with State standards, into the curriculum 
        used by the local educational agency;
            ``(10) family literacy services; and
            ``(11) activities that recognize and support the 
        unique cultural and educational needs of Indian 
        children, and incorporate appropriately qualified 
        tribal elders and seniors.
    ``(c) Schoolwide Programs.--Notwithstanding any other 
provision of law, a local educational agency may use funds made 
available to such agency under this subpart to support a 
schoolwide program under section 1114 if--
            ``(1) the committee established pursuant to section 
        7114(c)(4) approves the use of the funds for the 
        schoolwide program; and
            ``(2) the schoolwide program is consistent with the 
        purpose described in section 7111.
    ``(d) Limitation on Administrative Costs.--Not more than 5 
percent of the funds provided to a grantee under this subpart 
for any fiscal year may be used for administrative purposes.

``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

    ``(a) Plan.--An entity receiving funds under this subpart 
may submit a plan to the Secretary for the integration of 
education and related services provided to Indian students.
    ``(b) Consolidation of Programs.--Upon the receipt of an 
acceptable plan under subsection (a), the Secretary, in 
cooperation with each Federal agency providing grants for the 
provision of education and related services to the entity, 
shall authorize the entity to consolidate, in accordance with 
such plan, the federally funded education and related services 
programs of the entity and the Federal programs, or portions of 
the programs, serving Indian students in a manner that 
integrates the program services involved into a single, 
coordinated, comprehensive program and reduces administrative 
costs by consolidating administrative functions.
    ``(c) Programs Affected.--The funds that may be 
consolidated in a demonstration project under any such plan 
referred to in subsection (a) shall include funds for any 
Federal program exclusively serving Indian children, or the 
funds reserved under any Federal program to exclusively serve 
Indian children, under which the entity is eligible for receipt 
of funds under a statutory or administrative formula for the 
purposes of providing education and related services that would 
be used to serve Indian students.
    ``(d) Plan Requirements.--For a plan to be acceptable 
pursuant to subsection (b), the plan shall--
            ``(1) identify the programs or funding sources to 
        be consolidated;
            ``(2) be consistent with the objectives of this 
        section concerning authorizing the services to be 
        integrated in a demonstration project;
            ``(3) describe a comprehensive strategy that 
        identifies the full range of potential educational 
        opportunities and related services to be provided to 
        assist Indian students to achieve the objectives set 
        forth in this subpart;
            ``(4) describe the way in which services are to be 
        integrated and delivered and the results expected from 
        the plan;
            ``(5) identify the projected expenditures under the 
        plan in a single budget;
            ``(6) identify the State, tribal, or local agency 
        or agencies to be involved in the delivery of the 
        services integrated under the plan;
            ``(7) identify any statutory provisions, 
        regulations, policies, or procedures that the entity 
        believes need to be waived in order to implement the 
        plan;
            ``(8) set forth measures for academic content and 
        student academic achievement goals designed to be met 
        within a specific period of time; and
            ``(9) be approved by a committee formed in 
        accordance with section 7114(c)(4), if such a committee 
        exists.
    ``(e) Plan Review.--Upon receipt of the plan from an 
eligible entity, the Secretary shall consult with the Secretary 
of each Federal department providing funds to be used to 
implement the plan, and with the entity submitting the plan. 
The parties so consulting shall identify any waivers of 
statutory requirements or of Federal departmental regulations, 
policies, or procedures necessary to enable the entity to 
implement the plan. Notwithstanding any other provision of law, 
the Secretary of the affected department shall have the 
authority to waive any regulation, policy, or procedure 
promulgated by that department that has been so identified by 
the entity or department, unless the Secretary of the affected 
department determines that such a waiver is inconsistent with 
the objectives of this subpart or those provisions of the 
statute from which the program involved derives authority that 
are specifically applicable to Indian students.
    ``(f) Plan Approval.--Within 90 days after the receipt of 
an entity's plan by the Secretary, the Secretary shall inform 
the entity, in writing, of the Secretary's approval or 
disapproval of the plan. If the plan is disapproved, the entity 
shall be informed, in writing, of the reasons for the 
disapproval and shall be given an opportunity to amend the plan 
or to petition the Secretary to reconsider such disapproval.
    ``(g) Responsibilities of Department of Education.--Not 
later than 180 days after the date of enactment of the No Child 
Left Behind Act of 2001, the Secretary of Education, the 
Secretary of the Interior, and the head of any other Federal 
department or agency identified by the Secretary of Education, 
shall enter into an interdepartmental memorandum of agreement 
providing for the implementation of the demonstration projects 
authorized under this section. The lead agency head for a 
demonstration project under this section shall be--
            ``(1) the Secretary of the Interior, in the case of 
        an entity meeting the definition of a contract or grant 
        school under title XI of the Education Amendments of 
        1978; or
            ``(2) the Secretary of Education, in the case of 
        any other entity.
    ``(h) Responsibilities of Lead Agency.--The 
responsibilities of the lead agency shall include--
            ``(1) the use of a single report format related to 
        the plan for the individual project, which shall be 
        used by an eligible entity to report on the activities 
        undertaken under the project;
            ``(2) the use of a single report format related to 
        the projected expenditures for the individual project 
        which shall be used by an eligible entity to report on 
        all project expenditures;
            ``(3) the development of a single system of Federal 
        oversight for the project, which shall be implemented 
        by the lead agency; and
            ``(4) the provision of technical assistance to an 
        eligible entity appropriate to the project, except that 
        an eligible entity shall have the authority to accept 
        or reject the plan for providing such technical 
        assistance and the technical assistance provider.
    ``(i) Report Requirements.--A single report format shall be 
developed by the Secretary, consistent with the requirements of 
this section. Such report format shall require that reports 
described in subsection (h), together with records maintained 
on the consolidated program at the local level, shall contain 
such information as will allow a determination that the 
eligible entity has complied with the requirements incorporated 
in its approved plan, including making a demonstration of 
student academic achievement, and will provide assurances to 
each Secretary that the eligible entity has complied with all 
directly applicable statutory requirements and with those 
directly applicable regulatory requirements that have not been 
waived.
    ``(j) No Reduction in Amounts.--In no case shall the amount 
of Federal funds available to an eligible entity involved in 
any demonstration project be reduced as a result of the 
enactment of this section.
    ``(k) Interagency Fund Transfers Authorized.--The Secretary 
is authorized to take such action as may be necessary to 
provide for an interagency transfer of funds otherwise 
available to an eligible entity in order to further the 
objectives of this section.
    ``(l) Administration of Funds.--
            ``(1) In general.--Program funds for the 
        consolidated programs shall be administered in such a 
        manner as to allow for a determination that funds from 
        a specific program are spent on allowable activities 
        authorized under such program, except that the eligible 
        entity shall determine the proportion of the funds 
        granted that shall be allocated to such program.
            ``(2) Separate records not required.--Nothing in 
        this section shall be construed as requiring the 
        eligible entity to maintain separate records tracing 
        any services or activities conducted under the approved 
        plan to the individual programs under which funds were 
        authorized for the services or activities, nor shall 
        the eligible entity be required to allocate 
        expenditures among such individual programs.
    ``(m) Overage.--The eligible entity may commingle all 
administrative funds from the consolidated programs and shall 
be entitled to the full amount of such funds (under each 
program's or agency's regulations). The overage (defined as the 
difference between the amount of the commingled funds and the 
actual administrative cost of the programs) shall be considered 
to be properly spent for Federal audit purposes, if the overage 
is used for the purposes provided for under this section.
    ``(n) Fiscal Accountability.--Nothing in this part shall be 
construed so as to interfere with the ability of the Secretary 
or the lead agency to fulfill the responsibilities for the 
safeguarding of Federal funds pursuant to chapter 75 of title 
31, United States Code.
    ``(o) Report on Statutory Obstacles to Program 
Integration.--
            ``(1) Preliminary report.--Not later than 2 years 
        after the date of enactment of the No Child Left Behind 
        Act of 2001, the Secretary of Education shall submit a 
        preliminary report to the Committee on Education and 
        the Workforce and the Committee on Resources of the 
        House of Representatives and the Committee on Health, 
        Education, Labor, and Pensions and the Committee on 
        Indian Affairs of the Senate on the status of the 
        implementation of the demonstration projects authorized 
        under this section.
            ``(2) Final report.--Not later than 5 years after 
        the date of enactment of the No Child Left Behind Act 
        of 2001, the Secretary of Education shall submit a 
        report to the Committee on Education and the Workforce 
        and the Committee on Resources of the House of 
        Representatives and the Committee on Health, Education, 
        Labor, and Pensions and the Committee on Indian Affairs 
        of the Senate on the results of the implementation of 
        the demonstration projects authorized under this 
        section. Such report shall identify statutory barriers 
        to the ability of participants to integrate more 
        effectively their education and related services to 
        Indian students in a manner consistent with the 
        objectives of this section.
    ``(p) Definitions.--For the purposes of this section, the 
term `Secretary' means--
            ``(1) the Secretary of the Interior, in the case of 
        an entity meeting the definition of a contract or grant 
        school under title XI of the Education Amendments of 
        1978; or
            ``(2) the Secretary of Education, in the case of 
        any other entity.

``SEC. 7117. STUDENT ELIGIBILITY FORMS.

    ``(a) In General.--The Secretary shall require that, as 
part of an application for a grant under this subpart, each 
applicant shall maintain a file, with respect to each Indian 
child for whom the local educational agency provides a free 
public education, that contains a form that sets forth 
information establishing the status of the child as an Indian 
child eligible for assistance under this subpart, and that 
otherwise meets the requirements of subsection (b).
    ``(b) Forms.--The form described in subsection (a) shall 
include--
            ``(1) either--
                    ``(A)(i) the name of the tribe or band of 
                Indians (as defined in section 7151) with 
                respect to which the child claims membership;
                    ``(ii) the enrollment number establishing 
                the membership of the child (if readily 
                available); and
                    ``(iii) the name and address of the 
                organization that maintains updated and 
                accurate membership data for such tribe or band 
                of Indians; or
                    ``(B) the name, the enrollment number (if 
                readily available), and the name and address of 
                the organization responsible for maintaining 
                updated and accurate membership data, of any 
                parent or grandparent of the child from whom 
                the child claims eligibility under this 
                subpart, if the child is not a member of the 
                tribe or band of Indians (as so defined);
            ``(2) a statement of whether the tribe or band of 
        Indians (as so defined), with respect to which the 
        child, or parent or grandparent of the child, claims 
        membership, is federally recognized;
            ``(3) the name and address of the parent or legal 
        guardian of the child;
            ``(4) a signature of the parent or legal guardian 
        of the child that verifies the accuracy of the 
        information supplied; and
            ``(5) any other information that the Secretary 
        considers necessary to provide an accurate program 
        profile.
    ``(c) Statutory Construction.--Nothing in this section 
shall be construed to affect a definition contained in section 
7151.
    ``(d) Forms and Standards of Proof.--The forms and the 
standards of proof (including the standard of good faith 
compliance) that were in use during the 1985-86 academic year 
to establish the eligibility of a child for entitlement under 
the Indian Elementary and Secondary School Assistance Act shall 
be the forms and standards of proof used--
            ``(1) to establish eligibility under this subpart; 
        and
            ``(2) to meet the requirements of subsection (a).
    ``(e) Documentation.--For purposes of determining whether a 
child is eligible to be counted for the purpose of computing 
the amount of a grant award under section 7113, the membership 
of the child, or any parent or grandparent of the child, in a 
tribe or band of Indians (as so defined) may be established by 
proof other than an enrollment number, notwithstanding the 
availability of an enrollment number for a member of such tribe 
or band. Nothing in subsection (b) shall be construed to 
require the furnishing of an enrollment number.
    ``(f) Monitoring and Evaluation Review.--
            ``(1) In general.--
                    ``(A) Review.--For each fiscal year, in 
                order to provide such information as is 
                necessary to carry out the responsibility of 
                the Secretary to provide technical assistance 
                under this subpart, the Secretary shall conduct 
                a monitoring and evaluation review of a 
                sampling of the recipients of grants under this 
                subpart. The sampling conducted under this 
                subparagraph shall take into account the size 
                of and the geographic location of each local 
                educational agency.
                    ``(B) Exception.--A local educational 
                agency may not be held liable to the United 
                States or be subject to any penalty, by reason 
                of the findings of an audit that relates to the 
                date of completion, or the date of submission, 
                of any forms used to establish, before April 
                28, 1988, the eligibility of a child for an 
                entitlement under the Indian Elementary and 
                Secondary School Assistance Act.
            ``(2) False information.--Any local educational 
        agency that provides false information in an 
        application for a grant under this subpart shall--
                    ``(A) be ineligible to apply for any other 
                grant under this subpart; and
                    ``(B) be liable to the United States for 
                any funds from the grant that have not been 
                expended.
            ``(3) Excluded children.--A student who provides 
        false information for the form required under 
        subsection (a) shall not be counted for the purpose of 
        computing the amount of a grant under section 7113.
    ``(g) Tribal Grant and Contract Schools.--Notwithstanding 
any other provision of this section, in calculating the amount 
of a grant under this subpart to a tribal school that receives 
a grant or contract from the Bureau of Indian Affairs, the 
Secretary shall use only 1 of the following, as selected by the 
school:
            ``(1) A count of the number of students in the 
        schools certified by the Bureau.
            ``(2) A count of the number of students for whom 
        the school has eligibility forms that comply with this 
        section.
    ``(h) Timing of Child Counts.--For purposes of determining 
the number of children to be counted in calculating the amount 
of a local educational agency's grant under this subpart (other 
than in the case described in subsection (g)(1)), the local 
educational agency shall--
            ``(1) establish a date on, or a period not longer 
        than 31 consecutive days during, which the agency 
        counts those children, if that date or period occurs 
        before the deadline established by the Secretary for 
        submitting an application under section 7114; and
            ``(2) determine that each such child was enrolled, 
        and receiving a free public education, in a school of 
        the agency on that date or during that period, as the 
        case may be.

``SEC. 7118. PAYMENTS.

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

``SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.

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

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

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

    ``(a) Purpose.--
            ``(1) In general.--It is the purpose of this 
        section to support projects to develop, test, and 
        demonstrate the effectiveness of services and programs 
        to improve educational opportunities and achievement of 
        Indian children.
            ``(2) Coordination.--The Secretary shall take the 
        necessary actions to achieve the coordination of 
        activities assisted under this subpart with--
                    ``(A) other programs funded under this Act; 
                and
                    ``(B) other Federal programs operated for 
                the benefit of American Indian and Alaska 
                Native children.
    ``(b) Eligible Entities.--In this section, the term 
`eligible entity' means a State educational agency, local 
educational agency, Indian tribe, Indian organization, 
federally supported elementary school or secondary school for 
Indian students, Indian institution (including an Indian 
institution of higher education), or a consortium of such 
entities.
    ``(c) Grants Authorized.--
            ``(1) In general.--The Secretary shall award grants 
        to eligible entities to enable such entities to carry 
        out activities that meet the purpose of this section, 
        including--
                    ``(A) innovative programs related to the 
                educational needs of educationally 
                disadvantaged children;
                    ``(B) educational services that are not 
                available to such children in sufficient 
                quantity or quality, including remedial 
                instruction, to raise the achievement of Indian 
                children in 1 or more of the core academic 
                subjects of English, mathematics, science, 
                foreign languages, art, history, and geography;
                    ``(C) bilingual and bicultural programs and 
                projects;
                    ``(D) special health and nutrition 
                services, and other related activities, that 
                address the special health, social, and 
                psychological problems of Indian children;
                    ``(E) special compensatory and other 
                programs and projects designed to assist and 
                encourage Indian children to enter, remain in, 
                or reenter school, and to increase the rate of 
                high school graduation for Indian children;
                    ``(F) comprehensive guidance, counseling, 
                and testing services;
                    ``(G) early childhood and kindergarten 
                programs, including family-based preschool 
                programs that emphasize school readiness and 
                parental skills, and the provision of services 
                to Indian children with disabilities;
                    ``(H) partnership projects between local 
                educational agencies and institutions of higher 
                education that allow secondary school students 
                to enroll in courses at the postsecondary level 
                to aid such students in the transition from 
                secondary to postsecondary education;
                    ``(I) partnership projects between schools 
                and local businesses for career preparation 
                programs designed to provide Indian youth with 
                the knowledge and skills such youth need to 
                make an effective transition from school to a 
                high-skill, high-wage career;
                    ``(J) programs designed to encourage and 
                assist Indian students to work toward, and gain 
                entrance into, an institution of higher 
                education;
                    ``(K) family literacy services;
                    ``(L) activities that recognize and support 
                the unique cultural and educational needs of 
                Indian children, and incorporate appropriately 
                qualified tribal elders and seniors; or
                    ``(M) other services that meet the purpose 
                described in this section.
            ``(2) Professional development.--Professional 
        development of teaching professionals and 
        paraprofessionals may be a part of any program assisted 
        under this section.
    ``(d) Grant Requirements and Applications.--
            ``(1) Grant requirements.--
                    ``(A) In general.--The Secretary may make 
                multiyear grants under subsection (c) for the 
                planning, development, pilot operation, or 
                demonstration of any activity described in 
                subsection (c) for a period not to exceed 5 
                years.
                    ``(B) Priority.--In making multiyear grants 
                described in this paragraph, the Secretary 
                shall give priority to entities submitting 
                applications that present a plan for combining 
                2 or more of the activities described in 
                subsection (c) over a period of more than 1 
                year.
                    ``(C) Progress.--The Secretary shall make a 
                grant payment for a grant described in this 
                paragraph to an eligible entity after the 
                initial year of the multiyear grant only if the 
                Secretary determines that the eligible entity 
                has made substantial progress in carrying out 
                the activities assisted under the grant in 
                accordance with the application submitted under 
                paragraph (3) and any subsequent modifications 
                to such application.
            ``(2) Dissemination grants.--
                    ``(A) In general.--In addition to awarding 
                the multiyear grants described in paragraph 
                (1), the Secretary may award grants under 
                subsection (c) to eligible entities for the 
                dissemination of exemplary materials or 
                programs assisted under this section.
                    ``(B) Determination.--The Secretary may 
                award a dissemination grant described in this 
                paragraph if, prior to awarding the grant, the 
                Secretary determines that the material or 
                program to be disseminated--
                            ``(i) has been adequately reviewed;
                            ``(ii) has demonstrated educational 
                        merit; and
                            ``(iii) can be replicated.
            ``(3) Application.--
                    ``(A) In general.--Any eligible entity that 
                desires to receive a grant under this section 
                shall submit an application to the Secretary at 
                such time and in such manner as the Secretary 
                may reasonably require.
                    ``(B) Contents.--Each application submitted 
                to the Secretary under subparagraph (A), other 
                than an application for a dissemination grant 
                under paragraph (2), shall contain--
                            ``(i) a description of how parents 
                        of Indian children and representatives 
                        of Indian tribes have been, and will 
                        be, involved in developing and 
                        implementing the activities for which 
                        assistance is sought;
                            ``(ii) assurances that the 
                        applicant will participate, at the 
                        request of the Secretary, in any 
                        national evaluation of activities 
                        assisted under this section;
                            ``(iii) information demonstrating 
                        that the proposed program for the 
                        activities is a scientifically based 
                        research program, where applicable, 
                        which may include a program that has 
                        been modified to be culturally 
                        appropriate for students who will be 
                        served;
                            ``(iv) a description of how the 
                        applicant will incorporate the proposed 
                        activities into the ongoing school 
                        program involved once the grant period 
                        is over; and
                            ``(v) such other assurances and 
                        information as the Secretary may 
                        reasonably require.
    ``(e) Administrative Costs.--Not more than 5 percent of the 
funds provided to a grantee under this subpart for any fiscal 
year may be used for administrative purposes.

``SEC. 7122. PROFESSIONAL DEVELOPMENT FOR TEACHERS AND EDUCATION 
                    PROFESSIONALS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to increase the number of qualified Indian 
        individuals in teaching or other education professions 
        that serve Indian people;
            ``(2) to provide training to qualified Indian 
        individuals to enable such individuals to become 
        teachers, administrators, teacher aides, social 
        workers, and ancillary educational personnel; and
            ``(3) to improve the skills of qualified Indian 
        individuals who serve in the capacities described in 
        paragraph (2).
    ``(b) Eligible Entities.--For the purpose of this section, 
the term `eligible entity' means--
            ``(1) an institution of higher education, including 
        an Indian institution of higher education;
            ``(2) a State educational agency or local 
        educational agency, in consortium with an institution 
        of higher education;
            ``(3) an Indian tribe or organization, in 
        consortium with an institution of higher education; and
            ``(4) a Bureau-funded school (as defined in section 
        1146 of the Education Amendments of 1978).
    ``(c) Program Authorized.--The Secretary is authorized to 
award grants to eligible entities having applications approved 
under this section to enable those entities to carry out the 
activities described in subsection (d).
    ``(d) Authorized Activities.--
            ``(1) In general.--Grant funds under this section 
        shall be used for activities to provide support and 
        training for Indian individuals in a manner consistent 
        with the purposes of this section. Such activities may 
        include continuing programs, symposia, workshops, 
        conferences, and direct financial support, and may 
        include programs designed to train tribal elders and 
        seniors.
            ``(2) Special rules.--
                    ``(A) Type of training.--For education 
                personnel, the training received pursuant to a 
                grant under this section may be inservice or 
                preservice training.
                    ``(B) Program.--For individuals who are 
                being trained to enter any field other than 
                teaching, the training received pursuant to a 
                grant under this section shall be in a program 
                that results in a graduate degree.
    ``(e) Application.--Each eligible entity desiring a grant 
under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such 
information, as the Secretary may reasonably require.
    ``(f) Special Rule.--In awarding grants under this section, 
the Secretary--
            ``(1) shall consider the prior performance of the 
        eligible entity; and
            ``(2) may not limit eligibility to receive a grant 
        under this section on the basis of--
                    ``(A) the number of previous grants the 
                Secretary has awarded such entity; or
                    ``(B) the length of any period during which 
                such entity received such grants.
    ``(g) Grant Period.--Each grant under this section shall be 
awarded for a period of not more than 5 years.
    ``(h) Service Obligation.--
            ``(1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives training 
        pursuant to a grant made under this section--
                    ``(A) perform work--
                            ``(i) related to the training 
                        received under this section; and
                            ``(ii) that benefits Indian people; 
                        or
                    ``(B) repay all or a prorated part of the 
                assistance received.
            ``(2) Reporting.--The Secretary shall establish, by 
        regulation, a reporting procedure under which a grant 
        recipient under this section shall, not later than 12 
        months after the date of completion of the training, 
        and periodically thereafter, provide information 
        concerning compliance with the work requirement under 
        paragraph (1).

                    ``Subpart 3--National Activities

``SEC. 7131. NATIONAL RESEARCH ACTIVITIES.

    ``(a) Authorized Activities.--The Secretary may use funds 
made available under section 7152(b) for each fiscal year to--
            ``(1) conduct research related to effective 
        approaches for the education of Indian children and 
        adults;
            ``(2) evaluate federally assisted education 
        programs from which Indian children and adults may 
        benefit;
            ``(3) collect and analyze data on the educational 
        status and needs of Indians; and
            ``(4) carry out other activities that are 
        consistent with the purpose of this part.
    ``(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through 
grants to, or contracts or cooperative agreements with, Indian 
tribes, Indian organizations, State educational agencies, local 
educational agencies, institutions of higher education, 
including Indian institutions of higher education, and other 
public and private agencies and institutions.
    ``(c) Coordination.--Research activities supported under 
this section--
            ``(1) shall be carried out in consultation with the 
        Office of Educational Research and Improvement to 
        ensure that such activities are coordinated with and 
        enhance the research and development activities 
        supported by the Office; and
            ``(2) may include collaborative research activities 
        that are jointly funded and carried out by the Office 
        of Indian Education Programs and the Office of 
        Educational Research and Improvement.

``SEC. 7132. IN-SERVICE TRAINING FOR TEACHERS OF INDIAN CHILDREN.

    ``(a) Grants Authorized.--In addition to the grants 
authorized by section 7122(c), the Secretary may make grants to 
eligible consortia for the provision of high quality in-service 
training. The Secretary may make such a grant to--
            ``(1) a consortium of a tribal college and an 
        institution of higher education that awards a degree in 
        education; or
            ``(2) a consortium of--
                    ``(A) a tribal college;
                    ``(B) an institution of higher education 
                that awards a degree in education; and
                    ``(C) 1 or more elementary schools or 
                secondary schools operated by the Bureau of 
                Indian Affairs, local educational agencies 
                serving Indian children, or tribal educational 
                agencies.
    ``(b) Use of Funds.--
            ``(1) In-service training.--A consortium that 
        receives a grant under subsection (a) shall use the 
        grant funds only to provide high quality in-service 
        training to teachers, including teachers who are not 
        Indians, in schools of local educational agencies with 
        substantial numbers of Indian children enrolled in 
        their schools, in order to better meet the needs of 
        those children.
            ``(2) Components.--The training described in 
        paragraph (1) shall include such activities as 
        preparing teachers to use the best available 
        scientifically based research practices and learning 
        strategies, and to make the most effective use of 
        curricula and materials, to respond to the unique needs 
        of Indian children in their classrooms.
    ``(c) Preference for Indian Applicants.--In applying 
section 7143 to this section, the Secretary shall give a 
preference to any consortium that includes 1 or more of the 
entities described in section 7143.

``SEC. 7133. FELLOWSHIPS FOR INDIAN STUDENTS.

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

``SEC. 7134. GIFTED AND TALENTED INDIAN STUDENTS.

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

``SEC. 7135. GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE PLANNING AND 
                    DEVELOPMENT.

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

``SEC. 7136. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT 
                    INDIANS.

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

                  ``Subpart 4--Federal Administration

``SEC. 7141. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

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

``SEC. 7142. PEER REVIEW.

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

``SEC. 7143. PREFERENCE FOR INDIAN APPLICANTS.

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

``SEC. 7144. MINIMUM GRANT CRITERIA.

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

       ``Subpart 5--Definitions; Authorizations of Appropriations

``SEC. 7151. DEFINITIONS.

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

``SEC. 7152. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Subpart 1.--For the purpose of carrying out subpart 
1, there are authorized to be appropriated $96,400,000 for 
fiscal year 2002 and such sums as may be necessary for each of 
the 5 succeeding fiscal years.
    ``(b) Subparts 2 and 3.--For the purpose of carrying out 
subparts 2 and 3, there are authorized to be appropriated 
$24,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.

                  ``PART B--NATIVE HAWAIIAN EDUCATION

``SEC. 7201. SHORT TITLE.

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

``SEC. 7202. FINDINGS.

    ``Congress finds the following:
            ``(1) Native Hawaiians are a distinct and unique 
        indigenous people with a historical continuity to the 
        original inhabitants of the Hawaiian archipelago, whose 
        society was organized as a nation and internationally 
        recognized as a nation by the United States, Britain, 
        France, and Japan, as evidenced by treaties governing 
        friendship, commerce, and navigation.
            ``(2) At the time of the arrival of the first 
        nonindigenous people in Hawai`i in 1778, the Native 
        Hawaiian people lived in a highly organized, self-
        sufficient subsistence social system based on a 
        communal land tenure system with a sophisticated 
        language, culture, and religion.
            ``(3) A unified monarchal government of the 
        Hawaiian Islands was established in 1810 under 
        Kamehameha I, the first King of Hawai`i.
            ``(4) From 1826 until 1893, the United States 
        recognized the sovereignty and independence of the 
        Kingdom of Hawai`i, which was established in 1810 under 
        Kamehameha I, extended full and complete diplomatic 
        recognition to the Kingdom of Hawai`i, and entered into 
        treaties and conventions with the Kingdom of Hawai`i to 
        govern friendship, commerce and navigation in 1826, 
        1842, 1849, 1875, and 1887.
            ``(5) In 1893, the sovereign, independent, 
        internationally recognized, and indigenous government 
        of Hawai`i, the Kingdom of Hawai`i, was overthrown by a 
        small group of non-Hawaiians, including United States 
        citizens, who were assisted in their efforts by the 
        United States Minister, a United States naval 
        representative, and armed naval forces of the United 
        States. Because of the participation of United States 
        agents and citizens in the overthrow of the Kingdom of 
        Hawai`i, in 1993 the United States apologized to Native 
        Hawaiians for the overthrow and the deprivation of the 
        rights of Native Hawaiians to self-determination 
        through Public Law 103-150 (107 Stat. 1510).
            ``(6) In 1898, the joint resolution entitled `Joint 
        Resolution to provide for annexing the Hawaiian Islands 
        to the United States', approved July 7, 1898 (30 Stat. 
        750), ceded absolute title of all lands held by the 
        Republic of Hawai`i, including the government and crown 
        lands of the former Kingdom of Hawai`i, to the United 
        States, but mandated that revenue generated from the 
        lands be used `solely for the benefit of the 
        inhabitants of the Hawaiian Islands for educational and 
        other public purposes'.
            ``(7) By 1919, the Native Hawaiian population had 
        declined from an estimated 1,000,000 in 1778 to an 
        alarming 22,600, and in recognition of this severe 
        decline, Congress enacted the Hawaiian Homes Commission 
        Act, 1920 (42 Stat. 108), which designated 
        approximately 200,000 acres of ceded public lands for 
        homesteading by Native Hawaiians.
            ``(8) Through the enactment of the Hawaiian Homes 
        Commission Act, 1920, Congress affirmed the special 
        relationship between the United States and the Native 
        Hawaiians, which was described by then Secretary of the 
        Interior Franklin K. Lane, who said: `One thing that 
        impressed me . . . was the fact that the natives of the 
        island who are our wards, I should say, and for whom in 
        a sense we are trustees, are falling off rapidly in 
        numbers and many of them are in poverty.'.
            ``(9) In 1938, Congress again acknowledged the 
        unique status of the Hawaiian people by including in 
        the Act of June 20, 1938 (52 Stat. 781, chapter 530; 16 
        U.S.C. 391b, 391b-1, 392b, 392c, 396, 396a), a 
        provision to lease lands within the National Parks 
        extension to Native Hawaiians and to permit fishing in 
        the area `only by native Hawaiian residents of said 
        area or of adjacent villages and by visitors under 
        their guidance.'.
            ``(10) Under the Act entitled `An Act to provide 
        for the admission of the State of Hawai`i into the 
        Union', approved March 18, 1959 (73 Stat. 4), the 
        United States transferred responsibility for the 
        administration of the Hawaiian Home Lands to the State 
        of Hawai`i but reaffirmed the trust relationship 
        between the United States and the Hawaiian people by 
        retaining the exclusive power to enforce the trust, 
        including the power to approve land exchanges and 
        amendments to such Act affecting the rights of 
        beneficiaries under such Act.
            ``(11) In 1959, under the Act entitled `An Act to 
        provide for the admission of the State of Hawai`i into 
        the Union', the United States also ceded to the State 
        of Hawai`i title to the public lands formerly held by 
        the United States, but mandated that such lands be held 
        by the State `in public trust' and reaffirmed the 
        special relationship that existed between the United 
        States and the Hawaiian people by retaining the legal 
        responsibility to enforce the public trust 
        responsibility of the State of Hawai`i for the 
        betterment of the conditions of Native Hawaiians, as 
        defined in section 201(a) of the Hawaiian Homes 
        Commission Act, 1920.
            ``(12) The United States has recognized and 
        reaffirmed that--
                    ``(A) Native Hawaiians have a cultural, 
                historic, and land-based link to the indigenous 
                people who exercised sovereignty over the 
                Hawaiian Islands, and that group has never 
                relinquished its claims to sovereignty or its 
                sovereign lands;
                    ``(B) Congress does not extend services to 
                Native Hawaiians because of their race, but 
                because of their unique status as the 
                indigenous people of a once sovereign nation as 
                to whom the United States has established a 
                trust relationship;
                    ``(C) Congress has also delegated broad 
                authority to administer a portion of the 
                Federal trust responsibility to the State of 
                Hawai`i;
                    ``(D) the political status of Native 
                Hawaiians is comparable to that of American 
                Indians and Alaska Natives; and
                    ``(E) the aboriginal, indigenous people of 
                the United States have--
                            ``(i) a continuing right to 
                        autonomy in their internal affairs; and
                            ``(ii) an ongoing right of self-
                        determination and self-governance that 
                        has never been extinguished.
            ``(13) The political relationship between the 
        United States and the Native Hawaiian people has been 
        recognized and reaffirmed by the United States, as 
        evidenced by the inclusion of Native Hawaiians in--
                    ``(A) the Native American Programs Act of 
                1974 (42 U.S.C. 2991 et seq.);
                    ``(B) the American Indian Religious Freedom 
                Act (42 U.S.C. 1996);
                    ``(C) the National Museum of the American 
                Indian Act (20 U.S.C. 80q et seq.);
                    ``(D) the Native American Graves Protection 
                and Repatriation Act (25 U.S.C. 3001 et seq.);
                    ``(E) the National Historic Preservation 
                Act (16 U.S.C. 470 et seq.);
                    ``(F) the Native American Languages Act (25 
                U.S.C. 2901 et seq.);
                    ``(G) the American Indian, Alaska Native, 
                and Native Hawaiian Culture and Art Development 
                Act (20 U.S.C. 4401 et seq.);
                    ``(H) the Workforce Investment Act of 1998 
                (29 U.S.C. 2801 et seq.); and
                    ``(I) the Older Americans Act of 1965 (42 
                U.S.C. 3001 et seq.).
            ``(14) In 1981, Congress instructed the Office of 
        Education to submit to Congress a comprehensive report 
        on Native Hawaiian education. The report, entitled the 
        `Native Hawaiian Educational Assessment Project', was 
        released in 1983 and documented that Native Hawaiians 
        scored below parity with regard to national norms on 
        standardized achievement tests, were disproportionately 
        represented in many negative social and physical 
        statistics indicative of special educational needs, and 
        had educational needs that were related to their unique 
        cultural situation, such as different learning styles 
        and low self-image.
            ``(15) In recognition of the educational needs of 
        Native Hawaiians, in 1988, Congress enacted title IV of 
        the Augustus F. Hawkins-Robert T. Stafford Elementary 
        and Secondary School Improvement Amendments of 1988 
        (102 Stat. 130) to authorize and develop supplemental 
        educational programs to address the unique conditions 
        of Native Hawaiians.
            ``(16) In 1993, the Kamehameha Schools Bishop 
        Estate released a 10-year update of findings of the 
        Native Hawaiian Educational Assessment Project, which 
        found that despite the successes of the programs 
        established under title IV of the Augustus F. Hawkins-
        Robert T. Stafford Elementary and Secondary School 
        Improvement Amendments of 1988, many of the same 
        educational needs still existed for Native Hawaiians. 
        Subsequent reports by the Kamehameha Schools Bishop 
        Estate and other organizations have generally confirmed 
        those findings. For example--
                    ``(A) educational risk factors continue to 
                start even before birth for many Native 
                Hawaiian children, including--
                            ``(i) late or no prenatal care;
                            ``(ii) high rates of births by 
                        Native Hawaiian women who are 
                        unmarried; and
                            ``(iii) high rates of births to 
                        teenage parents;
                    ``(B) Native Hawaiian students continue to 
                begin their school experience lagging behind 
                other students in terms of readiness factors 
                such as vocabulary test scores;
                    ``(C) Native Hawaiian students continue to 
                score below national norms on standardized 
                education achievement tests at all grade 
                levels;
                    ``(D) both public and private schools 
                continue to show a pattern of lower percentages 
                of Native Hawaiian students in the uppermost 
                achievement levels and in gifted and talented 
                programs;
                    ``(E) Native Hawaiian students continue to 
                be overrepresented among students qualifying 
                for special education programs provided to 
                students with learning disabilities, mild 
                mental retardation, emotional impairment, and 
                other such disabilities;
                    ``(F) Native Hawaiians continue to be 
                underrepresented in institutions of higher 
                education and among adults who have completed 4 
                or more years of college;
                    ``(G) Native Hawaiians continue to be 
                disproportionately represented in many negative 
                social and physical statistics indicative of 
                special educational needs, as demonstrated by 
                the fact that--
                            ``(i) Native Hawaiian students are 
                        more likely to be retained in grade 
                        level and to be excessively absent in 
                        secondary school;
                            ``(ii) Native Hawaiian students 
                        have the highest rates of drug and 
                        alcohol use in the State of Hawai`i; 
                        and
                            ``(iii) Native Hawaiian children 
                        continue to be disproportionately 
                        victimized by child abuse and neglect; 
                        and
                    ``(H) Native Hawaiians now comprise over 23 
                percent of the students served by the State of 
                Hawai`i Department of Education, and there are 
                and will continue to be geographically rural, 
                isolated areas with a high Native Hawaiian 
                population density.
            ``(17) In the 1998 National Assessment of 
        Educational Progress, Hawaiian fourth-graders ranked 
        39th among groups of students from 39 States in 
        reading. Given that Hawaiian students rank among the 
        lowest groups of students nationally in reading, and 
        that Native Hawaiian students rank the lowest among 
        Hawaiian students in reading, it is imperative that 
        greater focus be placed on beginning reading and early 
        education and literacy in Hawai`i.
            ``(18) The findings described in paragraphs (16) 
        and (17) are inconsistent with the high rates of 
        literacy and integration of traditional culture and 
        Western education historically achieved by Native 
        Hawaiians through a Hawaiian language-based public 
        school system established in 1840 by Kamehameha III.
            ``(19) Following the overthrow of the Kingdom of 
        Hawai`i in 1893, Hawaiian medium schools were banned. 
        After annexation, throughout the territorial and 
        statehood period of Hawai`i, and until 1986, use of the 
        Hawaiian language as an instructional medium in 
        education in public schools was declared unlawful. The 
        declaration caused incalculable harm to a culture that 
        placed a very high value on the power of language, as 
        exemplified in the traditional saying: `I ka `olelo no 
        ke ola; I ka `olelo no ka make. In the language rests 
        life; In the language rests death.'.
            ``(20) Despite the consequences of over 100 years 
        of nonindigenous influence, the Native Hawaiian people 
        are determined to preserve, develop, and transmit to 
        future generations their ancestral territory and their 
        cultural identity in accordance with their own 
        spiritual and traditional beliefs, customs, practices, 
        language, and social institutions.
            ``(21) The State of Hawai`i, in the constitution 
        and statutes of the State of Hawai`i--
                    ``(A) reaffirms and protects the unique 
                right of the Native Hawaiian people to practice 
                and perpetuate their culture and religious 
                customs, beliefs, practices, and language;
                    ``(B) recognizes the traditional language 
                of the Native Hawaiian people as an official 
                language of the State of Hawai`i, which may be 
                used as the language of instruction for all 
                subjects and grades in the public school 
                system; and
                    ``(C) promotes the study of the Hawaiian 
                culture, language, and history by providing a 
                Hawaiian education program and using community 
                expertise as a suitable and essential means to 
                further the program.

``SEC. 7203. PURPOSES.

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

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

    ``(a) Establishment of Native Hawaiian Education Council.--
In order to better effectuate the purposes of this part through 
the coordination of educational and related services and 
programs available to Native Hawaiians, including those 
programs receiving funding under this part, the Secretary is 
authorized to establish a Native Hawaiian Education Council 
(hereafter in this part referred to as the `Education 
Council').
    ``(b) Composition of Education Council.--The Education 
Council shall consist of not more than 21 members, unless 
otherwise determined by a majority of the council.
    ``(c) Conditions and Terms.--
            ``(1) Conditions.--At least 10 members of the 
        Education Council shall be Native Hawaiian education 
        service providers and 10 members of the Education 
        Council shall be Native Hawaiians or Native Hawaiian 
        education consumers. In addition, a representative of 
        the State of Hawai`i Office of Hawaiian Affairs shall 
        serve as a member of the Education Council.
            ``(2) Appointments.--The members of the Education 
        Council shall be appointed by the Secretary based on 
        recommendations received from the Native Hawaiian 
        community.
            ``(3) Terms.--Members of the Education Council 
        shall serve for staggered terms of 3 years, except as 
        provided in paragraph (4).
            ``(4) Council determinations.--Additional 
        conditions and terms relating to membership on the 
        Education Council, including term lengths and term 
        renewals, shall be determined by a majority of the 
        Education Council.
    ``(d) Native Hawaiian Education Council Grant.--The 
Secretary shall make a direct grant to the Education Council to 
carry out the following activities:
            ``(1) Coordinate the educational and related 
        services and programs available to Native Hawaiians, 
        including the programs assisted under this part.
            ``(2) Assess the extent to which such services and 
        programs meet the needs of Native Hawaiians, and 
        collect data on the status of Native Hawaiian 
        education.
            ``(3) Provide direction and guidance, through the 
        issuance of reports and recommendations, to appropriate 
        Federal, State, and local agencies in order to focus 
        and improve the use of resources, including resources 
        made available under this part, relating to Native 
        Hawaiian education, and serve, where appropriate, in an 
        advisory capacity.
            ``(4) Make direct grants, if such grants enable the 
        Education Council to carry out the duties of the 
        Education Council, as described in paragraphs (1) 
        through (3).
    ``(e) Additional Duties of the Education Council.--
            ``(1) In general.--The Education Council shall 
        provide copies of any reports and recommendations 
        issued by the Education Council, including any 
        information that the Education Council provides to the 
        Secretary pursuant to subsection (i), to the Secretary, 
        the Committee on Education and the Workforce of the 
        House of Representatives, and the Committee on Indian 
        Affairs of the Senate.
            ``(2) Annual report.--The Education Council shall 
        prepare and submit to the Secretary an annual report on 
        the Education Council's activities.
            ``(3) Island council support and assistance.--The 
        Education Council shall provide such administrative 
        support and financial assistance to the island councils 
        established pursuant to subsection (f) as the Secretary 
        determines to be appropriate, in a manner that supports 
        the distinct needs of each island council.
    ``(f) Establishment of Island Councils.--
            ``(1) In general.--In order to better effectuate 
        the purposes of this part and to ensure the adequate 
        representation of island and community interests within 
        the Education Council, the Secretary is authorized to 
        facilitate the establishment of Native Hawaiian 
        education island councils (hereafter in this part 
        referred to as an `island council') for the following 
        islands:
                    ``(A) Hawai`i.
                    ``(B) Maui.
                    ``(C) Moloka`i.
                    ``(D) Lana`i.
                    ``(E) O`ahu.
                    ``(F) Kaua`i.
                    ``(G) Ni`ihau.
            ``(2) Composition of island councils.--Each island 
        council shall consist of parents, students, and other 
        community members who have an interest in the education 
        of Native Hawaiians, and shall be representative of 
        individuals concerned with the educational needs of all 
        age groups, from children in preschool through adults. 
        At least \3/4\ of the members of each island council 
        shall be Native Hawaiians.
    ``(g) Administrative Provisions Relating to Education 
Council and Island Councils.--The Education Council and each 
island council shall meet at the call of the chairperson of the 
appropriate council, or upon the request of the majority of the 
members of the appropriate council, but in any event not less 
often than 4 times during each calendar year. The provisions of 
the Federal Advisory Committee Act shall not apply to the 
Education Council and each island council.
    ``(h) Compensation.--Members of the Education Council and 
each island council shall not receive any compensation for 
service on the Education Council and each island council, 
respectively.
    ``(i) Report.--Not later than 4 years after the date of 
enactment of the No Child Left Behind Act of 2001, the 
Secretary shall prepare and submit to the Committee on 
Education and the Workforce of the House of Representatives and 
the Committee on Indian Affairs of the Senate a report that 
summarizes the annual reports of the Education Council, 
describes the allocation and use of funds under this part, and 
contains recommendations for changes in Federal, State, and 
local policy to advance the purposes of this part.

``SEC. 7205. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is 
        authorized to make direct grants to, or enter into 
        contracts with--
                    ``(A) Native Hawaiian educational 
                organizations;
                    ``(B) Native Hawaiian community-based 
                organizations;
                    ``(C) public and private nonprofit 
                organizations, agencies, and institutions with 
                experience in developing or operating Native 
                Hawaiian programs or programs of instruction in 
                the Native Hawaiian language; and
                    ``(D) consortia of the organizations, 
                agencies, and institutions described in 
                subparagraphs (A) through (C),
        to carry out programs that meet the purposes of this 
        part.
            ``(2) Priorities.--In awarding grants or contracts 
        to carry out activities described in paragraph (3), the 
        Secretary shall give priority to entities proposing 
        projects that are designed to address--
                    ``(A) beginning reading and literacy among 
                students in kindergarten through third grade;
                    ``(B) the needs of at-risk children and 
                youth;
                    ``(C) needs in fields or disciplines in 
                which Native Hawaiians are underemployed; and
                    ``(D) the use of the Hawaiian language in 
                instruction.
            ``(3) Authorized activities.--Activities provided 
        through programs carried out under this part may 
        include--
                    ``(A) the development and maintenance of a 
                statewide Native Hawaiian early education and 
                care system to provide a continuum of services 
                for Native Hawaiian children from the prenatal 
                period of the children through age 5;
                    ``(B) the operation of family-based 
                education centers that provide such services 
                as--
                            ``(i) programs for Native Hawaiian 
                        parents and their infants from the 
                        prenatal period of the infants through 
                        age 3;
                            ``(ii) preschool programs for 
                        Native Hawaiians; and
                            ``(iii) research on, and 
                        development and assessment of, family-
                        based, early childhood, and preschool 
                        programs for Native Hawaiians;
                    ``(C) activities that enhance beginning 
                reading and literacy in either the Hawaiian or 
                the English language among Native Hawaiian 
                students in kindergarten through third grade 
                and assistance in addressing the distinct 
                features of combined English and Hawaiian 
                literacy for Hawaiian speakers in fifth and 
                sixth grade;
                    ``(D) activities to meet the special needs 
                of Native Hawaiian students with disabilities, 
                including--
                            ``(i) the identification of such 
                        students and their needs;
                            ``(ii) the provision of support 
                        services to the families of those 
                        students; and
                            ``(iii) other activities consistent 
                        with the requirements of the 
                        Individuals with Disabilities Education 
                        Act;
                    ``(E) activities that address the special 
                needs of Native Hawaiian students who are 
                gifted and talented, including--
                            ``(i) educational, psychological, 
                        and developmental activities designed 
                        to assist in the educational progress 
                        of those students; and
                            ``(ii) activities that involve the 
                        parents of those students in a manner 
                        designed to assist in the students' 
                        educational progress;
                    ``(F) the development of academic and 
                vocational curricula to address the needs of 
                Native Hawaiian children and adults, including 
                curriculum materials in the Hawaiian language 
                and mathematics and science curricula that 
                incorporate Native Hawaiian tradition and 
                culture;
                    ``(G) professional development activities 
                for educators, including--
                            ``(i) the development of programs 
                        to prepare prospective teachers to 
                        address the unique needs of Native 
                        Hawaiian students within the context of 
                        Native Hawaiian culture, language, and 
                        traditions;
                            ``(ii) in-service programs to 
                        improve the ability of teachers who 
                        teach in schools with concentrations of 
                        Native Hawaiian students to meet those 
                        students' unique needs; and
                            ``(iii) the recruitment and 
                        preparation of Native Hawaiians, and 
                        other individuals who live in 
                        communities with a high concentration 
                        of Native Hawaiians, to become 
                        teachers;
                    ``(H) the operation of community-based 
                learning centers that address the needs of 
                Native Hawaiian families and communities 
                through the coordination of public and private 
                programs and services, including--
                            ``(i) preschool programs;
                            ``(ii) after-school programs;
                            ``(iii) vocational and adult 
                        education programs; and
                            ``(iv) programs that recognize and 
                        support the unique cultural and 
                        educational needs of Native Hawaiian 
                        children, and incorporate appropriately 
                        qualified Native Hawaiian elders and 
                        seniors;
                    ``(I) activities, including program co-
                location, to enable Native Hawaiians to enter 
                and complete programs of postsecondary 
                education, including--
                            ``(i) provision of full or partial 
                        scholarships for undergraduate or 
                        graduate study that are awarded to 
                        students based on their academic 
                        promise and financial need, with a 
                        priority, at the graduate level, given 
                        to students entering professions in 
                        which Native Hawaiians are 
                        underrepresented;
                            ``(ii) family literacy services;
                            ``(iii) counseling and support 
                        services for students receiving 
                        scholarship assistance;
                            ``(iv) counseling and guidance for 
                        Native Hawaiian secondary students who 
                        have the potential to receive 
                        scholarships; and
                            ``(v) faculty development 
                        activities designed to promote the 
                        matriculation of Native Hawaiian 
                        students;
                    ``(J) research and data collection 
                activities to determine the educational status 
                and needs of Native Hawaiian children and 
                adults;
                    ``(K) other research and evaluation 
                activities related to programs carried out 
                under this part; and
                    ``(L) other activities, consistent with the 
                purposes of this part, to meet the educational 
                needs of Native Hawaiian children and adults.
            ``(4) Special rule and conditions.--
                    ``(A) Institutions outside hawaii.--The 
                Secretary shall not establish a policy under 
                this section that prevents a Native Hawaiian 
                student enrolled at a 2- or 4-year degree 
                granting institution of higher education 
                outside of the State of Hawai`i from receiving 
                a scholarship pursuant to paragraph (3)(I).
                    ``(B) Scholarship conditions.--The 
                Secretary shall establish conditions for 
                receipt of a scholarship awarded under 
                paragraph (3)(I). The conditions shall require 
                that an individual seeking such a scholarship 
                enter into a contract to provide professional 
                services, either during the scholarship period 
                or upon completion of a program of 
                postsecondary education, to the Native Hawaiian 
                community.
    ``(b) Administrative Costs.--Not more than 5 percent of 
funds provided to a recipient of a grant or contract under 
subsection (a) for any fiscal year may be used for 
administrative purposes.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to carry out this section and section 7204 
        such sums as may be necessary for fiscal year 2002 and 
        each of the 5 succeeding fiscal years.
            ``(2) Reservation.--Of the funds appropriated under 
        this subsection, the Secretary shall reserve $500,000 
        for fiscal year 2002 and each of the 5 succeeding 
        fiscal years to make a direct grant to the Education 
        Council to carry out section 7204.
            ``(3) Availability.--Funds appropriated under this 
        subsection shall remain available until expended.

``SEC. 7206. ADMINISTRATIVE PROVISIONS.

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

``SEC. 7207. DEFINITIONS.

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

                   ``PART C--ALASKA NATIVE EDUCATION

``SEC. 7301. SHORT TITLE.

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

``SEC. 7302. FINDINGS.

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

``SEC. 7303. PURPOSES.

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

``SEC. 7304. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is 
        authorized to make grants to, or enter into contracts 
        with, Alaska Native organizations, educational entities 
        with experience in developing or operating Alaska 
        Native programs or programs of instruction conducted in 
        Alaska Native languages, cultural and community-based 
        organizations with experience in developing or 
        operating programs to benefit Alaska Natives, and 
        consortia of organizations and entities described in 
        this paragraph to carry out programs that meet the 
        purposes of this part.
            ``(2) Permissible activities.--Activities provided 
        through programs carried out under this part may 
        include the following:
                    ``(A) The development and implementation of 
                plans, methods, and strategies to improve the 
                education of Alaska Natives.
                    ``(B) The development of curricula and 
                educational programs that address the 
                educational needs of Alaska Native students, 
                including the following:
                            ``(i) Curriculum materials that 
                        reflect the cultural diversity or the 
                        contributions of Alaska Natives.
                            ``(ii) Instructional programs that 
                        make use of Native Alaskan languages.
                            ``(iii) Networks that introduce 
                        successful programs, materials, and 
                        techniques to urban and rural schools.
                    ``(C) Professional development activities 
                for educators, including the following:
                            ``(i) Programs to prepare teachers 
                        to address the cultural diversity and 
                        unique needs of Alaska Native students.
                            ``(ii) In-service programs to 
                        improve the ability of teachers to meet 
                        the unique needs of Alaska Native 
                        students.
                            ``(iii) Recruitment and preparation 
                        of teachers who are Alaska Native, 
                        reside in communities with high 
                        concentrations of Alaska Native 
                        students, or are likely to succeed as 
                        teachers in isolated, rural communities 
                        and engage in cross-cultural 
                        instruction in Alaska.
                    ``(D) The development and operation of home 
                instruction programs for Alaska Native 
                preschool children, to ensure the active 
                involvement of parents in their children's 
                education from the earliest ages.
                    ``(E) Family literacy services.
                    ``(F) The development and operation of 
                student enrichment programs in science and 
                mathematics that--
                            ``(i) are designed to prepare 
                        Alaska Native students from rural 
                        areas, who are preparing to enter 
                        secondary school, to excel in science 
                        and math;
                            ``(ii) provide appropriate support 
                        services to the families of such 
                        students that are needed to enable such 
                        students to benefit from the programs; 
                        and
                            ``(iii) may include activities that 
                        recognize and support the unique 
                        cultural and educational needs of 
                        Alaska Native children, and incorporate 
                        appropriately qualified Alaska Native 
                        elders and seniors.
                    ``(G) Research and data collection 
                activities to determine the educational status 
                and needs of Alaska Native children and adults.
                    ``(H) Other research and evaluation 
                activities related to programs carried out 
                under this part.
                    ``(I) Remedial and enrichment programs to 
                assist Alaska Native students in performing at 
                a high level on standardized tests.
                    ``(J) Education and training of Alaska 
                Native students enrolled in a degree program 
                that will lead to certification or licensing as 
                teachers.
                    ``(K) Parenting education for parents and 
                caregivers of Alaska Native children to improve 
                parenting and caregiving skills (including 
                skills relating to discipline and cognitive 
                development), including parenting education 
                provided through in-home visitation of new 
                mothers.
                    ``(L) Cultural education programs operated 
                by the Alaska Native Heritage Center and 
                designed to share the Alaska Native culture 
                with students.
                    ``(M) A cultural exchange program operated 
                by the Alaska Humanities Forum and designed to 
                share Alaska Native culture with urban students 
                in a rural setting, which shall be known as the 
                Rose Cultural Exchange Program.
                    ``(N) Activities carried out through Even 
                Start programs carried out under subpart 3 of 
                part B of title I and Head Start programs 
                carried out under the Head Start Act, including 
                the training of teachers for programs described 
                in this subparagraph.
                    ``(O) Other early learning and preschool 
                programs.
                    ``(P) Dropout prevention programs such as 
                the Cook Inlet Tribal Council's Partners for 
                Success program.
                    ``(Q) An Alaska Initiative for Community 
                Engagement program.
                    ``(R) Career preparation activities to 
                enable Alaska Native children and adults to 
                prepare for meaningful employment, including 
                programs providing tech-prep, mentoring, 
                training, and apprenticeship activities.
                    ``(S) Provision of operational support and 
                purchasing of equipment, to develop regional 
                vocational schools in rural areas of Alaska, 
                including boarding schools, for Alaska Native 
                students in grades 9 through 12, or at higher 
                levels of education, to provide the students 
                with necessary resources to prepare for skilled 
                employment opportunities.
                    ``(T) Other activities, consistent with the 
                purposes of this part, to meet the educational 
                needs of Alaska Native children and adults.
            ``(3) Home instruction programs.--Home instruction 
        programs for Alaska Native preschool children carried 
        out under paragraph (2)(D) may include the following:
                    ``(A) Programs for parents and their 
                infants, from the prenatal period of the infant 
                through age 3.
                    ``(B) Preschool programs.
                    ``(C) Training, education, and support for 
                parents in such areas as reading readiness, 
                observation, story telling, and critical 
                thinking.
    ``(b) Limitation on Administrative Costs.--Not more than 5 
percent of funds provided to a grantee under this section for 
any fiscal year may be used for administrative purposes.
    ``(c) Priorities.--In awarding grants or contracts to carry 
out activities described in subsection (a)(2), except for 
activities listed in subsection (d)(2), the Secretary shall 
give priority to applications from Alaska Native regional 
nonprofit organizations, or consortia that include at least 1 
Alaska Native regional nonprofit organization.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to carry out this section such sums as may 
        be necessary for fiscal year 2002 and each of the 5 
        succeeding fiscal years.
            ``(2) Availability of funds.--Of the funds 
        appropriated and made available under this section for 
        a fiscal year, the Secretary shall make available--
                    ``(A) not less than $1,000,000 to support 
                activities described in subsection (a)(2)(K);
                    ``(B) not less than $1,000,000 to support 
                activities described in subsection (a)(2)(L);
                    ``(C) not less than $1,000,000 to support 
                activities described in subsection (a)(2)(M);
                    ``(D) not less than $2,000,000 to support 
                activities described in subsection (a)(2)(P); 
                and
                    ``(E) not less than $2,000,000 to support 
                activities described in subsection (a)(2)(Q).

``SEC. 7305. ADMINISTRATIVE PROVISIONS.

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

``SEC. 7306. DEFINITIONS.

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

SEC. 702. CONFORMING AMENDMENTS.

    (a) Higher Education Act of 1965.--Section 317(b) of the 
Higher Education Act of 1965 (20 U.S.C. 1059d(b)) is amended--
            (1) in paragraph (1), by striking ``section 9308'' 
        and inserting ``section 7306''; and
            (2) in paragraph (3), by striking ``section 9212'' 
        and inserting ``section 7207''.
    (b) Public Law 88-210.--Section 116 of Public Law 88-210 
(as added by section 1 of Public Law 105-332 (112 Stat. 3076)) 
is amended by striking ``section 9212 of the Native Hawaiian 
Education Act (20 U.S.C. 7912)'' and inserting ``section 7207 
of the Native Hawaiian Education Act''.
    (c) Carl D. Perkins Vocational and Technical Education Act 
of 1998.--Section 116(a)(5) of the Carl D. Perkins Vocational 
and Technical Education Act of 1998 (20 U.S.C. 2326(a)(5)) is 
amended by striking ``section 9212'' and all that follows and 
inserting ``section 7207 of the Native Hawaiian Education 
Act''.
    (d) Museum and Library Services Act.--Section 261 of the 
Museum and Library Services Act (20 U.S.C. 9161) is amended by 
striking ``section 9212 of the Native Hawaiian Education Act 
(20 U.S.C. 7912)'' and inserting ``section 7207 of the Native 
Hawaiian Education Act''.
    (e) Act of April 16, 1934.--Section 5 of the Act of April 
16, 1934 (commonly known as the ``Johnson-O'Malley Act'') (88 
Stat. 2213; 25 U.S.C. 456) is amended by striking ``section 
9104(c)(4)'' and inserting ``section 7114(c)(4)''.
    (f) Native American Languages Act.--Section 103 of the 
Native American Languages Act (25 U.S.C. 2902) is amended--
            (1) in paragraph (2), by striking ``section 9161(4) 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 7881(4))'' and inserting ``section 7151(3) 
        of the Elementary and Secondary Education Act of 
        1965''; and
            (2) in paragraph (3), by striking ``section 9212(1) 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 7912(1))'' and inserting ``section 7207 of 
        the Elementary and Secondary Education Act of 1965''.
    (g) Workforce Investment Act of 1998.--Section 166(b)(3) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) is 
amended by striking ``paragraphs (1) and (3), respectively, of 
section 9212 of the Native Hawaiian Education Act (20 U.S.C. 
7912)'' and inserting ``section 7207 of the Native Hawaiian 
Education Act''.
    (h) Assets for Independence Act.--Section 404(11) of the 
Assets for Independence Act (42 U.S.C. 604 note) is amended by 
striking ``section 9212 of the Native Hawaiian Education Act 
(20 U.S.C. 7912)'' and inserting ``section 7207 of the Native 
Hawaiian Education Act''.

SEC. 703. SAVINGS PROVISIONS.

    Funds appropriated for parts A, B, and C of title IX of the 
Elementary and Secondary Education Act of 1965 (as in effect on 
the day before the date of enactment of this Act) shall be 
available for use under parts A, B, and C, respectively, of 
title VII of such Act, as added by this section.

                     TITLE VIII--IMPACT AID PROGRAM

SEC. 801. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Foundation Payments for Pre-1995 Recipients.--Section 
8002(h)(1) (20 U.S.C. 7702(h)(1)) is amended--
            (1) in subparagraph (A), by striking ``and was 
        eligible to receive a payment under section 2 of the 
        Act of September 30, 1950'' and inserting ``and that 
        filed, or has been determined pursuant to statute to 
        have filed a timely application, and met, or has been 
        determined pursuant to statute to meet, the eligibility 
        requirements of section 2(a)(1)(C) of the Act of 
        September 30, 1950''; and
            (2) in subparagraph (B), by striking ``(or if the 
        local educational agency was not eligible to receive a 
        payment under such section 2 for fiscal year 1994'' and 
        inserting ``(or if the local educational agency did not 
        meet, or has not been determined pursuant to statute to 
        meet, the eligibility requirements of section 
        2(a)(1)(C) of the Act of September 30, 1950 for fiscal 
        year 1994''.
    (b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 
U.S.C. 7702(h)(2)) is amended--
            (1) in subparagraph (A), by adding at the end 
        before the period ``, or whose application under this 
        section for fiscal year 1995 was determined pursuant to 
        statute to be timely filed for purposes of payments for 
        subsequent fiscal years''; and
            (2) in subparagraph (B)(ii), by striking ``for each 
        local educational agency that received a payment under 
        this section for fiscal year 1995'' and inserting ``for 
        each local educational agency described in subparagraph 
        (A)''.
    (c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C. 
7702(h)(4)(B)) is amended--
            (1) by striking ``(in the same manner as percentage 
        shares are determined for local educational agencies 
        under paragraph (2)(B)(ii))'' and inserting ``(by 
        dividing the maximum amount that the agency is eligible 
        to receive under subsection (b) by the total of the 
        maximum amounts for all such agencies)''; and
            (2) by striking ``, except that for the purpose of 
        calculating a local educational agency's assessed value 
        of the Federal property'' and inserting ``, except 
        that, for the purpose of calculating a local 
        educational agency's maximum amount under subsection 
        (b)''.
    (d) Additional Assistance for Certain Local Educational 
Agencies Impacted by Federal Property Acquisition.--Section 
8002 (20 U.S.C. 7702) is amended by striking subsection (j).
    (e) Minimum Payment with Respect to Loss of Eligibility of 
Certain Local Educational Agencies.--Section 8002 (20 U.S.C. 
7702) is amended by adding at the end the following:
    ``(n) Loss of Eligibility.--
            ``(1) In general.--Notwithstanding any other 
        provision of this section, the Secretary shall make a 
        minimum payment to a local educational agency described 
        in paragraph (2), for the first fiscal year that the 
        agency loses eligibility for assistance under this 
        section as a result of property located within the 
        school district served by the agency failing to meet 
        the definition of Federal property under section 
        8013(5)(C)(iii), in an amount equal to 90 percent of 
        the amount received by the agency under this section 
        for the preceding year.
            ``(2) Local educational agency described.--A local 
        educational agency described in this paragraph is an 
        agency that--
                    ``(A) was eligible for, and received, a 
                payment under this section for fiscal year 
                2002; and
                    ``(B) beginning in fiscal year 2003 or a 
                subsequent fiscal year, is no longer eligible 
                for payments under this section as provided for 
                in subsection (a)(1)(C) as a result of the 
                transfer of the Federal property involved to a 
                non-Federal entity.''.
    (f) Application for Payment.--Notwithstanding any other 
provision of law, the Secretary shall treat as timely filed an 
application under section 8002 (20 U.S.C. 7702) from Academy 
School District 20, Colorado, for a payment for fiscal year 
1999, and shall process that application from funds 
appropriated for that section for fiscal year 2001.

SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    (a) Eligibility for Certain Heavily Impacted Local 
Educational Agencies.--
            (1) In general.--Section 8003(b)(2)(C) (20 U.S.C. 
        7703(b)(2)(C)) is amended--
                    (A) in clauses (i) and (ii), by inserting 
                after ``Federal military installation'' each 
                place it appears the following: ``(or if the 
                agency is a qualified local educational agency 
                as described in clause (iv))''; and
                    (B) by adding at the end the following:
                            ``(iv) Qualified local educational 
                        agency.--A qualified local educational 
                        agency described in this clause is an 
                        agency that meets the following 
                        requirements:
                                    ``(I) The boundaries of the 
                                agency are the same as island 
                                property designated by the 
                                Secretary of the Interior to be 
                                property that is held in trust 
                                by the Federal Government.
                                    ``(II) The agency has no 
                                taxing authority.
                                    ``(III) The agency received 
                                a payment under paragraph (1) 
                                for fiscal year 2001.''.
            (2) Effective date.--The Secretary shall consider 
        an application for a payment under section 8003(b)(2) 
        for fiscal year 2002 from a qualified local educational 
        agency described in section 8003(b)(2)(C)(iv), as added 
        by paragraph (1), as meeting the requirements of 
        section 8003(b)(2)(C)(iii), and shall provide a payment 
        under section 8003(b)(2) for fiscal year 2002, if the 
        agency submits to the Secretary an application for 
        payment under such section not later than 30 days after 
        the date of enactment of this Act.
    (b) Applications for Payment.--
            (1) Warner public schools, muskogee county, 
        oklahoma.--Notwithstanding any other provision of law, 
        the Secretary of Education shall treat as timely filed 
        an application under section 8003 (20 U.S.C. 7703) from 
        Warner Public Schools, Muskogee County, Oklahoma, for a 
        payment for fiscal year 2002, and shall process that 
        application for payment, if the Secretary has received 
        the fiscal year 2002 application not later than 30 days 
        after the date of enactment of this Act.
            (2) Pine point school, school district 25, 
        minnesota.--Notwithstanding any other provision of law, 
        the Secretary shall treat as timely filed an 
        application under section 8003 (20 U.S.C. 7703) from 
        Pine Point School, School District 25, Minnesota, for a 
        payment for fiscal year 2000, and shall process that 
        application for payment, if the Secretary has received 
        the fiscal year 2000 application not later than 30 days 
        after the date of enactment of this Act.

SEC. 803. CONSTRUCTION.

    Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as 
follows:
    ``(b) School Facility Emergency and Modernization Grants 
Authorized.--
            ``(1) In general.--From 60 percent of the amount 
        appropriated for each fiscal year under section 
        8014(e), the Secretary--
                    ``(A) shall award emergency grants in 
                accordance with this subsection to eligible 
                local educational agencies to enable the 
                agencies to carry out emergency repairs of 
                school facilities; and
                    ``(B) shall award modernization grants in 
                accordance with this subsection to eligible 
                local educational agencies to enable the 
                agencies to carry out the modernization of 
                school facilities.
            ``(2) Priority.--In approving applications from 
        local educational agencies for emergency grants and 
        modernization grants under this subsection, the 
        Secretary shall give priority to applications in 
        accordance with the following:
                    ``(A) The Secretary shall first give 
                priority to applications for emergency grants 
                from local educational agencies that meet the 
                requirements of paragraph (3)(A) and, among 
                such applications for emergency grants, shall 
                give priority to those applications of local 
                educational agencies based on the severity of 
                the emergency, as determined by the Secretary.
                    ``(B) The Secretary shall next give 
                priority to applications for emergency grants 
                from local educational agencies that meet the 
                requirements of subparagraph (C) or (D) of 
                paragraph (3) and, among such applications for 
                emergency grants, shall give priority to those 
                applications of local educational agencies 
                based on the severity of the emergency, as 
                determined by the Secretary.
                    ``(C) The Secretary shall next give 
                priority to applications for modernization 
                grants from local educational agencies that 
                meet the requirements of paragraph (3)(B) and, 
                among such applications for modernization 
                grants, shall give priority to those 
                applications of local educational agencies 
                based on the severity of the need for 
                modernization, as determined by the Secretary.
                    ``(D) The Secretary shall next give 
                priority to applications for modernization 
                grants from local educational agencies that 
                meet the requirements of subparagraph (C) or 
                (D) of paragraph (3) and, among such 
                applications for modernization grants, shall 
                give priority to those applications of local 
                educational agencies based on the severity of 
                the need for modernization, as determined by 
                the Secretary.
            ``(3) Eligibility requirements.--
                    ``(A) Emergency grants.--A local 
                educational agency is eligible to receive an 
                emergency grant under paragraph (2)(A) if--
                            ``(i) the agency (or in the case of 
                        a local educational agency that does 
                        not have the authority to tax or issue 
                        bonds, the agency's fiscal agent)--
                                    ``(I) has no practical 
                                capacity to issue bonds;
                                    ``(II) has minimal capacity 
                                to issue bonds and is at not 
                                less than 75 percent of the 
                                agency's limit of bonded 
                                indebtedness; or
                                    ``(III) does not meet the 
                                requirements of subclauses (I) 
                                and (II) but is eligible to 
                                receive funds under section 
                                8003(b)(2) for the fiscal year; 
                                and
                            ``(ii) the agency is eligible to 
                        receive assistance under subsection (a) 
                        for the fiscal year and has a school 
                        facility emergency, as determined by 
                        the Secretary, that poses a health or 
                        safety hazard to the students and 
                        school personnel assigned to the school 
                        facility.
                    ``(B) Modernization grants.--A local 
                educational agency is eligible to receive a 
                modernization grant under paragraph (2)(C) if--
                            ``(i) the agency is eligible to 
                        receive assistance under this title for 
                        the fiscal year;
                            ``(ii) the agency (or in the case 
                        of a local educational agency that does 
                        not have the authority to tax or issue 
                        bonds, the agency's fiscal agent) meets 
                        the requirements of subclause (I), 
                        (II), or (III) of subparagraph (A)(i); 
                        and
                            ``(iii) the agency has facility 
                        needs resulting from the presence of 
                        the Federal Government, such as the 
                        enrollment of federally connected 
                        children, the presence of tax-exempt 
                        Federal property, or an increase in 
                        enrollment due to the expansion of 
                        Federal activities, housing 
                        privatization, or the acquisition of 
                        Federal property.
                    ``(C) Additional eligibility for emergency 
                and modernization grants.--(i) A local 
                educational agency is eligible to receive an 
                emergency grant or a modernization grant under 
                subparagraph (B) or (D) of paragraph (2), 
                respectively, if the agency meets the following 
                requirements:
                            ``(I) The agency receives a basic 
                        support payment under section 8003(b) 
                        for the fiscal year and the agency 
                        meets at least one of the following 
                        requirements:
                                    ``(aa) The number of 
                                children determined under 
                                section 8003(a)(1)(C) for the 
                                agency for the preceding school 
                                year constituted at least 40 
                                percent of the total student 
                                enrollment in the schools of 
                                the agency during the preceding 
                                school year.
                                    ``(bb) The number of 
                                children determined under 
                                subparagraphs (B) and (D)(i) of 
                                section 8003(a)(1) for the 
                                agency for the preceding school 
                                year constituted at least 40 
                                percent of the total student 
                                enrollment in the schools of 
                                the agency during the preceding 
                                school year.
                            ``(II) The agency (or in the case 
                        of a local educational agency that does 
                        not have the authority to tax or issue 
                        bonds, the agency's fiscal agent) is at 
                        not less than 75 percent of the 
                        agency's limit of bonded indebtedness.
                            ``(III) The agency has an assessed 
                        value of real property per student that 
                        may be taxed for school purposes that 
                        is less than the average of the 
                        assessed value of real property per 
                        student that may be taxed for school 
                        purposes in the State in which the 
                        local educational agency is located.
                    ``(ii) A local educational agency is also 
                eligible to receive a modernization grant under 
                this subparagraph if the agency is eligible to 
                receive assistance under section 8002 for the 
                fiscal year and meets the requirements of 
                subclauses (II) and (III) of clause (i).
                    ``(D) Special rule.--
                            ``(i) In general.--Any school 
                        described in clause (ii) that desires 
                        to receive an emergency grant or a 
                        modernization grant under subparagraph 
                        (B) or (D) of paragraph (2), 
                        respectively, shall, except as provided 
                        in the following sentence, submit an 
                        application in accordance with 
                        paragraph (6), and shall otherwise be 
                        treated as a local educational agency 
                        for the purpose of this subsection. The 
                        school shall submit an application for 
                        the grant to the local educational 
                        agency of such school and the agency 
                        shall submit the application on behalf 
                        of the school to the Secretary.
                            ``(ii) School described.--A school 
                        described in this clause is a school 
                        that meets the following requirements:
                                    ``(I) The school is located 
                                within the geographic 
                                boundaries of a local 
                                educational agency that does 
                                not meet the applicable 
                                eligibility requirements under 
                                subparagraph (A), (B), or (C) 
                                for a grant under this 
                                subsection.
                                    ``(II) The school meets at 
                                least one of the following 
                                requirements:
                                            ``(aa) The number 
                                        of children determined 
                                        under section 
                                        8003(a)(1)(C) for the 
                                        school for the 
                                        preceding school year 
                                        constituted at least 40 
                                        percent of the total 
                                        student enrollment in 
                                        the school during the 
                                        preceding school year.
                                            ``(bb) The number 
                                        of children determined 
                                        under subparagraphs (B) 
                                        and (D)(i) of section 
                                        8003(a)(1) for the 
                                        school for the 
                                        preceding school year 
                                        constituted at least 40 
                                        percent of the total 
                                        student enrollment in 
                                        the school during the 
                                        preceding school year.
                                    ``(III) The school is 
                                located within the geographic 
                                boundaries of a local 
                                educational agency that meets 
                                the requirements of subclauses 
                                (II) and (III) of subparagraph 
                                (C)(i).
                    ``(E) Rule of construction.--For purposes 
                of subparagraph (A)(i), a local educational 
                agency--
                            ``(i) has no practical capacity to 
                        issue bonds if the total assessed value 
                        of real property that may be taxed for 
                        school purposes is less than 
                        $25,000,000; and
                            ``(ii) has minimal capacity to 
                        issue bonds if the total assessed value 
                        of real property that may be taxed for 
                        school purposes is at least $25,000,000 
                        but not more than $50,000,000.
            ``(4) Award criteria.--In awarding emergency grants 
        and modernization grants under this subsection, the 
        Secretary shall consider the following factors:
                    ``(A) The ability of the local educational 
                agency to respond to the emergency, or to pay 
                for the modernization project, as the case may 
                be, as measured by--
                            ``(i) the agency's level of bonded 
                        indebtedness;
                            ``(ii) the assessed value of real 
                        property per student that may be taxed 
                        for school purposes compared to the 
                        average of the assessed value of real 
                        property per student that may be taxed 
                        for school purposes in the State in 
                        which the agency is located;
                            ``(iii) the agency's total tax rate 
                        for school purposes (or, if applicable, 
                        for capital expenditures) compared to 
                        the average total tax rate for school 
                        purposes (or the average capital 
                        expenditure tax rate, if applicable) in 
                        the State in which the agency is 
                        located; and
                            ``(iv) funds that are available to 
                        the agency, from any other source, 
                        including subsection (a), that may be 
                        used for capital expenditures.
                    ``(B) The percentage of property in the 
                agency that is nontaxable due to the presence 
                of the Federal Government.
                    ``(C) The number and percentages of 
                children described in subparagraphs (A), (B), 
                (C), and (D) of section 8003(a)(1) served in 
                the school facility with the emergency or 
                served in the school facility proposed for 
                modernization, as the case may be.
                    ``(D) In the case of an emergency grant, 
                the severity of the emergency, as measured by 
                the threat that the condition of the school 
                facility poses to the health, safety, and well-
                being of students.
                    ``(E) In the case of a modernization 
                grant--
                            ``(i) the severity of the need for 
                        modernization, as measured by such 
                        factors as--
                                    ``(I) overcrowding, as 
                                evidenced by the use of 
                                portable classrooms, or the 
                                potential for future 
                                overcrowding because of 
                                increased enrollment; or
                                    ``(II) the agency's 
                                inability to utilize technology 
                                or offer a curriculum in 
                                accordance with contemporary 
                                State standards due to the 
                                physical limitations of the 
                                current school facility; and
                            ``(ii) the age of the school 
                        facility proposed for modernization.
            ``(5) Other award provisions.--
                    ``(A) General provisions.--
                            ``(i) Limitations on amount of 
                        funds.--
                                    ``(I) In general.--The 
                                amount of funds provided under 
                                an emergency grant or a 
                                modernization grant awarded 
                                under this subsection to a 
                                local educational agency that 
                                meets the requirements of 
                                subclause (II) or (III) of 
                                paragraph (3)(A)(i) for 
                                purposes of eligibility under 
                                subparagraph (A) or (B) of 
                                paragraph (3) or that meets the 
                                requirements of clause (i) or 
                                (ii) of paragraph (3)(C) for 
                                purposes of eligibility under 
                                such paragraph (3)(C), or to a 
                                school that is eligible under 
                                paragraph (3)(D)--
                                            ``(aa) shall not 
                                        exceed 50 percent of 
                                        the total cost of the 
                                        project to be assisted 
                                        under this subsection; 
                                        and
                                            ``(bb) shall not 
                                        exceed $4,000,000 
                                        during any 4-year 
                                        period.
                                    ``(II) In-kind 
                                contributions.--A local 
                                educational agency may use in-
                                kind contributions to meet the 
                                matching requirement of 
                                subclause (I)(aa).
                            ``(ii) Prohibitions on use of 
                        funds.--A local educational agency may 
                        not use funds provided under an 
                        emergency grant or modernization grant 
                        awarded under this subsection for--
                                    ``(I) a project for a 
                                school facility for which the 
                                agency does not have full title 
                                or other interest;
                                    ``(II) stadiums or other 
                                school facilities that are 
                                primarily used for athletic 
                                contests, exhibitions, or other 
                                events for which admission is 
                                charged to the general public; 
                                or
                                    ``(III) the acquisition of 
                                real property.
                            ``(iii) Supplement, not supplant.--
                        A local educational agency shall use 
                        funds provided under an emergency grant 
                        or modernization grant awarded under 
                        this subsection only to supplement the 
                        amount of funds that would, in the 
                        absence of the Federal funds provided 
                        under the grant, be made available from 
                        non-Federal sources to carry out 
                        emergency repairs of school facilities 
                        or to carry out the modernization of 
                        school facilities, as the case may be, 
                        and not to supplant such funds.
                            ``(iv) Maintenance costs.--Nothing 
                        in this subsection shall be construed 
                        to authorize the payment of maintenance 
                        costs in connection with any school 
                        facility modernized in whole or in part 
                        with Federal funds provided under this 
                        subsection.
                            ``(v) Environmental safeguards.--
                        All projects carried out with Federal 
                        funds provided under this subsection 
                        shall comply with all relevant Federal, 
                        State, and local environmental laws and 
                        regulations.
                            ``(vi) Carry-over of certain 
                        applications.--A local educational 
                        agency that applies for an emergency 
                        grant or a modernization grant under 
                        this subsection for a fiscal year and 
                        does not receive the grant for the 
                        fiscal year shall have the application 
                        for the grant considered for the 
                        following fiscal year, subject to the 
                        priority requirements of paragraph (2) 
                        and the award criteria requirements of 
                        paragraph (4).
                    ``(B) Emergency grants; prohibition on use 
                of funds.--A local educational agency that is 
                awarded an emergency grant under this 
                subsection may not use amounts under the grant 
                for the complete or partial replacement of an 
                existing school facility unless such 
                replacement is less expensive or more cost-
                effective than correcting the identified 
                emergency.
            ``(6) Application.--A local educational agency that 
        desires to receive an emergency grant or a 
        modernization grant under this subsection shall submit 
        an application to the Secretary at such time, in such 
        manner, and accompanied by such information as the 
        Secretary may require. Each application shall contain 
        the following:
                    ``(A) A description of how the local 
                educational agency meets the award criteria 
                under paragraph (4), including the information 
                described in clauses (i) through (iv) of 
                paragraph (4)(A) and subparagraphs (B) and (C) 
                of paragraph (4).
                    ``(B) In the case of an application for an 
                emergency grant--
                            ``(i) a description of the school 
                        facility deficiency that poses a health 
                        or safety hazard to the occupants of 
                        the facility and a description of how 
                        the deficiency will be repaired; and
                            ``(ii) a signed statement from an 
                        appropriate local official certifying 
                        that a deficiency in the school 
                        facility threatens the health or safety 
                        of the occupants of the facility or 
                        that prevents the use of all or a 
                        portion of the building.
                    ``(C) In the case of an application for a 
                modernization grant--
                            ``(i) an explanation of the need 
                        for the school facility modernization 
                        project;
                            ``(ii) the date on which original 
                        construction of the facility to be 
                        modernized was completed;
                            ``(iii) a listing of the school 
                        facilities to be modernized, including 
                        the number and percentage of children 
                        determined under section 8003(a)(1) in 
                        average daily attendance in each school 
                        facility; and
                            ``(iv) a description of the 
                        ownership of the property on which the 
                        current school facility is located or 
                        on which the planned school facility 
                        will be located.
                    ``(D) A description of the project for 
                which a grant under this subsection will be 
                used, including a cost estimate for the 
                project.
                    ``(E) A description of the interest in, or 
                authority over, the school facility involved, 
                such as an ownership interest or a lease 
                arrangement.
                    ``(F) Such other information and assurances 
                as the Secretary may reasonably require.
            ``(7) Report.--
                    ``(A) In general.--Not later than January 1 
                of each year, the Secretary shall prepare and 
                submit to the appropriate congressional 
                committees a report that contains a 
                justification for each grant awarded under this 
                subsection for the prior fiscal year.
                    ``(B) Definition.--In this paragraph, the 
                term `appropriate congressional committees' 
                means--
                            ``(i) the Committee on 
                        Appropriations and the Committee on 
                        Education and the Workforce of the 
                        House of Representatives; and
                            ``(ii) the Committee on 
                        Appropriations and the Committee on 
                        Health, Education, Labor, and Pensions 
                        of the Senate.''.

SEC. 804. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.

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

SEC. 805. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 8014 (20 U.S.C. 7714) is amended 
in subsections (a), (b), (c), and (f) by striking ``three 
succeeding fiscal years'' each place it appears and inserting 
``seven succeeding fiscal years''.
    (b) Construction.--Section 8014(e) (20 U.S.C. 7714(e)) is 
amended by striking ``for each of the three succeeding fiscal 
years'' and inserting ``for fiscal year 2001, $150,000,000 for 
fiscal year 2002, and such sums as may be necessary for each of 
the five succeeding fiscal years''.
    (c) Additional Assistance for Certain Local Educational 
Agencies Impacted by Federal Property Acquisition.--Section 
8014 (20 U.S.C. 7714) is amended by striking subsection (g).

                     ``TITLE IX--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

``SEC. 9101. DEFINITIONS.

    ``Except as otherwise provided, in this Act:
            ``(1) Average daily attendance.--
                    ``(A) In general.--Except as provided 
                otherwise by State law or this paragraph, the 
                term `average daily attendance' means--
                            ``(i) the aggregate number of days 
                        of attendance of all students during a 
                        school year; divided by
                            ``(ii) the number of days school is 
                        in session during that year.
                    ``(B) Conversion.--The Secretary shall 
                permit the conversion of average daily 
                membership (or other similar data) to average 
                daily attendance for local educational agencies 
                in States that provide State aid to local 
                educational agencies on the basis of average 
                daily membership (or other similar data).
                    ``(C) Special rule.--If the local 
                educational agency in which a child resides 
                makes a tuition or other payment for the free 
                public education of the child in a school 
                located in another school district, the 
                Secretary shall, for the purpose of this Act--
                            ``(i) consider the child to be in 
                        attendance at a school of the agency 
                        making the payment; and
                            ``(ii) not consider the child to be 
                        in attendance at a school of the agency 
                        receiving the payment.
                    ``(D) Children with disabilities.--If a 
                local educational agency makes a tuition 
                payment to a private school or to a public 
                school of another local educational agency for 
                a child with a disability, as defined in 
                section 602 of the Individuals with 
                Disabilities Education Act, the Secretary 
                shall, for the purpose of this Act, consider 
                the child to be in attendance at a school of 
                the agency making the payment.
            ``(2) Average per-pupil expenditure.--The term 
        `average per-pupil expenditure' means, in the case of a 
        State or of the United States--
                    ``(A) without regard to the source of 
                funds--
                            ``(i) the aggregate current 
                        expenditures, during the third fiscal 
                        year preceding the fiscal year for 
                        which the determination is made (or, if 
                        satisfactory data for that year are not 
                        available, during the most recent 
                        preceding fiscal year for which 
                        satisfactory data are available) of all 
                        local educational agencies in the State 
                        or, in the case of the United States, 
                        for all States (which, for the purpose 
                        of this paragraph, means the 50 States 
                        and the District of Columbia); plus
                            ``(ii) any direct current 
                        expenditures by the State for the 
                        operation of those agencies; divided by
                    ``(B) the aggregate number of children in 
                average daily attendance to whom those agencies 
                provided free public education during that 
                preceding year.
            ``(3) Beginning teacher.--The term `beginning 
        teacher' means a teacher in a public school who has 
        been teaching less than a total of 3 complete school 
        years.
            ``(4) Child.--The term `child' means any person 
        within the age limits for which the State provides free 
        public education.
            ``(5) Child with a disability.--The term `child 
        with a disability' has the same meaning given that term 
        in section 602 of the Individuals with Disabilities 
        Education Act.
            ``(6) Community-based organization.--The term 
        `community-based organization' means a public or 
        private nonprofit organization of demonstrated 
        effectiveness that--
                    ``(A) is representative of a community or 
                significant segments of a community; and
                    ``(B) provides educational or related 
                services to individuals in the community.
            ``(7) Consolidated local application.--The term 
        `consolidated local application' means an application 
        submitted by a local educational agency pursuant to 
        section 9305.
            ``(8) Consolidated local plan.--The term 
        `consolidated local plan' means a plan submitted by a 
        local educational agency pursuant to section 9305.
            ``(9) Consolidated state application.--The term 
        `consolidated State application' means an application 
        submitted by a State educational agency pursuant to 
        section 9302.
            ``(10) Consolidated state plan.--The term 
        `consolidated State plan' means a plan submitted by a 
        State educational agency pursuant to section 9302.
            ``(11) Core academic subjects.--The term `core 
        academic subjects' means English, reading or language 
        arts, mathematics, science, foreign languages, civics 
        and government, economics, arts, history, and 
        geography.
            ``(12) County.--The term `county' means one of the 
        divisions of a State used by the Secretary of Commerce 
        in compiling and reporting data regarding counties.
            ``(13) Covered program.--The term `covered program' 
        means each of the programs authorized by--
                    ``(A) part A of title I;
                    ``(B) subpart 3 of part B of title I;
                    ``(C) part C of title I;
                    ``(D) part D of title I;
                    ``(E) part F of title I;
                    ``(F) part A of title II;
                    ``(G) part D of title II;
                    ``(H) part A of title III;
                    ``(I) part A of title IV;
                    ``(J) part B of title IV;
                    ``(K) part A of title V; and
                    ``(L) subpart 2 of part B of title VI.
            ``(14) Current expenditures.--The term `current 
        expenditures' means expenditures for free public 
        education--
                    ``(A) including expenditures for 
                administration, instruction, attendance and 
                health services, pupil transportation services, 
                operation and maintenance of plant, fixed 
                charges, and net expenditures to cover deficits 
                for food services and student body activities; 
                but
                    ``(B) not including expenditures for 
                community services, capital outlay, and debt 
                service, or any expenditures made from funds 
                received under title I and part A of title V.
            ``(15) Department.--The term `Department' means the 
        Department of Education.
            ``(16) Distance learning.--The term `distance 
        learning' means the transmission of educational or 
        instructional programming to geographically dispersed 
        individuals and groups via telecommunications.
            ``(17) Educational service agency.--The term 
        `educational service agency' means a regional public 
        multiservice agency authorized by State statute to 
        develop, manage, and provide services or programs to 
        local educational agencies.
            ``(18) Elementary school.--The term `elementary 
        school' means a nonprofit institutional day or 
        residential school, including a public elementary 
        charter school, that provides elementary education, as 
        determined under State law.
            ``(19) Exemplary teacher.--The term `exemplary 
        teacher' means a teacher who--
                    (A) is a highly qualified teacher such as a 
                master teacher;
                    (B) has been teaching for at least 5 years 
                in a public or private school or institution of 
                higher education;
                    (C) is recommended to be an exemplary 
                teacher by administrators and other teachers 
                who are knowledgeable about the individual's 
                performance;
                    (D) is currently teaching and based in a 
                public school; and
                    (E) assists other teachers in improving 
                instructional strategies, improves the skills 
                of other teachers, performs teacher mentoring, 
                develops curricula, and offers other 
                professional development.
            ``(20) Family literacy services.--The term `family 
        literacy services' means services provided to 
        participants on a voluntary basis that are of 
        sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a 
        family, and that integrate all of the following 
        activities:
                    ``(A) Interactive literacy activities 
                between parents and their children.
                    ``(B) Training for parents regarding how to 
                be the primary teacher for their children and 
                full partners in the education of their 
                children.
                    ``(C) Parent literacy training that leads 
                to economic self-sufficiency.
                    ``(D) An age-appropriate education to 
                prepare children for success in school and life 
                experiences.
            ``(21) Free public education.--The term `free 
        public education' means education that is provided--
                    ``(A) at public expense, under public 
                supervision and direction, and without tuition 
                charge; and
                    ``(B) as elementary school or secondary 
                school education as determined under applicable 
                State law, except that the term does not 
                include any education provided beyond grade 12.
            ``(22) Gifted and talented.--The term `gifted and 
        talented', when used with respect to students, 
        children, or youth, means students, children, or youth 
        who give evidence of high achievement capability in 
        areas such as intellectual, creative, artistic, or 
        leadership capacity, or in specific academic fields, 
        and who need services or activities not ordinarily 
        provided by the school in order to fully develop those 
        capabilities.
            ``(23) Highly qualified.--The term `highly 
        qualified'--
                    ``(A) when used with respect to any public 
                elementary school or secondary school teacher 
                teaching in a State, means that--
                            ``(i) the teacher has obtained full 
                        State certification as a teacher 
                        (including certification obtained 
                        through alternative routes to 
                        certification) or passed the State 
                        teacher licensing examination, and 
                        holds a license to teach in such State, 
                        except that when used with respect to 
                        any teacher teaching in a public 
                        charter school, the term means that the 
                        teacher meets the requirements set 
                        forth in the State's public charter 
                        school law; and
                            ``(ii) the teacher has not had 
                        certification or licensure requirements 
                        waived on an emergency, temporary, or 
                        provisional basis;
                    ``(B) when used with respect to--
                            ``(i) an elementary school teacher 
                        who is new to the profession, means 
                        that the teacher--
                                    ``(I) holds at least a 
                                bachelor's degree; and
                                    ``(II) has demonstrated, by 
                                passing a rigorous State test, 
                                subject knowledge and teaching 
                                skills in reading, writing, 
                                mathematics, and other areas of 
                                the basic elementary school 
                                curriculum (which may consist 
                                of passing a State-required 
                                certification or licensing test 
                                or tests in reading, writing, 
                                mathematics, and other areas of 
                                the basic elementary school 
                                curriculum); or
                            ``(ii) a middle or secondary school 
                        teacher who is new to the profession, 
                        means that the teacher holds at least a 
                        bachelor's degree and has demonstrated 
                        a high level of competency in each of 
                        the academic subjects in which the 
                        teacher teaches by--
                                    ``(I) passing a rigorous 
                                State academic subject test in 
                                each of the academic subjects 
                                in which the teacher teaches 
                                (which may consist of a passing 
                                level of performance on a 
                                State-required certification or 
                                licensing test or tests in each 
                                of the academic subjects in 
                                which the teacher teaches); or
                                    ``(II) successful 
                                completion, in each of the 
                                academic subjects in which the 
                                teacher teaches, of an academic 
                                major, a graduate degree, 
                                coursework equivalent to an 
                                undergraduate academic major, 
                                or advanced certification or 
                                credentialing; and
                    ``(C) when used with respect to an 
                elementary, middle, or secondary school teacher 
                who is not new to the profession, means that 
                the teacher holds at least a bachelor's degree 
                and--
                            ``(i) has met the applicable 
                        standard in clause (i) or (ii) of 
                        subparagraph (B), which includes an 
                        option for a test; or
                            ``(ii) demonstrates competence in 
                        all the academic subjects in which the 
                        teacher teaches based on a high 
                        objective uniform State standard of 
                        evaluation that--
                                    ``(I) is set by the State 
                                for both grade appropriate 
                                academic subject matter 
                                knowledge and teaching skills;
                                    ``(II) is aligned with 
                                challenging State academic 
                                content and student academic 
                                achievement standards and 
                                developed in consultation with 
                                core content specialists, 
                                teachers, principals, and 
                                school administrators;
                                    ``(III) provides objective, 
                                coherent information about the 
                                teacher's attainment of core 
                                content knowledge in the 
                                academic subjects in which a 
                                teacher teaches;
                                    ``(IV) is applied uniformly 
                                to all teachers in the same 
                                academic subject and the same 
                                grade level throughout the 
                                State;
                                    ``(V) takes into 
                                consideration, but not be based 
                                primarily on, the time the 
                                teacher has been teaching in 
                                the academic subject;
                                    ``(VI) is made available to 
                                the public upon request; and
                                    ``(VII) may involve 
                                multiple, objective measures of 
                                teacher competency.
            ``(24) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        that term in section 101(a) of the Higher Education Act 
        of 1965.
            ``(25) Limited english proficient.--The term 
        `limited English proficient', when used with respect to 
        an individual, means an individual--
                    ``(A) who is aged 3 through 21;
                    ``(B) who is enrolled or preparing to 
                enroll in an elementary school or secondary 
                school;
                    ``(C)(i) who was not born in the United 
                States or whose native language is a language 
                other than English;
                    ``(ii)(I) who is a Native American or 
                Alaska Native, or a native resident of the 
                outlying areas; and
                    ``(II) who comes from an environment where 
                a language other than English has had a 
                significant impact on the individual's level of 
                English language proficiency; or
                    ``(iii) who is migratory, whose native 
                language is a language other than English, and 
                who comes from an environment where a language 
                other than English is dominant; and
                    ``(D) whose difficulties in speaking, 
                reading, writing, or understanding the English 
                language may be sufficient to deny the 
                individual--
                            ``(i) the ability to meet the 
                        State's proficient level of achievement 
                        on State assessments described in 
                        section 1111(b)(3);
                            ``(ii) the ability to successfully 
                        achieve in classrooms where the 
                        language of instruction is English; or
                            ``(iii) the opportunity to 
                        participate fully in society.
            ``(26) Local educational agency.--
                    ``(A) In general.--The term `local 
                educational agency' means a public board of 
                education or other public authority legally 
                constituted within a State for either 
                administrative control or direction of, or to 
                perform a service function for, public 
                elementary schools or secondary schools in a 
                city, county, township, school district, or 
                other political subdivision of a State, or of 
                or for a combination of school districts or 
                counties that is recognized in a State as an 
                administrative agency for its public elementary 
                schools or secondary schools.
                    ``(B) Administrative control and 
                direction.--The term includes any other public 
                institution or agency having administrative 
                control and direction of a public elementary 
                school or secondary school.
                    ``(C) BIA schools.--The term includes an 
                elementary school or secondary school funded by 
                the Bureau of Indian Affairs but only to the 
                extent that including the school makes the 
                school eligible for programs for which specific 
                eligibility is not provided to the school in 
                another provision of law and the school does 
                not have a student population that is smaller 
                than the student population of the local 
                educational agency receiving assistance under 
                this Act with the smallest student population, 
                except that the school shall not be subject to 
                the jurisdiction of any State educational 
                agency other than the Bureau of Indian Affairs.
                    ``(D) Educational service agencies.--The 
                term includes educational service agencies and 
                consortia of those agencies.
                    ``(E) State educational agency.--The term 
                includes the State educational agency in a 
                State in which the State educational agency is 
                the sole educational agency for all public 
                schools.
            ``(27) Mentoring.--The term `mentoring', except 
        when used to refer to teacher mentoring, means a 
        process by which a responsible adult, postsecondary 
        student, or secondary school student works with a child 
        to provide a positive role model for the child, to 
        establish a supportive relationship with the child, and 
        to provide the child with academic assistance and 
        exposure to new experiences and examples of opportunity 
        that enhance the ability of the child to become a 
        responsible adult.
            ``(28) Native american and native american 
        language.--The terms `Native American' and `Native 
        American language' have the same meaning given those 
        terms in section 103 of the Native American Languages 
        Act of 1990.
            ``(29) Other staff.--The term `other staff' means 
        pupil services personnel, librarians, career guidance 
        and counseling personnel, education aides, and other 
        instructional and administrative personnel.
            ``(30) Outlying area.--The term `outlying area' 
        means the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana 
        Islands, and for the purpose of section 1121(b) and any 
        other discretionary grant program under this Act, 
        includes the freely associated states of the Republic 
        of the Marshall Islands, the Federated States of 
        Micronesia, and the Republic of Palau until an 
        agreement for the extension of United States education 
        assistance under the Compact of Free Association for 
        each of the freely associated states becomes effective 
        after the date of enactment of the No Child Left Behind 
        Act of 2001.
            ``(31) Parent.--The term `parent' includes a legal 
        guardian or other person standing in loco parentis 
        (such as a grandparent or stepparent with whom the 
        child lives, or a person who is legally responsible for 
        the child's welfare).
            ``(32) Parental involvement.--The term `parental 
        involvement' means the participation of parents in 
        regular, two-way, and meaningful communication 
        involving student academic learning and other school 
        activities, including ensuring--
                    ``(A) that parents play an integral role in 
                assisting their child's learning;
                    ``(B) that parents are encouraged to be 
                actively involved in their child's education at 
                school;
                    ``(C) that parents are full partners in 
                their child's education and are included, as 
                appropriate, in decisionmaking and on advisory 
                committees to assist in the education of their 
                child;
                    ``(D) the carrying out of other activities, 
                such as those described in section 1118.
            ``(33) Poverty line.--The term `poverty line' means 
        the poverty line (as defined by the Office of 
        Management and Budget and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act) applicable to a family of the 
        size involved.
            ``(34) Professional development.--The term 
        `professional development'--
                    ``(A) includes activities that--
                            ``(i) improve and increase 
                        teachers' knowledge of the academic 
                        subjects the teachers teach, and enable 
                        teachers to become highly qualified;
                            ``(ii) are an integral part of 
                        broad schoolwide and districtwide 
                        educational improvement plans;
                            ``(iii) give teachers, principals, 
                        and administrators the knowledge and 
                        skills to provide students with the 
                        opportunity to meet challenging State 
                        academic content standards and student 
                        academic achievement standards;
                            ``(iv) improve classroom management 
                        skills;
                            ``(v)(I) are high quality, 
                        sustained, intensive, and classroom-
                        focused in order to have a positive and 
                        lasting impact on classroom instruction 
                        and the teacher's performance in the 
                        classroom; and
                            ``(II) are not 1-day or short-term 
                        workshops or conferences;
                            ``(vi) support the recruiting, 
                        hiring, and training of highly 
                        qualified teachers, including teachers 
                        who became highly qualified through 
                        State and local alternative routes to 
                        certification;
                            ``(vii) advance teacher 
                        understanding of effective 
                        instructional strategies that are--
                                    ``(I) based on 
                                scientifically based research 
                                (except that this subclause 
                                shall not apply to activities 
                                carried out under part D of 
                                title II); and
                                    ``(II) strategies for 
                                improving student academic 
                                achievement or substantially 
                                increasing the knowledge and 
                                teaching skills of teachers; 
                                and
                            ``(viii) are aligned with and 
                        directly related to--
                                    ``(I) State academic 
                                content standards, student 
                                academic achievement standards, 
                                and assessments; and
                                    ``(II) the curricula and 
                                programs tied to the standards 
                                described in subclause (I) 
                                except that this subclause 
                                shall not apply to activities 
                                described in clauses (ii) and 
                                (iii) of section 2123(3)(B);
                            ``(ix) are developed with extensive 
                        participation of teachers, principals, 
                        parents, and administrators of schools 
                        to be served under this Act;
                            ``(x) are designed to give teachers 
                        of limited English proficient children, 
                        and other teachers and instructional 
                        staff, the knowledge and skills to 
                        provide instruction and appropriate 
                        language and academic support services 
                        to those children, including the 
                        appropriate use of curricula and 
                        assessments;
                            ``(xi) to the extent appropriate, 
                        provide training for teachers and 
                        principals in the use of technology so 
                        that technology and technology 
                        applications are effectively used in 
                        the classroom to improve teaching and 
                        learning in the curricula and core 
                        academic subjects in which the teachers 
                        teach;
                            ``(xii) as a whole, are regularly 
                        evaluated for their impact on increased 
                        teacher effectiveness and improved 
                        student academic achievement, with the 
                        findings of the evaluations used to 
                        improve the quality of professional 
                        development;
                            ``(xiii) provide instruction in 
                        methods of teaching children with 
                        special needs;
                            ``(xiv) include instruction in the 
                        use of data and assessments to inform 
                        and instruct classroom practice; and
                            ``(xv) include instruction in ways 
                        that teachers, principals, pupil 
                        services personnel, and school 
                        administrators may work more 
                        effectively with parents; and
                    ``(B) may include activities that--
                            ``(i) involve the forming of 
                        partnerships with institutions of 
                        higher education to establish school-
                        based teacher training programs that 
                        provide prospective teachers and 
                        beginning teachers with an opportunity 
                        to work under the guidance of 
                        experienced teachers and college 
                        faculty;
                            ``(ii) create programs to enable 
                        paraprofessionals (assisting teachers 
                        employed by a local educational agency 
                        receiving assistance under part A of 
                        title I) to obtain the education 
                        necessary for those paraprofessionals 
                        to become certified and licensed 
                        teachers; and
                            ``(iii) provide follow-up training 
                        to teachers who have participated in 
                        activities described in subparagraph 
                        (A) or another clause of this 
                        subparagraph that are designed to 
                        ensure that the knowledge and skills 
                        learned by the teachers are implemented 
                        in the classroom.
            ``(35) Public telecommunications entity.--The term 
        `public telecommunications entity' has the meaning 
        given that term in section 397(12) of the 
        Communications Act of 1934.
            ``(36) Pupil services personnel; pupil services.--
                    ``(A) Pupil services personnel.--The term 
                `pupil services personnel' means school 
                counselors, school social workers, school 
                psychologists, and other qualified professional 
                personnel involved in providing assessment, 
                diagnosis, counseling, educational, 
                therapeutic, and other necessary services 
                (including related services as that term is 
                defined in section 602 of the Individuals with 
                Disabilities Education Act) as part of a 
                comprehensive program to meet student needs.
                    ``(B) Pupil services.--The term `pupil 
                services' means the services provided by pupil 
                services personnel.
            ``(37) Scientifically based research.--The term 
        `scientifically based research'--
                    ``(A) means research that involves the 
                application of rigorous, systematic, and 
                objective procedures to obtain reliable and 
                valid knowledge relevant to education 
                activities and programs; and
                    ``(B) includes research that--
                            ``(i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                            ``(ii) involves rigorous data 
                        analyses that are adequate to test the 
                        stated hypotheses and justify the 
                        general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide 
                        reliable and valid data across 
                        evaluators and observers, across 
                        multiple measurements and observations, 
                        and across studies by the same or 
                        different investigators;
                            ``(iv) is evaluated using 
                        experimental or quasi-experimental 
                        designs in which individuals, entities, 
                        programs, or activities are assigned to 
                        different conditions and with 
                        appropriate controls to evaluate the 
                        effects of the condition of interest, 
                        with a preference for random-assignment 
                        experiments, or other designs to the 
                        extent that those designs contain 
                        within-condition or across-condition 
                        controls;
                            ``(v) ensures that experimental 
                        studies are presented in sufficient 
                        detail and clarity to allow for 
                        replication or, at a minimum, offer the 
                        opportunity to build systematically on 
                        their findings; and
                            ``(vi) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.
            ``(38) Secondary school.--The term `secondary 
        school' means a nonprofit institutional day or 
        residential school, including a public secondary 
        charter school, that provides secondary education, as 
        determined under State law, except that the term does 
        not include any education beyond grade 12.
            ``(39) Secretary.--The term `Secretary' means the 
        Secretary of Education.
            ``(40) State.--The term `State' means each of the 
        50 States, the District of Columbia, the Commonwealth 
        of Puerto Rico, and each of the outlying areas.
            ``(41) State educational agency.--The term `State 
        educational agency' means the agency primarily 
        responsible for the State supervision of public 
        elementary schools and secondary schools.
            ``(42) Teacher mentoring.--The term `teacher 
        mentoring' means activities that--
                    ``(A) consist of structured guidance and 
                regular and ongoing support for teachers, 
                especially beginning teachers, that--
                            ``(i) are designed to help the 
                        teachers continue to improve their 
                        practice of teaching and to develop 
                        their instructional skills; and
                            ``(ii) as part of an ongoing 
                        developmental induction process--
                                    ``(I) involve the 
                                assistance of an exemplary 
                                teacher and other appropriate 
                                individuals from a school, 
                                local educational agency, or 
                                institution of higher 
                                education; and
                                    ``(II) may include 
                                coaching, classroom 
                                observation, team teaching, and 
                                reduced teaching loads; and
                    ``(B) may include the establishment of a 
                partnership by a local educational agency with 
                an institution of higher education, another 
                local educational agency, a teacher 
                organization, or another organization.
            ``(43) Technology.--The term `technology' means 
        state-of-the-art technology products and services.

``SEC. 9102. APPLICABILITY OF TITLE.

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

``SEC. 9103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED 
                    SCHOOLS.

    ``For the purpose of any competitive program under this 
Act--
            ``(1) a consortium of schools operated by the 
        Bureau of Indian Affairs;
            ``(2) a school operated under a contract or grant 
        with the Bureau of Indian Affairs in consortium with 
        another contract or grant school or a tribal or 
        community organization; or
            ``(3) a Bureau of Indian Affairs school in 
        consortium with an institution of higher education, a 
        contract or grant school, or a tribal or community 
        organization,
shall be given the same consideration as a local educational 
agency.

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

``SEC. 9201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR ELEMENTARY 
                    AND SECONDARY EDUCATION PROGRAMS.

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

``SEC. 9202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

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

``SEC. 9203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

    ``(a) General Authority.--In accordance with regulations of 
the Secretary and for any fiscal year, a local educational 
agency, with the approval of its State educational agency, may 
consolidate and use for the administration of one or more 
programs under this Act (or such other programs as the 
Secretary shall designate) not more than the percentage, 
established in each program, of the total available for the 
local educational agency under those programs.
    ``(b) State Procedures.--Within 1 year after the date of 
enactment of the No Child Left Behind Act of 2001, a State 
educational agency shall, in collaboration with local 
educational agencies in the State, establish procedures for 
responding to requests from local educational agencies to 
consolidate administrative funds under subsection (a) and for 
establishing limitations on the amount of funds under those 
programs that may be used for administration on a consolidated 
basis.
    ``(c) Conditions.--A local educational agency that 
consolidates administrative funds under this section for any 
fiscal year shall not use any other funds under the programs 
included in the consolidation for administration for that 
fiscal year.
    ``(d) Uses of Administrative Funds.--A local educational 
agency that consolidates administrative funds under this 
section may use the consolidated funds for the administration 
of the programs and for uses, at the school district and school 
levels, comparable to those described in section 9201(b)(2).
    ``(e) Records.--A local educational agency that 
consolidates administrative funds under this section shall not 
be required to keep separate records, by individual program, to 
account for costs relating to the administration of the 
programs included in the consolidation.

``SEC. 9204. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR 
                    FUNDS.

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

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

``SEC. 9301. PURPOSE.

    ``The purposes of this part are--
            ``(1) to improve teaching and learning by 
        encouraging greater cross-program coordination, 
        planning, and service delivery;
            ``(2) to provide greater flexibility to State and 
        local authorities through consolidated plans, 
        applications, and reporting; and
            ``(3) to enhance the integration of programs under 
        this Act with State and local programs.

``SEC. 9302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

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

``SEC. 9303. CONSOLIDATED REPORTING.

    ``(a) In General.--In order to simplify reporting 
requirements and reduce reporting burdens, the Secretary shall 
establish procedures and criteria under which a State 
educational agency, in consultation with the Governor of the 
State, may submit a consolidated State annual report.
    ``(b) Contents.--The report shall contain information about 
the programs included in the report, including the performance 
of the State under those programs, and other matters as the 
Secretary determines are necessary, such as monitoring 
activities.
    ``(c) Replacement.--The report shall replace separate 
individual annual reports for the programs included in the 
consolidated State annual report.

``SEC. 9304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
                    ASSURANCES.

    ``(a) Assurances.--A State educational agency, in 
consultation with the Governor of the State, that submits a 
consolidated State plan or consolidated State application under 
this Act, whether separately or under section 9302, shall have 
on file with the Secretary a single set of assurances, 
applicable to each program for which the plan or application is 
submitted, that provides that--
            ``(1) each such program will be administered in 
        accordance with all applicable statutes, regulations, 
        program plans, and applications;
            ``(2)(A) the control of funds provided under each 
        such program and title to property acquired with 
        program funds will be in a public agency, a nonprofit 
        private agency, institution, or organization, or an 
        Indian tribe, if the law authorizing the program 
        provides for assistance to those entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will 
        administer those funds and property to the extent 
        required by the authorizing law;
            ``(3) the State will adopt and use proper methods 
        of administering each such program, including--
                    ``(A) the enforcement of any obligations 
                imposed by law on agencies, institutions, 
                organizations, and other recipients responsible 
                for carrying out each program;
                    ``(B) the correction of deficiencies in 
                program operations that are identified through 
                audits, monitoring, or evaluation; and
                    ``(C) the adoption of written procedures 
                for the receipt and resolution of complaints 
                alleging violations of law in the 
                administration of the programs;
            ``(4) the State will cooperate in carrying out any 
        evaluation of each such program conducted by or for the 
        Secretary or other Federal officials;
            ``(5) the State will use such fiscal control and 
        fund accounting procedures as will ensure proper 
        disbursement of, and accounting for, Federal funds paid 
        to the State under each such program;
            ``(6) the State will--
                    ``(A) make reports to the Secretary as may 
                be necessary to enable the Secretary to perform 
                the Secretary's duties under each such program; 
                and
                    ``(B) maintain such records, provide such 
                information to the Secretary, and afford such 
                access to the records as the Secretary may find 
                necessary to carry out the Secretary's duties; 
                and
            ``(7) before the plan or application was submitted 
        to the Secretary, the State afforded a reasonable 
        opportunity for public comment on the plan or 
        application and considered such comment.
    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 9305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

    ``(a) General Authority.--
            ``(1) Consolidated plan.--A local educational 
        agency receiving funds under more than one covered 
        program may submit plans or applications to the State 
        educational agency under those programs on a 
        consolidated basis.
            ``(2) Availability to governor.--The State 
        educational agency shall make any consolidated local 
        plans and applications available to the Governor.
    ``(b) Required Consolidated Plans or Applications.--A State 
educational agency that has an approved consolidated State plan 
or application under section 9302 may require local educational 
agencies in the State receiving funds under more than one 
program included in the consolidated State plan or consolidated 
State application to submit consolidated local plans or 
applications under those programs, but may not require those 
agencies to submit separate plans.
    ``(c) Collaboration.--A State educational agency, in 
consultation with the Governor, shall collaborate with local 
educational agencies in the State in establishing procedures 
for the submission of the consolidated State plans or 
consolidated State applications under this section.
    ``(d) Necessary Materials.--The State educational agency 
shall require only descriptions, information, assurances, and 
other material that are absolutely necessary for the 
consideration of the local educational agency plan or 
application.

``SEC. 9306. OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant, other than a State 
educational agency that submits a plan or application under 
this Act, whether separately or pursuant to section 9305, shall 
have on file with the State educational agency a single set of 
assurances, applicable to each program for which a plan or 
application is submitted, that provides that--
            ``(1) each such program will be administered in 
        accordance with all applicable statutes, regulations, 
        program plans, and applications;
            ``(2)(A) the control of funds provided under each 
        such program and title to property acquired with 
        program funds will be in a public agency or in a 
        nonprofit private agency, institution, organization, or 
        Indian tribe, if the law authorizing the program 
        provides for assistance to those entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will 
        administer the funds and property to the extent 
        required by the authorizing statutes;
            ``(3) the applicant will adopt and use proper 
        methods of administering each such program, including--
                    ``(A) the enforcement of any obligations 
                imposed by law on agencies, institutions, 
                organizations, and other recipients responsible 
                for carrying out each program; and
                    ``(B) the correction of deficiencies in 
                program operations that are identified through 
                audits, monitoring, or evaluation;
            ``(4) the applicant will cooperate in carrying out 
        any evaluation of each such program conducted by or for 
        the State educational agency, the Secretary, or other 
        Federal officials;
            ``(5) the applicant will use such fiscal control 
        and fund accounting procedures as will ensure proper 
        disbursement of, and accounting for, Federal funds paid 
        to the applicant under each such program;
            ``(6) the applicant will--
                    ``(A) submit such reports to the State 
                educational agency (which shall make the 
                reports available to the Governor) and the 
                Secretary as the State educational agency and 
                Secretary may require to enable the State 
                educational agency and the Secretary to perform 
                their duties under each such program; and
                    ``(B) maintain such records, provide such 
                information, and afford such access to the 
                records as the State educational agency (after 
                consultation with the Governor) or the 
                Secretary may reasonably require to carry out 
                the State educational agency's or the 
                Secretary's duties; and
            ``(7) before the application was submitted, the 
        applicant afforded a reasonable opportunity for public 
        comment on the application and considered such comment.
    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act shall not apply to programs under this Act.

                           ``PART D--WAIVERS

``SEC. 9401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), 
the Secretary may waive any statutory or regulatory requirement 
of this Act for a State educational agency, local educational 
agency, Indian tribe, or school through a local educational 
agency, that--
            ``(1) receives funds under a program authorized by 
        this Act; and
            ``(2) requests a waiver under subsection (b).
    ``(b) Request for Waiver.--
            ``(1) In general.--A State educational agency, 
        local educational agency, or Indian tribe that desires 
        a waiver shall submit a waiver request to the Secretary 
        that--
                    ``(A) identifies the Federal programs 
                affected by the requested waiver;
                    ``(B) describes which Federal statutory or 
                regulatory requirements are to be waived and 
                how the waiving of those requirements will--
                            ``(i) increase the quality of 
                        instruction for students; and
                            ``(ii) improve the academic 
                        achievement of students;
                    ``(C) describes, for each school year, 
                specific, measurable educational goals, in 
                accordance with section 1111(b), for the State 
                educational agency and for each local 
                educational agency, Indian tribe, or school 
                that would be affected by the waiver and the 
                methods to be used to measure annually such 
                progress for meeting such goals and outcomes;
                    ``(D) explains how the waiver will assist 
                the State educational agency and each affected 
                local educational agency, Indian tribe, or 
                school in reaching those goals; and
                    ``(E) describes how schools will continue 
                to provide assistance to the same populations 
                served by programs for which waivers are 
                requested.
            ``(2) Additional information.--Such requests--
                    ``(A) may provide for waivers of 
                requirements applicable to State educational 
                agencies, local educational agencies, Indian 
                tribes, and schools; and
                    ``(B) shall be developed and submitted--
                            ``(i)(I) by local educational 
                        agencies (on behalf of those agencies 
                        and schools) to State educational 
                        agencies; and
                            ``(II) by State educational 
                        agencies (on behalf of, and based on 
                        the requests of, local educational 
                        agencies) to the Secretary; or
                            ``(ii) by Indian tribes (on behalf 
                        of schools operated by the tribes) to 
                        the Secretary.
            ``(3) General requirements.--
                    ``(A) State educational agencies.--In the 
                case of a waiver request submitted by a State 
                educational agency acting on its own behalf, 
                the State educational agency shall--
                            ``(i) provide all interested local 
                        educational agencies in the State with 
                        notice and a reasonable opportunity to 
                        comment on the request;
                            ``(ii) submit the comments to the 
                        Secretary; and
                            ``(iii) provide notice and 
                        information to the public regarding the 
                        waiver request in the manner in which 
                        the applying agency customarily 
                        provides similar notices and 
                        information to the public.
                    ``(B) Local educational agencies.--In the 
                case of a waiver request submitted by a local 
                educational agency that receives funds under 
                this Act--
                            ``(i) the request shall be reviewed 
                        by the State educational agency and be 
                        accompanied by the comments, if any, of 
                        the State educational agency; and
                            ``(ii) notice and information 
                        regarding the waiver request shall be 
                        provided to the public by the agency 
                        requesting the waiver in the manner in 
                        which that agency customarily provides 
                        similar notices and information to the 
                        public.
    ``(c) Restrictions.--The Secretary shall not waive under 
this section any statutory or regulatory requirements relating 
to--
            ``(1) the allocation or distribution of funds to 
        States, local educational agencies, or other recipients 
        of funds under this Act;
            ``(2) maintenance of effort;
            ``(3) comparability of services;
            ``(4) use of Federal funds to supplement, not 
        supplant, non-Federal funds;
            ``(5) equitable participation of private school 
        students and teachers;
            ``(6) parental participation and involvement;
            ``(7) applicable civil rights requirements;
            ``(8) the requirement for a charter school under 
        subpart 1 of part B of title V;
            ``(9) the prohibitions regarding--
                    ``(A) State aid in section 9522;
                    ``(B) use of funds for religious worship or 
                instruction in section 9505; and
                    ``(C) activities in section 9526; or
            ``(10) the selection of a school attendance area or 
        school under subsections (a) and (b) of section 1113, 
        except that the Secretary may grant a waiver to allow a 
        school attendance area or school to participate in 
        activities under part A of title I if the percentage of 
        children from low-income families in the school 
        attendance area or who attend the school is not more 
        than 10 percentage points below the lowest percentage 
        of those children for any school attendance area or 
        school of the local educational agency that meets the 
        requirements of subsections (a) and (b) of section 
        1113.
    ``(d) Duration and Extension of Waiver.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a waiver approved by the Secretary under this 
        section may be for a period not to exceed 4 years.
            ``(2) Extension.--The Secretary may extend the 
        period described in paragraph (1) if the Secretary 
        determines that--
                    ``(A) the waiver has been effective in 
                enabling the State or affected recipient to 
                carry out the activities for which the waiver 
                was requested and the waiver has contributed to 
                improved student achievement; and
                    `(B) the extension is in the public 
                interest.
    ``(e) Reports.--
            ``(1) Local waiver.--A local educational agency 
        that receives a waiver under this section shall, at the 
        end of the second year for which a waiver is received 
        under this section and each subsequent year, submit a 
        report to the State educational agency that--
                    ``(A) describes the uses of the waiver by 
                the agency or by schools;
                    ``(B) describes how schools continued to 
                provide assistance to the same populations 
                served by the programs for which waivers were 
                granted; and
                    ``(C) evaluates the progress of the agency 
                and of schools in improving the quality of 
                instruction or the academic achievement of 
                students.
            ``(2) State waiver.--A State educational agency 
        that receives reports required under paragraph (1) 
        shall annually submit a report to the Secretary that is 
        based on those reports and contains such information as 
        the Secretary may require.
            ``(3) Indian tribe waiver.--An Indian tribe that 
        receives a waiver under this section shall annually 
        submit a report to the Secretary that--
                    ``(A) describes the uses of the waiver by 
                schools operated by the tribe; and
                    ``(B) evaluates the progress of those 
                schools in improving the quality of instruction 
                or the academic achievement of students.
            ``(4) Report to congress.--Beginning in fiscal year 
        2002 and for each subsequent year, the Secretary shall 
        submit to the Committee on Education and the Workforce 
        of the House of Representatives and the Committee on 
        Health, Education, Labor and Pensions of the Senate a 
        report--
                    ``(A) summarizing the uses of waivers by 
                State educational agencies, local educational 
                agencies, Indian tribes, and schools; and
                    ``(B) describing whether the waivers--
                            ``(i) increased the quality of 
                        instruction to students; or
                            ``(ii) improved the academic 
                        achievement of students.
    ``(f) Termination of Waivers.--The Secretary shall 
terminate a waiver under this section if the Secretary 
determines, after notice and an opportunity for a hearing, that 
the performance of the State or other recipient affected by the 
waiver has been inadequate to justify a continuation of the 
waiver or if the waiver is no longer necessary to achieve its 
original purposes.
    ``(g) Publication.--A notice of the Secretary's decision to 
grant each waiver under subsection (a) shall be published in 
the Federal Register and the Secretary shall provide for the 
dissemination of the notice to State educational agencies, 
interested parties, including educators, parents, students, 
advocacy and civil rights organizations, and the public.

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

``SEC. 9501. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``(a) Private School Participation.--
            ``(1) In general.--Except as otherwise provided in 
        this Act, to the extent consistent with the number of 
        eligible children in areas served by a State 
        educational agency, local educational agency, 
        educational service agency, consortium of those 
        agencies, or another entity receiving financial 
        assistance under a program specified in subsection (b), 
        who are enrolled in private elementary schools and 
        secondary schools in areas served by such agency, 
        consortium, or entity, the agency, consortium, or 
        entity shall, after timely and meaningful consultation 
        with appropriate private school officials provide to 
        those children and their teachers or other educational 
        personnel, on an equitable basis, special educational 
        services or other benefits that address their needs 
        under the program.
            ``(2) Secular, neutral, and nonideological services 
        or benefits.--Educational services or other benefits, 
        including materials and equipment, provided under this 
        section, shall be secular, neutral, and nonideological.
            ``(3) Special rule.--Educational services and other 
        benefits provided under this section for private school 
        children, teachers, and other educational personnel 
        shall be equitable in comparison to services and other 
        benefits for public school children, teachers, and 
        other educational personnel participating in the 
        program and shall be provided in a timely manner.
            ``(4) Expenditures.--Expenditures for educational 
        services and other benefits provided under this section 
        for eligible private school children, their teachers, 
        and other educational personnel serving those children 
        shall be equal, taking into account the number and 
        educational needs of the children to be served, to the 
        expenditures for participating public school children.
            ``(5) Provision of services.--An agency, 
        consortium, or entity described in subsection (a)(1) of 
        this section may provide those services directly or 
        through contracts with public and private agencies, 
        organizations, and institutions.
    ``(b) Applicability.--
            ``(1) In general.--This section applies to programs 
        under--
                    ``(A) subparts 1 and 3 of part B of title 
                I;
                    ``(B) part C of title I;
                    ``(C) part A of title II, to the extent 
                provided in paragraph (3);
                    ``(D) part B of title II;
                    ``(E) part D of title II;
                    ``(F) part A of title III;
                    ``(G) part A of title IV; and
                    ``(H) part B of title IV.
            ``(2) Definition.--For the purpose of this section, 
        the term `eligible children' means children eligible 
        for services under a program described in paragraph 
        (1).
            ``(3) Application.--(A) Except as provided in 
        subparagraph (B), this subpart, including subsection 
        (a)(4), applies to funds awarded to a local educational 
        agency under part A of title II only to the extent that 
        the local educational agency uses funds under that part 
        to provide professional development to teachers and 
        others.
            ``(B) Subject to subparagraph (A), the share of the 
        local educational agency's subgrant under part A of 
        title II that is used for professional development and 
        subject to a determination of equitable expenditures 
        under subsection (a)(4) shall not be less than the 
        aggregate share of that agency's awards that were used 
        for professional development for fiscal year 2001 under 
        section 2203(1)(B) (as such section was in effect on 
        the day preceding the date of enactment of the No Child 
        Left Behind Act of 2001) and section 306 of the 
        Department of Education Appropriations Act, 2001.
    ``(c) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local 
        educational agency, educational service agency, 
        consortium of those agencies, or entity shall consult 
        with appropriate private school officials during the 
        design and development of the programs under this Act, 
        on issues such as--
                    ``(A) how the children's needs will be 
                identified;
                    ``(B) what services will be offered;
                    ``(C) how, where, and by whom the services 
                will be provided;
                    ``(D) how the services will be assessed and 
                how the results of the assessment will be used 
                to improve those services;
                    ``(E) the size and scope of the equitable 
                services to be provided to the eligible private 
                school children, teachers, and other 
                educational personnel and the amount of funds 
                available for those services; and
                    ``(F) how and when the agency, consortium, 
                or entity will make decisions about the 
                delivery of services, including a thorough 
                consideration and analysis of the views of the 
                private school officials on the provision of 
                contract services through potential third-party 
                providers.
            ``(2) Disagreement.--If the agency, consortium, or 
        entity disagrees with the views of the private school 
        officials on the provision of services through a 
        contract, the agency, consortium, or entity shall 
        provide to the private school officials a written 
        explanation of the reasons why the local educational 
        agency has chosen not to use a contractor.
            ``(3) Timing.--The consultation required by 
        paragraph (1) shall occur before the agency, 
        consortium, or entity makes any decision that affects 
        the opportunities of eligible private school children, 
        teachers, and other educational personnel to 
        participate in programs under this Act, and shall 
        continue throughout the implementation and assessment 
        of activities under this section.
            ``(4) Discussion required.--The consultation 
        required by paragraph (1) shall include a discussion of 
        service delivery mechanisms that the agency, 
        consortium, or entity could use to provide equitable 
        services to eligible private school children, teachers, 
        administrators, and other staff.
    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds used to 
        provide services under this section, and title to 
        materials, equipment, and property purchased with those 
        funds, shall be in a public agency for the uses and 
        purposes provided in this Act, and a public agency 
        shall administer the funds and property.
            ``(2) Provision of services.--
                    ``(A) In general.--The provision of 
                services under this section shall be provided--
                            ``(i) by employees of a public 
                        agency; or
                            ``(ii) through contract by the 
                        public agency with an individual, 
                        association, agency, organization, or 
                        other entity.
                    ``(B) Independence; public agency.--In the 
                provision of those services, the employee, 
                person, association, agency, organization, or 
                other entity shall be independent of the 
                private school and of any religious 
                organization, and the employment or contract 
                shall be under the control and supervision of 
                the public agency.
                    ``(C) Commingling of funds prohibited.--
                Funds used to provide services under this 
                section shall not be commingled with non-
                Federal funds.

``SEC. 9502. STANDARDS FOR BY-PASS.

    ``(a) In General.--If, by reason of any provision of law, a 
State educational agency, local educational agency, educational 
service agency, consortium of those agencies, or other entity 
is prohibited from providing for the participation in programs 
of children enrolled in, or teachers or other educational 
personnel from, private elementary schools and secondary 
schools, on an equitable basis, or if the Secretary determines 
that the agency, consortium, or entity has substantially failed 
or is unwilling to provide for that participation, as required 
by section 9501, the Secretary shall--
            ``(1) waive the requirements of that section for 
        the agency, consortium, or entity; and
            ``(2) arrange for the provision of equitable 
        services to those children, teachers, or other 
        educational personnel through arrangements that shall 
        be subject to the requirements of this section and of 
        sections 9501, 9503, and 9504.
    ``(b) Determination.--In making the determination under 
subsection (a), the Secretary shall consider one or more 
factors, including the quality, size, scope, and location of 
the program, and the opportunity of private school children, 
teachers, and other educational personnel to participate in the 
program.

``SEC. 9503. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL 
                    CHILDREN.

    ``(a) Procedures for Complaints.--The Secretary shall 
develop and implement written procedures for receiving, 
investigating, and resolving complaints from parents, teachers, 
or other individuals and organizations concerning violations of 
section 9501 by a State educational agency, local educational 
agency, educational service agency, consortium of those 
agencies, or entity. The individual or organization shall 
submit the complaint to the State educational agency for a 
written resolution by the State educational agency within a 
reasonable period of time.
    ``(b) Appeals to Secretary.--The resolution may be appealed 
by an interested party to the Secretary not later than 30 days 
after the State educational agency resolves the complaint or 
fails to resolve the complaint within a reasonable period of 
time. The appeal shall be accompanied by a copy of the State 
educational agency's resolution, and a complete statement of 
the reasons supporting the appeal. The Secretary shall 
investigate and resolve the appeal not later than 120 days 
after receipt of the appeal.

``SEC. 9504. BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--
            ``(1) In general.--
                    ``(A) Written objections.--The Secretary 
                shall not take any final action under section 
                9502 until the State educational agency, local 
                educational agency, educational service agency, 
                consortium of those agencies, or entity 
                affected by the action has had an opportunity, 
                for not less than 45 days after receiving 
                written notice thereof, to submit written 
                objections and to appear before the Secretary 
                to show cause why that action should not be 
                taken.
                    ``(B) Prior to reduction.--Pending final 
                resolution of any investigation or complaint 
                that could result in a determination under this 
                section, the Secretary may withhold from the 
                allocation of the affected State educational 
                agency or local educational agency the amount 
                estimated by the Secretary to be necessary to 
                pay the cost of those services.
            ``(2) Petition for review.--
                    ``(A) Petition.--If the affected agency, 
                consortium, or entity is dissatisfied with the 
                Secretary's final action after a proceeding 
                under paragraph (1), the agency, consortium, or 
                entity may, within 60 days after notice of that 
                action, file with the United States court of 
                appeals for the circuit in which the State is 
                located a petition for review of that action.
                    ``(B) Transmission.--A copy of the petition 
                shall be forthwith transmitted by the clerk of 
                the court to the Secretary.
                    ``(C) Filing.--The Secretary, upon receipt 
                of the copy of the petition, shall file in the 
                court the record of the proceedings on which 
                the Secretary based the action, as provided in 
                section 2112 of title 28, United States Code.
            ``(3) Findings of fact.--
                    ``(A) In general.--The findings of fact by 
                the Secretary, if supported by substantial 
                evidence, shall be conclusive, but the court, 
                for good cause shown, may remand the case to 
                the Secretary to take further evidence and the 
                Secretary may then make new or modified 
                findings of fact and may modify the Secretary's 
                previous action, and shall file in the court 
                the record of the further proceedings.
                    ``(B) New or modified findings.--Any new or 
                modified findings of fact shall likewise be 
                conclusive if supported by substantial 
                evidence.
            ``(4) Jurisdiction.--
                    ``(A) In general.--Upon the filing of a 
                petition, the court shall have jurisdiction to 
                affirm the action of the Secretary or to set 
                the action aside, in whole or in part.
                    ``(B) Judgment.--The judgment of the court 
                shall be subject to review by the Supreme Court 
                of the United States upon certiorari or 
                certification as provided in section 1254 of 
                title 28, United States Code.
    ``(b) Determination.--Any determination by the Secretary 
under this section shall continue in effect until the Secretary 
determines, in consultation with that agency, consortium, or 
entity and representatives of the affected private school 
children, teachers, or other educational personnel, that there 
will no longer be any failure or inability on the part of the 
agency, consortium, or entity to meet the applicable 
requirements of section 9501 or any other provision of this 
Act.
    ``(c) Payment From State Allotment.--When the Secretary 
arranges for services pursuant to this section, the Secretary 
shall, after consultation with the appropriate public and 
private school officials, pay the cost of those services, 
including the administrative costs of arranging for those 
services, from the appropriate allocation or allocations under 
this Act.
    ``(d) Prior Determination.--Any by-pass determination by 
the Secretary under this Act as in effect on the day preceding 
the date of enactment of the No Child Left Behind Act of 2001 
shall remain in effect to the extent the Secretary determines 
that that determination is consistent with the purpose of this 
section.

``SEC. 9505. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR 
                    INSTRUCTION.

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

``SEC. 9506. PRIVATE, RELIGIOUS, AND HOME SCHOOLS.

    ``(a) Applicability to Nonrecipient Private Schools.--
Nothing in this Act shall be construed to affect any private 
school that does not receive funds or services under this Act, 
nor shall any student who attends a private school that does 
not receive funds or services under this Act be required to 
participate in any assessment referenced in this Act.
    ``(b) Applicability to Home Schools.--Nothing in this Act 
shall be construed to affect a home school, whether or not a 
home school is treated as a home school or a private school 
under State law, nor shall any student schooled at home be 
required to participate in any assessment referenced in this 
Act.
    ``(c) Rule of Construction on Prohibition of Federal 
Control Over Nonpublic Schools.--Nothing in this Act shall be 
construed to permit, allow, encourage, or authorize any Federal 
control over any aspect of any private, religious, or home 
school, whether or not a home school is treated as a private 
school or home school under State law. This section shall not 
be construed to bar private, religious, or home schools from 
participation in programs or services under this Act.
    ``(d) Rule of Construction on State and Local Educational 
Agency Mandates.--Nothing in this Act shall be construed to 
require any State educational agency or local educational 
agency that receives funds under this Act to mandate, direct, 
or control the curriculum of a private or home school, 
regardless or whether or not a home school is treated as a 
private school under state law, nor shall any funds under this 
Act be used for this purpose.

                     ``Subpart 2--Other Provisions

``SEC. 9521. MAINTENANCE OF EFFORT.

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

``SEC. 9522. PROHIBITION REGARDING STATE AID.

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

``SEC. 9523. PRIVACY OF ASSESSMENT RESULTS.

    ``Any results from an individual assessment referred to in 
this Act of a student that become part of the education records 
of the student shall have the protections provided in section 
444 of the General Education Provisions Act.

``SEC. 9524. SCHOOL PRAYER.

    ``(a) Guidance.--The Secretary shall provide and revise 
guidance, not later than September 1, 2002, and of every second 
year thereafter, to State educational agencies, local 
educational agencies, and the public on constitutionally 
protected prayer in public elementary schools and secondary 
schools, including making the guidance available on the 
Internet. The guidance shall be reviewed, prior to 
distribution, by the Office of Legal Counsel of the Department 
of Justice for verification that the guidance represents the 
current state of the law concerning constitutionally protected 
prayer in public elementary schools and secondary schools.
    ``(b) Certification.--As a condition of receiving funds 
under this Act, a local educational agency shall certify in 
writing to the State educational agency involved that no policy 
of the local educational agency prevents, or otherwise denies 
participation in, constitutionally protected prayer in public 
elementary schools and secondary schools, as detailed in the 
guidance required under subsection (a). The certification shall 
be provided by October 1 of each year. The State educational 
agency shall report to the Secretary by November 1 of each year 
a list of those local educational agencies that have not filed 
the certification or against which complaints have been made to 
the State educational agency that the local educational 
agencies are not in compliance with this section.
    ``(c) Enforcement.--The Secretary is authorized and 
directed to effectuate subsection (b) by issuing, and securing 
compliance with, rules or orders with respect to a local 
educational agency that fails to certify, or is found to have 
certified in bad faith, that no policy of the local educational 
agency prevents, or otherwise denies participation in, 
constitutionally protected prayer in public elementary schools 
and secondary schools.

``SEC. 9525. EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.

    ``(a) Short Title.--This section may be cited as the `Boy 
Scouts of America Equal Access Act'.
    ``(b) In General.--
            ``(1) Equal access.--Notwithstanding any other 
        provision of law, no public elementary school, public 
        secondary school, local educational agency, or State 
        educational agency that has a designated open forum or 
        a limited public forum and that receives funds made 
        available through the Department shall deny equal 
        access or a fair opportunity to meet to, or 
        discriminate against, any group officially affiliated 
        with the Boy Scouts of America, or any other youth 
        group listed in title 36 of the United States Code (as 
        a patriotic society), that wishes to conduct a meeting 
        within that designated open forum or limited public 
        forum, including denying such access or opportunity or 
        discriminating for reasons based on the membership or 
        leadership criteria or oath of allegiance to God and 
        country of the Boy Scouts of America or of the youth 
        group listed in title 36 of the United States Code (as 
        a patriotic society).
            ``(2) Voluntary sponsorship.--Nothing in this 
        section shall be construed to require any school, 
        agency, or a school served by an agency to sponsor any 
        group officially affiliated with the Boy Scouts of 
        America, or any other youth group listed in title 36 of 
        the United States Code (as a patriotic society).
    ``(c) Termination of Assistance and Other Action.--
            ``(1) Departmental action.--The Secretary is 
        authorized and directed to effectuate subsection (b) by 
        issuing and securing compliance with rules or orders 
        with respect to a public elementary school, public 
        secondary school, local educational agency, or State 
        educational agency that receives funds made available 
        through the Department and that denies equal access, or 
        a fair opportunity to meet, or discriminates, as 
        described in subsection (b).
            ``(2) Procedure.--The Secretary shall issue and 
        secure compliance with the rules or orders, under 
        paragraph (1), through the Office for Civil Rights and 
        in a manner consistent with the procedure used by a 
        Federal department or agency under section 602 of the 
        Civil Rights Act of 1964. If the public school or 
        agency does not comply with the rules or orders, then 
        notwithstanding any other provision of law, no funds 
        made available through the Department shall be provided 
        to a school that fails to comply with such rules or 
        orders or to any agency or school served by an agency 
        that fails to comply with such rules or orders.
            ``(3) Judicial review.--Any action taken by the 
        Secretary under paragraph (1) shall be subject to the 
        judicial review described in section 603 of the Civil 
        Rights Act of 1964. Any person aggrieved by the action 
        may obtain that judicial review in the manner, and to 
        the extent, provided in section 603 of such Act.
    ``(d) Definition and Rule.--
            ``(1) Definition.--In this section, the term `youth 
        group' means any group or organization intended to 
        serve young people under the age of 21.
            ``(2) Rule.--For the purpose of this section, an 
        elementary school or secondary school has a limited 
        public forum whenever the school involved grants an 
        offering to, or opportunity for, one or more outside 
        youth or community groups to meet on school premises or 
        in school facilities before or after the hours during 
        which attendance at the school is compulsory.

``SEC. 9526. GENERAL PROHIBITIONS.

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

``SEC. 9527. PROHIBITIONS ON FEDERAL GOVERNMENT AND USE OF FEDERAL 
                    FUNDS.

    ``(a) General Prohibition.--Nothing in this Act shall be 
construed to authorize an officer or employee of the Federal 
Government to mandate, direct, or control a State, local 
educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or 
mandate a State or any subdivision thereof to spend any funds 
or incur any costs not paid for under this Act.
    ``(b) Prohibition on Endorsement of Curriculum.--
Notwithstanding any other prohibition of Federal law, no funds 
provided to the Department under this Act may be used by the 
Department to endorse, approve, or sanction any curriculum 
designed to be used in an elementary school or secondary 
school.
    ``(c) Prohibition on Requiring Federal Approval or 
Certification of Standards.--
            ``(1) In general.--Notwithstanding any other 
        provision of Federal law, no State shall be required to 
        have academic content or student academic achievement 
        standards approved or certified by the Federal 
        Government, in order to receive assistance under this 
        Act.
            ``(2) Rule of construction.--Nothing in this 
        subsection shall be construed to affect requirements 
        under title I or part A of title VI.
    ``(d) Rule of Construction on Building Standards.--Nothing 
in this Act shall be construed to mandate national school 
building standards for a State, local educational agency, or 
school.

``SEC. 9528. ARMED FORCES RECRUITER ACCESS TO STUDENTS AND STUDENT 
                    RECRUITING INFORMATION.

    ``(a) Policy.--
            ``(1) Access to student recruiting information.--
        Notwithstanding section 444(a)(5)(B) of the General 
        Education Provisions Act and except as provided in 
        paragraph (2), each local educational agency receiving 
        assistance under this Act shall provide, on a request 
        made by military recruiters or an institution of higher 
        education, access to secondary school students names, 
        addresses, and telephone listings.
            ``(2) Consent.--A secondary school student or the 
        parent of the student may request that the student's 
        name, address, and telephone listing described in 
        paragraph (1) not be released without prior written 
        parental consent, and the local educational agency or 
        private school shall notify parents of the option to 
        make a request and shall comply with any request.
            ``(3) Same access to students.--Each local 
        educational agency receiving assistance under this Act 
        shall provide military recruiters the same access to 
        secondary school students as is provided generally to 
        post secondary educational institutions or to 
        prospective employers of those students.
    ``(b) Notification.--The Secretary, in consultation with 
the Secretary of Defense, shall, not later than 120 days after 
the date of enactment of the No Child Left Behind Act of 2001, 
notify principals, school administrators, and other educators 
about the requirements of this section.
    ``(c) Exception.--The requirements of this section do not 
apply to a private secondary school that maintains a religious 
objection to service in the Armed Forces if the objection is 
verifiable through the corporate or other organizational 
documents or materials of that school.
    ``(d) Special Rule.--A local educational agency prohibited 
by Connecticut State law (either explicitly by statute or 
through statutory interpretation by the State Supreme Court or 
State Attorney General) from providing military recruiters with 
information or access as required by this section shall have 
until May 31, 2002, to comply with that requirement.

``SEC. 9529. PROHIBITION ON FEDERALLY SPONSORED TESTING.

    ``(a) General Prohibition.--Notwithstanding any other 
provision of Federal law and except as provided in subsection 
(b), no funds provided under this Act to the Secretary or to 
the recipient of any award may be used to develop, pilot test, 
field test, implement, administer, or distribute any federally 
sponsored national test in reading, mathematics, or any other 
subject, unless specifically and explicitly authorized by law.
    ``(b) Exceptions.--Subsection (a) shall not apply to 
international comparative assessments developed under the 
authority of section 404(a)(6) of the National Education 
Statistics Act of 1994 and administered to only a 
representative sample of pupils in the United States and in 
foreign nations.

``SEC. 9530. LIMITATIONS ON NATIONAL TESTING OR CERTIFICATION FOR 
                    TEACHERS.

    ``(a) Mandatory National Testing or Certification of 
Teachers.--Notwithstanding any other provision of this Act or 
any other provision of law, no funds available to the 
Department or otherwise available under this Act may be used 
for any purpose relating to a mandatory nationwide test or 
certification of teachers or education paraprofessionals, 
including any planning, development, implementation, or 
administration of such test or certification.
    ``(b) Prohibition on Withholding Funds.--The Secretary is 
prohibited from withholding funds from any State educational 
agency or local educational agency if the State educational 
agency or local educational agency fails to adopt a specific 
method of teacher or paraprofessional certification.

``SEC. 9531. PROHIBITION ON NATIONWIDE DATABASE.

    ``Nothing in this Act (other than section 1308(b)) shall be 
construed to authorize the development of a nationwide database 
of personally identifiable information on individuals involved 
in studies or other collections of data under this Act.

``SEC. 9532. UNSAFE SCHOOL CHOICE OPTION.

    ``(a) Unsafe School Choice Policy.--Each State receiving 
funds under this Act shall establish and implement a statewide 
policy requiring that a student attending a persistently 
dangerous public elementary school or secondary school, as 
determined by the State in consultation with a representative 
sample of local educational agencies, or who becomes a victim 
of a violent criminal offense, as determined by State law, 
while in or on the grounds of a public elementary school or 
secondary school that the student attends, be allowed to attend 
a safe public elementary or secondary school within the local 
educational agency, including a public charter school.
    ``(b) Certification.--As a condition of receiving funds 
under this Act, a State shall certify in writing to the 
Secretary that the State is in compliance with this section.

``SEC. 9533. PROHIBITION ON DISCRIMINATION.

    ``Nothing in this Act shall be construed to require, 
authorize, or permit, the Secretary, or a State educational 
agency, local educational agency, or school to grant to a 
student, or deny or impose upon a student, any financial or 
educational benefit or burden, in violation of the fifth or 
14th amendments to the Constitution or other law relating to 
discrimination in the provision of federally funded programs or 
activities.

``SEC. 9534. CIVIL RIGHTS.

    ``(a) In General.--Nothing in this Act shall be construed 
to permit discrimination on the basis of race, color, religion, 
sex (except as otherwise permitted under title IX of the 
Education Amendments of 1972), national origin, or disability 
in any program funded under this Act.
    ``(b) Rule of Construction.--Nothing in this Act shall be 
construed to require the disruption of services to a child or 
the displacement of a child enrolled in or participating in a 
program administered by an eligible entity, as defined in 
section 1116 of title I and part B of title V, at the 
commencement of the entity's participation in a grant under 
section 1116 of title I or part B of title V.

``SEC. 9535. RULEMAKING.

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

``SEC. 9536. SEVERABILITY.

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

                         ``PART F--EVALUATIONS

``SEC. 9601. EVALUATIONS.

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

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

                            PART A--REPEALS

SEC. 1011. REPEALS.

    The following provisions of law are repealed:
            (1) Part G of title XV of the Higher Education 
        Amendments of 1992 (20 U.S.C. 1070a-11 note), relating 
        to the Advanced Placement fee payment program.
            (2) Part B of title VIII of the Higher Education 
        Amendments of 1998 (20 U.S.C. 1070a-11 note), relating 
        to the Advanced Placement incentive program.
            (3) Part F of the General Education Provisions Act 
        (20 U.S.C. 1235 et seq.), relating to Ready to Learn 
        Television.
            (4) The following provisions of the Goals 2000: 
        Educate America Act (20 U.S.C. 5801 et seq.):
                    (A) Parts A and C of title II (20 U.S.C. 
                5821 et seq., 5871), relating to the National 
                Education Goals Panel.
                    (B) Title VI (20 U.S.C. 5951), relating to 
                the International Education Program.
            (5) The following provisions of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6301 et 
        seq.):
                    (A) Titles X through XII (20 U.S.C. 8001 et 
                seq.).
                    (B) Sections 13001 and 13002 (20 U.S.C. 
                8601, 8602).
                    (C) Title XIV (20 U.S.C. 8801 et seq.).
            (6) The Troops-to-Teachers Program Act of 1999 (20 
        U.S.C. 9301 et seq.).

SEC. 1012. CONFORMING CLERICAL AND TECHNICAL AMENDMENTS.

    The table of contents in section 1(b) of the Goals 2000: 
Educate America Act (20 U.S.C. 5801 note) is amended by 
striking the items relating to the following provisions:
            (1) Parts A and C of title II (including the items 
        relating to sections within those parts).
            (2) Sections 231, 232, 234, and 235.
            (3) Titles III through VI (including the items 
        relating to sections within those titles).

                         PART B--REDESIGNATIONS

SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

    (a) In General.--Part A of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8621 et seq.) is 
transferred to and redesignated as part K of the Educational 
Research, Development, Dissemination, and Improvement Act of 
1994.
    (b) Sections.--Sections 13101 through 13105 of such part 
are redesignated as sections 1001 through 1005, respectively.
    (c) Defined Terms.--Part K of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as 
transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1006. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 
9101 of the Elementary and Secondary Education Act of 1965 
shall apply.''.

SEC. 1022. NATIONAL DIFFUSION NETWORK.

    (a) In General.--Part B of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8651 et seq.) is 
transferred to and redesignated as part L of the Educational 
Research, Development, Dissemination, and Improvement Act of 
1994.
    (b) Sections.--Sections 13201 and 13102 of such part are 
redesignated as sections 1011 and 1012, respectively.
    (c) Defined Terms.--Part L of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as 
transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1013. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 
9101 of the Elementary and Secondary Education Act of 1965 
shall apply.''.

SEC. 1023. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
                    CONSORTIA.

    (a) In General.--Part C of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8671 et seq.) is 
transferred to and redesignated as part M of the Educational 
Research, Development, Dissemination, and Improvement Act of 
1994.
    (b) Sections.--Sections 13301 through 13108 of such part 
are redesignated as sections 1021 through 1028, respectively.
    (c) Defined Terms.--Part M of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as 
transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1029. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 
9101 of the Elementary and Secondary Education Act of 1965 
shall apply.''.

SEC. 1024. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

    (a) In General.--Part D of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8701) is transferred 
to and redesignated as part N of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994.
    (b) Sections.--Section 13401 of such part is redesignated 
as section 1031.
    (c) Defined Terms.--Part N of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as 
transferred and redesignated by this section) is amended by 
adding at the end the following new section:

``SEC. 1032. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 
9101 of the Elementary and Secondary Education Act of 1965 
shall apply.''.

SEC. 1025. CONFORMING AMENDMENTS.

    (a) Parts K Through M.--Parts K through M of the 
Educational Research, Development, Dissemination, and 
Improvement Act of 1994 (as transferred and redesignated by 
sections 1021 through 1024 of this Act) are amended as follows:
            (1) Insert ``of such Act'' in--
                    (A) section 1002(a)(1)(A), after ``title 
                I''; and
                    (B) section 1002(a)(1)(B), after ``section 
                1114''.
            (2) Insert ``of the Elementary and Secondary 
        Education Act of 1965 (as such Act was in effect on the 
        day before the date of enactment of the No Child Left 
        Behind Act of 2001)'' in--
                    (A) sections 1001(a)(2)(A) and 1011(e)(1), 
                after ``title I'';
                    (B) sections 1002(b)(1) and section 
                1011(g)(3)(A), after ``section 1114''; and
                    (C) in section 1011(e)(3), after ``title 
                III''.
            (3) In section 1011(a)(1), strike ``(hereafter 
        referred to in this Act as `NDN')''.
            (4) In subsections (c) and (g)(1) of section 1011 
        and in section 1027(1)(E), strike ``of the Educational 
        Research, Development, Dissemination, and Improvement 
        Act of 1994''.
            (5) In subsections (a)(2)(A) and (d) of section 
        1011, strike ``part A'' and insert ``part K''.
            (6) In sections 1002(a)(4) and 1011(e)(3), strike 
        ``part C'' and insert ``part M''.
            (7) In section 1002(a), strike ``section 13101(a)'' 
        and insert ``section 1001(a)''.
            (8) In section 1003(b)(1), strike ``section 13102'' 
        and insert ``section 1002''.
            (9) In section 1004(b)(1), strike ``section 13105'' 
        and insert ``section 1005''.
            (10) In sections 1002(a)(7) and 1003(b)(2), strike 
        ``section 13201'' and insert ``section 1011''.
            (11) In section 1022(2) and (3), strike ``section 
        13301(a)(1)'' and insert ``section 1021(a)(1)''.
            (12) In section 1027(4), strike ``section 13301'' 
        and insert ``section 1021''.
            (13) In subsections (a) and (b) of section 1025, 
        strike ``section 13303'' and insert ``section 1023''.
            (14) In the text preceding paragraph (1) of section 
        1022, strike ``section 13304'' and insert ``section 
        1024''.
            (15) In section 1021(a)(3), strike ``section 
        13308'' and insert ``section 1028''.
            (16) In sections 1003(b)(2) and 1011(f)(4), strike 
        ``section 13401'' and insert ``section 1031''.
            (17) Strike ``this Act'' and insert ``the 
        Elementary and Secondary Education Act of 1965 (as such 
        Act was in effect on the day before the date of 
        enactment of the No Child Left Behind Act of 2001)'' 
        in--
                    (A) section 1001(a)(1) (the first 
                occurrence only);
                    (B) paragraphs (1) through (3) of section 
                1001(c);
                    (C) paragraphs (1), (2), (6), and (8) of 
                section 1002(a);
                    (D) section 1011(e); and
                    (E) section 1031(2).
            (18) In paragraphs (1) and (2) of section 1004(b), 
        strike ``this Act'' and insert ``the Elementary and 
        Secondary Education Act of 1965''.
            (19) In section 1001(a)(1) (the second occurrence 
        only) and in section 1002(a)(1)(C), strike ``this Act'' 
        and insert ``such Act''.
            (20) Section 1011 is amended--
                    (A) in subsection (a)(1), by striking ``In 
                order to implement the purposes of this title, 
                the'' and inserting ``The''; and
                    (B) in subsection (f)(5), by striking ``to 
                achieve the purposes of this title''.
            (21) In section 1022(1), strike ``, the Eisenhower 
        National Clearinghouse for Science and Mathematics 
        Education established under section 2102(b)''.
            (22) In section 1026(a), strike ``section 14701'' 
        and insert ``section 9601''.
    (b) Title XIII Heading.--The Elementary and Secondary 
Education Act of 1965 is amended by striking the heading of 
title XIII.

                       PART C--HOMELESS EDUCATION

SEC. 1031. SHORT TITLE.

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

SEC. 1032. EDUCATION FOR HOMELESS CHILDREN AND YOUTHS.

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

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

``SEC. 721. STATEMENT OF POLICY.

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

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

    ``(a) General Authority.--The Secretary is authorized to 
make grants to States in accordance with the provisions of this 
section to enable such States to carry out the activities 
described in subsections (d) through (g).
    ``(b) Application.--No State may receive a grant under this 
section unless the State educational agency submits an 
application to the Secretary at such time, in such manner, and 
containing or accompanied by such information as the Secretary 
may reasonably require.
    ``(c) Allocation and Reservations.--
            ``(1) Allocation.--(A) Subject to subparagraph (B), 
        the Secretary is authorized to allot to each State an 
        amount that bears the same ratio to the amount 
        appropriated for such year under section 726 that 
        remains after the Secretary reserves funds under 
        paragraph (2) and uses funds to carry out section 
        724(d) and (h), as the amount allocated under section 
        1122 of the Elementary and Secondary Education Act of 
        1965 to the State for that year bears to the total 
        amount allocated under section 1122 of such Act to all 
        States for that year, except that no State shall 
        receive less than the greater of--
                    ``(i) $150,000;
                    ``(ii) \1/4\ of 1 percent of the amount 
                appropriated under section 726 for that year; 
                or
                    ``(iii) the amount such State received 
                under this section for fiscal year 2001.
            ``(B) If there are insufficient funds in a fiscal 
        year to allot to each State the minimum amount under 
        subparagraph (A), the Secretary shall ratably reduce 
        the allotments to all States based on the proportionate 
        share that each State received under this subsection 
        for the preceding fiscal year.
            ``(2) Reservations.--(A) The Secretary is 
        authorized to reserve 0.1 percent of the amount 
        appropriated for each fiscal year under section 726 to 
        be allocated by the Secretary among the United States 
        Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands, according 
        to their respective need for assistance under this 
        subtitle, as determined by the Secretary.
            ``(B)(i) The Secretary shall transfer 1 percent of 
        the amount appropriated for each fiscal year under 
        section 726 to the Department of the Interior for 
        programs for Indian students served by schools funded 
        by the Secretary of the Interior, as determined under 
        the Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450 et seq.), that are consistent with 
        the purposes of the programs described in this 
        subtitle.
            ``(ii) The Secretary and the Secretary of the 
        Interior shall enter into an agreement, consistent with 
        the requirements of this subtitle, for the distribution 
        and use of the funds described in clause (i) under 
        terms that the Secretary determines best meet the 
        purposes of the programs described in this subtitle. 
        Such agreement shall set forth the plans of the 
        Secretary of the Interior for the use of the amounts 
        transferred, including appropriate goals, objectives, 
        and milestones.
            ``(3) State defined.--For purposes of this 
        subsection, the term `State' does not include the 
        United States Virgin Islands, Guam, American Samoa, or 
        the Commonwealth of the Northern Mariana Islands.
    ``(d) Activities.--Grants under this section shall be used 
for the following:
            ``(1) To carry out the policies set forth in 
        section 721 in the State.
            ``(2) To provide activities for, and services to, 
        homeless children, including preschool-aged homeless 
        children, and youths that enable such children and 
        youths to enroll in, attend, and succeed in school, or, 
        if appropriate, in preschool programs.
            ``(3) To establish or designate an Office of 
        Coordinator for Education of Homeless Children and 
        Youths in the State educational agency in accordance 
        with subsection (f).
            ``(4) To prepare and carry out the State plan 
        described in subsection (g).
            ``(5) To develop and implement professional 
        development programs for school personnel to heighten 
        their awareness of, and capacity to respond to, 
        specific problems in the education of homeless children 
        and youths.
    ``(e) State and Local Subgrants.--
            ``(1) Minimum disbursements by states.--From the 
        sums made available each year to carry out this 
        subtitle, the State educational agency shall distribute 
        not less than 75 percent in subgrants to local 
        educational agencies for the purposes of carrying out 
        section 723, except that States funded at the minimum 
        level set forth in subsection (c)(1) shall distribute 
        not less than 50 percent in subgrants to local 
        educational agencies for the purposes of carrying out 
        section 723.
            ``(2) Use by state educational agency.--A State 
        educational agency may use funds made available for 
        State use under this subtitle to conduct activities 
        under subsection (f) directly or through grants or 
        contracts.
            ``(3) Prohibition on segregating homeless 
        students.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and section 723(a)(2)(B)(ii), 
                in providing a free public education to a 
                homeless child or youth, no State receiving 
                funds under this subtitle shall segregate such 
                child or youth in a separate school, or in a 
                separate program within a school, based on such 
                child's or youth's status as homeless.
                    ``(B) Exception.--Notwithstanding 
                subparagraph (A), paragraphs (1)(J)(i) and (3) 
                of subsection (g), section 723(a)(2), and any 
                other provision of this subtitle relating to 
                the placement of homeless children or youths in 
                schools, a State that has a separate school for 
                homeless children or youths that was operated 
                in fiscal year 2000 in a covered county shall 
                be eligible to receive funds under this 
                subtitle for programs carried out in such 
                school if--
                            ``(i) the school meets the 
                        requirements of subparagraph (C);
                            ``(ii) any local educational agency 
                        serving a school that the homeless 
                        children and youths enrolled in the 
                        separate school are eligible to attend 
                        meets the requirements of subparagraph 
                        (E); and
                            ``(iii) the State is otherwise 
                        eligible to receive funds under this 
                        subtitle.
                    ``(C) School requirements.--For the State 
                to be eligible under subparagraph (B) to 
                receive funds under this subtitle, the school 
                described in such subparagraph shall--
                            ``(i) provide written notice, at 
                        the time any child or youth seeks 
                        enrollment in such school, and at least 
                        twice annually while the child or youth 
                        is enrolled in such school, to the 
                        parent or guardian of the child or 
                        youth (or, in the case of an 
                        unaccompanied youth, the youth) that--
                                    ``(I) shall be signed by 
                                the parent or guardian (or, in 
                                the case of an unaccompanied 
                                youth, the youth);
                                    ``(II) sets forth the 
                                general rights provided under 
                                this subtitle;
                                    ``(III) specifically 
                                states--
                                            ``(aa) the choice 
                                        of schools homeless 
                                        children and youths are 
                                        eligible to attend, as 
                                        provided in subsection 
                                        (g)(3)(A);
                                            ``(bb) that no 
                                        homeless child or youth 
                                        is required to attend a 
                                        separate school for 
                                        homeless children or 
                                        youths;
                                            ``(cc) that 
                                        homeless children and 
                                        youths shall be 
                                        provided comparable 
                                        services described in 
                                        subsection (g)(4), 
                                        including 
                                        transportation 
                                        services, educational 
                                        services, and meals 
                                        through school meals 
                                        programs; and
                                            ``(dd) that 
                                        homeless children and 
                                        youths should not be 
                                        stigmatized by school 
                                        personnel; and
                                    ``(IV) provides contact 
                                information for the local 
                                liaison for homeless children 
                                and youths and the State 
                                Coordinator for Education of 
                                Homeless Children and Youths;
                            ``(ii)(I) provide assistance to the 
                        parent or guardian of each homeless 
                        child or youth (or, in the case of an 
                        unaccompanied youth, the youth) to 
                        exercise the right to attend the 
                        parent's or guardian's (or youth's) 
                        choice of schools, as provided in 
                        subsection (g)(3)(A); and
                            ``(II) coordinate with the local 
                        educational agency with jurisdiction 
                        for the school selected by the parent 
                        or guardian (or youth), to provide 
                        transportation and other necessary 
                        services;
                            ``(iii) ensure that the parent or 
                        guardian (or, in the case of an 
                        unaccompanied youth, the youth) shall 
                        receive the information required by 
                        this subparagraph in a manner and form 
                        understandable to such parent or 
                        guardian (or youth), including, if 
                        necessary and to the extent feasible, 
                        in the native language of such parent 
                        or guardian (or youth); and
                            ``(iv) demonstrate in the school's 
                        application for funds under this 
                        subtitle that such school--
                                    ``(I) is complying with 
                                clauses (i) and (ii); and
                                    ``(II) is meeting (as of 
                                the date of submission of the 
                                application) the same Federal 
                                and State standards, 
                                regulations, and mandates as 
                                other public schools in the 
                                State (such as complying with 
                                sections 1111 and 1116 of the 
                                Elementary and Secondary 
                                Education Act of 1965 and 
                                providing a full range of 
                                education and related services, 
                                including services applicable 
                                to students with disabilities).
                    ``(D) School ineligibility.--A separate 
                school described in subparagraph (B) that fails 
                to meet the standards, regulations, and 
                mandates described in subparagraph (C)(iv)(II) 
                shall not be eligible to receive funds under 
                this subtitle for programs carried out in such 
                school after the first date of such failure.
                    ``(E) Local educational agency 
                requirements.--For the State to be eligible to 
                receive the funds described in subparagraph 
                (B), the local educational agency described in 
                subparagraph (B)(ii) shall--
                            ``(i) implement a coordinated 
                        system for ensuring that homeless 
                        children and youths--
                                    ``(I) are advised of the 
                                choice of schools provided in 
                                subsection (g)(3)(A);
                                    ``(II) are immediately 
                                enrolled, in accordance with 
                                subsection (g)(3)(C), in the 
                                school selected under 
                                subsection (g)(3)(A); and
                                    ``(III) are promptly 
                                provided necessary services 
                                described in subsection (g)(4), 
                                including transportation, to 
                                allow homeless children and 
                                youths to exercise their 
                                choices of schools under 
                                subsection (g)(3)(A);
                            ``(ii) document that written notice 
                        has been provided--
                                    ``(I) in accordance with 
                                subparagraph (C)(i) for each 
                                child or youth enrolled in a 
                                separate school under 
                                subparagraph (B); and
                                    ``(II) in accordance with 
                                subsection (g)(6)(A)(v);
                            ``(iii) prohibit schools within the 
                        agency's jurisdiction from referring 
                        homeless children or youths to, or 
                        requiring homeless children and youths 
                        to enroll in or attend, a separate 
                        school described in subparagraph (B);
                            ``(iv) identify and remove any 
                        barriers that exist in schools within 
                        the agency's jurisdiction that may have 
                        contributed to the creation or 
                        existence of separate schools described 
                        in subparagraph (B); and
                            ``(v) not use funds received under 
                        this subtitle to establish--
                                    ``(I) new or additional 
                                separate schools for homeless 
                                children or youths; or
                                    ``(II) new or additional 
                                sites for separate schools for 
                                homeless children or youths, 
                                other than the sites occupied 
                                by the schools described in 
                                subparagraph (B) in fiscal year 
                                2000.
                    ``(F) Report.--
                            ``(i) Preparation.--The Secretary 
                        shall prepare a report on the separate 
                        schools and local educational agencies 
                        described in subparagraph (B) that 
                        receive funds under this subtitle in 
                        accordance with this paragraph. The 
                        report shall contain, at a minimum, 
                        information on--
                                    ``(I) compliance with all 
                                requirements of this paragraph;
                                    ``(II) barriers to school 
                                access in the school districts 
                                served by the local educational 
                                agencies; and
                                    ``(III) the progress the 
                                separate schools are making in 
                                integrating homeless children 
                                and youths into the mainstream 
                                school environment, including 
                                the average length of student 
                                enrollment in such schools.
                            ``(ii) Compliance with information 
                        requests.--For purposes of enabling the 
                        Secretary to prepare the report, the 
                        separate schools and local educational 
                        agencies shall cooperate with the 
                        Secretary and the State Coordinator for 
                        Education of Homeless Children and 
                        Youths established in the State under 
                        subsection (d)(3), and shall comply 
                        with any requests for information by 
                        the Secretary and State Coordinator for 
                        such State.
                            ``(iii) Submission.--Not later than 
                        2 years after the date of enactment of 
                        the McKinney-Vento Homeless Education 
                        Assistance Improvements Act of 2001, 
                        the Secretary shall submit the report 
                        described in clause (i) to--
                                    ``(I) the President;
                                    ``(II) the Committee on 
                                Education and the Workforce of 
                                the House of Representatives; 
                                and
                                    ``(III) the Committee on 
                                Health, Education, Labor, and 
                                Pensions of the Senate.
                    ``(G) Definition.--For purposes of this 
                paragraph, the term `covered county' means--
                            ``(i) San Joaquin County, 
                        California;
                            ``(ii) Orange County, California;
                            ``(iii) San Diego County, 
                        California; and
                            ``(iv) Maricopa County, Arizona.
    ``(f) Functions of the Office of Coordinator.--The 
Coordinator for Education of Homeless Children and Youths 
established in each State shall--
            ``(1) gather reliable, valid, and comprehensive 
        information on the nature and extent of the problems 
        homeless children and youths have in gaining access to 
        public preschool programs and to public elementary 
        schools and secondary schools, the difficulties in 
        identifying the special needs of such children and 
        youths, any progress made by the State educational 
        agency and local educational agencies in the State in 
        addressing such problems and difficulties, and the 
        success of the programs under this subtitle in allowing 
        homeless children and youths to enroll in, attend, and 
        succeed in, school;
            ``(2) develop and carry out the State plan 
        described in subsection (g);
            ``(3) collect and transmit to the Secretary, at 
        such time and in such manner as the Secretary may 
        require, a report containing such information as the 
        Secretary determines is necessary to assess the 
        educational needs of homeless children and youths 
        within the State;
            ``(4) facilitate coordination between the State 
        educational agency, the State social services agency, 
        and other agencies (including agencies providing mental 
        health services) to provide services to homeless 
        children, including preschool-aged homeless children, 
        and youths, and to families of such children and 
        youths;
            ``(5) in order to improve the provision of 
        comprehensive education and related services to 
        homeless children and youths and their families, 
        coordinate and collaborate with--
                    ``(A) educators, including child 
                development and preschool program personnel;
                    ``(B) providers of services to homeless and 
                runaway children and youths and homeless 
                families (including domestic violence agencies, 
                shelter operators, transitional housing 
                facilities, runaway and homeless youth centers, 
                and transitional living programs for homeless 
                youths);
                    ``(C) local educational agency liaisons 
                designated under subsection (g)(1)(J)(ii) for 
                homeless children and youths; and
                    ``(D) community organizations and groups 
                representing homeless children and youths and 
                their families; and
            ``(6) provide technical assistance to local 
        educational agencies in coordination with local 
        educational agency liaisons designated under subsection 
        (g)(1)(J)(ii), to ensure that local educational 
        agencies comply with the requirements of section 
        722(e)(3) and paragraphs (3) through (7) of subsection 
        (g).
    ``(g) State Plan.--
            ``(1) In general.--Each State shall submit to the 
        Secretary a plan to provide for the education of 
        homeless children and youths within the State. Such 
        plan shall include the following:
                    ``(A) A description of how such children 
                and youths are (or will be) given the 
                opportunity to meet the same challenging State 
                academic achievement standards all students are 
                expected to meet.
                    ``(B) A description of the procedures the 
                State educational agency will use to identify 
                such children and youths in the State and to 
                assess their special needs.
                    ``(C) A description of procedures for the 
                prompt resolution of disputes regarding the 
                educational placement of homeless children and 
                youths.
                    ``(D) A description of programs for school 
                personnel (including principals, attendance 
                officers, teachers, enrollment personnel, and 
                pupil services personnel) to heighten the 
                awareness of such personnel of the specific 
                needs of runaway and homeless youths.
                    ``(E) A description of procedures that 
                ensure that homeless children and youths who 
                meet the relevant eligibility criteria are able 
                to participate in Federal, State, or local food 
                programs.
                    ``(F) A description of procedures that 
                ensure that--
                            ``(i) homeless children have equal 
                        access to the same public preschool 
                        programs, administered by the State 
                        agency, as provided to other children 
                        in the State;
                            ``(ii) homeless youths and youths 
                        separated from the public schools are 
                        identified and accorded equal access to 
                        appropriate secondary education and 
                        support services; and
                            ``(iii) homeless children and 
                        youths who meet the relevant 
                        eligibility criteria are able to 
                        participate in Federal, State, or local 
                        before- and after-school care programs.
                    ``(G) Strategies to address problems 
                identified in the report provided to the 
                Secretary under subsection (f)(3).
                    ``(H) Strategies to address other problems 
                with respect to the education of homeless 
                children and youths, including problems 
                resulting from enrollment delays that are 
                caused by--
                            ``(i) immunization and medical 
                        records requirements;
                            ``(ii) residency requirements;
                            ``(iii) lack of birth certificates, 
                        school records, or other documentation;
                            ``(iv) guardianship issues; or
                            ``(v) uniform or dress code 
                        requirements.
                    ``(I) A demonstration that the State 
                educational agency and local educational 
                agencies in the State have developed, and shall 
                review and revise, policies to remove barriers 
                to the enrollment and retention of homeless 
                children and youths in schools in the State.
                    ``(J) Assurances that--
                            ``(i) the State educational agency 
                        and local educational agencies in the 
                        State will adopt policies and practices 
                        to ensure that homeless children and 
                        youths are not stigmatized or 
                        segregated on the basis of their status 
                        as homeless;
                            ``(ii) local educational agencies 
                        will designate an appropriate staff 
                        person, who may also be a coordinator 
                        for other Federal programs, as a local 
                        educational agency liaison for homeless 
                        children and youths, to carry out the 
                        duties described in paragraph (6)(A); 
                        and
                            ``(iii) the State and its local 
                        educational agencies will adopt 
                        policies and practices to ensure that 
                        transportation is provided, at the 
                        request of the parent or guardian (or 
                        in the case of an unaccompanied youth, 
                        the liaison), to and from the school of 
                        origin, as determined in paragraph 
                        (3)(A), in accordance with the 
                        following, as applicable:
                                    ``(I) If the homeless child 
                                or youth continues to live in 
                                the area served by the local 
                                educational agency in which the 
                                school of origin is located, 
                                the child's or youth's 
                                transportation to and from the 
                                school of origin shall be 
                                provided or arranged by the 
                                local educational agency in 
                                which the school of origin is 
                                located.
                                    ``(II) If the homeless 
                                child's or youth's living 
                                arrangements in the area served 
                                by the local educational agency 
                                of origin terminate and the 
                                child or youth, though 
                                continuing his or her education 
                                in the school of origin, begins 
                                living in an area served by 
                                another local educational 
                                agency, the local educational 
                                agency of origin and the local 
                                educational agency in which the 
                                homeless child or youth is 
                                living shall agree upon a 
                                method to apportion the 
                                responsibility and costs for 
                                providing the child with 
                                transportation to and from the 
                                school of origin. If the local 
                                educational agencies are unable 
                                to agree upon such method, the 
                                responsibility and costs for 
                                transportation shall be shared 
                                equally.
            ``(2) Compliance.--
                    ``(A) In general.--Each plan adopted under 
                this subsection shall also describe how the 
                State will ensure that local educational 
                agencies in the State will comply with the 
                requirements of paragraphs (3) through (7).
                    ``(B) Coordination.--Such plan shall 
                indicate what technical assistance the State 
                will furnish to local educational agencies and 
                how compliance efforts will be coordinated with 
                the local educational agency liaisons 
                designated under paragraph (1)(J)(ii).
            ``(3) Local educational agency requirements.--
                    ``(A) In general.--The local educational 
                agency serving each child or youth to be 
                assisted under this subtitle shall, according 
                to the child's or youth's best interest--
                            ``(i) continue the child's or 
                        youth's education in the school of 
                        origin for the duration of 
                        homelessness--
                                    ``(I) in any case in which 
                                a family becomes homeless 
                                between academic years or 
                                during an academic year; or
                                    ``(II) for the remainder of 
                                the academic year, if the child 
                                or youth becomes permanently 
                                housed during an academic year; 
                                or
                            ``(ii) enroll the child or youth in 
                        any public school that nonhomeless 
                        students who live in the attendance 
                        area in which the child or youth is 
                        actually living are eligible to attend.
                    ``(B) Best interest.--In determining the 
                best interest of the child or youth under 
                subparagraph (A), the local educational agency 
                shall--
                            ``(i) to the extent feasible, keep 
                        a homeless child or youth in the school 
                        of origin, except when doing so is 
                        contrary to the wishes of the child's 
                        or youth's parent or guardian;
                            ``(ii) provide a written 
                        explanation, including a statement 
                        regarding the right to appeal under 
                        subparagraph (E), to the homeless 
                        child's or youth's parent or guardian, 
                        if the local educational agency sends 
                        such child or youth to a school other 
                        than the school of origin or a school 
                        requested by the parent or guardian; 
                        and
                            ``(iii) in the case of an 
                        unaccompanied youth, ensure that the 
                        homeless liaison designated under 
                        paragraph (1)(J)(ii) assists in 
                        placement or enrollment decisions under 
                        this subparagraph, considers the views 
                        of such unaccompanied youth, and 
                        provides notice to such youth of the 
                        right to appeal under subparagraph (E).
                    ``(C) Enrollment.--(i) The school selected 
                in accordance with this paragraph shall 
                immediately enroll the homeless child or youth, 
                even if the child or youth is unable to produce 
                records normally required for enrollment, such 
                as previous academic records, medical records, 
                proof of residency, or other documentation.
                    ``(ii) The enrolling school shall 
                immediately contact the school last attended by 
                the child or youth to obtain relevant academic 
                and other records.
                    ``(iii) If the child or youth needs to 
                obtain immunizations, or immunization or 
                medical records, the enrolling school shall 
                immediately refer the parent or guardian of the 
                child or youth to the local educational agency 
                liaison designated under paragraph (1)(J)(ii), 
                who shall assist in obtaining necessary 
                immunizations, or immunization or medical 
                records, in accordance with subparagraph (D).
                    ``(D) Records.--Any record ordinarily kept 
                by the school, including immunization or 
                medical records, academic records, birth 
                certificates, guardianship records, and 
                evaluations for special services or programs, 
                regarding each homeless child or youth shall be 
                maintained--
                            ``(i) so that the records are 
                        available, in a timely fashion, when a 
                        child or youth enters a new school or 
                        school district; and
                            ``(ii) in a manner consistent with 
                        section 444 of the General Education 
                        Provisions Act (20 U.S.C. 1232g).
                    ``(E) Enrollment disputes.--If a dispute 
                arises over school selection or enrollment in a 
                school--
                            ``(i) the child or youth shall be 
                        immediately admitted to the school in 
                        which enrollment is sought, pending 
                        resolution of the dispute;
                            ``(ii) the parent or guardian of 
                        the child or youth shall be provided 
                        with a written explanation of the 
                        school's decision regarding school 
                        selection or enrollment, including the 
                        rights of the parent, guardian, or 
                        youth to appeal the decision;
                            ``(iii) the child, youth, parent, 
                        or guardian shall be referred to the 
                        local educational agency liaison 
                        designated under paragraph (1)(J)(ii), 
                        who shall carry out the dispute 
                        resolution process as described in 
                        paragraph (1)(C) as expeditiously as 
                        possible after receiving notice of the 
                        dispute; and
                            ``(iv) in the case of an 
                        unaccompanied youth, the homeless 
                        liaison shall ensure that the youth is 
                        immediately enrolled in school pending 
                        resolution of the dispute.
                    ``(F) Placement choice.--The choice 
                regarding placement shall be made regardless of 
                whether the child or youth lives with the 
                homeless parents or has been temporarily placed 
                elsewhere.
                    ``(G) School of origin defined.--In this 
                paragraph, the term `school of origin' means 
                the school that the child or youth attended 
                when permanently housed or the school in which 
                the child or youth was last enrolled.
                    ``(H) Contact information.--Nothing in this 
                subtitle shall prohibit a local educational 
                agency from requiring a parent or guardian of a 
                homeless child to submit contact information.
            ``(4) Comparable services.--Each homeless child or 
        youth to be assisted under this subtitle shall be 
        provided services comparable to services offered to 
        other students in the school selected under paragraph 
        (3), including the following:
                    ``(A) Transportation services.
                    ``(B) Educational services for which the 
                child or youth meets the eligibility criteria, 
                such as services provided under title I of the 
                Elementary and Secondary Education Act of 1965 
                or similar State or local programs, educational 
                programs for children with disabilities, and 
                educational programs for students with limited 
                English proficiency.
                    ``(C) Programs in vocational and technical 
                education.
                    ``(D) Programs for gifted and talented 
                students.
                    ``(E) School nutrition programs.
            ``(5) Coordination.--
                    ``(A) In general.--Each local educational 
                agency serving homeless children and youths 
                that receives assistance under this subtitle 
                shall coordinate--
                            ``(i) the provision of services 
                        under this subtitle with local social 
                        services agencies and other agencies or 
                        programs providing services to homeless 
                        children and youths and their families, 
                        including services and programs funded 
                        under the Runaway and Homeless Youth 
                        Act (42 U.S.C. 5701 et seq.); and
                            ``(ii) with other local educational 
                        agencies on interdistrict issues, such 
                        as transportation or transfer of school 
                        records.
                    ``(B) Housing assistance.--If applicable, 
                each State educational agency and local 
                educational agency that receives assistance 
                under this subtitle shall coordinate with State 
                and local housing agencies responsible for 
                developing the comprehensive housing 
                affordability strategy described in section 105 
                of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12705) to minimize 
                educational disruption for children and youths 
                who become homeless.
                    ``(C) Coordination purpose.--The 
                coordination required under subparagraphs (A) 
                and (B) shall be designed to--
                            ``(i) ensure that homeless children 
                        and youths have access and reasonable 
                        proximity to available education and 
                        related support services; and
                            ``(ii) raise the awareness of 
                        school personnel and service providers 
                        of the effects of short-term stays in a 
                        shelter and other challenges associated 
                        with homelessness.
            ``(6) Local educational agency liaison.--
                    ``(A) Duties.--Each local educational 
                agency liaison for homeless children and 
                youths, designated under paragraph (1)(J)(ii), 
                shall ensure that--
                            ``(i) homeless children and youths 
                        are identified by school personnel and 
                        through coordination activities with 
                        other entities and agencies;
                            ``(ii) homeless children and youths 
                        enroll in, and have a full and equal 
                        opportunity to succeed in, schools of 
                        that local educational agency;
                            ``(iii) homeless families, 
                        children, and youths receive 
                        educational services for which such 
                        families, children, and youths are 
                        eligible, including Head Start and Even 
                        Start programs and preschool programs 
                        administered by the local educational 
                        agency, and referrals to health care 
                        services, dental services, mental 
                        health services, and other appropriate 
                        services;
                            ``(iv) the parents or guardians of 
                        homeless children and youths are 
                        informed of the educational and related 
                        opportunities available to their 
                        children and are provided with 
                        meaningful opportunities to participate 
                        in the education of their children;
                            ``(v) public notice of the 
                        educational rights of homeless children 
                        and youths is disseminated where such 
                        children and youths receive services 
                        under this Act, such as schools, family 
                        shelters, and soup kitchens;
                            ``(vi) enrollment disputes are 
                        mediated in accordance with paragraph 
                        (3)(E); and
                            ``(vii) the parent or guardian of a 
                        homeless child or youth, and any 
                        unaccompanied youth, is fully informed 
                        of all transportation services, 
                        including transportation to the school 
                        of origin, as described in paragraph 
                        (1)(J)(iii), and is assisted in 
                        accessing transportation to the school 
                        that is selected under paragraph 
                        (3)(A).
                    ``(B) Notice.--State coordinators 
                established under subsection (d)(3) and local 
                educational agencies shall inform school 
                personnel, service providers, and advocates 
                working with homeless families of the duties of 
                the local educational agency liaisons.
                    ``(C) Local and state coordination.--Local 
                educational agency liaisons for homeless 
                children and youths shall, as a part of their 
                duties, coordinate and collaborate with State 
                coordinators and community and school personnel 
                responsible for the provision of education and 
                related services to homeless children and 
                youths.
            ``(7) Review and revisions.--
                    ``(A) In general.--Each State educational 
                agency and local educational agency that 
                receives assistance under this subtitle shall 
                review and revise any policies that may act as 
                barriers to the enrollment of homeless children 
                and youths in schools that are selected under 
                paragraph (3).
                    ``(B) Consideration.--In reviewing and 
                revising such policies, consideration shall be 
                given to issues concerning transportation, 
                immunization, residency, birth certificates, 
                school records and other documentation, and 
                guardianship.
                    ``(C) Special attention.--Special attention 
                shall be given to ensuring the enrollment and 
                attendance of homeless children and youths who 
                are not currently attending school.

``SEC. 723. LOCAL EDUCATIONAL AGENCY SUBGRANTS FOR THE EDUCATION OF 
                    HOMELESS CHILDREN AND YOUTHS.

    ``(a) General Authority.--
            ``(1) In general.--The State educational agency 
        shall, in accordance with section 722(e), and from 
        amounts made available to such agency under section 
        726, make subgrants to local educational agencies for 
        the purpose of facilitating the enrollment, attendance, 
        and success in school of homeless children and youths.
            ``(2) Services.--
                    ``(A) In general.--Services under paragraph 
                (1)--
                            ``(i) may be provided through 
                        programs on school grounds or at other 
                        facilities;
                            ``(ii) shall, to the maximum extent 
                        practicable, be provided through 
                        existing programs and mechanisms that 
                        integrate homeless children and youths 
                        with nonhomeless children and youths; 
                        and
                            ``(iii) shall be designed to expand 
                        or improve services provided as part of 
                        a school's regular academic program, 
                        but not to replace such services 
                        provided under such program.
                    ``(B) Services on school grounds.--If 
                services under paragraph (1) are provided on 
                school grounds, schools--
                            ``(i) may use funds under this 
                        subtitle to provide the same services 
                        to other children and youths who are 
                        determined by the local educational 
                        agency to be at risk of failing in, or 
                        dropping out of, school, subject to the 
                        requirements of clause (ii); and
                            ``(ii) except as otherwise provided 
                        in section 722(e)(3)(B), shall not 
                        provide services in settings within a 
                        school that segregate homeless children 
                        and youths from other children and 
                        youths, except as necessary for short 
                        periods of time--
                                    ``(I) for health and safety 
                                emergencies; or
                                    ``(II) to provide 
                                temporary, special, and 
                                supplementary services to meet 
                                the unique needs of homeless 
                                children and youths.
            ``(3) Requirement.--Services provided under this 
        section shall not replace the regular academic program 
        and shall be designed to expand upon or improve 
        services provided as part of the school's regular 
        academic program.
    ``(b) Application.--A local educational agency that desires 
to receive a subgrant under this section shall submit an 
application to the State educational agency at such time, in 
such manner, and containing or accompanied by such information 
as the State educational agency may reasonably require. Such 
application shall include the following:
            ``(1) An assessment of the educational and related 
        needs of homeless children and youths in the area 
        served by such agency (which may be undertaken as part 
        of needs assessments for other disadvantaged groups).
            ``(2) A description of the services and programs 
        for which assistance is sought to address the needs 
        identified in paragraph (1).
            ``(3) An assurance that the local educational 
        agency's combined fiscal effort per student, or the 
        aggregate expenditures of that agency and the State 
        with respect to the provision of free public education 
        by such agency for the fiscal year preceding the fiscal 
        year for which the determination is made, was not less 
        than 90 percent of such combined fiscal effort or 
        aggregate expenditures for the second fiscal year 
        preceding the fiscal year for which the determination 
        is made.
            ``(4) An assurance that the applicant complies 
        with, or will use requested funds to comply with, 
        paragraphs (3) through (7) of section 722(g).
            ``(5) A description of policies and procedures, 
        consistent with section 722(e)(3), that the agency will 
        implement to ensure that activities carried out by the 
        agency will not isolate or stigmatize homeless children 
        and youths.
    ``(c) Awards.--
            ``(1) In general.--The State educational agency 
        shall, in accordance with the requirements of this 
        subtitle and from amounts made available to it under 
        section 726, make competitive subgrants to local 
        educational agencies that submit applications under 
        subsection (b). Such subgrants shall be awarded on the 
        basis of the need of such agencies for assistance under 
        this subtitle and the quality of the applications 
        submitted.
            ``(2) Need.--In determining need under paragraph 
        (1), the State educational agency may consider the 
        number of homeless children and youths enrolled in 
        preschool, elementary, and secondary schools within the 
        area served by the local educational agency, and shall 
        consider the needs of such children and youths and the 
        ability of the local educational agency to meet such 
        needs. The State educational agency may also consider 
        the following:
                    ``(A) The extent to which the proposed use 
                of funds will facilitate the enrollment, 
                retention, and educational success of homeless 
                children and youths.
                    ``(B) The extent to which the application--
                            ``(i) reflects coordination with 
                        other local and State agencies that 
                        serve homeless children and youths; and
                            ``(ii) describes how the applicant 
                        will meet the requirements of section 
                        722(g)(3).
                    ``(C) The extent to which the applicant 
                exhibits in the application and in current 
                practice a commitment to education for all 
                homeless children and youths.
                    ``(D) Such other criteria as the State 
                agency determines appropriate.
            ``(3) Quality.--In determining the quality of 
        applications under paragraph (1), the State educational 
        agency shall consider the following:
                    ``(A) The applicant's needs assessment 
                under subsection (b)(1) and the likelihood that 
                the program presented in the application will 
                meet such needs.
                    ``(B) The types, intensity, and 
                coordination of the services to be provided 
                under the program.
                    ``(C) The involvement of parents or 
                guardians of homeless children or youths in the 
                education of their children.
                    ``(D) The extent to which homeless children 
                and youths will be integrated within the 
                regular education program.
                    ``(E) The quality of the applicant's 
                evaluation plan for the program.
                    ``(F) The extent to which services provided 
                under this subtitle will be coordinated with 
                other services available to homeless children 
                and youths and their families.
                    ``(G) Such other measures as the State 
                educational agency considers indicative of a 
                high-quality program, such as the extent to 
                which the local educational agency will provide 
                case management or related services to 
                unaccompanied youths.
            ``(4) Duration of grants.--Grants awarded under 
        this section shall be for terms not to exceed 3 years.
    ``(d) Authorized Activities.--A local educational agency 
may use funds awarded under this section for activities that 
carry out the purpose of this subtitle, including the 
following:
            ``(1) The provision of tutoring, supplemental 
        instruction, and enriched educational services that are 
        linked to the achievement of the same challenging State 
        academic content standards and challenging State 
        student academic achievement standards the State 
        establishes for other children and youths.
            ``(2) The provision of expedited evaluations of the 
        strengths and needs of homeless children and youths, 
        including needs and eligibility for programs and 
        services (such as educational programs for gifted and 
        talented students, children with disabilities, and 
        students with limited English proficiency, services 
        provided under title I of the Elementary and Secondary 
        Education Act of 1965 or similar State or local 
        programs, programs in vocational and technical 
        education, and school nutrition programs).
            ``(3) Professional development and other activities 
        for educators and pupil services personnel that are 
        designed to heighten the understanding and sensitivity 
        of such personnel to the needs of homeless children and 
        youths, the rights of such children and youths under 
        this subtitle, and the specific educational needs of 
        runaway and homeless youths.
            ``(4) The provision of referral services to 
        homeless children and youths for medical, dental, 
        mental, and other health services.
            ``(5) The provision of assistance to defray the 
        excess cost of transportation for students under 
        section 722(g)(4)(A), not otherwise provided through 
        Federal, State, or local funding, where necessary to 
        enable students to attend the school selected under 
        section 722(g)(3).
            ``(6) The provision of developmentally appropriate 
        early childhood education programs, not otherwise 
        provided through Federal, State, or local funding, for 
        preschool-aged homeless children.
            ``(7) The provision of services and assistance to 
        attract, engage, and retain homeless children and 
        youths, and unaccompanied youths, in public school 
        programs and services provided to nonhomeless children 
        and youths.
            ``(8) The provision for homeless children and 
        youths of before- and after-school, mentoring, and 
        summer programs in which a teacher or other qualified 
        individual provides tutoring, homework assistance, and 
        supervision of educational activities.
            ``(9) If necessary, the payment of fees and other 
        costs associated with tracking, obtaining, and 
        transferring records necessary to enroll homeless 
        children and youths in school, including birth 
        certificates, immunization or medical records, academic 
        records, guardianship records, and evaluations for 
        special programs or services.
            ``(10) The provision of education and training to 
        the parents of homeless children and youths about the 
        rights of, and resources available to, such children 
        and youths.
            ``(11) The development of coordination between 
        schools and agencies providing services to homeless 
        children and youths, as described in section 722(g)(5).
            ``(12) The provision of pupil services (including 
        violence prevention counseling) and referrals for such 
        services.
            ``(13) Activities to address the particular needs 
        of homeless children and youths that may arise from 
        domestic violence.
            ``(14) The adaptation of space and purchase of 
        supplies for any nonschool facilities made available 
        under subsection (a)(2) to provide services under this 
        subsection.
            ``(15) The provision of school supplies, including 
        those supplies to be distributed at shelters or 
        temporary housing facilities, or other appropriate 
        locations.
            ``(16) The provision of other extraordinary or 
        emergency assistance needed to enable homeless children 
        and youths to attend school.

``SEC. 724. SECRETARIAL RESPONSIBILITIES.

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

``SEC. 725. DEFINITIONS.

    ``For purposes of this subtitle:
            ``(1) The terms `enroll' and `enrollment' include 
        attending classes and participating fully in school 
        activities.
            ``(2) The term `homeless children and youths'--
                    ``(A) means individuals who lack a fixed, 
                regular, and adequate nighttime residence 
                (within the meaning of section 103(a)(1)); and
                    ``(B) includes--
                            ``(i) children and youths who are 
                        sharing the housing of other persons 
                        due to loss of housing, economic 
                        hardship, or a similar reason; are 
                        living in motels, hotels, trailer 
                        parks, or camping grounds due to the 
                        lack of alternative adequate 
                        accommodations; are living in emergency 
                        or transitional shelters; are abandoned 
                        in hospitals; or are awaiting foster 
                        care placement;
                            ``(ii) children and youths who have 
                        a primary nighttime residence that is a 
                        public or private place not designed 
                        for or ordinarily used as a regular 
                        sleeping accommodation for human beings 
                        (within the meaning of section 
                        103(a)(2)(C));
                            ``(iii) children and youths who are 
                        living in cars, parks, public spaces, 
                        abandoned buildings, substandard 
                        housing, bus or train stations, or 
                        similar settings; and
                            ``(iv) migratory children (as such 
                        term is defined in section 1309 of the 
                        Elementary and Secondary Education Act 
                        of 1965) who qualify as homeless for 
                        the purposes of this subtitle because 
                        the children are living in 
                        circumstances described in clauses (i) 
                        through (iii).
            ``(3) The terms `local educational agency' and 
        `State educational agency' have the meanings given such 
        terms in section 9101 of the Elementary and Secondary 
        Education Act of 1965.
            ``(4) The term `Secretary' means the Secretary of 
        Education.
            ``(5) The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.
            ``(6) The term `unaccompanied youth' includes a 
        youth not in the physical custody of a parent or 
        guardian.

``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $70,000,000 for fiscal year 2002 
and such sums as may be necessary for each of fiscal years 2003 
through 2007.''.

SEC. 1033. CONFORMING AMENDMENT.

    The table of contents of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11301 note) is amended so that the 
items relating to subtitle B of title VII read as follows:

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

``Sec. 721. Statement of policy.
``Sec. 722. Grants for State and local activities for the education of 
          homeless children and youths.
``Sec. 723. Local educational agency subgrants for the education of 
          homeless children and youths.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.

SEC. 1034. TECHNICAL AMENDMENT.

    (a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 
11301) is amended by striking ``Section 1 of'' and inserting 
``Section 101 of''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall be deemed to be effective on the date of enactment of 
Public Law 106-400.

             PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT

SEC. 1041. SHORT TITLE.

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

SEC. 1042. AMENDMENTS TO THE EDUCATION AMENDMENTS OF 1978.

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

              ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

``SEC. 1120. DECLARATION OF POLICY.

    ``Congress declares that the Federal Government has the 
sole responsibility for the operation and financial support of 
the Bureau of Indian Affairs funded school system that it has 
established on or near Indian reservations and Indian trust 
lands throughout the Nation for Indian children. It is the 
policy of the United States to fulfill the Federal Government's 
unique and continuing trust relationship with and 
responsibility to the Indian people for the education of Indian 
children and for the operation and financial support of the 
Bureau of Indian Affairs-funded school system to work in full 
cooperation with tribes toward the goal of ensuring that the 
programs of the Bureau of Indian Affairs-funded school system 
are of the highest quality and provide for the basic elementary 
and secondary educational needs of Indian children, including 
meeting the unique educational and cultural needs of those 
children.

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

    ``(a) Purpose; Declarations of Purpose.--
            ``(1) Purpose.--The purpose of the accreditation 
        required under this section shall be to ensure that 
        Indian students being served by a school funded by the 
        Bureau of Indian Affairs are provided with educational 
        opportunities that equal or exceed those for all other 
        students in the United States.
            ``(2) Declarations of purpose.--Local school boards 
        for schools operated by the Bureau of Indian Affairs, 
        in cooperation and consultation with the appropriate 
        tribal governing bodies and their communities, are 
        encouraged to adopt declarations of purpose for 
        education for their communities, taking into account 
        the implications of such declarations on education in 
        their communities and for their schools. In adopting 
        such declarations of purpose, the school boards shall 
        consider the effect the declarations may have on the 
        motivation of students and faculties.
    ``(b) Accreditation.--
            ``(1) Deadline.--
                    ``(A) In general.--Not later than 24 months 
                after the date of enactment of the Native 
                American Education Improvement Act of 2001, 
                each Bureau-funded school shall, to the extent 
                that necessary funds are provided, be a 
                candidate for accreditation or be accredited--
                            ``(i) by a tribal accrediting body, 
                        if the accreditation standards of the 
                        tribal accrediting body have been 
                        accepted by formal action of the tribal 
                        governing body and such accreditation 
                        is acknowledged by a generally 
                        recognized State certification or 
                        regional accrediting agency;
                            ``(ii) by a regional accreditation 
                        agency;
                            ``(iii) by State accreditation 
                        standards for the State in which the 
                        Bureau-funded school is located; or
                            ``(iv) in the case of a Bureau-
                        funded school that is located on a 
                        reservation that is located in more 
                        than 1 State, in accordance with the 
                        State accreditation standards of 1 
                        State as selected by the tribal 
                        government.
                    ``(B) Feasibility study.--Not later than 12 
                months after the date of enactment of the 
                Native American Education Improvement Act of 
                2001, the Secretary of the Interior and the 
                Secretary of Education shall, in consultation 
                with Indian tribes, Indian education 
                organizations, and accrediting agencies, 
                develop and submit to the appropriate 
                committees of Congress a report on the 
                desirability and feasibility of establishing a 
                tribal accreditation agency that would--
                            ``(i) review and acknowledge the 
                        accreditation standards for Bureau-
                        funded schools; and
                            ``(ii) establish accreditation 
                        procedures to facilitate the 
                        application, review of the standards 
                        and review processes, and recognition 
                        of qualified and credible tribal 
                        departments of education as accrediting 
                        bodies serving tribal schools.
            ``(2) Determination of accreditation to be 
        applied.--The accreditation type applied for each 
        school shall be determined by the tribal governing 
        body, or the school board, if authorized by the tribal 
        governing body.
            ``(3) Assistance to school boards.--
                    ``(A) In general.--The Secretary, through 
                contracts and grants, shall provide technical 
                and financial assistance to Bureau-funded 
                schools, to the extent that necessary amounts 
                are made available, to enable such schools to 
                obtain the accreditation required under this 
                subsection, if the school boards request that 
                such assistance, in part or in whole, be 
                provided.
                    ``(B) Entities through which assistance may 
                be provided.--The Secretary may provide such 
                assistance directly or through the Department 
                of Education, an institution of higher 
                education, a private not-for-profit 
                organization or for-profit organization, an 
                educational service agency, or another entity 
                with demonstrated experience in assisting 
                schools in obtaining accreditation.
            ``(4) Application of current standards during 
        accreditation.--A Bureau-funded school that is seeking 
        accreditation shall remain subject to the standards 
        issued under section 1121 of the Education Amendments 
        of 1978 and in effect on the day before the date of 
        enactment of the Native American Education Improvement 
        Act of 2001 until such time as the school is 
        accredited, except that if any of such standards are in 
        conflict with the standards of the accrediting agency, 
        the standards of such agency shall apply in such case.
            ``(5) Annual report on unaccredited schools.--Not 
        later than 90 days after the end of each school year, 
        the Secretary shall prepare and submit to the Committee 
        on Appropriations, the Committee on Education and the 
        Workforce, and the Committee on Resources of the House 
        of Representatives and the Committee on Appropriations, 
        the Committee on Indian Affairs, and the Committee on 
        Health, Education, Labor, and Pensions of the Senate, a 
        report concerning unaccredited Bureau-funded schools 
        that--
                    ``(A) identifies those Bureau-funded 
                schools that fail to be accredited or to be 
                candidates for accreditation within the period 
                provided for in paragraph (1);
                    ``(B) with respect to each Bureau-funded 
                school identified under subparagraph (A), 
                identifies the reasons that each such school is 
                not accredited or a candidate for 
                accreditation, as determined by the appropriate 
                accreditation agency, and a description of any 
                possible way in which to remedy such 
                nonaccreditation; and
                    ``(C) with respect to each Bureau-funded 
                school for which the reported reasons for the 
                lack of accreditation under subparagraph (B) 
                are a result of the school's inadequate basic 
                resources, contains information and funding 
                requests for the full funding needed to provide 
                such schools with accreditation, such funds if 
                provided shall be applied to such unaccredited 
                school under this paragraph.
            ``(6) Opportunity to review and present evidence.--
                    ``(A) In general.--Prior to including a 
                Bureau-funded school in an annual report 
                required under paragraph (5), the Secretary 
                shall--
                            ``(i) ensure that the school has 
                        exhausted all administrative remedies 
                        provided by the accreditation agency; 
                        and
                            ``(ii) provide the school with an 
                        opportunity to review the data on which 
                        such inclusion is based.
                    ``(B) Provision of additional 
                information.--If the school board of a school 
                that the Secretary has proposed for inclusion 
                in an annual report under paragraph (5) 
                believes that such inclusion is in error, the 
                school board may provide to the Secretary such 
                information as the board believes is in 
                conflict with the information and conclusions 
                of the Secretary with respect to the 
                determination to include the school in such 
                annual report. The Secretary shall consider 
                such information provided by the school board 
                before making a final determination concerning 
                the inclusion of the school in any such report.
                    ``(C) Publication of accreditation 
                status.--Not later than 30 days after making an 
                initial determination to include a school in an 
                annual report under paragraph (5), the 
                Secretary shall make public the final 
                determination on the accreditation status of 
                the school.
            ``(7) School plan.--
                    ``(A) In general.--Not later than 120 days 
                after the date on which a school is included in 
                an annual report under paragraph (5), the 
                school shall develop a school plan, in 
                consultation with interested parties including 
                parents, school staff, the school board, and 
                other outside experts (if appropriate), that 
                shall be submitted to the Secretary for 
                approval. The school plan shall cover a 3-year 
                period and shall--
                            ``(i) incorporate strategies that 
                        address the specific issues that caused 
                        the school to fail to be accredited or 
                        fail to be a candidate for 
                        accreditation;
                            ``(ii) incorporate policies and 
                        practices concerning the school that 
                        have the greatest likelihood of 
                        ensuring that the school will obtain 
                        accreditation during the 3-year period 
                        beginning on the date on which the plan 
                        is implemented;
                            ``(iii) contain an assurance that 
                        the school will reserve the necessary 
                        funds, from the funds described in 
                        paragraph (3), for each fiscal year for 
                        the purpose of obtaining accreditation;
                            ``(iv) specify how the funds 
                        described in clause (iii) will be used 
                        to obtain accreditation;
                            ``(v) establish specific annual, 
                        objective goals for measuring 
                        continuous and significant progress 
                        made by the school in a manner that 
                        will ensure the accreditation of the 
                        school within the 3-year period 
                        described in clause (ii);
                            ``(vi) identify how the school will 
                        provide written notification about the 
                        lack of accreditation to the parents of 
                        each student enrolled in such school, 
                        in a format and, to the extent 
                        practicable, in a language the parents 
                        can understand; and
                            ``(vii) specify the 
                        responsibilities of the school board 
                        and any assistance to be provided by 
                        the Secretary under paragraph (3).
                    ``(B) Implementation.--A school shall 
                implement the school plan under subparagraph 
                (A) expeditiously, but in no event later than 
                the beginning of the school year following the 
                school year in which the school was included in 
                the annual report under paragraph (5) so long 
                as the necessary resources have been provided 
                to the school.
                    ``(C) Review of plan.--Not later than 45 
                days after receiving a school plan, the 
                Secretary shall--
                            ``(i) establish a peer-review 
                        process to assist with the review of 
                        the plan; and
                            ``(ii) promptly review the school 
                        plan, work with the school as 
                        necessary, and approve the school plan 
                        if the plan meets the requirements of 
                        this paragraph.
            ``(8) Corrective action.--
                    ``(A) Definition.--In this subsection, the 
                term `corrective action' means any action 
                that--
                            ``(i) substantially and directly 
                        responds to--
                                    ``(I) the failure of a 
                                school to achieve 
                                accreditation; and
                                    ``(II) any underlying 
                                staffing, curriculum, or other 
                                programmatic problem in the 
                                school that contributed to the 
                                lack of accreditation; and
                            ``(ii) is designed to increase 
                        substantially the likelihood that the 
                        school will be accredited.
                    ``(B) Waiver.--The Secretary shall grant a 
                waiver which shall exempt a school from any or 
                all of the requirements of this paragraph and 
                paragraph (7) (though such school shall be 
                required to comply with the standards contained 
                in part 36 of title 25, Code of Federal 
                Register, as in effect on the date of enactment 
                of the Native American Education Improvement 
                Act of 2001) if the school--
                            ``(i) is identified in the report 
                        described in paragraph (5)(C); and
                            ``(ii) fails to be accredited for 
                        reasons that are beyond the control of 
                        the school board, as determined by the 
                        Secretary, including, but not limited 
                        to--
                                    ``(I) a significant decline 
                                in financial resources;
                                    ``(II) the poor condition 
                                of facilities, vehicles, or 
                                other property; and
                                    ``(III) a natural disaster.
                    ``(C) Duties of secretary.--After providing 
                assistance to a school under paragraph (3), the 
                Secretary shall--
                            ``(i) annually review the progress 
                        of the school under the applicable 
                        school plan to determine whether the 
                        school is meeting, or making adequate 
                        progress towards, achieving the goals 
                        described in paragraph (7)(A)(v) with 
                        respect to reaccreditation or becoming 
                        a candidate for accreditation;
                            ``(ii) except as provided in 
                        subparagraph (B), continue to provide 
                        assistance while implementing the 
                        school's plan, and, if determined 
                        appropriate by the Secretary, take 
                        corrective action with respect to the 
                        school if it fails to be accredited at 
                        the end of the third full year 
                        immediately following the date that the 
                        school's plan was first in effect under 
                        paragraph (7);
                            ``(iii) provide all students 
                        enrolled in a school that is eligible 
                        for a corrective action determination 
                        by the Secretary under clause (ii) with 
                        the option to transfer to another 
                        public or Bureau-funded school, 
                        including a public charter school, that 
                        is accredited;
                            ``(iv) promptly notify the parents 
                        of children enrolled in a school that 
                        is eligible for a corrective action 
                        determination by the Secretary under 
                        clause (ii) of the option to transfer 
                        their child to another public or 
                        Bureau-funded school; and
                            ``(v) provide, or pay for the 
                        provision of, transportation for each 
                        student described in clause (iii) to 
                        the school described in clause (iii) to 
                        which the student elects to be 
                        transferred to the extent funds are 
                        available, as determined by the tribal 
                        governing body.
                    ``(D) Failure of school plan of bureau-
                operated school.--With respect to a Bureau-
                operated school that fails to be accredited at 
                the end of the third full year immediately 
                following the date that the school's plan was 
                first in effect under paragraph (7), the 
                Secretary may take 1 or more of the following 
                corrective actions:
                            ``(i) Institute and fully implement 
                        actions suggested by the accrediting 
                        agency.
                            ``(ii) Consult with the tribe 
                        involved to determine the causes for 
                        the lack of accreditation including 
                        potential staffing and administrative 
                        changes that are or may be necessary.
                            ``(iii) Set aside a certain amount 
                        of funds that may only be used by the 
                        school to obtain accreditation.
                            ``(iv)(I) Provide the tribe with a 
                        60-day period during which to determine 
                        whether the tribe desires to operate 
                        the school as a contract or grant 
                        school before meeting the accreditation 
                        requirements in section 5207(c) of the 
                        Tribally Controlled Schools Act of 1988 
                        at the beginning of the next school 
                        year following the determination to 
                        take corrective action. If the tribe 
                        agrees to operate the school as a 
                        contract or grant school, the tribe 
                        shall prepare a plan, pursuant to 
                        paragraph (7), for approval by the 
                        Secretary in accordance with paragraph 
                        (7), to achieve accreditation.
                            ``(II) If the tribe declines to 
                        assume control of the school, the 
                        Secretary, in consultation with the 
                        tribe, may contract with an outside 
                        entity, consistent with applicable law, 
                        or appoint a receiver or trustee to 
                        operate and administer the affairs of 
                        the school until the school is 
                        accredited. The outside entity, 
                        receiver, or trustee shall prepare a 
                        plan, pursuant to paragraph (7), for 
                        approval by the Secretary in accordance 
                        with paragraph (7).
                            ``(III) Upon accreditation of the 
                        school, the Secretary shall allow the 
                        tribe to continue to operate the school 
                        as a grant or contract school, or if 
                        the school is being controlled by an 
                        outside entity, provide the tribe with 
                        the option to assume operation of the 
                        school as a contract school, in 
                        accordance with the Indian Self-
                        Determination Act, or as a grant school 
                        in accordance with the Tribally 
                        Controlled Schools Act of 1988, at the 
                        beginning of the school year following 
                        the school year in which the school 
                        obtains accreditation. If the tribe 
                        declines, the Secretary may allow the 
                        outside entity, receiver, or trustee to 
                        continue the operation of the school or 
                        reassume control of the school.
                    ``(E) Failure of school plan of contract or 
                grant school.--
                            ``(i) Corrective action.--With 
                        respect to a contract or grant school 
                        that fails to be accredited at the end 
                        of the third full year immediately 
                        following the date that the school's 
                        plan was first in effect under 
                        paragraph (7), the Secretary may take 1 
                        or more of the corrective actions 
                        described in subparagraph (D)(i) and 
                        (D)(ii). The Secretary shall implement 
                        such corrective action for at least 1 
                        year prior to taking any action 
                        described under clause (ii).
                            ``(ii) Outside entity.--If the 
                        corrective action described in clause 
                        (i) does not result in accreditation of 
                        the school, the Secretary, in 
                        conjunction with the tribal governing 
                        body, may contract with an outside 
                        entity to operate the school in order 
                        to achieve accreditation of the school 
                        within 2 school years. Prior to 
                        entering into such a contract, the 
                        Secretary shall develop a proposal for 
                        such operation which shall include, at 
                        a minimum, the following elements:
                                    ``(I) The identification of 
                                1 or more outside entities each 
                                of which has demonstrated to 
                                the Secretary its ability to 
                                develop a satisfactory plan for 
                                achieving accreditation and its 
                                willingness and availability to 
                                undertake such a plan.
                                    ``(II) A plan for 
                                implementing operation of the 
                                school by such an outside 
                                entity, including the 
                                methodology for oversight and 
                                evaluation of the performance 
                                of the outside entity by the 
                                Secretary and the tribe.
                            ``(iii) Proposal amendments.--The 
                        tribal governing body shall have 60 
                        days to amend the plan developed 
                        pursuant to clause (ii), including 
                        identifying another outside entity to 
                        operate the school. The Secretary shall 
                        reach agreement with the tribal 
                        governing body on the proposal and any 
                        such amendments to the plan not later 
                        than 30 days after the expiration of 
                        the 60 day period described in the 
                        preceding sentence. After the approval 
                        of the proposal and any amendments, the 
                        Secretary, with continuing consultation 
                        with such tribal governing body, shall 
                        implement the proposal.
                            ``(iv) Accreditation.--Upon 
                        accreditation of the school, the tribe 
                        shall have the option to assume the 
                        operation and administration of the 
                        school as a contract school after 
                        complying with the Indian Self-
                        Determination Act, or as a grant 
                        school, after complying with the 
                        Tribally Controlled Schools Act of 
                        1988, at the beginning of the school 
                        year following the year in which the 
                        school obtains accreditation.
                            ``(v) Retrocede.--Nothing in this 
                        subparagraph shall limit a tribe's 
                        right to retrocede operation of a 
                        school to the Secretary pursuant to 
                        section 105(e) of the Indian Self-
                        Determination Act (with respect to a 
                        contract school) or section 5204(f) of 
                        the Tribally Controlled Schools Act of 
                        1988 (with respect to a grant school).
                            ``(vi) Consistent.--The provisions 
                        of this subparagraph shall be construed 
                        to be consistent with the provisions of 
                        the Tribally Controlled Schools Act of 
                        1988 and the Indian Self-Determination 
                        Act as in effect on the day before the 
                        date of enactment of the Native 
                        American Education Improvement Act of 
                        2001, and shall not be construed as 
                        expanding the authority of the 
                        Secretary under any other law.
                    ``(F) Hearing.--With respect to a school 
                that is operated pursuant to a grant, or a 
                school that is operated under a contract under 
                the Indian Self-Determination Act, prior to 
                implementing any corrective action under this 
                paragraph, the Secretary shall provide notice 
                and an opportunity for a hearing to the 
                affected school pursuant to section 5207 of the 
                Tribally Controlled Schools Act of 1988.
            ``(9) Statutory construction.--Nothing in this 
        section shall be construed to alter or otherwise affect 
        the rights, remedies, and procedures afforded to school 
        employees under applicable law (including applicable 
        regulations or court orders) or under the terms of any 
        collective bargaining agreement, memorandum of 
        understanding, or other agreement between such 
        employees and their employers.
            ``(10) Fiscal control and fund accounting 
        standards.--The Bureau shall, either directly or 
        through contract with an Indian organization, establish 
        a consistent system of reporting standards for fiscal 
        control and fund accounting for all contract and grant 
        schools. Such standards shall provide data comparable 
        to those used by Bureau-operated schools.
    ``(c) Annual Plan.--
            ``(1) In general.--Except as provided in subsection 
        (b), the Secretary shall implement the standards in 
        effect under this section on the day before the date of 
        enactment of the Native American Education Improvement 
        Act of 2001.
            ``(2) Plan.--On an annual basis, the Secretary 
        shall submit to the appropriate committees of Congress, 
        all Bureau-funded schools, and the tribal governing 
        bodies of such schools a detailed plan to ensure that 
        all Bureau-funded schools are accredited, or if such 
        schools are in the process of obtaining accreditation 
        that such schools meet the Bureau standards in effect 
        on the day before the date of enactment of the Native 
        American Education Improvement Act of 2001 to the 
        extent that such standards do not conflict with the 
        standards of the accrediting agency. Such plan shall 
        include detailed information on the status of each 
        school's educational program in relation to the 
        applicable standards, specific cost estimates for 
        meeting such standards at each school, and specific 
        timelines for bringing each school up to the level 
        required by such standards.
    ``(d) Closure or Consolidation of Schools.--
            ``(1) In general.--Except as specifically required 
        by law--
                    ``(A) no Bureau-funded school or dormitory 
                operated on or after January 1, 1992, may be 
                closed, consolidated, or transferred to another 
                authority; and
                    ``(B) no program of such a school may be 
                substantially curtailed except in accordance 
                with the requirements of this subsection.
            ``(2) Exceptions.--This subsection (other than this 
        paragraph) shall not apply--
                    ``(A) in those cases in which the tribal 
                governing body for a school, or the local 
                school board concerned (if designated by the 
                tribal governing body to act under this 
                paragraph), requests the closure, 
                consolidation, or substantial curtailment; or
                    ``(B) if a temporary closure, 
                consolidation, or substantial curtailment is 
                required by facility conditions that constitute 
                an immediate hazard to health and safety.
            ``(3) Regulations.--The Secretary shall, by 
        regulation, promulgate standards and procedures for the 
        closure, transfer to another authority, consolidation, 
        or substantial curtailment of Bureau schools, in 
        accordance with the requirements of this subsection.
            ``(4) Notice.--
                    ``(A) In general.--In a case in which 
                closure, transfer to another authority, 
                consolidation, or substantial curtailment of a 
                school is under active consideration or review 
                by any division of the Bureau or the Department 
                of the Interior, the affected tribe, tribal 
                governing body, and designated local school 
                board will be notified immediately in writing, 
                kept fully and currently informed, and afforded 
                an opportunity to comment with respect to such 
                consideration or review.
                    ``(B) Decision to close.--If a formal 
                decision is made to close, transfer to another 
                authority, consolidate, or substantially 
                curtail a school, the affected tribe, tribal 
                governing body, and designated school board 
                shall be notified not later than 180 days 
                before the end of the school year preceding the 
                proposed closure date.
                    ``(C) Copies.--Copies of any such notices 
                and information shall be--
                            ``(i) submitted promptly to the 
                        appropriate committees of Congress; and
                            ``(ii) published in the Federal 
                        Register.
            ``(5) Report.--The Secretary shall submit to the 
        appropriate committees of Congress, the affected tribe, 
        and the designated school board, a report describing 
        the process of the active consideration or review 
        referred to in paragraph (4) that includes--
                    ``(A) a study of the impact of such action 
                on the student population;
                    ``(B) a description of those students with 
                particular educational and social needs;
                    ``(C) recommendations to ensure that 
                alternative services are available to such 
                students; and
                    ``(D) a description of the consultation 
                conducted between the potential service 
                provider, current service provider, parents, 
                tribal representatives and the tribe or tribes 
                involved, and the Director of the Office of 
                Indian Education Programs within the Bureau 
                regarding such students.
            ``(6) Limitation on certain actions.--No 
        irrevocable action may be taken in furtherance of any 
        such proposed school closure, transfer to another 
        authority, consolidation, or substantial curtailment 
        (including any action which would prejudice the 
        personnel or programs of such school) prior to the end 
        of the first full academic year after such report is 
        made.
            ``(7) Tribal governing body approval required for 
        certain actions.--The Secretary may, with the approval 
        of the tribal governing body, terminate, contract, 
        transfer to any other authority, consolidate, or 
        substantially curtail the operation or facilities of--
                    ``(A) any Bureau-funded school that is 
                operated on or after of January 1, 1999;
                    ``(B) any program of such a school that is 
                operated on or after January 1, 1999; or
                    ``(C) any school board of a school operated 
                under a grant under the Tribally Controlled 
                Schools Act of 1988.
    ``(e) Application for Contracts or Grants for Non-Bureau-
Funded Schools or Expansion of Bureau-Funded Schools.--
            ``(1) Review by secretary.--
                    ``(A) Consideration of factors.--
                            ``(i) In general.--The Secretary 
                        shall consider only the factors 
                        described in subparagraph (B) in 
                        reviewing--
                                    ``(I) applications from any 
                                tribe for the awarding of a 
                                contract or grant for a school 
                                that is not a Bureau-funded 
                                school; and
                                    ``(II) applications from 
                                any tribe or school board of 
                                any Bureau-funded school for--
                                            ``(aa) a school 
                                        which is not a Bureau-
                                        funded school; or
                                            ``(bb) the 
                                        expansion of a Bureau-
                                        funded school which 
                                        would increase the 
                                        amount of funds 
                                        received by the Indian 
                                        tribe or school board 
                                        under section 1127.
                            ``(ii) No denial based on 
                        geographic proximity.--With respect to 
                        applications described in this 
                        subparagraph, the Secretary shall give 
                        consideration to all factors described 
                        in subparagraph (B), but no such 
                        application shall be denied based 
                        primarily upon the geographic proximity 
                        of comparable public education.
                    ``(B) Factors.--With respect to 
                applications described in subparagraph (A), the 
                Secretary shall consider the following factors 
                relating to the program and services that are 
                the subject of the application:
                            ``(i) The adequacy of the 
                        facilities or the potential to obtain 
                        or provide adequate facilities.
                            ``(ii) Geographic and demographic 
                        factors in the affected areas.
                            ``(iii) The adequacy of the 
                        applicant's program plans or, in the 
                        case of a Bureau-funded school, of 
                        projected needs analysis done either by 
                        the tribe or the Bureau.
                            ``(iv) Geographic proximity of 
                        comparable public education.
                            ``(v) The stated needs of all 
                        affected parties, including students, 
                        families, tribal governments at both 
                        the central and local levels, and 
                        school organizations.
                            ``(vi) Adequacy and comparability 
                        of programs already available.
                            ``(vii) Consistency of available 
                        programs with tribal educational codes 
                        or tribal legislation on education.
                            ``(viii) The history and success of 
                        those services for the proposed 
                        population to be served, as determined 
                        from all factors, including 
                        standardized examination performance.
            ``(2) Determination on application.--
                    ``(A) In general.--Not later than 180 days 
                after the date on which an application 
                described in paragraph (1)(A) is submitted to 
                the Secretary, the Secretary shall make a 
                determination of whether to approve the 
                application.
                    ``(B) Failure to make determination.--If 
                the Secretary fails to make a determination 
                with respect to an application by the date 
                described in subparagraph (A), the application 
                shall be deemed to have been approved by the 
                Secretary.
            ``(3) Requirements for applications.--
                    ``(A) In general.--Notwithstanding 
                paragraph (2)(B), an application described in 
                paragraph (1)(A) may be approved by the 
                Secretary only if--
                            ``(i) the application has been 
                        approved by the tribal governing body 
                        of the students served by (or to be 
                        served by) the school or program that 
                        is the subject of the application; and
                            ``(ii) written evidence of such 
                        approval is submitted with the 
                        application.
                    ``(B) Included information.--Each 
                application described in paragraph (1)(A) shall 
                include information concerning each of the 
                factors described in paragraph (1)(B).
            ``(4) Denial of applications.--If the Secretary 
        denies an application described in paragraph (1)(A), 
        the Secretary shall--
                    ``(A) state the objections to the 
                application in writing to the applicant not 
                later than 180 days after the date the 
                application is submitted to the Secretary;
                    ``(B) provide assistance to the applicant 
                to overcome the stated objections;
                    ``(C) provide to the applicant a hearing on 
                the record regarding the denial, under the same 
                rules and regulations as apply under the Indian 
                Self-Determination and Education Assistance 
                Act; and
                    ``(D) provide to the applicant a notice of 
                the applicant's appeals rights and an 
                opportunity to appeal the decision resulting 
                from the hearing under subparagraph (D).
            ``(5) Effective date of a subject application.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, an action that is 
                the subject of any application described in 
                paragraph (1)(A) that is approved by the 
                Secretary shall become effective--
                            ``(i) at the beginning of the 
                        academic year following the fiscal year 
                        in which the application is approved; 
                        or
                            ``(ii) at an earlier date 
                        determined by the Secretary.
                    ``(B) Applications deemed approved.--If an 
                application is deemed to have been approved by 
                the Secretary under paragraph (2)(B), the 
                action that is the subject of the application 
                shall become effective--
                            ``(i) on the date that is 18 months 
                        after the date on which the application 
                        is submitted to the Secretary; or
                            ``(ii) at an earlier date 
                        determined by the Secretary.
            ``(6) Statutory construction.--Nothing in this 
        section or any other provision of law, shall be 
        construed to preclude the expansion of grades and 
        related facilities at a Bureau-funded school, if such 
        expansion is paid for with non-Bureau funds. Subject to 
        the availability of appropriated funds the Secretary is 
        authorized to provide the necessary funds needed to 
        supplement the cost of operations and maintenance of 
        such expansion.
    ``(f) Joint Administration.--Administrative, 
transportation, and program cost funds received by Bureau-
funded schools, and any program from the Department of 
Education or any other Federal agency for the purpose of 
providing education or related services, and other funds 
received for such education and related services from 
nonfederally funded programs, shall be apportioned and the 
funds shall be retained at the school.
    ``(g) General Use of Funds.--Funds received by Bureau-
funded schools from the Bureau of Indian Affairs, and under any 
program from the Department of Education or any other Federal 
agency, for the purpose of providing education or related 
services may be used for schoolwide projects to improve the 
educational program for all Indian students.
    ``(h) Study on Adequacy of Funds and Formulas.--
            ``(1) Study.--The Comptroller General of the United 
        States shall conduct a study to determine the adequacy 
        of funding, and formulas used by the Bureau to 
        determine funding, for programs operated by Bureau-
        funded schools, taking into account unique 
        circumstances applicable to Bureau-funded schools. The 
        study shall analyze existing information gathered and 
        contained in germane studies that have been conducted 
        or are currently being conducted with regard to Bureau-
        funded schools.
            ``(2) Action.--Upon completion of the study, the 
        Secretary of the Interior shall take such action as 
        necessary to ensure distribution of the findings of the 
        study to all affected Indian tribes, local school 
        boards, and associations of local school boards.

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

    ``(a) Revision of Standards.--
            ``(1) In general.--The Secretary, in consultation 
        with the Secretary of Education, Indian organizations 
        and tribes, and Bureau-funded schools, shall revise the 
        national standards for home-living (dormitory) 
        situations to include such factors as heating, 
        lighting, cooling, adult-child ratios, needs for 
        counselors (including special needs related to off-
        reservation home-living (dormitory) situations), 
        therapeutic programs, space, and privacy.
            ``(2) Implementation.--Such standards shall be 
        implemented in Bureau-operated schools, and shall serve 
        as minimum standards for contract or grant schools.
            ``(3) Revision after establishment.--Once 
        established, any revisions of such standards shall be 
        developed according to the requirements established 
        under section 1137.
    ``(b) Implementation.--The Secretary shall implement the 
revised standards established under this section immediately 
upon completion of the standards.
    ``(c) Plan.--
            ``(1) In general.--The Secretary shall submit to 
        the appropriate committees of Congress, the tribes, and 
        the affected schools, and publish in the Federal 
        Register, a detailed plan to bring all Bureau-funded 
        schools that provide home-living (dormitory) situations 
        up to the standards established under this section.
            ``(2) Components of plan.--The plan described in 
        paragraph (1) shall include--
                    ``(A) a statement of the relative needs of 
                each Bureau-funded home-living (dormitory) 
                school;
                    ``(B) projected future needs of each 
                Bureau-funded home-living (dormitory) school;
                    ``(C) detailed information on the status of 
                each school in relation to the standards 
                established under this section;
                    ``(D) specific cost estimates for meeting 
                each standard for each such school;
                    ``(E) aggregate cost estimates for bringing 
                all such schools into compliance with the 
                criteria established under this section; and
                    ``(F) specific timelines for bringing each 
                school into compliance with such standards.
    ``(d) Waiver.--
            ``(1) In general.--A tribal governing body or local 
        school board may, in accordance with this subsection, 
        waive the standards established under this section for 
        a school described in subsection (a).
            ``(2) Inappropriate standards.--
                    ``(A) In general.--A tribal governing body, 
                or the local school board so designated by the 
                tribal governing body, may waive, in whole or 
                in part, the standards established under this 
                section if such standards are determined by 
                such body or board to be inappropriate for the 
                needs of students from that tribe.
                    ``(B) Alternative standards.--The tribal 
                governing body or school board involved shall, 
                not later than 60 days after providing a waiver 
                under subparagraph (A) for a school, submit to 
                the Director a proposal for alternative 
                standards that take into account the specific 
                needs of the tribe's children. Such alternative 
                standards shall be established by the Director 
                for the school involved unless specifically 
                rejected by the Director for good cause and in 
                writing provided to the affected tribes or 
                local school board.
    ``(e) Closure for Failure To Meet Standards Prohibited.--No 
school in operation on or before July 1, 1999 (regardless of 
compliance or noncompliance with the standards established 
under this section), may be closed, transferred to another 
authority, or consolidated, and no program of such a school may 
be substantially curtailed, because the school failed to meet 
such standards.

``SEC. 1123. CODIFICATION OF REGULATIONS.

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

``SEC. 1124. SCHOOL BOUNDARIES.

    ``(a) Establishment by Secretary.--The Secretary shall 
establish, by regulation, separate geographical attendance 
areas for each Bureau-funded school.
    ``(b) Establishment by Tribal Body.--In any case where 
there is more than one Bureau-funded school located on an 
Indian reservation, at the direction of the tribal governing 
body, the relevant school boards of the Bureau-funded schools 
on the reservation may, by mutual consent, establish the 
relevant attendance areas for such schools, subject to the 
approval of the tribal governing body. Any such boundaries so 
established shall be accepted by the Secretary.
    ``(c) Boundary Revisions.--
            ``(1) Notice.--On or after July 1, 2001, no 
        geographical attendance area shall be revised or 
        established with respect to any Bureau-funded school 
        unless the tribal governing body or the local school 
        board concerned (if so designated by the tribal 
        governing body) has been afforded--
                    ``(A) at least 6 months notice of the 
                intention of the Bureau to revise or establish 
                such attendance area; and
                    ``(B) the opportunity to propose 
                alternative boundaries.
            ``(2) Revision process.--Any tribe may petition the 
        Secretary for revision of existing attendance area 
        boundaries. The Secretary shall accept such proposed 
        alternative or revised boundaries unless the Secretary 
        finds, after consultation with the affected tribe or 
        tribes, that such revised boundaries do not reflect the 
        needs of the Indian students to be served or do not 
        provide adequate stability to all of the affected 
        programs. The Secretary shall cause such revisions to 
        be published in the Federal Register.
            ``(3) Tribal resolution determination.--Nothing in 
        this section shall deny a tribal governing body the 
        authority, on a continuing basis, to adopt a tribal 
        resolution allowing parents the choice of the Bureau-
        funded school their children may attend, regardless of 
        the attendance boundaries established under this 
        section.
    ``(d) Funding Restrictions.--
            ``(1) In general.--The Secretary shall not deny 
        funding to a Bureau-funded school for any eligible 
        Indian student attending the school solely because that 
        student's home or domicile is outside of the 
        geographical attendance area established for that 
        school under this section.
            ``(2) Transportation.--No funding shall be made 
        available without tribal authorization to enable a 
        school to provide transportation for any student to or 
        from the school and a location outside the approved 
        attendance area of the school.
    ``(e) Reservation as Boundary.--When there is only 1 
Bureau-funded program located on an Indian reservation--
            ``(1) the attendance area for the program shall be 
        the boundaries (established by treaty, agreement, 
        legislation, court decisions, or executive decisions 
        and as accepted by the tribe) of the reservation 
        served; and
            ``(2) those students residing near the reservation 
        shall also receive services from such program.
    ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
            ``(1) In general.--Notwithstanding any geographical 
        attendance areas, attendance at off-reservation home-
        living (dormitory) schools shall include students 
        requiring special emphasis programs to be implemented 
        at each off-reservation home-living (dormitory) school.
            ``(2) Coordination.--Such attendance shall be 
        coordinated between education line officers, the 
        family, and the referring and receiving programs.

``SEC. 1125. FACILITIES CONSTRUCTION.

    ``(a) National Survey of Facilities Conditions.--
            ``(1) In general.--Not later than 12 months after 
        the date of enactment of the Native American Education 
        Improvement Act of 2001, the General Accounting Office 
        shall compile, collect, and secure the data that are 
        needed to prepare a national survey of the physical 
        conditions of all Bureau-funded school facilities.
            ``(2) Data and methodologies.--In preparing the 
        national survey required under paragraph (1), the 
        General Accounting Office shall use the following data 
        and methodologies:
                    ``(A) The existing Department of Defense 
                formula for determining the condition and 
                adequacy of Department of Defense facilities.
                    ``(B) Data related to conditions of Bureau-
                funded schools that has previously been 
                compiled, collected, or secured from whatever 
                source derived so long as the data are 
                accurate, relevant, timely, and necessary to 
                the survey.
                    ``(C) The methodologies of the American 
                Institute of Architects, or other accredited 
                and reputable architecture or engineering 
                associations.
            ``(3) Consultations.--
                    ``(A) In general.--In carrying out the 
                survey required under paragraph (1), the 
                General Accounting Office shall, to the maximum 
                extent practicable, consult (and if necessary 
                contract) with national, regional, and tribal 
                Indian education organizations to ensure that a 
                complete and accurate national survey is 
                achieved.
                    ``(B) Requests for information.--All 
                Bureau-funded schools shall comply with 
                reasonable requests for information by the 
                General Accounting Office and shall respond to 
                such requests in a timely fashion.
            ``(4) Submission.--Not later than 2 years after the 
        date of enactment of the Native American Education 
        Improvement Act of 2001, the General Accounting Office 
        shall submit the results of the national survey 
        conducted under paragraph (1) to the Committee on 
        Indian Affairs, the Committee on Health, Education, 
        Labor, and Pensions, and the Committee on 
        Appropriations of the Senate and the Committee on 
        Resources, the Committee on Education and the 
        Workforce, and the Committee on Appropriations of the 
        House of Representatives and to the Secretary. The 
        Secretary shall submit the results of the national 
        survey to school boards of Bureau-funded schools and 
        their respective tribes.
            ``(5) Negotiated rulemaking committee.--
                    ``(A) In general.--Not later than 6 months 
                after the date on which the submission is made 
                under paragraph (4), the Secretary shall 
                establish a negotiated rulemaking committee 
                pursuant to section 1138(b)(3). The negotiated 
                rulemaking committee shall prepare and submit 
                to the Secretary the following:
                            ``(i) A catalog of the condition of 
                        school facilities at all Bureau-funded 
                        schools that--
                                    ``(I) incorporates the 
                                findings from the General 
                                Accounting Office study 
                                evaluating and comparing school 
                                systems of the Department of 
                                Defense and the Bureau of 
                                Indian Affairs;
                                    ``(II) rates such 
                                facilities with respect to the 
                                rate of deterioration and 
                                useful life of structures and 
                                major systems;
                                    ``(III) establishes a 
                                routine maintenance schedule 
                                for each facility;
                                    ``(IV) identifies the 
                                complementary educational 
                                facilities that do not exist 
                                but that are needed; and
                                    ``(V) makes projections on 
                                the amount of funds needed to 
                                keep each school viable, 
                                consistent with the 
                                accreditation standards 
                                required pursuant to this Act.
                            ``(ii) A school replacement and new 
                        construction report that determines 
                        replacement and new construction need, 
                        and a formula for the equitable 
                        distribution of funds to address such 
                        need, for Bureau-funded schools. Such 
                        formula shall utilize necessary factors 
                        in determining an equitable 
                        distribution of funds, including--
                                    ``(I) the size of school;
                                    ``(II) school enrollment;
                                    ``(III) the age of the 
                                school;
                                    ``(IV) the condition of the 
                                school;
                                    ``(V) environmental factors 
                                at the school; and
                                    ``(VI) school isolation.
                            ``(iii) A renovation repairs report 
                        that determines renovation need (major 
                        and minor), and a formula for the 
                        equitable distribution of funds to 
                        address such need, for Bureau-funded 
                        schools. Such report shall identify 
                        needed repairs or renovations with 
                        respect to a facility, or a part of a 
                        facility, or the grounds of the 
                        facility, to remedy a need based on 
                        disabilities access or health and 
                        safety changes to a facility. The 
                        formula developed shall utilize 
                        necessary factors in determining an 
                        equitable distribution of funds, 
                        including the factors described in 
                        clause (ii).
                    ``(B) Submission of reports.--Not later 
                than 24 months after the negotiated rulemaking 
                committee is established under subparagraph 
                (A), the reports described in clauses (ii) and 
                (iii) of subparagraph (A) shall be submitted to 
                the committees of Congress referred to in 
                paragraph (4), the national and regional Indian 
                education organizations, and to all school 
                boards of Bureau-funded schools and their 
                respective tribes.
            ``(6) Facilities information systems support 
        database.--The Secretary shall develop a Facilities 
        Information Systems Support Database to maintain and 
        update the information contained in the reports under 
        clauses (ii) and (iii) of paragraph (5)(A) and the 
        information contained in the survey conducted under 
        paragraph (1). The system shall be updated every 3 
        years by the Bureau of Indian Affairs and monitored by 
        General Accounting Office, and shall be made available 
        to school boards of Bureau-funded schools and their 
        respective tribes, and Congress.
    ``(b) Compliance With Health and Safety Standards.--
            ``(1) In general.--The Secretary shall immediately 
        begin to bring all schools, dormitories, and other 
        Indian education-related facilities operated by the 
        Bureau or under contract or grant with the Bureau, into 
        compliance with--
                    ``(A) all applicable tribal, Federal, or 
                State health and safety standards, whichever 
                provides greater protection (except that the 
                tribal standards to be applied shall be no 
                greater than any otherwise applicable Federal 
                or State standards);
                    ``(B) section 504 of the Rehabilitation Act 
                of 1973; and
                    ``(C) the Americans with Disabilities Act 
                of 1990.
            ``(2) No termination required.--Nothing in this 
        subsection requires termination of the operations of 
        any facility that--
                    ``(A) does not comply with the provisions 
                and standards described in paragraph (1); and
                    ``(B) is in use on the date of enactment of 
                the Native American Education Improvement Act 
                of 2001.
    ``(c) Compliance Plan.--At the time that the annual budget 
request for Bureau educational services is presented, the 
Secretary shall submit to the appropriate committees of 
Congress a detailed plan to bring all facilities covered under 
subsection (a) into compliance with the standards referred to 
in that subsection that includes--
            ``(1) detailed information on the status of each 
        facility's compliance with such standards;
            ``(2) specific cost estimates for meeting such 
        standards at each school; and
            ``(3) specific timelines for bringing each school 
        into compliance with such standards.
    ``(d) Construction Priorities.--
            ``(1) System to establish priorities.--On an annual 
        basis, the Secretary shall submit to the appropriate 
        committees of Congress and cause to be published in the 
        Federal Register, the system used to establish 
        priorities for replacement and construction projects 
        for Bureau-funded schools and home-living schools, 
        including boarding schools and dormitories. At the time 
        any budget request for education is presented, the 
        Secretary shall publish in the Federal Register and 
        submit with the budget request the current list of all 
        Bureau-funded school construction priorities.
            ``(2) Long-term construction and replacement 
        list.--In addition to the plan submitted under 
        subsection (c), the Secretary shall--
                    ``(A) not later than 18 months after the 
                date of enactment of the Native American 
                Education Improvement Act of 2001, establish a 
                long-term construction and replacement list for 
                all Bureau-funded schools;
                    ``(B) using the list prepared under 
                subparagraph (A), propose a list for the 
                orderly replacement of all Bureau-funded 
                education-related facilities over a period of 
                40 years to enable planning and scheduling of 
                budget requests;
                    ``(C) cause the list prepared under 
                subsection (B) to be published in the Federal 
                Register and allow a period of not less than 
                120 days for public comment;
                    ``(D) make such revisions to the list 
                prepared under subparagraph (B) as are 
                appropriate based on the comments received; and
                    ``(E) cause the final list to be published 
                in the Federal Register.
            ``(3) Effect on other list.--Nothing in this 
        section shall interfere with or change in any way the 
        construction priority list as it existed on the day 
        before the date of enactment of the Native American 
        Education Improvement Act of 2001.
    ``(e) Hazardous Condition at Bureau-Funded School.--
            ``(1) Closure, consolidation, or curtailment.--
                    ``(A) In general.--A Bureau-funded school 
                may be closed or consolidated, or the programs 
                of a Bureau-funded school may be substantially 
                curtailed, by reason of facility conditions 
                that constitute an immediate hazard to health 
                and safety only if a health and safety officer 
                of the Bureau and an individual designated at 
                the beginning of the school year by the tribe 
                involved under subparagraph (B) determine that 
                such conditions exist at a facility of the 
                Bureau-funded school.
                    ``(B) Designation of individual by tribe.--
                To be designated by a tribe for purposes of 
                subparagraph (A), an individual shall--
                            ``(i) be a licensed or certified 
                        facilities safety inspector;
                            ``(ii) have demonstrated experience 
                        in the inspection of facilities for 
                        health and safety purposes with respect 
                        to occupancy; or
                            ``(iii) have a significant 
                        educational background in the health 
                        and safety of facilities with respect 
                        to occupancy.
                    ``(C) Inspection.--After making a 
                determination described in subparagraph (A), 
                the Bureau health and safety officer and the 
                individual designated by the tribe shall 
                conduct an inspection of the conditions of such 
                facility in order to determine whether 
                conditions at such facility constitute an 
                immediate hazard to health and safety. Such 
                inspection shall be completed as expeditiously 
                as practicable, but not later than 20 days 
                after the date on which the action described in 
                subparagraph (A) is taken.
                    ``(D) Failure to concur.--If the Bureau 
                health and safety officer, and the individual 
                designated by the tribe, conducting the 
                inspection of a facility required under 
                subparagraph (C) do not concur that conditions 
                at the facility constitute an immediate hazard 
                to health and safety, such officer and 
                individual shall immediately notify the tribal 
                governing body and provide written information 
                related to their determinations.
                    ``(E) Consideration by tribal governing 
                body.--Not later than 10 days after a tribal 
                governing body receives notice under 
                subparagraph (D), the tribal governing body 
                shall consider all information relating to the 
                determinations of the Bureau health and safety 
                officer and the individual designated by the 
                tribe and make a determination regarding the 
                closure, consolidation, or curtailment 
                involved.
                    ``(F) Agreement to close, consolidate, or 
                curtail.--
                            ``(i) In general.--If the Bureau 
                        health and safety officer and the 
                        individual designated by the tribe 
                        conducting the inspection of a facility 
                        required under subparagraph (C), concur 
                        that conditions at the facility 
                        constitute an immediate hazard to 
                        health and safety, or if the tribal 
                        governing body makes such a 
                        determination under subparagraph (E), 
                        the facility involved shall be closed 
                        immediately.
                            ``(ii) Reopening of facility if no 
                        immediate hazard found to exist.--If 
                        the Bureau health and safety officer or 
                        the individual designated by the tribe 
                        conducting the inspection of a facility 
                        required under subparagraph (C) 
                        determines that conditions at the 
                        facility do not constitute an immediate 
                        hazard to health and safety, any 
                        consolidation or curtailment that was 
                        made under this paragraph shall 
                        immediately cease and any school closed 
                        by reason of conditions at the facility 
                        shall be reopened immediately.
                    ``(G) General closure report.--If a Bureau-
                funded school is temporarily closed or 
                consolidated or the programs of a Bureau-funded 
                school are temporarily substantially curtailed 
                under this subsection and the Secretary 
                determines that the closure, consolidation, or 
                curtailment will exceed 1 year, the Secretary 
                shall submit to the appropriate committees of 
                Congress, the affected tribe, and the local 
                school board, not later than 90 days after the 
                date on which the closure, consolidation, or 
                curtailment was initiated, a report that 
                specifies--
                            ``(i) the reasons for such 
                        temporary action;
                            ``(ii) the actions the Secretary is 
                        taking to eliminate the conditions that 
                        constitute the hazard;
                            ``(iii) an estimated date by which 
                        the actions described in clause (ii) 
                        will be concluded; and
                            ``(iv) a plan for providing 
                        alternate education services for 
                        students enrolled at the school that is 
                        to be closed.
            ``(2) Nonapplication of certain standards for 
        temporary facility use.--
                    ``(A) Classroom activities.--The Secretary 
                shall permit the local school board to 
                temporarily utilize facilities adjacent to the 
                school, or satellite facilities, if such 
                facilities are suitable for conducting 
                classroom activities. In permitting the use of 
                facilities under the preceding sentence, the 
                Secretary may waive applicable minor standards 
                under section 1121 relating to such facilities 
                (such as the required number of exit lights or 
                configuration of restrooms) so long as such 
                waivers do not result in the creation of an 
                environment that constitutes an immediate and 
                substantial threat to the health, safety, and 
                life of students and staff.
                    ``(B) Administrative activities.--The 
                provisions of subparagraph (A) shall apply with 
                respect to administrative personnel if the 
                facilities involved are suitable for activities 
                performed by such personnel.
                    ``(C) Temporary.--In this paragraph, the 
                term `temporary' means--
                            ``(i) with respect to a school that 
                        is to be closed for not more than 1 
                        year, 3 months or less; and
                            ``(ii) with respect to a school 
                        that is to be closed for not less than 
                        1 year, a time period determined 
                        appropriate by the Bureau.
            ``(3) Treatment of closure.--Any closure of a 
        Bureau-funded school under this subsection for a period 
        that exceeds 30 days but is less than 1 year, shall be 
        treated by the Bureau as an emergency facility 
        improvement and repair project.
            ``(4) Use of funds.--With respect to a Bureau-
        funded school that is closed under this subsection, the 
        tribal governing body, or the designated local school 
        board of each Bureau-funded school, involved may 
        authorize the use of funds allocated pursuant to 
        section 1127, to abate the hazardous conditions without 
        further action by Congress.
    ``(f) Funding Requirement.--
            ``(1) Distribution of funds.--Beginning with the 
        first fiscal year following the date of enactment of 
        the Native American Education Improvement Act of 2001, 
        all funds appropriated to the budget accounts for the 
        operations and maintenance of Bureau-funded schools 
        shall be distributed by formula to the schools. No 
        funds from these accounts may be retained or segregated 
        by the Bureau to pay for administrative or other costs 
        of any facilities branch or office, at any level of the 
        Bureau.
            ``(2) Requirements for certain uses.--No funds 
        shall be withheld from the distribution to the budget 
        of any school operated under contract or grant by the 
        Bureau for maintenance or any other facilities or road-
        related purpose, unless such school has consented, as a 
        modification to the contract or in writing for grants 
        schools, to the withholding of such funds, including 
        the amount thereof, the purpose for which the funds 
        will be used, and the timeline for the services to be 
        provided. The school may, at the end of any fiscal 
        year, cancel an agreement under this paragraph upon 
        giving the Bureau 30 days notice of its intent to do 
        so.
    ``(g) No Reduction in Federal Funding.--Nothing in this 
section shall diminish any Federal funding due to the receipt 
by the school of funding for facilities improvement or 
construction from a State or any other source.

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

    ``(a) Formulation and Establishment of Policy and 
Procedure; Supervision of Programs and Expenditures.--The 
Secretary shall vest in the Assistant Secretary for Indian 
Affairs all functions with respect to formulation and 
establishment of policy and procedure and supervision of 
programs and expenditures of Federal funds for the purpose of 
Indian education administered by the Bureau. The Assistant 
Secretary shall carry out such functions through the Director 
of the Office of Indian Education Programs.
    ``(b) Direction and Supervision of Personnel Operations.--
            ``(1) In general.--Not later than 180 days after 
        the date of enactment of the Native American Education 
        Improvement Act of 2001, the Director of the Office 
        shall direct and supervise the operations of all 
        personnel directly and substantially involved in the 
        provision of education program services by the Bureau, 
        including school or institution custodial or 
        maintenance personnel, and personnel responsible for 
        contracting, procurement, and finance functions 
        connected with school operation programs.
            ``(2) Transfers.--The Assistant Secretary for 
        Indian Affairs shall, not later than 180 days after the 
        date of enactment of the Native American Education 
        Improvement Act of 2001, coordinate the transfer of 
        functions relating to procurements for, contracts of, 
        operation of, and maintenance of schools and other 
        support functions to the Director.
    ``(c) Inherent Federal Function.--For purposes of this Act, 
all functions relating to education that are located at the 
Area or Agency level and performed by an education line officer 
shall be subject to contract under the Indian Self-
Determination and Education Assistance Act, unless determined 
by the Secretary to be inherently Federal functions as defined 
in section 1141(12).
    ``(d) Evaluation of Programs; Services and Support 
Functions; Technical and Coordinating Assistance.--Education 
personnel who are under the direction and supervision of the 
Director of the Office of Indian Education Programs in 
accordance with subsection (b)(1) shall--
            ``(1) monitor and evaluate Bureau education 
        programs;
            ``(2) provide all services and support functions 
        for education programs with respect to personnel 
        matters involving staffing actions and functions; and
            ``(3) provide technical and coordinating assistance 
        in areas such as procurement, contracting, budgeting, 
        personnel, curriculum, and operation and maintenance of 
        school facilities.
    ``(e) Construction, Improvement, Operation, and Maintenance 
of Facilities.--
            ``(1) Plan for construction.--The Assistant 
        Secretary shall submit as part of the annual budget a 
        plan--
                    ``(A) for school facilities to be 
                constructed under section 1125(c);
                    ``(B) for establishing priorities among 
                projects and for the improvement and repair of 
                educational facilities, which together shall 
                form the basis for the distribution of 
                appropriated funds; and
                    ``(C) for capital improvements to be made 
                over the 5 succeeding years.
            ``(2) Program for operation and maintenance.--
                    ``(A) Establishment.--The Assistant 
                Secretary shall establish a program, including 
                the distribution of appropriated funds, for the 
                operation and maintenance of education 
                facilities. Such program shall include--
                            ``(i) a method of computing the 
                        amount necessary for each educational 
                        facility;
                            ``(ii) similar treatment of all 
                        Bureau-funded schools;
                            ``(iii) a notice of an allocation 
                        of appropriated funds from the Director 
                        of the Office of Indian Education 
                        Programs directly to the education line 
                        officers and appropriate school 
                        officials;
                            ``(iv) a method for determining the 
                        need for, and priority of, facilities 
                        repair and maintenance projects, both 
                        major and minor (to be determined, 
                        through the conduct by the Assistant 
                        Secretary, of a series of meetings at 
                        the agency and area level with 
                        representatives of the Bureau-funded 
                        schools in those areas and agencies to 
                        receive comment on the lists and 
                        prioritization of such projects); and
                            ``(v) a system for the conduct of 
                        routine preventive maintenance.
                    ``(B) Local supervisors.--The appropriate 
                education line officers shall make arrangements 
                for the maintenance of education facilities 
                with the local supervisors of the Bureau 
                maintenance personnel. The local supervisors of 
                Bureau maintenance personnel shall take 
                appropriate action to implement the decisions 
                made by the appropriate education line 
                officers, except that no funds under this 
                chapter may be authorized for expenditure 
                unless such appropriate education line officer 
                is assured that the necessary maintenance has 
                been, or will be, provided in a reasonable 
                manner.
            ``(3) Implementation.--This subsection shall be 
        implemented as soon as practicable after the date of 
        enactment of the Native American Education Improvement 
        Act of 2001.
    ``(f) Acceptance of Gifts and Bequests.--
            ``(1) Guidelines.--Notwithstanding any other 
        provision of law, the Director of the Office shall 
        promulgate guidelines for the establishment and 
        administration of mechanisms for the acceptance of 
        gifts and bequests for the use and benefit of 
        particular schools or designated Bureau-operated 
        education programs, including, in appropriate cases, 
        the establishment and administration of trust funds.
            ``(2) Monitoring and reports.--Except as provided 
        in paragraph (3), in a case in which a Bureau-operated 
        education program is the beneficiary of such a gift or 
        bequest, the Director shall--
                    ``(A) make provisions for monitoring use of 
                the gift or bequest; and
                    ``(B) submit a report to the appropriate 
                committees of Congress that describes the 
                amount and terms of such gift or bequest, the 
                manner in which such gift or bequest shall be 
                used, and any results achieved by such use.
            ``(3) Exception.--The requirements of paragraph (2) 
        shall not apply in the case of a gift or bequest that 
        is valued at $5,000 or less.
    ``(g) Definition of Functions.--For the purpose of this 
section, the term `functions' includes powers and duties.

``SEC. 1127. ALLOTMENT FORMULA.

    ``(a) Factors Considered; Revision To Reflect Standards.--
            ``(1) Formula.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1137, a 
        formula for determining the minimum annual amount of 
        funds necessary to sustain each Bureau-funded school. 
        In establishing such formula, the Secretary shall 
        consider--
                    ``(A) the number of eligible Indian 
                students served and total student population of 
                the school;
                    ``(B) special cost factors, such as--
                            ``(i) the isolation of the school;
                            ``(ii) the need for special 
                        staffing, transportation, or 
                        educational programs;
                            ``(iii) food and housing costs;
                            ``(iv) maintenance and repair costs 
                        associated with the physical condition 
                        of the educational facilities;
                            ``(v) special transportation and 
                        other costs of isolated and small 
                        schools;
                            ``(vi) the costs of home-living 
                        (dormitory) arrangements, where 
                        determined necessary by a tribal 
                        governing body or designated school 
                        board;
                            ``(vii) costs associated with 
                        greater lengths of service by education 
                        personnel;
                            ``(viii) the costs of therapeutic 
                        programs for students requiring such 
                        programs; and
                            ``(ix) special costs for gifted and 
                        talented students;
                    ``(C) the cost of providing academic 
                services which are at least equivalent to those 
                provided by public schools in the State in 
                which the school is located;
                    ``(D) whether the available funding will 
                enable the school involved to comply with the 
                accreditation standards applicable to the 
                school under section 1121; and
                    ``(E) such other relevant factors as the 
                Secretary determines are appropriate.
            ``(2) Revision of formula.--
                    ``(A) In general.--Upon the establishment 
                of the standards required in section 1122, the 
                Secretary shall revise the formula established 
                under this subsection to reflect the cost of 
                funding such standards.
                    ``(B) Review of formula.--Not later than 
                January 1, 2003, the Secretary shall review the 
                formula established under this section and 
                shall take such steps as are necessary to 
                increase the availability of counseling and 
                therapeutic programs for students in off-
                reservation home-living (dormitory) schools and 
                other Bureau-operated residential facilities.
                    ``(C) Review of standards.--Concurrent with 
                such action, the Secretary shall review the 
                standards established under section 1122 to be 
                certain that adequate provision is made for 
                parental notification regarding, and consent 
                for, such counseling and therapeutic programs.
    ``(b) Pro Rata Allotment.--Notwithstanding any other 
provision of law, Federal funds appropriated for the general 
local operation of Bureau-funded schools shall be allotted pro 
rata in accordance with the formula established under 
subsection (a).
    ``(c) Annual Adjustment; Reservation of Amount for School 
Board Activities.--
            ``(1) Annual adjustment.--For fiscal year 2003, and 
        for each subsequent fiscal year, the Secretary shall 
        adjust the formula established under subsection (a) to 
        ensure that the formula does the following:
                    ``(A) Uses a weighted unit of 1.2 for each 
                eligible Indian student enrolled in the seventh 
                and eighth grades of the school in considering 
                the number of eligible Indian students served 
                by the school.
                    ``(B) Considers a school with an enrollment 
                of less than 50 eligible Indian students as 
                having an average daily attendance of 50 
                eligible Indian students for purposes of 
                implementing the adjustment factor for small 
                schools.
                    ``(C) Takes into account the provision of 
                residential services on less than a 9-month 
                basis at a school when the school board and 
                supervisor of the school determine that a less 
                than 9-month basis will be implemented for the 
                school year involved.
                    ``(D) Uses a weighted unit of 2.0 for each 
                eligible Indian student that--
                            ``(i) is gifted and talented; and
                            ``(ii) is enrolled in the school on 
                        a full-time basis,
                in considering the number of eligible Indian 
                students served by the school.
                    ``(E) Uses a weighted unit of 0.25 for each 
                eligible Indian student who is enrolled in a 
                year-long credit course in an Indian or Native 
                language as part of the regular curriculum of a 
                school, in considering the number of eligible 
                Indian students served by such school. The 
                adjustment required under this subparagraph 
                shall be used for such school after--
                            ``(i) the certification of the 
                        Indian or Native language curriculum by 
                        the school board of such school to the 
                        Secretary, together with an estimate of 
                        the number of full-time students 
                        expected to be enrolled in the 
                        curriculum in the second school year 
                        for which the certification is made; 
                        and
                            (ii) the funds appropriated for 
                        allotment under this section are 
                        designated by the appropriations Act 
                        appropriating such funds as the amount 
                        necessary to implement such adjustment 
                        at such school without reducing 
                        allotments made under this section to 
                        any school by virtue of such 
                        adjustment.
            ``(2) Reservation of amount.--
                    ``(A) In general.--From the funds allotted 
                in accordance with the formula established 
                under subsection (a) for each Bureau school, 
                the local school board of such school may 
                reserve an amount which does not exceed the 
                greater of--
                            ``(i) $8,000; or
                            ``(ii) the lesser of--
                                    ``(I) $15,000; or
                                    ``(II) 1 percent of such 
                                allotted funds,

                for school board activities for such school, 
                including (notwithstanding any other provision 
                of law) meeting expenses and the cost of 
                membership in, and support of, organizations 
                engaged in activities on behalf of Indian 
                education.
                    ``(B) Training.--
                            ``(i) In general.--Each local 
                        school board, and any agency school 
                        board that serves as a local school 
                        board for any grant or contract school, 
                        shall ensure that each individual who 
                        is a new member of the school board 
                        receives, within 1 year after the 
                        individual becomes a member of the 
                        school board, 40 hours of training 
                        relevant to that individual's service 
                        on the board.
                            ``(ii) Types of training.--Such 
                        training may include training 
                        concerning legal issues pertaining to 
                        Bureau-funded schools, legal issues 
                        pertaining to school boards, ethics, 
                        and other topics determined to be 
                        appropriate by the school board.
                            ``(iii) Recommendation.--The 
                        training described in this subparagraph 
                        shall not be required, but is 
                        recommended, for a tribal governing 
                        body that serves in the capacity of a 
                        school board.
    ``(d) Reservation of Amount for Emergencies.--
            ``(1) In general.--The Secretary shall reserve from 
        the funds available for distribution for each fiscal 
        year under this section an amount that, in the 
        aggregate, equals 1 percent of the funds available for 
        such purpose for that fiscal year, to be used, at the 
        discretion of the Director of the Office of Indian 
        Education Programs, to meet emergencies and unforeseen 
        contingencies affecting the education programs funded 
        under this section.
            ``(2) Use of funds.--Funds reserved under this 
        subsection may be expended only for education services 
        or programs, including emergency repairs of educational 
        facilities, at a schoolsite (as defined by section 
        5204(c)(2) of the Tribally Controlled Schools Act of 
        1988).
            ``(3) Availability of funds.--Funds reserved under 
        this subsection shall remain available without fiscal 
        year limitation until expended. However, the aggregate 
        amount available from all fiscal years may not exceed 1 
        percent of the current year funds.
            ``(4) Report.--When the Secretary makes funds 
        available under this subsection, the Secretary shall 
        report such action to the appropriate committees of 
        Congress within the annual budget submission.
    ``(e) Supplemental Appropriations.--Supplemental 
appropriations enacted to meet increased pay costs attributable 
to school level personnel shall be distributed under this 
section.
    ``(f) Eligible Indian Student Defined.--In this section, 
the term `eligible Indian student' means a student who--
            ``(1) is a member of, or is at least \1/4\ degree 
        Indian blood descendant of a member of, a tribe that is 
        eligible for the special programs and services provided 
        by the United States through the Bureau to Indians 
        because of their status as Indians;
            ``(2) resides on or near a reservation or meets the 
        criteria for attendance at a Bureau off-reservation 
        home-living school; and
            ``(3) is enrolled in a Bureau-funded school.
    ``(g) Tuition.--
            ``(1) In general.--No eligible Indian student or a 
        student attending a Bureau school under paragraph 
        (2)(C) may be charged tuition for attendance at a 
        Bureau school or contract or grant school.
            ``(2) Attendance of non-indian students at bureau 
        schools.--The Secretary may permit the attendance at a 
        Bureau school of a student who is not an eligible 
        Indian student if--
                    ``(A) the Secretary determines that the 
                student's attendance will not adversely affect 
                the school's program for eligible Indian 
                students because of cost, overcrowding, or 
                violation of standards or accreditation;
                    ``(B) the school board consents;
                    ``(C) the student is a dependent of a 
                Bureau, Indian Health Service, or tribal 
                government employee who lives on or near the 
                school site; or
                    ``(D) tuition is paid for the student that 
                is not more than the tuition charged by the 
                nearest public school district for out-of-
                district students and shall be in addition to 
                the school's allocation under this section.
            ``(3) Attendance of non-indian students at contract 
        and grant schools.--The school board of a contract or 
        grant school may permit students who are not eligible 
        Indian students under this subsection to attend its 
        contract school or grant school. Any tuition collected 
        for those students shall be in addition to funding 
        received under this section.
    ``(h) Funds Available Without Fiscal Year Limitation.--
Notwithstanding any other provision of law, at the election of 
the school board of a Bureau school made at any time during the 
fiscal year, a portion equal to not more than 15 percent of the 
funds allocated with respect to a school under this section for 
any fiscal year shall remain available to the school for 
expenditure without fiscal year limitation. The Assistant 
Secretary shall take such steps as are necessary to implement 
this subsection.
    ``(i) Students at Richfield Dormitory, Richfield, Utah.--
            ``(1) In general.--Tuition for the instruction of 
        each out-of-State Indian student in a home-living 
        situation at the Richfield dormitory in Richfield, 
        Utah, who attends Sevier County high schools in 
        Richfield, Utah, for an academic year, shall be paid 
        from Indian school equalization program funds 
        authorized in this section and section 1129, at a rate 
        not to exceed the weighted amount provided for under 
        subsection (b) for a student for that year.
            ``(2) No administrative cost funds.--No additional 
        administrative cost funds shall be provided under this 
        part to pay for administrative costs relating to the 
        instruction of the students.

``SEC. 1128. ADMINISTRATIVE COST GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) Administrative cost.--
                    ``(A) In general.--The term `administrative 
                cost' means the cost of necessary 
                administrative functions which--
                            ``(i) the tribe or tribal 
                        organization incurs as a result of 
                        operating a tribal elementary or 
                        secondary educational program;
                            ``(ii) are not customarily paid by 
                        comparable Bureau-operated programs out 
                        of direct program funds; and
                            ``(iii) are either--
                                    ``(I) normally provided for 
                                comparable Bureau programs by 
                                Federal officials using 
                                resources other than Bureau 
                                direct program funds; or
                                    ``(II) are otherwise 
                                required of tribal self-
                                determination program operators 
                                by law or prudent management 
                                practice.
                    ``(B) Inclusions.--The term `administrative 
                cost' may include--
                            ``(i) contract or grant (or other 
                        agreement) administration;
                            ``(ii) executive, policy, and 
                        corporate leadership and 
                        decisionmaking;
                            ``(iii) program planning, 
                        development, and management;
                            ``(iv) fiscal, personnel, property, 
                        and procurement management;
                            ``(v) related office services and 
                        record keeping; and
                            ``(vi) costs of necessary 
                        insurance, auditing, legal, safety and 
                        security services.
            ``(2) Bureau elementary and secondary functions.--
        The term `Bureau elementary and secondary functions' 
        means--
                    ``(A) all functions funded at Bureau 
                schools by the Office;
                    ``(B) all programs--
                            ``(i) funds for which are 
                        appropriated to other agencies of the 
                        Federal Government; and
                            ``(ii) which are administered for 
                        the benefit of Indians through Bureau 
                        schools; and
                    ``(C) all operation, maintenance, and 
                repair funds for facilities and government 
                quarters used in the operation or support of 
                elementary and secondary education functions 
                for the benefit of Indians, from whatever 
                source derived.
            ``(3) Direct cost base.--
                    ``(A) In general.--Except as otherwise 
                provided in subparagraph (B), the direct cost 
                base of a tribe or tribal organization for the 
                fiscal year is the aggregate direct cost 
                program funding for all tribal elementary or 
                secondary educational programs operated by the 
                tribe or tribal organization during--
                            ``(i) the second fiscal year 
                        preceding such fiscal year; or
                            ``(ii) if such programs have not 
                        been operated by the tribe or tribal 
                        organization during the two preceding 
                        fiscal years, the first fiscal year 
                        preceding such fiscal year.
                    ``(B) Functions not previously operated.--
                In the case of Bureau elementary or secondary 
                education functions which have not previously 
                been operated by a tribe or tribal organization 
                under contract, grant, or agreement with the 
                Bureau, the direct cost base for the initial 
                year shall be the projected aggregate direct 
                cost program funding for all Bureau elementary 
                and secondary functions to be operated by the 
                tribe or tribal organization during that fiscal 
                year.
            ``(4) Maximum base rate.--The term `maximum base 
        rate' means 50 percent.
            ``(5) Minimum base rate.--The term `minimum base 
        rate' means 11 percent.
            ``(6) Standard direct cost base.--The term 
        `standard direct cost base' means $600,000.
            ``(7) Tribal elementary or secondary educational 
        programs.--The term `tribal elementary or secondary 
        educational programs' means all Bureau elementary and 
        secondary functions, together with any other Bureau 
        programs or portions of programs (excluding funds for 
        social services that are appropriated to agencies other 
        than the Bureau and are funded through the Bureau, 
        funds for major subcontracts, construction, and other 
        major capital expenditures, and unexpended funds 
        carried over from prior years) which share common 
        administrative cost functions, that are operated 
        directly by a tribe or tribal organization under a 
        contract, grant, or agreement with the Bureau.
    ``(b) Grants; Effect Upon Appropriated Amounts.--
            ``(1) Grants.--Subject to the availability of 
        funds, the Secretary shall provide grants to each tribe 
        or tribal organization operating a contract school or 
        grant school in the amount determined under this 
        section with respect to the tribe or tribal 
        organization for the purpose of paying the 
        administrative and indirect costs incurred in operating 
        contract or grant schools, provided that no school 
        operated as a stand-alone institution shall receive 
        less than $200,000 per year for these purposes, in 
        order to--
                    ``(A) enable tribes and tribal 
                organizations operating such schools, without 
                reducing direct program services to the 
                beneficiaries of the program, to provide all 
                related administrative overhead services and 
                operations necessary to meet the requirements 
                of law and prudent management practice; and
                    ``(B) carry out other necessary support 
                functions which would otherwise be provided by 
                the Secretary or other Federal officers or 
                employees, from resources other than direct 
                program funds, in support of comparable Bureau-
                operated programs.
            ``(2) Effect upon appropriated amounts.--Amounts 
        appropriated to fund the grants provided under this 
        section shall be in addition to, and shall not reduce, 
        the amounts appropriated for the program being 
        administered by the contract or grant school.
    ``(c) Determination of Grant Amount.--
            ``(1) In general.--The amount of the grant provided 
        to each tribe or tribal organization under this section 
        for each fiscal year shall be determined by applying 
        the administrative cost percentage rate of the tribe or 
        tribal organization to the aggregate of the Bureau 
        elementary and secondary functions operated by the 
        tribe or tribal organization for which funds are 
        received from or through the Bureau.
            ``(2) Direct cost base funds.--The Secretary 
        shall--
                    ``(A) reduce the amount of the grant 
                determined under paragraph (1) to the extent 
                that payments for administrative costs are 
                actually received by an Indian tribe or tribal 
                organization under any Federal education 
                program included in the direct cost base of the 
                tribe or tribal organization; and
                    ``(B) take such actions as may be necessary 
                to be reimbursed by any other department or 
                agency of the Federal Government for the 
                portion of grants made under this section for 
                the costs of administering any program for 
                Indians that is funded by appropriations made 
                to such other department or agency.
    ``(d) Administrative Cost Percentage Rate.--
            ``(1) In general.--For purposes of this section, 
        the administrative cost percentage rate for a contract 
        or grant school for a fiscal year is equal to the 
        percentage determined by dividing--
                    ``(A) the sum of--
                            ``(i) the amount equal to--
                                    ``(I) the direct cost base 
                                of the tribe or tribal 
                                organization for the fiscal 
                                year, multiplied by
                                    ``(II) the minimum base 
                                rate; plus
                            ``(ii) the amount equal to--
                                    ``(I) the standard direct 
                                cost base; multiplied by
                                    ``(II) the maximum base 
                                rate; by
                    ``(B) the sum of--
                            ``(i) the direct cost base of the 
                        tribe or tribal organization for the 
                        fiscal year; plus
                            ``(ii) the standard direct cost 
                        base.
            ``(2) Rounding.--The administrative cost percentage 
        rate shall be determined to the \1/100\ of a decimal 
        point.
            ``(3) Applicability.--The administrative cost 
        percentage rate determined under this subsection shall 
        not apply to other programs operated by the tribe or 
        tribal organization.
    ``(e) Combining Funds.--
            ``(1) In general.--Funds received by a tribe or 
        contract or grant school as grants under this section 
        for tribal elementary or secondary educational programs 
        may be combined by the tribe or contract or grant 
        school into a single administrative cost account 
        without the necessity of maintaining separate funding 
        source accounting.
            ``(2) Indirect cost funds.--Indirect cost funds for 
        programs at the school which share common 
        administrative services with tribal elementary or 
        secondary educational programs may be included in the 
        administrative cost account described in paragraph (1).
    ``(f) Availability of Funds.--Funds received as grants 
under this section with respect to tribal elementary or 
secondary education programs shall remain available to the 
contract or grant school without fiscal year limitation and 
without diminishing the amount of any grants otherwise payable 
to the school under this section for any fiscal year beginning 
after the fiscal year for which the grant is provided.
    ``(g) Treatment of Funds.--Funds received as grants under 
this section for Bureau-funded programs operated by a tribe or 
tribal organization under a contract or agreement shall not be 
taken into consideration for purposes of indirect cost 
underrecovery and overrecovery determinations by any Federal 
agency for any other funds, from whatever source derived.
    ``(h) Treatment of Entity Operating Other Programs.--In 
applying this section and section 106 of the Indian Self-
Determination and Education Assistance Act with respect to an 
Indian tribe or tribal organization that--
            ``(1) receives funds under this section for 
        administrative costs incurred in operating a contract 
        or grant school or a school operated under the Tribally 
        Controlled Schools Act of 1988; and
            ``(2) operates 1 or more other programs under a 
        contract or grant provided under the Indian Self-
        Determination and Education Assistance Act,

the Secretary shall ensure that the Indian tribe or tribal 
organization is provided with the full amount of the 
administrative costs that are associated with operating the 
contract or grant school, and of the indirect costs, that are 
associated with all of such other programs, except that funds 
appropriated for implementation of this section shall be used 
only to supply the amount of the grant required to be provided 
by this section.
    ``(i) Studies for Determination of Factors Affecting Costs; 
Base Rates Limits; Standard Direct Cost Base; Report to 
Congress.--
            ``(1) Studies.--Not later than 120 days after the 
        date of enactment of the Native American Education 
        Improvement Act of 2001, the Director of the Office of 
        Indian Education Programs shall--
                    ``(A) conduct such studies as may be needed 
                to establish an empirical basis for determining 
                relevant factors substantially affecting 
                required administrative costs of tribal 
                elementary and secondary education programs, 
                using the formula set forth in subsection (c); 
                and
            ``(B) conduct a study to determine--
                    ``(i) a maximum base rate which ensures 
                that the amount of the grants provided under 
                this section will provide adequate (but not 
                excessive) funding of the administrative costs 
                of the smallest tribal elementary or secondary 
                educational programs;
                    ``(ii) a minimum base rate which ensures 
                that the amount of the grants provided under 
                this section will provide adequate (but not 
                excessive) funding of the administrative costs 
                of the largest tribal elementary or secondary 
                educational programs; and
                    ``(iii) a standard direct cost base which 
                is the aggregate direct cost funding level for 
                which the percentage determined under 
                subsection (d) will--
                            ``(I) be equal to the median 
                        between the maximum base rate and the 
                        minimum base rate; and
                            ``(II) ensure that the amount of 
                        the grants provided under this section 
                        will provide adequate (but not 
                        excessive) funding of the 
                        administrative costs of tribal 
                        elementary or secondary educational 
                        programs closest to the size of the 
                        program.
            ``(2) Guidelines.--The studies required under 
        paragraph (1) shall--
                    ``(A) be conducted in full consultation (in 
                accordance with section 1131) with--
                            ``(i) the tribes and tribal 
                        organizations that are affected by the 
                        application of the formula set forth in 
                        subsection (c); and
                            ``(ii) all national and regional 
                        Indian organizations of which such 
                        tribes and tribal organizations are 
                        typically members;
                    ``(B) be conducted onsite with a 
                representative statistical sample of the tribal 
                elementary or secondary educational programs 
                under a contract entered into with a nationally 
                reputable public accounting and business 
                consulting firm;
                    ``(C) take into account the availability of 
                skilled labor commodities, business and 
                automatic data processing services, related 
                Indian preference and Indian control of 
                education requirements, and any other market 
                factors found to substantially affect the 
                administrative costs and efficiency of each 
                such tribal elementary or secondary educational 
                program studied in order to ensure that all 
                required administrative activities can 
                reasonably be delivered in a cost effective 
                manner for each such program, given an 
                administrative cost allowance generated by the 
                values, percentages, or other factors found in 
                the studies to be relevant in such formula;
                    ``(D) identify, and quantify in terms of 
                percentages of direct program costs, any 
                general factors arising from geographic 
                isolation, or numbers of programs administered, 
                independent of program size factors used to 
                compute a base administrative cost percentage 
                in such formula; and
                    ``(E) identify any other incremental cost 
                factors substantially affecting the costs of 
                required administrative cost functions at any 
                of the tribal elementary or secondary 
                educational programs studied and determine 
                whether the factors are of general 
                applicability to other such programs, and (if 
                so) how the factors may effectively be 
                incorporated into such formula.
            ``(3) Consultation with inspector general.--In 
        carrying out the studies required under this 
        subsection, the Director shall obtain the input of, and 
        afford an opportunity to participate to, the Inspector 
        General of the Department of the Interior.
            ``(4) Consideration of delivery of administrative 
        services.--Determinations described in paragraph (2)(C) 
        shall be based on what is practicable at each location 
        studied, given prudent management practice, 
        irrespective of whether required administrative 
        services were actually or fully delivered at these 
        sites, or whether other services were delivered 
        instead, during the period of the study.
            ``(5) Report.--Upon completion of the studies 
        conducted under paragraph (1), the Director shall 
        submit to Congress a report on the findings of the 
        studies, together with determinations based upon such 
        studies that would affect the definitions set forth 
        under subsection (e) that are used in the formula set 
        forth in subsection (c).
            ``(6) Projection of costs.--The Secretary shall 
        include in the Bureau's justification for each 
        appropriations request beginning in the first fiscal 
        year after the completion of the studies conducted 
        under paragraph (1), a projection of the overall costs 
        associated with the formula set forth in subsection (c) 
        for all tribal elementary or secondary education 
        programs which the Secretary expects to be funded in 
        the fiscal year for which the appropriations are 
        sought.
            ``(7) Determination of program size.--For purposes 
        of this subsection, the size of tribal elementary or 
        secondary educational programs is determined by the 
        aggregate direct cost program funding level for all 
        Bureau-funded programs which share common 
        administrative cost functions.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to carry out this section such sums as may 
        be necessary.
            ``(2) Reductions.--If the total amount of funds 
        necessary to provide grants to tribes and tribal 
        organizations in the amounts determined under 
        subsection (c) for a fiscal year exceeds the amount of 
        funds appropriated to carry out this section for such 
        fiscal year, the Secretary shall reduce the amount of 
        each grant determined under subsection (c) for such 
        fiscal year by an amount that bears the same 
        relationship to such excess as the amount of such 
        grants determined under subsection (c) bears to the 
        total of all grants determined under subsection (c) 
        section for all tribes and tribal organizations for 
        such fiscal year.
    ``(k) Applicability to Schools Operating Under Tribally 
Controlled Schools Act of 1988.--The provisions of this section 
shall apply to schools operating under the Tribally Controlled 
Schools Act of 1988.
    ``(l) Administrative Cost Grant Budget Requests.--
            ``(1) In general.--Beginning with President's 
        annual budget request under section 1105 of title 31, 
        United States Code for fiscal year 2002, and with 
        respect to each succeeding budget request, at the 
        discretion of the Secretary, the Secretary shall submit 
        to the appropriate committees of Congress information 
        and funding requests for the full funding of 
        administrative costs grants required to be paid under 
        this section.
            ``(2) Requirements.--
                    ``(A) Funding for new conversions to 
                contract or grant school operations.--With 
                respect to a budget request under paragraph 
                (1), the amount required to provide full 
                funding for an administrative cost grant for 
                each tribe or tribal organization expected to 
                begin operation of a Bureau-funded school as 
                contract or grant school in the academic year 
                funded by such annual budget request, the 
                amount so required shall not be less than 10 
                percent of the amount required for subparagraph 
                (B).
                    ``(B) Funding for continuing contract and 
                grant school operations.--With respect to a 
                budget request under paragraph (1), the amount 
                required to provide full funding for an 
                administrative cost grant for each tribe or 
                tribal organization operating a contract or 
                grant school at the time the annual budget 
                request is submitted, which amount shall 
                include the amount of funds required to provide 
                full funding for an administrative cost grant 
                for each tribe or tribal organization which 
                began operation of a contract or grant school 
                with administrative cost grant funds supplied 
                from the amount described in subparagraph (A).

``SEC. 1129. DIVISION OF BUDGET ANALYSIS.

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

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

    ``(a) Establishment of System and Forward Funding.--
            ``(1) In general.--The Secretary shall establish, 
        by regulation adopted in accordance with section 1136, 
        a system for the direct funding and support of all 
        Bureau-funded schools. Such system shall allot funds in 
        accordance with section 1127. All amounts appropriated 
        for distribution in accordance with this section shall 
        be made available in accordance with paragraph (2).
            ``(2) Timing for use of funds.--
                    ``(A) Availability.--For the purposes of 
                affording adequate notice of funding available 
                pursuant to the allotments made under section 
                1127 and the allotments of funds for operation 
                and maintenance of facilities, amounts 
                appropriated in an appropriations Act for any 
                fiscal year for such allotments--
                            ``(i) shall become available for 
                        obligation by the affected schools on 
                        July 1 of the fiscal year for which 
                        such allotments are appropriated 
                        without further action by the 
                        Secretary; and
                            ``(ii) shall remain available for 
                        obligation through the succeeding 
                        fiscal year.
                    ``(B) Publications.--The Secretary shall, 
                on the basis of the amounts appropriated as 
                described in this paragraph--
                            ``(i) publish, not later than July 
                        1 of the fiscal year for which the 
                        amounts are appropriated, information 
                        indicating the amount of the allotments 
                        to be made to each affected school 
                        under section 1127, of 80 percent of 
                        such appropriated amounts; and
                            ``(ii) publish, not later than 
                        September 30 of such fiscal year, 
                        information indicating the amount of 
                        the allotments to be made under section 
                        1127, from the remaining 20 percent of 
                        such appropriated amounts, adjusted to 
                        reflect the actual student attendance.
                    ``(C) Overpayments.--Any overpayments made 
                to tribal schools shall be returned to the 
                Secretary not later than 30 days after the 
                final determination that the school was 
                overpaid pursuant to this section.
            ``(3) Limitation.--
                    ``(A) Expenditures.--Notwithstanding any 
                other provision of law (including a 
                regulation), the supervisor of a Bureau-
                operated school may expend an aggregate of not 
                more than $50,000 of the amount allotted to the 
                school under section 1127 to acquire materials, 
                supplies, equipment, operation services, 
                maintenance services, and other services for 
                the school, and amounts received as operations 
                and maintenance funds, funds received from the 
                Department of Education, or funds received from 
                other Federal sources, without competitive 
                bidding if--
                            ``(i) the cost for any single item 
                        acquired does not exceed $15,000;
                            ``(ii) the school board approves 
                        the acquisition;
                            ``(iii) the supervisor certifies 
                        that the cost is fair and reasonable;
                            ``(iv) the documents relating to 
                        the acquisition executed by the 
                        supervisor of the school or other 
                        school staff cite this paragraph as 
                        authority for the acquisition; and
                            ``(v) the acquisition transaction 
                        is documented in a journal maintained 
                        at the school that clearly identifies 
                        when the transaction occurred, the item 
                        that was acquired and from whom, the 
                        price paid, the quantities acquired, 
                        and any other information the 
                        supervisor or the school board 
                        considers to be relevant.
                    ``(B) Notice.--Not later than 6 months 
                after the date of enactment of the Native 
                American Education Improvement Act of 2001, the 
                Secretary shall send notice of the provisions 
                of this paragraph to each supervisor of a 
                Bureau school and associated school board 
                chairperson, the education line officer of each 
                agency and area, and the Bureau division in 
                charge of procurement, at both the local and 
                national levels.
                    ``(C) Application and guidelines.--The 
                Director of the Office shall be responsible 
                for--
                            ``(i) determining the application 
                        of this paragraph, including the 
                        authorization of specific individuals 
                        to carry out this paragraph;
                            ``(ii) ensuring that there is at 
                        least 1 such individual at each Bureau 
                        facility; and
                            ``(iii) the provision of guidelines 
                        on the use of this paragraph and 
                        adequate training on such guidelines.
            ``(4) Effect of sequestration order.--If a 
        sequestration order issued under the Balanced Budget 
        and Emergency Deficit Control Act of 1985 reduces the 
        amount of funds available for allotment under section 
        1127 for any fiscal year by more than 7 percent of the 
        amount of funds available for allotment under such 
        section during the preceding fiscal year--
                    ``(A) to fund allotments under section 
                1127, the Secretary, notwithstanding any other 
                law, may use--
                            ``(i) funds appropriated for the 
                        operation of any Bureau-funded school 
                        that is closed or consolidated; and
                            ``(ii) funds appropriated for any 
                        program that has been curtailed at any 
                        Bureau school; and
                    ``(B) the Secretary may waive the 
                application of the provisions of section 
                1121(h) with respect to the closure or 
                consolidation of a school, or the curtailment 
                of a program at a school, during such fiscal 
                year if the funds described in clauses (i) and 
                (ii) of subparagraph (A) with respect to such 
                school are used to fund allotments made under 
                section 1127 for such fiscal year.
    ``(b) Local Financial Plans for Expenditure of Funds.--
            ``(1) Plan required.--Each Bureau-operated school 
        that receives an allotment under section 1127 shall 
        prepare a local financial plan that specifies the 
        manner in which the school will expend the funds made 
        available under the allotment and ensures that the 
        school will meet the accreditation requirements or 
        standards for the school pursuant to section 1121.
            ``(2) Requirement.--A local financial plan under 
        paragraph (1) shall comply with all applicable Federal 
        and tribal laws.
            ``(3) Preparation and revision.--
                    ``(A) In general.--The financial plan for a 
                school under subparagraph (A) shall be prepared 
                by the supervisor of the school in active 
                consultation with the local school board for 
                the school.
                    ``(B) Authority of school board.--The local 
                school board for each school shall have the 
                authority to ratify, reject, or amend such 
                financial plan and, at the initiative of the 
                local school board or in response to the 
                supervisor of the school, to revise such 
                financial plan to meet needs not foreseen at 
                the time of preparation of the financial plan.
            ``(4) Role of supervisor.--The supervisor of the 
        school--
                    ``(A) shall implement the decisions of the 
                school board relating to the financial plan 
                under paragraph (1);
                    ``(B) shall provide the appropriate local 
                union representative of the education employees 
                of the school with copies of proposed financial 
                plans relating to the school and all 
                modifications and proposed modifications to the 
                plans, and at the same time submit such copies 
                to the local school board; and
                    ``(C) may appeal any such action of the 
                local school board to the appropriate education 
                line officer of the Bureau agency by filing a 
                written statement describing the action and the 
                reasons the supervisor believes such action 
                should be overturned.
            ``(5) Statements.--
                    ``(A) In general.--A copy of each statement 
                filed under paragraph (4)(C) shall be submitted 
                to the local school board and such board shall 
                be afforded an opportunity to respond, in 
                writing, to such appeal.
                    ``(B) Overturned actions.--After reviewing 
                such written appeal and response, the 
                appropriate education line officer may, for 
                good cause, overturn the action of the local 
                school board.
                    ``(C) Transmission of determination.--The 
                appropriate education line officer shall 
                transmit the determination of such appeal in 
                the form of a written opinion to such board and 
                to such supervisor identifying the reasons for 
                overturning such action.
    ``(c) Tribal Division of Education, Self-Determination 
Grant and Contract Funds.--The Secretary may approve 
applications for funding tribal divisions of education and 
developing tribal codes of education, from funds made available 
pursuant to section 103(a) of the Indian Self-Determination and 
Education Assistance Act.
    ``(d) Technical Assistance and Training.--In carrying out 
this section, a local school board may request technical 
assistance and training from the Secretary, and the Secretary 
shall, to the maximum extent practicable, provide those 
services and make appropriate provisions in the budget of the 
Office for the provision of those services.
    ``(e) Summer Program of Academic and Support Services.--
            ``(1) Plan.--
                    ``(A) In general.--A financial plan under 
                subsection (b) for a school may include, at the 
                discretion of the local administrator and the 
                school board of such school, a provision for a 
                summer program of academic and support services 
                for students of the school.
                    ``(B) Prevention activities.--Any such 
                program may include activities related to the 
                prevention of alcohol and substance abuse.
                    ``(C) Summer use.--The Assistant Secretary 
                for Indian Affairs shall provide for the use of 
                any such school facility during any summer in 
                which such use is requested.
            ``(2) Use of other funds.--Notwithstanding any 
        other provision of law, funds authorized under the Act 
        of April 16, 1934, and this Act may be used to augment 
        the services provided in each summer program at the 
        option, and under the control, of the tribe or Indian 
        controlled school receiving such funds.
            ``(3) Technical assistance and program 
        coordination.--The Assistant Secretary for Indian 
        Affairs, acting through the Director of the Office, 
        shall--
                    ``(A) provide technical assistance and 
                coordination for any program described in 
                paragraph (1); and
                    ``(B) to the extent practicable, encourage 
                the coordination of such programs with any 
                other summer programs that might benefit Indian 
                youth, regardless of the funding source or 
                administrative entity of any such program.
    ``(f) Cooperative Agreements.--
            ``(1) Implementation.--
                    ``(A) In general.--From funds allotted to a 
                Bureau school under section 1127, the Secretary 
                shall, if specifically requested by the 
                appropriate tribal governing body, implement a 
                cooperative agreement that is entered into 
                between the tribe, the Bureau, the local school 
                board, and a local public school district that 
                meets the requirements of paragraph (2) and 
                involves the school.
                    ``(B) Terms.--The tribe, the Bureau, the 
                school board, and the local public school 
                district shall determine the terms of an 
                agreement entered into under subparagraph (A).
            ``(2) Coordination provisions.--An agreement under 
        paragraph (1) may, with respect to the Bureau school 
        and schools in the school district involved, encompass 
        coordination of all or any part of the following:
                    ``(A) The academic program and curriculum, 
                unless the Bureau school is accredited by a 
                State or regional accrediting entity and would 
                not continue to be so accredited if the 
                agreement encompassed the program and 
                curriculum.
                    ``(B) Support services, including 
                procurement and facilities maintenance.
                    ``(C) Transportation.
            ``(3) Equal benefit and burden.--
                    ``(A) In general.--Each agreement entered 
                into under paragraph (1) shall confer a benefit 
                upon the Bureau school commensurate with the 
                burden assumed by the school.
                    ``(B) Limitation.--Subparagraph (A) shall 
                not be construed to require equal expenditures, 
                or an exchange of similar services, by the 
                Bureau school and schools in the school 
                district.
    ``(g) Product or Result of Student Projects.--
Notwithstanding any other provision of law, in a case in which 
there is agreement on action between the superintendent and the 
school board of a Bureau-funded school, the product or result 
of a project conducted in whole or in major part by a student 
may be given to that student upon the completion of such 
project.
    ``(h) Matching Fund Requirements.--
            ``(1) Not considered federal funds.--
        Notwithstanding any other provision of law, funds 
        received by a Bureau-funded school under this title for 
        education-related activities (not including funds for 
        construction, maintenance, and facilities improvement 
        or repair) shall not be considered Federal funds for 
        the purposes of a matching funds requirement for any 
        Federal program.
            ``(2) Limitation.--In considering an application 
        from a Bureau-funded school for participation in a 
        program or project that requires matching funds, the 
        entity administering such program or project or 
        awarding such grant shall not give positive or negative 
        weight to such application based solely on the 
        provisions of paragraph (1).

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

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

``SEC. 1132. INDIAN EDUCATION PERSONNEL.

    ``(a) In General.--Chapter 51, subchapter III of chapter 
53, and chapter 63 of title 5, United States Code, relating to 
classification, pay and leave, respectively, and the sections 
of such title relating to the appointment, promotion, hours of 
work, and removal of civil service employees, shall not apply 
to educators or to education positions (as defined in 
subsection (p)).
    ``(b) Regulations.--Not later than 60 days after the date 
of enactment of the Native American Education Improvement Act 
of 2001, the Secretary shall prescribe regulations to carry out 
this section. Such regulations shall provide for--
            ``(1) the establishment of education positions;
            ``(2) the establishment of qualifications for 
        educators and education personnel;
            ``(3) the fixing of basic compensation for 
        educators and education positions;
            ``(4) the appointment of educators;
            ``(5) the discharge of educators;
            ``(6) the entitlement of educators to compensation;
            ``(7) the payment of compensation to educators;
            ``(8) the conditions of employment of educators;
            ``(9) the leave system for educators;
            ``(10) the annual leave and sick leave for 
        educators;
            ``(11) the length of the school year applicable to 
        education positions described in subsection (a); and
            ``(12) such additional matters as may be 
        appropriate.
    ``(c) Qualifications of Educators.--
            ``(1) Requirements.--In prescribing regulations to 
        govern the qualifications of educators, the Secretary 
        shall require that--
                    ``(A) lists of qualified and interviewed 
                applicants for education positions be 
                maintained in each agency and area office of 
                the Bureau from among individuals who have 
                applied at the agency or area level for an 
                education position or who have applied at the 
                national level and have indicated in such 
                application an interest in working in certain 
                areas or agencies;
                    ``(B) a local school board shall have the 
                authority to waive on a case-by-case basis, any 
                formal education or degree qualifications 
                established by regulation pursuant to 
                subsection (b)(2), in order for a tribal member 
                to be hired in an education position to teach 
                courses on tribal culture and language and that 
                subject to subsection (e)(2), a determination 
                by a school board that such a person be hired 
                shall be instituted by the supervisor of the 
                school involved; and
                    ``(C) that it shall not be a prerequisite 
                to the employment of an individual in an 
                education position at the local level that--
                            ``(i) such individual's name appear 
                        on a list maintained pursuant to 
                        subparagraph (A); or
                            ``(ii) such individual have applied 
                        at the national level for an education 
                        position.
            ``(2) Exception for certain temporary employment.--
        The Secretary may authorize the temporary employment in 
        an education position of an individual who has not met 
        the certification standards established pursuant to 
        regulations if the Secretary determines that failure to 
        do so would result in that position remaining vacant.
    ``(d) Hiring of Educators.--
            ``(1) Requirements.--In prescribing regulations to 
        govern the appointment of educators, the Secretary 
        shall require--
                    ``(A)(i)(I) that educators employed in a 
                Bureau school (other than the supervisor of the 
                school) shall be hired by the supervisor of the 
                school; and
                    ``(II) in a case in which there are no 
                qualified applicants available to fill a 
                vacancy at a Bureau school, the supervisor may 
                consult a list maintained pursuant to 
                subsection (c)(1)(A);
                    ``(ii) each supervisor of a Bureau school 
                shall be hired by the education line officer of 
                the agency office of the Bureau for the 
                jurisdiction in which the school is located;
                    ``(iii) each educator employed in an agency 
                office of the Bureau shall be hired by the 
                superintendent for education of the agency 
                office; and
                    ``(iv) each education line officer and 
                educator employed in the office of the Director 
                of the Office shall be hired by the Director;
                    ``(B)(i) before an individual is employed 
                in an education position in a Bureau school by 
                the supervisor of the school (or, with respect 
                to the position of supervisor, by the 
                appropriate agency education line officer), the 
                local school board for the school shall be 
                consulted; and
                    ``(ii) that a determination by such school 
                board, as evidenced by school board records, 
                that such individual should or should not be so 
                employed shall be instituted by the supervisor 
                (or with respect to the position of supervisor, 
                by the superintendent for education of the 
                agency office);
                    ``(C)(i) before an individual is employed 
                in an education position in an agency or area 
                office of the Bureau, the appropriate agency 
                school board shall be consulted; and
                    ``(ii) a determination by such school 
                board, as evidenced by school board records, 
                that such individual should or should not be 
                employed shall be instituted by the 
                superintendent for education of the agency 
                office; and
                    ``(D) all employment decisions or actions 
                be in compliance with all applicable Federal, 
                State and tribal laws.
            ``(2) Information regarding application at national 
        level.--
                    ``(A) In general.--Any individual who 
                applies at the local level for an education 
                position shall state on such individual's 
                application whether or not such individual has 
                applied at the national level for an education 
                position in the Bureau.
                    ``(B) Determination of accuracy.--If such 
                individual is employed at the local level, such 
                individual's name shall be immediately 
                forwarded to the Secretary, who shall, as soon 
                as practicable but in no event in more than 30 
                days, ascertain the accuracy of the statement 
                made by such individual pursuant to 
                subparagraph (A).
                    ``(C) False statements.--Notwithstanding 
                subsection (e), if the individual's statement 
                is found to have been false, such individual, 
                at the Secretary's discretion, may be 
                disciplined or discharged.
                    ``(D) Conditional appointment for national 
                provision.--If the individual has applied at 
                the national level for an education position in 
                the Bureau, the appointment of such individual 
                at the local level shall be conditional for a 
                period of 90 days, during which period the 
                Secretary may appoint a more qualified 
                individual (as determined by the Secretary) 
                from the list maintained at the national level 
                pursuant to subsection (c)(1)(A)(ii) to the 
                position to which such individual was 
                appointed.
            ``(3) Statutory construction.--Except as expressly 
        provided, nothing in this section shall be construed as 
        conferring upon local school boards authority over, or 
        control of, educators at Bureau-funded schools or the 
        authority to issue management decisions.
            ``(4) Appeals.--
                    ``(A) By supervisor.--
                            ``(i) In general.--The supervisor 
                        of a school may appeal to the 
                        appropriate agency education line 
                        officer any determination by the local 
                        school board for the school that an 
                        individual be employed, or not be 
                        employed, in an education position in 
                        the school (other than that of 
                        supervisor) by filing a written 
                        statement describing the determination 
                        and the reasons the supervisor believes 
                        such determination should be 
                        overturned.
                            ``(ii) Action by board.--A copy of 
                        such statement shall be submitted to 
                        the local school board and such board 
                        shall be afforded an opportunity to 
                        respond, in writing, to such appeal.
                            ``(iii) Overturning of 
                        determination.--After reviewing such 
                        written appeal and response, the 
                        education line officer may, for good 
                        cause, overturn the determination of 
                        the local school board.
                            ``(iv) Transmission of 
                        determination.--The education line 
                        officer shall transmit the 
                        determination of such appeal in the 
                        form of a written opinion to such board 
                        and to such supervisor identifying the 
                        reasons for overturning such 
                        determination.
                    ``(B) By education line officer.--
                            ``(i) In general.--The education 
                        line officer of an agency office of the 
                        Bureau may appeal to the Director of 
                        the Office any determination by the 
                        local school board for the school that 
                        an individual be employed, or not be 
                        employed, as the supervisor of a school 
                        by filing a written statement 
                        describing the determination and the 
                        reasons the supervisor believes such 
                        determination should be overturned.
                            ``(ii) Action by board.--A copy of 
                        such statement shall be submitted to 
                        the local school board and such board 
                        shall be afforded an opportunity to 
                        respond, in writing, to such appeal.
                            ``(iii) Overturning of 
                        determination.--After reviewing such 
                        written appeal and response, the 
                        Director may, for good cause, overturn 
                        the determination of the local school 
                        board.
                            ``(iv) Transmission of 
                        determination.--The Director shall 
                        transmit the determination of such 
                        appeal in the form of a written opinion 
                        to such board and to such education 
                        line officer identifying the reasons 
                        for overturning such determination.
            ``(5) Other appeals.--
                    ``(A) In general.--The education line 
                officer of an agency office of the Bureau may 
                appeal to the Director of the Office any 
                determination by the agency school board that 
                an individual be employed, or not be employed, 
                in an education position in such agency office 
                by filing a written statement describing the 
                determination and the reasons the supervisor 
                believes such determination should be 
                overturned.
                    ``(B) Action by board.--A copy of such 
                statement shall be submitted to the agency 
                school board and such board shall be afforded 
                an opportunity to respond, in writing, to such 
                appeal.
                    ``(C) Overturning of determination.--After 
                reviewing such written appeal and response, the 
                Director may, for good cause, overturn the 
                determination of the agency school board.
                    ``(D) Transmission of determination.--The 
                Director shall transmit the determination of 
                such appeal in the form of a written opinion to 
                such board and to such education line officer 
                identifying the reasons for overturning such 
                determination.
    ``(e) Discharge and Conditions of Employment of 
Educators.--
            ``(1) Regulations.--In promulgating regulations to 
        govern the discharge and conditions of employment of 
        educators, the Secretary shall require--
                    ``(A) that procedures shall be established 
                for the rapid and equitable resolution of 
                grievances of educators;
                    ``(B) that no educator may be discharged 
                without notice of the reasons for the discharge 
                and an opportunity for a hearing under 
                procedures that comport with the requirements 
                of due process; and
                    ``(C) that each educator employed in a 
                Bureau school shall be notified 30 days prior 
                to the end of an academic year whether the 
                employment contract of the individual will be 
                renewed for the following year.
            ``(2) Procedures for discharge.--
                    ``(A) Determinations.--
                            ``(i) In general.--Except as 
                        provided in clause (iii), the 
                        supervisor of a Bureau school may 
                        discharge (subject to procedures 
                        established under paragraph (1)(B)) for 
                        cause (as determined under regulations 
                        prescribed by the Secretary) any 
                        educator employed in such school.
                            ``(ii) Notification of board.--On 
                        giving notice to an educator of the 
                        supervisor's intention to discharge the 
                        educator, the supervisor shall 
                        immediately notify the local school 
                        board of the proposed discharge.
                            ``(iii) Determination by board.--If 
                        the local school board determines that 
                        such educator shall not be discharged, 
                        that determination shall be followed by 
                        the supervisor.
                    ``(B) Appeals.--
                            ``(i) In general.--The supervisor 
                        shall have the right to appeal to the 
                        education line officer of the 
                        appropriate agency office of the Bureau 
                        a determination by a local school board 
                        under subparagraph (A)(iii), as 
                        evidenced by school board records, not 
                        to discharge an educator.
                            ``(ii) Decision of agency education 
                        line officer.--Upon hearing such an 
                        appeal, the agency education line 
                        officer may, for good cause, issue a 
                        decision overturning the determination 
                        of the local school board with respect 
                        to the employment of such individual.
                            ``(iii) Form of decision.--The 
                        education line officer shall make the 
                        decision in writing and submit the 
                        decision to the local school board.
            ``(3) Recommendations of school boards for 
        discharge.--Each local school board for a Bureau school 
        shall have the right--
                    ``(A) to recommend to the supervisor that 
                an educator employed in the school be 
                discharged; and
                    ``(B) to recommend to the education line 
                officer of the appropriate agency office of the 
                Bureau and to the Director of the Office, that 
                the supervisor of the school be discharged.
    ``(f) Applicability of Indian Preference Laws.--
            ``(1) Applicability.--
                    ``(A) In general.--Notwithstanding any 
                provision of the Indian preference laws, such 
                laws shall not apply in the case of any 
                personnel action carried out under this section 
                with respect to an applicant or employee not 
                entitled to an Indian preference if each tribal 
                organization concerned--
                            ``(i) grants a written waiver of 
                        the application of those laws with 
                        respect to the personnel action; and
                            ``(ii) states that the waiver is 
                        necessary.
                    ``(B) No effect on responsibility of 
                bureau.--This paragraph shall not be construed 
                to relieve the responsibility of the Bureau to 
                issue timely and adequate announcements and 
                advertisements concerning any such personnel 
                action if such action is intended to fill a 
                vacancy (no matter how such vacancy is 
                created).
            ``(2) Definitions.--In this subsection:
                    ``(A) Indian preference laws.--
                            ``(i) In general.--The term `Indian 
                        preference laws' means section 12 of 
                        the Act of June 18, 1934 (48 Stat. 986, 
                        chapter 576) or any other provision of 
                        law granting a preference to Indians in 
                        promotions and other personnel actions.
                            ``(ii) Exclusion.--The term `Indian 
                        preference laws' does not include 
                        section 7(b) of the Indian Self-
                        Determination and Education Assistance 
                        Act.
                    ``(B) Tribal organization.--The term 
                `tribal organization' means--
                            ``(i) the recognized governing body 
                        of any Indian tribe, band, nation, 
                        pueblo, or other organized community, 
                        including a Native village (as defined 
                        in section 3(c) of the Alaska Native 
                        Claims Settlement Act); or
                            ``(ii) in connection with any 
                        personnel action referred to in this 
                        subsection, any local school board to 
                        which the governing body has delegated 
                        the authority to grant a waiver under 
                        this subsection with respect to a 
                        personnel action.
    ``(g) Compensation or Annual Salary.--
            ``(1) In general.--
                    ``(A) Compensation for educators and 
                education positions.--Except as otherwise 
                provided in this section, the Secretary shall 
                establish the compensation or annual salary 
                rate for educators and education positions--
                            ``(i) at rates in effect under the 
                        General Schedule for individuals with 
                        comparable qualifications, and holding 
                        comparable positions, to whom chapter 
                        51 of title 5, United States Code, is 
                        applicable; or
                            ``(ii) on the basis of the Federal 
                        Wage System schedule in effect for the 
                        locality involved, and for the 
                        comparable positions, at the rates of 
                        compensation in effect for the senior 
                        executive service.
                    ``(B) Compensation or salary for teachers 
                and counselors.--
                            ``(i) In general.--The Secretary 
                        shall establish the rate of 
                        compensation, or annual salary rate, 
                        for the positions of teachers and 
                        counselors (including dormitory 
                        counselors and home-living counselors) 
                        at the rate of compensation applicable 
                        (on the date of enactment of the Native 
                        American Education Improvement Act of 
                        2001 and thereafter) for comparable 
                        positions in the overseas schools under 
                        the Defense Department Overseas 
                        Teachers Pay and Personnel Practices 
                        Act.
                            ``(ii) Essential provisions.--The 
                        Secretary shall allow the local school 
                        boards involved authority to implement 
                        only the aspects of the Defense 
                        Department Overseas Teachers Pay and 
                        Personnel Practices Act pay provisions 
                        that are considered essential for 
                        recruitment and retention of teachers 
                        and counselors. Implementation of such 
                        provisions shall not be construed to 
                        require the implementation of that 
                        entire Act.
                    ``(C) Rates for new hires.--
                            ``(i) In general.--Beginning with 
                        the first fiscal year following the 
                        date of enactment of the Native 
                        American Education Improvement Act of 
                        2001, each local school board of a 
                        Bureau school may establish a rate of 
                        compensation or annual salary rate 
                        described in clause (ii) for teachers 
                        and counselors (including academic 
                        counselors) who are new hires at the 
                        school and who had not worked at the 
                        school, as of the first day of such 
                        fiscal year.
                            ``(ii) Consistent rates.--The rates 
                        established under clause (i) shall be 
                        consistent with the rates paid for 
                        individuals in the same positions, with 
                        the same tenure and training, as the 
                        teachers and counselors, in any other 
                        school within whose boundaries the 
                        Bureau school is located.
                            ``(iii) Decreases.--In a case in 
                        which the establishment of rates under 
                        clause (i) causes a reduction in 
                        compensation at a school from the rate 
                        of compensation that was in effect for 
                        the first fiscal year following the 
                        date of enactment of the Native 
                        American Education Improvement Act of 
                        2001, the new rates of compensation may 
                        be applied to the compensation of 
                        employees of the school who worked at 
                        the school as of such date of enactment 
                        by applying those rates at each 
                        contract renewal for the employees so 
                        that the reduction takes effect in 3 
                        equal installments.
                            ``(iv) Increases.--In a case in 
                        which adoption of rates under clause 
                        (i) leads to an increase in the payment 
                        of compensation from that which was in 
                        effect for the fiscal year following 
                        the date of enactment of the Native 
                        American Education Improvement Act of 
                        2001, the school board may make such 
                        rates applicable at the next contract 
                        renewal such that--
                                    ``(I) the increase occurs 
                                in its entirety; or
                                    ``(II) the increase is 
                                applied in 3 equal 
                                installments.
                    ``(D) Use of regulations; continued 
                employment of certain educators.--The 
                establishment of rates of basic compensation 
                and annual salary rates under subparagraphs (B) 
                and (C) shall not--
                            ``(i) preclude the use of 
                        regulations and procedures used by the 
                        Bureau prior to April 28, 1988, in 
                        making determinations regarding 
                        promotions and advancements through 
                        levels of pay that are based on the 
                        merit, education, experience, or tenure 
                        of the educator; or
                            ``(ii) affect the continued 
                        employment or compensation of an 
                        educator who was employed in an 
                        education position on October 31, 1979, 
                        and who did not make an election under 
                        subsection (p) as in effect on January 
                        1, 1990.
            ``(2) Post differential rates.--
                    ``(A) In general.--The Secretary may pay a 
                post differential rate, not to exceed 25 
                percent of the rate of compensation, for 
                educators or education positions, on the basis 
                of conditions of environment or work that 
                warrant additional pay, as a recruitment and 
                retention incentive.
                    ``(B) Supervisor's authority.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), on the request 
                        of the supervisor and the local school 
                        board of a Bureau school, the Secretary 
                        shall grant the supervisor of the 
                        school authorization to provide 1 or 
                        more post differential rates under 
                        subparagraph (A).
                            ``(ii) Exception.--The Secretary 
                        shall disapprove, or approve with a 
                        modification, a request for 
                        authorization to provide a post 
                        differential rate if the Secretary 
                        determines for clear and convincing 
                        reasons (and advises the board in 
                        writing of those reasons) that the rate 
                        should be disapproved or decreased 
                        because the disparity of compensation 
                        between the appropriate educators or 
                        positions in the Bureau school, and the 
                        comparable educators or positions at 
                        the nearest public school, is--
                                    ``(I)(aa) at least 5 
                                percent; or
                                    ``(bb) less than 5 percent; 
                                and
                                    ``(II) does not affect the 
                                recruitment or retention of 
                                employees at the school.
                            ``(iii) Approval of requests.--A 
                        request made under clause (i) shall be 
                        considered to be approved at the end of 
                        the 60th day after the request is 
                        received in the Central Office of the 
                        Bureau unless before that time the 
                        request is approved, approved with a 
                        modification, or disapproved by the 
                        Secretary.
                            ``(iv) Discontinuation of or 
                        decrease in rates.--The Secretary or 
                        the supervisor of a Bureau school may 
                        discontinue or decrease a post 
                        differential rate provided for under 
                        this paragraph at the beginning of an 
                        academic year if--
                                    ``(I) the local school 
                                board requests that such 
                                differential be discontinued or 
                                decreased; or
                                    ``(II) the Secretary or the 
                                supervisor, respectively, 
                                determines for clear and 
                                convincing reasons (and advises 
                                the board in writing of those 
                                reasons) that there is no 
                                disparity of compensation that 
                                would affect the recruitment or 
                                retention of employees at the 
                                school after the differential 
                                is discontinued or decreased.
                            ``(v) Reports.--On or before 
                        February 1 of each year, the Secretary 
                        shall submit to Congress a report 
                        describing the requests and approvals 
                        of authorization made under this 
                        paragraph during the previous year and 
                        listing the positions receiving post 
                        differential rates under contracts 
                        entered into under those 
                        authorizations.
    ``(h) Liquidation of Remaining Leave Upon Termination.--
Upon termination of employment with the Bureau, any annual 
leave remaining to the credit of an individual covered by of 
this section shall be liquidated in accordance with sections 
5551(a) and 6306 of title 5, United States Code, except that 
leave earned or accrued under regulations promulgated pursuant 
to subsection (b)(10) shall not be so liquidated.
    ``(i) Transfer of Remaining Sick Leave Upon Transfer, 
Promotion, or Reemployment.--In the case of any educator who is 
transferred, promoted, or reappointed, without break in 
service, to a position in the Federal Government under a 
different leave system, any remaining leave to the credit of 
such person earned or credited under the regulations 
promulgated pursuant to subsection (b)(10) shall be transferred 
to such person's credit in the employing agency on an adjusted 
basis in accordance with regulations which shall be promulgated 
by the Office of Personnel Management.
    ``(j) Ineligibility for Employment of Voluntarily 
Terminated Educators.--An educator who voluntarily terminates 
employment with the Bureau before the expiration of the 
existing employment contract between such educator and the 
Bureau shall not be eligible to be employed in another 
education position in the Bureau during the remainder of the 
term of such contract.
    ``(k) Dual Compensation.--In the case of any educator 
employed in an education position described in subsection 
(l)(1)(A) who--
            ``(1) is employed at the close of a school year;
            ``(2) agrees in writing to serve in such position 
        for the next school year; and
            ``(3) is employed in another position during the 
        recess period immediately preceding such next school 
        year, or during such recess period receives additional 
        compensation referred to in section 5533 of title 5, 
        United States Code, relating to dual compensation,
shall not apply to such educator by reason of any such 
employment during a recess period for any receipt of additional 
compensation.
    ``(l) Voluntary Services.--
            ``(1) In general.--Notwithstanding section 1342 of 
        title 31, United States Code, the Secretary may, 
        subject to the approval of the local school board 
        concerned, accept voluntary services on behalf of 
        Bureau schools.
            ``(2) Federal employee protection.--Nothing in this 
        part requires Federal employees to work without 
        compensation or allows the use of volunteer services to 
        displace or replace Federal employees.
            ``(3) Federal status.--An individual providing 
        volunteer services under this section is a Federal 
        employee only for purposes of chapter 81 of title 5, 
        United States Code, and chapter 171 of title 28, United 
        States Code.
    ``(m) Proration of Pay.--
            ``(1) Election of employee.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, including laws relating 
                to dual compensation, the Secretary, at the 
                election of the employee, shall prorate the 
                salary of an employee employed in an education 
                position for the academic school year over the 
                entire 12-month period.
                    ``(B) Election.--Each educator employed for 
                the academic school year shall annually elect 
                to be paid on a 12-month basis or for those 
                months while school is in session.
                    ``(C) No loss of pay or benefits.--No 
                educator shall suffer a loss of pay or 
                benefits, including benefits under unemployment 
                or other Federal or federally assisted 
                programs, because of such election.
            ``(2) Change of election.--During the course of 
        such year the employee may change election once.
            ``(3) Lump sum payment.--That portion of the 
        employee's pay which would be paid between academic 
        school years may be paid in a lump sum at the election 
        of the employee.
            ``(4) Nonapplicability.--This subsection applies to 
        those individuals employed under the provisions of 
        section 1132 of this title or title 5, United States 
        Code.
            ``(5) Definitions.--For purposes of this 
        subsection, the terms `educator' and `education 
        position' have the meanings contained in paragraphs (1) 
        and (2) of subsection (o).
    ``(n) Extracurricular Activities.--
            ``(1) Stipend.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, the Secretary may 
                provide, for each Bureau area, a stipend in 
                lieu of overtime premium pay or compensatory 
                time off.
                    ``(B) Provision to employees.--Any employee 
                of the Bureau who performs additional 
                activities to provide services to students or 
                otherwise support the school's academic and 
                social programs may elect to be compensated for 
                all such work on the basis of the stipend.
                    ``(C) Nature of stipend.--Such stipend 
                shall be paid as a supplement to the employee's 
                base pay.
            ``(2) Election not to receive stipend.--If an 
        employee elects not to be compensated through the 
        stipend established by this subsection, the appropriate 
        provisions of title 5, United States Code, shall apply.
            ``(3) Applicability of subsection.--This subsection 
        applies to all Bureau employees, regardless of whether 
        the employee is employed under section 1132 of this 
        title or title 5, United States Code.
    ``(o) Definitions.--In this section:
            ``(1) Education position.--The term `education 
        position' means a position in the Bureau the duties and 
        responsibilities of which--
                    ``(A)(i) are performed on a school year 
                basis principally in a Bureau school; and
                    ``(ii) involve--
                            ``(I) classroom or other 
                        instruction or the supervision or 
                        direction of classroom or other 
                        instruction;
                            ``(II) any activity (other than 
                        teaching) which requires academic 
                        credits in educational theory and 
                        practice equal to the academic credits 
                        in educational theory and practice 
                        required for a bachelor's degree in 
                        education from an accredited 
                        institution of higher education;
                            ``(III) any activity in or related 
                        to the field of education 
                        notwithstanding that academic credits 
                        in educational theory and practice are 
                        not a formal requirement for the 
                        conduct of such activity; or
                            ``(IV) support services at, or 
                        associated with, the site of the 
                        school; or
                    ``(B) are performed at the agency level of 
                the Bureau and involve the implementation of 
                education-related programs other than the 
                position for agency superintendent for 
                education.
            ``(2) Educator.--The term `educator' means an 
        individual whose services are required, or who is 
        employed, in an education position.
    ``(p) Covered Individuals; Election.--This section shall 
apply with respect to any educator hired after November 1, 1979 
(and to any educator who elected for coverage under that 
provision after November 1, 1979) and to the position in which 
such individual is employed. The enactment of this section 
shall not affect the continued employment of an individual 
employed on October 31, 1979, in an education position, or such 
person's right to receive the compensation attached to such 
position.
    ``(q) Furlough Without Consent.--
            ``(1) In general.--An educator who was employed in 
        an education position on October 31, 1979, who was 
        eligible to make an election under subsection (p) at 
        that time, and who did not make the election under such 
        subsection, may not be placed on furlough (within the 
        meaning of section 7511(a)(5) of title 5, United States 
        Code, without the consent of such educator for an 
        aggregate of more than 4 weeks within the same calendar 
        year, unless--
                    ``(A) the supervisor, with the approval of 
                the local school board (or of the education 
                line officer upon appeal under paragraph (2)), 
                of the Bureau school at which such educator 
                provides services determines that a longer 
                period of furlough is necessary due to an 
                insufficient amount of funds available for 
                personnel compensation at such school, as 
                determined under the financial plan process as 
                determined under section 1129(b); and
                    ``(B) all educators (other than principals 
                and clerical employees) providing services at 
                such Bureau school are placed on furloughs of 
                equal length, except that the supervisor, with 
                the approval of the local school board (or of 
                the agency education line officer upon appeal 
                under paragraph (2)), may continue 1 or more 
                educators in pay status if--
                            ``(i) such educators are needed to 
                        operate summer programs, attend summer 
                        training sessions, or participate in 
                        special activities including curriculum 
                        development committees; and
                            ``(ii) such educators are selected 
                        based upon such educator's 
                        qualifications after public notice of 
                        the minimum qualifications reasonably 
                        necessary and without discrimination as 
                        to supervisory, nonsupervisory, or 
                        other status of the educators who 
                        apply.
            ``(2) Appeals.--The supervisor of a Bureau school 
        may appeal to the appropriate agency education line 
        officer any refusal by the local school board to 
        approve any determination of the supervisor that is 
        described in paragraph (1)(A) by filing a written 
        statement describing the determination and the reasons 
        the supervisor believes such determination should be 
        approved. A copy of such statement shall be submitted 
        to the local school board and such board shall be 
        afforded an opportunity to respond, in writing, to such 
        appeal. After reviewing such written appeal and 
        response, the education line officer may, for good 
        cause, approve the determination of the supervisor. The 
        educational line officer shall transmit the 
        determination of such appeal in the form of a written 
        opinion to such local school board and to the 
        supervisor identifying the reasons for approving such 
        determination.
    ``(r) Stipends.--The Secretary is authorized to provide 
annual stipends to teachers who become certified by the 
National Board of Professional Teaching Standards, the National 
Council on Teacher Quality, or other nationally recognized 
certification or credentialing organizations.

``SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

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

``SEC. 1134. RECRUITMENT OF INDIAN EDUCATORS.

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

``SEC. 1135. ANNUAL REPORT; AUDITS.

    ``(a) Annual Reports.--The Secretary shall submit to each 
appropriate committee of Congress, all Bureau-funded schools, 
and the tribal governing bodies of such schools, a detailed 
annual report on the state of education within the Bureau, and 
any problems encountered in Indian education during the period 
covered by the report, that includes--
            ``(1) suggestions for the improvement of the Bureau 
        educational system and for increasing tribal or local 
        Indian control of such system; and
            ``(2) information on the status of tribally 
        controlled community colleges.
    ``(b) Budget Request.--The annual budget request for the 
education programs of the Bureau, as submitted as part of the 
President's next annual budget request under section 1105 of 
title 31, United States Code, shall include the plans required 
by sections 1121(c), 1122(c), and 1124(c).
    ``(c) Financial and Compliance Audits.--The Inspector 
General of the Department of the Interior shall establish a 
system to ensure that financial and compliance audits, based 
upon the extent to which a school described in subsection (a) 
has complied with the local financial plan under section 1130, 
are conducted of each Bureau-operated school at least once 
every 3 years.
    ``(d) Administrative Evaluation of Schools.--The Director 
shall, at least once every 3 to 5 years, conduct a 
comprehensive evaluation of Bureau-operated schools. Such 
evaluation shall be in addition to any other program review or 
evaluation that may be required under Federal law.

``SEC. 1136. RIGHTS OF INDIAN STUDENTS.

    ``The Secretary shall prescribe such rules and regulations 
as are necessary to ensure the constitutional and civil rights 
of Indian students attending Bureau-funded schools, including 
such students' rights to--
            ``(1) privacy under the laws of the United States;
            ``(2) freedom of religion and expression; and
            ``(3) to due process in connection with 
        disciplinary actions, suspensions, and expulsions.

``SEC. 1137. REGULATIONS.

    ``(a) Promulgation.--
            ``(1) In General.--The Secretary may promulgate 
        only such regulations--
                    ``(A) as are necessary to ensure compliance 
                with the specific provisions of this part; and
                    ``(B) as the Secretary is authorized to 
                promulgate pursuant to section 5211 of the 
                Tribally Controlled Schools Act of 1988 (25 
                U.S.C. 2510).
            ``(2) Publication.--In promulgating the 
        regulations, the Secretary shall--
                    ``(A) publish proposed regulations in the 
                Federal Register; and
                    ``(B) provide a period of not less than 120 
                days for public comment and consultation on the 
                regulations.
            ``(3) Citation.--The regulations shall contain, 
        immediately following each regulatory section, a 
        citation to any statutory provision providing authority 
        to promulgate such regulatory section.
    ``(b) Miscellaneous.--The provisions of this Act shall 
supersede any conflicting provisions of law (including any 
conflicting regulations) in effect on the day before the date 
of enactment of this Act and the Secretary is authorized to 
repeal any regulation inconsistent with the provisions of this 
Act.

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

    ``(a) Regional Meetings.--Prior to publishing any proposed 
regulations under subsection (b)(1), and prior to establishing 
the negotiated rulemaking committee under subsection (b)(3), 
the Secretary shall convene regional meetings to consult with 
personnel of the Office of Indian Education Programs, educators 
at Bureau schools, and tribal officials, parents, teachers, 
administrators, and school board members of tribes served by 
Bureau-funded schools to provide guidance to the Secretary on 
the content of regulations authorized to be promulgated under 
this part and the Tribally Controlled Schools Act of 1988.
    ``(b) Negotiated Rulemaking.--
            ``(1) In general.--Notwithstanding sections 563(a) 
        and 565(a) of title 5, United States Code, the 
        Secretary shall promulgate regulations authorized under 
        subsection (a) and under the Tribally Controlled 
        Schools Act of 1988, in accordance with the negotiated 
        rulemaking procedures provided for under subchapter III 
        of chapter 5 of title 5, United States Code, and shall 
        publish final regulations in the Federal Register.
            ``(2) Notification to congress.--If draft 
        regulations implementing this part and the Tribally 
        Controlled Schools Act of 1988 are not promulgated in 
        final form within 18 months after the date of enactment 
        of the Native American Education Improvement Act of 
        2001, the Secretary shall notify the appropriate 
        committees of Congress of which draft regulations were 
        not promulgated in final form by the deadline and the 
        reason such final regulations were not promulgated.
            ``(3) Rulemaking committee.--The Secretary shall 
        establish a negotiated rulemaking committee to carry 
        out this subsection. In establishing such committee, 
        the Secretary shall--
                    ``(A) apply the procedures provided for 
                under subchapter III of chapter 5 of title 5, 
                United States Code, in a manner that reflects 
                the unique government-to-government 
                relationship between Indian tribes and the 
                United States;
                    ``(B) ensure that the membership of the 
                committee includes only representatives of the 
                Federal Government and of tribes served by 
                Bureau-funded schools;
                    ``(C) select the tribal representatives of 
                the committee from among individuals nominated 
                by the representatives of the tribal and 
                tribally operated schools;
                    ``(D) ensure, to the maximum extent 
                possible, that the tribal representative 
                membership on the committee reflects the 
                proportionate share of students from tribes 
                served by the Bureau-funded school system; and
                    ``(E) comply with the Federal Advisory 
                Committee Act (5 U.S.C. App.).
            ``(4) Special rule.--The Secretary shall carry out 
        this section using the general administrative funds of 
        the Department of the Interior. In accordance with 
        subchapter III of chapter 5 of title 5, United States 
        Code, and section 7(d) of the Federal Advisory 
        Committee Act, payment of costs associated with 
        negotiated rulemaking shall include the reasonable 
        expenses of committee members.
    ``(c) Application of Section.--
            ``(1) Supremacy of provisions.--The provisions of 
        this section shall supersede any conflicting 
        regulations in effect on the day before the date of 
        enactment of this part, and the Secretary may repeal 
        any regulation that is inconsistent with the provisions 
        of this part.
            ``(2) Modifications.--The Secretary may modify 
        regulations promulgated under this section or the 
        Tribally Controlled Schools Act of 1988, only in 
        accordance with this section.

``SEC. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    ``(a) In General.--The Secretary shall provide grants to 
tribes, tribal organizations, and consortia of tribes and 
tribal organizations to fund early childhood development 
programs that are operated by such tribes, organizations, or 
consortia.
    ``(b) Amount of Grants.--
            ``(1) In general.--The total amount of the grants 
        provided under subsection (a) with respect to each 
        tribe, tribal organization, or consortium of tribes or 
        tribal organizations for each fiscal year shall be 
        equal to the amount which bears the same relationship 
        to the total amount appropriated under the authority of 
        subsection (g) for such fiscal year (less amounts 
        provided under subsection (f)) as--
                    ``(A) the total number of children under 6 
                years of age who are members of--
                            ``(i) such tribe;
                            ``(ii) the tribe that authorized 
                        such tribal organization; or
                            ``(iii) any tribe that--
                                    ``(I) is a member of such 
                                consortium; or
                                    ``(II) authorizes any 
                                tribal organization that is a 
                                member of such consortium; 
                                bears to
                    ``(B) the total number of all children 
                under 6 years of age who are members of any 
                tribe that--
                            ``(i) is eligible to receive funds 
                        under subsection (a);
                            ``(ii) is a member of a consortium 
                        that is eligible to receive such funds; 
                        or
                            ``(iii) authorizes a tribal 
                        organization that is eligible to 
                        receive such funds.
            ``(2) Limitation.--No grant may be provided under 
        subsection (a)--
                    ``(A) to any tribe that has less than 500 
                members;
                    ``(B) to any tribal organization which is 
                authorized--
                            ``(i) by only one tribe that has 
                        less than 500 members; or
                            ``(ii) by one or more tribes that 
                        have a combined total membership of 
                        less than 500 members; or
                    ``(C) to any consortium composed of tribes, 
                or tribal organizations authorized by tribes, 
                that have a combined total tribal membership of 
                less than 500 members.
    ``(c) Application.--
            ``(1) In general.--A grant may be provided under 
        subsection (a) to a tribe, tribal organization, or 
        consortium of tribes and tribal organizations only if 
        the tribe, organization, or consortium submits to the 
        Secretary an application for the grant at such time and 
        in such form as the Secretary shall prescribe.
            ``(2) Contents.--Applications submitted under 
        paragraph (1) shall set forth the early childhood 
        development program that the applicant desires to 
        operate.
    ``(d) Requirement of Programs Funded.--The early childhood 
development programs that are funded by grants provided under 
subsection (a)--
            ``(1) shall coordinate existing programs and may 
        provide services that meet identified needs of parents 
        and children under 6 years of age which are not being 
        met by existing programs, including--
                    ``(A) prenatal care;
                    ``(B) nutrition education;
                    ``(C) health education and screening;
                    ``(D) family literacy services;
                    ``(E) educational testing; and
                    ``(F) other educational services;
            ``(2) may include instruction in the language, art, 
        and culture of the tribe; and
            ``(3) shall provide for periodic assessment of the 
        program.
    ``(e) Coordination of Family Literacy Programs.--Family 
literacy programs operated under this section and other family 
literacy programs operated by the Bureau of Indian Affairs 
shall be coordinated with family literacy programs for Indian 
children under part B of title I of the Elementary and 
Secondary Education Act of 1965 in order to avoid duplication 
and to encourage the dissemination of information on quality 
family literacy programs serving Indians.
    ``(f) Administrative Costs.--The Secretary shall, out of 
funds appropriated under subsection (g), include in the grants 
provided under subsection (a) amounts for administrative costs 
incurred by the tribe, tribal organization, or consortium of 
tribes in establishing and maintaining the early childhood 
development program.
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as may be necessary.

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

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

``SEC. 1141. DEFINITIONS.

    ``For the purposes of this part, unless otherwise 
specified:
            ``(1) Agency school board.--The term `agency school 
        board' means a body--
                    ``(A) the members of which are appointed by 
                all of the school boards of the schools located 
                within an agency, including schools operated 
                under contract or grant; and
                    ``(B) the number of such members is 
                determined by the Secretary, in consultation 
                with the affected tribes;
        except that, in agencies serving a single school, the 
        school board of such school shall fulfill these duties, 
        and in agencies having schools or a school operated 
        under contract or grant, 1 such member at least shall 
        be from such a school.
            ``(2) Bureau.--The term `Bureau' means the Bureau 
        of Indian Affairs of the Department of the Interior.
            ``(3) Bureau-funded school.--The term `Bureau-
        funded school' means--
                    ``(A) a Bureau school;
                    ``(B) a contract or grant school; or
                    ``(C) a school for which assistance is 
                provided under the Tribally Controlled Schools 
                Act of 1988.
            ``(4) Bureau school.--The term `Bureau school' 
        means a Bureau-operated elementary or secondary day or 
        boarding school or a Bureau-operated dormitory for 
        students attending a school other than a Bureau school.
            ``(5) Complementary educational facilities.--The 
        term `complementary educational facilities' means 
        educational program functional spaces such as 
        libraries, gymnasiums, and cafeterias.
            ``(6) Contract or grant school.--The term `contract 
        or grant school' means an elementary school, secondary 
        school, or dormitory that receives financial assistance 
        for its operation under a contract, grant, or agreement 
        with the Bureau under section 102, 103(a), or 208 of 
        the Indian Self-Determination and Education Assistance 
        Act, or under the Tribally Controlled Schools Act of 
        1988.
            ``(7) Director.--The term `Director' means the 
        Director of the Office of Indian Education Programs.
            ``(8) Education line officer.--The term `education 
        line officer' means a member of the education personnel 
        under the supervision of the Director of the Office, 
        whether located in a central, area, or agency office.
            ``(9) Family literacy services.--The term `family 
        literacy services' has the meaning given that term in 
        section 8101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801).
            ``(10) Financial plan.--The term `financial plan' 
        means a plan of services provided by each Bureau 
        school.
            ``(11) Indian organization.--the term `Indian 
        organization' means any group, association, 
        partnership, corporation, or other legal entity owned 
        or controlled by a federally recognized Indian tribe or 
        tribes, or a majority of whose members are members of 
        federally recognized tribes.
            ``(12) Inherently federal functions.--The term 
        `inherently Federal functions' means functions and 
        responsibilities which, under section 1126(c), are 
        noncontractable, including--
                    ``(A) the allocation and obligation of 
                Federal funds and determinations as to the 
                amounts of expenditures;
                    ``(B) the administration of Federal 
                personnel laws for Federal employees;
                    ``(C) the administration of Federal 
                contracting and grant laws, including the 
                monitoring and auditing of contracts and grants 
                in order to maintain the continuing trust, 
                programmatic, and fiscal responsibilities of 
                the Secretary;
                    ``(D) the conducting of administrative 
                hearings and deciding of administrative 
                appeals;
                    ``(E) the determination of the Secretary's 
                views and recommendations concerning 
                administrative appeals or litigation and the 
                representation of the Secretary in 
                administrative appeals and litigation;
                    ``(F) the issuance of Federal regulations 
                and policies as well as any documents published 
                in the Federal Register;
                    ``(G) reporting to Congress and the 
                President;
                    ``(H) the formulation of the Secretary's 
                and the President's policies and their 
                budgetary and legislative recommendations and 
                views; and
                    ``(I) the nondelegable statutory duties of 
                the Secretary relating to trust resources.
            ``(13) Local educational agency.--The term `local 
        educational agency' means a board of education or other 
        legally constituted local school authority having 
        administrative control and direction of free public 
        education in a county, township, or independent or 
        other school district located within a State, and 
        includes any State agency that directly operates and 
        maintains facilities for providing free public 
        education.
            ``(14) Local school board.--The term `local school 
        board', when used with respect to a Bureau school, 
        means a body chosen in accordance with the laws of the 
        tribe to be served or, in the absence of such laws, 
        elected by the parents of the Indian children attending 
        the school, except that, for a school serving a 
        substantial number of students from different tribes--
                    ``(A) the members of the body shall be 
                appointed by the tribal governing bodies of the 
                tribes affected; and
                    ``(B) the number of such members shall be 
                determined by the Secretary in consultation 
                with the affected tribes.
            ``(15) Office.--The term `Office' means the Office 
        of Indian Education Programs within the Bureau.
            ``(16) Regulation.--
                    ``(A) In general.--The term `regulation' 
                means any part of a statement of general or 
                particular applicability of the Secretary 
                designed to carry out, interpret, or prescribe 
                law or policy in carrying out this Act.
                    ``(B) Rule of construction.--Nothing in 
                subparagraph (A) or any other provision of this 
                title shall be construed to prohibit the 
                Secretary from issuing guidance, internal 
                directives, or other documents similar to the 
                documents found in the Indian Affairs Manual of 
                the Bureau of Indian Affairs.
            ``(17) Secretary.--The term `Secretary' means the 
        Secretary of the Interior.
            ``(18) Supervisor.--The term `supervisor' means the 
        individual in the position of ultimate authority at a 
        Bureau school.
            ``(19) Tribal governing body.--The term `tribal 
        governing body' means, with respect to any school, the 
        tribal governing body, or tribal governing bodies, that 
        represent at least 90 percent of the students served by 
        such school.
            ``(20) Tribe.--The term `tribe' means any Indian 
        tribe, band, nation, or other organized group or 
        community, including an Alaska Native Regional 
        Corporation or Village Corporation (as defined in or 
        established pursuant to the Alaska Native Claims 
        Settlement Act), which is recognized as eligible for 
        the special programs and services provided by the 
        United States to Indians because of their status as 
        Indians.''.

SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

    The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 
et seq.) is amended by striking sections 5202 through 5212 and 
inserting the following new sections:

``SEC. 5202. DECLARATION OF POLICY.

    ``(a) Recognition.--Congress recognizes that the Indian 
Self-Determination and Education Assistance Act, which was a 
product of the legitimate aspirations and a recognition of the 
inherent authority of Indian nations, was and is a crucial 
positive step towards tribal and community control and that the 
United States has an obligation to assure maximum Indian 
participation in the direction of educational services so as to 
render the persons administering such services and the services 
themselves more responsive to the needs and desires of Indian 
communities.
    ``(b) Commitment.--Congress declares its commitment to the 
maintenance of the Federal Government's unique and continuing 
trust relationship with and responsibility to the Indian people 
for the education of Indian children through the establishment 
of a meaningful Indian self-determination policy for education 
that will deter further perpetuation of Federal bureaucratic 
domination of programs.
    ``(c) National Goal.--Congress declares that a national 
goal of the United States is to provide the resources, 
processes, and structure that will enable tribes and local 
communities to obtain the quantity and quality of educational 
services and opportunities that will permit Indian children--
            ``(1) to compete and excel in areas of their 
        choice; and
            ``(2) to achieve the measure of self-determination 
        essential to their social and economic well-being.
    ``(d) Educational Needs.--Congress affirms--
            ``(1) true self-determination in any society of 
        people is dependent upon an educational process that 
        will ensure the development of qualified people to 
        fulfill meaningful leadership roles;
            ``(2) that Indian people have special and unique 
        educational needs, including the need for programs to 
        meet the linguistic and cultural aspirations of Indian 
        tribes and communities; and
            ``(3) that those needs may best be met through a 
        grant process.
    ``(e) Federal Relations.--Congress declares a commitment to 
the policies described in this section and support, to the full 
extent of congressional responsibility, for Federal relations 
with the Indian nations.
    ``(f) Termination.--Congress repudiates and rejects House 
Concurrent Resolution 108 of the 83d Congress and any policy of 
unilateral termination of Federal relations with any Indian 
Nation.

``SEC. 5203. GRANTS AUTHORIZED.

    ``(a) In General.--
            ``(1) Eligibility.--The Secretary shall provide 
        grants to Indian tribes, and tribal organizations 
        that--
                    ``(A) operate contract schools under title 
                XI of the Education Amendments of 1978 and 
                notify the Secretary of their election to 
                operate the schools with assistance under this 
                part rather than continuing the schools as 
                contract schools;
                    ``(B) operate other tribally controlled 
                schools eligible for assistance under this part 
                and submit applications (which are approved by 
                their tribal governing bodies) to the Secretary 
                for such grants; or
                    ``(C) elect to assume operation of Bureau-
                funded schools with the assistance under this 
                part and submit applications (which are 
                approved by their tribal governing bodies) to 
                the Secretary for such grants.
            ``(2) Deposit of funds.--Grants provided under this 
        part shall be deposited into the general operating fund 
        of the tribally controlled school with respect to which 
        the grant is made.
            ``(3) Use of funds.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, grants provided 
                under this part shall be used to defray, at the 
                discretion of the school board of the tribally 
                controlled school with respect to which the 
                grant is provided, any expenditures for 
                education related activities for which any 
                funds that compose the grant may be used under 
                the laws described in section 5205(a), 
                including expenditures for--
                            ``(i) school operations, academic, 
                        educational, residential, guidance and 
                        counseling, and administrative 
                        purposes; and
                            ``(ii) support services for the 
                        school, including transportation.
                    ``(B) Exception.--Grants provided under 
                this part may, at the discretion of the school 
                board of the tribally controlled school with 
                respect to which such grant is provided, be 
                used to defray operations and maintenance 
                expenditures for the school if any funds for 
                the operation and maintenance of the school are 
                allocated to the school under the provisions of 
                any of the laws described in section 5205(a).
    ``(b) Limitations.--
            ``(1) One grant per tribe or organization per 
        fiscal year.--Not more than 1 grant may be provided 
        under this part with respect to any Indian tribe or 
        tribal organization for any fiscal year.
            ``(2) Nonsectarian use.--Funds provided under any 
        grant made under this part may not be used in 
        connection with religious worship or sectarian 
        instruction.
            ``(3) Administrative costs limitation.--Funds 
        provided under any grant under this part may not be 
        expended for administrative costs (as defined in 
        section 1128(h)(1) of the Education Amendments of 1978) 
        in excess of the amount generated for such costs under 
        section 1128 of such Act.
    ``(c) Limitation on Transfer of Funds Among School Sites.--
            ``(1) In general.--In the case of a grantee that 
        operates schools at more than 1 school site, the 
        grantee may expend at any school site operated by the 
        grantee not more than the lesser of--
                    ``(A) 10 percent of the funds allocated for 
                another school site under section 1128 of the 
                Education Amendments of 1978; or
                    ``(B) $400,000 of the funds allocated for 
                another school site.
            ``(2) Definition of school site.--For purposes of 
        this subsection, the term `school site' means the 
        physical location and the facilities of an elementary 
        or secondary educational or residential program 
        operated by, or under contract or grant with, the 
        Bureau for which a discreet student count is identified 
        under the funding formula established under section 
        1127 of the Education Amendments of 1978.
    ``(d) No Requirement To Accept Grants.--Nothing in this 
part may be construed--
            ``(1) to require a tribe or tribal organization to 
        apply for or accept; or
            ``(2) to allow any person to coerce any tribe or 
        tribal organization to apply for, or accept,
a grant under this part to plan, conduct, and administer all 
of, or any portion of, any Bureau program. Such applications 
and the timing of such applications shall be strictly 
voluntary. Nothing in this part may be construed as allowing or 
requiring any grant with any entity other than the entity to 
which the grant is provided.
    ``(e) No Effect on Federal Responsibility.--Grants provided 
under this part shall not terminate, modify, suspend, or reduce 
the responsibility of the Federal Government to provide a 
program.
    ``(f) Retrocession.--
            ``(1) In general.--Whenever a tribal governing body 
        requests retrocession of any program for which 
        assistance is provided under this part, such 
        retrocession shall become effective upon a date 
        specified by the Secretary that is not later than 120 
        days after the date on which the tribal governing body 
        requests the retrocession. A later date may be 
        specified if mutually agreed upon by the Secretary and 
        the tribal governing body. If such a program is 
        retroceded, the Secretary shall provide to any Indian 
        tribe served by such program at least the same quantity 
        and quality of services that would have been provided 
        under such program at the level of funding provided 
        under this part prior to the retrocession.
            ``(2) Status after retrocession.--The tribe 
        requesting retrocession shall specify whether the 
        retrocession is to status as a Bureau-operated school 
        or as a school operated under contract under the Indian 
        Self-Determination and Education Assistance Act.
            ``(3) Transfer of equipment and materials.--Except 
        as otherwise determined by the Secretary, the tribe or 
        tribal organization operating the program to be 
        retroceded must transfer to the Secretary (or to the 
        tribe or tribal organization which will operate the 
        program as a contract school) the existing equipment 
        and materials which were acquired--
                    ``(A) with assistance under this part; or
                    ``(B) upon assumption of operation of the 
                program under this part, if the school was a 
                Bureau-funded school under title XI of the 
                Education Amendments of 1978 before receiving 
                assistance under this part.
    ``(g) Prohibition of Termination for Administrative 
Convenience.--Grants provided under this part may not be 
terminated, modified, suspended, or reduced solely for the 
convenience of the administering agency.

``SEC. 5204. COMPOSITION OF GRANTS.

    ``(a) In General.--The grant provided under this part to an 
Indian tribe or tribal organization for any fiscal year shall 
consist of--
            ``(1) the total amount of funds allocated for such 
        fiscal year under sections 1127 and 1128 of the 
        Education Amendments of 1978 with respect to the 
        tribally controlled schools eligible for assistance 
        under this part which are operated by such Indian tribe 
        or tribal organization, including, but not limited to, 
        funds provided under such sections, or under any other 
        provision of law, for transportation costs;
            ``(2) to the extent requested by such Indian tribe 
        or tribal organization, the total amount of funds 
        provided from operations and maintenance accounts and, 
        notwithstanding section 105 of the Indian Self-
        Determination Act, or any other provision of law, other 
        facilities accounts for such schools for such fiscal 
        year (including but not limited to those referenced 
        under section 1126(d) of the Education Amendments of 
        1978 or any other law); and
            ``(3) the total amount of funds that are allocated 
        to such schools for such fiscal year under--
                    ``(A) title I of the Elementary and 
                Secondary Education Act of 1965;
                    ``(B) the Individuals with Disabilities 
                Education Act; and
                    ``(C) any other Federal education law, that 
                are allocated to such schools for such fiscal 
                year.
    ``(b) Special Rules.--
            ``(1) In general.--
                    ``(A) Applicability of certain laws.--Funds 
                allocated to a tribally controlled school by 
                reason of paragraph (1) or (2) of subsection 
                (a) shall be subject to the provisions of this 
                part and shall not be subject to any additional 
                restriction, priority, or limitation that is 
                imposed by the Bureau with respect to funds 
                provided under--
                            ``(i) title I of the Elementary and 
                        Secondary Education Act of 1965;
                            ``(ii) the Individuals with 
                        Disabilities Education Act; or
                            ``(iii) any Federal education law 
                        other than title XI of the Education 
                        Amendments of 1978.
                    ``(B) Applicability of bureau provisions.--
                Indian tribes and tribal organizations to which 
                grants are provided under this part, and 
                tribally controlled schools for which such 
                grants are provided, shall not be subject to 
                any requirements, obligations, restrictions, or 
                limitations imposed by the Bureau that would 
                otherwise apply solely by reason of the receipt 
                of funds provided under any law referred to in 
                clause (i), (ii), or (iii) of subparagraph (A).
            ``(2) Schools considered contract schools.--
        Tribally controlled schools for which grants are 
        provided under this part shall be treated as contract 
        schools for the purposes of allocation of funds under 
        sections 1126(e), 1127, and 1128 of the Education 
        Amendments of 1978.
            ``(3) Schools considered bureau schools.--Tribally 
        controlled schools for which grants are provided under 
        this chapter shall be treated as Bureau schools for the 
        purposes of allocation of funds provided under--
                    ``(A) title I of the Elementary and 
                Secondary Education Act of 1965;
                    ``(B) the Individuals with Disabilities 
                Education Act; and
                    ``(C) any other Federal education law, that 
                are distributed through the Bureau.
            ``(4) Accounts; use of certain funds.--
                    ``(A) Separate account.--
                            ``(i) In general.--Notwithstanding 
                        section 5204(a)(2), with respect to 
                        funds from facilities improvement and 
                        repair, alteration and renovation 
                        (major or minor), health and safety, or 
                        new construction accounts included in 
                        the grant provided under section 
                        5204(a), the grant recipient shall 
                        maintain a separate account for such 
                        funds.
                            ``(ii) Submission of accounting.--
                        At the end of the period designated for 
                        the work covered by the funds received, 
                        the grant recipient shall submit to the 
                        Secretary a separate accounting of the 
                        work done and the funds expended.
                            ``(iii) Use of funds.--Funds 
                        received from those accounts may only 
                        be used for the purpose for which the 
                        funds were appropriated and for the 
                        work encompassed by the application or 
                        submission for which the funds were 
                        received.
                            ``(iv) Completion of project.--Upon 
                        completion of a project for which a 
                        separate account is established under 
                        this paragraph, the portion of the 
                        grant related to such project may be 
                        closed out upon agreement by the 
                        grantee and the Secretary.
                    ``(B) Requirements for projects.--
                            ``(i) Regulatory requirements.--
                        With respect to a grant to a tribally 
                        controlled school under this part for 
                        new construction or facilities 
                        improvements and repair in excess of 
                        $100,000, such grant shall be subject 
                        to the Administrative and Audit 
                        Requirements and Cost Principles for 
                        Assistance Programs contained in part 
                        12 of title 43, Code of Federal 
                        Regulations.
                            ``(ii) Exception.--Notwithstanding 
                        clause (i), grants described in such 
                        clause shall not be subject to section 
                        12.61 of title 43, Code of Federal 
                        Regulations. The Secretary and the 
                        grantee shall negotiate and determine a 
                        schedule of payments for the work to be 
                        performed.
                            ``(iii) Applications.--In 
                        considering applications for a grant 
                        described in clause (i), the Secretary 
                        shall consider whether the Indian tribe 
                        or tribal organization involved would 
                        be deficient in ensuring that the 
                        construction projects under the 
                        proposed grant conform to applicable 
                        building standards and codes and 
                        Federal, tribal, or State health and 
                        safety standards as required under 
                        section 1124 of the Education 
                        Amendments of 1978 (25 U.S.C. 2005(a)) 
                        with respect to organizational and 
                        financial management capabilities.
                            ``(iv) Disputes.--Any disputes 
                        between the Secretary and any grantee 
                        concerning a grant described in clause 
                        (i) shall be subject to the dispute 
                        provisions contained in section 
                        5209(e).
                    ``(C) New construction.--Notwithstanding 
                subparagraph (A), a school receiving a grant 
                under this part for facilities improvement and 
                repair may use such grant funds for new 
                construction if the tribal governing body or 
                tribal organization that submits the 
                application for the grant provides funding for 
                the new construction equal to at least 25 
                percent of the total cost of such new 
                construction.
                    ``(D) Period.--In a case in which the 
                appropriations measure under which the funds 
                described in subparagraph (A) are made 
                available or the application submitted for the 
                funds does not stipulate a period for the work 
                covered by the funds, the Secretary and the 
                grant recipient shall consult and determine 
                such a period prior to the transfer of the 
                funds. A period so determined may be extended 
                upon mutual agreement of the Secretary and the 
                grant recipient.
            ``(5) Enforcement of request to include funds.--
                    ``(A) In general.--If the Secretary fails 
                to carry out a request filed by an Indian tribe 
                or tribal organization to include in such tribe 
                or organization's grant under this part the 
                funds described in subsection (a)(2) within 180 
                days after the filing of the request, the 
                Secretary shall--
                            ``(i) be deemed to have approved 
                        such request; and
                            ``(ii) immediately upon the 
                        expiration of such 180-day period amend 
                        the grant accordingly.
                    ``(B) Rights.--A tribe or organization 
                described in subparagraph (A) may enforce its 
                rights under subsection (a)(2) and this 
                paragraph, including rights relating to any 
                denial or failure to act on such tribe's or 
                organization's request, pursuant to the dispute 
                authority described in section 5209(e).

``SEC. 5205. ELIGIBILITY FOR GRANTS.

    ``(a) Rules.--
            ``(1) In general.--A tribally controlled school is 
        eligible for assistance under this part if the school--
                    ``(A) on April 28, 1988, was a contract 
                school under title XI of the Education 
                Amendments of 1978 and the tribe or tribal 
                organization operating the school submits to 
                the Secretary a written notice of election to 
                receive a grant under this part;
                    ``(B) was a Bureau-operated school under 
                title XI of the Education Amendments of 1978 
                and has met the requirements of subsection (b);
                    ``(C) is a school for which the Bureau has 
                not provided funds, but which has met the 
                requirements of subsection (c); or
                    ``(D) is a school with respect to which an 
                election has been made under paragraph (2) and 
                which has met the requirements of subsection 
                (b).
            ``(2) New schools.--Any application which has been 
        submitted under the Indian Self-Determination and 
        Education Assistance Act by an Indian tribe for a 
        school which is not in operation on the date of 
        enactment of the Native American Education Improvement 
        Act of 2001 shall be reviewed under the guidelines and 
        regulations for applications submitted under the Indian 
        Self-Determination and Education Assistance Act that 
        were in effect at the time the application was 
        submitted, unless the Indian tribe or tribal 
        organization elects to have the application reviewed 
        under the provisions of subsection (b).
    ``(b) Additional Requirements for Bureau-Funded Schools and 
Certain Electing Schools.--
            ``(1) Bureau-funded schools.--A school that was a 
        Bureau-funded school under title XI of the Education 
        Amendments of 1978 on the date of enactment of the 
        Native American Education Improvement Act of 2001 and 
        any school with respect to which an election is made 
        under subsection (a)(2), meets the requirements of this 
        subsection if--
                    ``(A) the Indian tribe or tribal 
                organization that operates, or desires to 
                operate, the school submits to the Secretary an 
                application requesting that the Secretary--
                            ``(i) transfer operation of the 
                        school to the Indian tribe or tribal 
                        organization, if the Indian tribe or 
                        tribal organization is not already 
                        operating the school; and
                            ``(ii) make a determination as to 
                        whether the school is eligible for 
                        assistance under this part; and
                    ``(B) the Secretary makes a determination 
                that the school is eligible for assistance 
                under this part.
            ``(2) Certain electing schools.--
                    ``(A) In general.--By not later than the 
                date that is 120 days after the date on which 
                an application is submitted to the Secretary 
                under paragraph (1)(A), the Secretary shall 
                determine--
                            ``(i) in the case of a school which 
                        is not being operated by the Indian 
                        tribe or tribal organization, whether 
                        to transfer operation of the school to 
                        the Indian tribe or tribal 
                        organization; and
                            ``(ii) whether the school is 
                        eligible for assistance under this 
                        part.
                    ``(B) Other determinations.--In considering 
                applications submitted under paragraph (1)(A), 
                the Secretary--
                            ``(i) shall transfer operation of 
                        the school to the Indian tribe or 
                        tribal organization, if the tribe or 
                        tribal organization is not already 
                        operating the school; and
                            ``(ii) shall determine that the 
                        school is eligible for assistance under 
                        this part, unless the Secretary finds 
                        by clear and convincing evidence that 
                        the services to be provided by the 
                        Indian tribe or tribal organization 
                        will be deleterious to the welfare of 
                        the Indians served by the school.
                    ``(C) Considerations.--In considering 
                applications submitted under paragraph (1)(A), 
                the Secretary shall consider whether the Indian 
                tribe or tribal organization would be deficient 
                in operating the school with respect to--
                            ``(i) equipment;
                            ``(ii) bookkeeping and accounting 
                        procedures;
                            ``(iii) ability to adequately 
                        manage a school; or
                    ``(iv) adequately trained personnel.
    ``(c) Additional Requirements for a School Which Is Not a 
Bureau-Funded School.--
            ``(1) In general.--A school which is not a Bureau-
        funded school under title XI of the Education 
        Amendments of 1978 meets the requirements of this 
        subsection if--
                    ``(A) the Indian tribe or tribal 
                organization that operates, or desires to 
                operate, the school submits to the Secretary an 
                application requesting a determination by the 
                Secretary as to whether the school is eligible 
                for assistance under this part; and
                    ``(B) the Secretary makes a determination 
                that a school is eligible for assistance under 
                this part.
            ``(2) Deadline for determination by secretary.--
                    ``(A) In general.--By not later than the 
                date that is 180 days after the date on which 
                an application is submitted to the Secretary 
                under paragraph (1)(A), the Secretary shall 
                determine whether the school is eligible for 
                assistance under this part.
                    ``(B) Considerations.--In making the 
                determination under subparagraph (A), the 
                Secretary shall give equal consideration to 
                each of the following factors:
                            ``(i) With respect to the 
                        applicant's proposal--
                                    ``(I) the adequacy of 
                                facilities or the potential to 
                                obtain or provide adequate 
                                facilities;
                                    ``(II) geographic and 
                                demographic factors in the 
                                affected areas;
                                    ``(III) adequacy of the 
                                applicant's program plans;
                                    ``(IV) geographic proximity 
                                of comparable public education; 
                                and
                                    ``(V) the needs as 
                                expressed by all affected 
                                parties, including but not 
                                limited to students, families, 
                                tribal governments at both the 
                                central and local levels, and 
                                school organizations.
                            ``(ii) With respect to all 
                        education services already available--
                                    ``(I) geographic and 
                                demographic factors in the 
                                affected areas;
                                    ``(II) adequacy and 
                                comparability of programs 
                                already available;
                                    ``(III) consistency of 
                                available programs with tribal 
                                education codes or tribal 
                                legislation on education; and
                                    ``(IV) the history and 
                                success of these services for 
                                the proposed population to be 
                                served, as determined from all 
                                factors including, if relevant, 
                                standardized examination 
                                performance.
                    ``(C) Geographic proximity.--The Secretary 
                may not make a determination under this 
                paragraph that is primarily based upon the 
                geographic proximity of comparable public 
                education.
                    ``(D) Other information.--Applications 
                submitted under paragraph (1)(A) shall include 
                information on the factors described in 
                subparagraph (B)(i), but the applicant may also 
                provide the Secretary such information relative 
                to the factors described in subparagraph 
                (B)(ii) as the applicant considers appropriate.
                    ``(E) Deadline.--If the Secretary fails to 
                make a determination under subparagraph (A) 
                with respect to an application within 180 days 
                after the date on which the Secretary received 
                the application, the Secretary shall be treated 
                as having made a determination that the 
                tribally controlled school is eligible for 
                assistance under the title and the grant shall 
                become effective 18 months after the date on 
                which the Secretary received the application, 
                or on an earlier date, at the Secretary's 
                discretion.
    ``(d) Filing of Applications and Reports.--
            ``(1) In general.--All applications and reports 
        submitted to the Secretary under this part, and any 
        amendments to such applications or reports, shall be 
        filed with the education line officer designated by the 
        Director of the Office of Indian Education Programs of 
        the Bureau of Indian Affairs. The date on which such 
        filing occurs shall, for purposes of this part, be 
        treated as the date on which the application or 
        amendment was submitted to the Secretary.
            ``(2) Supporting documentation.--Any application 
        that is submitted under this chapter shall be 
        accompanied by a document indicating the action taken 
        by the tribal governing body in authorizing such 
        application.
    ``(e) Effective Date for Approved Applications.--Except as 
provided by subsection (c)(2)(E), a grant provided under this 
part, and any transfer of the operation of a Bureau school made 
under subsection (b), shall become effective beginning the 
academic year succeeding the fiscal year in which the 
application for the grant or transfer is made, or at an earlier 
date determined by the Secretary.
    ``(f) Denial of Applications.--
            ``(1) In general.--Whenever the Secretary refuses 
        to approve a grant under this chapter, to transfer 
        operation of a Bureau school under subsection (b), or 
        determines that a school is not eligible for assistance 
        under this part, the Secretary shall--
                    ``(A) state the objections in writing to 
                the tribe or tribal organization within the 
                allotted time;
                    ``(B) provide assistance to the tribe or 
                tribal organization to overcome all stated 
                objections;
                    ``(C) at the request of the tribe or tribal 
                organization, provide the tribe or tribal 
                organization a hearing on the record under the 
                same rules and regulations that apply under the 
                Indian Self-Determination and Education 
                Assistance Act; and
                    ``(D) provide an opportunity to appeal the 
                objection raised.
            ``(2) Timeline for reconsideration of amended 
        applications.--The Secretary shall reconsider any 
        amended application submitted under this part within 60 
        days after the amended application is submitted to the 
        Secretary.
    ``(g) Report.--The Bureau shall submit an annual report to 
the Congress on all applications received, and actions taken 
(including the costs associated with such actions), under this 
section at the same time that the President is required to 
submit to Congress the budget under section 1105 of title 31, 
United States Code.

``SEC. 5206. DURATION OF ELIGIBILITY DETERMINATION.

    ``(a) In General.--If the Secretary determines that a 
tribally controlled school is eligible for assistance under 
this part, the eligibility determination shall remain in effect 
until the determination is revoked by the Secretary, and the 
requirements of subsection (b) or (c) of section 5205, if 
applicable, shall be considered to have been met with respect 
to such school until the eligibility determination is revoked 
by the Secretary.
    ``(b) Annual Reports.--
            ``(1) In general.--Each recipient of a grant 
        provided under this part shall complete an annual 
        report which shall be limited to--
                    ``(A) an annual financial statement 
                reporting revenue and expenditures as defined 
                by the cost accounting established by the 
                grantee;
                    ``(B) an annual financial audit conducted 
                pursuant to the standards of the Single Audit 
                Act of 1984;
                    ``(C) a biennial compliance audit of the 
                procurement of personal property during the 
                period for which the report is being prepared 
                that shall be in compliance with written 
                procurement standards that are developed by the 
                local school board;
                    ``(D) an annual submission to the Secretary 
                of the number of students served and a brief 
                description of programs offered under the 
                grant; and
                    ``(E) a program evaluation conducted by an 
                impartial evaluation review team, to be based 
                on the standards established for purposes of 
                subsection (c)(1)(A)(ii).
            ``(2) Evaluation review teams.--Where appropriate, 
        other tribally controlled schools and representatives 
        of tribally controlled community colleges shall make up 
        members of the evaluation review teams.
            ``(3) Evaluations.--In the case of a school which 
        is accredited, evaluations will be conducted at 
        intervals under the terms of accreditation.
            ``(4) Submission of report.--
                    ``(A) To tribal governing body.--Upon 
                completion of the report required under 
                paragraph (1), the recipient of the grant shall 
                send (via first class mail, return receipt 
                requested) a copy of such annual report to the 
                tribal governing body (as defined in section 
                1132(f) of the Education Amendments of 1978) of 
                the tribally controlled school.
                    ``(B) To secretary.--Not later than 30 days 
                after receiving written confirmation that the 
                tribal governing body has received the report 
                sent pursuant to subparagraph (A), the 
                recipient of the grant shall send a copy of the 
                report to the Secretary.
    ``(c) Revocation of Eligibility.--
            ``(1) Determination of eligibility for 
        assistance.--The Secretary shall not revoke a 
        determination that a school is eligible for assistance 
        under this part if--
                    ``(A) the Indian tribe or tribal 
                organization submits the reports required under 
                subsection (b) with respect to the school; and
                    ``(B) at least 1 of the following clauses 
                applies with respect to the school:
                            ``(i) The school is certified or 
                        accredited by a State or regional 
                        accrediting association or is a 
                        candidate in good standing for such 
                        accreditation under the rules of the 
                        State or regional accrediting 
                        association, showing that credits 
                        achieved by the students within the 
                        education programs are, or will be, 
                        accepted at grade level by a State 
                        certified or regionally accredited 
                        institution.
                            ``(ii) The Secretary determines 
                        that there is a reasonable expectation 
                        that the certification or accreditation 
                        described in clause (i), or candidacy 
                        in good standing for such certification 
                        or accreditation, will be achieved by 
                        the school within 3 years. The school 
                        seeking accreditation shall remain 
                        under the standards of the Bureau in 
                        effect on the date of enactment of the 
                        Native American Education Improvement 
                        Act of 2001 until such time as the 
                        school is accredited, except that if 
                        the Bureau standards are in conflict 
                        with the standards of the accrediting 
                        agency, the standards of such agency 
                        shall apply in such case.
                            ``(iii) The school is accredited by 
                        a tribal department of education if 
                        such accreditation is accepted by a 
                        generally recognized regional or State 
                        accreditation agency.
                            ``(iv)(I) With respect to a school 
                        that lacks accreditation, or that is 
                        not a candidate for accreditation, 
                        based on circumstances that are not 
                        beyond the control of the school board, 
                        every 3 years an impartial evaluator 
                        agreed upon by the Secretary and the 
                        grant recipient conducts evaluations of 
                        the school, and the school receives a 
                        positive assessment under such 
                        evaluations. The evaluations are 
                        conducted under standards adopted by a 
                        contractor under a contract for the 
                        school entered into under the Indian 
                        Self-Determination and Education 
                        Assistance Act (or revisions of such 
                        standards agreed to by the Secretary 
                        and the grant recipient) prior to the 
                        date of enactment of the Native 
                        American Education Improvement Act of 
                        2001.
                            ``(II) If the Secretary and a grant 
                        recipient other than a tribal governing 
                        body fail to agree on such an 
                        evaluator, the tribal governing body 
                        shall choose the evaluator or perform 
                        the evaluation. If the Secretary and a 
                        grant recipient that is a tribal 
                        governing body fail to agree on such an 
                        evaluator, subclause (I) shall not 
                        apply.
                            ``(III) A positive assessment by an 
                        impartial evaluator under this clause 
                        shall not affect the revocation of a 
                        determination of eligibility by the 
                        Secretary where such revocation is 
                        based on circumstances that were within 
                        the control of the school board.
            ``(2) Notice requirements for revocation.--The 
        Secretary shall not revoke a determination that a 
        school is eligible for assistance under this part, or 
        reassume control of a school that was a Bureau school 
        prior to approval of an application submitted under 
        section 5206(b)(1)(A) until the Secretary--
                    ``(A) provides notice to the tribally 
                controlled school and the tribal governing body 
                (within the meaning of section 1141 of the 
                Education Amendments of 1978) of the tribally 
                controlled school which states--
                            ``(i) the specific deficiencies 
                        that led to the revocation or 
                        resumption determination; and
                            ``(ii) the actions that are needed 
                        to remedy such deficiencies; and
                    ``(B) affords such authority an opportunity 
                to effect the remedial actions.
            ``(3) Technical assistance.--The Secretary shall 
        provide such technical assistance to enable the school 
        and governing body to carry out such remedial actions.
            ``(4) Hearing and appeal.--In addition to notice 
        and technical assistance under this subsection, the 
        Secretary shall provide to the school and governing 
        body--
                    ``(A) at the request of the school or 
                governing body, a hearing on the record 
                regarding the revocation or reassumption 
                determination, to be conducted under the rules 
                and regulations described in section 
                5206(f)(1)(C); and
                    ``(B) an opportunity to appeal the decision 
                resulting from the hearing.
    ``(d) Applicability of Section Pursuant to Election Under 
Section 5208(b).--With respect to a tribally controlled school 
that receives assistance under this part pursuant to an 
election made under section 5208(b)--
            ``(1) subsection (b) of this section shall apply; 
        and
            ``(2) the Secretary may not revoke eligibility for 
        assistance under this part except in conformance with 
        subsection (c) of this section.

``SEC. 5207. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.

    ``(a) Payments.--
            ``(1) In general.--Except as otherwise provided in 
        this subsection, the Secretary shall make payments to 
        grantees under this part in 2 payments, of which--
                    ``(A) the first payment shall be made not 
                later than July 1 of each year in an amount 
                equal to 80 percent of the amount which the 
                grantee was entitled to receive during the 
                preceding academic year; and
                    ``(B) the second payment, consisting of the 
                remainder to which the grantee is entitled for 
                the academic year, shall be made not later than 
                December 1 of each year.
            ``(2) Excess funding.--In a case in which the 
        amount provided to a grant recipient under paragraph 
        (1)(A) is in excess of the amount that the recipient is 
        entitled to receive for the academic year involved, the 
        recipient shall return to the Secretary such excess 
        amount not later than 30 days after the final 
        determination that the school was overpaid pursuant to 
        this section. The amount returned to the Secretary 
        under this paragraph shall be distributed equally to 
        all schools in the system.
            ``(3) Newly funded schools.--For any school for 
        which no payment under this part was made from Bureau 
        funds in the preceding academic year, full payment of 
        the amount computed for the first academic year of 
        eligibility under this part shall be made not later 
        than December 1 of the academic year.
            ``(4) Late funding.--With regard to funds for 
        grantees that become available for obligation on 
        October 1 of the fiscal year for which such funds are 
        appropriated, the Secretary shall make payments to 
        grantees not later than December 1 of the fiscal year.
            ``(5) Applicability of certain title 31 
        provisions.--The provisions of chapter 39 of title 31, 
        United States Code, shall apply to the payments 
        required to be made by paragraphs (1), (3), and (4).
            ``(6) Restrictions.--Paragraphs (1), (3), and (4) 
        shall be subject to any restriction on amounts of 
        payments under this part that are imposed by a 
        continuing resolution or other Act appropriating the 
        funds involved.
    ``(b) Investment of Funds.--
            ``(1) Treatment of interest and investment 
        income.--Notwithstanding any other provision of law, 
        any interest or investment income that accrues to any 
        funds provided under this part after such funds are 
        paid to the Indian tribe or tribal organization and 
        before such funds are expended for the purpose for 
        which such funds were provided under this part shall be 
        the property of the Indian tribe or tribal organization 
        and shall not be taken into account by any officer or 
        employee of the Federal Government in determining 
        whether to provide assistance, or the amount of 
        assistance, under any provision of Federal law. Such 
        interest income shall be spent on behalf of the school.
            ``(2) Permissible investments.--Funds provided 
        under this part may be invested by the Indian tribe or 
        tribal organization before such funds are expended for 
        the purposes of this part so long as such funds are--
                    ``(A) invested by the Indian tribe or 
                tribal organization only in obligations of the 
                United States, or in obligations or securities 
                that are guaranteed or insured by the United 
                States, or mutual (or other) funds registered 
                with the Securities and Exchange Commission and 
                which only invest in obligations of the United 
                States, or securities that are guaranteed or 
                insured by the United States; or
                    ``(B) deposited only into accounts that are 
                insure by and agency or instrumentality of the 
                United States, or are fully collateralized to 
                ensure protection of the funds, even in the 
                event of a bank failure.
    ``(c) Recoveries.--For the purposes of underrecovery and 
overrecovery determinations by any Federal agency for any other 
funds, from whatever source derived, funds received under this 
part shall not be taken into consideration.

``SEC. 5208. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINATION AND 
                    EDUCATION ASSISTANCE ACT.

    ``(a) Certain Provisions To Apply to Grants.--The following 
provisions of the Indian Self-Determination and Education 
Assistance Act (and any subsequent revisions thereto or 
renumbering thereof), shall apply to grants provided under this 
part:
            ``(1) Section 5(f) (relating to single agency 
        audit).
            ``(2) Section 6 (relating to criminal activities; 
        penalties).
            ``(3) Section 7 (relating to wage and labor 
        standards).
            ``(4) Section 104 (relating to retention of Federal 
        employee coverage).
            ``(5) Section 105(f) (relating to Federal 
        property).
            ``(6) Section 105(k) (relating to access to Federal 
        sources of supply).
            ``(7) Section 105(l) (relating to lease of facility 
        used for administration and delivery of services).
            ``(8) Section 106(f) (relating to limitation on 
        remedies relating to cost allowances).
            ``(9) Section 106(j) (relating to use of funds for 
        matching or cost participation requirements).
            ``(10) Section 106(k) (relating to allowable uses 
        of funds).
            ``(11) Section 108(c) (Model Agreements provisions 
        (1)(a)(5) (relating to limitations of costs), (1)(a)(7) 
        (relating to records and monitoring), (1)(a)(8) 
        (relating to property), and (a)(1)(9) (relating to 
        availability of funds).
            ``(12) Section 109 (relating to reassumption).
            ``(13) Section 111 (relating to sovereign immunity 
        and trusteeship rights unaffected).
    ``(b) Election for Grant in Lieu of Contract.--
            ``(1) In general.--Contractors for activities to 
        which this part applies who have entered into a 
        contract under the Indian Self-Determination and 
        Education Assistance Act that is in effect on the date 
        of enactment of the Native American Education 
        Improvement Act of 2001 may, by giving notice to the 
        Secretary, elect to have the provisions of this part 
        apply to such activity in lieu of such contract.
            ``(2) Effective date of election.--Any election 
        made under paragraph (1) shall take effect on the first 
        day of July immediately following the date of such 
        election.
            ``(3) Exception.--In any case in which the first 
        day of July immediately following the date of an 
        election under paragraph (1) is less than 60 days after 
        such election, such election shall not take effect 
        until the first day of July of year following the year 
        in which the election is made.
    ``(c) No Duplication.--No funds may be provided under any 
contract entered into under the Indian Self-Determination and 
Education Assistance Act to pay any expenses incurred in 
providing any program or services if a grant has been made 
under this part to pay such expenses.
    ``(d) Transfers and Carryovers.--
            ``(1) Buildings, equipment, supplies, materials.--A 
        tribe or tribal organization assuming the operation 
        of--
                    ``(A) a Bureau school with assistance under 
                this part shall be entitled to the transfer or 
                use of buildings, equipment, supplies, and 
                materials to the same extent as if it were 
                contracting under the Indian Self-Determination 
                and Education Assistance Act; or
                    ``(B) a contract school with assistance 
                under this part shall be entitled to the 
                transfer or use of buildings, equipment, 
                supplies and materials that were used in the 
                operation of the contract school to the same 
                extent as if it were contracting under the 
                Indian Self-Determination and Education 
                Assistance Act.
            ``(2) Funds.--Any tribe or tribal organization 
        which assumes operation of a Bureau school with 
        assistance under this part and any tribe or tribal 
        organization which elects to operate a school with 
        assistance under this part rather that to continue as a 
        contract school shall be entitled to any funds which 
        would carryover from the previous fiscal year as if 
        such school were operated as a contract school.
            ``(3) Funding for school improvement.--Any tribe or 
        tribal organization that assumes operation of a Bureau 
        school or a contract school with assistance under this 
        part shall be eligible for funding for the improvement, 
        alteration, replacement, and repair of facilities to 
        the same extent as a Bureau school.
    ``(e) Exceptions, Problems, and Disputes.--Any exception or 
problem cited in an audit conducted pursuant to section 
5206(b)(1), any dispute regarding a grant authorized to be made 
pursuant to this part or any amendment to such grant, and any 
dispute involving an administrative cost grant under section 
1128 of the Education Amendments of 1978 shall be administered 
under the provisions governing such exceptions, problems, or 
disputes in the case of contracts under the Indian Self-
Determination and Education Assistance Act. The Equal Access to 
Justice Act shall apply to administrative appeals filed after 
September 8, 1988, by grantees regarding a grant under this 
part, including an administrative cost grant.

``SEC. 5209. ROLE OF THE DIRECTOR.

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

``SEC. 5210. REGULATIONS.

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

``SEC. 5211. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT PROGRAM.

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

``SEC. 5212. DEFINITIONS.

    ``In this part:
            ``(1) Bureau.--The term `Bureau' means the Bureau 
        of Indian Affairs of the Department of the Interior.
            ``(2) Eligible indian student.--The term `eligible 
        Indian student' has the meaning given such term in 
        section 1127(f) of the Education Amendments of 1978.
            ``(3) Indian.--The term `Indian' means a member of 
        an Indian tribe, and includes individuals who are 
        eligible for membership in a tribe, and the child or 
        grandchild of such an individual.
            ``(4) Indian tribe.--The term `Indian tribe' means 
        any Indian tribe, band, nation, or other organized 
        group or community, including an Alaska Native Village 
        Corporation or Regional Corporation (as defined in or 
        established pursuant to the Alaska Native Claims 
        Settlement Act), which is recognized as eligible for 
        the special programs and services provided by the 
        United States to Indians because of their status as 
        Indians.
            ``(5) Local educational agency.--The term `local 
        educational agency' means a public board of education 
        or other public authority legally constituted within a 
        State for either administrative control or direction 
        of, or to perform a service function for, public 
        elementary schools or secondary schools in a city, 
        county, township, school district, or other political 
        subdivision of a State or such combination of school 
        districts or counties as are recognized in a State as 
        an administrative agency for the State's public 
        elementary schools or secondary schools. Such term 
        includes any other public institution or agency having 
        administrative control and direction of a public 
        elementary school or secondary school.
            ``(6) Secretary.--The term `Secretary' means the 
        Secretary of the Interior.
            ``(7) Tribal governing body.--The term `tribal 
        governing body' means, with respect to any school that 
        receives assistance under this Act, the recognized 
        governing body of the Indian tribe involved.
            ``(8) Tribal organization.--
                    ``(A) In general.--The term `tribal 
                organization' means--
                            ``(i) the recognized governing body 
                        of any Indian tribe; or
                            ``(ii) any legally established 
                        organization of Indians that--
                                    ``(I) is controlled, 
                                sanctioned, or chartered by 
                                such governing body or is 
                                democratically elected by the 
                                adult members of the Indian 
                                community to be served by such 
                                organization; and
                                    ``(II) includes the maximum 
                                participation of Indians in all 
                                phases of the organization's 
                                activities.
                    ``(B) Authorization.--In any case in which 
                a grant is provided under this part to an 
                organization to provide services through a 
                tribally controlled school benefiting more than 
                1 Indian tribe, the approval of the governing 
                bodies of Indian tribes representing 80 percent 
                of the students attending the tribally 
                controlled school shall be considered a 
                sufficient tribal authorization for such grant.
            ``(9) Tribally controlled school.--The term 
        `tribally controlled school' means a school that--
                    ``(A) is operated by an Indian tribe or a 
                tribal organization, enrolling students in 
                kindergarten through grade 12, including a 
                preschool;
                    ``(B) is not a local educational agency; 
                and
                    ``(C) is not directly administered by the 
                Bureau of Indian Affairs.''.

SEC. 1044. LEASE PAYMENTS BY THE OJIBWA INDIAN SCHOOL.

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

SEC. 1045. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.

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

                  PART E--HIGHER EDUCATION ACT OF 1965

SEC. 1051. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

    Title II of the Higher Education Act of 1965 (20 U.S.C. 
1021 et seq.) is amended--
            (1) by striking the title heading and inserting the 
        following:

                ``TITLE II--TEACHER QUALITY ENHANCEMENT

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                            PARTNERSHIPS'';

            (2) by striking ``this title'' each place it 
        appears and inserting ``this part''; and
            (3) by adding at the end the following:

       ``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY

``SEC. 221. PURPOSE AND PROGRAM AUTHORITY.

    ``(a) Purpose.--It is the purpose of this part to assist 
consortia of public and private entities--
            ``(1) to carry out programs that prepare 
        prospective teachers to use advanced technology to 
        prepare all students to meet challenging State and 
        local academic content and student academic achievement 
        standards; and
            ``(2) to improve the ability of institutions of 
        higher education to carry out such programs.
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to eligible applicants, or enter into 
        contracts or cooperative agreements with eligible 
        applicants, on a competitive basis in order to pay for 
        the Federal share of the cost of projects to develop or 
        redesign teacher preparation programs to enable 
        prospective teachers to use advanced technology 
        effectively in their classrooms.
            ``(2) Period of awards.--The Secretary may award 
        grants, or enter into contracts or cooperative 
        agreements, under this part for periods that are not 
        more than 5 years in duration.

``SEC. 222. ELIGIBILITY.

    ``(a) Eligible Applicants.--In order to receive a grant or 
enter into a contract or cooperative agreement under this part, 
an applicant shall be a consortium that includes the following:
            ``(1) At least one institution of higher education 
        that awards baccalaureate degrees and prepares teachers 
        for their initial entry into teaching.
            ``(2) At least one State educational agency or 
        local educational agency.
            ``(3) One or more of the following entities:
                    ``(A) An institution of higher education 
                (other than the institution described in 
                paragraph (1)).
                    ``(B) A school or department of education 
                at an institution of higher education.
                    ``(C) A school or college of arts and 
                sciences (as defined in section 201(b)) at an 
                institution of higher education.
                    ``(D) A professional association, 
                foundation, museum, library, for-profit 
                business, public or private nonprofit 
                organization, community-based organization, or 
                other entity, with the capacity to contribute 
                to the technology-related reform of teacher 
                preparation programs.
    ``(b) Application Requirements.--In order to receive a 
grant or enter into a contract or cooperative agreement under 
this part, an eligible applicant shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require. Such application 
shall include the following:
            ``(1) A description of the proposed project, 
        including how the project would--
                    ``(A) ensure that individuals participating 
                in the project would be prepared to use 
                advanced technology to prepare all students, 
                including groups of students who are 
                underrepresented in technology-related fields 
                and groups of students who are economically 
                disadvantaged, to meet challenging State and 
                local academic content and student academic 
                achievement standards; and
                    ``(B) improve the ability of at least one 
                participating institution of higher education 
                described in section 222(a)(1) to ensure such 
                preparation.
            ``(2) A demonstration of--
                    ``(A) the commitment, including the 
                financial commitment, of each of the members of 
                the consortium for the proposed project; and
                    ``(B) the active support of the leadership 
                of each organization that is a member of the 
                consortium for the proposed project;
            ``(3) A description of how each member of the 
        consortium will participate in project activities.
            ``(4) A description of how the proposed project 
        will be continued after Federal funds are no longer 
        awarded under this part for the project.
            ``(5) A plan for the evaluation of the project, 
        which shall include benchmarks to monitor progress 
        toward specific project objectives.
    ``(c) Matching Requirements.--
            ``(1) In general.--The Federal share of the cost of 
        any project funded under this part shall not exceed 50 
        percent. Except as provided in paragraph (2), the non-
        Federal share of the cost of such project may be 
        provided in cash or in kind, fairly evaluated, 
        including services.
            ``(2) Acquisition of equipment.--Not more than 10 
        percent of the funds awarded for a project under this 
        part may be used to acquire equipment, networking 
        capabilities, or infrastructure, and the non-Federal 
        share of the cost of any such acquisition shall be 
        provided in cash.

``SEC. 223. USE OF FUNDS.

    ``(a) Required Uses.--A consortium that receives a grant or 
enters into a contract or cooperative agreement under this part 
shall use funds made available under this part for--
            ``(1) a project creating one or more programs that 
        prepare prospective teachers to use advanced technology 
        to prepare all students, including groups of students 
        who are underrepresented in technology-related fields 
        and groups of students who are economically 
        disadvantaged, to meet challenging State and local 
        academic content and student academic achievement 
        standards; and
            ``(2) evaluating the effectiveness of the project.
    ``(b) Permissible Uses.--The consortium may use funds made 
available under this part for a project, described in the 
application submitted by the consortium under this part, that 
carries out the purpose of this part, such as the following:
            ``(1) Developing and implementing high-quality 
        teacher preparation programs that enable educators--
                    ``(A) to learn the full range of resources 
                that can be accessed through the use of 
                technology;
                    ``(B) to integrate a variety of 
                technologies into curricula and instruction in 
                order to expand students' knowledge;
                    ``(C) to evaluate educational technologies 
                and their potential for use in instruction;
                    ``(D) to help students develop their 
                technical skills; and
                    ``(E) to use technology to collect, manage, 
                and analyze data to improve teaching and 
                decisionmaking.
            ``(2) Developing alternative teacher development 
        paths that provide elementary schools and secondary 
        schools with well-prepared, technology-proficient 
        educators.
            ``(3) Developing achievement-based standards and 
        assessments aligned with the standards to measure the 
        capacity of prospective teachers to use technology 
        effectively in their classrooms.
            ``(4) Providing technical assistance to entities 
        carrying out other teacher preparation programs.
            ``(5) Developing and disseminating resources and 
        information in order to assist institutions of higher 
        education to prepare teachers to use technology 
        effectively in their classrooms.
            ``(6) Subject to section 222(c)(2), acquiring 
        technology equipment, networking capabilities, 
        infrastructure, software, and digital curricula to 
        carry out the project.

``SEC. 224. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
part such sums as may be necessary for each of fiscal years 
2002 and 2003.''.

SEC. 1052. CONTINUATION OF AWARDS.

    Notwithstanding any other provision of this Act or the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.), in the case of a person or entity that was awarded a 
grant, relating to preparing tomorrow's teachers to use 
technology, that was made pursuant to section 3122 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6832) 
prior to the date of enactment of this Act, the Secretary of 
Education shall continue to provide funds in accordance with 
the terms of such award until the date on which the award 
period terminates.

                PART F--GENERAL EDUCATION PROVISIONS ACT

SEC. 1061. STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, AND 
                    ADMINISTRATION OF CERTAIN PHYSICAL EXAMINATIONS TO 
                    MINORS.

    Section 445(b) of the General Education Provisions Act (20 
U.S.C. 1232h(b)) is amended--
            (1) by striking paragraphs (1) through (7) and 
        inserting the following new paragraphs:
            ``(1) political affiliations or beliefs of the 
        student or the student's parent;
            ``(2) mental or psychological problems of the 
        student or the student's family;
            ``(3) sex behavior or attitudes;
            ``(4) illegal, anti-social, self-incriminating, or 
        demeaning behavior;
            ``(5) critical appraisals of other individuals with 
        whom respondents have close family relationships;
            ``(6) legally recognized privileged or analogous 
        relationships, such as those of lawyers, physicians, 
        and ministers;
            ``(7) religious practices, affiliations, or beliefs 
        of the student or student's parent; or
            ``(8) income (other than that required by law to 
        determine eligibility for participation in a program or 
        for receiving financial assistance under such 
        program),'';
            (2) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively; and
            (3) by inserting after subsection (b) the following 
        new subsection:
    ``(c) Development of Local Policies Concerning Student 
Privacy, Parental Access to Information, and Administration of 
Certain Physical Examinations to Minors.--
            ``(1) Development and adoption of local policies.--
        Except as provided in subsections (a) and (b), a local 
        educational agency that receives funds under any 
        applicable program shall develop and adopt policies, in 
        consultation with parents, regarding the following:
                    ``(A)(i) The right of a parent of a student 
                to inspect, upon the request of the parent, a 
                survey created by a third party before the 
                survey is administered or distributed by a 
                school to a student; and
                    ``(ii) any applicable procedures for 
                granting a request by a parent for reasonable 
                access to such survey within a reasonable 
                period of time after the request is received.
                    ``(B) Arrangements to protect student 
                privacy that are provided by the agency in the 
                event of the administration or distribution of 
                a survey to a student containing one or more of 
                the following items (including the right of a 
                parent of a student to inspect, upon the 
                request of the parent, any survey containing 
                one or more of such items):
                            ``(i) Political affiliations or 
                        beliefs of the student or the student's 
                        parent.
                            ``(ii) Mental or psychological 
                        problems of the student or the 
                        student's family.
                            ``(iii) Sex behavior or attitudes.
                            ``(iv) Illegal, anti-social, self-
                        incriminating, or demeaning behavior.
                            ``(v) Critical appraisals of other 
                        individuals with whom respondents have 
                        close family relationships.
                            ``(vi) Legally recognized 
                        privileged or analogous relationships, 
                        such as those of lawyers, physicians, 
                        and ministers.
                            ``(vii) Religious practices, 
                        affiliations, or beliefs of the student 
                        or the student's parent.
                            ``(viii) Income (other than that 
                        required by law to determine 
                        eligibility for participation in a 
                        program or for receiving financial 
                        assistance under such program).
                    ``(C)(i) The right of a parent of a student 
                to inspect, upon the request of the parent, any 
                instructional material used as part of the 
                educational curriculum for the student; and
                    ``(ii) any applicable procedures for 
                granting a request by a parent for reasonable 
                access to instructional material within a 
                reasonable period of time after the request is 
                received.
                    ``(D) The administration of physical 
                examinations or screenings that the school or 
                agency may administer to a student.
                    ``(E) The collection, disclosure, or use of 
                personal information collected from students 
                for the purpose of marketing or for selling 
                that information (or otherwise providing that 
                information to others for that purpose), 
                including arrangements to protect student 
                privacy that are provided by the agency in the 
                event of such collection, disclosure, or use.
                    ``(F)(i) The right of a parent of a student 
                to inspect, upon the request of the parent, any 
                instrument used in the collection of personal 
                information under subparagraph (E) before the 
                instrument is administered or distributed to a 
                student; and
                    ``(ii) any applicable procedures for 
                granting a request by a parent for reasonable 
                access to such instrument within a reasonable 
                period of time after the request is received.
            ``(2) Parental notification.--
                    ``(A) Notification of policies.--The 
                policies developed by a local educational 
                agency under paragraph (1) shall provide for 
                reasonable notice of the adoption or continued 
                use of such policies directly to the parents of 
                students enrolled in schools served by that 
                agency. At a minimum, the agency shall--
                            ``(i) provide such notice at least 
                        annually, at the beginning of the 
                        school year, and within a reasonable 
                        period of time after any substantive 
                        change in such policies; and
                            ``(ii) offer an opportunity for the 
                        parent (and for purposes of an activity 
                        described in subparagraph (C)(i), in 
                        the case of a student of an appropriate 
                        age, the student) to opt the student 
                        out of participation in an activity 
                        described in subparagraph (C).
                    ``(B) Notification of specific events.--The 
                local educational agency shall directly notify 
                the parent of a student, at least annually at 
                the beginning of the school year, of the 
                specific or approximate dates during the school 
                year when activities described in subparagraph 
                (C) are scheduled, or expected to be scheduled.
                    ``(C) Activities requiring notification.--
                The following activities require notification 
                under this paragraph:
                            ``(i) Activities involving the 
                        collection, disclosure, or use of 
                        personal information collected from 
                        students for the purpose of marketing 
                        or for selling that information (or 
                        otherwise providing that information to 
                        others for that purpose).
                            ``(ii) The administration of any 
                        survey containing one or more items 
                        described in clauses (i) through (viii) 
                        of paragraph (1)(B).
                            ``(iii) Any nonemergency, invasive 
                        physical examination or screening that 
                        is--
                                    ``(I) required as a 
                                condition of attendance;
                                    ``(II) administered by the 
                                school and scheduled by the 
                                school in advance; and
                                    ``(III) not necessary to 
                                protect the immediate health 
                                and safety of the student, or 
                                of other students.
            ``(3) Existing policies.--A local educational 
        agency need not develop and adopt new policies if the 
        State educational agency or local educational agency 
        has in place, on the date of enactment of the No Child 
        Left Behind Act of 2001, policies covering the 
        requirements of paragraph (1). The agency shall provide 
        reasonable notice of such existing policies to parents 
        and guardians of students, in accordance with paragraph 
        (2).
            ``(4) Exceptions.--
                    ``(A) Educational products or services.--
                Paragraph (1)(E) does not apply to the 
                collection, disclosure, or use of personal 
                information collected from students for the 
                exclusive purpose of developing, evaluating, or 
                providing educational products or services for, 
                or to, students or educational institutions, 
                such as the following:
                            ``(i) College or other 
                        postsecondary education recruitment, or 
                        military recruitment.
                            ``(ii) Book clubs, magazines, and 
                        programs providing access to low-cost 
                        literary products.
                            ``(iii) Curriculum and 
                        instructional materials used by 
                        elementary schools and secondary 
                        schools.
                            ``(iv) Tests and assessments used 
                        by elementary schools and secondary 
                        schools to provide cognitive, 
                        evaluative, diagnostic, clinical, 
                        aptitude, or achievement information 
                        about students (or to generate other 
                        statistically useful data for the 
                        purpose of securing such tests and 
                        assessments) and the subsequent 
                        analysis and public release of the 
                        aggregate data from such tests and 
                        assessments.
                            ``(v) The sale by students of 
                        products or services to raise funds for 
                        school-related or education-related 
                        activities.
                            ``(vi) Student recognition 
                        programs.
                    ``(B) State law exception.--The provisions 
                of this subsection--
                            ``(i) shall not be construed to 
                        preempt applicable provisions of State 
                        law that require parental notification; 
                        and
                            ``(ii) do not apply to any physical 
                        examination or screening that is 
                        permitted or required by an applicable 
                        State law, including physical 
                        examinations or screenings that are 
                        permitted without parental 
                        notification.
            ``(5) General provisions.--
                    ``(A) Rules of construction.--
                            ``(i) This section does not 
                        supersede section 444.
                            ``(ii) Paragraph (1)(D) does not 
                        apply to a survey administered to a 
                        student in accordance with the 
                        Individuals with Disabilities Education 
                        Act (20 U.S.C. 1400 et seq.).
                    ``(B) Student rights.--The rights provided 
                to parents under this section transfer to the 
                student when the student turns 18 years old, or 
                is an emancipated minor (under an applicable 
                State law) at any age.
                    ``(C) Information activities.--The 
                Secretary shall annually inform each State 
                educational agency and each local educational 
                agency of the educational agency's obligations 
                under this section and section 444.
                    ``(D) Funding.--A State educational agency 
                or local educational agency may use funds 
                provided under part A of title V of the 
                Elementary and Secondary Education Act of 1965 
                to enhance parental involvement in areas 
                affecting the in-school privacy of students.
            ``(6) Definitions.--As used in this subsection:
                    ``(A) Instructional material.--The term 
                `instructional material' means instructional 
                content that is provided to a student, 
                regardless of its format, including printed or 
                representational materials, audio-visual 
                materials, and materials in electronic or 
                digital formats (such as materials accessible 
                through the Internet). The term does not 
                include academic tests or academic assessments.
                    ``(B) Invasive physical examination.--The 
                term `invasive physical examination' means any 
                medical examination that involves the exposure 
                of private body parts, or any act during such 
                examination that includes incision, insertion, 
                or injection into the body, but does not 
                include a hearing, vision, or scoliosis 
                screening.
                    ``(C) Local educational agency.--The term 
                `local educational agency' means an elementary 
                school, secondary school, school district, or 
                local board of education that is the recipient 
                of funds under an applicable program, but does 
                not include a postsecondary institution.
                    ``(D) Parent.--The term `parent' includes a 
                legal guardian or other person standing in loco 
                parentis (such as a grandparent or stepparent 
                with whom the child lives, or a person who is 
                legally responsible for the welfare of the 
                child).
                    ``(E) Personal information.--The term 
                `personal information' means individually 
                identifiable information including--
                            ``(i) a student or parent's first 
                        and last name;
                            ``(ii) a home or other physical 
                        address (including street name and the 
                        name of the city or town);
                            ``(iii) a telephone number; or
                            ``(iv) a Social Security 
                        identification number.
                    ``(F) Student.--The term `student' means 
                any elementary school or secondary school 
                student.
                    ``(G) Survey.--The term `survey' includes 
                an evaluation.''.

SEC. 1062. TECHNICAL CORRECTIONS.

    The General Education Provisions Act (20 U.S.C. 1221 et 
seq.) is amended as follows:
            (1) Section 431.--Section 422 (the second place it 
        appears) (20 U.S.C. 1231a), relating to collection and 
        dissemination of information, is redesignated as 
        section 431.
            (2) Section 441.--Section 3501(c) of the Augustus 
        F. Hawkins-Robert T. Stafford Elementary and Secondary 
        School Improvement Amendments of 1988 (102 Stat. 357) 
        is amended by striking ``through `such Act)' '' and 
        inserting ``through `Act of 1965' '', effective as of 
        the date of enactment of that law.
            (3) Section 444.--Section 444 (20 U.S.C. 1232g) is 
        amended--
                    (A) in subsection (a)(1), by moving 
                subparagraph (B) four ems to the left;
                    (B) in subsection (b)(1)(J), by moving 
                subparagraph (J)(i) and clause (ii) of 
                subparagraph (J) each two ems to the left;
                    (C) in the undesignated text following 
                subsection (b)(1)(J)(ii), by striking ``clause 
                (E)'' and inserting ``subparagraph (E)''; and
                    (D) in subsection (b), by moving paragraph 
                (7)(A) and subparagraph (B) of paragraph (7) 
                each two ems to the left.
            (4) Section 447.--Section 447(b) (20 U.S.C. 
        1232j(b)) is amended by striking ``et seq.''.
            (5) Section 475.--Section 475(b)(2) (20 U.S.C. 
        1235d) is amended by striking ``section 4703(3)'' and 
        inserting ``section 473(3)''.
            (6) Section 477.--Section 477 (20 U.S.C. 1235f) is 
        amended by striking ``section 4702'' and inserting 
        ``472''.

                  PART G--MISCELLANEOUS OTHER STATUTES

SEC. 1071. TITLE 5 OF THE UNITED STATES CODE.

    (a) Compensation.--Section 5314 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Under Secretary of Education''.
    (b) Effective Date.--This section shall take effect on the 
first day of the first pay period on or after the date of 
enactment of this Act.

SEC. 1072. DEPARTMENT OF EDUCATION ORGANIZATION ACT.

    (a) Coordinator for the Outlying Areas.--Title II of the 
Department of Education Organization Act (20 U.S.C. 3411 et 
seq.) is amended by adding at the end the following new 
section:


                  ``coordinator for the outlying areas


    ``Sec. 220. (a) Establishment.--The Secretary shall 
designate an office of the Department to coordinate the 
activities of the Department as they relate to the outlying 
areas.
    ``(b) Appointment.--Not later than 90 days after the date 
of enactment of the No Child Left Behind Act of 2001, the head 
of the office designated under subsection (a) shall appoint a 
coordinator for the outlying areas, who shall be a person with 
substantial experience in the operation of Federal programs in 
the outlying areas.
    ``(c) Duties.--The coordinator for the outlying areas 
shall--
            ``(1) serve as the principal advisor to the 
        Department on Federal matters affecting the outlying 
        areas;
            ``(2) evaluate, on a periodic basis, the needs of 
        education programs in the outlying areas;
            ``(3) assist with the coordination of programs that 
        serve the outlying areas; and
            ``(4) provide guidance to programs within the 
        Department that serve the outlying areas.
    ``(d) Outlying Areas Defined.--As used in this section, the 
term `outlying areas' includes Guam, the Virgin Islands, 
American Samoa, and the Commonwealth of the Northern Marianas 
Islands, but does not include the Freely Associated States of 
the Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau.''.
    (b) Renaming of Office.--The Department of Education 
Organization Act (20 U.S.C. 3401 et seq.) is amended by 
striking ``Office of Bilingual Education and Minority Languages 
Affairs'' and ``Office of Bilingual Education'' each place 
either such term appears and inserting ``Office of English 
Language Acquisition, Language Enhancement, and Academic 
Achievement for Limited English Proficient Students''.
    (c) Clerical Amendments.--The Department of Education 
Organization Act (20 U.S.C. 3401 et seq.) is amended as 
follows:
            (1) Table of contents.--The table of contents in 
        section 1 (20 U.S.C. 3401 note) is amended--
                    (A) by amending the item relating to 
                section 209 to read as follows:

``Sec. 209. Office of English Language Acquisition, Language 
          Enhancement, and Academic Achievement for Limited English 
          Proficient Students.'';

                    (B) by amending the item relating to 
                section 216 to read as follows:

``Sec. 216. Office of English Language Acquisition, Language 
          Enhancement, and Academic Achievement for Limited English 
          Proficient Students.''; and

                    (C) by inserting after the item relating to 
                section 217 the following new items:

``Sec. 218. Office of Educational Technology.
``Sec. 219. Liaison for Proprietary Institutions of Higher Education.
``Sec. 220. Coordinator for the Outlying Areas.''.

            (2) Section headings.--
                    (A) Section 209.--The section heading for 
                section 209 of the Department of Education 
                Organization Act (20 U.S.C. 3420) is amended to 
                read as follows:


  ``office of english language acquisition, language enhancement, and 
    academic achievement for limited english proficient students''.


                    (B) Section 216.--The section heading for 
                section 216 of the Department of Education 
                Organization Act (20 U.S.C. 3423d) is amended 
                to read as follows:

``SEC. 216. OFFICE OF ENGLISH LANGUAGE ACQUISITION, LANGUAGE 
                    ENHANCEMENT, AND ACADEMIC ACHIEVEMENT FOR LIMITED 
                    ENGLISH PROFICIENT STUDENTS.''.

    (d) Conforming Amendments.--Sections 209 and 216 of the 
Department of Education Organization Act (20 U.S.C. 3420, 
3423d) are amended by striking ``Director of Bilingual 
Education and Minority Languages Affairs'' each place such term 
appears and inserting ``Director of English Language 
Acquisition, Language Enhancement, and Academic Achievement for 
Limited English Proficient Students''.
    (e) Technical Corrections.--
            (2) Section 202.--Paragraph (3) of section 202(b) 
        (20 U.S.C. 3412(b)(3)), relating to the Assistant 
        Secretary for Educational Research and Improvement (as 
        added by section 913(2) of the Goals 2000: Educate 
        America Act (108 Stat. 223)), is redesignated as 
        paragraph (4).
            (3) Section 218.--Section 216 (the second place it 
        appears) (20 U.S.C. 3425), relating to the Office of 
        Educational Technology (as added by section 233(a) the 
        Goals 2000: Educate America Act (108 Stat. 154), is 
        redesignated as section 218.

SEC. 1073. EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999.

    Section 4(b) of the Education Flexibility Partnership Act 
of 1999 (20 U.S.C. 5891b(b)) is amended to read as follows:
    ``(b) Included Programs.--The statutory or regulatory 
requirements referred to in subsection (a)(1)(A) are any such 
requirements for programs that are authorized under the 
following provisions and under which the Secretary provides 
funds to State educational agencies on the basis of a formula:
            ``(1) The following provisions of the Elementary 
        and Secondary Education Act of 1965:
                    ``(A) Part A (other than sections 1111 and 
                1116), subpart 3 of part B, and parts C, D, and 
                F of title I.
                    ``(B) Subparts 2 and 3 of part A of title 
                II.
                    ``(C) Subpart 1 of part D of title II.
                    ``(D) Subpart 4 of part B of title III, if 
                the funding trigger in section 3001 of such Act 
                is not reached.
                    ``(E) Subpart 1 of part A of title IV.
                    ``(F) Part A of title V.
            ``(2) The Carl D. Perkins Vocational and Technical 
        Education Act of 1998 (20 U.S.C. 2301 et seq.).''.

SEC. 1074. EDUCATIONAL RESEARCH, DEVELOPMENT, DISSEMINATION, AND 
                    IMPROVEMENT ACT OF 1994.

    The Educational Research, Development, Dissemination, and 
Improvement Act of 1994 (20 U.S.C. 6001 et seq.) is amended by 
adding after part I the following new part:

            ``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS

``SEC. 995. CONTINUATION OF AWARDS.

    ``(a) In General.--Notwithstanding any other provision of 
law, from funds appropriated under subsection (b), the 
Secretary--
            ``(1) shall continue to fund any multiyear grant or 
        contract awarded under section 3141 and parts A and C 
        of title XIII of the Elementary and Secondary Education 
        Act of 1965 (as such provisions were in effect on the 
        day preceding the date of enactment of the No Child 
        Left Behind Act of 2001), for the duration of that 
        multiyear award in accordance with its terms; and
            ``(2) may extend, on a year-to-year basis, any 
        multiyear grant or contract awarded under an authority 
        described in paragraph (1) that expires after the 
        enactment of the No Child Left Behind Act of 2001, but 
        before the enactment of successor authority to this 
        Act.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated for each fiscal year such sums as 
may be necessary to carry out subsection (a).''.

SEC. 1075. NATIONAL CHILD PROTECTION ACT OF 1993.

    Section 5(9) of the National Child Protection Act of 1993 
(42 U.S.C. 5119c(9)) is amended--
            (1) in subparagraph (A)(i), by inserting 
        ``(including an individual who is employed by a school 
        in any capacity, including as a child care provider, a 
        teacher, or another member of school personnel)'' 
        before the semicolon at the end; and
            (2) in subparagraph (B)(i), by inserting 
        ``(including an individual who seeks to be employed by 
        a school in any capacity, including as a child care 
        provider, a teacher, or another member of school 
        personnel)'' before the semicolon at the end.

SEC. 1076. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Legislative Branch Appropriations Act, 1997.--Section 
5(d)(1) of the Legislative Branch Appropriations Act, 1997 (2 
U.S.C. 117b-2(d)(1)) is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (b) Legislative Branch Appropriations Act, 1987.--Section 
104(3)(B)(ii) of the Legislative Branch Appropriations Act, 
1987 (as incorporated by reference in section 101(j) of Public 
Law 99-500 and Public Law 99-591) (2 U.S.C. 117e(3)(B)(ii)) is 
amended by striking ``14101'' and inserting ``9101''.
    (c) National Agricultural Research, Extension, and Teaching 
Policy Act of 1977.--Section 1417(j)(1)(B) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(j)(1)(B)) is amended--
            (1) by striking ``14101(25)'' and inserting 
        ``9101''; and
            (2) by striking ``(20 U.S.C. 8801(25))''.
    (d) Refugee Education Assistance Act of 1980.--Section 
101(1) of the Refugee Education Assistance Act of 1980 (8 
U.S.C. 1522 note) is amended by striking ``14101'' and 
inserting ``9101''.
    (e) Title 10, United States Code.--Section 2194(e)(2) of 
title 10, United States Code, is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (f) Toxic Substances Control Act.--
            (1) Asbestos.--Paragraphs (7), (9) and (12) of 
        section 202 of the Toxic Substances Control Act (15 
        U.S.C. 2642) are amended by striking ``14101'' and 
        inserting ``9101''.
            (2) Radon.--Section 302(1)(A) of the Toxic 
        Substances Control Act (15 U.S.C. 2662(1)(A)) is 
        amended by striking ``14101'' and inserting ``9101''.
    (g) Higher Education Act of 1965.--Paragraphs (4), (5), 
(6), (10), and (14) of section 103 of the Higher Education Act 
of 1965 (20 U.S.C. 1003) are amended by striking ``14101'' and 
inserting ``9101''.
    (h) General Education Provisions Act.--Section 425(6) of 
the General Education Provisions Act (20 U.S.C. 1226c(6)) is 
amended by striking ``14701'' and inserting ``9601''.
    (i) Individuals With Disabilities Education Act.--Section 
613(f) of the Individuals with Disabilities Education Act (20 
U.S.C. 1413(f)) is amended by striking paragraph (3).
    (j) Education Amendments of 1972.--Section 908(2)(B) of the 
Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is amended 
by striking ``14101'' and inserting ``9101''.
    (k) Carl D. Perkins Vocational and Technical Education Act 
of 1998.--Section 3 of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2302) is amended--
            (1) in paragraph (5)--
                    (A) by striking ``10306'' and inserting 
                ``5206''; and
                    (B) by striking ``(20 U.S.C. 8066)'';
            (2) in paragraph (8) by striking ``14101'' and 
        inserting ``9101''; and
            (3) in paragraphs (16) and (21)--
                    (A) by striking ``14101'' and inserting 
                ``9101''; and
                    (B) by striking ``(20 U.S.C. 8801)''.
    (l) Education for Economic Security Act.--
            (1) Economic security.--Section 3(3) of the 
        Education for Economic Security Act (20 U.S.C. 3902) is 
        amended--
                    (A) in paragraph (3)--
                            (i) by striking ``198(a)(7)'' and 
                        inserting ``9101''; and
                    (B) in paragraph (7)--
                            (i) by striking ``198(a)(10)'' and 
                        inserting ``9101''; and
                    (C) in paragraph (12)--
                            (i) by striking ``198(a)(17)'' and 
                        inserting ``9101''.
            (2) Asbestos.--Section 511 of the Education for 
        Economic Security Act (20 U.S.C. 4020) is amended--
                    (A) in paragraph (4)(A), by striking 
                ``198(a)(10)'' and inserting ``9101''; and
                    (B) in paragraph (5)(A), by striking 
                ``198(a)(7)'' and inserting ``9101''.
    (m) James Madison Memorial Fellowship Act.--Section 815(4) 
of the James Madison Memorial Fellowship Act (20 U.S.C. 
4514(4)) is amended by striking ``14101'' and inserting 
``9101''.
    (n) National Environmental Education Act.--Section 3(5) of 
the National Environmental Education Act (20 U.S.C. 5502(5)) is 
amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 3381)''.
    (o) Education Flexibility Partnership Act of 1999.--Section 
3(1) of the Education Flexibility Partnership Act of 1999 (20 
U.S.C. 5891a(1)) is amended by striking ``14101'' and inserting 
``9101''.
    (p) District of Columbia College Access Act of 1999.--
Section 3(c)(5) of the District of Columbia College Access Act 
of 1999 (Public Law 106-98; 113 Stat. 1323) is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (q) School-to-Work Opportunities Act of 1994.--Paragraph 
(5) of section 502(b) of the School-to-Work Opportunities Act 
of 1994 (20 U.S.C. 6212(b)(5)) is amended to read as follows:
            ``(5) parts K through N of the Educational 
        Research, Development, Dissemination, and Improvement 
        Act of 1994; and''.
    (r) National Education Statistics Act of 1994.--Paragraphs 
(4) and (6) of section 402(c) of the National Education 
Statistics Act of 1994 (20 U.S.C. 9001(c)) are amended by 
striking ``14101'' and inserting ``9101''.
    (s) Adult Education and Family Literacy Act.--Section 
203(13) of the Adult Education and Family Literacy Act (20 
U.S.C. 9202(13)) is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (t) Internal Revenue Code of 1986.--Section 1397E(d)(4)(B) 
of the Internal Revenue Code of 1986 is amended by striking 
``14101'' and inserting ``9101''.
    (u) Rehabilitation Act of 1973.--
            (1) Research.--Section 202(b)(4)(A)(i) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 762(b)(4)(A)(i)) 
        is amended by striking ``14101'' and inserting 
        ``9101''.
            (2) Nondiscrimination.--Section 504(b)(2)(B) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794(b)(2)(B)) is 
        amended by striking ``14101'' and inserting ``9101''.
    (v) Family and Medical Leave Act of 1993.--Section 
108(a)(1)(A) of the Family and Medical Leave Act of 1993 (29 
U.S.C. 2618(a)(1)(A)) is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 2891(12))''.
    (w) Workforce Investment Act of 1998.--Paragraphs (23) and 
(40) of section 101 of the Workforce Investment Act of 1998 (29 
U.S.C. 2801) are amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (x) Safe Drinking Water Act.--Paragraphs (3)(A) and (6) of 
section 1461 of the Safe Drinking Water Act (42 U.S.C. 300j-21) 
are amended by striking ``14101'' and inserting ``9101''.
    (y) Civil Rights Act of 1964.--Section 606(2)(B) of the 
Civil Rights Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is amended 
by striking ``14101'' and inserting ``9101''.
    (z) Age Discrimination Act of 1975.--Section 309(4)(B)(ii) 
of the Age Discrimination Act of 1975 (42 U.S.C. 
6107(4)(B)(ii)) is amended by striking ``14101'' and inserting 
``9101''.
    (aa) Hazardous and Solid Waste Amendments of 1989.--Section 
221(f)(3)(B)(i) of The Hazardous and Solid Waste Amendments of 
1984 (42 U.S.C. 6921 note) is amended by striking ``198(a)(7)'' 
and inserting ``9101''.
    (bb) Albert Einstein Distinguished Educator Fellowship Act 
of 1994.--Paragraphs (1), (2), and (3) of section 514 of the 
Albert Einstein Distinguished Educator Fellowship Act of 1994 
(42 U.S.C. 7382b) are amended by striking ``14101'' and 
inserting ``9101''.
    (cc) Earthquake Hazards.--Section 2(c)(1)(A) of the Act 
entitled ``An Act to authorize appropriations for carrying out 
the Earthquake Hazards Reduction Act of 1977 for fiscal years 
1998 and 1999, and for other purposes'', approved October 1, 
1997 (42 U.S.C. 7704 note) is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (dd) State Dependent Care Development Grants Act.--
Paragraphs (6) and (11) of section 670G of the State Dependent 
Care Development Grants Act (42 U.S.C. 9877) are amended by 
striking ``14101'' and inserting ``9101''.
    (ee) Community Services Block Grant Act.--Section 682(b)(4) 
of the Community Services Block Grant Act (42 U.S.C. 
9923(b)(4)) is amended--
            (1) by striking ``14101'' and inserting ``9101''; 
        and
            (2) by striking ``(20 U.S.C. 8801)''.
    (ff) National and Community Service Act of 1990.--
Paragraphs (8), (14), (22), and (28) of section 101 of the 
National and Community Service Act of 1990 (42 U.S.C. 12511) 
are amended by striking ``14101'' and inserting ``9101''.
    (gg) Telecommunications Act of 1996.--Section 706(c)(2) of 
the Telecommunications Act of 1996 (47 U.S.C. 157 note) is 
amended--
            (1) by striking ``paragraphs (14) and (25), 
        respectively, of section 14101'' and inserting 
        ``section 9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.
    (hh) Communications Act of 1934.--Section 254(h)(7)(A) of 
the Communications Act of 1934 (47 U.S.C. 254(h)(7)(A)) is 
amended--
            (1) by striking ``paragraphs (14) and (25), 
        respectively, of section 14101'' and inserting 
        ``section 9101''; and
            (2) by striking ``(20 U.S.C. 8801)''.
    (ii) Transportation Equity Act for the 21st Century.--
Section 4024 of the Transportation Equity Act for the 21st 
Century (49 U.S.C. 31136 note) is amended by striking ``14101'' 
and inserting ``9101''.
      And the Senate agree to the same.

                                   John Boehner,
                                   Thomas E. Petri,
                                   Marge Roukema,
                                   Howard ``Buck'' McKeon,
                                   Mike Castle,
                                   Lindsey Graham,
                                   Van Hilleary,
                                   Johnny, Isakson,
                                   George Miller,
                                   Dale E. Kildee,
                                   Majors R. Owens,
                                   Patsy T. Mink,
                                   Robert E. Andrews,
                                   Tim Roemer,
                                 Managers on the Part of the House.

                                   Edward Kennedy,
                                   Christopher Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Jeff Bingaman,
                                   Patty Murray,
                                   John Edwards,
                                   Hillary Rodham Clinton,
                                   Joseph Lieberman,
                                   Evan Bayh,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike Enzi,
                                   Tim Hutchinson,
                                   John Warner,
                                   Kit Bond,
                                   Pat Roberts,
                                   Susan Collins,
                                   Jeff Sessions,
                                   Mike DeWine,
                                   Wayne Allard,
                                   John Ensign,
                                Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill, (H.R. 1), to close the 
achievement gap with accountability, flexibility, and choice, 
so that no child is left behind, submit the following joint 
statement to the House and the Senate in explanation of the 
effect to the action agreed upon by the managers and 
recommended in the accompanying conference report:
      The Senate amendment struck all of the text of the House 
bill after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to all of the 
amendment of the Senate with an amendment that is a substitute 
for the House bill and the Senate amendment. The differences 
between the House bill, the Senate amendment, and the 
substitute agreed to in conference are noted below, except for 
clerical corrections, conforming changes made necessary by 
agreements reached by the conferees, and minor drafting and 
clerical changes.

                  Title I, Part A, Subpart 2 (Formula)

      **Note: The side-by-sides were numbered wrong, so these 
notes have been re-numbered. To correlate these notes with your 
side-by-side, add 15 to the side-by-side note number to get 
these re-numbered notes.
      501. The House bill and the Senate amendment are 
substantially the same with exception of technical differences.
      LC
      502. Both bills provide assistance to the outlying areas. 
The Senate amendment, but not the House bill, provides 
assistance to the outlying areas in accordance with such 
criteria as the Secretary determines will best carry out the 
purpose of this part.
      LC--conform to note 504.
      503. The House bill and the Senate amendment are 
substantially the same except the Senate amendment clarifies 
that grants are specifically to local educational agencies.
      HR
      504. Both the House bill and the Senate amendment 
authorize a competition for grants. The House bill authorizes 
the competition for FY2002 and FY2003, while the Senate 
amendment authorizes the competition for FY2002 and each of the 
6 succeeding fiscal years. The House bill and the Senate 
amendment have two different ways of referring to the $5 
million reserved for the Freely Associated States. The Senate 
amendment authorizes the Secretary to reserve $5 million for 
the competitive grants from funds under subsection (a)(1), for 
the Freely Associated States. The House bill, but not the 
Senate amendment, caps the reservation at the level reserved 
for the Freely Associated States in FY1999, which was $5 
million. The House bill directs the Secretary to make 
competitive grant awards pursuant to the recommendations of the 
Pacific Region Educational Laboratory while the Senate 
amendment allows the Secretary to award grants ``taking into 
consideration'' the recommendations of the Pacific Region 
Educational Laboratory. The House bill provides for competitive 
grants to outlying areas and Freely Associated States while the 
Senate amendment includes only the Freely Associated States.
      HR with amendment to strike ``For fiscal year 2002, and 
each of the 6 succeeding fiscal years'' and insert ``Until an 
agreement for the extension of United States education 
assistance under the Compact of Free Association for each 
appropriate outlying area enters into effect after the date of 
enactment of this Act.
      505. The Senate amendment, but not the House bill, 
provides that funds may only be used for specified purposes 
under this paragraph.
      HR with an amendment to insert ``that assist all students 
with meeting challenging State academic content standards'' 
after ``to provide direct educational services'' in (ii).
      506. The House bill and the Senate amendment both permit 
the Secretary to provide 5 percent of the amount reserved for 
grants under this paragraph to the Pacific Region Educational 
Laboratory for pay for administrative costs. There are minor 
technical differences in wording.
      SR
      507. The House bill, but not the Senate amendment, 
includes a special rule whereby, consolidation authority under 
P.L. 95-134 does not apply with respect to these funds.
      SR
      508. The House bill, but not the Senate amendment, 
includes definitions of ``Freely Associated States'' and 
``Outlying Area'' for purposes of subsection (a) and (b). See 
also note 29 in Title VIII's General Provisions regarding 
definitions of these words. See also note 507 following.
      LC--conform and put in Title VIII
      509. The House bill and the Senate amendment are 
identical, except the House bill uses the word ``allotted'' 
while the Senate amendment uses the word ``reserved.''
      SR
      510. The House bill and the Senate amendment are 
identical, except the House bill uses the word ``allotted'' 
while the Senate amendment uses the word ``reserved.''
      SR
      511. The House bill and the Senate amendment are 
substantially the same, except the House bill refers to FY2002-
FY2006 while the Senate amendment refers to FY2002-FY2008. The 
House bill refers to amounts ``equal to'' the amount 
appropriated to carry out section 1124 while the Senate 
amendment refers to amounts ``less than or equal to'' the 
amount appropriated to carry out section 1124. In effect, the 
House bill and Senate amendment are the same, as long as 
appropriations are at or above the FY2001 level.
      SR with an amendment to strike ``2006'' and insert 
``2007''.
      512. The Senate amendment refers to amounts appropriated 
that are not used under paragraph (1) while the House bill does 
not have a similar clause.
      SR
      513. The House bill allocates funds under section 1125 
according to the extent to which the amount appropriated under 
1002(a) for the current fiscal year exceeds the amount 
appropriated for fiscal year 2001. The Senate amendment 
allocates funds in accordance with section 1125 for which a 
determination is made that funds are not used to carry out 
paragraphs (1) and (2). In effect, the House bill and Senate 
amendment are the same.
      SR
      514. The House bill and Senate amendment have identical 
provisions on ratable reductions.
      LC
      515. The House bill includes a hold harmless provision 
for sections 1124 and 1125 together, with a separate provision 
for section 1124A. The Senate amendment includes a hold 
harmless for sections 1124, 1124A and 1125 as one provision. 
The House bill provides for basic and targeted grants a hold 
harmless of 95 percent, 90 percent and 85 percent based on 
ranges of percentages of poor children in LEAs, while the 
Senate amendment provides, for basic, concentration, and 
targeted grants, a hold harmless based on the greater of 100% 
of what a district received for 2001 or the amount the district 
would have received under the statutory formula without 
applying any hold harmless. Under the House bill, the hold 
harmless provisions apply separately to each formula, as 
opposed to being applied to total grants under all three 
formulas. The Senate amendment applies to the FY2001 grant 
amount for each year, not to the previous year's grant amount, 
as in the House bill.
      SR
      516. The House bill, but not the Senate amendment 
provides for an 85 percent hold harmless for section 1124A 
(concentration) grants. Compare to Senate provision above.
      SR with an amendment--apply according to district poverty 
level a sliding scale hold harmless of 85 percent to 95 percent 
of previous year's grant to basic, concentration, and targeted 
formulas, separately.
      517. The House bill, but not the Senate amendment, 
provides a special rule regarding ineligible LEAs with respect 
to grants under section 1124A. See also the ``Special Rules'' 
under subsection (c)(2) of the Senate bill for minimum 
eligibility criteria.
      SR
      518. The Senate amendment, but not the House bill, 
prohibits the Secretary from taking into account the hold 
harmless for purposes of calculating State or local allocations 
for any other program that relies on Part A allocations.
      HR
      519. The House bill, and the Senate amendment contain the 
same provision (see section 1122(c)(3) of the Senate 
amendment), which provides a special rule for addressing 
situations where allocations for counties are insufficient to 
meet the hold harmless requirements for every local educational 
agency within that county. Under such circumstances, the State 
educational agency shall reallocate funds from all other local 
educational agencies in the State that are receiving funds in 
excess of the hold harmless amounts.
      LC
      520. The Senate amendment, but not the House bill, 
requires the Secretary of Education to use updated population 
data published by the Department of Commerce for purposes of 
carrying out grants under section 1124, unless the Secretary of 
Education and the Secretary of Commerce determine the use of 
the updated population data would be inappropriate or 
unreliable. The Senate amendment also includes provisions 
relating to inappropriate or unreliable data, poverty criteria, 
authorizations of appropriations, special rules, and 
calculations based on population data for counties. The Senate 
amendment provides for the use of population updates annually, 
rather than every second year, as under the House bill.
      HR with an amendment to insert ``annually'' between 
``use'' and ``updated'' in clause (i); Allow for biennial data 
usage when annually updated data in not available; strike 
clause (iv) Authorization of Appropriations and subclauses (II) 
and (III) of clause (ii);
      LC on Senate (3).
      Report Language:
      The Conferees strongly urge the Department of Education 
and the Department of Commerce to work collaboratively to 
produce annually updated data on the number of poor children as 
soon as possible, but not later than March 2003. The conferees 
believe it is imperative that the departments use annually 
updated data as produced by the Department of Commerce, as 
provided for in the Conference agreement. The Conferees 
recognize that additional resources will likely be necessary to 
produce annually updated data and therefore expect the 
Departments of Commerce and Education to submit budget requests 
that reflect the efforts that will be necessary to carry out 
this new responsibility.
      521. The House bill and the Senate amendment on ratable 
reductions are identical.
      LC
      522. The Senate amendment includes definitions for 
``Freely Associated States,'' and ``Outlying Areas,'' for 
purposes of this subpart. The House bill, in note 493 above, 
includes definitions of ``Freely Associated States'' and 
``Outlying Areas.'' See also note 29 in Title VIII (General 
Provisions) for definition of ``Outlying Area.''
      LC
      523. The House bill and the Senate amendment both include 
definitions of the term ``State.'' The Senate amendment 
references the definition for purposes of this subpart while 
the House bill references applicability to section 1122, 1124, 
1124A, and 1125.
      LC
      524. The House bill and the Senate amendment have 
identical provisions for the amount of grants to local 
educational agencies.
      LC
      525. The House bill and the Senate amendment are 
identical for the calculation of grants for purposes of 
allocations to local educational agencies.
      LC
      526. The House bill and Senate amendment have 
substantially similar provisions for allocations to large and 
small local educational agencies with minor technical 
differences.
      LC
      527. The House bill and the Senate amendment have 
substantially similar provisions on allocations to counties 
with minor technical differences.
      LC
      528. The House bill and the Senate amendment are 
identical except the House bill uses the ``Assurances'' in the 
heading and the Senate bill uses the phrase ``Allocations to 
Local Educational Agencies.''
      HR
      529. The House bill and the Senate amendment are 
substantially similar with minor technical differences in 
wording.
      LC
      530. The House bill and Senate amendment are 
substantially similar with minor technical differences in 
wording.
      LC
      531. The House bill, but not the Senate amendment, 
includes minimum percentages for each of fiscal years 2002-2005 
and succeeding fiscal years in the calculations of the 
expenditure factor for Puerto Rico.
      SR with an amendment to insert:
                            ``(v) for fiscal year 2006, 92.5 
                        percent; and
                            ``(vi) for fiscal year 2007, 100 
                        percent.''
      532. The House bill, but not the Senate amendment, 
includes adjustments in allocations to Puerto Rico relative to 
any of the 50 States or the District of Columbia receiving less 
than in the preceding fiscal year.
      SR with an amendment to strike the ``or'' after 
``(A)(i)'' and insert a comma, and insert ``, or the percentage 
specified in subparagraph (B) for the preceding fiscal year'' 
after ``the percentage used for the preceding fiscal year''.
      533. The House bill, but not the Senate amendment, 
includes a definition of ``State'' for purposes of this 
subsection.
      SR
      534. The House bill and Senate amendment have identical 
provisions relating to the minimum number of children to 
qualify for a basic grant.
      LC
      535. The House bill and the Senate amendment on 
categories of children to be counted are identical except the 
Senate amendment references both paragraphs (2) and (3) for the 
determination, while the House bill only references paragraph 
(2).
      HR
      536. Paragraph (B) of the Senate amendment is identical 
to Paragraph (C) of the House bill.
      LC
      537. Paragraph (B) of the House bill is identical to 
Paragraph (C) of the Senate amendment with minor technical 
differences in the placement of parentheticals.
      LC
      538. Paragraph (C) of the House bill and Paragraph (B) of 
the Senate amendment are identical.
      LC
      539. The House bill and the Senate amendment are 
identical with the exception of minor technical differences in 
drafting.
      SR
      540. The House bill and the Senate amendment are 
identical with minor technical differences in drafting. 
However, see also note 505 above for section (c)(1)(C)(i) of 
the Senate amendment which provides population updates every 
year rather than every second year as under the House bill and 
under (c)(3) of the Senate amendment.
      LC--conform with note 520.
      541. The House bill and the Senate amendment are 
identical with the exception of technical differences in 
punctuation.
      LC
      542. The House bill and Senate amendment are identical 
with minor technical differences in cross references.
      LC
      543. The House bill and Senate amendment are identical 
with minor technical differences.
      HR with an amendment to increase small state minimum for 
funds above FY 2001 level to .35 percent with current law per 
pupil grant cap adjusted accordingly.
      544. The House bill and Senate amendment have 
substantially similar provisions on eligibility for 
concentration grants, except Guam, American Samoa, the Virgin 
Islands, and the Commonwealth of the Northern Mariana Islands 
are not eligible for such grants under the House bill. See also 
section 1123 of the Senate amendment which defines ``state'' as 
the 50 states, the District of Columbia and Puerto Rico for 
purposes of subpart 2. Accordingly, the effect of the House 
bill and Senate amendment herein is the same.
      HR with an amendment to increase small state minimum for 
funds above FY 2001 level to .35 percent with current law per 
pupil grant cap adjusted accordingly.
      545. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment includes a calculation relating to Puerto Rico in the 
formula. The effect of the House bill and the Senate amendment 
is the same.
      HR with an amendment to strike ``section 1124(a)(3)'' and 
insert ``section 1124(a)(4)''.
      546. The House bill and the Senate amendment are 
identical.
      LC
      547. The House bill and the Senate amendment are 
identical except in paragraph (B) the House bill refers to 
``allocation'' to the State while the Senate amendment refers 
to ``amount made available to the State.''
      SR
      548. The Senate amendment, but not the House bill, 
includes a ratable reduction rule.
      SR
      549. The House bill and the Senate amendment have 
substantially similar provisions regarding minimum grants with 
technical differences in wording. The Senate amendment refers 
to States receiving .25 percent or less while the House bill 
refers to minimum grants.
      SR with an amendment to strike ``In States that receive 
the minimum grant under subsection (a)(1)(B)'' and to insert 
``In any State for which on the date of enactment of The No 
Child Left Behind Act of 2001 the number of children counted 
under section 1124(c) is less than 0.25 percent of the number 
of those children counted for all States''.
      550. The House bill and Senate amendment on targeted 
grants are substantially the same with technical differences, 
including differences in formatting.
      HR
      551. The House bill and Senate amendment are 
substantially the same. However, the House bill refers to a 
State and the District of Columbia while the Senate amendment 
refers to a State ``(other than the Commonwealth of Puerto 
Rico).''
      LC
      552. The House bill and the Senate amendment are 
substantially the same.
      LC
      553. The House bill and the Senate amendment on weighted 
child counts are identical with technical differences.
      HR with an amendment to update quintiles as per latest 
available Census poverty data and to strike ``1.72'' and insert 
``1.82'' in subparagraph (D) of paragraphs (1) and (2).
      554. The House bill and the Senate amendment are 
substantially the same.
      LC
      555. The House bill and the Senate amendment have 
substantially different provisions for the state minimum. The 
House bill guarantees .25% of appropriations or the average of 
.25% of the amount available to carry out the concentration 
grants section and 150% of the national average. The Senate 
amendment provides a .5% minimum grant.
      SR with an amendment to strike ``.25'' and insert ``.35'' 
in its place; and strike ``one quarter of 1'' and insert 
``.35''.
      556. The Senate amendment, but not the House bill, 
includes findings relative to the funding of targeted grants, 
and a statement on funding such grants. The Senate amendment 
effectively re-emphasizes the text in section 1122(a).
      HR with an amendment to strike all language in subsection 
(b) and insert the following:
      ``(b) Limitation on Allocation of Title I Funds 
Contingent on Adequate Funding of Targeted Grants.--Pursuant to 
section 1122, the total amount allocated in any fiscal year 
after fiscal year 2001 for programs and activities under Part A 
of Title I of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311 et seq.) shall not exceed the amount 
allocated in fiscal year 2001 for such programs and activities 
unless the amount available for targeted grants to local 
educational agencies under section 1125 of that Act (20 U.S.C. 
6335) in the applicable fiscal year meets the requirements of 
section 1122 (a).''
      557. The Senate amendment, but not the House bill, 
includes an education finance incentive program. The Senate 
amendment, but not the House bill, also provides for a school 
finance equity study in subsection (f).
      HR with an amendment:
            (1) funds distributed to states based on 
        multiplication of each state's effort factor, equity 
        factor, total number of children counted under section 
        1124 (c), and ``cost of education factor'' described in 
        section 1124 (a)(1)(B), except that the amount 
        determined under that subparagraph shall not be less 
        than 34 percent or more than 46 percent of the average 
        per pupil expenditure in the United States;
            (2) funds distributed within state via section 1125 
        in states with an equity factor that is greater than 
        1.2, via section 1125 with a maximum weight of 6 in 
        states with an equity factor greater than 1.1 and less 
        than 1.2, and via section 1125 with a maximum weight of 
        8 in states with an equity factor greater than 1.0 and 
        less than 1.1;
            (3) strike ``.5'' and insert ``.35'' in 
        subparagraph (B) of paragraph (1) of subsection (b).
            (4) strike ``$200,000,000'' and insert ``such 
        sums'' and strike ``6'' and insert ``5'' in subsection 
        (e).
      558. The House bill and the Senate amendment have 
identical special allocation procedures except the House bill 
refers to ``neglected children'' while the Senate amendment 
refers to ``neglected or delinquent children.''
      HR
      559. The House bill and Senate amendment are identical.
      LC
      560. The House bill, but not the Senate amendment, 
includes a provision relating to secular, neutral, and 
nonideological educational services and benefits.
      HR

                            Title I, Part A

      1. The House bill and the Senate amendment have different 
titles.
      SR
      2. The House bill and the Senate amendment are 
substantially the same.
      LC*
      *Legislative Counsel, only minor and technical changes 
were made.
      3. The Senate amendment, but not the House bill, amends 
current law by moving the ``SHORT TITLE'' and ``TABLE OF 
CONTENTS'' to different sections and adds a ``PURPOSE'' section 
for the entire Act.
      HR
      4. The House bill, but not the Senate amendment, 
continues for one year after the enactment of the bill those 
grants entered into before enactment. The Senate amendment, but 
not the House bill, contains specific transitional provisions 
within the various titles of the Senate amendment. Also, see 
note  in Title VIII, General Provisions.
      SR with an amendment to strike ``date that is one year 
after the effective date of this Act'' and replace with ``the 
end of fiscal year 2002, unless such grant was awarded after 
the date of enactment of this Act but prior to January 1, 2002, 
in which case such grant funds shall be available for one year 
after such grant is awarded.''
      5. The House bill and the Senate amendment vary 
significantly as to organization of each piece of legislation. 
The differences between the two bills are fully explained in 
the notes for each title, which are organized according to the 
House bill.
      HR/SR with an amendment--(see organizational handout).
      6. The Senate amendment does not contain a similar 
provision.
      SR with amendment to strike ``on October 1, 2001, or'' 
and ``, whichever occurs later''
      7. The House bill and the Senate amendment have different 
headings for Title I.
      SR with amendment to strike ``PERFORMANCE'' and insert 
``ACHIEVEMENT''
      8. The House bill and the Senate amendment have different 
section headings.
      SR
      9. The House bill, but not the Senate amendment contains 
findings.
      HR
      10. The Senate amendment, but not the House bill, 
contains a more detailed statement of purpose and references 
challenging State content and performance standards. Both the 
House bill and the Senate amendment refer to ``all children''. 
The Senate amendment, but not the House bill, describes the 
purpose of the title in the following nine paragraphs.
      HR/SR with amendment to insert:

``SEC. 1001. STATEMENT OF PURPOSE.

      ``The purpose of this title is to ensure all children 
have a fair, equal and significant opportunity to obtain a high 
quality education and reach, at a minimum, proficiency on 
challenging state academic achievement standards and state 
academic assessments. This purpose can be accomplished by--
            ``(1) ensuring high quality academic assessments, 
        accountability systems, teacher preparation and 
        training, curriculum, and instructional materials are 
        aligned with challenging State academic standards so 
        that students, teachers, parents, and administrators 
        can measure progress against common expectations for 
        student academic achievement;
            ``(2) meeting the educational needs of low-
        achieving children in our Nation's highest-poverty 
        schools, limited English proficient children, migratory 
        children, disabled children, Indian children, neglected 
        or delinquent children, and young children in need of 
        reading assistance;
            ``(3) closing the achievement gap between high and 
        low performing children, especially the achievement 
        gaps between minority and non-minority students, and 
        between disadvantaged and their more advantaged peers;
            ``(4) holding schools, local educational agencies, 
        and States accountable for improving the academic 
        achievement of all students, and identifying and 
        turning around low-performing schools that have failed 
        to provide a high quality education to its students, 
        while providing alternatives to students in such 
        schools to enable them to receive a high quality 
        education;
            ``(5) distributing and targeting resources 
        sufficiently to make a difference to local educational 
        agencies and schools where needs are greatest;
            ``(6) improving and strengthening accountability, 
        teaching, and learning by using State assessment 
        systems designed to ensure students are meeting 
        challenging State academic achievement and content 
        standards and increasing achievement overall, but 
        especially for the disadvantaged;
            ``(7) providing greater decision making authority 
        and flexibility to schools and teachers in exchange for 
        greater responsibility for student performance;
            ``(8) providing children an enriched and 
        accelerated educational program, including the use of 
        schoolwide programs or additional services that 
        increase the amount and quality of instructional time;
            ``(9) promoting schoolwide reform and ensuring 
        access of children to effective, scientifically-based 
        instructional strategies and challenging academic 
        content;
            ``(10) significantly elevating the quality of 
        instruction by providing staff in participating schools 
        with substantial opportunities for professional 
        development;
            ``(11) coordinating services under all parts of 
        this title with each other, with other educational 
        services, and to the extent feasible, with other 
        agencies providing services to youth, children, and 
        families;
            ``(12) affording parents substantial and meaningful 
        opportunities to participate in the education of their 
        children;''
      11. The House bill, but not the Senate amendment, 
contains a subsection that describes the recognition of need by 
Congress. However, see notes 12 and 13.
      HR (see note 10)
      12. The Senate amendment contains a generally similar 
provision to the House bill regarding accountability in 
paragraph (8) of section 1001 of the Senate amendment.
      HR (see note 10)
      13. The Senate amendment contains a generally similar 
provision to the House bill regarding the quality and alignment 
of standards, assessments, and other efforts of states and LEAs 
in paragraph (1) of section 1001 of the Senate amendment.
      HR (see note 10)
      14. The Senate amendment, but not the House bill, 
provides a short title for the LEA grants subsection.
      HR
      15. The House bill and the Senate amendment are 
substantially different. The Senate amendment authorizes 
greater annual appropriations than the House bill and extends 
the authorization schedule through 2011, while the House bill 
provides authorization levels through 2006.
      HR/SR with amendment to strike all and insert the 
following:
                    ``(A) $13,500,000,000 for fiscal year 2002;
                    ``(B) $16,000,000,000 for fiscal year 2003;
                    ``(C) $18,500,000,000 for fiscal year 2004;
                    ``(D) $20,500,000,000 for fiscal year 2005;
                    ``(E) $22,750,000,000 for fiscal year 2006;
                    ``(F) $25,000,000,000 for fiscal year 
                2007.''
      Report Language:
      The Conferees recognize that Title I grants to local 
educational agencies are essential to provide low-income 
students with the resources they need to meet challenging State 
academic achievement standards. The Conferees further recognize 
that to implement fully the reforms incorporated in the 
conference agreement, the local educational agencies will 
require increased Title I resources, for which reason the 
Conferees have agreed to significant and annual increases in 
Title I authorizations.
      According to the Congressional Research Service, one 
common interpretation of the ``full funding'' theory for Title 
I, part A is based on the maximum payment calculations under 
the Basic Grant allocation formula, which is one of the four 
Title I, part A formulas. The Basic Grant formula establishes a 
maximum payment based on the number of low-income children (and 
other children that qualify for services under other Title I 
programs) multiplied by a State expenditure factor. The State 
expenditure factor for the Basic Grant formula is the State 
average expenditure per pupil in average daily attendance for 
public elementary and secondary education, within the range of 
80% to 120% of the national average. The 80%-120% range means 
that if the State average expenditure per pupil is less than 
80% of the national average, it is raised to 80%, and if it is 
above 120%, it is reduced to 120%. Under this theory, for 
fiscal year 2001, Congress provided local educational agencies 
with roughly 1/3 of ``full funding.''
      The Conferees also note there are other theories that 
might be used to determine ``full funding'' of Title I, part A, 
to ensure that the maximum number of low-income, low-achieving 
children receive direct educational assistance.
      The Conferees wish to emphasize that the conference 
agreement provides for significantly increased and targeted 
funding for Title I, part A, and strongly encourage Congress to 
continue to significantly increase funding for Title I, part A. 
Such funding, in conjunction with the significant reforms in 
the conference agreement, is critical to helping schools close 
the achievement gap and low-income students achieve and succeed 
academically.''
      16. The House bill and the Senate amendment authorize the 
same amount for FY 02 and such sums for the out years. The 
House bill and Senate amendment refer to the same program but 
have a technical difference in cross-references. Also, the 
Senate amendment authorizes such sums for the 6 succeeding 
fiscal years while the House bill authorizes such sums for the 
4 succeeding fiscal years. The technical difference in cross-
references and the difference in the number of years for which 
such sums are authorized beyond FY 02 are consistent throughout 
the remainder of the provisions authorizing appropriations for 
the various Title I programs.
      LC
      17. The House bill and the Senate amendment are 
substantially the same with the differences indicated in note 
16 regarding cross-references and the number of years.
      LC
      18. The House bill and the Senate amendment contain 
different authorization levels for FY 02, but otherwise are 
substantially the same with the differences indicated in note 
16 regarding cross-references and the number of years.
      LC
      19. The House bill authorizes such sums for FY 02 and the 
4 succeeding fiscal years. The Senate amendment authorizes $25 
million for FY 02 and such sums for the 6 succeeding fiscal 
years.
      HR/SR with amendment to move RIF to FIE and to strike 
paragraph (4) and insert:
            ``(4) Improving literacy through libararies.--For 
        the purpose of carrying out subpart 4 of part B, there 
        are authorized to be appropriated $250,000,000 for 
        fiscal year 2002 and such sums as may be necessary for 
        each of the 5 succeeding fiscal years.''
      20. The House bill and the Senate amendment contain 
different authorization levels for FY 02, but otherwise are 
substantially the same with the difference indicated in note 16 
regarding the number of years.
      LC
      21. The House bill and the Senate amendment are 
substantially the same with the differences indicated in note 
16 regarding cross-references and the number of years.
      LC
      22. The House bill and the Senate amendment contain 
different authorization levels for FY 02, but otherwise are 
substantially the same with the difference indicated in note 16 
regarding cross-references and the number of years.
      LC
      23. The House bill and the Senate amendment are 
substantially the same with the difference indicated in note 16 
regarding the number of years.
      HR/SR to strike all language (Rural authorization is now 
in Title VI, part B).
      24. The House bill authorizes $6 million for FY 02 and 
such sums for FY 03. The Senate amendment authorizes $15 
million for FY 02 and FY 03, and $5 million for FY 04.
      HR/SR to move to FIE
      25. The House bill and the Senate amendment contain 
different authorization levels for FY 02, but otherwise are 
substantially the same with the difference indicated in note 16 
regarding the number of years.
      HR with amendment to strike paragraph (1) and to insert:
            ``(1) Sections 1501 and 1502.--For the purposes of 
        carrying out sections 1501 and 1502, there are 
        authorized to be appropriated such sums as may be 
        necessary for fiscal year 2002 and each of the 5 
        succeeding fiscal years.''
      26. The House bill authorizes such sums for FY 02 and the 
4 succeeding fiscal years. The Senate amendment authorizes $25 
million for FY 02 and such sums for the 6 succeeding fiscal 
years.
      HR/SR to strike all language
      27. The Senate amendment does not contain a similar 
provision.
      SR with amendment to strike 1503 in both places and 
insert 1504.
      28. The House bill does not contain a similar provision 
in Title I, part A. However, see note in Title V of the House 
bill for the authorization level for 21st Century Community 
Learning Centers.
      SR with amendment to include agreed upon authorization 
level in the 21st Century program (Title IV, part B).
      29. The House bill does not contain a similar provision.
      HR with amendment to strike $500,000,000 and insert 
$125,000,000 and to insert as a new subsection:
      (#--LC) ``Advanced Placement.--For the purpose of 
carrying out part H, there are authorized to appropriated such 
sums as may be necessary for fiscal year 2002 and for each of 
the 5 succeeding fiscal years.''
      30. The Senate amendment retains the State administration 
reservation of 1% of programs through a redesignation of Part F 
of current law, with significant differences between the House 
bill and the Senate amendment. The House bill limits State 
administration to 1% of the State's allocation for FY 01, while 
the Senate amendment limits it to 1% of each fiscal year's 
allocation. In addition, the House bill refers to 
``administrative duties assigned'', while the Senate amendment 
refers to ``proper and efficient performance of its duties''. 
Otherwise, the Senate amendment does not contain the House bill 
provisions in paragraphs (2) and (3).
      SR with amendment to strike paragraphs (1) and (2) and 
insert:
            (1)(A) To carry out administrative duties assigned 
        under parts A, C, and D of this title, each State may 
        reserve the greater of--
                    (i) 1 percent of the amounts received under 
                such parts; or
                    (ii) $400,000 ($50,000 for each outlying 
                area);
            (B) If the sum of the amounts appropriated for 
        parts A, C, and D of this title is equal to or greater 
        than $14,000,000,000, the reservation described in 
        subparagraph (A)(i) shall not exceed 1 percent of the 
        amount the State received, or would receive, if 
        $14,000,000,000 is allocated among the States for parts 
        A, C, and D of this title.
      31. The Senate amendment does not contain a similar 
provision.
      SR with amendment to insert as new paragraph (7) and 
renumber the subsequent paragraphs accordingly:
            ``(7) A State educational agency that receives a 
        grant award under this subsection shall allocate at 
        least 95 percent of that amount directly to local 
        educational agencies for schools identified for school 
        improvement, corrective action, and restructuring for 
        activities under section 1116(b), or may, with the 
        approval of the local educational agency, directly 
        provide for these activities or arrange for their 
        provision through other entities such as school support 
        teams or educational service agencies.''
      32. The House bill requires the State to reserve 1% of 
the part A, subpart 2 amount for FY 02 and FY 03, and 3% of the 
part A, subpart 2 amount for FY 04 through FY 06. The Senate 
amendment requires the State to reserve 3.5% of the part A, 
subpart 2 amount for FY 02 and FY 03, and 5% of the part A, 
subpart 2 amount for FY 04 through FY 08. Otherwise the House 
bill and Senate amendment are similar.
      SR with amendment to strike ``1 percent'' and insert ``2 
percent'' and to strike ``3 percent'' and insert ``4 percent''.
      33. The House bill requires the State to allocate 95% of 
the funds reserved to those schools identified pursuant to 
section 1116(b) that have the greatest need and in sufficient 
amounts. The Senate amendment requires the State to allocate 
50% of the funds reserved to those schools identified pursuant 
to section 1116(c). The House bill and the Senate amendment 
differ technically in the cross-references.
      SR with amendment to insert ``for activities'' after 
``restructuring'' and strike all after ``1116(b)'' and insert 
``or may, with the approval of the local educational agency, 
directly provide for these activities or arrange for their 
provision through other entities such as school support teams 
or educational service agencies.''
      34. The Senate amendment does not contain a similar 
provision.
      SR
      35. The Senate amendment does not contain a similar 
provision.
      SR
      36. The Senate amendment does not contain a similar 
provision.
      SR with amendment to add a new subsection:
      ``(f) Reporting--Upon request, the State education agency 
shall provide a list of those schools that have received funds 
or services pursuant to subsection (b) and the poverty 
percentage of such schools.''
      37. The House bill does not contain a similar provision.
      HR with an amendment move language to the State plan and 
appear as section 1111(c)(3), then renumber current 1111(c)(3) 
as (c)(4), and subsequent sections in like manner. (Cross 
reference with note 113)
            ``(3) the State educational agency, in consultation 
        with the Governor, will include, as a component of the 
        State plan, a plan to carry out the responsibilities of 
        the State under sections 1116 and 1117, including 
        carrying out the State educational agency's statewide 
        system of technical assistance and support for local 
        educational agencies.''
      38. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill, but not the 
Senate amendment, requires consultation with entities listed, 
while the Senate amendment, but not the House bill, 
specifically refers to the chief State school official who 
prepares the plan and that the Governor is consulted; and (2) 
The House bill requires coordination with the acts listed, 
including the Homeless Act, which the Senate amendment does 
not, while the Senate amendment requires coordination with the 
acts listed, including the Adult Education and Family Literacy 
Act, which the House bill does not.
      SR with an amendment to insert ``Adult Education and 
Family Literacy Act'' before ``and the McKinney-Vento''.
      39. The House bill and the Senate amendment are 
substantially similar with a technical difference in cross-
references.
      LC
      40. The House bill and the Senate amendment are 
substantially similar with the exception that the House bill, 
but not the Senate amendment, refers to ``academic content 
standards'' and ``academic achievement standards''. This 
difference in references to standards is consistent throughout 
the remainder of Title I, part A, of each piece of legislation.
      SR
      41. The House bill and the Senate amendment are similar 
with technical differences.
      SR
      42. The House bill, but not the Senate amendment, 
specifically refers to students served under this part and 
emphasizes that all children are held to the same expectations. 
The Senate amendment, but not the House bill, includes history 
as a subject for which standards are required. In addition, the 
House bill refers to the date by which science standards are 
required, which the Senate amendment also does, but in 
subparagraph (C)(ii) following of the Senate amendment. See 
note 44.
      SR
      43. The House bill does not contain a similar provision.
      SR
      44. See note 42 regarding the date by which science 
standards are required.
      SR
      45. The House bill and the Senate amendment are 
substantially similar in subparagraph (D) of each piece of 
legislation, with the exception indicated in note 46 and the 
reference to standards indicated in note 40.
      LC
      46. The Senate amendment does not contain a similar 
provision.
      SR
      47. The House bill and the Senate amendment are similar 
with minor wording differences.
      LC
      48. The Senate amendment does not contain a similar 
provision.
      SR with an amendment to insert the following language:
                    ``(F) Nothing in this part shall prohibit a 
                State from revising, consistent with this 
                section, any standard adopted under this part 
                before or after the date of enactment of the No 
                Child Left Behind Act of 2001.''
      49. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) The 
Senate amendment, but not the House bill, refers to a single 
statewide system; (2) The Senate amendment, but not the House 
bill, references two subparagraphs regarding adequate yearly 
progress; and (3) The House bill, but not the Senate amendment, 
refers to all ``public'' elementary and secondary schools.
      HR with an amendment to insert ``public'' before 
``elementary and secondary schools''.
      (LC for all other occurrences).
      50. The House bill and the Senate amendment are similar 
with the following exceptions: (1) See note 40 regarding 
references to standards; (2) The House bill, but not the Senate 
amendment, adds the word ``academic'' before ``assessments'', 
which is consistent throughout the remainder of Title I, part 
A, of each piece of legislation; (3) There is a technical 
difference in cross-references; and (4) The House bill, but not 
the Senate amendment, refers to all ``public'' school students.
      SR with an amendment to insert ``and other academic 
indicators consistent with subparagraph (D)'' before ``and take 
into account''.
      51. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) A 
technical difference in cross-references; and (2) The House 
bill, but not the Senate amendment, refers to ``public'' 
schools.
      SR
      52. The House bill does not contain a similar provision.
      SR
      53. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The Senate amendment, but 
not the House bill, refers to ``bonuses or recognition''; (2) 
The House bill, but not the Senate amendment, refers to 
``public'' schools; and (3) The Senate amendment, but not the 
House bill, holds LEAs and schools accountable for student 
achievement and performance.
      SR with an amendment to strike ``rewards and sanctions'' 
and insert ``sanctions and rewards, such as bonuses or 
recognition,''.
      54. The Senate amendment does not contain a similar 
provision. However, the Senate amendment defines adequate 
yearly progress in subparagraphs (B) through (H) following of 
the Senate amendment.
      SR
      55. The House bill and the Senate amendment are similar 
with the exception that the Senate amendment references a 
subparagraph the House bill does not.
      SR
      56. The House bill and the Senate amendment are similar 
with the exception indicated in note 50 regarding public school 
students.
      SR with amendment to strike ``performance'' and insert 
``achievement''
      57. The House bill does not contain a similar provision.
      HR
      58. The House bill does not contain a similar provision.
      HR
      59. The House bill and the Senate amendment are similar 
with the exceptions indicated in notes 50 regarding assessments 
and 51 regarding public schools.
      SR
      60. The Senate amendment does not contain a similar 
provision. However, see the Senate amendment provision in 
subparagraph (B)(vii) regarding the similar issue of high 
school completion. See note 65.
      HR
      61. The House bill and the Senate amendment are similar 
with the exceptions that the House bill provides an exception 
to the required disaggregation of data which the Senate 
amendment also does in clause (v)(II) (see note 63), and the 
House bill refers to ``numerical objectives'', while the Senate 
amendment refers to ``measurable objectives''.
      SR with amendment to strike ``annual numerical'' and 
insert ``measurable''
      62. See note 50 regarding public school students.
      SR
      63. The Senate amendment contains two more groups than 
the House bill: ``migrant students'' and ``students by 
gender''. However, see note 72 regarding the Senate amendment 
provision in subparagraph (D)(i)(II). In addition, the House 
bill, but not the Senate amendment, refers to ``major'' racial 
and ethnic groups. Also, see note 61 regarding the exception to 
the disaggregation of data.
      SR
      64. The Senate amendment does not contain a similar 
provision.
      HR
      65. The Senate does not contain a similar provision. 
However, see the Senate amendment provision in subparagraph 
(B)(vii) regarding high school completion and the exception 
regarding the inclusion of such factors not affecting school 
identification for school improvement or corrective action 
(under section 1116 of each piece of legislation). In addition, 
the House allows for these additional indicators to be 
discretionary, while the Senate amendment requires high school 
completion / graduation and one other factor as mandatory.
      SR with amendment to strike clause (v) and insert:
                            ``(v) at the State's discretion, 
                        may also include other academic 
                        indicators such as achievement on 
                        additional State or local academic 
                        assessments, decreases in grade-to-
                        grade retention rates, attendance 
                        rates, and changes in the percentages 
                        of students from the subgroups 
                        described in [(C)(v)(ii)] completing 
                        gifted and talented, advanced 
                        placement, and college preparatory 
                        courses, except the use of such 
                        indicators may not be used to reduce 
                        the number or change which schools 
                        would otherwise be subject to school 
                        improvement, corrective action, or 
                        restructuring under section 1116 if 
                        such additional indicators were not 
                        used, but may be used to identify 
                        additional schools for school 
                        improvement or in need of corrective 
                        action or restructuring.''
      And with amendment to add a special rule that these 
indicators and those referenced at note 67 shall be consistent 
with nationally recognized professional standards.
      66. Both the House bill and the Senate amendment require 
the State to establish a timeline by which the groups of 
students identified by each piece of legislation (see note 63) 
shall meet or exceed the State's proficient level on the State 
assessments used under this section and section 1116 of each 
piece of legislation. However, there are several major 
differences: (1) The House bill, but not the Senate amendment, 
establishes a baseline year by which to establish the timeline, 
which is the first year after enactment; (2) The House bill, 
but not the Senate amendment, requires a target year to get all 
groups of students to proficiency that is not to exceed 12 
years after the baseline year is established; (3) The Senate 
amendment, but not the House bill, requires all groups of 
students to obtain proficiency in 10 years or less after 
enactment; and (4) See note 50 regarding academic assessments.
      SR
      67. See notes 60 and 65.
      HR with amendment to strike ``school completion or'' and 
to strike ``except that . . . included'' and replace with: `` 
except the use of such indicators may not be used to reduce the 
number or change which schools would otherwise be subject to 
school improvement, corrective action, or restructuring under 
section 1116 if such additional indicators were not used, but 
may be used to identify additional schools for school 
improvement or in need of corrective action or restructuring.''
      Report Language:
      The Conferees intend that adequate yearly progress shall 
not be met or exceeded based solely on increased dropouts.
      68. The Senate amendment does not contain a similar 
provision.
      HR with amendment to insert that a State must establish a 
statutory minimum starting point based on each State's lowest 
achieving subgroup or the bottom quintile of the total student 
population in the State, whichever is higher, and that States 
must raise the ``bar'' at least once every three years in equal 
increments to reach 100% proficiency in 12 years, except the 
bar may remain the same for the first 2 years.
      69. The House bill does not contain a similar provision.
      SR with amendment to insert a significant progress 
exemption where the subgroup not meeting adequate yearly 
progress make a 10% reduction in the percentage of students in 
that subgroup who are not proficient and progress on one other 
academic indicator would allow a school to avoid being 
identified / to have met AYP.
      70. The House bill and the Senate amendment are similar 
with minor wording differences and the following exceptions: 
(1) See note 63 regarding the differences in groups of students 
between each piece of legislation; (2) Technical differences in 
cross-references regarding accommodations for students with 
disabilities; and (3) The Senate amendment, but not the House 
bill, contains an exception that this provision shall not 
abrogate the requirement to assess all students.
      SR with amendment to insert: ``with paragraph [(4)(H)(ii) 
(House reference)/(3(I)(ii) (Senate reference)] and with 
accommodations, guidelines, and alternate assessments provided 
in the same manner as they are provided under'' after 
``consistent'' and to strike ``with'' before ``section 
612(a)(17)(A)'' and to insert at the end after ``based'' the 
following: ``(except that the 95 percent requirement described 
in this subparagraph shall not be required in a case in which 
the number of students in a category is insufficient to yield 
statistically reliable information or the results would reveal 
individually identifiable information about an individual 
student).''
      71. The House bill does not contain a similar provision.
      SR
      72. The Senate amendment reduces the groups of students 
(see note 63) that must make at least 1% gain in the percentage 
of students meeting the proficient level of performance. 
Consequently, the composition of the required groups that must 
be making progress to proficiency under the House bill and the 
Senate amendment are the same.
      SR
      73. The House bill does not contain a similar provision.
      HR with amendment to add a new clause:
      (#--LC) ``the State, in establishing the uniform 
procedure for averaging data with the previous 1 or 2 school 
years preceding the school year for which the determination of 
meeting or exceeding adequate yearly progress is made, 
consistent with clause [(ii)], may use the academic assessments 
described in paragraph [(2)--conform with grade span assessment 
reference] that were required prior to the date of enactment of 
this Act until such time as the additional assessments 
described in paragraph [(2)--conform with 3-8 assessment 
reference] and required under this Act are being administered 
in such manner and time as to allow for the uniform procedure 
for averaging data described in clause [(ii)].''
      74. The House bill and the Senate amendment are 
substantially similar with the exception that the Senate 
amendment, but not the House bill, lists specific groups the 
State must seek comment from. In addition, there are some minor 
wording differences.
      HR
      75. The House bill and the Senate amendment are 
substantially similar with the exceptions indicated in notes 40 
and 50 regarding references to standards and assessments, and 
with the exception indicated in note 76.
      LC
      76. The House bill and the Senate amendment are similar 
with the exception that the House bill, but not the Senate 
amendment, references regulations published by the Secretary 
relating to the standards and assessments required under Title 
I, part A.
      SR
      77. The House bill does not contain a similar provision.
      HR with an amendment to strike subparagraph (H) and 
insert the following as a new subparagraph (H):
                    ``(H) The accountability provisions under 
                this Act shall be overseen for charter schools 
                in accordance with State charter school law.''
      Report Language:
      ``Charter schools are public schools and therefore 
subject to the same accountability requirements of this Act as 
they apply to other public schools, including Sections 1111 and 
1116, as developed in each state. However, there is no intent 
to replace or duplicate the role of authorized chartering 
agencies, as established under each state's charter school law, 
in overseeing the Act's accountability requirements for the 
charter schools that they authorize. Authorized chartering 
agencies should be held accountable for carrying out their 
oversight responsibilities as determined by each state through 
its charter school law and other applicable state laws. This 
should be done in ways that do not inhibit or discourage the 
approval or oversight of innovative, high quality charter 
schools.''
      78. The House bill and the Senate amendment are similar 
with following exceptions: (1) The House bill, but not the 
Senate amendment, refers to the State implementing a set of 
assessments; (2) The Senate amendment, but not the House bill, 
refers to consultation with LEAs in the assessment plan; (3) 
The Senate amendment, but not the House bill, requires science 
assessments, but provides an exception that such assessments 
shall not be required until the 2007-2008 school year; (4) The 
House bill, but not the Senate amendment, refers to the yearly 
performance progress of the State; (5) The House bill, but not 
the Senate amendment, refers to ``challenging'' standards; and 
(6) See notes 40 and 50 regarding references to standards and 
assessments.
      SR with an amendment to:
      Insert ``in consultation with local educational 
agencies,'' after ``that the State'', insert ``and science'' 
after ``language arts'', insert after ``achievement standards'' 
and before the period the following: ``except that no State 
shall be required to meet the requirements of this part 
relating to science assessments until the beginning of the 
2007-2008 school year''.
      Insert before ``Such assessments shall--'' the following 
language:
      ``Each State may incorporate the data from these 
assessments into a state-developed longitudinal data system 
that links student test scores, length of enrollment, and 
graduation records over time.''
      LC regarding references to standards and assessments.
      Report Language:
      ``The Conferees are aware of, and encouraged by, 
initiatives undertaken in some States to enable parents and 
others to compare the progress of students, classrooms and 
schools on a longitudinal basis. The Conferees wish to make 
clear that States may incorporate the data from the assessments 
required under this subsection into a state-developed 
longitudinal data system that links students' test scores, 
length of enrollment, and graduation records over time. Such 
systems may enable policymakers, educators, and parents to 
better evaluate the success of schools by reporting on the 
achievement of students enrolled in the same school for at 
least three years.''
      ``The Conferees recognize that a quality science 
education should prepare students to distinguish the data and 
testable theories of science from religious or philosophical 
claims that are made in the name of science. Where topics are 
taught that may generate controversy (such as biological 
evolution), the curriculum should help students to understand 
the full range of scientific views that exist, why such topics 
may generate controversy, and how scientific discoveries can 
profoundly affect society.''
      79. The House bill and the Senate amendment are the same 
with the exception indicated in note 40 regarding references to 
standards.
      LC
      80. The House bill and the Senate amendment are similar 
with the following exception: The Senate amendment, but not the 
House bill, refers to ``nationally'' recognized standards of 
testing that are developed and used by ``national experts on 
educational testing''.
      HR with an amendment to strike ``developed and . . . on 
educational testing;''
      81. The Senate amendment does not contain a similar 
provision.
      HR
      82. The House bill does not contain a similar provision.
      HR with an amendment to insert after ``Act,'' the words 
``and are consistent with the requirements of this section,''.
      83. The House bill requires assessments in at least 
mathematics and reading or language arts at least once in the 
grade spans listed. The Senate amendment requires assessments 
to commence not later than the 01-02 school year for students 
served under Title I, part A in mathematics and reading or 
language arts at least once in the grade spans listed.
      SR with an amendment:
                    ``(E)(i) except as otherwise provided for 
                grades 3 through 8 under subparagraph [(G)], 
                measure the proficiency of students in, at a 
                minimum, mathematics and reading or language 
                arts, and be administered not less than once 
                during--
                            ``(I) grades 3 through 5;
                            ``(II) grades 6 through 9; and
                            ``(III) grades 10 through 12;''
      84. The Senate amendment, but not the House bill, 
requires assessments to commence not later than the 02-03 
school year for all students in mathematics and reading or 
language arts at least once in the grade spans listed.
      SR with an amendment:
                            (ii) beginning not later than 
                        school year 2007-2008, measure the 
                        proficiency of all students in science 
                        and be administered not less than once 
                        during--
                                    (I) grades 3 through 5;
                                    (II) grades 6 through 9; 
                                and
                                    (III) grades 10 through 12;
      85. The House bill does not contain a similar provision.
      SR (See note 78)
      86. The House bill refers to student ``achievement'', 
while the Senate amendment refers to student ``performance''. 
In addition, the House bill refers to ``critical thinking 
skills'', while the Senate amendment refers to ``higher order 
thinking skills.''
      HR with an amendment to strike ``performance'' and insert 
``academic achievement''.
      87. The House bill requires assessments in the 04-05 
school year in each of the grades 3 through 8 in at least 
mathematics and reading or language arts. The Senate amendment 
requires assessments in the 05-06 school year annually in 
grades 3 through 8 and at least once in the grade span of 10-
12, in at least mathematics and reading or language arts, if 
the tests are aligned with State standards. (The House bill 
contains a similar requirement for an assessment at least once 
in the grade span of 10-12 in at least mathematics and reading 
or language arts in paragraph (4)(E).) See notes 40 and 50 
regarding references to standards and assessments. In addition, 
the House bill and the Senate amendment allow for a delay in 
assessment implementation with the following exceptions: (1) 
The House bill provides for a one-year delay after the 04-05 
school year if the assessment will be implemented after that 
one-year delay, while the Senate amendment provides for the 
assessments to be delayed from the 05-06 school year to the 06-
07 school year if the assessments will be implemented in the 
06-07 school year.; and (2) The House bill refers to the 
financial resources of the State, while the Senate amendment 
refers to the financial resources of the LEA or school.
      SR with an amendment to strike ``2004-2005'' and replace 
with ``2005-2006''.
      88. The House bill does not contain a similar provision.
      HR with amendment to strike clause (i) and insert as a 
new clause (i):
                            ``(i) a State may defer 
                        commencement, or suspend the 
                        administration, but not cease the 
                        development, of the assessments 
                        described in this paragraph, that were 
                        not required prior to the date of 
                        enactment of this Act, for 1 year, for 
                        each year for which the amount 
                        appropriated for grants under section 
                        [6205(a)(3) (Senate) / 7104(a)(3) 
                        (House)] is less than--''
      (Retain subclauses (I), (II), (III))
      And to strike ``fiscal year 2005'' in subclause (IV) and 
insert ``fiscal years 2005 through 2007'' and strike subclauses 
(VI) and (VII).
      89. The House bill does not contain a similar provision.
      HR
      90. The House bill and the Senate amendment are similar 
with minor wording differences and the exception indicated in 
note 91.
      HR/SR with an amendment to strike clause (iii) and insert 
as a new clause (iii):
                            ``(iii) the inclusion of limited 
                        English proficient students, who shall 
                        be assessed in a valid and reliable 
                        manner and provided reasonable 
                        accommodations on assessments 
                        administered to such students under 
                        this paragraph, including, to the 
                        extent practicable, assessments in the 
                        language and form most likely to yield 
                        accurate data on what such students 
                        know and can do in academic content 
                        areas, until such students have 
                        achieved English language proficiency 
                        as determined under paragraph (7).
      91. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill allows LEAs 
to determine if students should be assessed in the appropriate 
language (as opposed to English) and then assess such students 
in the appropriate language for one additional year; (2) The 
Senate amendment allows LEAs to demonstrate to the SEA if 
students should be assessed in the appropriate language (as 
opposed to English) and the SEA to permit such students to be 
assessed in the appropriate language for one or more additional 
years contingent upon the exception described.
      HR/SR with an amendment to strike clause (iv) and insert 
as a new clause (iv):
                            ``(iv) notwithstanding clause 
                        (iii), the academic assessment (using 
                        tests written in English) of reading or 
                        language arts of any student who has 
                        attended school in the United States 
                        (not including Puerto Rico) for 3 or 
                        more consecutive school years, except 
                        if the local educational agency 
                        determines, on a case-by-case 
                        individual basis, that academic 
                        assessments in another language or form 
                        would likely yield more accurate and 
                        reliable information on what such 
                        students know and can do, the local 
                        educational agency may make a 
                        determination to assess such students 
                        in the appropriate language other than 
                        English for a period that does not 
                        exceed 2 additional consecutive years, 
                        provided that such student has not yet 
                        reached a level of English language 
                        proficiency sufficient to yield valid 
                        and reliable information on what such 
                        student knows and can do on tests 
                        (written in English) of reading or 
                        language arts.''
      92. The House bill and the Senate amendment are the same.
      LC
      93. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The Senate amendment, but 
not the House bill, refers to ``interpretive and descriptive 
reports''; (2) The Senate amendment, but not the House bill, 
refers to the parents of all students; (3) The House bill 
refers to assessment scores, while the Senate amendment refers 
to assessment ``performance''; and (4) The Senate amendment, 
but not the House bill, includes a list of other measures that 
can be included on the reports.
      HR with an amendment to strike subparagraph (L) and 
insert:
                    ``(L) produce individual student 
                interpretive, descriptive, and diagnostic 
                reports, consistent with 1111[(b)(3)(C)--
                (nationally recognized professional standards 
                reference)], which allow parents, teachers, and 
                principals to understand and address the 
                specific academic needs of students, and 
                include information regarding achievement on 
                academic assessments aligned with State 
                academic achievement standards, that are 
                provided to parents, teachers, and principals, 
                as soon as is practicably possible after the 
                assessment is given, in an understandable and 
                uniform format, and to the extent practicable, 
                in a language that parents can understand;''
      94. The House bill and the Senate amendment are 
substantially similar with the exception that the Senate 
amendment, but not the House bill, provides for an exception to 
the disaggregation.
      HR with an amendment to insert ``major'' before ``racial 
and ethnic group,''.
      95. The Senate amendment does not contain a similar 
provision.
      SR with amendment to strike (L) and insert as a new 
subparagraph (L):
                    ``(N) be consistent with widely accepted 
                professional testing standards, objectively 
                measure academic achievement, knowledge and 
                skills, and be tests that do not evaluate or 
                assess personal or family beliefs and 
                attitudes, or publicly disclose personally 
                identifiable information;''
      Report language:
      The Conferees wish to clarify that this provision does 
not prohibit the use of essay, extended response, or short 
answer test items, nor does it prohibit the use of test items 
which require a student to analyze a passage of text or to 
express opinions, provided that such test items are developed 
consistent with widely accepted professional testing standards.
      96. The House bill does not contain a similar provision.
      HR with amendment to strike subparagraph (N) and insert:
                    ``(N) enable itemized score analysis to be 
                produced and reported, consistent with 
                1111[(b)(3)(C)--(nationally recognized 
                professional standards reference)], to local 
                educational agencies and schools, so that 
                parents, teachers, principals and 
                administrators can interpret and address the 
                specific academic needs of students as 
                indicated by the students' achievement on 
                assessment items.''
      Report Language:
                    ``In providing for itemized score analysis, 
                the Conferees intend for data to be presented 
                in a format which parents, teachers and schools 
                can understand. Providing parents, teachers and 
                schools with clear and technology-viable access 
                to both scores and scoring procedures is one of 
                the best strategies to ensure that mistakes 
                that do occur are both identified and corrected 
                in an expedient manner. In developing their 
                State academic assessment systems, States 
                should also consider and address the issue of 
                sufficient assessment transparency and 
                accessibility in order to protect the ability 
                of students, parents, teachers and school 
                administrators to gain access to test results 
                and testing methodologies.''
      97. The House bill and the Senate amendment are similar 
in that they do not allow additional assessment measures to 
take the place of those assessments required in paragraph (4) 
of the House bill or paragraph (3) of the Senate amendment. The 
House bill, but not the Senate amendment, further stipulates 
that such additional assessment measures shall not change the 
identification of schools pursuant to section 1116. See note 
67.
      SR with amendment to strike ``Results on . . . not 
included'' and insert: ``The use of such additional assessment 
measures may not be used to reduce the number or change which 
schools would otherwise be subject to school improvement, 
corrective action, or restructuring under section 1116 if such 
additional indicators were not used, but may be used to 
identify additional schools for school improvement or in need 
of corrective action or restructuring.''
      98. The House bill does not contain a similar provision.
      SR
      99. The House bill and the Senate amendment are 
substantially the same with the exception indicated in note 50 
regarding references to assessments.
      LC
      100. The Senate amendment, but not the House bill, refers 
to the development of English proficiency as appropriate to the 
factors listed. The Senate amendment, but not the House bill, 
refers to students served under this part or Title III of the 
Senate amendment with the stated exception. The House bill, but 
not the Senate amendment, refers to all LEP students in the 
State's schools.
      SR with amendment to strike paragraph (7) and replace 
with:
            ``(7) Academic Assessments of English Language 
        Proficiency.--Each State plan shall demonstrate that 
        local educational agencies in the State will, beginning 
        no later than school year 2002-2003, provide for an 
        annual assessment of English proficiency (measuring 
        students' oral language, reading, and writing skills in 
        English) for all students with limited English 
        proficiency in their schools, except that the Secretary 
        may provide the State 1 additional year if the State 
        demonstrates that exceptional or uncontrollable 
        circumstances, such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State, prevented full implementation 
        of this paragraph by that deadline and that it will 
        complete implementation within the additional 1-year 
        period.''
      Report language:
      ``This Act requires each State to provide for annual 
English language proficiency assessments (covering speaking, 
listening, reading and writing skills) by the beginning of the 
2002-2003 school year. The Conferees believe that additional 
scientifically-based research efforts must be made to develop 
better assessments to measure the progress of limited English 
proficient children in developing their English language 
proficiency, including speaking, listening, reading and writing 
skills. The Conferees encourage the Secretary to provide 
technical assistance to States, if requested, on the 
development and implementation of such assessments.''
      101. The House bill and the Senate amendment are the same 
with technical differences in cross-references.
      LC
      102. The Senate amendment does not contain a similar 
provision.
      SR
      103. The House bill does not contain a similar provision.
      HR
      104. The House bill does not contain a similar provision.
      HR with an amendment to strike ``how the . . . will 
develop or identify'' and insert ``an assurance that the SEA 
will assist LEAs in developing or identifying''.
      105. The House bill and the Senate amendment are 
substantially the same with the exception indicated in note 40 
regarding references to standards.
      LC
      106. The House bill does not contain a similar provision.
      SR
      107. The House bill does not contain a similar provision.
      HR with amendment:
            ``(8) Factors impacting student achievement.--Each 
        State plan shall include an assurance that the State 
        will coordinate and collaborate, to the extent feasible 
        and necessary as determined by the State, with agencies 
        providing services to children, youth, and families, 
        with respect to local educational agencies within the 
        State that are identified for improvement under section 
        1116 and that request assistance with addressing major 
        factors that have significantly impacted student 
        achievement at the local educational agency or at 
        schools in such agency.''
      108. The Senate amendment does not contain a similar 
provision. However, see the Senate amendment provision in 
subsection (f) of section 1111 regarding the provision of 
information.
      SR with amendment to strike ``the end'' and insert 
``before the beginning'' and insert ``next'' before ``school 
year'' and to strike ``(consistent with 1116''.
      109. The Senate amendment does not contain a similar 
provision.
      SR
      110. The Senate amendment does not contain a similar 
provision. However, see the Senate amendment provision in 
subsection (l) of section 1111. See note 172.
      HR
      111. The House bill and the Senate amendment are similar 
with the exception that the House bill refers to 2003--04 
school year, while the Senate amendment refers to the 2002--03 
school year, and with technical differences in cross-
references.
      HR with amendment
      ``(c) Other Provisions To Support Teaching and 
Learning.--Each State plan shall contain assurances that--
            ``(1) the State will meet the requirements of 
        subsection (j)(1) and, beginning with the 2002-2003 
        school year, will produce the annual State report cards 
        described in such subsection, except that the Secretary 
        may provide the State 1 additional year if the State 
        demonstrates that exceptional or uncontrollable 
        circumstances, such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State, prevented full implementation 
        of this paragraph by that deadline and that it will 
        complete implementation within the additional 1-year 
        period.''
      112. The House bill refers to ``academic'' assessments, 
while the Senate amendment refers to ``State'' assessments. The 
Senate amendment, but not the House bill, refers to the 
Secretary paying the costs of administration of these 
assessments and provides for an exception for states with fewer 
than .25% of the total number of poor, school-aged children in 
the U.S. The House bill, but not the Senate amendment, provides 
for an alternative assessment to NAEP.
      HR with amendment to strike ``annual'' and insert 
``biennial'' before ``State assessments of 4th and 8th'' and to 
insert ``academic'' after ``State'' and before ``assessments'' 
and to strike ``except that . . . basis.''
      113. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment, but not the House bill, refers to parental 
involvement under section 1118. In addition, there is a 
technical difference in cross-references regarding section 
1119.
      HR
      114. The House bill and the Senate amendment are the same 
with minor wording differences.
      LC
      115. The House bill and the Senate amendment are the same 
with minor wording differences.
      LC
      116. The House bill and the Senate amendment are the same 
with the exceptions indicated in notes 40 and 50 regarding 
references to standards and assessments.
      LC
      117. The House bill and the Senate amendment are the same 
with minor wording differences.
      LC
      118. The House bill and the Senate amendment are the same 
with minor wording differences.
      LC
      119. The House bill and the Senate amendment are the 
same.
      LC
      120. The House bill and the Senate amendment are the same 
with a minor wording difference.
      LC
      121. The House bill and the Senate amendment are the same 
with a technical difference in cross-references.
      LC
      122. The House bill and the Senate amendment are 
substantially similar with the following exceptions: (1) The 
House bill, but not the Senate amendment, refers to transfer 
authority under Title VII of the House bill; and (2) There is a 
technical differences in cross-references regarding waivers.
      SR
      LC--check cites for included programs.
      123. The House bill does not contain a similar provision.
      HR
      124. The Senate amendment does not contain a similar 
provision.
      SR
      125. The House bill does not contain a similar provision.
      The House bill and the Senate amendment are substantially 
the same through subparagraph (B) of the Senate amendment 
following. See the next note.
      HR with an amendment to insert in (d)(1) ``meeting the 
highest professional and technical standards'' after ``current 
research''.
      126. The House bill does not contain a similar provision.
      HR with an amendment to insert ``the needs of low-
performing schools'' after ``accountability,''
      127. The House bill and the Senate amendment are the same 
in the following provisions with the exception indicated in 
note 128 and those indicated in notes 40 and 50 regarding 
references to standards and assessments.
      LC
      128. The House bill does not contain a similar provision.
      HR
      129. The House bill does not contain a similar provision. 
However, see the House bill provision in subsection (b)(9) of 
section 1111 regarding the provision of information (note 108).
      The House bill and the Senate amendment are the same 
through paragraph (1). See the next note.
      SR
      130. The Senate amendment does not contain a similar 
provision.
      HR
      131. The House bill and the Senate amendment are 
substantially the same with the exceptions indicated in notes 
40 and 50 regarding references to standards and assessments.
      LC
      132. The House bill and the Senate amendment are similar 
with the exceptions that the House bill refers to a prohibition 
of Federal control, while the Senate amendment says that 
nothing in this part shall be construed to authorize Federal 
control, and with the differences indicated in notes 40 and 50 
regarding references to standards and assessments and other 
minor wording differences.
      HR with amendment (use same language agreed upon for 
Title IX).
      133. The House bill refers to those deadlines established 
by IASA of 1994 or those established under any waivers or 
compliance agreements with Secretary. The Senate amendment 
refers to ``statutory deadlines.'' The Senate amendment, but 
not the House bill, refers to standards aligned with 
assessments. The House bill, but not the Senate amendment, 
requires the Secretary to withhold 25% of the funds available 
to the State for administration and activities each year. The 
Senate amendment, but not the House bill, requires the 
Secretary to withhold an undefined amount of funds for State 
administration and activities under section 1117 and take such 
needed steps to assist State to reach compliance.
      SR with an amendment to insert ``under this part'' after 
``administration and activities''.
      134. The Senate amendment does not contain a similar 
provision.
      SR with amendment to insert ``,90 days after enactment of 
this Act,'' after ``The Secretary shall not''.
      135. The Senate amendment does not contain a similar 
provision. However, the Senate amendment does refer generally 
to ``statutory deadlines'' in subsection (i) previously. See 
note 133.
      SR with an amendment to insert ``under this part'' after 
``administration''.
      136. The House bill and the Senate amendment are similar 
through subparagraph (D) of each piece of legislation with the 
exception that the House bill requires the reports not later 
than the start of the 03-04 school year, while the Senate 
amendment requires the reports not later than the start of the 
02-03 school year.
      HR with an amendment to insert the following:
      ``(j) Reports.--
            ``(1) Annual State Report Card.--
                    ``(A) In general.--Not later than the 
                beginning of the 2002-2003 school year, unless 
                the State has received a one-year waiver 
                pursuant to subsection (c)(1), a State that 
                receives assistance under this Act shall 
                prepare and disseminate an annual State report 
                card.
                    ``(B) Implementation.--The State report 
                card shall be--
                            ``(i) concise; and
                            ``(ii) presented in an 
                        understandable and uniform format and, 
                        to the extent practicable, provided in 
                        a language that the parents can 
                        understand.''
      137. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill and the 
Senate amendment have different cross-references; and (2) The 
House bill, but not the Senate amendment contains an exception 
to the required disaggregation; however, the Senate amendment 
contains a similar exception in paragraph (2)(D). See note 156.
      HR/SR with an amendment to insert as new (D) and (E): 
(Notes 137-150)
                    ``(D) Required information.--The State 
                shall include in its annual State report card--
                            ``(i) information, in the 
                        aggregate, on student achievement at 
                        each proficiency level on the State 
                        academic assessments described in 
                        subsection (b)(4) (disaggregated by 
                        race, ethnicity, gender, disability 
                        status, migrant status, English 
                        proficiency, and status as economically 
                        disadvantaged, except that such 
                        disaggregation shall not be required in 
                        a case in which the number of students 
                        in a category is insufficient to yield 
                        statistically reliable information or 
                        the results would reveal individually 
                        identifiable information about an 
                        individual student);
                            ``(ii) information that provides a 
                        comparison between the actual 
                        achievement levels of each group of 
                        students described in subclauses (I) 
                        and (II) of subsection (b)(2)(C) to the 
                        State's annual numerical objectives for 
                        each such group of students on each of 
                        the assessments required under this 
                        part;
                            ``(iii) the percentage of students 
                        not tested (disaggregated by the same 
                        categories and subject to the same 
                        exception described in clause (i));
                            ``(iv) the most recent 2-year trend 
                        in student performance in each subject 
                        area, and for each grade level, for 
                        which assessments under section 1111 
                        are required;
                            ``(v) aggregate information on any 
                        other indicators used by the State to 
                        determine the adequate yearly progress 
                        of students in achieving State academic 
                        achievement standards;
                            ``(vi) graduation rates for 
                        secondary school students, consistent 
                        with 1111[(b)(2)(B)(vii)];
                            ``(vii) information on the 
                        performance of local educational 
                        agencies in the State regarding making 
                        adequate yearly progress, including the 
                        number and names of each school 
                        identified for school improvement, 
                        including schools identified under 
                        section 1116;
                            ``(viii) the professional 
                        qualifications of teachers in the 
                        aggregate, the percentage of teachers 
                        teaching with emergency or provisional 
                        credentials, and the percentage of 
                        classes not taught by highly qualified 
                        teachers (disaggregated by high poverty 
                        and low poverty schools which for 
                        purposes of this clause means schools 
                        in the top quartile of poverty and the 
                        bottom quartile of poverty) in the 
                        State;
                    ``(E) Permissive information.--The State 
                may include in its annual State report card 
                such other information as the State believes 
                will best provide parents, students, and other 
                members of the public with information 
                regarding the progress of each of the State's 
                public elementary schools and secondary 
                schools. Such information may include 
                information regarding--
                            ``(i) school attendance rates;
                            ``(ii) average class size in each 
                        grade;
                            ``(iii) academic achievement and 
                        gains in English proficiency of limited 
                        English proficient students;
                            ``(iv) the incidence of school 
                        violence, drug abuse, alcohol abuse, 
                        student suspensions, and student 
                        expulsions;
                            ``(v) the extent and type of 
                        parental involvement in the schools;
                            ``(vi) the percentage of students 
                        completing advanced placement courses, 
                        and the rate of passing of advanced 
                        placement tests;
                            ``(vii) a clear and concise 
                        description of the State's 
                        accountability system, including: a 
                        description of the criteria by which 
                        the State evaluates school performance, 
                        and the criteria that the State has 
                        established, consistent with (b)(2)(B), 
                        to determine the status of schools 
                        regarding school improvement, 
                        corrective action, and reconstitution; 
                        and
      Report Language:
      The Conferees intend that reporting of graduation rates 
described in clause (vi) shall be determined by reporting the 
percentage of students who graduate from high school with a 
regular diploma (not an alternative degree that may not be 
fully aligned with State academic standards, such as a 
certificate or GED), on time (within four years of starting the 
ninth grade for high schools that begin with the ninth grade or 
within the standard number of years for high schools that begin 
with another grade). The approach used to calculate graduation 
rates must also avoid counting dropouts as transfers. States 
that have or could have a more accurate longitudinal system 
that follows individual student progress through high school 
may use that system if approved by the Secretary as part of the 
State's Title I plan.
      The Conferees intend that in addition to reporting 
graduation rates for secondary schools that for those districts 
that define secondary school as including grades 6, 7 or 8, 
data should be reported on student progress from that entry 
grade level through twelfth grade with particular attention 
placed on the transition point between eighth and ninth grade.
      138. The Senate amendment does not contain a similar 
provision.
      HR/SR with an amendment; (See note 137).
      139. The House bill and the Senate amendment are the same 
with the exception to disaggregation indicated in note 137.
      HR/SR with an amendment; (See note 137).
      140. The House bill does not contain a similar provision.
      HR/SR with an amendment; (See note 137).
      141. The House bill does not contain a similar provision.
      HR/SR with an amendment; (See note 137).
      142. The House bill and the Senate amendment require 4-
year graduation rates, although the House bill requires the 
percentage of students who graduate, while the Senate amendment 
requires the average graduation rates. In addition, the Senate 
amendment, but not the House bill, requires the average 4-year 
school dropout rates disaggregated by the categories listed 
with an exception to the required disaggregation. See also note 
147.
      HR/SR with an amendment; (See note 137).
      143. The House bill does not contain a similar provision. 
However, see also the House bill provision in section 
1116(b)(6).
      HR/SR with an amendment; (See note 137). 
      144. The Senate amendment does not contain a similar 
provision.
      HR/SR with an amendment; (See note 137). 
      145. The House bill does not contain a similar provision.
      HR/SR with an amendment; (See note 137). 
      146. The House bill, but not the Senate amendment, 
requires the State aggregate of the qualifications of teachers. 
The House bill and the Senate amendment both require the 
percentage of teachers teaching with emergency or provisional 
qualifications, although the Senate amendment requires this 
information to be disaggregated by poverty. The Senate 
amendment refers to classes not taught by ``highly'' qualified 
teachers, while the House bill refers to classes not taught by 
``fully'' qualified teachers.
      HR/SR with an amendment; (See note 137). 
      147. The House bill and the Senate amendment allow for 
additional information. However, the House bill lists other 
possible categories of information, while the Senate amendment 
lists them in clauses (i) through (x) following in the Senate 
amendment. Also, the House bill allows dropout rates as an 
optional category, while the Senate amendment requires dropout 
rates in subparagraph (D)(v). See note 142.
      HR/SR with an amendment; (See note 137). 
      148. The Senate amendment provisions in clauses (i) and 
(ii) are similar to those listed in the House bill in clause 
(vii).
      HR/SR with an amendment; (See note 137). 
      149. The House bill does not contain the provisions 
listed in clauses (iii) through (x) of the Senate amendment 
following.
      HR/SR with an amendment; (See note 137). 
      150. The House bill, but not the Senate amendment, 
contains a provision requiring the State to annually report a 
description of its accountability system.
      HR/SR with an amendment; (See note 137). 
      151. The House bill does not contain a similar provision. 
However, see note 133 of the House bill's Title VIII, General 
Provisions.
      SR
      152. The House bill does not contain a similar provision.
      HR with an amendment to insert the following: 
            ``(2) Annual local educational agency report 
        cards.--
                    ``(A)(i) In general.--Not later than the 
                beginning of the 2002-2003 school year, a local 
                educational agency that receives assistance 
                under this Act shall prepare and disseminate an 
                annual local educational agency report card, 
                except that the State may provide the local 
                educational agency 1 additional year if the 
                local educational agency demonstrates that 
                exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources 
                of the local educational agency, prevented full 
                implementation of this paragraph by that 
                deadline and that it will complete 
                implementation within the additional 1-year 
                period.''
                 ``(ii) Special rule.--If a State has received 
                a waiver under subsection (c)(1), then a local 
                education agency within that State shall not be 
                required to include the information required 
                under paragraph (1)(D) in such report card 
                during the one year waiver period.''
      153. The House bill and the Senate amendment are 
substantially similar through subparagraph (B) of the House 
bill and subparagraph (C) of the Senate amendment with minor 
wording differences, the exception indicated in note 50 
regarding references to assessments, and the exceptions 
indicated in notes 154 and 155.
      LC
      154. The House bill refers to ``its schools students'', 
while the Senate amendment refers to ``students served by the 
local educational agency''.
      LC
      155. The House bill refers to ``its students'', while the 
Senate amendment refers to ``the school's students''.
      SR with an amendment to insert ``and other adequate 
yearly progress indicators'' after ``academic assessments''. 
      156. The House bill does not contain a similar provision, 
however, see note 137.
      HR
      157. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill requires the 
LEA report card to be publicly disseminated not later than the 
start of the 03-04 school year, while the Senate amendment 
requires the LEA report card to be publicly disseminated not 
later than the start of the 02-03 school year; and (2) The 
Senate amendment, but not the House bill, provides for an 
exception for LEAs already issuing a report card for all 
students.
      HR with an amendment to insert as new (E): 
                    ``(E) Public dissemination.--The local 
                educational agency shall, not later than the 
                beginning of the 2002-2003 school year, unless 
                the local educational agency has received a one 
                year waiver pursuant to section 1111(c)(2), 
                publicly disseminate the information described 
                in this paragraph to all schools in the school 
                district and to all parents of students 
                attending those schools in an understandable 
                and uniform format and, to the extent 
                practicable, provided in a language that the 
                parents can understand, and make the 
                information broadly available through public 
                means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may 
                include the information under this section as 
                part of such report.''
      158. The House bill and the Senate amendment are similar 
with the exception that the House bill references those report 
cards in existence prior to the enactment of H.R. 1.
      SR
      159. The House bill and the Senate amendment are 
substantially the same in paragraph (4) and subparagraph (A) of 
each piece of legislation with the following exceptions: (1) 
See note 50 regarding references to assessments; and (2) A 
technical difference in cross-references.
      HR/SR with amendment to strike paragraph (4) and insert 
as new (4):
            ``(4) Annual state report to the secretary.--Each 
        State receiving assistance under this Act shall report 
        annually to the Secretary, and publicly disseminate 
        within the State--
                    ``(A) beginning with school year [2001-
                2002], information on the State's progress in 
                developing and implementing the assessments 
                described in subsection (b)(3);
                    ``(B) beginning not later than school year 
                2002-2003, information on the achievement of 
                students on the assessments required by that 
                section, including the disaggregated results 
                for the categories of students identified in 
                subsection 1111(b)--[COMMENT: The reference 
                will be to the 6 categories agreed upon for 
                reporting: economically disadvantaged, racial/
                ethnic minority, disabled, LEP, gender, and 
                migrant]
                    ``(C) in any year before the State begins 
                to provide the information described in 
                subparagraph (B), information on the results of 
                student assessments (including disaggregated 
                results) required under this section.
                    ``(D) beginning not later than school year 
                2002-2003, unless the State has received a 
                waiver pursuant to section 1111(c)(1), 
                information on the acquisition of English 
                proficiency by children with limited English 
                proficiency;
                    ``(E) the number and names of each school 
                identified for school improvement, including 
                schools identified under section 1116(c), the 
                reason why each school was so identified, and 
                the measures taken to address the performance 
                problems of such schools;
                    ``(F) the number of students and schools 
                that participated in public school choice and 
                supplemental service programs and activities 
                under this title.
                    ``(G) beginning not later than the 2002-
                2003 school year, information on the quality of 
                teachers and the percentage of classes being 
                taught by highly qualified teachers as defined 
                in [section], in the State, LEA, and school 
                consistent with subparagraph (D)(7) (see note 
                137).''
      160. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) See 
note 50 regarding references to assessments; and (2) The 
categories of students referenced in each bill are different. 
See note 63.
      HR/SR with an amendment; (See note 159).
      161. The Senate amendment does not contain a similar 
provision.
      HR/SR with an amendment; (See note 159).
      162. The House bill contains a similar provision in 
section 1116 (b)(6) (see note 300). The House bill refers to a 
report not less than once a year, while the Senate amendment 
refers to an annual report. The Senate amendment refers to each 
State receiving assistance under this Act, while the House bill 
refers to each SEA. The House bill and the Senate amendment 
refer to the names of schools identified for school 
improvement, although the Senate amendment contains a specific 
cross-reference to section 1116. The Senate amendment, but not 
the House bill, refers to the number of schools identified for 
school improvement, the reason for such identification, and the 
measures taken to address the school's performance problems.
      HR/SR with an amendment; (See note 159).
      163. The House bill and the Senate amendment are 
substantially the same except for difference indicated in note 
50 regarding references to assessments.
      HR/SR with an amendment; (See note 159).
      164. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) The 
House bill, but not the Senate amendment, requires that 
parental notification be provided at the beginning of the 
school year; and (2) The House bill, but not the Senate 
amendment, requires LEAs to provide information to requesting 
parents in a timely manner.
      SR
      165. The House bill and the Senate amendment provisions 
are the same in clauses (i) through (iv) following each piece 
of legislation, with a minor wording difference in clause (iv).
      LC
      166. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill, 
but not the Senate amendment, refers to additional information 
beyond that described in subparagraph (A).
      LC
      167. The Senate amendment does not contain a similar 
provision.
      SR
      168. The House bill, but not the Senate amendment, 
requires the information be provided to parents in an 
understandable language to the extent practicable.
      SR (LC all other references to providing information to 
parents in an understandable and uniform format and, to the 
extent practicable, provided in a language that the parents can 
understand)
      169. The Senate amendment does not contain a similar 
provision.
      SR
      170. The House bill does not contain a similar provision.
      HR with an amendment to move the following language after 
note 163 and before paragraph (5) and redesignate sections 
according:
            ``(5) Report to congress.--The Secretary shall 
        transmit annually to [Standard name for House and 
        Senate education committees] a report that provides 
        national and state level data on the information 
        collected under (4).''
      171. The House bill and the Senate amendment are the 
same.
      LC
      172. The House bill does not contain a similar provision. 
However, see also the House bill provision in subsection 
(b)(10) of section 1111. See note 110.
      HR
      173. The House bill does not contain a similar provision.
      HR
      174. The Senate amendment does not contain a similar 
provision.
      SR with amendment to add a new subsection at end of 
section 1111 and before section 1112:
      (#--LC) ``In General.--Nothing in this part shall 
prescribe the use of the assessments described under this part 
for student promotion or graduation purposes.''
      175. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill, 
but not the Senate amendment, refers to the Homeless Act.
      SR
      176. The House bill and the Senate amendment are 
substantially the same with the exception of a technical 
difference in cross-references.
      LC
      177. The House bill, but not the Senate amendment, makes 
a number of changes to current law. The Senate amendment 
retains current law unchanged through subparagraph (C).
      SR with an amendment to strike (b)(1) and insert the 
following:
            ``(1) a description of high-quality student 
        academic assessments, if any, that are in addition to 
        the academic assessments described in the State plan 
        under section 1111(b)(3), that the local educational 
        agency and schools served under this part will use to--
        ''
      178. The Senate amendment, but not the House bill, 
contains this subparagraph regarding first grade student 
literacy and related interventions and assessments.
      HR with an amendment to insert as new (D):
                    ``(D) effectively identify students who may 
                be at risk for reading failure or who are 
                having difficulty reading through the use of 
                screening, diagnostic, and classroom-based 
                instructional reading assessments, as defined 
                under section 1209 of this title.''
      179. The House bill, but not the Senate amendment, makes 
a number of changes to current law. The Senate amendment 
retains current law unchanged to subparagraph (B).
      SR with an amendment to strike paragraph (2) and insert:
            ``(2) at the local educational agency's discretion, 
        a description of other academic indicators, if any, 
        that will be used in addition to the academic 
        assessments described in paragraph (1) for the uses 
        described in such paragraph;''
      180. The Senate amendment does not contain a similar 
provision.
      SR
      181. The House bill and the Senate amendment are similar 
with the exception that the Senate amendment refers to 
coordination with Title II of the Senate bill if a LEA receives 
funds under such title.
      SR with an amendment on coordination with Title II and 
adding `` and principals'' after ``teachers''.
      182. The Senate amendment makes a technical change to 
current law regarding the wording of ``vocational programs''. 
Both the House bill and the Senate amendment strike ``school-
to-work transition programs''.
      SR with an amendment to insert ``vocational''.
      183. The House bill and the Senate amendment strike the 
same language with the exception that the House bill, but not 
the Senate amendment retains ``served under part C'' after 
``migratory children''.
      SR with and amendment inserting ``children with 
disabilities'' after ``proficiency,''; strike ``or with 
disabilities''; and strike ``served under part C,''.
      184. The Senate amendment, which retains current law to 
paragraph (9), does not contain this provision regarding LEA 
participation in NAEP or an alternative assessment if selected.
      SR with amendment to strike ``or in another . . . section 
7101(b)(1)(B)(ii)'' in paragraph (6).
      185. The House bill and the Senate amendment are 
generally similar. However, the House bill refers to 
``preschool programs for children'' and lists a number of such 
programs and services, while the Senate amendment refers to 
``early childhood education programs under section 1120B''.
      SR
      186. The House bill refers to LEA actions to assist 
schools in school improvement, while the Senate amendment 
refers to LEA determinations of factors impacting student 
achievement at schools in school improvement or corrective 
action.
      SR
      187. The Senate amendment does not contain paragraphs 
(13) through (15) of the House bill.
      SR with an amendment to insert as new (13), (14), and 
(15):
            ``(13) a description of the actions the local 
        educational agency will take to implement public school 
        choice and supplemental services, consistent with the 
        requirements of section 1116;
            ``(14) a description how the local educational 
        agency will meet the requirements of section 1119; and
            ``(15) a description of the services the local 
        educational agency will provide homeless children, 
        including services provided with funds reserved under 
        section 1113(f)(3)(A).''
      188. The House bill does not contain paragraphs (10) and 
(12) of the Senate amendment.
      HR with an amendment to insert ``after school (including 
before school and summer school) and'' after ``this part to 
support'' and with amendment to insert new paragraph:
      ``(#--LC) The academic assessments and indicators 
described in paragraphs (1) and (2) shall not be used in lieu 
of the academic assessments required under section 1111[(b)(4)] 
and other State academic indicators under section 1111[(b)(2)]. 
In addition, the use of the assessments and indicators 
described in paragraphs (1) and (2) may not be used to reduce 
the number or change which schools would otherwise be subject 
to school improvement, corrective action, or restructuring 
under section 1116, if such additional assessments or 
indicators described in paragraphs (1) and (2) were not used, 
but such assessments and indicators may be used to identify 
additional schools for school improvement or in need of 
corrective action or restructuring.''
      189. The House bill and the Senate amendment are the 
same.
      LC
      190. The House bill, but not the Senate amendment, refers 
to the ability of schools to consolidate funds from the 
entities listed. The Senate amendment refers to schoolwide 
projects while the House bill refers to school wide programs.
      SR
      191. See note 40 regarding references to standards.
      LC
      192. The House bill and the Senate amendment are 
substantially the same with a technical difference in cross-
references.
      LC
      193. The House bill and the Senate amendment are the 
same.
      LC
      194. The House bill, but not the Senate amendment refers 
to ``scientifically based'' research.
      SR
      195. The Senate amendment does not contain a similar 
provision.
      SR
      196. The House bill does not contain the Senate amendment 
provisions in paragraph (5).
      HR
      197. The House bill requires compliance with section 1119 
relating to teacher and paraprofessional qualifications, while 
the Senate amendment requires compliance with section 1119 
relating to professional development.
      SR with an amendment to insert ``and professional 
development'' after ``paraprofessionals''.
      198. The House bill and the Senate amendment are 
substantially the same with a technical difference in cross-
references.
      LC
      199. The House bill and the Senate amendment are 
substantially the same, except the Senate amendment, but not 
the House bill, refers to ``health and social services''.
      HR with amendment:
            ``(6) coordinate, and collaborate, to the extent 
        feasible and necessary as determined by the local 
        educational agency, with the state and other agencies 
        providing service to children, youth, and families with 
        respect to schools in school improvement, corrective 
        action, or restructuring under section 1116 that 
        request assistance from the local educational agency 
        with addressing major factors that have significantly 
        impacted student achievement at the school.''
      200. The House bill does not contain the following Senate 
provisions in paragraphs (11) through (14).
      HR with amendment to strike ``10 years'' and insert ``12 
years'' and to strike ``of the date . . . Act'' and insert 
``the end of the 2001-2002 school year'' in paragraph (12), to 
conform parental information in paragraph (13) with note #168, 
and to strike paragraph (14) and insert the following:
            ``(14) assist each school served by the agency and 
        assisted under this part in developing or identifying 
        models of high quality, effective curriculum models 
        consistent with section 1111(b)(6)(C).''
      201. The House bill, but not the Senate amendment, makes 
a number of changes to current law in paragraphs (d)(1) and 
(2). The Senate amendment retains current law unchanged to 
subsection (e).
      SR with an amendment to strike ``academic achievement 
standards'' and insert ``Performance Standards'' after ``Head 
Start'' in subparagraph (B).
      202. The House bill and the Senate provision are the 
same.
      LC
      203. The House bill and the Senate amendment are similar 
in retaining current law with the exception that the House 
bill, but not the Senate amendment, modifies the organization 
of paragraph (2) and adds a new subparagraph (B).
      SR
      204. The House bill does not retain paragraph (3) of 
current law which the Senate amendment retains and modifies.
      HR
      205. The House bill and the Senate amendment retain 
current law with no changes.
      LC
      206. The Senate amendment does not contain this provision 
regarding parental notification and consent for English 
language instruction of the House bill.
      SR with amendment to strike subsection (g) and insert the 
following as new subsection (g):
      ``(g) Parental Notification.--
      ``(a) In General.--(1) Each eligible entity using funds 
under this title to provide high-quality language instruction 
educational programs shall inform a parent or parents of a 
child participating in such a program of--
            ``(A) the reasons for the identification of their 
        child as limited English proficient and being in need 
        of placement in a language instruction educational 
        program;
            ``(B) the child's level of English proficiency, how 
        such level was assessed, and the status of the child's 
        academic achievement;
            ``(C) the program and methods of instruction 
        available, including how such programs differ in 
        content, instructional goals, and use of English and a 
        native language in instruction;
            ``(D) how the language instruction educational 
        program will meet the educational strengths and needs 
        of their child;
            ``(E) how such language instruction program will 
        specifically help the child acquire English, and meet 
        age appropriate academic achievement standards for 
        grade promotion and graduation;
            ``(F) the specific exit requirements for the 
        program, including the expected rate of transition from 
        the program into classrooms that are not tailored for 
        limited English proficient students, and the expected 
        rate of graduation from high school for the program if 
        funds under this title are used for children in 
        secondary schools;
            ``(G) in the case of a student with a disability 
        who participates in an English language instruction 
        educational program, how the program meets the 
        objectives of the individualized education program of 
        the student;
            ``(H) the entity's failure to make progress on the 
        annual measurable achievement objectives in section 
        3329(a), if applicable. Such notice shall be sent in 
        addition to the parental notification of their child as 
        in need of participation in a language instruction 
        educational program.
            ``(I) information pertaining to parental rights, 
        that includes written guidance--
                    ``(i) detailing the options that parents 
                have to remove their child in an language 
                instruction educational program, and shall give 
                parents an opportunity to decline such 
                enrollment, and the right to have their child 
                immediately removed from a specialized language 
                instruction program upon their request; and
                    ``(ii) assisting parents in selecting among 
                various programs and methods of instruction, if 
                more than one program or method is offered by 
                the eligible entity.
      ``(b) Receipt of Information.--The notice and information 
provided in subsection (a) to a parent or parents of a child 
identified for participation in a language instruction 
educational program for limited English proficient children 
shall be in an understandable and uniform format and, to the 
extent practicable, provided in a language that the parents can 
understand.
      ``(c) Special Rule Applicable During the School Year.--
For those children who have not been identified as limited 
English proficient prior to the beginning of the school year 
the eligible entity shall notify parents within the first two 
weeks of the child being placed in a language instruction 
educational program consistent with subsections (a) and (b).
      ``(d) Parental Participation.--Each eligible entity using 
funds under this title shall implement an effective means of 
outreach to parents of limited English proficient students to 
inform parents of how they can be involved in the education of 
their children, and be active participants in assisting their 
children to attain English and achieve at high levels in core 
academic subjects and meet challenging state academic 
achievement standards and state academic content standards 
expected of all students, including holding and sending notice 
of opportunities for regular meetings for the purpose of 
formulating and responding to recommendations from parents of 
students assisted under this title.
      ``(e) Basis for Admission or Exclusion.--A student shall 
not be admitted to, or excluded from, any federally assisted 
education program on the basis of a surname or language-
minority status.''
      207. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      208. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      209. The House bill and the Senate amendment are 
substantially similar with minor differences in wording and a 
difference in the cross-reference (the House bill refers to the 
subsection regarding Ranking Order and the Senate amendment 
refers to Eligible School Attendance Areas).
      LC
      210. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      211. The House bill, but not the Senate amendment, makes 
a number of changes to current law in subsection (b) regarding 
the rank order of funds and by adding a new paragraph (3) 
regarding elementary schools. Otherwise, the House bill retains 
current law with minor changes through paragraph (c)(1). The 
Senate amendment retains current law unchanged through 
paragraph (c)(1).
      HR
      212. The House bill adds a paragraph (2) regarding 
equitable service to private school students. The Senate 
amendment contains the same provision in section 1120A. See 
note 488.
      HR
      213. The House bill, but not the Senate amendment, makes 
a change to current law regarding the total enrollment. The 
Senate amendment retains current law unchanged through 
subsection (e).
      HR
      214. The House bill, but not the Senate amendment, makes 
a number of minor, technical changes to current law. The Senate 
amendment retains current law unchanged through subparagraph 
(f)(3)(C).
      LC
      215. The Senate amendment does not contain the provisions 
in paragraphs (4) and (5) of the House bill regarding school 
improvement reservation and financial incentives and rewards 
reservation.
      SR with an amendment to insert ``from the amount (if any) 
by which the funds received by the LEA under this part for a 
fiscal year exceed the amount received by the LEA under this 
part for the preceding fiscal year,'' after ``necessary'' in 
paragraph (4) and to insert ``from those funds received by the 
LEA under Title II and up to 5% of those funds received by the 
LEA'' after ``necessary'' in paragraph (5).
      216. The Senate amendment does not contain similar 
provisions.
      HR
      217. The House bill and the Senate amendment are similar 
with the following exceptions: 1) The House bill refers to a 
LEA that ``may consolidate'' funds, while the Senate amendment 
refers to a LEA that ``may use'' funds; and 2) The Senate 
amendment, but not the House bill, refers to the ``initial year 
of the schoolwide program''.
      SR with an amendment to insert ``and use'' after 
``consolidate''.
      218. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      219. The House bill and the Senate amendment are the 
same.
      LC
      220. The House bill, but not the Senate amendment, makes 
a number of changes to current law regarding an exception to 
IDEA in subparagraph (A) and the list of requirements in 
subparagraph (B). The Senate amendment retains current law 
unchanged through subparagraph (B).
      SR with an amendment to add ``comparability of services'' 
after ``maintenance of effort'' in subparagraph (B).
      221. The House bill and the Senate amendment are 
substantially similar with the following exceptions: 1) The 
House bill refers to ``consolidate'' funds, while the Senate 
amendment refers to ``use'' funds; and 2) Minor wording 
differences.
      SR with an amendment to insert ``and uses'' after 
``consolidates''.
      222. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      223. The House bill, but not the Senate amendment, makes 
a number of changes to current law regarding the addition of 
migratory children in subparagraph (A), omitting current law 
clause (iii) in schoolwide reform strategies, referring to 
``scientifically based research'' in clause (ii), adding 
subclause (I), referencing standards and low-achieving in 
subclause (I) of clause (iii), and omitting specific examples 
contained in current law subclause (I) of clause (iiii). The 
Senate amendment retains current law unchanged.
      SR with an amendment to insert the following (rewrite of 
whole subsection):
      ``(c) Components of a Schoolwide Program.--
            ``(1) In general.--A schoolwide program shall 
        include the following components:
                    ``(A) A comprehensive needs assessment of 
                the entire school (including taking into 
                account the needs of migratory children as 
                defined in section 1309(2)) that is based on 
                information which includes the performance of 
                children in relation to the State academic 
                content standards and the State student 
                academic achievement standards described in 
                section 1111(b)(1).
                    ``(B) Schoolwide reform strategies that--
                            ``(i) provide opportunities for all 
                        children to meet the State's proficient 
                        and advanced levels of student 
                        achievement described in section 
                        1111(b)(1)(D);
                            ``(ii) use effective methods and 
                        instructional strategies that are based 
                        upon scientifically based research 
                        that--
                                    ``(I) strengthen the core 
                                academic program in the school;
                                    ``(II) increase the amount 
                                and quality of learning time, 
                                such as providing an extended 
                                school year and before- and 
                                after-school and summer 
                                programs and opportunities, and 
                                help provide an enriched and 
                                accelerated curriculum; and
                                    ``(III) include strategies 
                                for meeting the educational 
                                needs of historically 
                                underserved populations;
                            ``(iii)(I) include strategies to 
                        address the needs of all children in 
                        the school, but particularly the needs 
                        of low-achieving children and those at 
                        risk of not meeting the State student 
                        academic achievement standards who are 
                        members of the target population of any 
                        program that is included in the 
                        schoolwide program, which may include--
                                    ``(aa) counseling, pupil 
                                services, and mentoring 
                                services;
                                    ``(bb) college and career 
                                awareness and preparation, such 
                                as college and career guidance, 
                                personal finance education, and 
                                innovative teaching methods 
                                which may include applied 
                                learning and team teaching 
                                strategies; and
                                    ``(cc) the integration of 
                                vocational and technical 
                                education programs; and
                            ``(II) address how the school will 
                        determine if such needs have been met; 
                        and''
      224. The House bill does not contain a similar provision, 
although the House bill also strikes the reference to Goals 
2000 as does the Senate amendment in clause (i).
      LC
      225. The House bill, but not the Senate amendment, makes 
a number of changes to current law regarding teachers in 
subparagraph (C), professional development in subparagraph (D), 
and by adding subparagraph (E). The Senate amendment retains 
current law unchanged through subparagraph (D).
      SR with an amendment to insert ``principals,'' after 
``teachers,'' in (D); and strike ``such as . . . pay'' in (E).
      Report language:
      ``The Conferees believe that teacher recruitment 
strategies will be most effective if they succeed in attracting 
highly qualified teachers and subsequently retaining those 
teachers. Such strategies can include differential pay and 
merit based pay, as well as other services such as teacher 
advancement initiatives that promote professional growth and 
multiple career paths, pre-service internships, high quality 
professional development, effective mentoring, and ongoing, 
comprehensive evaluations of teachers' knowledge and 
abilities.''
      226. The Senate amendment, but not the House bill, refers 
to a list of activities beyond family literacy services.
      SR
      227. The House bill, but not the Senate amendment, makes 
a number of changes to current law regarding the listed 
programs in subparagraph (G), cross-references in subparagraph 
(H), referring to proficiency in subparagraph (I), and omitting 
clauses (ii) and (iii) of subparagraph (H) of current law. The 
Senate amendment retains current law unchanged through 
subparagraph (H).
      SR
      228. The House bill does not contain a similar provision.
      HR with an amendment to insert ``vocational and technical 
education'' before ``job training''.
      229. The House bill and the Senate amendment refer to the 
title of each piece of legislation. In addition, the House 
bill, but not the Senate amendment, makes changes to current 
law by omitting consultation requirements in paragraph (2), 
omitting clause (iv) through subparagraph (2)(B) of current 
law. The Senate amendment retains current law unchanged through 
subparagraph (C).
      SR with an amendment to insert ``, in consultation with 
the local educational agency and its school support team or 
other technical assistance provider under section 1117,'' in 
paragraph (2) before ``, a comprehensive plan'' and to strike 
in (2)(A) ``incorporates'' and insert ``describes how the 
school will implement''.
      230. The House bill does not contain this provision.
      HR with an amendment to retain current law clause (iv) as 
subparagraph (D) and to conform parental information in that 
subparagraph with note #168.
      231. The House bill does not contain this provision.
      SR
      232. The House bill, but not the Senate amendment, makes 
changes to current law by omitting the requirement to consider 
recommendations of technical assistance providers in clause 
(i). The Senate amendment retains current law.
      HR
      233. The House bill and the Senate amendment refer to the 
title of each piece of legislation. In addition, the House 
bill, but not the Senate amendment, makes a number of changes 
to current law by changing the plan requirements in clause 
(ii), adding to the involvement requirements in subparagraph 
(B), and by changing the availability requirements in 
subparagraph (D). The Senate amendment retains current law 
through subparagraph (D).
      SR with an amendment to conform parental information with 
note #168.
      234. Both the House bill and the Senate amendment strike 
the reference to the School-to-Work Act. In addition, the House 
bill, but not the Senate amendment, makes a change to current 
law by changing the list of programs to coordinate with. The 
Senate amendment retains current law.
      SR
      235. The House bill and the Senate amendment retain 
current law with no substantive changes regarding the 
Accountability provision.
      LC
      236. The Senate amendment does not contain similar 
provisions.
      SR
      237. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      238. The House bill and the Senate amendment are 
substantially the same.
      LC
      239. The House bill, but not the Senate amendment, makes 
a number of changes to current law by changing references to 
standards and assessments in subparagraph (B) and changing the 
list of included children in clause (i) of subparagraph (A). 
The Senate amendment retains current law unchanged through 
paragraph (2).
      HR (LC--academic achievement).
      240. The Senate amendment refers to early childhood 
education services under this title, while the House bill 
refers to preschool services under this title and adds a 
reference to Early Reading First.
      SR
      241. The House bill and the Senate amendment strike the 
reference to part D (of Title I) and its predecessor authority. 
The House bill, but not the Senate amendment, changes the 
reference from part (D) (Neglected and Delinquent education) to 
part (C) (Migrant education). The House bill, but not the 
Senate amendment, changes to current law. The Senate amendment 
retains current law.
      SR
      242. The House bill clarifies that these 2 groups of 
children are eligible, not possibly eligible as under current 
law. The Senate retains current law through subparagraph (D).
      SR
      243. The House bill, but not the Senate amendment, makes 
a number of changes to current law by changing references to 
standards in paragraph (1) and subparagraph (A), omitting 
subparagraph (B) of current law, changing subparagraph (3), 
replacing current law subparagraph (E) with subparagraph (D) of 
the House bill, and changing the teacher references in 
subparagraph (E). The Senate amendment retains current law 
unchanged through subparagraph (G).
      SR/LC conform ``highly qualified teacher'' in this note.
      244. The House bill, but not the Senate amendment, 
references subsection (e)(3) and section 1119A. The Senate 
amendment, but not the House bill, refers to 
``paraprofessionals'' and ``parents''. The House bill, but not 
the Senate amendment, conditions the provision of opportunities 
for professional development for ``pupil services personnel''.
      SR with an amendment to strike ``, for teachers . . . 
pupil services personnel,'' and replace with ``, for teachers, 
principals and paraprofessionals, including, if appropriate, 
pupil services personnel, parents, and other staff''.
      245. The House bill and the Senate amendment reference 
section 1118 of Title I, part A of each piece of legislation 
and ``family literacy services.'' However, the Senate 
amendment, but not the House bill, adds after family literacy 
services a list of additional options.
      SR
      246. The House bill contains a generally similar 
provision in subsection (c)(2)(A). See note 248.
      HR with an amendment to insert ``vocational and technical 
education''.
      247. The House bill and the Senate amendment retain 
current law with no substantive changes.
      SR (Note 181)
      248. The Senate amendment contains a generally similar 
provision in subparagraph (I) following. See note 246. The 
House bill, but not the Senate amendment, makes a change to 
current law by omitting the reference to standards in current 
law. The Senate amendment retains current law.
      SR
      249. The House bill, but not the Senate amendment, makes 
a number of changes to current law by changing the reference to 
standards in subparagraph (B), changing the section heading in 
subsection (d), omitting the reference to children served under 
this part in subsection (d), omitting paragraphs (1) and (3) of 
subsection (d) of current law, changing subparagraph (2) list 
of services, and omitting subparagraph (B) of paragraph (2) of 
current law. The Senate amendment retains current law.
      SR with an amendment to retain current law 1115(d)(1); to 
strike ``medical'' and insert ``health'' in paragraph (2) and 
to insert current law subparagraph (e)(2)(B) as subparagraph 
(e)(2)(C).
      250. The House bill, but not the Senate amendment, makes 
a number of changes to current law by referencing public 
schools throughout, changing the plan provisions in subsection 
(b), replacing paragraph (5) of current law with paragraph (2) 
of the House bill and modifying the list of required 
participants, replacing paragraph (6) of current law with 
paragraph (4) and omitting paragraphs (2)-(4) and (7)-(9) of 
current law.
      HR/SR to eliminate from current law.
      251. The House bill does not contain a similar section. 
However, pupil safety and school choice activities are an 
authorized use of funds under section 5115 (b)(2)(P) of the 
House bill. See Title V of the House bill.
      SR
      252. The House bill and the Senate amendment have 
different section headings. The House bill adds the word 
``academic'' before assessment, which is consistent throughout 
this part. See note 50.
      LC
      253. The House bill and the Senate amendment are similar 
with the following exceptions: (1) There is a difference in 
cross-references to the adequate yearly progress provisions in 
each piece of legislation; (2) The Senate amendment, but not 
the House bill, requires LEAs to use State assessments and 
additional measures described in their plan to determine if 
adequate yearly progress is being met; the House bill, but not 
the Senate amendment, requires the use of State assessments to 
determine if adequate yearly progress is being met; and (3) The 
Senate amendment, but not the House bill, refers to enabling 
students to meet the State standards.
      SR with amendment to strike paragraph (1) and insert the 
following and redesignate subsequent paragraphs accordingly:
            ``(1) use the State academic assessments and other 
        academic indicators described in the State plan to 
        review annually the progress of each school served 
        under this part to determine whether the school is 
        making adequate yearly progress as defined in section 
        [1111(b)(2)(B)]; and
            ``(2) at the local education agency's discretion, 
        use any academic assessments or any other academic 
        indicators described in the local educational agency's 
        plan under section [1112(b)(1) and (2)] to review 
        annually the progress of each school served under this 
        part to determine whether the school is making adequate 
        yearly progress as defined in section [1111(b)(2)(B)], 
        except the use of such additional assessments or 
        indicators may not be used to reduce the number or 
        change which schools would otherwise be subject to 
        school improvement, corrective action, or restructuring 
        under section 1116 if such additional assessments or 
        indicators were not used, but may be used to identify 
        additional schools for school improvement or in need of 
        corrective action or restructuring.''
      254. The House bill refers to publication and 
dissemination of results, while the Senate amendment refers to 
the provision of results. The Senate amendment, but not the 
House bill, adds the word ``local'' before ``annual review''. 
The House bill has a different list of recipients than the 
Senate amendment. The Senate amendment, but not the House bill, 
describes how the results are to be provided and what they are 
to be used for.
      HR/SR with an amendment to merge the language of both.
      255. The House bill and the Senate amendment are similar, 
with the following exceptions: (1) The House bill contains a 
general reference to parental involvement under the Act, while 
the Senate amendment refers to specific parental involvement 
under section 1118; and (2) The Senate amendment, but not the 
House bill, refers to professional development under section 
1119 and ``other activities'' under the Act.
      SR with an amendment to insert ``professional 
development, and other activities'' after ``parental 
involvement,'' in (3).
      256. The House bill does not contain a similar provision.
      SR
      257. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The Senate amendment, but 
not the House bill, conditions the LEA requirements on 
subparagraph (B) following, although subsection (b)(1)(C) of 
the House bill is similar; see note 260; and (2) There is a 
difference in cross-references to the adequate yearly progress 
provisions in each piece of legislation.
      HR with amendment to strike ``for any year'' and insert 
``for two consecutive years''
      258. The Senate amendment contains a similar provision 
which is located in subsection (b)(12)(A)(i). See note 331 for 
differences.
      HR
      259. The Senate amendment does not contain a similar 
provision.
      SR with amendment to strike ``first day'' and insert 
``beginning'' and to insert ``next'' before ``school year''.
      260. The House bill and the Senate amendment are similar 
with the exceptions that the House bill refers to ``advanced'' 
achievement and the Senate amendment refers to ``proficient 
level of performance'', and there is a technical difference in 
cross-references.
      HR
      261. The House bill and the Senate amendment are the 
same.
      LC
      262. The Senate amendment contains a similar provision in 
subsection (b)(5). See notes 290, 291 and 292 for differences.
      SR with amendment to add at the end: ``In providing 
students the option to transfer to another public school, the 
local educational agency shall give priority to the lowest-
achieving children from low-income families, as determined by 
the local educational agency for purposes of allocating funds 
to schools under section 1113(c)(1).''
      263. The Senate amendment does not contain a similar 
provision.
      SR
      264. The House bill and the Senate amendment are the same 
with the exception that the House bill refers to 
``restructuring'' while the Senate amendment refers to 
``reconstitution''.
      SR
      265. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill, 
but not the Senate amendment, allows for supporting evidence to 
be provided to contest an identification if a majority of 
parents believe the identification was in error.
      SR
      Report language:
      ``The Conferees urge that, in providing the opportunity 
for review under paragraph (2) and before identifying a school 
for school improvement, corrective action, or restructuring, 
SEAs should provide to LEAs, and the LEAs shall make available 
to school officials, teachers, parents, and other interested 
parties, information on the statistical accuracy of the 
assessment and the data produced in a language and format that 
is likely to be accessible and understandable to all parties, 
in order to allow such individuals to make an informed judgment 
about the accuracy of the identification for improvement of a 
school.''
      266. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill, but not the 
Senate amendment, refers to an LEA providing a school with the 
opportunity to review school level data; and (2) The Senate 
amendment, but not the House bill, refers to an LEA making an 
initial determination under the paragraphs listed.
      SR
      267. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill, 
but not the Senate amendment, conditions the LEA requirements 
on the resolution of the review previously described in 
paragraph (2).
      SR
      268. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment, but not the House bill, allows for the inclusion of 
a comprehensive school reform model meeting the requirements of 
section 1706(a).
      HR
      269. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill and the 
Senate amendment reference different categories of students 
(see note 63); (2) There is a technical difference in cross-
references to assessment provisions; and (3) The House bill and 
the Senate amendment differ in the title of each piece of 
legislation.
      HR/SR with amendment to strike ``10 years'' and insert 
``12 years'' and to strike ``after the date . . . 2001'' and 
insert ``of the end of the 2001--2002 school year''
      270. The House bill and the Senate amendment are the 
same.
      LC
      271. The House bill and the Senate amendment are the 
same.
      LC
      272. The House bill and the Senate amendment are the same 
with a technical difference in cross-references.
      LC
      273. The Senate amendment does not contain a similar 
provision.
      SR
      274. The House bill and the Senate amendment are the 
same.
      LC
      275. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill and the 
Senate amendment reference different categories of students 
(see note 63); (2) There is a technical difference in cross-
references to assessment provisions; (3) The House bill and the 
Senate amendment differ in the title of each piece of 
legislation; (4) The House bill refers to ``measurable'' goals, 
while the Senate amendment refers to ``objective'' goals; and 
(5) The Senate amendment, but not the House bill, refers to 
students making ``continuous and significant progress''.
      SR w/amendment to insert ``objective'' after 
``measurable'', to insert ``consistent with adequate yearly 
progress as defined under section 1111 (b)'' and to strike ``10 
years'' and insert ``12 years'' and to strike ``after the date 
. . . 2001'' and insert ``of the end of the 2001--2002 school 
year''
      276. The House bill and the Senate amendment are the 
same.
      LC
      277. The House bill and the Senate amendment are the 
same.
      LC and after ``(4)'' insert ``and the local educational 
agency's responsibilities under section 1120A.''
      278. The House bill does not contain a similar provision.
      HR
      279. The Senate amendment does not contain similar 
provisions.
      SR with an amendment to strike ``extended learning time 
for students, such as'' and insert ``activities'' after 
``year'' in clause (viii) and to strike clause (ix) and insert 
``(ix) incorporate a teacher mentoring program.''
      Report Language:
      Successful mentoring programs pair beginning and veteran 
teachers with an exemplary teacher who has expertise in the 
same subject matter as the teachers who are mentored. Mentoring 
programs are usually school-based and include activities such 
as observing and coaching the teachers who are mentored.
      280. The House bill and the Senate amendment are the same 
with a technical difference in cross-references.
      LC
      281. The Senate amendment does not contain a similar 
provision.
      SR
      282. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill, but not the 
Senate amendment, provides for an exception to the requirement 
described in subparagraph (D) of the House bill following; and 
(2) The House bill refers to the school year following the 
school year in which the school failed to make adequate yearly 
progress, while the Senate amendment refers to the school year 
following the school year in which the school was identified.
      HR with amendment to insert ``Except as provided in 
subparagraph [(D)],'' before ``A school shall''
      283. The Senate amendment does not contain a similar 
provision.
      SR
      284. The Senate amendment, but not the House bill, 
requires the LEA to act 45 days after receiving a school plan.
      HR
      285. The House bill and the Senate amendment are the same 
in the clauses (i) and (ii) of each piece of legislation.
      LC
      Report language:
      ``The Conferees believe that in instances where peer 
review of a school plan [Section 1116(c)(3)(D)] is required, 
local educational agencies may, with the approval of the State 
educational agency, use the State Committee of Practitioners 
(as described in Section 1803(b)) to perform the peer review 
process.''
      286. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill, 
but not the Senate amendment, directs the LEA to provide 
technical assistance to the school ``throughout the duration of 
the plan.''
      SR
      287. The House bill and the Senate amendment differ 
technically in the cross-reference. The Senate amendment, but 
not the House bill, refers to problems in implementing parental 
involvement (under section 1118), professional development 
(under section 1119), and other school and LEA 
responsibilities.
      HR
      288. The House bill and the Senate amendment are similar 
with the exception of the House bill reference to professional 
development.
      SR
      289. The House bill and the Senate amendment are the same 
through subparagraph (C) following of each piece of 
legislation.
      LC
      290. The House bill contains a similar provision which is 
located in subsection (b)(1)(E) (see note 262). The House bill 
requires intra-district public school choice not later than the 
first day of the school year following identification, while 
the Senate amendment requires intra-district public school 
choice at the end of the first year after the school year for 
which the school was identified. In addition, there is a 
difference in cross-references to the adequate yearly progress 
provisions in each piece of legislation.
      HR with amendment to insert ``continue to'' before 
``provide'' and to strike ``unless'' in subparagraph (A) and to 
insert as a new subparagraph (#--LC) ``make supplemental 
services available, consistent with subsection [(d)(1)]''
      291. The House bill contains a similar provision which is 
located in subsection (b)(1)(E). The Senate amendment, but not 
the House bill, also requires the intra-district public school 
choice to be not prohibited by local law, including school 
board approved LEA policy.
      SR
      292. The House bill does not contain a similar exception.
      SR
      293. The House bill does not contain this provision. Also 
see note 303.
      SR
      294. The House bill does not contain this provision. 
However, see also paragraph (4) of the House bill.
      HR with amendment to strike ``while . . . action''
      295. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment, but not the House bill, references corrective action 
and reconstitution.
      HR with an amendment strike ``reconstitution'' and insert 
``restructuring'' in (F)(7) and to conform parental information 
with note #168.
      296. The House bill and the Senate amendment are the same 
with minor wording differences in subparagraphs (A) through (C) 
following of each piece of legislation.
      SR
      297. The House bill and the Senate amendment are 
substantially the same with the exception that the House refers 
to the ``achievement'' problem, while the Senate amendment 
refers to the ``performance'' problem.
      SR
      298. The House bill and the Senate amendment are the same 
with minor differences in wording.
      LC
      299. The House bill, but not the Senate amendment, 
includes public charter schools. The Senate amendment, but not 
the House bill, conditions the explanation on when the school 
is identified for corrective action or reconstitution. The 
Senate amendment, but not the House bill, refers to the 
provision of transportation and supplementary services.
      HR with amendment to strike ``when the school is 
identified . . . (8),''
      300. See note 162.
      HR
      301. The House bill and the Senate amendment are the same 
in subparagraph (A) of each piece of legislation with minor 
wording differences and a technical difference in cross-
references. The Senate amendment requires corrective action to 
be consistent with ``State and local law'', while the House 
bill requires corrective action to be consistent with State 
law.
      SR
      302. The House bill and the Senate amendment are similar 
with minor wording differences and a technical difference in 
cross-references.
      LC
      303. The House bill, but not the Senate amendment, refers 
to the provision of public school choice and technical 
assistance and the identification of a school and corrective 
action to be taken. The Senate amendment contains a similar 
provision in clause (iii) following. There is a technical 
difference in cross-references to assessment provisions. The 
House bill refers to those schools that have failed to make 
adequate yearly progress at the end of the first full school 
year following identification. The Senate amendment refers to 
those schools that have failed to make adequate yearly progress 
at the end of the 2nd year after the school year for which the 
school was identified. The House bill contains a provision 
regarding those schools identified before enactment, which the 
Senate also does in paragraph (12) following. See note 331 for 
differences.
      HR with amendment to add ``full school'' after ``second''
      304. The House bill and the Senate amendment are similar 
with the following exceptions: (1) The House bill, but not the 
Senate amendment adds ``continue to'' before ``provide; and (2) 
The House bill, but not the Senate amendment, refers to State 
law.
      SR
      305. The House bill and the Senate amendment contain 
similar provisions, however, the House bill provision is 
located in subsection (b)(10). The House bill refers to those 
schools in school improvement, while the Senate amendment 
refers to those schools in school improvement and corrective 
action. The Senate amendment, but not the House bill, requires 
the transfer of as many children as possible and that the 
selection of those children is done on an equitable basis.
      SR
      306. See note 303 regarding identifying schools and 
taking corrective actions.
      LC
      307. The House bill does not contain this provision.
      SR
      308. The House bill, but not the Senate amendment, refers 
to the staff relevant to the failure to make adequate yearly 
progress.
      SR
      309. The House bill and the Senate amendment are 
substantially similar with the exceptions of minor wording 
differences and the House bill, but not the Senate amendment, 
referring to the school meeting adequate yearly progress.
      SR with an amendment to insert Report Language:
      Report Language:
      If an LEA chooses to implement a new curriculum as a 
means of corrective action, such new curriculum shall 
significantly depart from the existing curriculum in a manner 
aimed to have the school attain adequate yearly progress. The 
Conferees intend that such new curriculum constitute a 
substantial structural change to the school's curriculum that 
is consistent with the State academic content and academic 
achievement standards and specifically address issues 
identified by the plan developed by the school upon being 
identified as in need of improvement.
      310. The Senate amendment does not contain the provisions 
in subclauses (III)-(VI) following in the House bill.
      SR
      311. The House bill and the Senate amendment are the 
same.
      LC with amendment to add ``requirements of second year of 
school improvement'' after ``implementation of'', strike 
``only'' and insert ``restructuring'', strike ``school's 
failure'' and to insert ``school makes adequate yearly progress 
for one year or fails'' before ``to make'' and to strike ``was 
justified''.
      312. The House bill, but not the Senate amendment, 
requires the information be disseminated to the parents of 
children enrolled at the school in a format and to the extent 
practicable in a language the parents can understand.
      SR with an amendment to conform parental information with 
note #168.
      313. Both the House bill and the Senate amendment refer 
to schools having failed to make adequate yearly progress after 
one year of corrective action, although the House bill refers 
to a ``full'' year. However, the House bill, but not the Senate 
amendment, also requires for schools to be identified in 
restructuring to fail to make statistically significant 
adequate yearly progress for the economically disadvantaged 
students in the subjects included in the State's definition of 
adequate yearly progress after one year.
      HR with amendment to insert ``full school'' after ``one''
      314. The Senate amendment does not contain a similar 
provision.
      HR
      315. See note 304.
      SR with amendment to insert ``continue to'' before 
``provide''
      316. The Senate amendment, but not the House bill, refers 
to those children who remain in the schools.
      HR with amendment to insert ``continue to'' before 
``make'' and for LC to move same language to corrective action 
(at note 304) and to move same language but without ``continue 
to'' to 2nd year of school improvement (at note 290)
      317. The House bill and the Senate amendment are the same 
through clause (i) of the House bill and subclause (I) 
following of the Senate amendment.
      LC
      318. The House bill, but not the Senate amendment, 
includes principals. Otherwise, see note 308.
      SR with an amendment to strike ``the principal and'' and 
insert ``which may include the principal'' after ``that are 
relevant,''.
      319. The House bill refers to ``entering into a 
contract'', while the Senate amendment refers to ``turning the 
operation'' over.
      SR with an amendment to insert ``with a demonstrated 
record of effectiveness'' after ``public school'' in (iii).
      320. The House bill, but not the Senate amendment, refers 
to State law permitting such action.
      SR
      321. The House bill does not contain these Senate 
provisions.
      HR with an amendment to strike subclause (V) and clause 
(ii) and replace with a new subclause (V) and report language:
                                    ``(V) Any other major 
                                restructuring of the school's 
                                governance arrangement that 
                                makes fundamental reforms, such 
                                as significant changes in the 
                                school's staffing and 
                                governance, to improve student 
                                academic achievement in the 
                                school and which has 
                                substantial promise of enabling 
                                the school to make adequate 
                                yearly progress as defined in 
                                the State plan under section 
                                1111(b)(2). In the case of a 
                                rural local educational agency 
                                with less than 600 students in 
                                average daily attendance at the 
                                schools served by the agency 
                                and have a School Locale Code 
                                of 7 or 8, as determined by the 
                                Secretary, the Secretary shall, 
                                at such agency's request, 
                                provide technical assistance to 
                                such agency for the purpose of 
                                implementing this subclause.''
      Report Language:
      The Conferees recognize that rural schools and 
communities face unique challenges, including geographic 
isolation, in implementing the alternative governance 
arrangements under subparagraph (B)(i)(I)-(IV). Therefore, the 
Conferees intend for the Secretary to provide technical 
assistance and otherwise make every effort to assist these 
schools in restructuring, while not lessening the 
accountability requirements under this subparagraph.
      322. The Senate amendment does not contain a similar 
provision.
      SR with amendment to strike ``the end'' and insert ``not 
later than the beginning'' and to insert ``next'' before 
``school year in which the academic assessments are 
administered''.
      323. The House bill, but not the Senate amendment, refers 
to the participation of parents, to the extent practicable, in 
the development of the plan required by this paragraph. The 
House bill, but not the Senate amendment, also requires parents 
to be given an explanation of the plan under this paragraph.
      SR with an amendment to strike ``to the extent 
practicable''.
      324. The House bill refers by cross-reference to those 
schools in school improvement, corrective action, or 
restructuring. The Senate amendment refers to those schools in 
corrective action.
      SR with amendment for LC to add a reference to 2nd year 
of school improvement (at note 290)
      325. The House bill, but not the Senate amendment, refers 
to ``public'' schools. The Senate amendment, but not the House 
bill, references the subsection regarding a LEAs obligation to 
provide supplementary services and transportation costs.
      SR
      326. The House bill and the Senate amendment cap the 
amount the LEA can use for transportation costs at 15% of the 
LEA allocation under this part. The Senate amendment, but not 
the House bill, also includes the costs of providing 
supplementary services in the 15% cap.
      SR with amendment to strike ``15 percent'' and insert ``5 
percent'' and for LC to insert as a new subparagraph (C) the 
10% ``flex pot'' that can be used for either public school 
choice or for supplemental services and to insert special rule 
that if the State pays for public school choice, the 5% can be 
used as an additional flex pot to pay for supplemental 
services.
      327. See note 305.
      SR with amendment for LC to add a reference to 2nd year 
of school improvement (at note 290) and to insert ``corrective 
action, or restructuring'' after ``school improvement''
      328. The House bill, but not the Senate amendment, refers 
to those schools in corrective action and restructuring. 
Otherwise, the House bill and Senate amendment are 
substantially the same.
      HR with amendment to insert ``school improvement, 
corrective action, or restructuring'' and to strike 
``reconstitution'' in both places.
      329. The Senate amendment does not contain a similar 
provision.
      HR
      330. The House bill does not contain a similar provision.
      HR with amendment to strike paragraph (11) and insert new 
paragraph (11):
            ``(11) Special rule.--A local educational agency 
        shall permit a child who transferred to another school 
        under this subsection to remain in that school until 
        the child has completed the highest grade in that 
        school. The obligation of the local educational agency 
        to provide, or to provide for, transportation for the 
        child ends, except that the obligation of the local 
        educational agency to provide, or provide for, 
        transportation remains until the end of the school 
        year, if the school from which the child transferred is 
        no longer identified for school improvement or subject 
        to corrective action or restructuring.''
      331. See notes 258 and 303.
      HR with amendment to strike in subparagraph (A) (i) and 
(ii) ``at the beginning of the next school year following such 
day'' and to strike in subparagraph (B) ``and that fails . . . 
such date'' and to strike in subparagraph (B) ``subject to . . 
. next school year'' and insert ``treated by the local 
educational agency as a school described in paragraph (7)'' and 
to strike subparagraphs (A)(iii) and (A)(iv) and subparagraph 
(B)(ii), and to add a special rule that public school choice 
and supplemental services must be implemented no later than the 
beginning of the 2002-2003 school year for the appropriate 
schools identified before enactment pursuant to paragraphs 
(A)(i) and (ii) and (B)(ii), and the Department of Education 
must issue regulations on the new provisions relating to 
sections 1111 and 1116 within 6 months of date of enactment of 
this Act.
      332. The House bill refers to State responsibilities 
while the Senate amendment refers to SEA responsibilities.
      HR
      333. The Senate amendment, but not the House bill, refers 
to schools in corrective action. The House bill, but not the 
Senate amendment, refers to ``restructuring''. The Senate 
amendment, but not the House bill, directs the SEA to use funds 
reserved under section 1003 to the extent possible.
      SR with an amendment to insert ``corrective action'' 
after ``school improvement,'' in (A).
      334. The House bill and the Senate amendment are the same 
with minor wording differences.
      LC
      335. The Senate amendment does not contain this 
provision.
      SR with amendment to strike ``within the same . . . was 
given'' and insert ``before any identification of a school 
required under this section takes place.''
      336. The House bill does not contain these provisions.
      HR with amendment to strike subparagraphs (C) and (D) and 
insert new subparagraph (C):
      ``(C) for local educational agencies or schools 
identified for improvement under section 1116, notify the 
Secretary of major factors that were brought to the attention 
of the State educational agency under section 1111(b)(8) that 
have significantly impacted student achievement.''
      337. There is a difference in cross-references regarding 
adequate yearly progress. The Senate amendment, but not the 
House bill, also requires a review of the LEA's implementation 
of the responsibilities contained in the listed sections.
      SR with an amendment ``and to determine if each LEA is 
carrying out its responsibilities under 1116, 1117, 1118, and 
1119'' after ``achievement standards'' and before the semi-
colon.
      338. The Senate amendment does not contain this 
provision.
      SR
      339. The House bill does not contain these provisions.
      SR with an amendment to strike subparagraph (B) and 
strike paragraph (2) and insert:
            ``(2) Rewards.--In the case of a local educational 
        agency that for 2 consecutive years has exceeded the 
        State's definition of adequate yearly progress as 
        defined in the State plan under section 1111(b)(2), the 
        State may make rewards of the kinds described under 
        section 1117.''
      340. The Senate amendment, but not the House bill, refers 
to schools served under this part and their progress toward 
meeting the State's performance standards. The Senate amendment 
also provides for an exception for targeted assistance 
programs, which the House does as well in paragraph (4), 
although the House bill refers to targeted assistance schools 
and there are other minor wording differences.
      SR
      341. The Senate amendment does not contain this 
provision.
      SR with amendment for LC to move language to note 331 as 
subparagraph (C) and to parallel school improvement and 
corrective action language for schools.
      342. The Senate amendment does not contain this 
provision.
      SR with amendment for LC to move language to note 331 as 
subparagraph (D) and to parallel school improvement and 
corrective action language for schools.
      343. See note 340.
      SR
      344. The House bill and the Senate amendment are similar 
with the following exceptions: (1) There is a difference in the 
paragraph references; (2) The House bill refers to LEA data, 
while the Senate amendment refers to ``school-level'' data; and 
(3) There are minor wording differences between the House bill 
and Senate amendment regarding the LEA provision of evidence 
for alleged identification error and the timeline for the final 
determination of LEA status.
      SR with an amendment to strike ``local educational 
agency'' before ``data''.
      Report Language:
      The Conferees urge that, in providing the opportunity for 
review under paragraph (5) and before identifying a local 
educational agency for improvement, SEAs should provide to 
LEAs, and the LEAs shall make available to school officials, 
teachers, parents, and other interested parties, information on 
the statistical accuracy of the assessment and the data 
produced in a language and format that is likely to be 
accessible and understandable to all parties, in order to allow 
such individuals to make an informed judgment about the 
accuracy of the identification for improvement of a local 
educational agency.''
      345. The Senate amendment does not contain a similar 
provision.
      SR
      346. The House bill and the Senate amendment are similar 
with a technical difference in cross-references regarding LEA 
identification. In addition, the House bill, but not the Senate 
amendment, requires consultation with the groups listed.
      SR
      347. The House bill and the Senate amendment are the 
same.
      LC
      348. The Senate amendment, but not the House bill, refers 
to consistency with State standards.
      HR
      349. The Senate amendment does not contain a similar 
provision.
      SR
      350. The Senate amendment, but not the House bill, 
contains numerous requirements, including specifying where the 
funds are to be taken from, how they are to be treated, and 
what they are to be used for.
      HR with amendment to strike clause (iv) and replace with 
new clause (iv):
                            ``(iv) address the professional 
                        development needs of the instructional 
                        staff by committing to spend not less 
                        than 10% of the funds received by the 
                        local educational agency under this 
                        part during 1 fiscal year for 
                        professional development (including 
                        funds reserved for professional 
                        development under subsection 
                        (c)(3)(A)(iii)), but excluding funds 
                        reserved for professional development 
                        under subsection (j) of section 
                        1119A.''
      Report language:
      ``The Conferees intend that such funds shall supplement 
and not supplant professional development that instructional 
staff would otherwise receive, and which professional 
development, including mentoring for teachers in low-performing 
schools, shall increase the content knowledge of teachers and 
build the capacity of the teachers to align classroom 
instruction with challenging academic content standards and to 
bring all students to proficient or advanced levels of 
achievement as determined by the State.''
      351. The House bill and the Senate amendment are 
generally similar with the exception that the Senate amendment 
refers to ``subjects and grades'' and ``continuous and 
significant progress'' toward proficiency over 10 years.
      SR with an amendment to insert ``consistent with adequate 
yearly progress as described under section 1111(b)''
      352. The House bill does not contain a similar provision.
      HR with an amendment to strike ``and performance;'' and 
insert ``academic'' before ``achievement''.
      353. The Senate amendment does not contain a similar 
provision.
      SR with an amendment to strike clause (iii) and insert as 
new clause (iii):
                            ``(iii) incorporate, as 
                        appropriate, before school, after 
                        school, during the summer, and 
                        extension of the school year 
                        activities.''
(See note 279)
      354. The House bill and the Senate amendment are 
substantially the same.
      LC to conform with parental language from note 168.
      355. The House bill and the Senate amendment are similar 
with the exception that the Senate amendment, but not the House 
bill, includes SEA technical assistance.
      HR with an amendment to insert after ``(5)'' the 
following: ``and the local educational agency's 
responsibilities under section 1120A.''
      356. The House bill does not contain a similar provision.
      HR
      357. The Senate amendment does not contain a similar 
provision.
      SR
      358. The House bill and the Senate amendment are similar 
with the exception that the House bill, but not the Senate 
amendment, refers to the provision of technical assistance if 
requested. In addition, the House bill refers to the ``State'' 
responsibility while the Senate amendment refers to the SEA 
responsibility, a difference which is consistent through the 
remainder of each piece of legislation.
      HR with an amendment to insert ``if requested'' after 
``or other assistance''
      359. The House bill and the Senate amendment are 
substantially the same in clauses (i) and (ii) following of 
each piece of legislation.
      LC
      360. The House bill and the Senate amendment are similar 
with the exception that the Senate amendment, but not the House 
bill, refers to the provision of SEA technical assistance for 
problems implementing those activities listed in the Senate 
amendment.
      HR with an amendment to strike ``tied to scientifically 
based research'' and insert ``based on scientifically based 
research'' in (B).
      361. The Senate amendment does not contain this 
provision.
      SR
      362. The House bill and the Senate amendment are similar 
with minor differences in wording, technical differences in 
cross-references, and the Senate amendment refers to 
consistency with State and local law, while the House bill in 
subparagraph (B) following refers to consistency with State 
law. See note 365.
      SR
      363. The House bill and the Senate amendment are the same 
with the exception that the House bill specifically references 
clauses regarding corrective action.
      LC
      364. The Senate amendment does not contain this 
provision.
      SR
      365. The House bill and the Senate amendment are similar, 
with minor wording differences, and the Senate amendment, but 
not the House bill, refers to consistency with State and local 
law. See note 362 and subparagraph (B) in the House bill.
      SR
      366. The House bill and the Senate amendment are similar.
      HR with an amendment to strike ``deferring, reducing, or 
withholding funds.'' and insert ``deferring programmatic funds 
or reducing administrative funds'' in (vi).
      367. The House bill does not contain this provision.
      HR with an amendment to insert Report Language:
      Report Language:
      If an SEA chooses to implement a new curriculum as a 
means of corrective action, such new curriculum shall 
significantly depart from the existing curriculum in a manner 
aimed to have the LEA attain adequate yearly progress. The 
conferees intend that such new curriculum shall constitute a 
substantial structural change to the LEA's curriculum that is 
consistent with State academic content and academic achievement 
standards and specifically address issues identified by the 
plan developed by the local educational agency upon being 
identified as in need of improvement.
      368. The House bill refers to replacing personnel 
relevant to the failure to make adequate yearly progress. The 
Senate amendment refers to reconstituting personnel.
      SR
      369. The House bill and the Senate amendment are 
substantially the same in the following three provisions.
      LC
      370. The Senate amendment does not contain a similar 
provision.
      SR with amendment to require LEA to use the 5% LEA 
reservation and 10% flex reservation for transportation. (See 
note 326)
      371. The Senate amendment, but not the House bill, refers 
to that corrective action taken pursuant to this paragraph. The 
House bill refers to due process provided to LEAs, while the 
Senate amendment refers to notice provided to LEAs. The Senate 
amendment, but not the House bill, refers to a timeline by 
which the hearing shall take place.
      HR
      372. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill 
refers to specific dissemination outlets, while the Senate 
amendment refers to a generally available medium.
      LC
      373. The House bill and the Senate amendment are 
substantially the same with minor wording differences, and the 
House bill, but not the Senate amendment, refers to the 
financial resources of LEAs and schools.
      LC with amendment to conform with note 311
      374. The House bill does not contain a similar provision.
      SR
      375. The House bill and the Senate amendment are similar 
with the exceptions of minor wording differences and that the 
House bill allows for an LEA to make adequate yearly progress 
two out of the three years following identification, while the 
Senate amendment requires a LEA to make adequate yearly 
progress for two consecutive years.
      HR
      376. The House bill does not contain this provision.
      HR
      377. The House bill and the Senate amendment have 
different headings and are located in different subsections of 
section 1116 of each piece of legislation.
      HR
      378. The House bill and the Senate amendment provide the 
option of supplemental services to parents if a school has 
failed for 3 years to make adequate yearly progress, as defined 
in each piece of legislation in Title I, part A, with a 
technical difference in cross-references. The House bill refers 
to ``each eligible child'' that is able to obtain supplemental 
services, while the Senate amendment refers to ``to children in 
the school''. The House bill defines ``eligible child'' in 
subsection (d)(10)(A) (See note 414). Both the House bill and 
the Senate amendment require the SEA to approve supplemental 
service providers and allow parents to choose from the approved 
providers. However, the House bill, but not the Senate 
amendment, describes the minimum elements of the ``reasonable 
criteria'' the SEAs shall use to approve supplemental service 
providers.
      HR/SR with amendment:
      (#--LC) Supplemental Educational Services.--
            (1) In the case of any school described in 
        subsection [2nd year of school improvement, corrective 
        action, or restructuring], the local educational agency 
        serving such school shall, subject to subparagraphs 
        [(B) through (E)], arrange for the provision of 
        supplemental services to eligible children in the 
        school from a provider with a demonstrated record of 
        effectiveness, selected by the parents and approved for 
        that purpose by the State educational agency in 
        accordance with reasonable criteria that it shall 
        adopt.''
      Report Language:
      The Conferees intend that a local educational agency 
shall not be required to arrange for the provision of 
supplemental services for a student, if the parent of such 
student has not requested supplemental services.
      379. The House bill, but not the Senate amendment, 
references the criteria described in paragraph (d)(1) of the 
House bill in regards to those supplemental service providers 
that may be selected by parents. In addition, the House bill 
requires the LEA to assist requesting parents with the 
selection of a provider, while the Senate amendment contains a 
similar provision in subsection (f)(2)(C) of the Senate 
amendment. See note 388.
      HR
      380. The House bill contains a specific reference to a 
contract between the LEA and a supplemental service provider, 
while the Senate amendment generally refers to the relationship 
between the LEA and the provider in subsection (f)(1)(C)--
(FINANCIAL OBLIGATION OF LEA) and (f)(2)(E) of the Senate 
amendment.
      HR/SR with amendment to insert the following and strike 
all language (380-395 & 406):
            (3) Local educational agency responsibilities.--
        Each local educational agency subject to this 
        subsection shall--
                    (A) provide, at a minimum, annual notice to 
                parents (in a format and, to the extent 
                practicable, in a language the parents can 
                understand) of--
                            (i) the availability of services 
                        under this subsection;
                            (ii) the approved providers of 
                        those services that are within the 
                        school district served by the agency or 
                        whose services are reasonably available 
                        in neighboring school districts; and
                            (iii) a brief description of the 
                        services, qualifications, and 
                        demonstrated effectiveness of each such 
                        provider;
                    (B) if requested, assist parents to choose 
                a provider from the list of approved providers 
                maintained by the State;
                    (C) apply fair and equitable procedures for 
                serving students if spaces at approved 
                providers are not sufficient to serve all 
                students;
                    (D) not disclose to the public the identity 
                of any student eligible for, or receiving, 
                supplemental services under this subsection 
                without the written permission of the parents 
                of the student.
                    (E) Agreement.--In the case of the 
                selection of a provider by a parent, the local 
                educational agency shall enter into an 
                agreement with such provider. Such agreement 
                shall--
                            (i) require the local educational 
                        agency to develop, with parents (and 
                        the provider they have chosen), a 
                        statement of specific performance goals 
                        for the student, how the student's 
                        progress will be measured, and a 
                        timetable for improving achievement 
                        that, in the case of a student with 
                        disabilities, is consistent with the 
                        student's individualized education 
                        program under section 614(d) of the 
                        Individuals with Disabilities Education 
                        Act;
                            (ii) describe how the student's 
                        parents and the student's teacher or 
                        teachers will be regularly informed of 
                        the student's progress;
                            (iii) provide for the termination 
                        of such agreement with a provider that 
                        is unable to meet such goals and 
                        timetables; and
                            (iv) contain provisions with 
                        respect to the making of payments to 
                        the provider by the local educational 
                        agency;
                            (v) prohibit the provider from 
                        disclosing to the public the identity 
                        of any student eligible for, or 
                        receiving, supplemental services under 
                        this subsection without the written 
                        permission of the parents of such 
                        student.
            (4) State educational agency responsibilities.--
        Each State educational agency shall--
                    (A) promote maximum participation by 
                providers, in consultation with local 
                educational agencies, parents, teachers, and 
                other interested members of the public, to 
                ensure, to the extent practicable, that parents 
                have as many choices of those providers as 
                possible;
                    (B) develop and apply objective criteria, 
                consistent with paragraph [(6)], to potential 
                providers that are based on a demonstrated 
                record of effectiveness in increasing the 
                academic proficiency of students in subjects 
                relevant to meeting the State academic content 
                and student achievement standards adopted under 
                section 1111(b)(1);
                    (C) maintain an updated list of approved 
                providers across the State, by school district, 
                from which parents may select; and
                    (D) ensure supplemental services are 
                provided the school year following the date of 
                enactment of the [NCLB Act].
      Report Language:
      The Conferees intend for State educational agencies to 
actively consider the inclusion of providers who can deliver 
high-quality distance learning in order to meet the purposes of 
this section.
      381. The House bill and the Senate amendment require the 
LEA, the provider, and the child's parents to agree on the 
goals and progress for the supplemental services provided, 
although the Senate provision is in subsection (f)(2)(E) of the 
Senate amendment. Also see note 390.
      HR/SR with amendment to strike language (see note 380)
      382. The Senate amendment does not contain a similar 
provision.
      HR/SR with amendment to strike language (see note 380)
      383. The Senate amendment does not contain a similar 
provision, although the Senate amendment does generally 
reference the relationship between the LEA and the supplemental 
service provider in subsection (f)(1)(C)--(Financial obligation 
of lea) and (f)(2)(E) of the Senate amendment.
      HR/SR with amendment to strike language (see note 380)
      384. The House bill and the Senate amendment require each 
LEA required to provide supplemental services (see note 378) to 
notify parents of the availability of supplemental services, 
with the exception of some minor wording differences.
      HR/SR with amendment to strike language (see note 380)
      385. The House bill and the Senate amendment require the 
LEA to notify parents of the eligible supplemental service 
providers, with the exception that the Senate amendment, but 
not the House bill, requires notification to parents of those 
providers within the district or in neighboring districts.
      HR/SR with amendment to strike language (see note 380)
      386. The House bill does not contain a similar provision.
      HR/SR with amendment to strike language (see note 380)
      387. The Senate amendment requires LEAs to inform 
providers in that school district of the opportunity to provide 
supplemental services and of the procedures for getting SEA 
approval to provide those services. The House bill contains a 
similar provision, but requires the SEA to notify all providers 
of the opportunity to provide services, not just those within a 
district, in subsection (d)(5)(E) of the House bill.
      HR/SR with amendment to strike language (see note 380)
      388. See note 379.
      HR/SR with amendment to strike language (see note 380)
      389. The House bill does not contain a similar provision.
      HR/SR with amendment to strike language (see note 380)
      390. The Senate amendment, but not the House bill, 
requires the child's parents to be informed of the child's 
progress on a regular basis (however, see House bill 
subparagraph (6)(A) regarding parental information required) 
(see note 400) and the supplemental services are consistent 
with a child's IEP under IDEA. Otherwise see note 381.
      HR/SR with amendment to strike language (see note 380)
      391. The House bill does not contain a similar provision.
      HR/SR with amendment to strike language (see note 380)
      392. The House bill and the Senate amendment require 
consultation carrying out the responsibilities detailed in the 
following subparagraphs, although the Senate amendment, but not 
the House bill, contains more entities that shall be consulted.
      HR/SR with amendment to strike language (see note 380)
      393. The House bill and the Senate amendment are similar 
with the exceptions that the House bill, but not the Senate 
amendment, requires consultation with LEAs and with minor 
wording differences.
      HR/SR with amendment to strike language (see note 380)
      394. The House bill and Senate amendment are generally 
similar in terms of requiring the SEA to develop criteria by 
which to judge the eligibility of supplemental service 
providers to participate. However, the Senate amendment, but 
not the House bill, adds the word ``objective'' before 
``criteria''. In addition, the Senate amendment, but not the 
House bill, specifically references standards developed 
pursuant to section 1111 of Title I, while the House bill 
references these standards in paragraph (d)(1) and generally in 
subparagraph (d)(6)(B).
      HR/SR with amendment to strike language (see note 380)
      395. The Senate amendment, but not the House bill, 
requires the SEA to maintain a list of supplemental service 
providers in the LEAs that must make supplemental services 
available.
      HR/SR with amendment to strike language (see note 380)
      396. The House bill and the Senate amendment require the 
SEA to develop standards and techniques to monitor the 
performance of supplemental service providers and to withdraw 
SEA approval if such standards are not being met by the 
providers. The Senate amendment, but not the House bill, 
requires the SEA to publicly report on the nature of the 
services offered by supplemental service providers. In 
addition, the Senate amendment, but not the House bill, refers 
to subparagraph (B) regarding standards. See note 394.
      HR with an amendment to strike ``develop and implement'' 
and strike ``publicly report on,'' and insert as the first 
clause in (D) ``develop, implement, and publicly report on''.
      397. See note 387.
      SR
      398. The Senate amendment requires the SEA to ensure 
supplemental service providers meet the codes listed. The House 
bill contains a similar provision, with the exception that the 
House bill, but not the Senate amendment, also includes civil-
rights laws. However, the House bill provision is in subsection 
(d)(6)(C). See note 402.
      SR
      399. The Senate amendment does not contain a similar 
provision, however similar elements can be found throughout the 
Senate amendment. See the following notes for cross-references.
      SR
      400. The Senate amendment does not contain a 
substantially similar provision, however, see note 390 
regarding information required to be provided to parents on the 
progress of their child.
      SR
      401. See note 382.
      SR with an amendment to insert ``and is aligned with 
academic achievement standards'' after ``and State,'' in (B).
      402. See note 398.
      SR
      403. The Senate amendment does not contain a similar 
provision.
      SR
      404. The House bill, but not the Senate amendment, sets a 
limit on the administration and cost of providing supplemental 
services to 40 percent of the Title I, part A, subpart 2 per 
child allocation for each school identified as having failed to 
meet adequate yearly progress for 3 years (see note 378). The 
House bill defines ``per child allocation'' in subparagraph 
(d)(10)(D). The Senate amendment, but not the House bill, 
establishes the maximum amount a LEA shall pay for supplemental 
services for each child receiving services as either the LEA's 
Title I, part A, subpart 2 allocation divided by the number of 
low-income students in the district, or the actual cost of the 
services received, whichever is less.
      HR with amendment to insert after ``low-income families'' 
the following: ``(which, for the purposes of this subparagraph 
shall mean poverty as used by the Census)''
      405. The House bill does not contain a similar provision.
      HR
      406. The House bill does not contain a similar provision. 
However, see notes 380 and 383.
      HR/SR with amendment to strike language (see note 380)
      407. The House bill, but not the Senate amendment, allows 
an LEA to use up to 15% of its Title I, part A, subpart 2 
allocation to pay for transportation costs associated with 
providing supplemental services. The Senate amendment, but not 
the House bill, allows an LEA to use not more than 15% of its 
Title I, part A, subpart 2 allocation for supplemental services 
as well as transportation costs related to public school choice 
transportation costs referenced in subsection (c)(9) of the 
Senate amendment. See note 326.
      HR with amendment to strike ``15 percent'' and insert ``5 
percent'' and to strike ``or to provide . . . (c)(9)'' and for 
LC to add a reference to the ``flex pot'' at note 326.
      408. The House bill does not contain a similar provision. 
However, see note 404.
      HR
      409. The House bill does not contain a similar provision.
      HR
      410. The House bill does not contain a similar provision.
      HR
      411. The Senate amendment does not contain a similar 
provision in Title I, part A. However, the Senate amendment 
contains a provision in section 5331(b)(1)(Q) which authorizes 
LEAs to use Innovative Program Strategies funds to help pay the 
costs of supplementary services.
      SR
      412. The Senate amendment does not contain a similar 
provision.
      SR
      413. The Senate amendment does not contain a similar 
provision.
      SR with amendment:
            ``(9) Duration.--The local educational agency shall 
        continue to provide supplemental educational services 
        to a child receiving such services under this 
        subsection until the end of the school year in which 
        such services were received.''
      414. The Senate amendment does not contain a similar 
provision.
      SR
      415. The House bill and the Senate amendment are 
generally similar in the definition of supplemental services. 
However, the Senate amendment, but not the House bill, includes 
in the definition the words ``high quality, research-based, 
focused on academic content''. In addition, the House bill 
defines the services as designed to help the student increase 
achievement on the assessments required under section 1111 of 
Title I, while the Senate amendment defines the services as 
directed at raising student proficiency on the State's 
standards generally.
      SR with an amendment to insert the following:
                    ``(B) `supplemental educational services' 
                means tutoring and other supplemental academic 
                enrichment services that are--
                            ``(i) in addition to instruction 
                        provided during the school day; and
                            ``(ii) are of high quality, 
                        research-based, and specifically 
                        designed to increase the academic 
                        achievement of eligible children on the 
                        academic assessments required under 
                        section 1111 and attain proficiency in 
                        meeting the State's academic 
                        achievement standards;''
      416. The Senate amendment does not contain a similar 
provision.
      SR with an amendment to strike subparagraph (C) and 
insert the following:
                    ``(C) `provider' means a non-profit entity, 
                a for-profit entity, or a local educational 
                agency which has a demonstrated record of 
                effectiveness in increasing student academic 
                achievement, and is capable of providing 
                supplemental instructional services that are 
                consistent with the instructional program of 
                the local educational agency and the academic 
                standards described under section 1111, and is 
                financially sound.''
      417. The Senate amendment does not contain a similar 
provision regarding fiscal management.
      SR
      418. The Senate amendment does not contain a similar 
provision. However, also see note 407.
      HR
      419. The Senate amendment does not contain a similar 
provision.
      SR
      420. The House bill does not contain a similar provision.
      HR with amendment to strike paragraph (4) and insert the 
following:
            ``(4) Waiver.--(A) At the request of a local 
        educational agency, a State educational agency may 
        waive, in whole or in part, the requirement of this 
        subsection to provide supplemental services if the 
        State educational agency determines that--
                    ``(i) none of the providers of those 
                services on the list approved by the State 
                educational agency under [paragraph (5)] makes 
                those services available in the area served by 
                the local educational agency or within a 
                reasonable distance of that area; and
                    ``(ii) the local educational agency 
                provides evidence that it is not able to 
                provide those services.
            ``(B) The State educational agency shall notify the 
        local educational agency, within 30 days of receiving 
        the local educational agency's request for a waiver, 
        whether the request is approved or disapproved. If the 
        waiver is disapproved, the State educational agency 
        shall respond in writing within the same time frame 
        with the reasons for the disapproval.''
      421. The House bill does not contain a similar provision.
      HR with amendment to strike paragraph (5) and insert the 
following:
            ``(5) Special rule.--If State law prohibits a State 
        educational agency from carrying out one or more of its 
        responsibilities under [paragraph (5)] with respect to 
        those who provide, or seek approval to provide, 
        supplemental services, each local educational agency in 
        the State shall carry out those responsibilities with 
        respect to its students who are eligible for those 
        services.''
      422. The Senate amendment does not contain a similar 
provision.
      SR with amendment:
      (f) Schools Funded by the Bureau of Indian Affairs.--
            (1) Adequate yearly progress for bureau funded 
        schools.--
                    (A) (i) Development of definition.--The 
                Secretary of the Interior, in consultation with 
                the Secretary of Education if the Secretary of 
                Interior requests it, using the process set out 
                in section 1138A [LC] of the Education 
                Amendments of 1978 (25 U.S.C. 2001) [negotiated 
                rulemaking for Bureau schools], shall define 
                adequate yearly progress, consistent with 
                section 1111(b), for the schools funded by the 
                Bureau of Indian Affairs on a regional or 
                tribal basis, as appropriate, taking into 
                account the unique circumstances and needs of 
                such schools and the students served by such 
                schools.
                    (ii) The Secretary of the Interior, 
                consistent with clause (i), may use the 
                definition of adequate yearly progress that the 
                State in which the school that is funded by the 
                Bureau is located uses consistent with section 
                1111(b), or in the case of schools that are 
                located in more than one State, the Secretary 
                of the Interior may use whichever State 
                definition of adequate yearly progress that 
                best meets the circumstances and needs of such 
                school or schools and the students they serve.
                    (B) Waiver.--The tribal governing body or 
                school board of a school funded by the Bureau 
                of Indian Affairs may waive, in part or in 
                whole, the definition of adequate yearly 
                progress established pursuant to paragraph (A) 
                where such definition is deemed by such body or 
                school board to be inappropriate. If such 
                definition is waived, the tribal governing body 
                or school board shall, within 60 days 
                thereafter, submit to the Secretary of Interior 
                a proposal for an alternative definition of 
                adequate yearly progress, consistent with 
                section 1111(b), that takes into account the 
                unique circumstances and needs of such school 
                or schools and the students served. The 
                Secretary of the Interior, in consultation with 
                the Secretary of Education if the Secretary of 
                Interior requests it, shall approve such 
                alternative definition unless the Secretary 
                determines that the definition does not meet 
                the requirements of section 1111(b), having 
                taken into account the unique circumstances and 
                needs of such school or schools and the 
                students served.
                    (C) Technical assistance.--The Secretary of 
                Interior shall, in consultation with the 
                Secretary of Education if the Secretary of 
                Interior requests it, either directly or 
                through a contract, provide technical 
                assistance, upon request, to a tribal governing 
                body or school board of a school funded by the 
                Bureau of Indian Affairs that seeks to develop 
                an alternative definition of adequate yearly 
                progress.
            (2) Accountability for bia schools.--For the 
        purposes of this section, schools funded by the Bureau 
        of Indian Affairs shall be considered schools subject 
        to subsection (b), as specifically provided for in this 
        subsection, except that such schools shall not be 
        subject to subsections (b)(1)(E) [public school 
        choice], (b)(9), (b)(10), (c) and (d).
            (3) School improvement for bureau schools.--
                    (A) Contract and grant schools.--For a 
                school funded by the Bureau of Indian Affairs 
                which is operated under a contract issued by 
                the Secretary of the Interior pursuant to the 
                Indian Self-Determination Act [25 USC 450 et 
                seq.] or under a grant issued by the Secretary 
                of the Interior pursuant to the Tribally 
                Controlled Schools Act [25 USC 2501 et seq.], 
                the school board of such school shall be 
                responsible for meeting the requirements of 
                subsection (b) relating to development and 
                implementation of any school improvement plan 
                as described in subsection(b)(1) through (b)(3) 
                and subsection (b)(5), except subsection 
                (b)(1)(E)[public school choice]. The Bureau of 
                Indian Affairs shall be responsible for meeting 
                the requirements of subsection (b)(4) relating 
                to technical assistance.
                    (B) Bureau operated schools.--For schools 
                operated by the Bureau of Indian Affairs, the 
                Bureau shall be responsible for meeting the 
                requirements of subsection (b) relating to 
                development and implementation of any school 
                improvement plan as described in 
                subsection(b)(1) through (b)(5) except 
                subsection (b)(1)(E)[public school choice].
            (4) Corrective action and restructuring for bureau 
        funded schools.
                    (A) Contract and grant schools.--For a 
                school funded by the Bureau of Indian Affairs 
                which is operated under a contract issued by 
                the Secretary of the Interior pursuant to the 
                Indian Self-Determination Act [25 USC 450 et 
                seq.] or under a grant issued by the Secretary 
                of the Interior pursuant to the Tribally 
                Controlled Schools Act [25 USC 2501 et seq.], 
                the school board of such school shall be 
                responsible for meeting the requirements of 
                subsection (b) relating to corrective action 
                and restructuring as described in subsection 
                (b)(7) and (b)(8). Any action taken by such 
                school board under subsection (b)(7) or (b)(8) 
                shall take into account the unique 
                circumstances and structure of the Bureau of 
                Indian Affairs-funded school system and the 
                laws governing that system.
                    (B) Bureau operated schools.--For schools 
                operated by the Bureau of Indian Affairs, the 
                Bureau shall be responsible for meeting the 
                requirements of subsection (b) relating to 
                corrective action and restructuring as 
                described in subsection (b)(7) and (b)(8). Any 
                action taken by the Bureau under subsection 
                (b)(7) or (b)(8) shall take into account the 
                unique circumstances and structure of the 
                Bureau of Indian Affairs-funded school system 
                and the laws governing that system.
            (5) Annual report.--On an annual basis, the 
        Secretary of the Interior shall report to the Secretary 
        of Education and to the [House and Senate Committees] 
        regarding any schools funded by the Bureau of Indian 
        Affairs which have been identified for school 
        improvement. Such report shall include--
                    (A) the identity of each school;
                    (B) a statement from each affected school 
                board regarding the factors that lead to such 
                identification; and
                    (C) an analysis by the Secretary of the 
                Interior, in consultation with the Secretary of 
                Education if the Secretary of Interior requests 
                it, as to whether sufficient resources were 
                available to enable such school to achieve 
                adequate yearly progress.
      423. The House bill does not contain a similar provision.
      HR with amendment to strike subsection (g) and insert new 
subsection (g):
      ``(g) Other Agencies.--Pursuant to the notification 
described in subsection (c)(13)(C), the Secretary may notify, 
to the extent feasible and necessary as determined by the 
Secretary, other relevant Federal agencies regarding the major 
factors determined by the State educational agency that have 
significantly impacted student achievement.''
      424. The House bill, but not the Senate amendment, makes 
a number of changes to current law by adding LEAs, changing the 
references to standards and omitting paragraph (2) of 
subsection (a) of current law. The Senate amendment retains 
current law.
      HR/SR with amendment to strike all and insert the 
following:

SEC. 107. SCHOOL SUPPORT AND RECOGNITION.

      Section 1117 is amended to read as follows:

``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

      ``(a) System for Support.--Each State shall establish a 
statewide system of intensive and sustained support and 
improvement for local educational agencies and schools 
receiving funds under this part, in order to increase the 
opportunity for all students in those agencies and schools to 
meet the State's academic content standards and student 
academic achievement standards.
            ``(1) Priorities.--In carrying out this subsection, 
        a State shall--
                    ``(A) first, provide support and assistance 
                to local educational agencies subject to 
                corrective action under section 1116 and assist 
                schools, in accordance with section 
                1116(b)(11), for which a local educational 
                agency has failed to carry out its 
                responsibilities under paragraphs (7) and (8) 
                of section 1116(b);
                    ``(B) second, provide support and 
                assistance to other local educational agencies 
                identified as in need of improvement under 
                section 1116(b); and
                    ``(C) third, provide support and assistance 
                to other local educational agencies and schools 
                participating under this part that need that 
                support and assistance in order to achieve the 
                purpose of this part.
            ``(2) Regional centers.--Such a statewide system 
        shall, to the extent practicable, work with and receive 
        support and assistance from the comprehensive regional 
        technical assistance centers and the regional 
        educational laboratories under section 941(h) of the 
        Educational Research, Development, Dissemination, and 
        Improvement Act of 1994, or other providers of 
        technical assistance.
            ``(3) Provisions.--The system shall include at a 
        minimum, the following:
                    ``(A) Approaches.--
                            ``(i) In general.--In order to 
                        achieve the purpose described in 
                        subsection (a), each such system shall 
                        give priority to using funds made 
                        available to carry out this section--
                                    ``(I) to establish school 
                                support teams for assignment to 
                                and working in schools in the 
                                State that are described in 
                                subsection (a)(1)(A) which 
                                shall be composed of persons 
                                knowledgeable about 
                                scientifically based research 
                                and practice on teaching and 
                                learning and about successful 
                                schoolwide projects, school 
                                reform, and improving 
                                educational opportunities for 
                                low-achieving students, 
                                including--
                                            ``(aa) highly 
                                        qualified or 
                                        distinguished teachers 
                                        and principals;
                                            ``(bb) pupil 
                                        services personnel;
                                            ``(cc) parents;
                                            ``(dd) 
                                        representatives of 
                                        institutions of higher 
                                        education;
                                            ``(ee) regional 
                                        educational 
                                        laboratories or 
                                        comprehensive regional 
                                        technical assistance 
                                        centers;
                                            ``(ff) outside 
                                        consultant groups; or
                                            ``(gg) other 
                                        individuals as the 
                                        State educational 
                                        agency, in consultation 
                                        with the local 
                                        educational agency, may 
                                        determine appropriate.
                                    ``(II) to provide such 
                                support as the State 
                                educational agency determines 
                                to be necessary and available 
                                to assure the effectiveness of 
                                such teams.
                                    ``(III) Functions.--Each 
                                school support team assigned to 
                                a school under this section 
                                shall--
                                            ``(aa) review and 
                                        analyze all facets of 
                                        the school's operation, 
                                        including the design 
                                        and operation of the 
                                        instructional program, 
                                        and assist the school 
                                        in developing 
                                        recommendations for 
                                        improving student 
                                        performances in that 
                                        school;
                                            ``(bb) collaborate, 
                                        with parents and school 
                                        staff and the local 
                                        educational agency 
                                        serving the school, in 
                                        the design, 
                                        implementation, and 
                                        monitoring of a plan 
                                        that, if fully 
                                        implemented, can 
                                        reasonably be expected 
                                        to improve student 
                                        performance and help 
                                        the school meet its 
                                        goals for improvement, 
                                        including adequate 
                                        yearly progress under 
                                        section 1111(b)(2)(B);
                                            ``(cc) evaluate, at 
                                        least semiannually, the 
                                        effectiveness of school 
                                        personnel assigned to 
                                        the school, including 
                                        identifying outstanding 
                                        teachers and 
                                        principals, and make 
                                        findings and 
                                        recommendations to the 
                                        school, the local 
                                        educational agency, 
                                        and, where appropriate, 
                                        the State educational 
                                        agency; and
                                            ``(dd) make 
                                        additional 
                                        recommendations as the 
                                        school implements the 
                                        plan described in 
                                        clause (ii) to the 
                                        local educational 
                                        agency and the State 
                                        educational agency 
                                        concerning additional 
                                        assistance that is 
                                        needed by the school or 
                                        the school support 
                                        team.
                            ``(ii) Continuation of 
                        assistance.--After 1 school year, the 
                        school support team, in consultation 
                        with the local educational agency, may 
                        recommend that the school support team 
                        continue to provide assistance to the 
                        school, or that the local educational 
                        agency or the State educational agency, 
                        as appropriate, take alternative 
                        actions with regard to the school.
                            ``(iii) the designation and use of 
                        `Distinguished Teachers and 
                        Principals', chosen from schools served 
                        under this part that have been 
                        especially successful in improving 
                        academic achievement.
                            ``(iv) Alternatives.--The State may 
                        devise additional approaches to 
                        providing the assistance described in 
                        subsection (a), such as providing 
                        assistance through institutions of 
                        higher education and educational 
                        service agencies or other local 
                        consortia, and private providers of 
                        scientifically based technical 
                        assistance.
      ``(b) State Recognition.--
            ``(1) Establishment of academic achievement awards 
        program.--
                    ``(A) In general.--Each State receiving a 
                grant under this part shall establish a program 
                for making academic achievement awards to 
                recognize and, as appropriate and as funds are 
                available under subsection (c)(3)(A), may 
                financially reward schools served under this 
                part that have--
                            ``(i) significantly closed the 
                        achievement gap between the groups of 
                        students defined in section 1111(b)(2); 
                        or
                            ``(ii) exceeded their adequate 
                        yearly progress goals, consistent with 
                        section 1111(b)(2), for 2 or more 
                        consecutive years.
                    ``(B) Distinguished schools.--Of those 
                schools meeting the criteria described in 
                subparagraph (A), each State shall designate as 
                distinguished schools those schools that have 
                made the greatest gains in closing the 
                achievement gap as described in clause (i) or 
                exceeding adequate yearly progress as described 
                in clause (ii). Such designated schools may 
                serve as models and provide support to other 
                schools, especially schools identified for 
                improvement under section 1116, to assist such 
                schools in meeting the State's academic content 
                standards and student academic achievement 
                standards.
                    ``(C) Awards to teachers.--A State program 
                under paragraph (A) may also recognize and 
                provide financial awards to teachers teaching 
                in a school described in such paragraph that 
                consistently makes significant gains in 
                academic achievement in the areas in which the 
                teacher provides instruction, or to teachers or 
                principals designated as distinguished under 
                subsection (a)(3)(A)(iii).
      ``(c) Funds.--Each State--
            ``(1) shall use funds reserved under section 
        1003(a) and may use funds made available under section 
        1002(j) for the approaches described under subsection 
        (a)(3)(A).
            ``(2) shall use State administrative funds 
        authorized under section 1002(i) for such purpose to 
        establish a Statewide system of support described under 
        subsection (a) and
            ``(3)(A) Reservation of funds by state.--
                    ``(i) For the purpose of carrying out 
                subparagraphs (A), (B), or (C) of subsection 
                (b), each State receiving a grant under this 
                part may reserve, from the amount (if any) by 
                which the funds received by the State under 
                this part for a fiscal year exceed the amount 
                received by the State under this part for the 
                preceding fiscal year, not more than 5 percent 
                of such excess amount; and
                  ``(ii) For the purpose of carrying out 
                subparagraph (C) of subsection (b), a State 
                educational agency may reserve funds as 
                necessary from [State activity reference] under 
                Title II.
            ``(B) Use within 3 years.--Notwithstanding any 
        other provision of law, the amount reserved under 
        paragraph (A) by a State for each fiscal year shall 
        remain available to the State until expended for a 
        period not exceeding 3 years.
            ``(C) Special allocation rule for schools in high-
        poverty areas.--
                    ``(i) In General.--Each State shall 
                distribute at least 75 percent of the amount 
                reserved under paragraph (A) for each fiscal 
                year to schools described in subparagraph (A), 
                or to teachers consistent with subsection 
                (b)(1)(C).
                    ``(ii) School described.--A school 
                described in subparagraph) (i) is a school 
                whose student population is in the highest 
                quartile of schools statewide in terms of the 
                percentage of children from low income 
                families.
      425. The House bill and the Senate amendment are similar 
except the House bill refers to the State, while the Senate 
amendment refers to the SEA. There are also technical 
differences in cross-references.
      HR/SR with amendment (see note 424)
      426. The House bill and the Senate amendment are similar 
with a technical difference in cross-references. The House bill 
only refers to LEAs, while the Senate amendment refers to both 
LEAs and schools.
      HR/SR with amendment (see note 424)
      427. The House bill and the Senate amendment are the 
same.
      HR/SR with amendment (see note 424)
      428. The House bill does not contain this provision.
      HR/SR with amendment (see note 424)
      429. The House bill refers to technical assistance to 
support the approaches listed while the Senate amendment refers 
to giving priority to using available funds for the approaches 
listed.
      HR/SR with amendment (see note 424)
      430. Both the House bill and the Senate amendment refer 
to school support teams. However, there are major differences: 
(1) The Senate amendment, but not the House bill, refers to the 
assignment and working of such teams in schools described in 
subsection (a)(3(A); (2) The House bill, but not the Senate 
amendment, refers to scientifically based research and practice 
on teaching and learning; (3) The Senate amendment, but not the 
House bill, refers to schoolwide projects and school reform; 
(4) The House bill refers to ``educational results'', while the 
Senate amendment refers to ``educational opportunities''; and 
(5) The Senate amendment, but not the House bill, contains a 
specific list of required individuals.
      HR/SR with amendment (see note 424)
      431. The House bill does not contain a similar provision.
      HR/SR with amendment (see note 424)
      432. The House bill does not contain similar provisions. 
The Senate amendment, but not the House bill, makes a number of 
changes to current law. Clauses (i) and (ii) of the Senate 
amendment are in current law. The Senate amendment adds the 
functions in clauses (iii) and (iv).
      HR/SR with amendment (see note 424)
      433. The House bill does not contain similar provisions. 
The Senate amendment, but not the House bill, makes a number of 
changes to current law. The Senate amendment allows States to 
identify any school served under the part as a distinguished 
school, while current law refers to only those schools that 
have exceeded the State's adequate yearly progress definition 
for 3 consecutive years. The Senate amendment also makes a 
technical change adding a parenthesis and expands distinguished 
educators to teachers and principals.
      HR/SR with amendment (see note 424)
      434. The House bill, but not the Senate amendment, refers 
to ``Distinguished Educators'' chosen from schools served under 
this part. The House bill and the Senate amendment are similar 
as to the criteria of academic achievement. The Senate 
amendment, but not the House bill, refers to State recognition 
and provision of financial awards to teachers and principals.
      HR/SR with amendment (see note 424)
      435. The House bill does not contain these provisions.
      HR/SR with amendment (see note 424)
      436. The House bill, but not the Senate amendment, makes 
a number of changes to current law by changing the wording, 
uses and cross-references in subsection (d) and by changing 
cross-references in subsection (e). The Senate amendment 
retains current law.
      HR/SR with amendment (see note 424)
      437. The Senate amendment does not contain a similar 
section.
      HR/SR with amendment (see note 424)
      438. The House bill does not contain a similar section.
      HR with amendment to move language to Title VI, part A 
with amendments to language (See note 45 of Title VII).
      439. The House bill and the Senate amendment retain 
current law with no changes.
      LC
      440. The House bill does not contain the Senate 
amendment's change to current law. Otherwise, the House bill 
and the Senate amendment retain current law with no other 
changes.
      HR
      441. The House bill, but not the Senate amendment, makes 
a number of changes to current law by adding a reference to 
Early Reading First in subparagraph (D), replacing 
subparagraphs (E) and (F) of current law with subparagraphs (E) 
and (F) of the House bill. The Senate amendment retains current 
law unchanged through subparagraph (F).
      SR with amendment to strike subparagraph (E) and insert:
                    ``(E) conduct, with the involvement of 
                parents, an annual evaluation of the content 
                and effectiveness of the parental involvement 
                policy in improving the academic quality of the 
                schools served under this part, including 
                identifying barriers to greater participation 
                by parents in activities authorized by this 
                section, including giving particular attention 
                to parents who are economically disadvantaged, 
                are disabled, have limited English proficiency, 
                have limited literacy, or are of any racial or 
                ethnic minority background, and use findings of 
                such evaluation to design strategies for more 
                effective parental involvement, and to revise, 
                if necessary, the parental involvement policies 
                described in this section; and''
      442. The House bill and the Senate amendment retain 
current law with no changes in subparagraphs (A) and (B). The 
House bill, but not the Senate amendment, contains a new 
subparagraph (C) regarding the requirement that 95 percent of 
funds must be distributed to schools served under this part.
      SR
      443. The House bill does not contain similar provisions.
      SR
      444. The House bill, but not the Senate amendment, 
conditions the provision of notice to parents in a language 
they can understand ``to the extent practicable'' and includes 
the format parents can understand.
      SR with an amendment to conform parental information with 
note #168
      445. The House bill does not contain this provision.
      HR
      446. The House bill and the Senate amendment retain 
current law with no substantive changes through paragraph 
(c)(3).
      LC
      447. The House bill, but not the Senate amendment, makes 
a number of changes to current law through subsection (e). The 
Senate amendment retains current law. The House bill strikes 
subparagraphs (B), (D) and (E) from current law in paragraph 
(4). In addition, the House bill eliminates school-parent 
compacts in current law in subsection (d), changes references 
to assessments and changes cross-references in paragraph (5).
      SR with amendment to strike paragraph (4) and insert the 
following:
            ``(4) provide parents of participating children--
                    ``(A) timely information about programs 
                under this part;
                    ``(B) a description and explanation of the 
                curriculum in use at the school, the forms of 
                academic assessment used to measure student 
                progress, and the proficiency levels students 
                are expected to meet; and
                    ``(C) if requested by parents, 
                opportunities for regular meetings to formulate 
                suggestions and to participate, as appropriate, 
                in decisions relating to the education of their 
                children, and respond to any such suggestions 
                as soon as practicably possible; and''.
      And with amendment to strike subsection (d) and to 
replace with current law subsection (d).
      448. Both the Senate amendment and the House bill strike 
the reference to National Education Goals. The House bill 
refers to ``participating parents'', while the Senate amendment 
refers to the parents of children served. The Senate amendment, 
but not the House bill, conditions the provision ``as 
appropriate''.
      HR
      449. The Senate amendment does not contain a similar 
provision. The House bill, but not the Senate amendment, makes 
a number of changes to current law. The Senate amendment 
retains current law with the exception of the addition of a new 
subparagraph (C). See next note.
      SR with an amendment to insert ``such as literacy 
training and using technology, as appropriate, to foster 
parental involvement;'' to the end of paragraph (2).
      450. The House bill does not contain a similar provision.
      SR
      451. The House bill, but not the Senate amendment, makes 
a number of changes to current law by changing ``home'' to 
``parents'' in paragraph (3), adding references in paragraph 
(4), adding ``parents'' in paragraph (5) (current law (7)), 
adding understandable language requirements in paragraph (6) 
(current law (8)), omitting current law paragraphs (6) and 
(12), and omitting words from paragraphs (9) (current law (11)) 
and (11) (current law (14)). The Senate amendment retains 
current law unchanged through paragraph (14).
      SR with amendment to strike paragraphs (4) and (10) and 
insert the following:
            ``(4) shall, to the extent feasible and 
        appropriate, coordinate and integrate parent 
        involvement programs and activities with Head Start, 
        Reading First, Early Reading First, Even Start, the 
        Home Instruction Programs for PreSchool Youngsters, the 
        Parents as Teachers Program, public pre-school and 
        other programs, and conduct other activities, such as 
        parent resource centers, that encourage and support in 
        more fully participating in the education of their 
        children.''
            ``(10) may arrange school meetings at a variety of 
        times or conduct in-home conferences between teachers 
        or other educators, who work directly with 
        participating children, with parents who are unable to 
        attend such conferences at school, in order to maximize 
        parental involvement and participation;''.
      452. The House bill and the Senate amendment are similar 
except that the House bill refers to the ``part'', while the 
Senate amendment refers to the ``section'', which limits the 
Senate amendment provision as compared to the House bill.
      SR
      453. The House bill, but not the Senate amendment, makes 
a change to current law. The Senate amendment retains current 
law.
      SR
      454. The House bill does not contain a similar provision.
      HR with an amendment to strike ``which may . . . 
technologies'' in (16)
      455. The House bill and the Senate amendment refer to 
``parents of migratory children''. Otherwise, the House bill, 
but not the Senate amendment, makes a number of changes to 
current law. The Senate amendment retains current law.
      SR
      456. The House bill does not contain similar provisions.
      HR with amendment to strike all after ``existence and 
purpose of such centers'' in subsection (g) and to retain 
subsection (h).
      457. The House bill, but not the Senate amendment, makes 
a number of changes to current law. The Senate amendment 
retains current law. In addition, see also Senate provisions 
regarding teacher quality programs in Title II.
      SR with amendment to strike ``fully'' before 
``qualified'' and insert ``highly'' in (a)(1) and to strike ``1 
year or more'' in (b)(1), insert ``State or local'' after 
``formal'' in (b)(1)(C), strike ``before the date that is 1 
year'' and strike ``3'' and replace with ``4'' after ``not 
later than'' in (c), strike ``only'' in (f)(2), strike ``fully 
qualified'' before ``teacher'' and insert ``consistent with 
1119'' after ``teacher'' in (f)(3)(A), strike (f)(3)(B) and 
strike (g)(2).
      Insert as new subsection (f)(3)(B) the following:
                    ``(B) may assume limited duties that are 
                assigned to similar personnel who are not so 
                paid, including duties beyond classroom 
                instruction or that do not benefit 
                participating children, so long as the amount 
                of time spent on such duties is the same 
                proportion of total work time as prevails with 
                respect to similar personnel at the same 
                school.''
      Insert as new subsections (a) and (b) and redesignate 
subsequent subsections accordingly (make changes indicated 
above first, strike subsection (a), and then add the following 
new language):

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

      ``(a) Teachers Qualifications and Measurable 
Objectives.--
            ``(1) In general.--Beginning with the first school 
        year after the effective date of this Act, each local 
        educational agency receiving assistance under this part 
        shall ensure that all teachers hired and teaching in a 
        program supported with funds under this part are highly 
        qualified.
            ``(2) State Plan.--As part of the plan described in 
        section 1111, each State educational agency receiving 
        assistance under this part shall develop and submit to 
        the Secretary a plan to ensure that all teachers 
        teaching within the State are highly qualified not 
        later than the end of the 2005-2006 school year. Such 
        plan shall establish annual measurable objectives for 
        each local educational agency and school, that, at a 
        minimum--
                    ``(A) shall include an annual increase in 
                the percentage of highly qualified teachers at 
                each local educational agency and school, to 
                ensure that all teachers teaching in core 
                academic subjects in each public elementary 
                school and secondary school are highly 
                qualified not later than the end of the 2005-
                2006 school year;
                    ``(B) shall include an annual increase in 
                the percentage of teachers who are receiving 
                high-quality professional development to enable 
                such teachers to become highly qualified and 
                successful classroom teachers; and
                    ``(C) may include such other measures as 
                the State educational agency deems appropriate 
                to increase teacher qualifications.
            ``(3) Local plan.--As part of the plan described in 
        section 1112, each local educational agency receiving 
        assistance under this part shall develop and submit to 
        the State educational agency a plan to ensure that all 
        teachers teaching within the local educational agency 
        and each school are highly qualified not later than the 
        end of the 2005-2006 school year.
      ``(b) Reports.--
            ``(1) Annual State and Local Reports.--
                    ``(A) Each State educational agency 
                described under subsection (a) shall require 
                each local educational agency receiving funds 
                under this part to publicly report, each year, 
                beginning in the 2002-2003 school year, the 
                annual progress of the local educational agency 
                as a whole and of each of its schools, in 
                meeting the measurable objectives described in 
                subsection (a)(2).
                    ``(B) Each State educational agency 
                receiving assistance under this part shall 
                prepare and submit each year, beginning in the 
                2002-2003 school year, a report to the 
                Secretary, describing the State educational 
                agency's progress in meeting the measurable 
                objectives described in subsection (a)(2).
                    ``(C) A State or local educational agency 
                may submit information from the reports 
                described in section 1111[(h)--LC] for the 
                purposes of this subsection, if such report is 
                modified, as may be necessary, to contain the 
                information required by this subsection, and 
                may submit such information as a part of the 
                reports required under section 1111[(h)--LC].
            ``(2) Annual reports by the secretary.--Each year, 
        beginning in the 2002-2003 school year, the Secretary 
        shall publicly report the annual progress of State 
        educational agencies, local educational agencies, and 
        schools in meeting the measurable objectives described 
        in subsection (a)(2), including the information 
        submitted pursuant to paragraph (1)(B).''
      458. The House bill, but not the Senate amendment, 
includes this provision, which the Senate amendment does not. 
The Senate amendment retains current law.
      (Notes 458-469).
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      459. The Senate amendment, but not the House bill, refers 
to supporting professional development activities and includes 
paraprofessionals, pupil services personnel, and parents. See 
note 40 regarding references to standards.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      460. The Senate amendment does not contain this 
provision.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      461. The House bill and the Senate amendment are similar 
with the exception that the House bill, but not the Senate 
amendment, refers to ``scientifically based'' research.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      462. The Senate amendment does not contain similar 
provisions and instead retains current law.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      463. The Senate amendment, but not the House bill, 
contains an exception to the prohibition.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      464. Both the House bill and the Senate amendment strike 
the reference to Title III of the Goals Act, which the House 
bill does by striking the entire subparagraph referenced by the 
Senate amendment.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      465. The Senate amendment does not contain similar 
provisions.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      466. The House bill and the Senate amendment are the same 
with minor wording differences.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      467. The House bill and the Senate amendment are 
substantially the same.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      468. The House bill does not contain a similar provision.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      469. The House bill, but not the Senate amendment, makes 
a number of changes to current law by redesignating current law 
paragraph (2) as subsection (c), omitting current law 
paragraphs (G), (H), and (I), changing the references to and 
uses of assessment assessments in paragraph (1), and by 
changing a change in subsection (d). The Senate amendment 
retains current law.
      HR/SR with an agreement to move redrafted definition of 
``Professional Development'' to General Provisions. (See 
Teacher Offer notes 174-193).
      470. Both the House bill and the Senate amendment strike 
the reference to Goals 2000. Otherwise, the House bill, but not 
the Senate amendment, makes changes to current law by referring 
to ``consolidation''. The Senate amendment retains current law.
      HR
      471. The House bill, but not the Senate amendment, makes 
a number of changes to current law by omitting current law 
paragraphs (1) and (d) of subsection (h). The Senate amendment 
retains current law.
      SR
      472. The House bill does not contain a similar provision.
      HR with amendment to strike subsection (j) and insert as 
new subsection (j):
      ``(j) Each local educational agency that receives funds 
under this part shall use not less than 5 percent or more than 
10 percent of such funds for each of fiscal years 2002 and 
2003, and not less than 5 percent of the funds for each 
subsequent fiscal year, for professional development activities 
to ensure that teachers who are not highly qualified become 
highly qualified not later than the end of the 2005-2006 school 
year.''
      473. The House bill and the Senate amendment are 
substantially the same regarding addressing the needs and 
ensuring participation of teachers and families in the 
activities of the sections indicated, with a technical 
differences in cross-references.
      LC
      474. The House bill and the Senate amendment retain 
current law with no changes.
      LC
      475. The House bill and the Senate amendment are the same 
regarding the timely provision of services and benefits.
      LC
      476. The House bill and the Senate amendment are similar 
regarding the LEA determination.
      LC
      477. The House bill, but not the Senate amendment, makes 
a change to current law by replacing ``shall'' with ``may''. 
The Senate amendment retains current law.
      HR
      478. The House bill and the Senate amendment retain 
current law with no changes.
      LC
      479. The House bill and the Senate amendment are the 
same.
      LC
      480. The House bill and the Senate amendment are the same 
with a minor wording difference.
      LC
      481. The House bill, but not the Senate amendment, makes 
changes to current law by referring to ``funds generated . . 
.''. The Senate amendment retains current law.
      HR
      482. The Senate amendment does not contain this 
provision.
      SR
      483. The House bill and the Senate amendment are similar 
with minor wording differences.
      LC
      484. The House bill, but not the Senate amendment, makes 
a number of changes to current law by including and describing 
``meetings''. The Senate amendment retains current law.
      SR
      485. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      486. The House bill and the Senate amendment are similar, 
except the Senate amendment, but not the House bill, contains a 
description of what the LEA shall do if a private school 
declines to participate and the requirement of the LEA to 
notify the private school each year of the opportunity to 
participate.
      HR/SR with amendment to strike paragraph (4) and insert 
new paragraph (4):
            ``(4) Documentation.--Each local educational agency 
        shall maintain in its records and provide to the State 
        educational agency a written affirmation signed by 
        officials of each participating private school that the 
        consultation required by this section has occurred. If 
        such officials do not provide such affirmation within a 
        reasonable period of time, the local educational agency 
        shall forward the documentation that such consultation 
        has taken place to the State educational agency. Such 
        officials who do not provide such affirmation may 
        appeal to the State educational agency, consistent with 
        subsection [#--LC], regarding any failure of the local 
        educational agency to provide the consultation required 
        by this section.''
      487. The House bill and the Senate amendment are similar, 
except the House bill refers the ``State'' throughout and the 
Senate amendment refers to the SEA throughout. In addition, 
there are other minor wording differences.
      LC
      488. The House contains the same provision in section 
1113(c)(2). See note 212.
      HR with an amendment to insert new subparagraph (D):
                    ``(D) using an equated measure of low-
                income correlated with the measure of low-
                income used to count public school children.''
      489. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      490. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      491. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC
      492. The House bill and the Senate amendment refer to the 
same provision in the references but the cross-references 
differ.
      LC
      493. The House bill and the Senate amendment are 
substantially the same with minor differences in wording.
      LC
      494. The House bill and the Senate amendment retain 
current law with no substantive changes.
      HR/SR to move language to FIE
      495. The House bill does not contain this provision.
      SR
      496. The House bill and the Senate amendment retain 
current law with no substantive changes.
      LC and SR with amendment to strike ``English language 
instruction'' and replace with ``language instruction 
educational program'' in paragraph (5)(A).
      497. The House bill and the Senate amendment have 
different section headings. In addition, the House bill, but 
not the Senate amendment, omits much of current law.
      SR
      498. The House bill, but not the Senate amendment, makes 
a number of changes to current law by adding references to 
Early Reading First throughout and adding paragraph (5). The 
Senate amendment retains current law.
      SR
      499. The House bill refers to the Head Start Act, while 
the Senate amendment refers to the Head Start Amendments of 
1998.
      SR
      500. The House bill does not contain similar provisions.
      HR with amendment to strike all language and add a new 
subsection (d):
      ``(d) Early Childhood Services.--A local educational 
agency may use funds received under this part to provide high 
quality preschool services.''
      SR--Limitation on funds
      501. The House bill does not contain this section.
      HR with amendment to strike all language and add a new 
subsection (e):
      ``(e) A local educational agency may use funds received 
under this part to extend the length of the school year.''

                     Title I, Part B--Reading First

      1. The House bill and the Senate amendment both authorize 
$900 million for FY 2002. In the out years, the House bill 
authorizes such sums for 4 succeeding fiscal years and the 
Senate amendment authorizes such sums for 6 succeeding fiscal 
years.
      HR with amendment to go to 5 succeeding years.
      2. The House bill and the Senate amendment authorize $75 
million in FY 2002. The House amendment authorizes such sums 
for 4 succeeding fiscal years and the Senate Amendment 
authorizes such sums for 6 succeeding fiscal years.
      SR with amendment to go to 5 succeeding years.
      3. The House bill authorizes $275 million for FY 2002 and 
such sums for 4 succeeding fiscal years and the Senate 
Amendment authorizes $250 million for FY 2002 and such sums for 
6 succeeding fiscal years.
      SR with an amendment to authorize $260 million for FY 
2002 and such sums for 5 succeeding years.
      4. The House bill authorizes such sums for FY 2002 and 
for the 4 succeeding fiscal years. The Senate amendment 
appropriates $25 million for FY 2002 and such sums for 6 
succeeding fiscal years.
      HR/SR (no authorization because moved to FIE).
      5. The Senate amendment authorizes $500 million for a 
school library program, the House bill does not.
      HR with an agreement to authorize program at $250 million 
(with a trigger for a formula grant at $100 million).
      6. The House bill includes findings, the Senate amendment 
does not.
      HR
      7. The House bill and the Senate amendment contain 
similar provisions.
      LC
      8. Identical
      LC
      9. The House bill includes reference to special education 
teachers.
      SR
      10. The House bill references ``classroom instruction.''
      HR (see note 11)
      11. The Senate amendment references ``classroom-based 
instructional assessments.''
      HR with amendment to strike ``screening . . . 
assessments'' and insert ``screening, diagnostic, and 
classroom-based instructional reading assessments.''
      LC make three terms uniform throughout Title I, part B.
      Insert ``learning systems,'' after ``effective,'' in (4).
      Insert ``including classroom-based materials to assist 
teachers in implementing the essential components of reading 
instruction,'' after ``instructional materials'' in (4).
      12. The Senate amendment includes ``family literacy 
programs''.
      HR
      13. The House bill requires states to show progress after 
the third year of funding, or risk losing future funding under 
Reading First. The Senate amendment does not include this 
provision.
      SR with an amendment to conform list of groups in 
(B)(i)(II) to list of groups for accountability purposes under 
Title I (A).
      14. The House bill reserves 1 percent for national 
activities. The Senate amendment authorizes 1 percent ($9 
million) funds for all national activities, including the 
external evaluation and technical assistance. In addition the 
House bill reserves $30 million or 3 percent, whichever is 
less, for the external evaluation.
      HR with an amendment to cap Reservation from 
appropriations for external evaluation at 2.5% or $25 million, 
which ever is less.
      15. Identical provision.
      HR with an amendment to insert the following language as 
new Senate (3):
            ``(3) beginning with 2004, shall reserve annually 
        not more than 10 percent or $90 million, whichever is 
        less, from funds appropriated for this part in excess 
        of the amount appropriated for FY 2003 to carry out 
        1207(d).''
      (Legislative language to be finalized after 
ratification).
      16. The House bill provides 80 percent of funds to States 
via formula with the remainder for the Secretary to distribute 
via competitive grants. The Senate amendment provides 100 
percent of funds to State via formula for the first two years, 
after which 25 percent is for competitive grants from the 
Secretary.
      HR with an amendment to strike (A) and (B).
      17. The House bill has a formula based on school age 
population below the poverty line. The Senate amendment uses a 
Title I formula.
      SR
      18. The House bill includes an allotment for Puerto Rico. 
The Senate has no comparable provision.
      SR
      19. The Senate amendment has no similar provisions.
      SR with an amendment to insert special rule:
      ``Special Rule.--In allocating funds to school districts 
which successfully compete for and win grants under Reading 
first, state educational agencies would allocate, at a minimum, 
to each district the same percentage such district receives of 
Title I dollars as compared to the title I amount received by 
all school districts. In awarding grants, SEA's shall give 
priority to school districts with 15 percent or greater poverty 
or 6,500 poor children.''
      (Legislative language to be finalized after 
ratification).
      LC--place appropriately.
      20. Identical provision.
      LC
      21. Identical provisions.
      HR
      22. Identical provisions.
      HR
      23. Identical provisions.
      HR
      24. Similar language with different headings.
      HR
      25. The House bill refers to eligible LEAs who have the 
``highest percentages''; The Senate amendment refers to ``a 
high number'' of students.
      HR with an amendment to strike ``a high'' and insert 
``the highest'' before ``numbers or percentages'' in (4)(A).
      26. The House bill requires LEAs to have a ``significant 
number'' of schools identified for school improvement and the 
Senate amendment requires LEAs to have at least one school in 
school improvement.''
      SR with an amendment to strike ``significant number'' and 
insert ``significant number or percentage''.
      27. The House bill (ii) uses a definition based on the 
``greatest number or percentages'' based on school age 
population below the poverty line, while the Senate amendment 
(iii) uses the ``number of children counted under Title I''.
      HR with an amendment to strike ``a high'' and insert 
``the highest''.
      28. Similar provision.
      SR with an amendment striking last clause, ``as 
determined . . . tools.''
      29. The House bill does not include (B).
      HR
      30. The House bill states LEAs ``may'' provide funds to 
schools meeting (A) and (B) and the Senate amendment states 
they ``shall'' provide funds to schools meeting (A), (B) or 
(C).
      LC
      31. The House bill uses ``highest percentages of 
students'' and the Senate amendment uses ``a high percentage of 
students.''
      SR with an amendment to insert ``or numbers'' after 
``percentages''
      32. Identical provisions except for different references.
      LC
      33. The House bill uses the ``greatest numbers or 
percentages of children from low income families'', and the 
Senate amendment uses ``a high percentage of children counted 
under Sec. 1124.''
      HR with an amendment to strike ``have a high percentage'' 
and insert ``has the highest percentage or number''.
      34. The House bill allows for ``selecting and 
administering assessments, and adds ``screening'', and 
``tools'' to the diagnostic assessments. The Senate amendment 
allows for ``selecting, developing and administering 
assessments.''
      SR with an amendment to strike ``rigorous diagnostic 
reading and screening assessment tools'' and insert 
``screening, diagnostic, and classroom-based instructional 
reading assessments.''
      35. The House bill references ``classroom'' reading 
instruction, the Senate amendment does not.
      SR with an amendment to insert ``learning system'' after 
``a'' and before ``program,'' and strike ``classroom''.
      Report Language:
      The Conferees intend State educational agencies and local 
educational agencies to be able to select from a wide variety 
of quality programs and interventions to fund under Reading 
First and Early Reading First, including small group and one to 
one tutoring, so long as those programs are based in research 
meeting the criteria in the definition of scientifically based 
reading research.
      36. The House bill refers to the ``essential components 
of reading instruction''. The Senate amendment refers to 
``major components of reading instruction.''
      SR
      37. Identical provision.
      LC
      38. Identical provision.
      LC
      39. Identical provision.
      LC
      40. Identical provision.
      LC
      41. The House bill adds ``(ee) are deficient in their 
phonemic awareness, phonics skills, vocabulary development, 
oral reading fluency, or comprehension strategies; or''. The 
Senate amendment has no similar provision.
      SR with an amendment to strike ``their . . . 
comprehension strategies,'' insert ``the essential components 
of reading instruction,''
      42. Identical provision.
      LC
      43. The Senate amendment refers to ``education technology 
such as software and other digital curricula,'' The House bill 
does not.
      HR
      44. The House bill refers to ``special education 
teachers'' of grades K-12. The Senate amendment does not.
      SR
      45. The House bill uses ``essential'' the Senate 
amendment uses ``major'' components.
      SR
      46. The House bill uses the term ``based''. The Senate 
amendment uses the term ``grounded.''
      SR
      47. The House bill adds ``screening'' and ``tools'' to 
classroom assessments.
      HR with an amendment to strike ``rigorous diagnostic 
reading assessments'' and insert ``screening, diagnostic, and 
classroom-based instructional reading assessments.''
      48. Identical provision.
      LC
      49. The Senate amendment has no similar provision.
      SR with an amendment to insert ``reading in'' before 
``accordance with''.
      50. The House bill refers to library services in (B)(ii).
      HR with an amendment to insert Prime Time Family Reading 
Time.
      51. The House bill and the Senate amendment include 
provisions related to providing training to volunteers. The 
House bill includes parents and is optional. The Senate 
amendment requires these activities.
      SR with an amendment to strike House (i) insert the 
following language:
      ``An LEA may use funds to provide training to parents and 
other individuals in the Essential Components of reading 
instruction who volunteer to be reading tutors for students to 
enable such volunteers to support instructional practices that 
are based on scientifically-based reading research and being 
used by the student's teacher.''
      Report Language:
      ``The Committee recognizes the value of research-based, 
structured learning systems that incorporate community and 
parental involvement in reading, targeted to low-performing K-
12 student populations, that are aligned to state standards and 
create a high level of accountability. Recently implemented 
programs, including the HOSTS Language Arts program, in Texas, 
Ohio, Florida, Delaware, and Michigan have impacted a critical 
mass of students, and assisted schools in significantly 
improving student reading levels, raising student achievement 
and test results, and overall school performance.
      ``It has been proven that these programs significantly 
reduce academic failure, promote school safety, and decrease 
dropout, substance abuse, teen pregnancy, crime, and 
unemployment rates. Specifically, the Committee believes these 
intensive, research-based learning systems that utilize teacher 
oversight, dramatically increase student achievement and 
implement the recommendations of the National Reading Panel.''
      52. The House bill and Senate amendment include 
provisions related to family literacy services and parental 
involvement. The House bill provision is optional. The Senate 
bill requires this activity.
      SR with an amendment to strike House (ii) and insert the 
following language:
      ``An LEA may use funds to assist parents, through the use 
of materials and reading programs, strategies and approaches, 
including family literacy services, that are based on 
scientifically-based reading research to encourage reading and 
support their child's reading development.''
      53. The House bill contains no similar provision. The 
Senate amendment makes collecting and summarizing data a use of 
funds.
      HR (move to ``required list'').
      54. The House bill has no similar provision.
      HR with an amendment to conform list of groups in 
(H)(ii)(I) to list of groups referenced in Section 1203 
(b)(2)(B)(i)(II)--(See note 13).
      55. The House bill has 2 percent and the Senate amendment 
has 5 percent.
      HR with an amendment to strike ``5'' and insert ``3.5''.
      56. The House bill allows not more than 15 percent for 
professional development. The Senate amendment allows ``not 
more than 20 percent for professional development; technical 
assistance, planning, administration and reporting. [(c)(6)]
      HR
      [Note.--The following language coordinates with notes 56-
75]
      ``(d) Other State Uses of Funds.--
            ``(1) In general.--A State educational agency that 
        receives a grant under this section may expend not more 
        than a total of 20 percent of the grant funds to carry 
        out the activities described in paragraphs (3), (4), 
        and (5).
            ``(2) Priority.--A State shall give priority to 
        carrying out the activities described in paragraphs 
        (3), (4), and (5) for schools described in subsection 
        (c)(6).
            ``(3) Professional development.--A State may expend 
        not less than 65 percent of the amount of the funds 
        made available under paragraph (1) to develop and 
        implement a program of professional development for 
        teachers, including special education teachers, of 
        grades kindergarten through 3 that--
                    ``(A) will prepare these teachers in all 
                the essential components of reading 
                instruction;
                    ``(B) shall include--
                            ``(i) information on instructional 
                        materials, programs, strategies, and 
                        approaches based on scientifically-
                        based reading research, including early 
                        intervention and reading remediation 
                        materials, programs, and approaches; 
                        and
                            ``(ii) instruction in the use of 
                        rigorous diagnostic reading and 
                        screening assessment tools and other 
                        procedures that effectively identify 
                        students who may be at risk for reading 
                        failure or who are having difficulty 
                        reading; and screening, diagnostic, and 
                        classroom-based instructional reading 
                        assessments; and
                    ``(C) shall be provided by eligible 
                professional development providers.
            ``(4) Technical assistance for local educational 
        agencies and schools.--A State may expend not more than 
        25 percent of the amount of the funds made available 
        under paragraph (1) for one or more of the following 
        authorized State activities--
                    ``(A) Assisting local educational agencies 
                in accomplishing the tasks required to design 
                and implement a program under this subpart, 
                including--
                            ``(i) selecting and implementing a 
                        program or programs of classroom 
                        reading instruction based on 
                        scientifically based reading research;
                            ``(ii) selecting rigorous 
                        diagnostic reading and screening 
                        assessment tools; and screening, 
                        diagnostic, and classroom-based 
                        instructional reading assessments; and
                            ``(iii) identifying eligible 
                        professional development providers to 
                        help prepare reading teachers to teach 
                        students using the programs and 
                        assessments described in subparagraphs 
                        (A) and (B).
                    ``(B) Providing expanded opportunities to 
                students in grades kindergarten through 3 
                within eligible local educational agencies for 
                receiving reading assistance from alternative 
                providers that includes--
                            ``(i) a rigorous diagnostic reading 
                        assessment; and screening, diagnostic, 
                        and classroom-based instructional 
                        reading assessments; and
                            ``(ii) as need is indicated by such 
                        assessments, instruction based on 
                        scientifically-based reading research 
                        that includes the essential components 
                        of reading instruction.
            ``(5) Planning, administration, and reporting.--
                    ``(A) In general.--A State may expend not 
                more than 10 percent of the amount of funds 
                made available under paragraph (1) for the 
                activities described in this paragraph.
                    ``(B) Planning and administration.--A State 
                that * * *
                    ``(C) Annual reporting.--* * *

           *       *       *       *       *       *       *

            ``(6) Funds not used for state-level activities.--
        Any portion of the funds described in paragraph (1) 
        that a State does not expend to carry out the 
        activities described in paragraphs (3), (4), and (5) 
        shall be expended for the purpose of making subgrants 
        in accordance with subsection (c).''
      57. The Senate amendment prioritizes eligible entities.
      HR--See note 56
      58. The House bill includes ``special education 
teachers.''
      HR with an amendment inserting ``special education 
teachers'' after ``teachers''. See note 56
      59. The Senate amendment allows ``100 percent of the 
state reservation to be used for professional development.
      HR--See note 56
      60. The House bill refers to the term ``essential'' 
components; The Senate amendment refers to ``major'' 
components.
      SR--See note 56
      61. Identical language
      HR with an amendment to strike ``grounded'' and insert 
``based''. See note 56
      62. The House bill includes ``screening assessment 
tools.''
      HR with the three terms (see note 11). See note 56
      63. Identical provision.
      LC--See note 56
      64. The House bill includes a section to strengthen and 
enhance professional development courses in reading, and to 
insure that such courses in reading instruction ensure that the 
courses meet the highest standards, prepare a report on the 
findings and make the information available to the public.
      SR with an amendment to strike ``professional 
development'' and insert ``pre-service education and training'' 
after ``enhance'' in (ii). See note 56
      65. The House bill requires certain unused funds to be 
allocated for reading grants. The Senate amendment has no 
comparable provision.
      SR with an amendment to insert ``not used for State level 
activities'' after ``funds'' and strike ``subparagraph (A)'' 
and insert ``(d)(1)''. See note 56
      66. The Senate amendment allows for up to 25 percent of 
the State reservation to be used for technical assistance. This 
would equal 5 percent of the total state allotment. The House 
bill allows for up to 3 percent of the state allotment to be 
used for such purposes.
      HR with an amendment to insert:
      15 for PD
      3 for TA--Up to 5 for TA
      2 for admin
      (See note 56 for language (4))
      67. The House bill refers to the implementation of a 
``classroom reading program.'' The Senate amendment does not 
refer to ``classroom instruction.''
      HR--See note 56
      68. The House bill uses ``based'' the Senate amendment 
uses ``grounded.''
      SR with an amendment to strike ``classroom''. See note 56
      69. The House bill adds ``screening'' and ``tools'' to 
diagnostic assessments.
      SR with an amendment to use three words (see note 11). 
See note 56
      70. Identical provision.
      LC--See note 56
      71. Similar provision.
      HR--See note 56
      72. The House bill includes ``screening'' and ``tools.''.
      HR with amendment to strike ``rigorous . . . tools'' and 
insert three terms (see notes 11 and 56).
      73. The House bill refers to ``essential'' components; 
the Senate amendment refers to ``major'' components.
      SR--See note 56
      74. The Senate amendment allows for up to 25 percent of 
the state reservation to be used for planning, administration 
and reporting. The House bill allows for up to 2 percent for 
similar activities.
      HR with an amendment (see note 56 for language (5)).
      75. The Senate amendment provides for ``collecting and 
summarizing data to document the effectiveness of this subpart 
and to stimulate improvement by identifying LEAs that produce 
significant gains in reading achievement. The House bill 
requires evaluation on a 'regular basis' to determine if more 
children are reading at or above grade level.
      SR--See note 56
      76. The Senate amendment requires additional data. The 
House bill does not.
      SR with an amendment to insert House language from Sec. 
1203 (B)(i)(II).
                            ``(ii) Information included.--The 
                        progress report shall include 
                        information on the progress the State, 
                        and local educational agencies within 
                        the State, are making in reducing the 
                        number of students served under this 
                        subpart in the first and second grades 
                        who are reading below grade level, as 
                        demonstrated by such information as 
                        teacher reports and school evaluations 
                        of mastery of the essential components 
                        of reading instruction. The report 
                        shall also include evidence from the 
                        State and its local educational 
                        agencies that they have significantly 
                        increased the number of students 
                        reading at grade level or above, 
                        significantly increased the percentages 
                        of students in ethnic, racial, and low-
                        income populations who are reading at 
                        grade level or above, and successfully 
                        implemented this subpart.''
      77. Identical provision.
      LC see note 76.
      78. The House bill and the Senate amendment require the 
state to annually report on the implementation of this program.
      SR with an amendment to conform list of groups in 
(d)(C)(ii) to list of groups referenced in Section 1203 
(b)(2)(B)(i)(II)--(See note 13).
      See note 76.
      79. The House bill refers to ``set forth'' the Senate 
amendment refers to ``reported.''.
      HR
      80. Identical provision.
      HR
      81. The House bill has no comparable ``Prime Time Family 
Reading Time (paragraph (6)).
      HR with an amendment to move to Note 50.
      Report Language:
      The conferees intend that funding for this activity be 
used for a library humanities-based program consisting of 
reading, discussion and storytelling that helps low-literacy 
families bond around the act of reading and learning together 
and fosters high academic expectations and achievement for 
children and their parents.
      82. The Senate amendment does not have a comparable 
``Recommendations Section.''
      HR
      83. Identical provision.
      LC
      84. The House bill does not have any comparable 
provision.
      HR
      85. Identical provision.
      HR/LC
      86. Identical provision.
      HR/LC
      87. Identical provision.
      HR with an amendment to insert the following language: 
``including participation, if requested, of State and Local 
Education Agencies in all national evaluations under this 
subpart.'' after ``activities under this subpart'' in (1)(B).
      88. The House bill has no comparable provision.
      HR/SR with an amendment to insert the following language 
(correlates to notes 88-94):
      ``2. A State plan containing a description of the 
following:
            ``A. How the State will assist local educational 
        agencies in identifying rigorous diagnostic reading 
        assessments.
            ``B. How the State will assist local educational 
        agencies in identifying instructional materials, 
        programs, strategies, and approaches, grounded on 
        scientifically based reading research, including early 
        intervention and reading remediation materials, 
        programs and approaches.
            ``C. How the State educational agency will ensure 
        that professional development activities related to 
        reading instruction and provided under this subpart 
        are--
                    ``i. Coordinated with other Federal, State 
                and local level funds and used effectively to 
                improve instructional practices for reading; 
                and
                    ``ii. Based on scientifically based reading 
                research.
            ``D. How the activities assisted under this subpart 
        will address the needs of teachers and other 
        instructional staff in implementing the essential 
        components of reading instruction.
            ``E. How subgrants made by the State educational 
        agency under this subpart will meet the requirements of 
        this subpart, including how the State educational 
        agency will ensure that local educational agencies 
        receiving subgrants under this subpart will use 
        practices based on scientifically based reading 
        research.
            ``F. How the State educational agency will, to the 
        extent practicable, make grants to subgrantees in both 
        rural and urban areas.
            ``G. How the State educational agency will build 
        on, and promote coordination among literacy programs in 
        the State (including federally funded programs such as 
        the Adult Education and Family Literacy Act, the 
        Individuals with Disabilities Education Act, and Early 
        Reading First), in order to increase the effectiveness 
        of the programs in improving reading for adults and 
        children and to avoid duplication of the efforts of the 
        program; and
            ``H. How the State will assess and evaluate, on a 
        regular basis, local educational agency activities 
        assisted under this subpart, with respect to whether 
        they have been effective in achieving the purposes of 
        this subpart.
            ``I. Any other information that the Secretary may 
        reasonable require.''
      89. Identical provision.
      HR/SR with an amendment (see note 88).
      90. Similar provision.
      HR/SR with an amendment (see note 88).
      91. Identical provision.
      HR/SR with an amendment (see note 88).
      92. Similar provision.
      HR/SR with an amendment (see note 88).
      93. The Senate amendment has no comparable provision on 
participation in the national external evaluation.
      HR/SR with an amendment (see note 88).
      94. The House bill has no comparable sections (C) through 
(H).
      HR/SR with an amendment (see note 88).
      95. Identical provision.
      HR with an amendment to insert ``including an individual 
who has expertise in student screening, diagnostic, and 
classroom assessments of the essential components of reading 
instruction,'' before ``based on scientifically based reading 
research'' in (B).
      96. Similar provisions.
      SR
      97. The House bill refers to a special education teacher. 
The Senate amendment does not.
      SR
      98. The House bill has no comparable provision.
      HR with an amendment to strike ``notwithstanding . . . 
paragraph (1)'' and insert in its place, ``consistent with the 
provisions of this part.''
      99. The House bill gives the Secretary the authority to 
allot 20 percent for awarding 2 year competitive grants after 
approval of the 5 year formula grant application of the State. 
The Senate amendment, beginning in 2004, authorizes the 
Secretary to reserve 25 percent of funds for competitive 
grants.
      HR/SR with an amendment to:
          Strike House (a) and (b) and (b)(1) and (b)(2);
          Strike Senate (a) and (b)(1);
          Strike ``Competitive'' and insert ``Targeted 
        Assistance'' in Senate (2);
          Strike Senate (A) and (3);
          Keep Senate (B), and (5);
          Keep Senate (C) and strike ``screening ... 
        assessments and insert three terms;
          Keep Senate (4) and strike ``or (3)'';
          Conform (b)(2)(B) to list of groups for 
        accountability purposes under Title I (A).
      **Senate (B) on page 20--HR/LC**
      100. The House has the expert Peer Review Panel recommend 
applicants to the Secretary for the awarding of discretionary 
grants. The Senate amendment has no comparable provision.
      SR with an amendment to strike House (A) and (B) and 
insert Senate (i) (ii) and strike ``or (3).'' in (ii).
      101. The House bill has no comparable provision.
      HR
      102. The Senate amendment has no comparable provision.
      HR
      103. Similar provision.
      LC
      104. Similar provision.
      SR
      105. The Senate amendment uses the ``adequate yearly 
progress'' standard.
      SR with an amendment to reference criteria in 1223(B)(2).
      106. Similar provisions.
      HR/SR and delete.
      107. The House bill has no similar provision.
      SR
      108. Similar provision.
      SR/LC
      109. The House bill includes a definition of ``state.'' 
The Senate amendment does not have definition in this subpart 
but states that the General Provisions definitions apply.
      HR
      110. There is no comparable provision in the House bill.
      SR
      111. There are no comparable provisions in the House 
bill.
      SR
      112. Similar Provision.
      SR with an amendment to strike ``shall use only . . . 
this subpart and'' in (b); Strike ``rigorous . . . tools'' in 
(6) and insert ``screening, diagnostic, and classroom-based 
instructional reading assessments.''
      113. The Senate amendment includes, at a minimum, the 
evaluation of services, provided to children under this subpart 
with respect to their referral and eligibility for special 
education services under IDEA (based on their difficulties in 
learning to read).
      HR/SR with an amendment to insert the following combined 
and new language:
      ``Sec. 1207. National Activities.--From funds reserved 
under section 1203(b)(1)(D) the Secretary--
            ``(a) may provide technical assistance in achieving 
        the purposes of this subpart to States, local 
        educational agencies, and schools requesting such 
        assistance.
            ``(b) shall, at a minimum, evaluate the impact of 
        services provided to children under this subpart with 
        respect to their referral to and eligibility for 
        special education services under the Individuals with 
        Disabilities Education Act (based on their difficulties 
        learning to read).
            ``(c) shall carry out the External Evaluation as 
        described in section 1206.
            ``(d) From funds reserved under Sec. 1203(b)(1)(E), 
        shall establish Competitive Targeted Assistance 
        Grants--
                    ``(1) to eligible high-need local 
                educational agencies which meet the criteria 
                described in section 1203(c)(4) within the 
                State in which the LEA resides to carry out the 
                activities described in section 1203(c)(7)(A) 
                and (B);
                    ``(2) based on criteria which the Secretary 
                shall develop for the awarding of funds 
                described under this subsection, which shall at 
                a minimum, shall include a process of peer 
                review as described under section 1204(c)(2), 
                and be limited to one year of funding per 
                eligible high need LEA unless such LEA can 
                demonstrate significant progress in meeting the 
                goals established in section 1205(d)(4)(C).''
      114. Identical provisions.
      LC
      115. Similar provisions.
      HR with an amendment to insert the following after (b). 
Insert House (b)(1)(B); insert''
                    ``(C) For the purpose of administering the 
                funds reserved under Sec. 1203(b)(E) to carry 
                out this section, the provisions of Sec. 242 of 
                P.L. 105-220 shall apply.''
      116. The House bill specifies that ``special education 
Teachers'' are included, the Senate amendment does not.
      SR
      117. The House bill refers to ``essential'' components; 
the Senate amendment refers to ``major'' components.
      SR
      118. The House bill refers to ``explicit'' systematic 
instruction; the Senate amendment does not.
      SR
      119. The House bill includes ``oral'' reading fluency and 
the Senate amendment includes ``reading fluency.''
      HR with an amendment to insert ``including oral reading 
skills'' after ``reading fluency,''.
      120. Identical provision.
      LC
      121. Identical provision.
      LC
      122. The House bill and Senate amendment are similar. The 
House bill requires that assessments measure progress in four 
areas, and the Senate bill requires that assessments measure 
progress in at least one of four areas. The House bill, but not 
the Senate amendment adds ``skills'' after phonics.
      HR/SR with an amendment to insert the following language:
            ``(5) Rigorous screening, diagnostic, classroom-
        based reading assessments.--
                    ``The term `screening reading assessment' 
                means assessments that are--
                            ``(A) valid, reliable, and based on 
                        scientifically-based reading research;
                            ``(B) a brief procedure designed as 
                        a first step in identifying children 
                        who may be at high risk for delayed 
                        development or academic failure and in 
                        need of further diagnosis of their need 
                        for special or additional reading 
                        instruction.
                    ``The term ``diagnostic reading 
                assessment'' means assessments that are--
                            ``(A) valid, reliable, and based on 
                        scientifically-based reading research;
                            ``(B) used for the purpose of
                                    ``(i) identifying a child's 
                                specific areas of strengths and 
                                weaknesses so that they have 
                                learned to read by the end of 
                                the third grade; and
                                    ``(ii) determining any 
                                difficulties that a child may 
                                have in learning to read and 
                                the potential cause of such 
                                difficulties;
                                    ``(iii) helping to 
                                determine possible reading 
                                intervention strategies, and 
                                related special needs.
                    ``The term ``classroom-based instructional 
                assessment'' means--
                            ``(A) evaluations of children's 
                        learning based on systematic 
                        observations by teachers of children 
                        performing academic tasks that are part 
                        of their daily classroom experience; 
                        and
                            ``(B) are used to improve 
                        instruction in reading, including 
                        classroom instruction.''
      123. The Senate has no comparable provision.
      HR/SR with an amendment (See note 122).
      124. Identical provision.
      LC
      125. There are similar purposes in both the House bill 
and the Senate amendment.
      LC
      Insert the following language for notes 125-134:
      ``Sec 1221. Purposes.
      ``The purposes of this subpart are as follows:
            ``(1) To support local efforts to enhance the early 
        language, literacy, and pre-reading development of 
        preschool age children, particularly those from low-
        income families, through strategies and professional 
        development that are based on scientifically based 
        research.
            ``(2) To provide preschool age children with 
        cognitive learning opportunities in high-quality 
        language and literature-rich environments, so that the 
        children can attain the fundamental knowledge and 
        skills necessary for optimal reading development in 
        kindergarten and beyond.
            ``(3) To demonstrate language and literacy 
        activities based on scientifically based research that 
        supports the age-appropriate development of--
                    ``(A) Recognition, leading to automatic 
                recognition, of letters of the alphabet, 
                knowledge of letter sounds, the blending of 
                sounds, and the use of increasingly complex 
                vocabulary;
                    ``(B) an understanding that written 
                language is composed of phonemes and letters 
                each representing one or more speech sounds 
                that in combination make up syllables, words 
                and sentences.
                    ``(C) spoken language, including vocabulary 
                and oral comprehension abilities; and
                    ``(D) knowledge of the purposes and 
                conventions of print.
            ``(4) To use screening assessments to effectively 
        identify preschool children who may be at risk for 
        reading failure.
            ``(5) To integrate such scientific reading 
        research-based instructional materials and literacy 
        activities with existing programs of preschools, child 
        care agencies and programs, and Head Start centers, and 
        with family literacy services.''
      126. The House bill purposes limit development of pre-
reading skills to children ages 3-5 and the Senate amendment 
uses broader terminology of ``preschool age children.'' This 
difference repeats throughout Early Reading first subpart.
      HR--See note 125
      127. The House bill purposes include assessment/screening 
of children and the Senate amendment does not.
      HR--See note 125
      128. Similar provisions. The items in the Senate 
amendment are re-ordered to compare with similar items in the 
House bill.
      HR with an amendment to strike ``understanding . . . 
language;'' and insert ``knowledge of letter sounds, blending 
of sounds, and use of increasingly complex vocabulary;'' and 
insert ``Recognition, leading to'' before ``automatic 
recognition''.--See note 125
      129. Similar provision.
      HR/SR--See note 125
      130. Identical provision.
      HR with an amendment to insert ``including vocabulary'' 
after ``spoken language''.--See note 125
      131. The House bill requires knowledge of ``semiotic 
concepts''. The Senate amendment specifies knowledge of 
``purposes and conventions of print.''
      HR--See note 125
      132. The Senate amendment does not have this provision 
for screening tools.
      SR with an amendment to insert ``reading'' after 
``scientific'' and strike ``tools'' and insert ``assessments'' 
in (3).--See note 125
      133. Similar provision.
      SR--See note 125
      134. Identical provision.
      SR with an amendment to insert ``reading'' after 
``scientific''.--See note 125
      135. Similar provision.
      HR
      136. The Senate amendment allows multiple LEA's to apply 
as a single applicant and the House bill does not.
      HR
      137. The House bill requires demographic information on 
communities served by programs and the Senate amendment 
requires demographic information on the children served by 
programs.
      HR
      138. The House bill specifies oral language environments 
and the Senate amendment does not.
      SR with an amendment to strike ``aged 3 through 5'' and 
inserting ``preschool age'' before ``children'' in House (2). 
take the Senate (2) inserting ``reading'' after 
``scientifically based''; drop both (3); take the House (4); 
take the Senate (4); take House (5); drop Senate (5); drop 
House (6), (8) (9); take House (7); take Senate (6); take 
Senate (7) and (8); drop House (10).
      139. Similar provision.
      LC
      140. Similar provision.
      LC
      141. Similar provision.
      LC
      142. This provision is not in the House bill
      LC
      143. This provision is not in the Senate amendment.
      LC
      144. The Senate amendment (7) is similar to the House 
bill (9) but the Senate amendment evaluates the success in 
enhancing ``early language, literacy, and pre-reading 
development'' and the House bill states ``early language and 
reading development.''
      LC
      145. The House bill uses the same peer review panel 
convened for the Reading First grants and the Senate amendment 
has a separate peer review provision.
      SR with an amendment to insert after ``under section 
1204(c)(2),'' the following language: ``except such panel shall 
include, at a minimum, three individuals, selected from the 
entities described in (ii), (iii), and (iv), who are experts in 
early reading development and early childhood development.''
      146. The House bill includes ``oral'' language skills.
      HR
      147. The Senate amendment requires 5 activities.
      HR with an amendment (notes 147-153): take Senate (B); 
take Senate (iii) (amended like note 128); take Senate (i); 
take Senate (iv).
      148. Similar provision.
      LC--see note 147
      149. The Senate amendment (B) is similar to the House 
bill (B) but the Senate amendment describes professional 
development being for ``staff'' and the House bill describes 
professional development as being for ``teachers.''
      LC--see note 147
      150. Similar provision.
      HR--see note 147, (amended like note 128).
      151. The House bill notes in (ii) that ``words are made 
up of small segments of speech sounds.''
      HR/SR with an amendment to insert the following language 
as new (ii):
      ``Understanding that written language is composed of 
phonemes and letters each representing one or more speech 
sounds that in combination make up syllables, words and 
sentences.''
      152. Similar provision.
      HR--see note 147
      153. The Senate amendment refers to knowledge of 
``purposes and conventions of print.'' The House bill refers to 
understanding of ``semiotic concepts.''
      HR--see note 147
      154. The Senate amendment refers to subparagraph (B ) in 
the House bill which lists the skills to be taught to children.
      HR
      155. Similar provision.
      HR
      156. Similar provision.
      HR with an amendment to insert the following language:

``SEC. 1243. FEDERAL ADMINISTRATION.

      ``The Secretary shall consult with the Secretary of 
Health and Human Services in order to coordinate the activities 
undertaken under this subpart with preschool age programs 
administered by the Department of Health and Human Services.''
      157. The House bill has no comparable section.
      HR with an amendment to insert Senate lead-in (``Each 
eligible . . . a description of--'') and to strike Senate (1), 
(3), and (2) and to insert House (1), (2), (3).
      158. The House bill requires information on staff 
qualifications and the Senate amendment does not.
      SR
      159. The House bill has no similar provision.
      HR
      160. The House bill allows up to $1 million for 
evaluation.
      HR with an amendment to insert the following language:

``SEC. 1246. EVALUATION.

      ``From the total amount appropriated under section 
1002(b)(3) for the period beginning October 1, 2002 and ending 
September 30, 2006, the Secretary shall reserve not more than 
$3,000,000 to conduct an independent evaluation of the 
effectiveness of this subpart. An interim Report shall be sent 
to the House Education and the Workforce Committee and the 
Senate Health, Education, Labor, and Pensions Committee by 
October 1, 2004, with a final Report due no later than 
September 30, 2006. The Report shall include information on how 
the grant recipients under this subpart are improving the pre-
reading skills of pre-school children; the effectiveness of the 
professional development program; how early childhood teachers 
are being prepared with scientifically based reading research 
of early reading development; what activities and instructional 
practices are most effective; how scientifically research-based 
pre-reading instructional materials and literacy activities are 
being integrated into pre-schools, child care agencies and 
programs, and Head Start Centers and Family Literacy programs, 
and any recommendations on strengthening, or modifying this 
subpart.''
      161. The Senate amendment allows up to $5 million for 
evaluation.
      LC--see note 160.
      162. The House bill has no comparable provision.
      HR
      163. The House bill makes technical changes to Even 
Start. The Senate amendment does not.
      SR
      164. The House bill transfers the program to a different 
Title, makes minor changes, and continues current law. The 
Senate amendment rewrites the program.
      HR/SR with an agreement to move to Subpart 5 of Title V, 
Part D (FIE).
      Report Language:
      In the 2000 rate case, the U.S. Postal Service levied an 
18% increase on mail sent under Bound Printed Matter (BPM), the 
class of mail under which books are sent to our nation's 
schools, libraries, literacy, and early childhood programs. 
This increase, the highest of any category, has had a direct 
impact on the ability of several literacy and free book 
programs to deliver their services. It has come to the 
attention of the Conferees that the U.S. Postal Service intends 
to again increase the rates charged for bound printed matter, 
including books. Given the educational importance of the 100 
million books shipped to children annually under this rate, the 
Conferees urge the U.S. Postal Service and Congress to take 
action to ensure the continued affordability of books for all 
of America's children.
      165. Virtually identical purpose.
      LC
      166. Virtually identical provisions.
      LC
      167. Virtually identical provisions for requirements of 
contract.
      LC
      168. Virtually identical provisions.
      LC
      169. Identical provisions.
      LC
      170. Identical provisions.
      LC
      171. Virtually identical provisions.
      LC
      172. The Senate amendment contains no similar provision.
      SR
      173. The House bill authorizes such sums as may be 
necessary for fiscal year 2002 and each of the 4 succeeding 
fiscal years. The Senate amendment authorizes $25 million for 
FY 02 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
      HR/SR (no authorization because moved to FIE).

            Title I, Part C--Education of Migratory Children

      1. The Senate amendment, but not the House bill, amends 
the program purpose by adding two paragraphs that state that: 
(1) Migrant students should not be penalized because of 
differences between states in curriculum, graduation 
requirements and standards; and (2) Migrant students have the 
same opportunities as all children to meet academic achievement 
and content standards.
      HR
      2. The House bill, but not the Senate amendment, modifies 
the formula for distributing funds to the States by basing a 
State's child count on the number of eligible children, aged 3 
through 21, residing in the State during the previous year, 
plus the number of children who received services in summer or 
intersession programs provided by the State. Only funding above 
the amount appropriated for fiscal year 2002 will be 
distributed via the new formula.
      SR with an amendment to require the Secretary to take 
into account the amount of time children spend in a particular 
program.
      ``In changing the formula which allocates funds to the 
States for migrant education programs, the Conferees are 
concerned that some children could be double counted, thereby 
inaccurately inflating allocations to some States. To address 
this situation, the Conferees have amended section 1303 (e) to 
require the Secretary to develop a procedure to take into 
account the amount of time a child may spend in a particular 
program. The Conferees strongly encourage the Secretary to 
develop such a procedure and utilize it when making allocations 
to the States.''
      3. The House bill, but not the Senate amendment, sets and 
annually increases the minimum allocation amounts for Puerto 
Rico.
      SR with an amendment to retain subsection (d).
      4. The House bill and the Senate amendment eliminate the 
reference to a comprehensive plan and replace it with language 
to ensure migrant children are provided with the full range of 
services from all applicable government programs and that 
coordination will take place between the various levels of 
government programs, including the federal ESEA Title III 
program.
      SR
      5. The House bill, but not the Senate amendment, requires 
the integration of services under the Migrant education program 
with other programs, and adds a requirement for measurable 
program goals and outcomes.
      SR
      6. The House bill, but not the Senate amendment, modifies 
the manner in which subgrants to LEAs must be allocated.
      SR
      7. The House bill and the Senate amendment changes to the 
Assurances subsection of current law are the same with 
exceptions indicated in notes 8 and 9.
      LC
      8. The Senate amendment does not have this provision, 
which is technical.
      SR
      9. The House bill does not have this provision.
      HR
      10. The House bill, but not the Senate amendment, 
eliminates the requirement that States develop both a 
comprehensive service delivery plan and a program application.
      HR
      11. The Senate amendment, but not the House bill, places 
conditions on whether States may submit consolidated 
applications.
      HR
      12. The House bill does not have the Senate provision 
regarding special education needs of migrant students.
      HR
      13. The House bill, but not the Senate amendment, changes 
current law to clarify State flexibility in determining the 
activities to be provided as long as funds are first used to 
meet the identified educational needs of migrant children.
      SR with an amendment to add ``where applicable'' in (a) 
(1) in first sentence after ``agency''.
      14. The House bill, but not the Senate amendment, 
requires the Secretary of Education to assist States in 
developing effective methods to transfer student records and in 
determining the number of migrant children in each State. Under 
the House bill, the Secretary is also required to work with 
States to determine the minimum data elements for records to be 
maintained and transferred and to assist States in linking 
their records systems for electronic maintenance and transfer.
      HR/SR with an amendment to Sec. 124. Coordination of 
Migrant Education Activities:
      ``(a) Duration.--Section 1308 (a)(2) [20 U.S.C. 6398 
(a)(2)] is amended by striking ``subpart'' and inserting 
``subsection''.
      ``(b) Student Records.--Section 1308 (b) (20 U.S.C. 6398 
(b)) is amended to read as follows:
      `` `(b) Student Records.--
      `` `(1) Assistance.--The Secretary shall assist States in 
developing effective methods for the electronic transfer of 
student records and in determining the number of migratory 
children in each State.' ''
      15. The Senate amendment, but not the House bill, 
requires the Secretary to establish a system for electronically 
transferring student records and lists possible data elements.
      HR/SR with an amendment:
            ``(2) Information system.--(A) The Secretary, in 
        consultation with the States, shall ensure the linkage 
        of migrant student record systems for the purpose of 
        electronically exchanging, among the States, health and 
        educational information regarding all migrant students. 
        The Secretary shall ensure such linkage in a cost-
        effective manner, utilizing systems used by the States 
        prior to, or developed after, the date of enactment of 
        [this Act], and shall determine the minimum data 
        elements that each State receiving funds under this 
        part shall collect and maintain. Such elements may 
        include-
                    ``(i) immunization records and other health 
                information;
                    ``(ii) elementary and secondary academic 
                history (including partial credit), credit 
                accrual, and results from State assessments 
                required under this title;
                    ``(iii) other academic information 
                essential to ensuring that migrant children 
                achieve to high standards; and
                    ``(iv) eligibility for services under the 
                Individuals with Disabilities Education Act.
        Ensuring the timely exchange of important education and 
        health information for migrant students is critically 
        important. Although some States have developed and 
        implemented their own student records systems, current 
        failures and interruptions in records transfer result 
        in delays in school enrollment and academic services 
        for migrant students, discrepancies in student 
        placement, and repeat immunizations of migrant 
        children. It is the Conferees' intent to link existing 
        systems of interstate migrant records transfer, and 
        expand their function to enable the electronic transfer 
        of records among all States. Section 1308(b)(2) 
        provides federal leadership to accomplish this 
        objective by requiring the Secretary to electronically 
        link migrant student records. Such linkage will build 
        upon existing and future systems for records transfer 
        and will facilitate a timely exchange of health and 
        academic information.''
      16. The House bill, but not the Senate amendment, 
requires SEAs and LEAs to make migrant student records 
available at no cost to another SEA or LEA requesting such 
records.
      SR
      17. The House bill does not contain the Senate provisions 
in subparagraphs (B), (C), (D) regarding the solicitation of 
comments on the migrant student record transfer system, 
deadline for operation of the system, and the reservation of 
funds for the Secretary in establishing the system.
      HR/SR with an amendment:
                    ``(B) The Secretary shall publish, after 
                consultation described in subparagraph (A), a 
                notice in the Federal Register seeking public 
                comment on the proposed data elements that each 
                State receiving funds under this part shall be 
                required to collect for purposes of electronic 
                transfer of migrant student information, and 
                the requirements that States must meet for 
                immediate electronic access to such 
                information. The publishing of such notice 
                shall take place not later than 120 days after 
                the date of enactment of [this Act].''
      18. The House bill does not contain the Senate amendment 
provision requiring a report be submitted to Congress by the 
Secretary regarding the findings and recommendations pertaining 
to the migrant student record transfer system.
      HR with an amendment:
            ``(4) Report to Congress.--Not later than April 30, 
        2003, the Secretary shall report to the Committee on 
        Health, Education, Labor, and Pensions of the Senate 
        and the Committee on Education and the Workforce of the 
        House of Representatives the Secretary's finding and 
        the recommendations regarding the maintenance and 
        transfer of health and educational information for 
        migrant students by the States, and shall include in 
        this report--
                    ``(A) a review of the progress of States in 
                developing and linking electronic records 
                transfer systems;
                    ``(B) recommendations for the developments 
                and linkage of such systems; and
                    ``(C) recommendations for measures that may 
                be taken to ensure the continuity of services 
                provided for migrant students.''
      19. The Senate amendment language in this subparagraph is 
similar to the House bill language in subsection (b)(1) 
regarding assistance to States in transferring records and 
determining the number of migrant students. (See note 13.) 
However, the Senate amendment retains the current law 
provisions regarding the Secretary's need to help States 
develop methods to count full-time equivalent students, which 
the House bill does not.
      HR/SR with an amendment:
      Section 1308(b) (20 U.S.C. 6398(b)) is amended as 
follows:
      ``(b) Student Records.--
            (1) Assistance.--The Secretary shall assist States 
        in developing effective methods for the electronic 
        transfer of student records and in determining the 
        number of migratory children in each State.''
      20. The House bill and the Senate amendment are the same.
      LC
      21. The House bill and the Senate amendment are the same 
regarding the maximum amount the Secretary may award to SEAs 
for incentive grants. The House bill, but not the Senate 
amendment, references consortium arrangements with other States 
or appropriate entities that the Secretary determines will 
improve the delivery of services to migratory children.
      SR
      22. The Senate amendment, but not the House bill, 
requires NCES to collect data on migratory children.
      HR
      Authorization levels: House at $420 million and Senate at 
$400 million-
      SR with an amendment to strike ``$420 million'' and 
insert ``$410 million.''

             Title I, Part D--Neglected or Delinquent Youth

      1. The House bill and Senate amendment have different 
headings.
      HR
      2. The House bill, but not the Senate amendment, contains 
two findings regarding youth returning from correctional 
facilities and pregnant and parenting teenagers.
      HR
      3. The Senate amendment, but not the House bill, moves 
the PURPOSE AND PROGRAM AUTHORIZED section under Subpart 1 of 
the Senate amendment.
      HR with an amendment to strike ``of Dropping out'' in the 
title of Subpart 1, so that it states: ``Prevention and 
Intervention Programs for Children and Youth Who are Neglected, 
Delinquent, or at Risk.''
      LC should conform language throughout this part to ensure 
that it conforms with neglected, delinquent or at risk kids--
while striking reference to ``drop-outs'' unless indicated 
otherwise.
      4. The Senate amendment, but not the House bill, makes 
minor wording changes to the Purpose and Program Authorized 
section.
      HR/LC
      5. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes, related to the 
organizational structure of the Senate amendment.
      HR
      6. The Senate amendment, but not the House bill, 
organizes this part into 3 chapters of subpart 1. Also, the 
Senate amendment, but not the House bill, makes minor 
conforming, technical wording changes, related to the 
organizational structure of the Senate amendment.
      HR
      7. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes, related to the 
organizational structure of the Senate amendment.
      HR
      8. The House bill and Senate amendment provisions in 
subsection (b) regarding Subgrants to State Agencies in Puerto 
Rico are the same.
      SR
      9. The House bill, but not the Senate amendment, sets the 
minimum allocation amounts Puerto Rico will receive.
      SR
      10. The House bill, but not the Senate amendment, 
provides for a minimum amount that shall be appropriated to 
Puerto Rico contingent upon all 50 States and the District of 
Columbia receiving the same amount as they did the previous 
year. If not, then Puerto Rico would receive funds based on the 
greater percentage provided for in paragraph (1)(A) or the 
percentage of the previous fiscal year.
      SR
      11. The Senate amendment, but not the House bill, 
contains this provision regarding ratable reductions.
      HR
      12. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes, related to the 
organizational structure of the Senate amendment.
      HR
      13. The House bill, but not the Senate amendment, changes 
the wording of paragraph (1) by revising the language to focus 
on the provision of services to youth returning from 
correctional institutions instead of youth at risk of dropping 
out. In addition, the reference to another section in both the 
House bill (8306) and the Senate amendment (5506) are to the 
same general policy regarding Other General Assurances (see 
Title VIII of the House bill).
      SR with an amendment to include ``at risk'' after 
``delinquent''.
      14. The House bill, but not the Senate amendment, adds 
the word ``technical'' after ``vocational''.
      SR
      LC conform language regarding ``opportunity to learn'' 
change to ``opportunity to achieve'' in House (2) (B).
      15. The House bill refers to evaluations associated with 
Institution-Wide Projects (Section 1416), while the Senate 
amendment refers to general program evaluations under section 
1431.
      HR
      16. The House bill and Senate amendment provisions in 
paragraph (3) and in subsection (b) following are the same, 
with the exception indicated in note 17.
      LC
      17. The House bill heading for paragraph (1) is different 
than the Senate amendment heading for paragraph (1); otherwise, 
see note 16.
      SR
      18. Both the House bill and the Senate amendment 
reference the State Plan under Title I, part A.
      LC
      19. The House amendment refers to the specific section in 
Title VIII of the House bill regarding evaluations, while the 
Senate amendment refers to evaluations generally.
      LC
      20. The reference to another section in both the House 
bill (8501) and the Senate amendment (4) are to the same 
general policy regarding fiscal effort (see Title VIII of the 
House bill).
      LC
      21. The House bill refers to job training programs in 
general, while the Senate amendment refers specifically to the 
Workforce Investment Act of 1998. In addition, the House bill, 
but not the Senate amendment, adds the word ``technical'' after 
``vocational''.
      HR with an amendment to replace ``Workforce Investment 
Act of 1998'' with ``PL 105-220''.
      SR on House bill adding ``technical'' after 
``vocational''.
      22. The House bill, but not the Senate amendment, 
contains this additional element for State applications to 
focus on the provision of services to youth returning from 
correctional institutions.
      SR
      23. The Senate amendment, but not the House bill, adds 
the word ``children'' before ``youth''.
      HR
      LC conform part with same change.
      24. The House bill, but not the Senate amendment, adds 
the word ``incarceration'' in place of the word ``youth'' after 
``term of''.
      LC
      25. The Senate amendment, but not the House bill, adds 
the word ``children'' before ``youth''. The House bill, but not 
the Senate amendment, adds the words ``distance learning'' 
before ``and assistance''.
      LC on Senate amendment adding ``children'' before 
``youth''; SR on House bill adding ``distance learning''.
      26. The House bill, but not the Senate amendment, adds 
the words ``vocational and technical training'' to subparagraph 
(B).
      SR
      27. The House bill, but not the Senate amendment, strikes 
clause (iii).
      HR with amendment to change language in (iii) to strike 
``learn to such'' and replace with ``achieve''.
      LC for similar references in remainder of this part.
      28. The House amendment refers to the specific section in 
Title VIII of the House bill regarding evaluations, while the 
Senate amendment refers to evaluations generally.
      SR
      29. The Senate amendment, but not the House bill, 
contains this provision regarding the supplement, not supplant 
provision in section 1120A of Title I, part A.
      HR
      30. The Senate amendment, but not the House bill, 
contains this section on Institution-Wide Projects.
      HR
      31. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes related to the 
organizational structure of the Senate amendment.
      HR
      32. The House bill, but not the Senate amendment, changes 
the reservation percentage for SEAs to 15 percent. The Senate 
amendment, as amended, but not the House bill allows for a 
reservation percentage range between 5 and 30 percent, as well 
as adds two new paragraphs pertaining to the kinds of 
transition services that may be supported.
      HR with an amendment that reservation percentage be 15-
30%.
      HR with an amendment to strike (C) (iii) and (C) (v) and 
add new clause (C)(v):
                    ``Counseling services.''--The Conferees 
                recognize that LEAs may find that counseling 
                programs, including the provision of mental 
                health services, are a necessary and 
                appropriate component of ensuring the 
                successful transition of youth returning from 
                correctional facilities.''
      33. The Senate amendment, but not the House bill, adds 
the word ``youth'' after ``children''.
      LC/HR
      34. The Senate amendment, but not the House bill, adds a 
new section allowing the Secretary of Education to reserve up 
to 5 percent of part D funds each year for national activities 
involving evaluation, technical assistance and model programs.
      H.R. with 3 amendments: change ``shall'' to ``may'', 
change 5% to 2.5%, strike paragraph 3.
      35. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes related to the 
organizational structure of the Senate amendment.
      LC
      36. The House bill, but not the Senate amendment, 
reorders this paragraph to focus on the provision of services 
to youth returning from correctional institutions.
      SR with an amendment to strike ``dropping out of school'' 
in House paragraph (3).
      37. Both the House bill and the Senate amendment strike 
the word ``retained'', which is a technical change.
      LC
      38. The House bill, but not the Senate amendment, revises 
subsection (b) to focus on the provision of services to youth 
returning from correctional institutions instead of youth at 
risk of dropping out.
      SR
      39. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes related to the 
organizational structure of the Senate amendment.
      HR/LC
      40. The House bill, but not the Senate amendment, adds 
subsection (d), Transitional and Academic Services, with 
language to focus on the provision of services to youth 
returning from correctional institutions and by stipulating 
that services to youth at risk of dropping out shall not 
negatively impact the transitional and academic needs of youth 
returning from correctional facilities.
      SR
      41. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes related to the 
organizational structure of the Senate amendment.
      LC
      42. The House bill, but not the Senate amendment, revises 
paragraphs (4), (5) and (6) following to focus on the provision 
of services to youth returning from correctional institutions 
instead of youth at risk of dropping out and removes the 
conditional statement ``as appropriate'' preceding each LEA 
application requirement. See notes 43 and 44 for exceptions.
      SR with an amendment to add to (4) ``as appropriate'' 
between ``and'' and ``the''.
      43. The House bill, but not the Senate amendment, 
requires specific characteristics of the youth to be served to 
be described, as well as adding a secondary requirement to 
describe other youth expected to be served. Otherwise, see note 
43.
      SR
      44. The House bill, but not the Senate amendment, adds 
the word ``other'' to the list of existing services LEAs will 
describe how to coordinate. Otherwise, see note 42.
      SR
      45. The House bill, but not the Senate amendment, adds 
``curriculum-based entrepreneurship education''.
      SR
      46. The House bill and Senate amendment have the same 
meaning in paragraph (8), but are worded slightly different.
      LC
      47. The House bill refers to job training programs in 
general, while the Senate amendment refers specifically to the 
Workforce Investment Act of 1998. In addition, the House bill, 
but not the Senate amendment, adds the word ``technical'' after 
``vocational''.
      HR with an amendment to replace ``Workforce Investment 
Act of 1998'' with ``PL 105-220''.
      SR on House bill adding ``technical'' after 
``vocational''.
      48. The House bill and the Senate amendment are the same 
as current law in paragraphs (10)-(13).
      LC
      49. The House bill, but not the Senate amendment, 
contains a provision regarding LEA uses of funds to focus on 
the provision of services to youth returning from correctional 
institutions.
      SR
      50. The House bill, but not the Senate amendment, has no 
reference to youth ``at educational risk'' and has no reference 
to specific groups of youth who may be at risk of dropping out.
      HR
      51. The House bill, but not the Senate amendment, adds 
the word ``other'' to the list of existing services LEAs can 
use funds to coordinate. The Senate amendment, but not the 
House bill, refers to ``drug and alcohol counseling''.
      HR with an amendment to add ``and mental health 
services'' after ``counseling''.
      52. The House bill, but not the Senate amendment, adds 
the word ``technical'' after ``vocational'' and adds 
``curriculum-based entrepreneurship education''.
      SR
      53. The House bill, but not the Senate amendment, adds 
another paragraph regarding mentoring and peer mediation to the 
LEA uses of funds.
      SR
      54. The House bill and Senate amendment headings for this 
section are different.
      HR
      55. The House bill and Senate amendment have different 
internal organization structures which accounts for this and 
the immediately following technical changes.
      LC
      56. The House bill, but not the Senate amendment, changes 
``where feasible'' to ``to the extent practicable'' in all the 
following paragraphs, through paragraph (8) in which the former 
phrase appears.
      HR
      57. The House bill, but not the Senate amendment, makes a 
number of changes to this paragraph. See notes 52 and 55.
      HR with an amendment to replace ``Workforce Investment 
Act of 1998'' with ``PL 105-220''.
      58. The House bill, but not the Senate amendment, adds a 
citation to the U.S. Code for the Act referenced.
      LC
      59. See note 45.
      SR
      60. The Senate amendment, but not the House bill, makes 
minor conforming, technical wording changes, related to the 
organizational structure of the Senate amendment.
      LC
      61. The House bill, but not the Senate amendment, changes 
the reference to ``sex'' to ``gender'' and eliminates the 
conditional statement ``if feasible''. Otherwise, the House 
bill and the Senate amendment are the same in paragraphs (1)-
(4) and in subsections (b) and (c) that follow. See exception 
in note 62.
      SR with an amendment to reference Title I-A exceptions 
for ``statistically significant and personally identifiable'' 
data.
      62. The Senate amendment, but not the House bill, adds a 
new paragraph to the evaluation of program's impact on 
participants.
      HR with an amendment to add ``as appropriate'' before 
participate.
      63. The Senate amendment, but not the House bill, adds 
paragraph headings before each term is defined in paragraphs 
(1)-(4).
      HR
      64. The Senate amendment, but not the House bill, 
reorganizes this paragraph. Neither the Senate amendment nor 
the House bill changes the meaning of this definition.
      LC
      Authorization--levels--LC (identical authorization 
amounts of $50 million in FY 02 and such sums in FY 03-07).

            Title I, Part E--Evaluations and Demonstrations

      1. The House bill amends section 1501, while the Senate 
amendment strikes the entire section and replaces it.
      LC
      2. The Senate amendment, but not the House bill, includes 
the words ``of Title I'' after ``National Assessment''.
      HR
      3. The House bill requires the Secretary of Education to 
assess the programs assisted under Title I, while the Senate 
amendment requires the Secretary to assess the impact of 
policies of Title I on States, LEAs, schools and students.
      HR with an amendment to insert ``the programs assisted 
and'' before ``the impact of the policies'' and strike ``title 
I of...Teachers Act'' and insert ``this title'' in (a).
      4. The Senate amendment requires the participation of an 
independent review panel composed of the groups listed at all 
stages of the assessment. The House bill also requires the 
participation of an ``independent'' review panel, but 
stipulates a number of conditions that must be met in regards 
to the review panel, which the Senate does not, in subsection 
(d) of the House bill. See note 49.
      SR
      5. The House bill and the Senate amendment are 
substantially the same with minor wording differences.
      HR
      6. The House bill, but not the Senate amendment, contains 
a general requirement to examine the implementation and impact 
of Title I programs in regards to increasing academic 
achievement, especially in high-poverty schools. See the next 
note.
      SR with an amendment to insert as new (A): ``the 
implementation of programs assisted under this title and the 
impact of such implementation on increasing student academic 
achievement particularly in schools with high concentrations of 
children living in poverty, toward the goal of all students 
reaching the proficient level on challenging State academic 
content and achievement standards and State academic 
assessments under section 1111, including providing information 
on what types of programs and services that have demonstrated 
the greatest likelihood of helping students reach the State's 
academic achievement standards for proficient and advanced;''
      7. The Senate amendment, but not the House bill, contains 
a specific requirement to examine student progress to 
proficiency in at least reading and math based on State 
standards and assessments required under section 1111 of Title 
I (including NAEP).
      SR
      8. The House bill does not contain a similar provision.
      SR
      9. The House bill contains a general requirement to 
examine the implementation and impact of State standards, 
assessments and accountability systems. The Senate amendment is 
more specific as to what must be examined in regards to 
assessments and calls for examination of implementation of 
requirements for development and administration of 3-8 annual 
assessments and how well they meet Title I requirements (see 
next note), but does not reference standards as the House does.
      HR/SR with an amendment to insert as new language: ``the 
implementation of State standards, assessments, and 
accountability systems developed under this title, including 
the time and cost required for the development of assessments 
for students in grades 3-8 and how well they meet the 
requirements for assessments described in this title, and the 
impact of such standards, assessments, and accountability 
systems on educational programs and instruction at the local 
level.''
      10. The Senate amendment requires a specific examination 
of the ``adequate yearly progress'' requirement in Title I, 
part A. The House does not contain a similar provision, 
although it does require an examination of accountability in 
general in subparagraph (a)(2)(B). See previous note.
      HR with an amendment: ``defined adequate yearly progress 
and what has been the impact of applying this standard to 
schools, local educational agencies, and the state, including 
the number of schools and local educational agencies not 
meeting the standard and the changes in such identification.''
      11. The House bill and the Senate amendment require an 
examination of schoolwide programs and targeted assistance, but 
the Senate amendment has a similar requirement in subparagraph 
(a)(2)(G) of the Senate amendment. See note 22.
      SR with an amendment: ``the implementation and impact of 
schoolwide programs and targeted assistance programs under this 
title on improving student academic achievement and to what 
extent such schools meet the requirements for such programs.''
      12. The House bill does not contain a similar provision, 
although to the extent report cards are considered an element 
of accountability, see note 9 and paragraph (a)(B) of the House 
bill.
      HR with an amendment to insert ``parents,'' after 
``students''.
      13. The House bill and the Senate amendment require an 
examination of comprehensive school reform, although the House 
is more specific as to models, implementation and impact, while 
the Senate is more general as to effectiveness, but the Senate 
provision regarding this requirement is in paragraph (b)(2) of 
the Senate amendment. See note 35.
      SR with an amendment to insert ``and implemented'' after 
``are funded'' in (D).
      14. The Senate amendment does not contain a similar 
provision.
      SR
      15. The House bill and the Senate amendment require an 
examination of school choice as defined in section 1116 of 
Title I, part A of each piece of legislation, although the 
Senate provision is in clause (a)(2)(F)(iii). See note 19. The 
House bill, but not the Senate amendment, requires an 
examination of the schools from which students have 
transferred.
      HR
      16. The House bill and the Senate amendment require an 
examination of action required pursuant to section 1116 of 
Title I, part A of each piece of legislation. However, the 
House bill requirement is more general as to impact and 
implementation, while the Senate amendment is more specific as 
detailed in clauses (a)(2)(F)(i)-(v) following the Senate 
amendment. See notes 17-21.
      SR with an amendment to strike ``employed'' and insert 
``implemented''.
      17. The House bill does not contain a similar provision.
      HR
      18. The House bill does not contain a similar provision. 
However, the House bill does refer to support provided by the 
SEA and LEA generally, in subparagraphs (a)(2)(H) and 
(a)(2)(K). See notes 26 and 29.
      HR
      19. The Senate amendment requires a specific examination 
of public school choice, as defined in section 1116 of Title I, 
part A, regarding number of parents taking the option, costs 
associated with the option, and the impact on student 
achievement. The House bill also requires an examination of 
public school choice as defined in section 1116 of Title I, 
part A, but is more general. See note 15.
      HR with an amendment to insert as new (iii): ``the number 
of parents who take advantage of the public school choice 
provisions of this title, the costs, including transportation 
costs, associated with implementing these provisions, and the 
implementation and impact of these provisions, including the 
impact of attending another school, on student achievement;''
      20. The House bill does not contain a similar provision.
      HR
      21. The House bill does not contain a similar provision 
specific to examining the actions taken regarding 
reconstitution, as defined in section 1116 of Title I, part A, 
of the Senate amendment. Also, see note 16.
      HR with an amendment to strike ``kinds'' and insert 
``implementation and impact'' before ``actions that are taken'' 
and strike ``reconstitution'' and insert ``corrective action 
and restructuring.'' in (v).
      22. See note 11. In addition, the Senate amendment 
requires an examination of professional development in this 
subparagraph, while the House requires a similar examination of 
professional development in subparagraph (a)(2)(J). Also, see 
note 28.
      SR
      23. The House bill does not contain a similar provision.
      HR
      24. The House bill does not contain a similar provision.
      HR with an amendment to insert ``implemented the 
provisions of section 1118 and'' before ``afforded parents'' 
and strike ``at school and at home;'' in (I).
      25. The House bill does not contain a similar provision, 
although to the extent school improvement reservation can be 
generally considered assistance available under this title and 
is targeted to schools with the most need, see subparagraph 
(a)(2)(K) of the House bill and note 29.
      SR
      26. The House bill and the Senate amendment are 
substantially the same with minor wording differences.
      HR with an amendment to strike the language in Senate (K) 
and insert the following language: ``used federal, State, and 
local educational agency funds and resources to support schools 
and provide technical assistance to improve the achievement of 
students in low-performing schools, and the impact of such 
assistance on such achievement; and''
      27. The Senate amendment does not contain a similar 
provision regarding accounting requirements limiting schoolwide 
programs, although the Senate amendment does require an 
examination of schoolwide programs in subparagraph (a)(2)(G) of 
the Senate amendment. See note 11.
      SR with an amendment to strike ``limit'' and insert 
``effect, if at all'' in (I).
      28. See note 22 regarding the professional development 
requirement in the Senate amendment.
      SR with an amendment to strike the language in (J) and 
insert the following language: ``the implementation and impact 
of the professional development activities assisted under this 
title and title II on instruction and student academic 
achievement and on teacher qualifications;''
      29. The Senate amendment does not contain a similar 
provision, however, see note 25.
      SR with an amendment to insert the following language: 
``the extent to which the assistance made available under this 
title, including funds under section 1003, is targeted to 
disadvantaged students, schools, and local educational agencies 
with the greatest need.''
      30. The Senate amendment does not contain a similar 
provision.
      SR
      31. The Senate amendment does not contain a similar 
provision.
      SR
      32. The House bill does not contain a similar provision.
      HR with an amendment to strike ``fully'' and insert 
``highly'' and to strike ``in four years.'' and insert ``not 
later than the end of 2005-2006 school year.''
      33. The Senate amendment and the House bill require the 
national assessment authorized under this section to examine 
how the programs under Title I have improved student 
achievement, although the House provision is located in 
subparagraph (a)(2)(A).
      SR
      34. The House bill does not contain a similar provision, 
however, see notes 6 and 7.
      SR
      35. See note 13.
      SR
      36. The House bill and the Senate amendment require the 
national assessment authorized under this section to be 
longitudinal. However, the Senate amendment includes the 
conditional statement ``to the extent possible'' and seeks to 
track students. The House bill requires a longitudinal study of 
schools, not students, is not conditional, and stipulates a 
number of requirements which the Senate amendment does not. In 
addition, the House bill provision regarding this longitudinal 
study is located in subsection (c) of the House bill.
      SR
      37. The House bill does not contain a similar provision.
      HR with an amendment to strike ``to the extent possible'' 
and insert ``academic'' before ``achievement'';
      LC--make last subparagraph of list.
      38. The House bill does not contain a similar provision.
      HR with an amendment to strike ``performance'' and insert 
``academic achievement''.
      39. The Senate amendment does not contain a similar 
provision.
      SR
      40. The Senate amendment does not contain a similar 
provision as the House bill in paragraph (a)(4) and 
subparagraph (a)(4)(A).
      SR
      41. See note 4.
      SR
      42. The House bill and the Senate amendment require the 
Secretary to provide an interim and final report to Congress on 
the national assessment authorized under this section. However, 
the House bill also requires both reports to be submitted to 
the President. In addition, the House bill stipulates the 
report must be delivered three years after enactment of the 
House bill, while the Senate amendment sets a date certain for 
delivery of the report of December 20, 2004. The Senate 
amendment provisions regarding the report are located in 
subsection (e) of the Senate amendment.
      SR with an amendment to strike ``Congress'' and insert 
``House Education and the Workforce Committee and Senate 
Health, Education, Labor and Pensions Committee''; LC make 
uniform throughout Act.
      43. The House bill, but not the Senate amendment, 
requires the final report on the national assessment authorized 
under this section to be delivered no more than 4 years after 
enactment of the House bill. The Senate amendment requires the 
final report to be delivered by a date certain of December 20, 
2007, which is later than the deadline contained in the House 
bill.
      SR with an amendment to strike ``4'' and insert ``5''.
      44. The House bill and the Senate amendment are 
substantially the same in the provisions regarding authorizing 
the Secretary to undertake additional studies and data 
collection with minor wording differences and with the 
exception indicated in note 45.
      SR with an amendment to strike House (A) and insert 
Senate (1) in its place.
      45. The Senate amendment does not contain a similar 
provision.
      SR
      46. See note 42.
      SR
      47. See note 43.
      SR
      48. See note 36; otherwise, the Senate amendment does not 
contain similar provisions.
      SR with an amendment to strike ``performance'' and insert 
``achievement'' in (A);
      LC--conform (A)-(F) to previous changes.
      49. See note 4; otherwise, the Senate amendment does not 
contain similar provisions.
      SR with an amendment to change (iii) to new (iv) and 
insert as new (iii) ``parents, members of local boards of 
education, and other organizations involved with the 
implementation and operation of programs under this title.''; 
Strike ``a majority of the number of'' and insert ``include'' 
in House (B)(i).
      Report Language:
      The Conferees intend that parents or other 
representatives of migrant children, homeless children, and 
limited English proficient children be included among 
``parents,'' and that civil rights groups, test publishers, 
participating private schools, and faith-based organizations 
with educational expertise, be included among the ``other 
organizations involved with the implementation and operation of 
programs under this title.''
      50. The House bill, but not the Senate amendment, makes 
minor technical changes to section 1502.
      SR
      51. House bill renames program as ``Ellender-Close Up 
Fellowship Program'' and the Senate amendment renames program 
as ``Close Up Fellowship Program.''
      HR
      52. Both House bill and Senate amendment contain 
findings, but the findings differ.
      HR/SR--No findings
      53. Virtually identical provisions.
      SR
      54. Virtually identical provisions.
      LC
      55. House bill uses the term ``recent immigrants'' and 
Senate amendment uses the term ``students with migrant 
parents.''
      HR
      56. Identical title.
      LC
      57. House bill, but not Senate amendment, contains 
additional language ``to promote greater civic understanding 
and responsibility among the students of such teachers.''
      SR
      58. Virtually identical provisions.
      SR
      59. Virtually identical provisions.
      LC
      60. House bill entitled ``Programs for Recent Immigrants 
and Students of Migrant Parents.'' Senate Amendment entitled 
``Programs for New Americans.''
      HR
      61. House bill authorizes Close Up Foundation to carry 
out programs among economically disadvantaged recent immigrants 
and students of migrant parents. Senate amendment authorizes 
Close Up Foundation to carry out programs among economically 
disadvantaged secondary school students who are recent 
immigrants.
      HR with an amendment to insert ``middle and'' before 
``secondary school students''.
      62. House bill contains no similar provision.
      HR
      63. Under House bill, grants shall be used for financial 
assistance to economically disadvantaged older Americans, 
recent immigrants and students of migrant parents who 
participate in the program. Under Senate amendment, grants 
shall be used only to provide financial assistance to 
economically disadvantaged recent immigrant students who 
participate in the program.
      HR with an amendment to insert ``and their teachers'' 
after ``recent immigrant students'' and insert ``and teachers'' 
after ``by such students''.
      64. Virtually identical provisions.
      LC
      65. House bill requires applications to contain 
provisions to assure that fellowship grants are made to 
economically disadvantaged recent immigrants and students of 
migrant parents. Senate amendment requires applications to 
contain provisions to assure that fellowship grants are made to 
economically disadvantaged secondary school students.
      HR with an amendment to insert ``middle school and'' 
before ``secondary school students;''.
      66. House bill requires applications to contain 
provisions that every effort will be made to ensure the 
participation of recent immigrants and students of migrant 
parents from rural and small town areas. Senate amendment 
requires applications to contain provisions that every effort 
shall be made to ensure the participation of recent immigrant 
students from rural and small town areas
      HR
      67. House bill gives special consideration to the 
participation of recent immigrants and students of migrant 
parents with special needs, including individuals with 
disabilities, ethnic minorities, and gifted and talented 
students. Senate amendment states that in awarding fellowships 
to economically disadvantaged recent immigrant students, 
special consideration will be given to the participation of 
those students with special educational needs, including 
students with disabilities, students with migrant parents and 
ethnic minority students.
      HR
      68. Similar provisions.
      LC
      69. Similar provisions.
      LC
      70. House bill contains no similar provision.
      HR
      71. Virtually identical provision.
      LC
      72. Virtually identical provision.
      LC
      73. House bill stipulates that the Secretary may use not 
more than 30 percent to carry out subsection (c) of this 
section (programs for middle and secondary school teachers). 
Senate amendment stipulates that not more than 30 percent may 
be used for middle and secondary school teachers and teachers 
of recent immigrants associated with students participating in 
the programs described in sections 2511, 2521 and 2531.
      HR
      74. House bill authorizes such sums as may be necessary 
for FY 02 and for each of the 4 succeeding fiscal years. Senate 
amendment authorizes to carry out the provisions of subparts 1, 
2, and 3 of this part $6,000,000 for FY 02 and such sums as may 
be necessary for each of the four succeeding fiscal years.
      SR with an amendment to strike ``4 succeeding'' and 
insert ``5 succeeding''.
      76. Senate amendment contains no similar provision.
      SR

              Title I, Part F--Comprehensive School Reform

      1. The House bill and the Senate amendment designate the 
comprehensive school reform program as different parts within 
each respective piece of legislation.
      LC
      2. The House bill, but not the Senate amendment, contains 
findings.
      HR
      3. The House bill and the Senate amendment are 
substantially the same in the PURPOSE section, except the 
Senate amendment adds the word ``promising'' before ``effective 
practices''. In addition, the House references ``academic 
achievement standards'', while the Senate references ``student 
performance standards''.
      SR with LC on further references to standards.
      4. The Senate amendment, but not the House bill, 
references ``allotments'', as described in paragraph (2) 
following. Otherwise, the House bill and Senate amendment are 
the same with a technical difference in cross-references.
      LC
      5. The House bill and Senate amendment have different 
paragraph headings.
      LC
      6. The Senate amendment, but not the House bill, 
specifically refers to the Title I section authorizing funds 
for this part.
      HR
      7. The Senate amendment, but not the House bill, has 
language regarding the amounts the Secretary may reserve for 
the entities listed based on their need for assistance.
      HR
      8. The House bill and the Senate amendment are the same 
with a technical difference in cross-references.
      LC
      9. The House bill allows the Secretary to reserve 2% of 
the amount appropriated in FY 02 for quality initiatives, while 
the Senate amendment allows a reservation of 3%. The House bill 
and Senate amendment also have a technical difference in cross-
references.
      SR with an amendment to change 2% to 3%.
      10. The Senate amendment, but not the House bill, 
specifically refers to the Title I section authorizing funds 
for this part, otherwise the House bill and Senate amendment 
are substantially the same.
      HR with an amendment to include House subparagraph (C) 
regarding the Secretary's reallocation of funds to the States.
      11. The Senate amendment, unlike the House bill, does not 
have a ``STATE AWARDS'' subsection heading.
      HR
      12. The House bill and Senate amendment are substantially 
the same with a minor wording difference that does not affect 
the meaning.
      LC
      13. The House bill and the Senate amendment are the same 
with a technical difference in cross-references.
      LC
      14. The House bill, but not the Senate amendment, 
requires comprehensive school reform program technical 
assistance providers to be financially stable. The Senate 
amendment, but not the House bill, requires comprehensive 
school reform program technical assistance providers have 
capacity to deliver on-site support during reform 
implementation.
      SR on House reference to financially stable.
      HR on Senate reference to on-site support.
      15. The Senate amendment, but not the House bill, adds 
the word ``promising'' before ``effective practices''. The 
House bill requires dissemination of ``materials'', while the 
Senate amendment requires dissemination of ``information''.
      SR on House reference to effective practices.
      SR with an amendment to include ``and information'' after 
``materials''.
      16. The House bill, but not the Senate amendment, 
contains the phrase ``and to participating schools''. The House 
bill requires technical assistance to be provided, while the 
Senate amendment requires technical assistance to be made 
available.
      SR
      17. The Senate amendment, but not the House bill, 
contains the word ``STATE'' in the heading.
      LC
      18. The House bill and Senate amendment are substantially 
the same with a technical difference in cross-references. The 
Senate amendment refers to subgrants from SEAs to LEAs, while 
the House amendment refers to grants from SEAs to LEAs 
throughout the remainder of this subsection (or, in the case of 
the Senate amendment, throughout this section), with the 
exception indicated in note 21.
      LC
      19. The House bill and the Senate amendment have 
different headings.
      LC
      20. The House bill refers to ``schools'', while the 
Senate amendment refers to ``school''.
      HR with an amendment to add ``or schools'' after 
``school''.
      21. The Senate amendment, but not the House bill, adds 
the words ``or consortia''. The Senate amendment refers to the 
SEA, while the House bill refers to the State.
      HR
      22. The Senate amendment, but not the House bill, 
requires SEAs to give priority to both conditions in paragraphs 
in (1) and (2) when awarding subgrants to LEAs or consortia 
thereof. The House bill, but not the Senate amendment, requires 
SEAs to only give priority either to clause (i), or clause 
(ii), when awarding subgrants to LEAs. With this exception and 
that indicated in note 21, the House bill and Senate amendment 
are substantially the same in the PRIORITY provisions.
      HR
      23. The House bill and Senate amendment are substantially 
the same with minor, technical wording differences.
      LC
      24. The House bill and Senate amendment are substantially 
the same except the House bill refers to the States ``annual'' 
evaluation and the Senate bill does not and with other minor, 
technical wording differences.
      SR/LC
      25. The House bill and Senate amendment have different 
headings.
      SR/LC
      26. The Senate amendment, but not the House bill, 
requires LEAs to submit an application to the SEA as the SEA 
may require. Otherwise the content of LEA applications in the 
House bill and the Senate amendment are substantially the same 
with the exceptions indicated in notes 27 and 28.
      HR
      27. The Senate amendment, but not the House bill, adds 
the word ``promising'' before ``effective practices''.
      SR
      28. The Senate amendment, but not the House bill, adds 
the word ``comprehensive'' before ``reforms''.
      HR
      29. The House bill, unlike the Senate amendment, does not 
have a section heading.
      LC
      30. The House bill and Senate amendment have different 
headings. The Senate amendment, but not the House bill, refers 
to LEAs or consortia thereof. In addition, the Senate 
amendment, but not the House bill, requires LEAs to award 
subgrants to schools eligible for assistance under part A of 
Title I and that are served by that agency.
      HR
      LC regarding headings.
      31. The House bill and the Senate amendment are 
substantially the same with the exception indicated in note 27, 
and the House bill references those strategies and methods 
replicated in similar schools, while the Senate amendment does 
not reference similar schools.
      SR with an amendment to strike ``similar''.
      32. See note 3, specifically that part regarding 
standards.
      LC regarding ``academic achievement standards''.
      33. The House bill, but not the Senate amendment, 
requires benchmarks for student performance goals in a school's 
comprehensive school reform program. The House bill refers to 
``other professional staff'' while the Senate amendment refers 
to ``school personnel staff''.
      HR to include both terms: ``other professional staff'' 
and ``school personnel staff''.
      SR to include (E) regarding comprehensive school reform 
programs being supported by teachers, principals, 
administrators, and other professional staff.
      34. The House bill requires the involvement of parents in 
``planning and implementing'' school improvement activities, 
while the Senate amendment requires parental involvement to 
``strengthen'' school improvement activities.
      SR with an amendment to strike ``and'' and insert ``,''. 
Add ``and evaluating'' after ``implementing'' and add at end 
``consistent with section 1118''.
      35. The House bill, but not the Senate amendment, 
requires an annual evaluation of student results achieved. The 
Senate amendment refers to an evaluation of student 
performance.
      SR
      36. The House bill and the Senate amendment are 
substantially the same with minor technical wording 
differences.
      LC
      37. The House bill, but not the Senate amendment, 
requires a school's comprehensive school reform program to have 
been proven effective in improving academic performance through 
field testing or which has a strong evidentiary basis as 
described in subparagraph (J)(i) and (ii).
      SR with an amendment to strike ``rigorous field 
experiments in multiple cites''; and insert ``scientifically 
based research'' and strike all references to ``similar''.
      38. The House bill and Senate amendment are substantially 
the same with minor wording differences, including a technical 
difference in cross-references.
      LC
      39. The House bill and Senate amendment have different 
headings.
      SR
      40. The House bill and Senate amendment are substantially 
the same with a minor wording difference that does not affect 
the meaning.
      LC
      41. The Senate amendment requires the Secretary of 
Education to submit an interim report on comprehensive school 
reform implementation to Congress, while the House bill 
requires the Secretary to submit an interim report on the first 
year of comprehensive school reform implementation to Congress.
      HR with an amendment to strike ``Prior to the completion 
of the national evaluation.'' Also strike ``an interim'' and 
insert ``a''. After ``describing'' add ``results of the 
evaluation under subsection (b)''. Also strike ``implementation 
activities'' and ``which began in 1998''.
      42. The Senate amendment requires the Secretary to 
``promote'' the activities described in the following 
paragraphs, while the House bill requires the Secretary to 
``provide funds'' for these activities.
      SR
      43. The House bill and Senate amendment are similar in 
paragraphs (1) and (2), with minor wording differences, a 
technical difference in cross-references, and with the 
exceptions indicated in the next two notes.
      LC
      44. The Senate amendment, but not the House bill, 
requires the Secretary to support activities that promote 
financial stability in comprehensive school reform providers.
      HR
      45. The House bill, but not the Senate amendment, 
requires the Secretary to provide funds for activities to 
ensure high quality services meeting the needs of teachers and 
students. The Senate amendment requires activities to ``assure 
quality'' in paragraph (2).
      HR
      Authorization Level: House $260 million. Senate $500 
million.
      SR with an amendment to strike ``$260 million'' and 
replace with ``such sums''.

                    Title I, Part G--Rural Education

                         (New Title VI, Part B)

      1. House bill authorizes program in Title I, Part G and 
short title is `Rural Education Initiative Act.' Senate 
amendment authorizes program in Title V, Part B, Subpart 2 and 
short title is `Rural Education Achievement Program.'
      HR with an agreement to move to Title VI, Part B.
      2. Senate amendment, but not House bill, contains 
purpose.
      HR
      3. House bill, but not Senate amendment, contains 
findings.
      HR
      4. House bill ``Subpart 1--Rural Education Flexibility.'' 
Senate amendment ``Chapter 1--Small, Rural School Achievement 
Program.''
      HR
      5. Under House bill, a school district may use applicable 
funding for the local activities authorized in: Title I Part A; 
Title II Part A (teacher quality), Title III Part A (education 
of limited English proficient and immigrant children); Title IV 
Part A (innovative programs); Title V Part A (safe schools and 
21st century schools); or Title V Part B (enhancing education 
through technology). Under Senate amendment, a school district 
may use applicable funding for the activities authorized in: 
Section 1114 (schoolwide programs); Section 1115 (targeted 
assistance schools); Section 1116 (assessments and school 
improvement); Section 2123 (teacher quality--local uses of 
state grant funds); Section 4116 (safe and drug-free schools--
local drug and violence prevention); or Section 5331(b) (local 
activities under innovative education program strategies).
      SR
      6. Under House bill, eligibility is limited to fewer than 
600 students in average daily attendance, and all of its 
schools with a School Locale Code of 7 or 8. Under Senate 
amendment, eligibility is limited to (1) Fewer than 600 
students in average daily attendance or all schools in the 
district located in counties with a population density of fewer 
than 10 persons per square mile, and (2) all schools have a 
Locale Code of 7 or 8.
      HR
      7. Under House bill, the Secretary shall determine 
whether or not to waive the School Locale Code requirement 
based on a demonstration by an LEA and concurrence by the SEA, 
that the LEA is located in an area defined as rural by a 
governmental agency of the State. Under Senate amendment, the 
Secretary may waive the School Locale Code requirement if the 
Secretary determines, based on information demonstrated by the 
LEA or the SEA on behalf of the LEA, that the LEA is located in 
an area defined as rural by a governmental agency of the State.
      SR
      8. House bill applicable funding: Title II A (teacher 
quality); Section 3106 (education of limited English proficient 
and immigrant children); Title IV Part A (innovative programs); 
Title V Part A, Subpart 1 (safe schools); and Section 
5212(a)(2)(A) (enhancing education through technology). Senate 
amendment applicable funding: Title II (teacher quality); Title 
IV (Safe and Drug-Free Schools and Communities Act of 1994); 
and Title V Part B, Subpart 4 (innovative education program 
strategies).
      HR/SR with an agreement for ``applicable funding'' to 
include: Subpart 2 of Title II (Teachers); Section 
2412(a)(2)(A) (Technology); Section 4114 (Safe and Drugfree 
Schools); and Part A of Title V (Innovative Programs).
      9. Similar provision.
      LC
      10. Similar provision.
      LC
      11. House bill contains no similar provision.
      HR
      12. Under House bill, grants are authorized for eligible 
LEAs to support local or statewide education reform efforts 
intended to improve the academic achievement of elementary 
school and secondary school students and the quality of 
instruction provided for the students. Under Senate amendment, 
grants authorized for eligible LEAs for the same activities 
supported under the flexibility authority with the addition of: 
Section 2213 (mathematics and science partnerships), or Section 
2306 (state and local programs for technology).
      HR with an amendment to mirror Note 5 uses.
      13. Similar provision except that the amount in House 
bill is based on the preceding fiscal year and the Senate 
amendment is based on the same fiscal year.
      SR
      14. Virtually identical provision.
      LC
      15. Virtually identical provision.
      LC
      16. Identical provision.
      LC
      17. Identical provision.
      LC
      18. Senate amendment, but not House bill, contains 
penalty.
      HR
      19. Identical provision.
      LC
      20. Similar provision.
      SR
      21. Identical provision.
      LC
      22. House bill has no similar provision.
      HR
      23. Under House bill, LEA must administer assessments 
consistent with the provisions of ESEA Title I, Section 1111. 
SEA permits only a district meeting ``adequate yearly 
progress'' as defined under Section 1111 to continue to 
participate after second year of participation. Under Senate 
amendment, LEA must assess its student achievement using 
statewide assessment consistent with the assessment under ESEA 
Title I, Section 1111(b), or, absent such assessment, a test of 
its own selection. State permits an LEA to continue for 
additional three-year period only if its students perform 
``better'' on the assessment after the third year than they did 
in the first year. An LEA that does not meet this criterion is 
ineligible to participate for a 3-year period.
      SR with an amendment to read as follows:
            ``(1) after each third year that a local 
        educational agency participates in a program under 
        section 1711 or 1712 and on the basis of the results of 
        the assessments described in subsection (a), determine 
        whether the schools served by the local educational 
        agency participating in the program performed in 
        accordance with section 1111;
            ``(2) permit those local educational agencies that 
        participated and make adequate yearly progress, as 
        described in section 1111(b)(2), to continue to 
        participate; and,
            ``(3) only permit those local educational agencies 
        that participated and fail to make adequate yearly 
        progress, as described in section 1111(b)(2), to 
        continue to participate if they disburse applicable 
        funding under section 1711(c) to carry out the 
        requirements of section 1116.''
      24. House bill ``Subpart 2--Rural Education Assistance.'' 
Senate amendment ``Chapter 2--Low-Income and Rural School 
Program.''
      HR with an amendment to change title to ``Rural and Low 
Income School Program''.
      25. House bill, but not Senate amendment, contains 
provision to reserve \1/2\ of 1 percent for Bureau of Indian 
Affairs.
      SR with an amendment to add .5% reservation for outlying 
areas.
      26. Similar provision.
      LC
      27. Virtually identical provision.
      LC
      28. Virtually identical provision.
      LC
      29. Under House bill, funds can be used for teacher 
recruitment and retention, professional development for 
teachers, acquisition of educational technology, parental 
involvement activities, or programs to improve student 
achievement. Under Senate amendment, funds can be used for the 
activities described in Section 5331(b) (local activities 
authorized under Title V Part B, Subpart 4--innovative 
programs). These uses include ones similar to those identified 
in House bill and other uses, such as acquisition of 
instructional materials, assessments, and curricular materials; 
and student and parental literacy efforts.
      SR with an amendment to strike (E) and insert ``(E) Safe 
and Drug Free Schools; (F) Title I, part A; and (G) Programs 
for Limited English Proficient Students''
      30. Similar provision.
      LC
      31. House bill, but not Senate amendment, allows the 
State, as appropriate, to define formula.
      SR with an amendment to read as follows:
            (2) according to a formula based on the number of 
        students in average daily attendance served by the 
        eligible local educational agencies or schools in the 
        State. The State educational agency may use a formula 
        not based on the number of students in average daily 
        attendance if the State educational agency 
        demonstrates, to the satisfaction of the Secretary and 
        prior to awarding grants to local educational agencies, 
        that the State educational agency will allocate funds 
        according to a formula which serves high concentrations 
        of children from low-income families at a level 
        proportional to or higher than the level that would 
        occur with a formula based on the number of students in 
        average daily attendance.
      Report Language:
      The conferees note that the objective of this section is 
to allow the State educational agency the flexibility to 
implement their own formula so long as that formula is more 
likely to allocate funds to areas of high concentrations of 
poverty than a formula based on average daily attendance.
      32. Virtually identical provision.
      SR with an amendment to insert ``and technical assistance 
to eligible LEA's'' after ``administrative costs''.
      33. Similar provision.
      HR
      34. Similar provision except that House bill also 
requires the SEA to describe the method used to provide 
assistance to schools.
      SR
      35. Virtually identical provision.
      LC
      36. Virtually identical provision.
      LC
      37. Senate amendment, but not House bill, contains 
``supplement not supplant'' provision.
      HR
      38. Virtually identical provision.
      LC
      39. Senate amendment, but not House bill, contains 
provision that requires LEAs that receive a grant to administer 
an assessment to determine the academic achievement of students 
in the schools served by the LEA.
      HR with an amendment to amend Senate amendment (c) to 
read as follows (consistent with Note 23):
      ``(c) Academic Achievement.--
            ``(1) In general.--Each local educational agency 
        that receives a grant under this chapter [subpart] for 
        a fiscal year shall administer an assessment consistent 
        with section 1111.
            ``(2) Special rule.--Each local educational agency 
        that receives a grant under this chapter [subpart] 
        shall use the same assessment described in paragraph 
        (1) for each year of participation in the program 
        carried out under this chapter [subpart].''
      40. House bill, but not Senate amendment, requires the 
Secretary to prepare a report for Congress.
      SR with an amendment to strike ``annual'' and insert 
``biennial'' in (c).
      41. House bill requires the Secretary to review the 
progress of the SEA or specially qualified agency in achieving 
goals and objectives and determine whether the agency has made 
progress toward meeting such goals and objectives. Senate 
amendment requires the SEA to determine whether students served 
by an LEA participating in the program performed better on 
assessments after the 3rd year of participation than the 
students performed on the assessments after the first year of 
participation.
      HR with an amendment to amend Senate amendment (d) to 
read as follows (consistent with Note 23):
      ``(d) State Educational Agency Determination Regarding 
Continuing Participation.--Each State educational agency that 
receives a grant under this chapter [subpart] shall--
            ``(1) after each third year that a local 
        educational agency receives funds under this chapter 
        [subpart] and on the basis of the results of the 
        assessments described in subsection (c), determine 
        whether the schools served by such local educational 
        agency performed in accordance with section 1111;
            ``(2) permit such local educational agencies that 
        make adequate yearly progress, as described in section 
        1111(b)(2), to continue to receive grants; and,
            ``(3) only permit such local educational agencies 
        that fail to make adequate yearly progress, as 
        described in section 1111(b)(2), to continue to receive 
        grants if they disburse such grants to carry out the 
        requirements of section 1116.''
      42. House bill, but not Senate amendment, requires the 
Secretary to review the use of funds of the SEA or specially 
qualified agency.
      HR
      43. Senate amendment, but not House bill, permits only 
the LEAs that performed better on assessments (as described in 
Note 39) to continue to participate in the program for an 
additional 3 years.
      HR
      44. House bill permits the Secretary to deny the 
provision of additional funds in subsequent fiscal years to an 
agency only if the Secretary determines, after notice and an 
opportunity for a hearing, that the agency's use of funds has 
been inadequate to justify continuation of such funding. Senate 
amendment prohibits the LEAs that participated in the program 
and served students that did not perform better on assessments 
(as described in Note 39) from participating in the program for 
a period of 3 years from the date of the determination.
      HR
      45. Identical definition.
      LC
      46. Similar definition.
      LC
      47. House bill, but not Senate amendment, contains 
definition for State.
      HR
      48. House bill authorizes $300 million for FY 02 and such 
sums as may be necessary for the next four years with the 
appropriation divided evenly between the two programs 
(authorization from Section 1002). Senate amendment authorizes 
$150 million for each of the two programs for FY 02 and such 
sums as may be necessary for each of the next six fiscal years.
      HR/SR with an agreement to authorize $300 million for FY 
2002 and such sums as may be necessary for each of 5 succeeding 
fiscal years to be distributed equally between subparts 1 and 
2.

                  Title I, Part H--General Provisions

                         (New Title I, Part I)

      1. The House bill, but not the Senate amendment, makes 
several changes to the general provisions of Title I and 
includes them in Title I, Part H of the House bill. The Senate 
amendment retains current law for the general provisions for 
Title I. The Senate amendment redesignates sections 1601 
through 1604 of current law, respectively, as sections 1901 
through 1904. See section 161(2) of the Senate amendment 
regarding the redesignation.
      SR with amendment to add ``and other organizations'' 
after ``local boards of education''; Strike ``ensure reasonable 
compliance'' and insert ``reasonably ensure that there is 
compliance''.
      Report Language:
      The Conferees intend that parents or other 
representatives of migrant children, homeless children, and 
limited English proficient children be included among 
``parents,'' and that civil rights groups, test publishers, 
participating private schools, and faith-based organizations 
with educational expertise be included among the ``other 
organizations involved with the implementation and operation of 
programs under this title.''
      2. The House bill requires the Secretary to establish a 
negotiated rulemaking process on a minimum of three key issues, 
including accountability, implementation of assessments, and 
use of paraprofessionals. The Senate amendment retains current 
law which requires a negotiated rulemaking process on at least 
two key issues, including (i) schoolwide programs and (ii) 
standards and assessments.
      SR with an amendment to: Strike (b)(A) and replace with
                    ``(A) at a minimum, establish a negotiated 
                rulemaking process on standards and 
                assessments.'';
Insert at (b)(3)(B), before the semicolon, ``in such numbers as 
will provide an equitable balance between representatives of 
parents and students and representatives of educators and 
education officials.''; and Strike ``regulations'' and add 
``policy options'' in (b)(3)(C).
      Report Language:
      The Conferees intend that the Secretary select 
individuals to participate in the Title I negotiated rulemaking 
in numbers that will provide an equitable balance between 
representatives of parents and students and representatives of 
educators and education officials. The Conferees do not intend 
this language to require strict numerical equality or 
comparability among these representatives. Rather, the 
Conferees intend the Secretary to have flexibility in selecting 
the conferees, while ensuring that the views of both program 
beneficiaries and program providers are fairly heard and 
considered.
      3. The House bill, includes provisions governing 
agreements and record keeping on proposed regulations and 
negotiated rulemaking. The Senate amendment retains current 
law.
      SR
      4. The House bill includes a provision on state 
rulemaking and regulations. The Senate amendment retains 
current law.
      SR
      5. The House bill authorizes a committee of 
practitioners. The Senate amendment retains current law. See 
also section 1002(i) of the House bill for authorization of 
state administrative expenses. The Senate amendment retains 
current law on the Committee of Practitioners and includes the 
authorization for administrative expenses here.
      SR
      6. The House bill includes a local administrative costs 
limitation of not more than 4 percent. The Senate amendment has 
no provision.
      HR with report language:
      The Conferees intend LEAs to use only the necessary and 
appropriate amount of funds to provide for administrative 
expenses based on a reasonable definition of such expenses. 
However, the Conferees recognize the need for additional 
information regarding this matter and thereby direct the 
Comptroller General of the General Accounting Office to 
undertake a study of the definitions of administrative expenses 
employed by LEAs across the States and the amount of funds 
reserved for such expenses. The design of such study will be 
developed by Congress in consultation with the GAO and, as 
appropriate, with the Secretary of Education.
      7. The Senate amendment, but not the House bill, includes 
a provision in section 1120C of part A of Title I that 
prohibits the use of funds by a local educational agency for 
certain activities. See also Title I, Part A, subpart 1 for 
placement of this section.
      SR
      8. The Senate amendment, but not the House bill, provides 
for not less than 6 audits of local educational agencies to 
determine how such agencies are expending Title I funds.
      HR with amendment to strike ``the Office of Inspector 
General'' and add ``General Accounting Office'' in (a) and (b).
      9. The House bill, but not the Senate amendment, ensures 
that no provision of Title I affects home schools. See note 125 
from Title VIII (General Provisions for all of ESEA) of House 
bill which applies the rule of construction to the entire Act 
(section 8508 of Title VIII). The Senate amendment includes a 
similar provision in section 17(a) and section 11, also 
referenced in note 125.
      HR
      10. The House bill, but not the Senate amendment, ensures 
that no provision of Title I affects private schools that do 
not receive Title I funds, and no student at such a school is 
required to participate in assessments referenced in Title I. 
See note 126 from Title VIII (General Provisions for all of 
ESEA) of the House bill which applies similar rule of 
construction to the entire Act (section 8509 of Title VIII). 
The Senate amendment includes a similar provision in section 
17(b), also referenced in note 126.
      HR
      11. The House bill, but not the Senate amendment, ensures 
that the privacy of individual assessments results are 
protected from disclosure under section 444 of the General 
Education Provisions Act. The Senate amendment includes a 
similar provision in section 1111(j)(1)(F) of Title I, Part A 
but references section 445 rather than section 444.
      SR with amendment to move Section 1807 to Title VIII 
(General Provisions).

                Title II--Teacher and Principal Quality

                   (New Title II, Parts A, B, and C)

      1. House bill Title II is ``Preparing, Training, and 
Recruiting Quality Teachers.'' Senate amendment Title II is 
``Teachers and Principals.''
      SR with an amendment to insert ``and Principals'' after 
``Teachers''.
      2. House bill Section 201 is ``Teacher Quality Training 
and Recruiting Fund.'' Senate amendment Section 201 is 
``Teacher Quality.''
      SR with an amendment to insert ``and Principal'' after 
``Teacher''.
      3. Identical provision.
      LC
      4. House bill is ``Preparing, Training, and Recruiting 
Quality Teachers.'' Senate amendment is ``Teachers and 
Principals.''
      SR with an amendment to insert ``and Principals'' after 
``Teachers''.
      5. House bill Part A is ``Teacher Quality Training and 
Recruiting Fund.'' Senate amendment Part A is ``Teacher and 
Principal Quality.''
      SR with an amendment to insert ``and Principal'' after 
``Teacher''.
      6. Similar provisions.
      HR with an amendment to strike ``and student 
performance'' in Senate (3) and to redesignate Senate (3) as 
(2).
      7. Senate amendment, but not House bill, contains purpose 
to hold LEAs and schools accountable so that all teachers 
teaching core academic subjects in public schools, in which not 
less than 50 percent of the students are from low-income 
families, are highly qualified.
      SR
      8. Senate amendment, but not House bill, contains purpose 
of holding LEAs and schools accountable for improvements in 
student academic achievement and student performance.
      SR (redesignated as (2) in Note 6).
      9. House bill Subpart 1 is ``Grants to States to Prepare, 
Train, and Recruit Qualified Teachers.'' Senate amendment 
Subpart 1 is ``Grants to States.''
      HR
      10. Similar provisions.
      LC
      11. Similar provisions.
      LC
      12. House bill names individual outlying areas; Senate 
amendment cites ``outlying areas.''
      SR
      13. Similar provisions.
      SR with an amendment to strike ``for professional 
development activities for teachers, other staff, and 
administrators''.
      14. Senate amendment, but not House bill, limits the 
amount of funds that may be reserved for BIA and Outlying Areas 
to the amount received by these entities in FY 01.
      SR
      15. Similar provisions (wording differs).
      LC
      16. House bill, but not Senate amendment, sets the hold 
harmless amount for nonparticipating States at what they would 
have received in FY 01, had they participated.
      HR
      17. Similar provision.
      LC
      18. House bill formula to the States is 50% based on 
population and 50% based on poverty. Senate amendment formula 
to the States is 35% based on population and 65% based on 
poverty.
      HR
      19. House bill defines poverty here based on OMB 
definition and Senate amendment defines poverty in Section 2102 
based on OMB definition.
      HR
      20. Similar small State minimum.
      LC
      21. Similar provisions (wording differs).
      LC
      22. House bill, but not Senate amendment, has language 
that provides that funds granted under this Subpart shall be 
used to carry out activities for the improvement of teaching 
and learning.
      HR
      23. Under House bill, States may reserve not more than 5% 
of funds for one or more of the authorized State activities 
described in Subsection (e) [Authorized State Activities]; and 
for planning and administration related to carrying out such 
activities and making subgrants to LEAs under Subparts 2 [math 
and science partnerships] and 3 [Subgrants to LEAs]. Under 
Senate amendment, States must reserve 2% of funds available for 
State activities described in Subsection (b) [State 
Activities]; 95% of the funds to make subgrants to LEAs as 
described in Subpart 2 [Subgrants to LEAs]; and 3% of the funds 
to make subgrants to local partnerships as described in Subpart 
3 [Subgrants to Eligible Partnerships].
      HR with an amendment to read as follows:

``SEC. 2113. STATE USE OF FUNDS.

      ``(a) In General.--A State that receives a grant under 
section 2111 shall--
            ``(1) reserve 95 percent of the funds to make 
        subgrants to local educational agencies as described in 
        subpart 2 [Subgrants to Local Educational Agencies];
            ``(2) reserve 2.5 percent (or, for a fiscal year 
        described in subsection (b), the percentage determined 
        under subsection (b)) of the funds to make subgrants to 
        local partnerships as described in subpart 3 [Subgrants 
        to Eligible Partnerships]; and
            ``(3) use the remainder of the funds for State 
        activities.
      ``(b) Special Rule.--For any fiscal year for which the 
total amount that would be reserved by all States under 
subsection (a)(2), if the State applied a 2.5 percentage rate, 
exceeds $125,000,000, the Secretary shall determine an 
alternative percentage that the States shall apply for that 
fiscal year under subsection (a)(2) so that the total amount 
reserved by all States under subsection (a)(2) equals 
$125,000,000.''
      24. House bill, but not Senate amendment, caps State 
administrative costs at 1% of the total State grant.
      SR with an amendment to read as follows:
            ``(4) Administrative costs.--A State educational 
        agency or State agency for higher education receiving a 
        grant under this part may use not more than 1 percent 
        of the amount of funds provided under the grant for 
        planning and administration related to carrying out 
        activities under subsection (b) [State Activities] and 
        subpart 3 [Subgrants to Eligible Partnerships].''
      25. Similar provisions.
      LC
      26. House bill, but not Senate amendment, provides that a 
grant to a State can only be awarded if the State agrees to 
distribute the funds described in this subsection as subgrants 
to LEAs.
      SR
      27. House bill, but not Senate amendment, contains a hold 
harmless provision for LEAs.
      SR
      28. House bill, but not Senate amendment, contains a 
provision for nonparticipating agencies.
      SR
      29. House bill, but not Senate amendment, contains a 
provision for ratable reduction.
      SR
      30. Similar provisions except House bill provides for 
allotment of additional funds (above the LEA hold harmless 
provision).
      SR
      31. Similar provisions (20% based on population) except 
that House bill is based on the relative enrollment in public 
and private nonprofit elementary and secondary schools within 
LEAs and Senate amendment is based on the number of individuals 
age 5 through 17 in the geographic area served by LEAs.
      HR
      32. Similar provisions (80% based on poverty) except that 
House bill defines poverty here based on OMB definition and 
Senate amendment defines poverty in Section 2102 based on OMB 
definition.
      LC
      33. House bill, but not Senate amendment, provides that 
all new funding above the LEA hold harmless level goes out 50% 
for LEAs and 50% for Math and Science partnerships under 
Subpart 2.
      HR
      34. House bill, but not Senate amendment, requires States 
to award competitive subgrants for Math and Science 
partnerships (Senate amendment Section 2201 contains separate 
program for math and science partnerships).
      HR
      35. Under House bill, but not Senate amendment, although 
50% of the excess is for partnerships, that amount cannot equal 
more than 15% to 20% of the total state allocation minus State 
reservation, the precise percentage in that range being chosen 
by the State.
      HR
      36. Under House bill, but not Senate amendment, States 
must award at least 15%--but not more than 20%--of the funds 
(at the discretion of the State) on a competitive basis to 
eligible partnerships under Subpart 2.
      HR
      37. House bill lists authorized activities. Senate 
amendment requires SEA to carry out one or more of the listed 
activities, including through a grant or contract with a for-
profit or nonprofit entity.
      HR
      38. Similar provision except that Senate amendment 
includes language regarding principals.
      HR
      39. Similar provision except the Senate amendment 
includes language regarding principals.
      HR
      40. Similar provision.
      SR
      41. Similar provision except that Senate amendment 
includes language regarding technology literacy and principals 
(Senate amendment also uses term ``performance standards'').
      HR with an amendment to strike ``performance'' and insert 
``academic''.
      42. Similar provisions except that Senate amendment, but 
not House bill, specifically mentions ``assistant principals,'' 
``team teaching,'' and ``reduced schedules.''
      HR with an amendment to read as follows:
      ``(2) Carrying out programs that provide support, 
including during their initial experience, to teachers, 
principals, or assistant principals, such as programs that 
provide teacher mentoring, team teaching, reduced schedules, 
and intensive professional development.''
      43. House bill similar to Senate amendment (8) below.
      SR
      44. Similar provisions except that Senate amendment, but 
not House bill, includes principals and specifically includes 
MA recipients.
      HR
      45. House bill, but not Senate amendment, emphasizes math 
and science.
      SR
      46. Similar provisions except that Senate amendment 
includes language for pupil services personnel and recruiting 
specialists in core academic subjects (Language in Senate 
amendment paragraph (6) largely duplicates Senate amendment 
paragraph (5)).
      HR with an amendment to strike Senate (6) and amend 
Senate (5) to read as follows:
            ``(5)(A) Developing and implementing effective 
        mechanisms to assist local educational agencies and 
        schools in effectively recruiting and retaining highly 
        qualified teachers and principals, including 
        specialists in core academic subjects, and pupil 
        services personnel.
            ``(B) Special rule.--Funds under this paragraph may 
        be used for pupil services personnel only in cases in 
        which the State educational agency deems appropriate, 
        if the State educational agency is making progress 
        toward meeting the objectives described in section 
        2141(a) [Accountability], and in a manner consistent 
        with mechanisms to assist local educational agencies 
        and schools in effectively recruiting and retaining 
        highly qualified teachers and principals.''
      47. House bill provides for reforming tenure systems and 
implementing teacher testing and other procedures to 
expeditiously remove ineffective teachers from the classroom. 
Senate amendment provides for testing new teachers for subject 
matter knowledge, and testing the teachers for State 
certification or licensing (similar to House bill (iii) above).
      HR/SR with an amendment to combine language in House bill 
and Senate amendment and add report language:
            ``(8) Reforming tenure systems, implementing 
        teacher testing for teachers for subject matter 
        knowledge, and implementing teacher testing for 
        teachers for State certification or licensing, 
        consistent with title II of the Higher Education Act of 
        1965.''
      Report Language:
      The conferees recognize that a State educational agency 
may elect to reform tenure systems and implement teacher 
testing to expeditiously remove ineffective teachers from the 
classroom, while ensuring due process consistent with State 
law.
      48. Similar provisions regarding tenure reform.
      HR/SR (addressed in Note 47).
      49. Senate amendment contains no similar provision.
      SR with an amendment to strike ``enhanced performance'' 
and after ``strategies'' insert ``to document student academic 
gains or increases in teachers' mastery of subjects they 
teach.''
      50. Senate amendment contains no similar provision.
      SR with an amendment to combine with Note 65.
            ``(18) Fulfilling the State's responsibilities 
        concerning proper and efficient administration of the 
        programs carried out under this part including 
        technical assistance to local educational agencies.''
      51. Similar provision except that House bill provides 
that reciprocity agreements cannot weaken State teacher 
certification requirements and Senate amendment includes 
principals.
      SR with an amendment to insert ``and principal'' after 
``reciprocity of teacher''.
      52. Senate amendment contains no similar provision.
      SR with an amendment to combine with Note 64.
            ``(8) Developing or assisting local educational 
        agencies in the development and utilization of proven, 
        innovative strategies to deliver intensive professional 
        development programs that are both cost-effective and 
        easily accessible, such as through the use of 
        technology, peer networks, and distance learning.''
      53. Senate amendment, but not House bill, includes 
administrators.
      HR
      54. Similar provision except that Senate amendment 
contains specific language regarding the ability to collect, 
manage, and analyze data to improve teaching, decision making 
and school improvement efforts and accountability.
      HR
      55. Similar provision except that House bill includes 
language on assessments for teachers and differential pay for 
teachers in high need subject areas and House bill also focuses 
on teachers in high need subject areas in high-poverty 
districts.
      SR with an amendment to strike ``rigorous assessments for 
teachers'' and add report language:
      Report Language:
      The Conferees note that locally negotiated and 
collaboratively designed programs for performance based pay 
systems are an effective type of merit based pay in that 
performance based pay systems reward teachers for working 
together to raise student achievement for all students 
throughout the school.
      56. Senate amendment contains no similar provision.
      SR
      57. Senate amendment contains no similar provision.
      SR
      58. House bill contains no similar provision.
      HR (LC use ``highly qualified'' throughout this Title; LC 
with Note 78).
      59. House bill contains no similar provision.
      HR
      60. House bill contains no similar provision.
      HR
      61. House bill contains no similar provision.
      HR
      62. House bill contains no similar provision.
      SR
      63. House bill contains no similar provision.
      HR with an amendment to read as follows:
            ``(15) Providing professional development for 
        teachers and principals and, in cases in which a State 
        educational agency deems appropriate, supporting the 
        participation of pupil services personnel in the same 
        type of professional development activities made 
        available to teachers and principals.''
      64. House bill contains no similar provision.
      SR (see Note 52).
      65. House bill contains no similar provision.
      SR (see Note 50).
      66. Similar coordination provision.
      LC
      67. Similar provisions.
      LC
      68. Senate amendment, but not House bill, requires a 
description of how activities will be based on review of 
relevant research and include explanation of why they are 
expected to improve student performance and outcomes.
      HR with an amendment to strike ``relevant'' and insert 
``scientifically based'' and to strike ``performance and 
outcomes'' and insert ``academic achievement''.
      69. Similar provisions.
      LC
      70. Senate amendment, but not House bill, requires a 
description of how the SEA will ensure that activities are 
aligned with State content standards, student performance 
standards, and assessments
      HR with an amendment read as follows:
            ``(2) A description of how the State educational 
        agency will ensure that activities assisted under this 
        subpart are aligned with State academic content and 
        achievement standards, assessments, and State and local 
        curriculum.''
      71. House bill, but not Senate amendment, requires a 
description of how the State will use funds under this Part to 
meet the requirements of section 1119(a)(2).
      SR (LC on reference to section 1119(a)(2)).
      72. Senate amendment, but not House bill, requires a 
description of how SEA will use funds to improve the quality of 
the State's teachers, principals, and assistant principals, and 
the educational opportunities for students.
      HR with an amendment to strike ``, and the educational 
opportunities for students''.
      73. Similar coordination provisions except House bill 
includes 21st Century Schools (Title V, Part A--Subpart 2), and 
Senate amendment includes Title II of HEA.
      SR with an amendment to read as follows:
            ``(3)(A) A description of how the State educational 
        agency will coordinate professional development 
        activities authorized under this part with professional 
        development activities provided under other Federal, 
        State, and local programs.
            ``(B) The application shall also describe the 
        comprehensive strategy that the State educational 
        agency will take as part of such coordination effort, 
        to ensure that teachers are trained in the utilization 
        of technology so that technology and its applications 
        are effectively used in the classroom to improve 
        teaching and learning in all curriculum and content 
        areas, as appropriate.''
      74. House bill, but not Senate amendment, requires a 
description of how the State will encourage the development of 
proven, innovative strategies to deliver intensive professional 
development programs such as through the use of technology and 
distance learning.
      SR
      75. Similar provisions except House bill cites language 
(Section 2033) defining a broad range of attributes for the 
professional development that is to be supported and Senate 
amendment includes input from paraprofessionals, 
administrators, and other school personnel (but not 
principals).
      HR/SR to combine language (LC on reference to section 
2033):
            ``(6)(A) A description of how the State educational 
        agency will ensure compliance with section 2033 and how 
        the activities to be carried out are developed 
        collaboratively and are based on the input of teachers, 
        principals, parents, administrators, paraprofessionals, 
        and other school personnel.
            ``(B) In the case of a State where the State 
        educational agency is not the entity responsible for 
        teacher professional standards, licensing, and 
        certification an assurance that the state activities 
        under this subpart are carried out in conjunction with 
        the entity responsible for these activities under State 
        law.''
      76. Senate amendment, but not House bill, requires a 
description of how the SEA will ensure that the professional 
development (including teacher mentoring) needs of teachers 
will be met using funds under this Subpart and Subpart 2.
      HR
      77. Senate amendment, but not House bill, requires a 
description of the SEA's annual measurable performance 
objectives under Section 2141 (State Performance Objectives and 
Accountability).
      HR with an amendment to strike ``performance''.
      78. House bill contains no similar provision (although 
House bill (2) and Senate amendment (9) both have to do with 
the quality objectives regarding teachers).
      HR with an amendment to read as follows (LC on references 
to sections 1119 and 2141):
            ``(9) A description of how the State educational 
        agency will use funds under this part to meet the 
        teacher and paraprofessional requirements of section 
        1119 and how the State educational agency will hold 
        local educational agencies accountable for meeting the 
        measurable objectives under section 2141.''
      79. Senate amendment, but not House bill, requires an 
assurance that the SEA will consistently monitor the progress 
of each LEA in meeting the performance objectives described in 
Section 2142 (Local Performance Objectives and Accountability).
      SR (see Note 172).
      80. Senate amendment, but not House bill, requires--in 
the case of a State that has a charter school law that exempts 
teachers from State certification and licensing requirements--a 
description of the basis for the exemption.
      HR with an amendment to read as follows:
            ``(11) In the case of a State that has a charter 
        school law that exempts teachers from State 
        certification and licensing requirements, the State 
        educational agency shall include as part of their 
        application the specific portion of the State law which 
        provides for this exemption.''
      81. House bill contains no similar provision regarding 
participation by private school children and teachers.
      HR
      82. Similar provision except House bill includes language 
regarding State notice and opportunity for a hearing.
      SR with an amendment to read as follows:
      ``(c) General Approval.--A State educational agency's 
application submitted pursuant to subsection (a) shall be 
deemed to be approved by the Secretary unless the Secretary 
makes a written determination, prior to the expiration of the 
120 day period beginning on the date that the Secretary 
receives the application, that the application is in violation 
of this part.
      ``(d) Disapproval.--The Secretary shall not finally 
disapprove an application, except after giving the State 
educational agency notice and opportunity for a hearing.
      ``(e) Special Rule.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with the 
provisions of this part, the Secretary shall:
            ``(1) implement the procedures described in 
        subsection (d); and
            ``(2) notify the State educational agency of the 
        findings of non-compliance where such notification 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to those noncompliant provisions, needed to 
                make the application compliant.
      ``(f) If the State educational agency does not respond to 
the notification described in subsection (e)(2) within 45 days, 
such application is not approved.
      ``(g) If the State educational agency does respond to the 
Secretary's notification described in subsection (e)(2) within 
45 days with the requested information necessary to make the 
application compliant, the Secretary shall approve or 
disapprove such application not later than 45 days following 
its resubmission or the end of the 120 day period described in 
subsection (c), whichever is later.''
      83. House bill contains no similar provision. Senate 
amendment provides funds to the State agency for Higher 
Education to make competitive subgrants to eligible 
partnerships.
      HR with an amendment to read as follows and report 
language:

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. SUBGRANTS.

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

``SEC. 2132. APPLICATIONS.

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

``SEC. 2133. USE OF FUNDS.

      ``(a) In General.--An eligible partnership that receives 
a subgrant under section 2131 shall use the funds made 
available through the subgrant for--
            ``(1) professional development activities in core 
        academic subjects to ensure that teachers and highly 
        qualified paraprofessionals, and, if appropriate, 
        principals have subject matter knowledge in the 
        academic subjects that the teachers teach including the 
        use of computer related technology to enhance student 
        learning and that principals and assistant principals 
        have the instructional leadership skills that will help 
        such principals and assistant principals work most 
        effectively with teachers to help students master core 
        academic subjects; and
            ``(2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, 
        highly qualified paraprofessionals, or principals of 
        schools served by such agencies, for sustained, high-
        quality professional development activities that--
                    ``(A) ensure that the individuals are able 
                to use State academic content standards, 
                academic achievement standards, and assessments 
                to improve instructional practices and improve 
                student academic achievement;
                    ``(B) may include intensive programs 
                designed to prepare such individuals who will 
                return to a school to provide instruction 
                related to the professional development 
                described in subparagraph (A) to other such 
                individuals within such school; and
                    ``(C) may include activities of 
                partnerships between institutions of 1 or more 
                local educational agencies, 1 or more schools 
                served by such local educational agencies, and 
                1 or more institutions of higher education for 
                the purpose of improving teaching and learning 
                at low-performing schools.
      ``(b) Coordination.--An eligible partnership that 
receives a subgrant to carry out this subpart and a grant under 
section 203 of the Higher Education Act of 1965 shall 
coordinate the activities carried out under this subpart and 
the activities carried out under section 203.

``SEC. 2134. DEFINITIONS.--

      ``In this subpart--
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means an entity that--
                    ``(A) shall include--
                            ``(i) a private or State 
                        institution of higher education and the 
                        division of the institution that 
                        prepares teachers and principals;
                            ``(ii) a school of arts and 
                        sciences; and
                            ``(iii) a high need local 
                        educational agency; and
                    ``(B) may include another local educational 
                agency, a public charter school, an elementary 
                school or secondary school, an educational 
                service agency, a nonprofit educational 
                organization, another institution of higher 
                education, a school of arts and sciences within 
                such an institution, the division of such an 
                institution that prepares teachers and 
                principals, a nonprofit cultural organization, 
                an entity carrying out a prekindergarten 
                program, a teacher organization, principal 
                organization, or a business.
            (2) Low-performing school.--The term `low-
        performing school' means an elementary school or 
        secondary school that is identified under section 
        1116.''
      Report Language:
      The Conferees intend that the partnerships described in 
section 2131 [Subgrants to Eligible Partnerships] include 
education councils and professional development schools, or 
similar partnerships, including those funded under Section 203 
of the Higher Education Act, that contain 1 or more local 
educational agencies, acting on behalf of elementary schools or 
secondary schools served by the agencies and 1 or more 
institutions of higher education, including community colleges. 
The purpose of these partnerships is to provide professional 
development to teachers to ensure that the teachers are 
prepared and meet high standards for teaching, particularly by 
educating and preparing prospective teachers in a classroom 
setting and enhancing the knowledge of in-service teachers 
while improving the education of the classroom students. Such 
partnerships also substantially increase interaction between 
faculty at institutions of higher education and new and 
experienced teachers, principals, and other administrators at 
elementary schools or secondary schools, and provide support, 
including preparation time, for such interaction.
      84. Similar provision.
      HR with an amendment to insert ``local educational 
agencies'' after ``higher education,''.
      85. House bill contains no similar provision.
      HR with an amendment to insert ``Improve and'' before 
``upgrade'' and insert ``, training'' after ``recruiting''.
      86. Similar provisions (wording differs).
      HR
      87. Senate amendment contains no similar provision.
      HR
      88. Similar provisions (wording differs).
      SR
      89. House bill contains no similar provision.
      HR
      90. House bill contains no similar provision.
      HR
      91. House bill reserves funds for States to award grants 
to partnerships (see Section 2023). Senate amendment authorizes 
a separate competitive grant program with grants awarded by the 
Secretary.
      HR with an amendment to read as follows:

         ``Subpart 1--Grants for Math and Science Partnerships

``SEC. 2211. GRANTS AUTHORIZED.

      ``(a) Grants by the Secretary.--In any fiscal year in 
which the appropriations for this subpart are less than 
$100,000,000, the Secretary is authorized to award grants, on a 
competitive basis, to eligible partnerships to carry out the 
authorized activities in section 2213.
      ``(b) Grants to States.--
            ``(1) In any fiscal year in which the 
        appropriations for this subpart equal or exceed 
        $100,000,000, the Secretary is authorized to make 
        grants to State educational agencies to enable the 
        State educational agency to award grants, on a 
        competitive basis, to eligible partnerships to carry 
        out the authorized activities in section 2213.
            ``(2) Subject to subparagraph (1), the Secretary 
        shall allot the amount made available under this 
        subpart for a fiscal year among the States in 
        proportion to the number of children, aged 5 to 17, who 
        reside within the State from families with incomes 
        below the poverty line.
            ``(3) In any fiscal year in which this subsection 
        applies, no State shall receive less than one half of 
        one percent.''
      92. Senate amendment provides that the Secretary award 
grants for 5 years. House bill permits grants between 2 and 5 
years.
      HR with an amendment to strike ``5'' and insert ``3''.
      93. Senate amendment, but not House bill, contains a 
provision that requires matching funds from States.
      HR with an amendment to read as follows:
      ``(c) Special Rule.--Grant funds received under this 
subpart shall be used to supplement and not supplant funds that 
would otherwise be used for activities funded under this 
subpart.''
      94. Senate amendment requires that the Secretary give a 
priority for high need LEAs here, while House bill definition 
of ``eligible partnership'' requires that eligible partnerships 
contain a high need LEA (Section 2026).
      SR
      95. Similar provision except that House bill is an 
application to the State and the Senate amendment is an 
application to the Secretary.
      HR with an amendment to read as follows:

``SEC. 2212. APPLICATION REQUIREMENTS.

      ``(a) In General.--Each eligible partnership desiring a 
grant under this subpart shall submit an application to the 
Secretary, if funds are awarded under section 2211(a), and to 
the State educational agency, if funds are awarded under 
section 2211(b), at such time, in such manner, and accompanied 
by such information as the Secretary or State educational 
agency, as the case may be, may require.''
      96. House bill requires a general assessment while the 
Senate amendment delineates specific elements that may be 
included in assessment of teacher quality and professional 
development.
      HR with an amendment to read as follows and report 
language:
            ``(1) the results of a comprehensive assessment of 
        the teacher quality and professional development needs 
        of all the schools and agencies participating in the 
        eligible partnership with respect to the teaching and 
        learning of mathematics and science.''
      Report Language:
      The application requirements for the partnership grants 
include completing and reporting on a comprehensive assessment 
of teacher quality in the relevant schools and districts. Such 
an assessment should include relevant information regarding the 
needs of the schools and districts with respect to the quality 
of teaching and learning of mathematics and science, including, 
but not limited to: (1) information regarding the participation 
of students in advanced courses in mathematics and science; (2) 
the percentages of secondary school classes in mathematics and 
science taught by teachers with academic majors in mathematics 
and science (respectively); (3) the number and percentage of 
mathematics and science teachers who participate in content-
based professional development activities; and (4) the extent 
to which elementary teachers have the necessary content 
knowledge to teach mathematics and science.
      97. Similar provision except that Senate amendment 
includes local standards.
      SR with an amendment to insert ``and achievement'' after 
``content''.
      98. Similar provisions.
      SR with an amendment to strike ``relevant'' and insert 
``scientifically based'' in House (3).
      99. Senate amendment, but not House bill, requires a 
description of how the SEA and LEA will comply with 
requirements regarding participation by private school children 
and teachers.
      HR with an amendment to read as follows:
            ``(5) a description of how the eligible partnership 
        will continue the activities funded under this subpart 
        after the original Federal grant has ended.''
      100. House bill provides that the SEA, working in 
conjunction with the State agency for higher education (if such 
agencies are separate), shall award subgrants on a competitive 
basis to eligible partnerships. Senate amendment authorizes a 
separate competitive grant program with grants awarded by the 
Secretary (see Section 2211).
      HR
      101. House bill, but not Senate amendment, provides that 
the State shall award for a period of not less than 2 and not 
more than 5 years.
      HR
      102. Similar provision.
      HR
      103. House bill contains no similar provision.
      HR
      104. House bill contains no similar provision.
      HR
      105. House bill contains no similar provision.
      HR
      106. Similar provision except that House bill is more 
detailed in summer professional development workshop 
requirements.
      SR with an amendment to insert ``including follow-up 
training'' after ``institutes''.
      107. Similar provisions except that House bill is focused 
on recruiting math, engineering and science students or 
mathematicians, engineers and scientists to teaching and Senate 
amendment is focused is on recruitment of math and science 
majors.
      HR with an amendment to insert ``, engineering'' after 
mathematics in Senate (3) and insert ``, engineering'' after 
``mathematics'' each place it appears in Senate (3)(A).
      108. House bill contains no similar provision.
      HR
      109. House bill contains no similar provision.
      HR with an amendment to insert ``, engineering'' after 
``mathematics''.
      110. House bill contains no similar provision.
      HR with an amendment to insert ``, engineering'' after 
``mathematics''.
      111. House bill contains no similar provision.
      HR with an amendment to insert ``, engineering'' after 
``mathematics'' and strike ``grounded in'' and insert ``based 
on scientifically based''.
      112. House bill contains no similar provision.
      HR with an amendment to strike ``novice'' and insert 
``beginning and other''.
      113. Similar provision, except House bill includes 
mathematicians and engineers, and states a purpose for the 
activity.
      SR
      114. House bill contains no similar provision.
      HR with an amendment to strike ``master'' and insert 
``exemplary''.
      115. House bill contains no similar provision.
      SR
      116. House bill contains no similar provision.
      SR
      117. Senate amendment provides for a priority for high 
need LEAs only for the mastery incentive system (House bill 
requires that all partnerships contain a high need LEA).
      SR
      118. House bill, but not Senate amendment, requires 
States to give priority to applications seeking to fund summer 
workshops.
      HR
      119. House bill contains no similar provision.
      SR
      120. House bill contains no similar provision.
      HR with an amendment to read as follows:
            ``(12) Training teachers and developing programs to 
        encourage young women and other underrepresented 
        individuals in mathematics and science careers 
        (including engineering and technology) to pursue 
        postsecondary degrees in majors leading to such 
        careers.''
      121. Senate amendment does not contain a provision 
regarding coordination with the Higher Education Act.
      SR with an amendment to read as follows (see Note 299):
      ``(e) Coordination and Consultation.--
            ``(1) Partnerships receiving grants under section 
        203 of the Higher Education Act of 1965 (20 U.S.C. 
        1023) shall coordinate the use of such funds with any 
        related activities carried out by such partnership with 
        funds made available under this subpart; and
            ``(2) In carrying out the activities authorized by 
        this subpart, the Secretary shall consult and 
        coordinate activities with the Director of the National 
        Science Foundation, particularly with respect to the 
        appropriate roles for the Department and the Foundation 
        in the conduct of summer workshops, institutes, or 
        partnerships to improve mathematics and science 
        teaching in elementary schools and secondary schools.''
      122. Similar provision, except all elements listed for 
Senate amendment are required; only House bill (1) is required.
      SR with an amendment to read as follows (combine Notes 
122 through 128):

``SEC. 2024. EVALUATION AND ACCOUNTABILITY PLAN.

      ``(a) In General.--Each eligible partnership receiving a 
subgrant under this subpart shall develop an evaluation and 
accountability plan for activities assisted under this subpart 
that includes rigorous objectives that measure the impact of 
activities funded under this subpart.
      ``(b) Contents.--The plan--
            ``(1) shall include measurable objectives to 
        increase the number of mathematics and science teachers 
        who participate in content-based professional 
        development activities; and
            ``(2) shall include measurable objectives for 
        improved student performance on State mathematics and 
        science assessments or, where applicable, an 
        International Math and Science Study assessment;
            ``(3) may include objectives and measures for--
                    ``(A) increased participation by students 
                in advanced courses in mathematics and science;
                    ``(B) increased percentages of elementary 
                school teachers with academic majors or minors, 
                or group majors or minors, in mathematics, 
                engineering, or the sciences;
                    ``(C) increased numbers of mathematics and 
                science teachers who participate in content-
                based professional development activities; and
                    ``(D) increased percentages of secondary 
                school classes in mathematics and science 
                taught by teachers with academic majors in 
                mathematics and science, respectively.''
      123. House bill, but not Senate amendment, requires plan 
to include goals related to increasing the number of math and 
science teachers participating in content-based professional 
development.
      SR (see Note 122).
      124. Similar provision, except Senate amendment includes 
performance on TIMSS.
      SR (see Note 122).
      125. Identical provisions.
      SR (see Note 122).
      126. Senate amendment contains no similar provision.
      SR (see Note 122).
      127. House bill contains no similar provision.
      SR (see Note 122).
      128. Identical provisions.
      SR (see Note 122).
      129. Similar provision.
      LC
      130. Similar provision. House bill language applies only 
to subgrants made for 5-year period (House bill permits grants 
between 2 and 5 years to be made; only 5 year grants can be 
made under Senate amendment.
      LC with an agreement to strike ``performance''.
      131. Similar provision except House bill applies only to 
subgrants made for 5-year period (House bill permits grants 
between 2 and 5 years; only 5 year grants can be made under 
Senate amendment).
      HR/SR (delete language).
      132. Similar provision.
      HR with an amendment to insert ``if funds are awarded 
under section 2211(a)'' after ``a State educational agency'' 
(LC on reference to section 2211(a)).
      133. House bill does not specifically include an 
engineering department, but identifies private and state-
supported public institutions of higher education; Senate 
amendment generally refers to institutions of higher education.
      HR
      134. House bill, but not Senate amendment, requires all 
partnerships to include a high need LEA.
      SR
      135. House bill allows another entire higher education 
institutions or teaching training departments within them. 
Senate amendment limits eligibility to only specific 
departments of higher education institutions.
      HR
      136. House bill, but not Senate amendment, specifically 
includes charter schools and consortia.
      SR
      137. Identical provision.
      LC
      138. Similar provision except that Senate amendment 
identifies a broader array of entities.
      HR with an amendment to redraft and include report 
language:
            ``(iv) a nonprofit or for-profit organization of 
        demonstrated effectiveness.''
      Report Language:
      The conferees recognize that a nonprofit or for-profit 
organization of demonstrated effectiveness may include a 
museum, research institution, or a or high-impact public 
coalition composed of leaders from business, kindergarten 
through grade 12 education, institutions of higher education, 
public policy organizations, and other organizations.
      139. Senate amendment defines ``high need local 
educational agency'' here.
      HR/SR with an agreement to move redrafted definition of 
`high need local educational agency to Title II definitions 
(see Note 297).
      140. Similar definition (wording differences).
      LC
      141. Similar provision.
      LC
      142. Senate amendment, but not House bill, contains 
special rule to allow grants to be used to hire teachers to 
reduce class size (House bill groups allowable activities 
together and also allows hiring of teachers).
      SR
      143. House bill list of uses is permissive. Senate 
amendment requires LEAs to carry out at least 1 of these 
activities.
      HR
      144. Senate amendment, but not House bill, allows LEAs to 
carry out these activities through a grant or contract with a 
for-profit or nonprofit entity.
      HR
      145. House bill is similar to Senate amendment Section 
2123(a) (Special Rule). Senate amendment specifies retention as 
a focus on these activities (in subsequent provision House bill 
addresses retention).
      HR with an amendment to read as follows:
            ``(8)(A) Developing and implementing mechanisms to 
        assist schools in effectively recruiting and retaining 
        highly qualified teachers who will be assigned teaching 
        positions within their field, principals, and pupil 
        services personnel.
            ``(B) Special rule.--Funds under this paragraph may 
        be used for pupil services personnel only in cases in 
        which the local educational agency deems appropriate, 
        if the local educational agency is making progress 
        toward meeting the objectives described in section 
        2141(a) [Accountability], and in a manner consistent 
        with mechanisms to assist schools in effectively 
        recruiting and retaining highly qualified teachers and 
        principals.''
      146. Similar recruitment activities except that House 
bill allows funds to be used to recruit individuals who are 
underrepresented in the teaching field and the Senate amendment 
allows funds to be used to recruit teachers in order to reduce 
class size and special education teachers.
      SR with an amendment to read as follows:
            ``(5) Initiatives to assist in recruiting, 
        particularly activities that have proven effective in 
        retaining highly qualified teachers, and hiring highly 
        qualified teachers who will be assigned teaching 
        positions within their field, including--
                    ``(A) providing scholarships, signing 
                bonuses or other financial incentives, such as 
                differential pay, for teachers to teach in 
                schools or in academic subject areas in which 
                there exists a shortage of such highly 
                qualified teachers within a school or the local 
                educational agency;
                    ``(B) recruiting and hiring highly 
                qualified teachers to reduce class size, 
                particularly in the early grades;
                    ``(C) establishing programs that--
                            ``(i) train and hire regular and 
                        special education teachers (which may 
                        include hiring special education 
                        teachers to team-teach in classrooms 
                        that contain both children with 
                        disabilities and nondisabled children);
                            ``(ii) train and hire teachers of 
                        special needs children, who are highly 
                        qualified as well as teaching 
                        specialists in core academic subjects 
                        who will provide increased 
                        individualized instruction to students;
                            ``(iii) recruit qualified 
                        professionals from other fields, 
                        including highly qualified 
                        paraprofessionals and provide such 
                        professionals with alternative routes 
                        to teacher certification, including 
                        hiring policies that ensure 
                        comprehensive recruitment efforts as a 
                        way to expand the applicant pool, such 
                        as through identifying teachers 
                        certified through alternative routes, 
                        coupled with a system of intensive 
                        screening designed to hire the most 
                        qualified applicant; and
                            ``(iv) provide increased 
                        opportunities for minorities, 
                        individuals with disabilities, and 
                        other individuals underrepresented in 
                        the teaching profession.''
      147. House bill contains no similar provision.
      HR with an amendment to read as follows and report 
language:
            ``(1) Providing professional development activities 
        that improve the knowledge of teachers and principals, 
        and, where appropriate paraprofessionals, concerning--
                    ``(A) 1 or more of the core academic 
                subjects that the teachers and principals 
                teach;
                    ``(B) effective instructional strategies, 
                methods, and skills and use of State academic 
                content standards, student academic achievement 
                standards, and assessments to improve teaching 
                practices and student achievement;
                    ``(C) effective instructional practices 
                that--
                            ``(i) involve collaborative groups 
                        of teachers and administrators;
                            ``(ii) provide training in how to 
                        teach and address the needs of students 
                        with different learning styles, 
                        particularly students with 
                        disabilities, students with special 
                        learning needs (including those who are 
                        gifted and talented) and students with 
                        limited English proficiency;
                            ``(iii) provide training in methods 
                        of improving student behavior in the 
                        classroom and how to identify early and 
                        appropriate interventions to help 
                        children described in (ii) learn;
                            ``(iv) provide training to enable 
                        teachers and principals to involve 
                        parents in their child's education, 
                        especially parents of LEP and immigrant 
                        children; and
                            ``(v) provide training on how to 
                        understand and use data and assessments 
                        to improve classroom practice and 
                        student learning.''
      Report Language:
      The Conferees note that effective instructional practices 
that involve collaborative groups of teachers and 
administrators includes such strategies as the provision of 
dedicated time for collaborative lesson planning and curriculum 
development meetings; consultation with exemplary teachers; 
team teaching, peer observation, and coaching; provision of 
short-term and long-term visits to classrooms and schools; the 
establishment and maintenance of local professional development 
networks that provide a forum for interaction among teachers 
and administrators about content knowledge and teaching and 
leadership skills; and the provision of release time as needed 
for such activities.
      The Conferees recognize that effective professional 
development strategies, methods, and skills may include 
implementing a year-round school schedule that allows the local 
educational agency to increase pay for teachers.
      148. House bill specifies activities to promote retention 
of highly qualified teachers and principals, particularly in 
schools with high percentage of low-achieving students. Senate 
amendment provides for induction and support for teachers, 
principals, and assistant principals during their first 3 years 
of employment as teachers, principals, or assistant principals.
      SR with an amendment to: strike ``newly hired'' and 
``such as'' in House (A); strike ``master'' and insert 
``exemplary'' in House (A); redesignate Senate (4) as new House 
(B); redesignate House (B) as (C); and redesignate House (C) as 
(D) and insert ``and students with disabilities'' after 
``minority groups''.
      149. House bill focuses mentoring on newly hired teachers 
as part of effort to retain highly qualified teachers and 
principals. Senate amendment specifies that teacher and 
principal mentoring is an allowable LEA activity.
      SR on House (3)(A) with an amendment to read as follows 
(LC on references to section 2033 and part D):
                    ``(A) innovative professional development 
                programs (which may be through partnerships 
                including institutions of higher education), 
                including programs that train teachers and 
                principals to integrate technology into 
                curricula and instruction to improve teaching, 
                learning, and technology literacy, are 
                consistent with the requirements of section 
                2033, and are coordinated with part D;''
      SR on House (3)(B)
      150. Similar provisions (wording differs).
      LC with agreement to add report language:
      Report Language:
      The Conferees note that locally negotiated and 
collaboratively designed programs for performance based pay 
systems are an effective type of merit based pay in that 
performance based pay systems reward teachers for working 
together to raise student achievement for all students 
throughout the school.
      151. Senate amendment contains no similar provisions.
      SR with an amendment to strike House (4) and strike 
``exceptionally'' in House (5).
      152. Identical provision.
      LC with an agreement to strike ``master'' and insert 
``exemplary''.
      153. House bill, but not Senate amendment, stipulates 
that if funding for partnerships under Subpart 2 is less than 
15% of the State allocation minus state reservation for 
activities, administration and planning, the State shall use 
not less than the amount expended by the agency under section 
2206(b) of this Act (as in effect on the day before the date of 
the enactment of the No Child Left Behind Act of 2001), for the 
fiscal year preceding the year in which such enactment occurs, 
to carry out professional development activities in mathematics 
and science.
      HR
      154. House bill contains no similar provision.
      SR
      155. House bill contains no similar provision.
      HR with an amendment to read as follows (see Note 297 for 
definition of exemplary teacher):
            ``(7) Carrying out programs and activities related 
        to exemplary teachers.''
      156. Similar provision.
      HR
      157. Senate amendment, but not House bill, requires 
applications to be based on the needs assessment.
      HR
      158. House bill contains no similar provisions.
      HR with amendment to:
            Strike ``content standards, performance standards'' 
        in Senate (b)(1)(A)(i) and insert ``academic standards, 
        student academic achievement'';
            Strike ``relevant'' in Senate (b)(1)(B) and insert 
        ``scientifically based''; and
            Strike ``and student performance'' in Senate 
        (b)(2).
      159. Similar provisions except House bill includes 
schools with large average class size.
      SR with an agreement to use ``highly qualified''.
      160. Similar provision.
      SR
      161. Similar provisions although House bill includes 21st 
Century Schools (Title V, Part A, Subpart 2), and Senate 
amendment includes Title II of HEA.
      SR with an amendment to strike all after ``local 
programs'' in House (2).
      162. House bill contains no similar provision.
      HR with an amendment to combine with Note 164:
            ``(5) A description of the professional development 
        activities that will be made available to teachers and 
        principals under this subpart and how the local 
        educational agency will ensure that the professional 
        development (which may include teacher mentoring) needs 
        of teachers and principals will be met using funds 
        under this subpart.''
      163. Senate amendment contains no similar provision.
      SR with an amendment to strike ``to utilize technology to 
improve teaching and learning'' and insert ``to integrate 
technology into curricula and instruction to improve teaching, 
learning, and technology literacy'' (see Note 149).
      164. House bill contains no similar provision.
      SR
      165. Similar provisions. House bill only applies to 
application preparation and specifies administrators. Senate 
amendment applies to planning activities and application 
preparation and includes paraprofessionals and identifies other 
relevant school personnel.
      HR
      166. House bill contains no similar provision.
      HR
      167. House bill contains no similar provision.
      SR
      168. House bill contains no similar provision.
      SR (see Note 172).
      169. House bill contains no similar provision.
      HR with an amendment to read as follows:
            ``(11) A description of how the local educational 
        agency will provide training to enable teachers to--
                    ``(A) teach and address the needs of 
                children with different learning styles, 
                particularly students with disabilities, 
                students with special learning needs (including 
                those who are gifted and talented), and 
                students with limited English proficiency;
                    ``(B) improve student behavior in the 
                classroom and identify early and appropriate 
                interventions to help children described in (A) 
                learn;
                    ``(C) involve parents in their child's 
                education; and
                    ``(D) understand and use data and 
                assessments to improve classroom practice and 
                student learning.''
      170. House bill contains no similar provision.
      HR
      171. House bill contains no similar provisions on needs 
assessment.
      HR with an amendment to strike ``student performance'' in 
(2) and insert ``student academic achievement''.
      172. Senate amendment, but not House bill, contains 
accountability provisions for Title II. House bill contains 
accountability provisions in Title I and requires that all 
teachers be ``fully qualified'' by December 31, 2005.
      HR with an amendment to read as follows:

``SEC. XXXX. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

      ``(a) Improvement Plan.--After the second year of the 
plan described in section 1119(a)(2), if a State educational 
agency, based on the reports described under section 
1119(b)(1), determines that a local educational agency in the 
State has failed to make progress toward meeting the measurable 
objectives described in section 1119(a)(2), such local 
educational agency shall develop an improvement plan to enable 
the agency to meet such measurable objectives that specifically 
addresses issues that prevented the agency from meeting such 
measurable objectives.
      ``(b) Technical Assistance.--During the development of 
the improvement plan described in subsection (a) and throughout 
its implementation, the State educational agency shall--
            ``(1) provide technical assistance to the local 
        educational agency; and
            ``(2) provide technical assistance, if applicable, 
        to schools served by the local educational agency that 
        need assistance to enable the local educational agency 
        to meet the measurable objectives described in section 
        1119(a)(2).
      ``(c) Accountability.--After the third year of the plan 
described in section 1119(a)(2), if the State educational 
agency determines, based on the reports described under section 
1119(b)(1), that the local educational agency has failed to 
make progress toward meeting the measurable objectives 
described in section 1119(a)(2), and has failed to make 
adequate yearly progress as described under section 1111(b)(2), 
for 3 consecutive years, the State educational agency shall 
enter into an agreement with such agency on the use of its 
funds under this part. As part of this agreement, the State 
educational agency shall--
            ``(1) develop, in conjunction with the local 
        educational agency, teachers, and principals, 
        professional development strategies and activities, 
        based on scientifically based research, that the local 
        educational agency will use to meet the measurable 
        objectives described under section 1119(a)(2) and 
        require such agency to utilize such strategies and 
        activities; and
            ``(2) prohibit the use of funds received under 
        title I, part A to fund any paraprofessional hired 
        after such determination is made by the State 
        educational agency in subsection (c), except that if 
        the local educational agency can demonstrate that a 
        significant influx of population has substantially 
        increased student enrollment, or can demonstrate an 
        increased need for translators or assistance with 
        parental involvement activities, the State may allow 
        the hiring of new paraprofessionals, under title I, 
        part A, to address these specific needs.
      ``(d) During the development of the strategies and 
activities described in subsection (c)(1), the State 
educational agency shall, in conjunction with the local 
educational agency, provide funds directly to a school or 
schools served by such local educational agency, for the 
teachers to choose, in continuing consultation with the 
principal, professional development consistent with the 
requirements of [reference ``professional development'' 
definition in General Provisions] and coordinated with other 
reform efforts at the school.''
      173. House bill contains no similar provision.
      SR with agreement to send joint House and Senate letter 
to GAO.
      174. House bill requires that professional development 
meet the requirements of the state Title I plan that all 
teachers are fully qualified by December 31, 2005 and contains 
similar language to House bill Title I, Section 1119(A).
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      175. House bill contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      176. Similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      177. House bill contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      178. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      179. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      180. House bill contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      181. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      182. House bill requires that professional development 
activities be tied to ``scientifically based research.'' Senate 
amendment requires that activities be based on the ``best 
available research.''
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      183. Similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      184. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      185. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      186. House bill calls for professional development to 
enable teachers and principals to effectively use technology 
while Senate amendment seeks to strengthen teachers' ability to 
integrate technology into the curriculum.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      187. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      188. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      189. Similar provision (wording differs).
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      190. Similar provision (wording differs).
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      191. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      192. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      193. Senate amendment contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
`professional development' to General Provisions.
      194. Senate amendment contains no similar provision 
regarding Teacher Opportunity Payments.
      HR
      195. Senate amendment contains no similar provisions.
      HR
      196. House bill incorporates the Troops-to-Teachers 
program into the ESEA. Senate amendment amends current law 
(Troops-to-Teachers Program Act of 1999--Title XVII of the 
National Defense Authorization Act of Fiscal Year 2000). 
[References to Senate language regarding Troops-to-Teachers 
reflect current law language as amended by Senate amendment].
      SR
      197. House bill contains no similar provision.
      HR
      198. Similar provision. Senate amendment amends Section 
1701 to define ``administering Secretary'' to mean Secretary of 
Education (under House bill, by incorporation in ESEA, 
``Secretary'' is the Secretary of Education).
      SR
      199. Senate amendment amends Section 1701 to strike 
definition of ``alternative certification or licensure 
requirement'' from current law (House bill has no definition of 
that phrase).
      SR
      200. Senate amendment amends Section 1701 to add active 
and former members of the Coast Guard to definition of ``member 
of Armed Forces'' (House bill specifies that program is for 
members and former members of the Armed Forces which includes 
Coast Guard).
      SR
      201. Similar provisions. House bill specifies members and 
former members of the Armed Forces who meet requirements of 
Section 2042; Senate amendment specifies members of the Armed 
Forces who retire.
      SR
      202. House bill, but not Senate amendment, uses term 
``fully qualified'' to describe teachers.
      SR with an amendment to strike ``fully'' and insert 
``highly''.
      203. Senate amendment amends current law to add 
assistance to members of the active reserve forces to 
activities. House bill has no comparable language.
      SR (see Note 213).
      204. House bill specifies employment in schools or as 
vocational or technical teachers.
      SR
      205. Senate amendment specifies employment by LEAs with 
shortages.
      HR
      206. Similar provisions except under House bill, the 
memorandum of agreement is between the Secretaries of Education 
and Defense. Under Senate amendment, the memorandum of 
agreement is between administering Secretary (Secretary of 
Education) and DANTES.
      SR
      207. Senate amendment, but not House bill, permits 
administering Secretary to retain funds to identify LEAs with 
concentrations of low-income children or teacher shortages, or 
States with alternative certification.
      SR
      208. Similar provision. House bill provision is similar 
to Section 1703(d) of current law as amended by Senate 
amendment.
      LC
      209. House bill requires Secretary of Education to 
provide information to Secretary of Defense for dissemination. 
Senate amendment has no comparable requirement for Secretary of 
Education although it requires Secretary of Defense to 
disseminate the information.
      SR
      210. Similar provisions. House bill characterizes 
placement and referral services as ``regarding employment 
opportunities.'' House bill extends services to those leaving 
active duty under ``other than adverse conditions,'' while 
Senate amendment specifies honorable discharge. (House bill in 
Section 2042(c)(3) requires honorable discharge for 
eligibility).
      HR
      211. Senate amendment, but not House bill, specifies that 
the members have to meet educational qualifications.
      HR
      212. House bill contains no similar provision to this new 
Subsection in Section 1702.
      LC (see Note 206).
      213. Provisions governing eligible members differ between 
House and Senate language. House bill covers several specific 
groups of members; Section 1703(a) as amended by Senate targets 
program to retirees from October 1, 2000 to September 30, 2006 
or members of active reserve.
      SR with an amendment add new paragraph at the end of 
(a)(1):
                    ``(C) on or after the date of the enactment 
                of the No Child Left Behind Act of 2001, has an 
                approved date of voluntary retirement from the 
                reserve and, as of the date the member submits 
                an application to participate in the Program, 
                has one year or less of reserve duty remaining 
                before retirement.''
      SR with an amendment to (a)(2) to read as follows:
            ``(2) Any member who, on or after the date of the 
        enactment of the No Child Left Behind Act of 2001--
                    ``(A)(i) is separated or released from 
                active duty after six or more years of 
                continuous active duty immediately before the 
                separation or release;
                    ``(ii) has a total of ten years active or 
                reserve duty; or
                    ``(iii) has a combined total of ten years 
                active duty and reserve service; and
            ``(B) executes a reserve commitment agreement for a 
        period of three years under subsection (e)(2).''
      214. Similar provisions.
      LC
      215. House bill specifies that application needs to be 
submitted during specified time period. Senate amendment amends 
section 1704(a) to strike ``on a timely basis.''
      SR
      216. No comparable provision in current law as amended by 
Senate.
      SR
      217. House bill provision is similar to section 1703(b) 
of current law as amended by Senate. Wording differs in some 
places. Primary difference is that House bill reduces from 10 
to 6 the number of years of military experience in a vocational 
or technical field required as one option for member applying 
for placement as vocational or technical teacher.
      SR
      218. Section 1703(c) of current law as amended by Senate 
requires member's last period of service to have been 
characterized as honorable. House bill has similar language and 
adds provision directed to individuals selected to participate 
prior to retirement, separation, or release from active duty.
      SR
      219. House bill provision similar to section 1704(b) of 
current law as amended by Senate, but Senate amendment includes 
as selection priority members with educational or military 
experience in another subject area identified as important for 
national educational objectives.
      SR
      220. House bill provision similar to section 1704(c) of 
current law as amended by Senate (wording differs).
      LC
      221. No comparable provision in current law as amended by 
Senate.
      SR (see Note 213).
      222. House bill similar to section 1704(d) as amended by 
Senate.
      LC
      223. House bill, but not Senate amendment, uses term 
``fully qualified'' to describe teachers.
      SR with an amendment to strike ``fully'' and insert 
``highly''.
      224. Both House bill and Senate amendment would reduce 
the required commitment in current law from 4 years down to 3 
years, only Senate permits Secretary of Defense to waive the 3 
year commitment.
      HR
      225. House bill, but not Senate amendment, refers to 
charter schools.
      SR with an amendment to strike ``fully'' and insert 
``highly'' and insert ``high need'' after ``years with a''.
      226. Similar provisions.
      LC
      227. House bill refers to an institution of higher 
education; current law as amended refers to eligible 
institution.
      SR
      228. House bill, but not Senate amendment, uses term 
``fully qualified.''
      SR with an amendment to strike ``fully'' and insert 
``highly''.
      229. House bill provision same as current law section 
1705(a) as amended by Senate.
      LC
      230. House bill, but not Senate amendment, has limit on 
total number of stipends.
      SR with an amendment to strike ``3,000'' and insert 
``5,000''.
      231. House bill provision similar to current law section 
1705(b) as amended by Senate.
      LC
      232. House bill, but not Senate amendment, uses term 
``fully qualified.''
      SR with an amendment to strike ``fully'' and insert 
``highly''.
      233. House bill reduces commitment to 3 years; current 
law as amended by Senate does not.
      SR
      234. House bill, but not Senate amendment, has limit on 
total number of bonuses.
      SR with an amendment to strike ``1,000'' and insert 
``3,000''.
      235. House bill specifies that high need school must meet 
1 or more of 3 criteria involving students counted for purposes 
of making Title I grants, students qualifying for IDEA 
assistance, or any other criteria established by Secretary in 
consultation with National Assessment Governing Board. Current 
law as amended by Senate stipulates that school must be in a 
low-income district as defined by the Secretary.
      SR with an amendment to strike House (C).
      236. Identical provision.
      LC
      237. House bill provisions regarding reimbursement 
required, amount of reimbursement, treatment of obligation, 
exceptions to reimbursement requirement, and relationship to 
educational assistance under Montgomery GI Bill are similar to 
current law section 1705(d)(1)-(3) as amended by Senate 
(wording differs).
      LC
      238. Current law section 1705(d)(4) describes how 
interest is to be calculated on amounts owed by participants; 
House has no comparable language.
      SR
      239. Similar provision.
      LC
      240. House bill and current law section 1706(a) as 
amended by Senate amendment are similar; terms used to 
reference Secretary differ.
      LC
      241. House bill and current law section 1706 (b) as 
amended by Senate are similar, but Senate amendment does not 
include the $4 million obligation limitation and does not refer 
to ``former members.''
      SR with an amendment to strike ``4,000,000'' and insert 
``5,000,000''.
      242. Similar provision except House bill describes 
purpose in more detail.
      SR
      243. House bill refers to vocational or technical 
teachers; current law as amended by Senate does not.
      SR
      244. Virtually identical provisions.
      LC
      245. House bill, but not Senate amendment, provides that 
the program must address additional requirements set by 
Secretary.
      SR
      246. Similar provisions. House bill includes States among 
entities eligible to submit applications and Senate amendment 
gives administering Secretary discretion over the timing and 
manner of and information in, applications.
      LC
      247. House bill provides that continuation of program is 
not responsibility of the Secretary. Senate amendment permits 
higher education institutions wanting to continue program to 
use tuition charges to do so.
      HR/SR with an agreement to keep provisions in House bill 
and Senate amendment.
      248. House bill, but not current law as amended by 
Senate, has funding limitation.
      SR with an amendment to strike ``5,000,000'' and insert 
``10,000,000''.
      249. Senate amendment has no comparable provision.
      SR with an amendment to: strike ``each year'' and insert 
``2006''; strike ``each'' after ``Comptroller General shall''; 
and strike House (c).
      250. Current law as amended by the Senate only defines 
``administering Secretary,'' ``member of the Armed Forces,'' 
and ``State.''
      SR
      251. House bill authorizes $50 for both Troops-to-
Teachers and Transition-to-Teaching programs combined. Senate 
amendment authorizes $50 million solely for the Troops-to-
Teachers program.
      HR/SR with an agreement to authorize $150 million for 
both Troops-to-Teachers and Transition to Teaching programs 
combined of which up to $30 million shall be reserved for 
Troops-to-Teachers. (see Note 289)
      252. Senate amendment includes a Transition to Teaching 
authority among the required national activities that the 
Secretary must support (this is separate from the Careers to 
Classrooms authority). House bill Transition to Teaching 
program is delineated with features similar to the Senate 
Careers to Classrooms. Those two programs are aligned below.
      SR with an amendment to: strike Senate (d); strike 
``Careers to Classrooms'' in heading of Senate (e) and insert 
``Transition to Teaching'' (LC throughout); and insert 
continuation of award language for current grantees.
      253. House bill refers to high need LEAs and career 
changers, and identifies specific subject areas. Senate 
amendment addresses its purposes to mid career professionals, 
recent college graduates, and paraprofessional, and references 
high need schools.
      HR with an amendment to: strike ``and certain 
paraprofessionals''; and insert ``(including highly qualified 
paraprofessionals)'' after ``mid-career professionals''.
      254. Senate amendment, but not House bill, has 
development and expansion of alternative certification as a 
purpose.
      HR
      255. House bill defines ``program participants'' and 
Senate amendment defines ``eligible participant'' differently 
(Senate amendment definition establishes more specific criteria 
that vary depending upon the level of instruction.).
      HR with an amendment to read as follows:
                    ``(A) Eligible participant.--The term 
                `eligible participant' means--
                            ``(i) an individual with 
                        substantial demonstrable career 
                        experiences, including a highly 
                        qualified paraprofessional; or
                            ``(ii) an individual who is a 
                        graduate of an institution of higher 
                        education who--
                                    ``(I) has graduated not 
                                later than 3 years before 
                                applying to an agency or 
                                consortium to teach under this 
                                subsection; and
                                    ``(II) in the case of an 
                                individual wishing to teach in 
                                a secondary school, has 
                                completed an academic major (or 
                                courses totaling an equivalent 
                                number of credit hours) in the 
                                academic subject that the 
                                individual will teach.''
      256. House bill contains no similar provision.
      HR/SR with an agreement to move redrafted definition of 
``high need local educational agency'' to Title II definitions 
(see Note 297).
      257. House bill contains no similar provision.
      HR
      258. House bill contains no similar provision.
      SR
      259. House bill contains no similar provision.
      SR (definition of ``poverty line'' moved to General 
Provisions).
      260. House bill authorizes grants to higher education 
institutions; Senate amendment has priority for collaborations 
with higher education institution or nonprofit organization 
with a proven record regarding teacher recruitment and 
retention.
      HR with an amendment to read as follows:
            ``(3) Grant program.--
                    ``(A) In general.--The Secretary shall 
                establish a program to make grants on a 
                competitive basis to eligible entities to 
                develop State and local teacher corps or other 
                programs to establish, expand, or enhance 
                teacher recruitment and retention efforts.
                    ``(B) Eligible entity.--An eligible entity 
                described in (A) means a:
                            ``(i) State educational agency;
                            ``(ii) high need local educational 
                        agency;
                            ``(iii) for-profit and nonprofit 
                        organization that has a proven record 
                        of effectively recruiting and retaining 
                        highly qualified teachers in 
                        partnership with a high need local 
                        educational agency or a State 
                        educational agency;
                            ``(iv) institution of higher 
                        education in partnership with a high 
                        need a local educational agency or a 
                        State educational agency;
                            ``(v) regional consortia of State 
                        educational agencies; or
                            ``(vi) consortia of high need local 
                        educational agencies.
                    ``(C) Priority.--In making such a grant, 
                the Secretary shall give priority to an 
                eligible entity that applies for a grant in 
                partnership with a high need local educational 
                agency or a State educational agency.''
      Report Language:
      For a grant that involves a for-profit organization, 
nonprofit organization, or an institution of higher education, 
the conferees intend that such entities may apply for and 
receive a grant from the Secretary. In doing so, such entities 
shall describe in their application how the entity will partner 
with a high need local educational agency or State educational 
agency.
      261. Similar provision.
      LC
      262. House bill contains no similar provision.
      HR with an amendment to read as follows:
                    ``(B) Contents.--The application shall--
                            ``(i) describe the target 
                        recruitment group upon which the 
                        applicant will focus its recruitment 
                        efforts and the characteristics of the 
                        target group that shows the knowledge 
                        and experience of its members and 
                        demonstrates that the members are 
                        eligible to meet the purpose of this 
                        section;
                            ``(ii) describe how the applicant 
                        will use funds received under this 
                        subsection to develop a teacher corps 
                        or other program to recruit and retain 
                        highly qualified mid-career 
                        professionals, including highly 
                        qualified paraprofessionals, recent 
                        college graduates and graduate school 
                        graduates, as highly qualified teachers 
                        in high need schools;
                            ``(iii) explain how the program 
                        will meet the relevant State laws 
                        (including regulations) related to 
                        teacher certification and licensing and 
                        facilitate the certification or 
                        licensing of such teachers;
                            ``(iv) describe how the grant will 
                        increase the number of highly qualified 
                        teachers in high need schools in high 
                        need school districts (that are urban 
                        or rural) and in high need academic 
                        subjects in the jurisdiction served by 
                        the applicant; and
                            ``(v) a description of how the 
                        applicant will collaborate, as needed, 
                        with other institutions, agencies, or 
                        organizations to recruit, particularly 
                        through activities that have proven 
                        effective in retaining highly qualified 
                        teachers, train, place, support, and 
                        provide teacher induction programs to 
                        program participants under this 
                        section, including evidence of 
                        commitment of those institutions, 
                        agencies, or organizations to the 
                        applicant's program.''
      263. Senate amendment contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      264. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      265. Similar provision.
      HR/SR (provisions redrafted under Note 262).
      266. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      267. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      268. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      269. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      270. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      271. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      272. House bill contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      273. House bill requires collaboration in implementation 
of the program. Senate amendment requires collaboration in 
development of the application and delineates a broader range 
of individuals and entities.
      HR/SR (provisions redrafted under Note 262).
      274. Senate amendment contains no similar provision.
      HR/SR (provisions redrafted under Note 262).
      275. House bill contains no similar provision.
      HR
      276. Similar provisions (wording differs).
      LC
      277. House bill contains no similar provision.
      HR
      278. Senate amendment, but not House bill, has general 
statement of uses of funds.
      HR with an amendment to read as follows:
            ``(8) Uses of funds.--
                    ``(A) In general.--An applicant that 
                receives a grant under this subsection shall 
                use the funds made available through the grant 
                to develop a teacher corps or other program in 
                order to establish, expand, or enhance a 
                teacher recruitment program for highly 
                qualified mid-career professionals, including 
                highly qualified paraprofessionals, and 
                graduates of institutions of higher education, 
                who are eligible participants, including 
                activities that provide alternative routes to 
                teacher certification.
                    ``(B) Authorized activities.--The applicant 
                shall use the funds to carry out a program that 
                includes 2 or more of the following 
                activities--
                            ``(i) Providing scholarships, 
                        stipends, bonuses, and other financial 
                        incentives, that are linked to 
                        participation in activities that have 
                        proven effective in retaining teachers 
                        in higher need school districts, to all 
                        eligible participants, not to exceed 
                        $5,000 per participant;
                            ``(ii) Pre-and post-placement 
                        induction or support activities that 
                        have proven effective in recruiting and 
                        retaining teachers such as mentoring, 
                        internships, high quality, pre-service 
                        course work and high quality, sustained 
                        in-service professional development;
                            ``(iii) Placement and ongoing 
                        activities to ensure that teachers are 
                        placed in fields which they are 
                        qualified to teach and are placed in 
                        the highest need schools;
                            ``(iv) Make payments to schools to 
                        pay for costs associated with accepting 
                        teachers recruited under this 
                        subsection from among eligible 
                        participants or to provide financial 
                        incentives to prospective teachers who 
                        are eligible participants;
                            ``(v) Collaborate with institutions 
                        of higher education in developing and 
                        implementing programs to facilitate 
                        teacher recruitment (including teacher 
                        credentialing) and teacher retention 
                        programs;
                            ``(vi) Carry out other programs, 
                        projects, and activities that are 
                        designed and have proven to be 
                        effective in recruiting and retaining 
                        teachers; and that the Secretary 
                        determines to be appropriate; and
                            ``(vii) Develop Long-term 
                        Recruitment and Retention Strategies 
                        including a statewide or region wide 
                        clearinghouse for the recruitment and 
                        placement of teachers, the 
                        establishment of administrative 
                        structures to development and implement 
                        programs to provide alternative routes 
                        to certification, reciprocity 
                        agreements between or among States for 
                        the certification or licensure of 
                        teachers, or other long-term teacher 
                        recruitment and retention strategies.
                    ``(C) Effective activities.--The applicant 
                shall use the funds only for activities that 
                have proven effective in both recruiting and 
                retaining teachers.''
      279. House bill permits funds to be used for identified 
activities. Senate amendment requires grantees to carry out a 
teacher corps or other program including 2 or more of the 
listed activities.
      HR/SR (provisions redrafted under Note 278).
      280. Senate amendment contains no similar provision.
      HR/SR (provisions redrafted under Note 278).
      281. Similar provisions except Senate amendment 
delineates incentives in detail and identifies criteria the 
participants must meet.
      HR/SR (provisions redrafted under Note 278).
      282. Senate amendment, but not House bill, authorizes 
payments to participating schools.
      HR/SR (provisions redrafted under Note 278).
      283. Senate amendment contains no similar provision.
      HR/SR (provisions redrafted under Note 278).
      284. Senate amendment contains no similar provision.
      HR/SR (provisions redrafted under Note 278).
      285. House bill provides for general post-placement 
activities for participants. Senate amendment enumerates 
several such activities.
      HR/SR (provisions redrafted under Note 278).
      286. House bill and Senate amendment have similar 
provisions governing length of required service and repayment. 
House bill defines period of service as at least 3 years in 
high need LEA. Senate amendment requires recipient to teach for 
at least 2 years in high need school during 5 year period 
following completion of training.
      SR
      287. House bill contains no similar provision.
      HR
      288. House bill contains no similar provision.
      HR
      289. House bill authorizes $50 million for both Troops-
to-Teachers and Transition-to-Teaching programs combined. 
Senate amendment authorizes $200 million solely for the Careers 
to Classrooms program and $50 million solely for Troops-to-
Teachers program.
      HR/SR with an agreement to authorize $150 million for 
both Troops-to-Teachers and Transition to Teaching programs 
combined of which up to $30 million shall be reserved for 
Troops-to-Teachers. (see Note 251)
      290. Senate amendment, but not House bill, provides for a 
National Teacher Recruitment Campaign.
      HR with an agreement to move redrafted provision to 
Subpart 5 of Part A.
      291. House bill contains no similar provisions.
      SR
      292. Senate amendment, but not House bill, contains 
``National Programs.''
      HR
      293. Senate amendment authorizes a separate program for 
school leadership with separate authorization of $50 million 
for FY02 and such sums as may be necessary for each subsequent 
fiscal year.
      HR with an agreement to move redrafted provision to 
Subpart 5 of Part A.
      294. Senate amendment, but not House bill, requires 
Secretary to support activities related to advanced 
certification with grants awarded to the National Board for 
Professional Teaching Standards.
      HR with an agreement to move to Subpart 5 of Part A and 
an amendment to read as follows and report language:
      ``(d) Advanced Certification or Advanced Credentialing.--
            ``(1) In general.--The Secretary shall support 
        activities to encourage and support teachers seeking 
        advanced certification or advanced credentialing 
        through high quality professional teacher enhancement 
        programs designed to improve teaching and learning.
            ``(2) Implementation.--In carrying out paragraph 
        (1), the Secretary shall make grants to eligible 
        entities to--
                    ``(A) develop teacher standards which 
                include measures tied to increased student 
                academic achievement; and
                    ``(B) to promote outreach, teacher 
                recruitment, teacher subsidy, or teacher 
                support programs related to teacher 
                certification by the National Board for 
                Professional Teaching Standards, the National 
                Council on Teacher Quality, and other 
                nationally recognized certification 
                organizations.
            ``(3) Eligible entities.--Under this section, 
        eligible entities include--
                    ``(A) State educational agencies;
                    ``(B) local educational agencies;
                    ``(C) the National Board for Professional 
                Teaching Standards in partnership with a high 
                need local educational agency or a State 
                educational agency;
                    ``(D) the National Council on Teacher 
                Quality in partnership with a high need local 
                educational agency or a State educational 
                agency; or
                    ``(E) other recognized entities, including 
                other recognized certification organizations, 
                in partnership with a high need local 
                educational agency or a State educational 
                agency.
      ``(e) Special Education Teacher Training.--The Secretary 
is authorized to award a grant to the University of Northern 
Colorado to enable such university to provide other 
institutions of higher education assistance in training special 
education teachers.''
      Report Language:
      For a grant that involves the National Board for 
Professional Teaching Standards, the National Council on 
Teacher Quality, or other recognized certification 
organizations, the conferees intend that such entities may 
apply for and receive a grant from the Secretary. In doing so, 
such entities shall describe in their application how the 
entity will partner with a high need local educational agency 
or State educational agency.
      In recognition of the importance of teachers having 
current content knowledge, as well as pedagogical expertise, 
the conferees urge that the Secretary give priority to 
applicants that show that the weight given to the content 
knowledge portion of the advanced certification or 
credentialing is at least 60 percent, and provide assurances 
that they will work with the Secretary and States to conduct 
outreach activities for teachers serving in high poverty areas 
to seek advanced certification or credentialing and provide 
them with incentives to obtain such certification or 
credentialing.
      295. House bill authorizes $3.6 billion for FY 02 and 
such sums as may be necessary for the next four years. In 
addition, House bill authorizes $50 million for the Troops-to-
Teachers and Transition-to-Teaching programs combined. Senate 
amendment authorizes $3 billion (other than subpart 5) for FY 
02 and such sums as may be necessary for each of the 6 
succeeding fiscal years. In addition, Senate amendment 
authorizes $100 million (other than subsections (b), (e), and 
(f)) for FY 02 and such sums as may be necessary for each of 
the 6 succeeding fiscal years. [See section 1003(b) for 
specific authorization levels through FY 08].
      HR with an amendment to strike ``3,000,000,000'' in 
section 2103(a) and insert ``3,175,000,000'' and to strike ``6 
succeeding'' and insert ``5 succeeding'' and an agreement to 
authorize National Activities at such sums.
      296. House bill contains no similar provision.
      SR
      297. House bill and Senate amendment define different 
terms.
      HR/SR with an agreement to define the following terms in 
Title II:
            ``(1) Arts and sciences.--The term `arts and 
        sciences' means--
                    ``(A) when referring to an organizational 
                unit of an institution of higher education, any 
                academic unit that offers one or more academic 
                majors in disciplines or content areas 
                corresponding to the academic subject matter 
                areas in which teachers provide instruction; 
                and
                    ``(B) when referring to a specific academic 
                subject matter area, the disciplines or content 
                areas in which academic majors are offered by 
                the arts and sciences organizational unit.
            ``(2) Charter school.--The term `charter school' 
        has the meaning given the term in section 5120.
            ``(3) High need local educational agency.--The term 
        `high need local educational agency' means--
                    ``(A) a local educational agency which 
                serves at least 10,000 children from families 
                with incomes below the poverty line; or more 
                than 20 percent of the children served by such 
                agency are from families with incomes below the 
                poverty line; and
                    ``(B) a local educational agency in which 
                there is a high percentage of teachers not 
                teaching in the content area in which the 
                teachers were trained to teach.
            ``(4) Highly qualified paraprofessional.--The term 
        `highly qualified paraprofessional' means a 
        paraprofessional--
                    ``(i) with at least two years of experience 
                in a classroom; and
                    ``(ii) with at least two years of 
                postsecondary education or has demonstrated 
                competence in a field or subject matter for 
                which there is a significant shortage of 
                qualified teachers.
            ``(5) Out-of-field teacher.--The term `out-of-field 
        teacher' means a secondary school teacher who is 
        teaching an academic subject for which the teacher is 
        not highly qualified.
            ``(6) Publicly report.--The term `publicly report', 
        when used with respect to the dissemination of 
        information, means that the information is made widely 
        available to the public, including parents and 
        students, in an understandable and uniform format, and 
        to the extent practicable in a language the parent can 
        understand, through such means as the Internet and 
        major print and broadcast media outlets.''
      298. House bill contains no similar provision.
      SR
      299. House bill contains no similar provision.
      SR (see Note 121).
      300. Senate amendment separately authorizes math and 
science partnerships at $900 million (House bill math and 
science partnerships are reserved under Title II, Part A 
authorization).
      HR with an amendment to strike ``$900,000,000'' and 
insert ``$450,000,000''.
      301. Senate amendment, but not House bill, authorizes 
funds for clearinghouse.
      SR
      302. House bill transfers and continues the National 
Writing Project as Part B of Title II. Senate amendment amends 
entire program to ``read as follows'' as Part B of Title XVI. 
(Subsequent references to ``current law'' are to current law as 
extended by provisions in House bill).
      HR/SR with an agreement to move to Subpart 3 of Part C.
      303. Senate amendment, but not House bill, adds 
``continuing.''
      SR
      304. Senate amendment, but not House bill, adds new text 
beginning with ``the shortage of . . .''
      SR
      305. Senate amendment adds new statistics regarding 
writing.
      SR
      306. Senate amendment similar to current law (wording 
differs).
      SR
      307. Senate amendment similar to current law (wording 
differs).
      SR
      308. No comparable provision in current law.
      SR
      309. Senate amendment similar to current law (wording 
differs).
      SR
      310. Senate amendment modifies current law which 
describes teachers in all regions of the country who have 
developed successful methods for teaching writing.
      SR
      311. Senate amendment similar to current law (wording 
differs).
      SR
      312. Senate amendment adds ``reading'' to current law.
      SR
      313. Senate amendment updates current law statistics.
      SR
      314. Senate amendment replaces two subsections from 
current law that describe results of studies and amount of 
funding leveraged by federal support.
      SR
      315. Senate amendment, but not House bill, drops language 
describing National Writing Project summer and school year 
activities, teachers-teaching-teachers, career-long education, 
the number of sites needed to serve all teachers, and the 
inadequate nature of private foundation resources for National 
Writing Project.
      HR
      316. No comparable provision in current law.
      HR
      317. Similar provision to current law, except Senate 
amendment drops list of activities.
      HR
      318. Except where noted, Senate amendment retains current 
law.
      HR
      319. Senate amendment similar to current law (wording 
differs).
      HR
      320. Senate amendment increases maximum for individual 
contractor from $40,000 to $100,000.
      HR
      321. Senate amendment drops current law language 
regarding classroom teacher grants.
      HR
      322. Senate amendment updates current law which applied 
limit to FY 1994 and succeeding four fiscal years.
      HR
      323. House bill authorizes such sums as may be necessary 
for FY 02 and succeeding four fiscal years. Senate amendment 
specifies authorization of $15 million for FY 02 and such sums 
as may be necessary for succeeding 6 fiscal years.
      HR with an amendment to strike ``6 succeeding fiscal 
years'' and insert ``5 succeeding fiscal years''.
      324. Senate amendment contains no similar provision.
      SR
      325. House bill ``Civic Education'' is Part C of Title II 
and Senate amendment ``Education for Democracy'' is Part D of 
Title XVI.
      HR/SR with an agreement to move to Subpart 4 of Part C.
      326. Identical provision.
      LC
      327. Identical provisions.
      HR/SR (no findings).
      328. Identical provisions.
      HR
      329. Identical provisions.
      HR/SR with an agreement that:
            The allocation reserved for the ``We the People 
        Program'' be awarded to the Center for Civic Education; 
        and
            The allocation reserved for ``Cooperative Civic 
        Education and Economic Education Exchange Programs'' be 
        awarded to the Center for Civic Education (37.5 
        percent); the National Council on Economic Education 
        (37.5 percent); and up to 3 grants to other 
        organizations (25 percent).
      330. House bill contains similar provisions throughout 
this part but requires the Secretary of Education to get the 
``concurrence'' of the Secretary of State.
      HR with an amendment to strike Senate (2).
      331. Virtually identical provisions.
      LC
      332. House bill provides for ``allowable'' uses of funds; 
Senate amendment has ``requirements''--provisions are otherwise 
identical.
      SR
      333. Virtually identical provision.
      HR
      334. Virtually identical provisions.
      LC
      335. House bill provides for ``allowable'' uses of funds; 
Senate amendment has ``requirements''--provisions are otherwise 
identical.
      SR
      336. Virtually identical provisions.
      HR
      337. Virtually identical provisions.
      HR
      338. House bill has similar avoidance of duplication 
provisions (see below).
      SR
      339. Virtually identical provisions.
      LC
      340. Senate amendment has similar avoidance of 
duplication provisions (see above).
      SR
      341. Similar definition except that House bill requires 
the ``concurrence'' of the Secretary of State as compared to 
``consultation'' under Senate amendment.
      SR
      342. House bill authorizes such sums as may be necessary 
for each of FY 02 through FY 06 with a limitation on funding 
for activities under subsection (a)(2). Senate amendment 
authorizes $15 million for Section 11304 for FY 02 and such 
sums as may be necessary for each of FY 03 through FY 08 and 
authorizes $12 million for Section 11305 for FY 02 and such 
sums as may be necessary for each of FY 03 through FY 08.
      HR/SR with an agreement to use a single authorization for 
FY 2002 of $30 million, of which not more than 40 percent of 
the amount appropriated shall be used for Cooperative Civic 
Education and Economic Education Exchange Programs.
      343. Similar provisions except where noted.
      SR
      344. House bill has ``Liability'' in the title.
      HR with an amendment to strike findings.
      345. Senate amendment has concluding phrase ``which are 
critical for the continued economic development of the United 
States.''
      HR/SR (no findings).
      346. House bill contains no similar provision.
      HR with an amendment to strike (5) and (6) in findings 
and in section 10003 add new (a):
      ``(a) This title shall only apply to those States that 
receive funds under this Act, and shall apply to such a State 
as a condition of receiving such funds.''
      347. Similar provisions (wording differs).
      HR
      348. House bill contains no similar provision.
      HR
      349. Senate amendment contains no similar provision.
      HR
      350. House bill contains no similar provision.
      HR
      351. House bill includes school board, and local 
educational agency and any employee of the agency in definition 
of ``teacher.'' Senate amendment specifies terms applies only 
to members of a school board and does not reference districts 
and district employees.
      SR with an amendment to (6) to read as follows:
      ``(6) Teacher.--The term `teacher' means a teacher; 
instructor; principal; administrator; other educational 
professional that works in a school; professional or non-
professional employee that works in a school whose job it is to 
maintain discipline or ensure safety, or due to an emergency is 
called upon to maintain discipline or ensure safety; or an 
individual member of a school board (as distinct from the board 
itself).''
      352. House bill contains no similar provision.
      HR with an amendment to strike ``the Paul D. Coverdell 
Teacher Protection Act of 2001'' and insert ``[Short Title of 
this Act]''.
      353. Similar provision (wording differs).
      HR
      354. House bill contains no similar provision.
      HR with an agreement to move redrafted Early Childhood 
Educator Professional Development provisions to Subpart 5 of 
Part A.
      355. House bill contains no similar provision.
      HR/SR with an agreement to move National Panel on Teacher 
Mobility to Subpart 5 of Part A and add report language.
      Report Language:
      Research indicates that many qualified teachers are not 
presently working as teachers despite the growing shortage of 
teachers in many communities due to obstacles related to 
teacher mobility. The bill includes authorization for a Panel 
on Teacher Mobility to study strategies for increasing mobility 
and employment opportunities for qualified teachers, especially 
in States with teacher shortages and States with districts or 
schools that are difficult to staff. Conferees do not intend 
pension portability be addressed by the panel.
      However, the conferees note that the portability of 
teacher pensions was extensively addressed in P.L. 107-16, the 
Economic Growth and Tax Relief Reconciliation Act of 2001 
(EGATRRA). The new provisions will generally be effective on 
January 1, 2002. Previous law hindered teachers' ability to 
move their pension benefits with them when they took new jobs. 
The new provisions break down the barriers thereby enhancing 
teachers' mobility. Thus, teachers can now take new employment 
while more fully preserving their pension benefits.

                      Title III, Part A--Bilingual

                            (New Title III)

      1. The House bill and Senate Amendment have different 
titles.
      HR/SR with an amendment to title this part: the ``English 
Language Acquisition, Language Enhancement, and Academic 
Achievement Act''.
      2. The House bill, but not the Senate Amendment, lists 
findings. The Senate Amendment, but not the House bill, 
provides that Part D only becomes enacted if appropriations are 
$700 million or more.
      HR
      3. The Senate Amendment, but not the House bill, states 
policy of the federal government.
      HR/SR with an amendment to strike all legislative 
language in notes 3-12 and insert:
      ``(b) Purposes.--The purposes of this part are--
            ``(1) to help ensure that children who are limited 
        English proficient, including recent immigrant children 
        and youth attain English proficiency develop high 
        levels of academic attainment in English, and meet the 
        same challenging state academic content standards and 
        challenging state student academic achievement 
        standards expected of all children;
            ``(2) to assist all limited English proficient 
        students, including recent immigrant children and 
        youth, to achieve at high levels in the core academic 
        subjects so that those students can meet the same 
        challenging state academic content and student academic 
        achievement standards that all students are expected to 
        meet, consistent with section 1111(b)(1);
            ``(3) to develop high-quality programs designed to 
        assist state educational agencies, local educational 
        agencies and schools in teaching limited English 
        proficient children and serving recent immigrant 
        children and youth;
            ``(4) to assist state educational agencies and 
        local educational agencies to develop and enhance their 
        capacity to provide high-quality instructional programs 
        designed to prepare limited English proficient 
        students, including recent immigrant children and 
        youth, to enter all-English instructional settings;
            ``(5) to assist state educational agencies, local 
        educational agencies and schools to build their 
        capacity to establish, implement, and sustain programs 
        of instruction and English language development for 
        limited English proficient students;
            ``(6) to promote parental and community 
        participation in programs for limited English 
        proficient students;
            ``(7) to streamline language instruction 
        educational programs into a program carried out through 
        formula grants to state and local educational agencies 
        to help limited English proficient students, including 
        recent immigrant children and youth, develop 
        proficiency in English, while meeting state academic 
        content and student academic achievement standards;
            ``(8) to hold state educational agencies, local 
        educational agencies and schools accountable for 
        increases in English proficiency and core academic 
        content knowledge of limited English proficient 
        students by requiring;
                    ``(A) demonstrated improvements in the 
                English proficiency of limited English 
                proficient students each fiscal year; and
                    ``(B) adequate yearly progress with limited 
                English proficient students, including recent 
                immigrant students, as described in section 
                1111(b) (2); and
            ``(9) to provide state educational agencies and 
        local educational agencies with the flexibility to 
        implement the instructional programs, based on 
        scientifically based research on teaching limited 
        English proficient children, that the agencies believe 
        to be the most effective for teaching English.''
      4. Using different language, the House bill and the 
Senate Amendment state purposes.
      HR/SR (see note 3)
      5. Using different language, the House bill and the 
Senate Amendment state that the purpose of this part is to help 
LEP children attain English proficiency and develop high levels 
of achievement in academic areas. The House bill, but not the 
Senate Amendment includes academic attainment in English. The 
Senate Amendment, but not the House bill, includes attaining 
English ``as quickly and as effectively as possible.''
      HR/SR (see note 3)
      6. The House bill, but not the Senate Amendment, states 
the purpose is to develop high-quality programs to assist LEAs 
in teaching LEP children. (Similar to note 5)
      HR/SR (see note 3)
      7. The House bill states this similar provision in note 
5.
      HR/SR (see note 3)
      8. The House bill, but not the Senate Amendment, states 
the purpose is to assist LEAs to develop and enhance high-
quality instruction programs designed to prepare LEP students, 
including recent immigrant students, to enter all-English 
instructional settings within 3 years. The Senate Amendment, in 
note 1, says ``as quickly and effectively as possible.''
      HR/SR (see note 3)
      9. The Senate Amendment, but not the House bill, states 
that LEP students develop English proficiency as quickly and as 
effectively as possible by streamlining language instruction 
educational programs into performance-based grants for SEAs and 
LEAs.
      HR/SR (see note 3)
      10. The Senate Amendment, but not the House bill, 
requires states to help LEAs and schools demonstrate 
improvements in English proficiency each fiscal year.
      HR/SR (see note 3)
      11. The Senate Amendment, but not the House bill, 
specifically states that states are required to ensure that 
LEPs make AYP.
      HR/SR (see note 3)
      12. Using different language, the House bill and the 
Senate Amendment, both provide SEAs and LEAs flexibility to 
implement instructional programs tied to scientifically based 
research and that agencies believe to be the most effective for 
teaching English. The House bill, but not the Senate Amendment, 
uses ``scientifically based reading research and sound research 
and theory.''
      HR/SR (see note 3)
      13. Using different language, the House bill and the 
Senate Amendment provide provisions for parental notification.
      (Notes 13 and 15-39, 124 and 223)
      HR/SR with an amendment to strike all legislative 
language in notes 13 and 15-39 and insert:

``SEC. 3. PARENTAL NOTIFICATION.

      ``(a) In General.--(1) Each eligible entity using funds 
under this title to provide high-quality language instruction 
educational programs shall inform a parent or parents of a 
child participating in such a program of--
            ``(A) the reasons for the identification of their 
        child as limited English proficient and being in need 
        of placement in a language instruction educational 
        program;
            ``(B) the child's level of English proficiency, how 
        such level was assessed, and the status of the child's 
        academic achievement;
            ``(C) the program and methods of instruction 
        available, including how such programs differ in 
        content, instructional goals, and use of English and a 
        native language in instruction;
            ``(D) how the language instruction educational 
        program will meet the educational strengths and needs 
        of their child;
            ``(E) how such language instruction program will 
        specifically help the child acquire English, and meet 
        age appropriate academic achievement standards for 
        grade promotion and graduation;
            ``(F) the specific exit requirements for the 
        program, including the expected rate of transition from 
        the program into classrooms that are not tailored for 
        limited English proficient students, and the expected 
        rate of graduation from high school for the program if 
        funds under this title are used for children in 
        secondary schools;
            ``(G) in the case of a student with a disability 
        who participates in an language instruction educational 
        program, how the program meets the objectives of the 
        individualized education program of the student;
            ``(H) If applicable, the entity's failure to make 
        progress on the annual measurable achievement 
        objectives in section 3329(a). Such notice shall be 
        sent in addition to the parental notification of their 
        child as in need of participation in a language 
        instruction educational program; and
            ``(I) information pertaining to parental rights, 
        that includes written guidance--
                    ``(i) detailing the options that parents 
                have to remove their child from an language 
                instruction educational program, and shall give 
                parents an opportunity to decline such 
                enrollment, and the right to have their child 
                immediately removed from a language instruction 
                educational program upon their request; and
                    ``(ii) assisting parents in selecting among 
                various programs and methods of instruction, if 
                more than one program or method is offered by 
                the eligible entity.
      ``(b) Receipt of Information.--The notice and information 
provided in subsection (a) to a parent or parents of a child 
identified for participation in an language instruction 
educational program for limited English proficient children 
shall be in an understandable and uniform format and, to the 
extent practicable, provided in a language that the parents can 
understand.
      ``(c) Special Rule Applicable During the School Year.--
For those children who have not been identified as limited 
English proficient prior to the beginning of the school year 
the eligible entity shall notify parents within the first two 
weeks of the child being placed in a language instruction 
educational program consistent with subsections (a) and (b).
      ``(d) Parental Participation.--Each eligible entity using 
funds under this title shall implement an effective means of 
outreach to parents of limited English proficient students to 
inform parents of how they can be involved in the education of 
their children, and be active participants in assisting their 
children to attain English and achieve at high levels in core 
academic subjects and meet challenging state academic 
achievement standards and state academic content standards 
expected of all students, including holding and sending notice 
of opportunities for regular meetings for the purpose of 
formulating and responding to recommendations from parents of 
students assisted under this title.
      ``(e) Basis for Admission or Exclusion.--A student shall 
not be admitted to, or excluded from, any federally assisted 
education program on the basis of a surname or language-
minority status.''
      14. In developing regulations, the Senate Amendment, but 
not the House bill, requires the Secretary to consult with 
SEAs, LEAs, organizations representing LEP individuals, and 
teachers and other personnel involved with teaching LEP 
students.
      HR
      15. Using different language, the House bill and the 
Senate Amendment, provide provisions for parental notification
      HR/SR--see note 13.
      16. In a different order, both the House bill and the 
Senate Amendment require the reasons for the child being in 
need of language instruction. (See note 23) The House bill, but 
not the Senate Amendment uses English language instruction. The 
Senate Amendment, but not the House bill, uses language 
instruction educational program.
      HR/SR--see note 13.
      17. Using different language, both the House bill and the 
Senate Amendment, require the child's level of English 
proficiency, how such level was assessed, and the status of the 
child's academic achievement. The Senate Amendment, but not the 
House bill, further requires the implications of the student's 
educational strengths and need for age- and grade-appropriate 
academic attainment, grade promotion, and graduation.
      HR/SR--see note 13.
      18. The Senate Amendment, but not the House bill, 
requires programs available to meet the student's educational 
strengths and needs, and how the programs differ in content and 
instruction.
      HR/SR--see note 13.
      19. The Senate Amendment, but not the House bill, 
provides for students with a disability participating in a 
language instruction educational program.
      HR/SR--see note 13.
      20. Using different language, both the House bill and the 
Senate Amendment, provide for how the program will help the LEP 
child acquire English and meet age-appropriate standards for 
grade promotion and graduation. The Senate Amendment, but not 
the House bill, also requires the instructional goals of the 
program.
      HR/SR--see note 13.
      21. The Senate Amendment, but not the House bill, further 
requires the characteristics, benefits, and past academic 
results of such language program and of instructional 
alternatives.
      HR/SR--see note 13.
      22. The House bill, but not the Senate Amendment, 
requires the specific exit requirements for the language 
program.
      HR/SR--see note 13.
      23. Both the House bill and Senate Amendment contain this 
provision in a different order. (See note 16)
      HR/SR--see note 13.
      24. The House bill, but not the Senate Amendment, 
requires the expected rate of transition from the program into 
a classroom not tailored for LEP children.
      HR/SR--see note 13.
      25. The Senate Amendment, but not the House bill, 
requires parents be informed of how they can participate and be 
involved in the language instruction program.
      HR/SR--see note 13.
      26. The House bill, but not the Senate Amendment, 
requires that if funds are used for children in secondary 
schools parents be informed of the expected rate of graduation 
from high school.
      HR/SR--see note 13.
      27. The House bill, but not the Senate Amendment, 
requires LEAs to make a ``reasonable and substantial effort'' 
to obtain informed parental consent prior to the placement of a 
child in an English language instruction program if the program 
does not exclusively use the English language in instruction. 
The Senate Amendment provides that parents be informed and 
provided an option to decline enrollment in a program. (See 
note 31)
      HR/SR--see note 13.
      28. The House bill, but not the Senate Amendment, 
requires LEAs to maintain a written record if parental consent 
cannot be obtained.
      HR/SR--see note 13.
      29. The House bill, but not the Senate Amendment, 
requires LEAs to mail or deliver a copy of the written record 
and a final request for consent before providing services to 
LEP students.
      HR/SR--see note 13.
      30. The House bill, but not the Senate Amendment, 
provides for situations when children are not identified as 
limited English proficient prior to the beginning of the school 
year.
      HR/SR--see note 13.
      31. The Senate Amendment, but not the House bill, 
requires that parents be informed of their option to decline 
enrollment of their LEP child in a program.
      HR/SR--see note 13.
      32. The House bill, but not the Senate Amendment, 
requires that parents select among programs if more than one 
method is offered and have the right to immediately remove 
their child from the program upon their request.
      HR/SR--see note 13.
      33. The Senate Amendment, but not the House bill, 
provides that LEAs cannot be relieved of the agency's 
obligations of the Civil Rights Act simply because a parent 
chooses not to enroll a student in a language instruction 
program.
      HR/SR--see note 13.
      34. Using different language, the House bill and the 
Senate Amendment require that parents receive information about 
their child's instruction program. The Senate Amendment, but 
not the House bill, further requires information to be in the 
language used by parents if necessary and feasible.
      HR/SR--see note 13.
      35. Both the House bill and the Senate Amendment, have 
similar language regarding timely information about programs.
      HR/SR--see note 13.
      36. Using similar language, the House bill and the Senate 
Amendment, provide parents with a notice of opportunities for 
regular meetings to permit parents to formulate and respond to 
recommendations from such parents.
      HR/SR--see note 13.
      37. The House bill, but not the Senate Amendment, 
requires that parents receive procedural information for 
removing their child from a program.
      HR/SR--see note 13.
      38. Both the House bill and the Senate Amendment have 
similar language stating that students cannot be admitted or 
excluded in a program solely on the basis of a surname or 
language minority status.
      HR/SR--see note 13.
      39. The Senate Amendment, but not the House bill, has a 
provision stating that nothing shall be construed as to 
mandate, direct or control an entity's choice in developing 
standards or assessments, curriculum or program of instruction.
      HR/SR--see note 13.
      40. The House bill, but not the Senate Amendment, 
provides for testing of LEP children. Both the House bill and 
the Senate Amendment have similar provisions for testing LEP 
children in Title I, Part A.
      HR
      41. Both the House bill and the Senate Amendment, require 
that LEP children, who have been in school in the US for three 
or more consecutive years be tested in English. The Senate 
Amendment contains the same requirement in Title I, Part A. The 
House bill, but not the Senate Amendment, further permits the 
tests to be administered for one additional year, on a case-by-
case basis in another language or form. The Senate Amendment, 
but not the House bill, further permits such tests to be 
administered for additional years, provided that the total 
number of students so assessed does not exceed 1/3 the number 
of students assessed in their native language in the previous 
year.
      HR
      42. Using different language, the House bill and the 
Senate Amendment, authorize federal grants to states for the 
purposes of assisting LEP children. The House bill, but not the 
Senate Amendment, provides such grants for the fiscal year in 
which it is applied for. The Senate Amendment, but not the 
House bill, provides that such grants remain in effect for the 
duration of the state's participation under this part. (See 
note 86)
      SR
      43. The House bill, but not the Senate Amendment, states 
the purposes of the state grants.
      HR
      44. The House bill, but not the Senate Amendment, 
provides that a state must expend at least 95 percent of its 
allotment to local eligible entities.
      SR
      45. Both the House bill and the Senate Amendment provide 
that a state may not expend more than 5 percent of its 
allotment for state activities.
      LC
      46. Both the House bill and the Senate Amendment provide 
activities for which state grants may be used.
      LC
      47. The House bill, but not the Senate Amendment, 
provides for authorized activities that state grants may be 
used for, such as professional development activities, 
providing scholarships and fellowships to students who agree to 
teach limited English proficient children upon graduation, 
planning administration and interagency coordination, providing 
technical assistance to LEAs who teach limited English 
proficient children and other eligible entities not receiving a 
subgrant from the state, and providing bonuses to eligible 
entities with successful programs.
      HR/SR with an amendment to strike all legislative 
language in notes 47-49 and insert:
            ``(2) State activities.--Each state educational 
        agency receiving a grant under this part may reserve 
        not more than 5 percent of the agency's allotment under 
        section 3323(b)(2) to carry out state activities 
        described in the state plan submitted under section 
        3325, including--
                    ``(A) professional development activities, 
                and other activities, that assist personnel in 
                meeting state and local certification 
                requirements for teaching limited English 
                proficient children;
                    ``(B) planning, evaluation, administration, 
                and interagency coordination related to the 
                subgrants referred to in paragraph (1).
                    ``(C) providing technical assistance and 
                other forms of assistance to local educational 
                agencies that are receiving assistance from a 
                state educational agency under this part 
                including--
                            ``(i) identifying and implementing 
                        language instruction educational 
                        programs and curricula that are based 
                        on scientifically based research on 
                        teaching limited English proficient 
                        children;
                            ``(ii) helping limited English 
                        proficient students meet the same 
                        challenging state academic content 
                        standards and challenging state student 
                        academic achievement standards that all 
                        students are expected to meet;
                            ``(iii) identifying or developing 
                        and implementing measures of English 
                        language proficiency; and
                            ``(iv) promoting parental and 
                        community participation in programs 
                        that serve limited English proficient 
                        students.
                    ``(D) Provide recognition, which may 
                include financial awards to subgrantees who 
                have exceeded their achievement objectives 
                pursuant to section 3329.''
      48. The Senate Amendment, but not the House bill, 
requires SEAs to describe how they will provide technical 
assistance to LEAs and elementary and secondary schools for: 
identifying and implementing language instruction educational 
programs and curricula tied to scientifically based research; 
helping LEP student meet challenging state content and student 
performance standards expected of all children; identify or 
develop and implement measures of English language proficiency; 
and the promoting of parental and community participation in 
programs. The Senate Amendment provides that these activities 
be described in the state plan.
      HR/SR (see note 47)
      49. The Senate Amendment, but not the House bill, 
includes the same set of criteria for specially qualified 
agencies.
      HR/SR (see note 47)
      50. Using different language, the House bill and the 
Senate Amendment, require that a state receiving a grant may 
not use more than two percent of its allotment for 
administrative purposes.
      HR with an amendment to strike ``may use not more than 2 
percent'' and insert ``may use up to 3 percent or $175,000, 
whichever is greater,'' and strike ``costs'' after ``planning'' 
in (3).
      51. Both the House bill and the Senate Amendment provide 
for the determination of allotments and reservations.
      LC
      52. Using different language, the House bill and the 
Senate Amendment, reserve .5 percent for payments to LEAs that 
serve Native American children. The House bill, but not the 
Senate Amendment, provides it for individuals in schools 
operated predominately for Native American or Alaska Native 
children. The Senate Amendment, but not the House bill, 
reserves .5 percent for payments to the Secretary of Interior 
for activities and schools operated by the BIA. The House bill, 
but not the Senate Amendment, defines these entities in Section 
3106(a). (See note 67)
      HR/SR with an amendment to insert as a new (A): ``(A) .5% 
or $5 million of such amount, whichever is greater, for 
payments to eligible entities that are defined under section 
3106(a) for activities proposed by the Secretary.''
      53. Using similar language both the House bill and the 
Senate Amendment provide .5 percent for payments to outlying 
areas.
      LC
      54. The House bill, but not the Senate Amendment, 
reserves .5 percent for the evaluation of programs for 
dissemination of best practices. The Senate Amendment, but not 
the House bill, continues a National Clearinghouse to 
disseminate best practices. (See note 176)
      HR
      55. The Senate Amendment, but not the House bill, 
reserves 6 percent for national leadership activities.
      HR with an amendment to change to ``6.5 percent'' with .5 
percent for evaluation and no more than $2 million for the 
National Clearinghouse.
      56. The Senate Amendment, but not the House bill, 
reserves such sums for continuation awards.
      LC
      57. Using different language the House bill and the 
Senate Amendment provide for the continuation of current grant 
awards. The House bill, but not the Senate Amendment, provides 
for such continuation only for grants made to subpart 1, Part A 
(Capacity and Demonstration grants) under current law. The 
Senate Amendment, but not the House bill, provides for the 
continuation of grants made under Subparts 1 and 3 under Part A 
(Capacity and Demonstration Grants; Professional Development 
Grants) The Senate Amendment, but not the House bill, provides 
for awards to cover grants under current law, as well as, 
grants made in years that Part D is not in effect (when the 
appropriation is not $700 million or more).
      HR
      58. Using different language, both the House bill and the 
Senate Amendment, provide for state allotments. The House bill, 
but not the Senate Amendment, awards grants to states based on 
the number of LEP students. The Senate Amendment, but not the 
House bill, awards grants to states based 67 percent of each 
state's share of LEP students and 33 percent of each state's 
share of immigrant students.
      HR with an amendment to strike ``67'' and insert ``80'' 
in (A)(i) and to strike ``33'' and insert ``20'' in (A)(ii).
      59. The Senate Amendment, but not the House bill, 
provides that no state would receive less than .5 percent of 
the total amount available for distribution.
      HR with an amendment to strike ``less than . . . under 
this paragraph'' and insert ``that is in the amount of not less 
than $500,000'' in (B).
      60. Using different language, the House bill and the 
Senate Amendment, require the Secretary to make grants to 
specially qualified agencies from the amount made available to 
states when it's determined that such allotment will not be 
used for the intended purpose. Both the House bill and the 
Senate Amendment, stipulate that funds are available when a 
state does not submit an application or submits an application 
that is not approved. The Senate Amendment, but not the House 
bill, allows the Secretary to determine such rules as to be 
appropriate to make amounts available to states.
      SR
      61. Using different language, the House bill, and the 
Senate Amendment, require the Secretary to make reallotments 
available on a competitive basis to specially qualified 
agencies within the state. The House bill, but not the Senate 
Amendment, provide for reallocating any portion to the 
remaining states.
      SR
      62. The House bill, but not the Senate Amendment, permits 
specially qualified agencies receiving funding to waive certain 
requirements.
      SR
      63. The Senate Amendment, but not the House bill, limits 
a specially qualified agency from using not more than 1 percent 
of the direct award for administrative costs.
      HR with an amendment to strike ``not more than 1 
percent'' and insert ``not more 2 percent''.
      64. The House bill and the Senate Amendment refer to 
amounts for Puerto Rico. The House bill, but not the Senate 
Amendment, caps such amount at .5 percent of the amount 
allotted to all states. The Senate Amendment, but not the House 
bill, reserves .5 percent for Puerto Rico.
      SR
      65. Using different language, the House bill and the 
Senate Amendment, provides for data determinations. The House 
bill, but not the Senate Amendment, provides for determining 
the number of LEP children in the state based on the most 
recent satisfactory data available from the Bureau of the 
Census and the American Community Survey. It also stipulates 
that if satisfactory data is not available or deemed outdated 
from these sources, then funds are provided based on data 
provided by the states. The Senate Amendment, but not the House 
bill, requires the Secretary to use data that would yield the 
most accurate and up-to-date figures, including data from the 
Bureau of the Census or data submitted by the states. The 
Senate Amendment, but not the House bill, also includes 
immigrant children and youth in their data collection.
      HR with an amendment to insert as (A) and (B):
            ``(3) Use of data for determinations.--
                    ``(A) In general.--For the purposes of 
                making state allotments under paragraph (2), 
                for the purpose of determining the number of 
                limited English proficient students in a state 
                and in all states, and the number of immigrant 
                children and youth in a state and in all 
                states, for each fiscal year, the Secretary 
                shall use data that will yield the most 
                accurate, up-to-date numbers of such students.
                    ``(B) Special rule.--In making such 
                determinations under paragraph (A) for the two 
                fiscal years following the enactment of [Name 
                of Act], the Secretary shall determine the 
                number of limited English proficient students 
                in a state and in all states, and the number of 
                immigrant children and youth in a state and in 
                all states, using data available from the 
                Bureau of Census or submitted by the states to 
                the Secretary. After such time, the Secretary 
                shall use data available from the American 
                Community Survey available from the Department 
                of Commerce or the number of students being 
                assessed for English proficiency in a state as 
                required under section 1111(b)(7), whichever 
                the Secretary determines to be the most 
                accurate.''
      66. The House bill, but not the Senate Amendment, 
stipulates that the Secretary may not reduce a state's 
allotment based on the state's selection of any method of 
instruction, as its preferred method of teaching English to LEP 
children.
      HR
      67. The House bill, but not the Senate Amendment, 
clarifies certain entities that operate schools for Native 
American or Alaska Native children are considered LEAs, and 
therefore eligible to receive funding under 3105(c)(1)(A). (See 
note 52)
      SR with an amendment to insert as new SEC. 3106:

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

      ``(a) Eligible Entities.--For the purpose of carrying out 
programs under this part for individuals served by elementary, 
secondary, and postsecondary schools operated predominately for 
Native American or Alaska Native children or youth, the 
following shall be considered to be an eligible entity--
            ``(1) An Indian Tribe. [Corresponding with 
        Definition in Current Law 7104.]
            ``(2) A tribally sanctioned educational authority.
            ``(3) A Native Hawaiian or Native American Pacific 
        Islander native language educational organization.
            ``(4) An elementary or secondary school that is 
        operated or funded by the Bureau of Indian Affairs, or 
        a consortium of such schools.
            ``(5) An elementary or secondary school operated 
        under a contract with or grant from the Bureau of 
        Indian Affairs, in consortium with another such school 
        or a tribal or community organization;
            ``(6) An elementary or secondary school operated by 
        the Bureau of Indian Affairs and an institution of 
        higher education, in consortium with an elementary or 
        secondary school operated under a contract with or 
        grant from the Bureau of Indian Affairs or a tribal or 
        community organization;
      ``(b) Submission of Applications for Assistance.--
Notwithstanding any other provision of this part, an entity 
that is considered to be an eligible entity under subsection 
(a), and that desires to submit an application for federal 
financial assistance under this subpart, shall submit the 
application to the Secretary.
      ``(c) Special Rule.--Eligible Entities described under 
subsection (a) which receive federal financial assistance 
pursuant to this section shall not be eligible to receive a 
subgrant under section [section on State subgrants to eligible 
entities under formula grant].''
      68. Using different language and criteria, both the House 
bill and the Senate Amendment, stipulate the requirements for 
an application to be approved by the Secretary. The House bill 
uses ``state application.'' The Senate Amendment uses ``state 
plans.''
      HR
      69. The House bill, but not the Senate Amendment, 
stipulates that states must describe the process for making 
competitive subgrants to eligible entities. The Senate 
Amendment, but not the House bill, provides a formula for 
making allotments to LEAs in Sec. 3324.
      HR/SR with an amendment to strike all legislative 
language in notes 69-84 and insert:
      ``(a) Plan Required.--Each state educational agency and 
specially qualified agency desiring a grant under this part 
shall submit a plan to the Secretary at such time, in such 
manner, and containing such information as the Secretary may 
require. Such plan shall:
            ``(1) describe the process that the state 
        educational agency will use in making competitive 
        subgrants to eligible entities under section 3324(a) 
        [conform to recent immigrant program cite];
            ``(2) contain an agreement that, in awarding grants 
        under 3324(a)(2), the state educational agency will 
        address the needs of school systems of all sizes and in 
        all geographic areas, including rural and urban 
        schools;
            ``(3) contain an agreement that competitive 
        subgrants to eligible entities under section 3324(a)(2) 
        shall be of sufficient size and scope to allow such 
        entities to carry out high quality education programs 
        for limited English proficient children;
            ``(4) contain an agreement that the state 
        educational agency will coordinate its programs and 
        activities under this part with its other programs and 
        activities under this Act and other Acts, as 
        appropriate;
            ``(5) describe how the state educational agency or 
        specially qualified agency will establish standards and 
        objectives for raising the level of English language 
        proficiency that are derived from the 4 recognized 
        domains of speaking, listening, reading, and writing, 
        and that are aligned with achievement of the state 
        academic content and student academic achievement 
        standards described in section 1111(b)(1);
            ``(6) contain an assurance that the--
                    ``(A) state educational agency consulted 
                with local educational agencies, education 
                related community groups and nonprofit 
                organizations, parents, teachers, school 
                administrators, and researchers, in setting the 
                achievement objectives described in section 
                3329;
                    ``(B) specially qualified agency consulted 
                with education related community groups and 
                nonprofit organizations, parents, teachers, and 
                researchers, in setting the achievement 
                objectives described in section 3329;
                    ``(C) state educational agency or specially 
                qualified agency will ensure that eligible 
                entities comply with section 1111 (b)(3)(j) 
                [LC] to annually test children in English who 
                have been in the United States for 3 or more 
                consecutive years;
                    ``(D) state educational agency or specially 
                qualified agency will develop and require 
                eligible entities receiving a subgrant under 
                this subpart to annually assess the English 
                proficiency of all children with limited 
                English proficiency participating in a program 
                funded under this part, consistent with section 
                1111(b)(6) [conform to annual proficiency 
                assessments in Title I];--
            ``(7) contain an agreement that the state 
        educational agency or specially qualified agency will 
        hold local educational agencies, eligible entities, and 
        elementary and secondary schools accountable for--
                    ``(A) meeting all achievement objectives 
                described in section 3329;
                    ``(B) making adequate yearly progress with 
                limited English proficient students as 
                described in section 1111(b)(2); and
                    ``(C) meeting the purposes of this part;
            ``(8) describes how eligible entities in the state 
        will be given the flexibility to teach limited English 
        proficient students--
                    ``(A) using a language instruction 
                curriculum that is tied to scientifically based 
                research on teaching limited English proficient 
                children and that has been demonstrated to be 
                effective; and
                    ``(B) in the manner the eligible entities 
                determine to be the most effective; and
            ``(9) contains an agreement that the state will 
        require eligible entities receiving a subgrant under 
        this part to use the subgrant in ways that will build 
        such recipient's capacity to continue to offer high-
        quality language instruction educational programs which 
        assist limited English proficient children in attaining 
        challenging state academic content standards and 
        challenging state student academic achievement 
        standards once assistance under this part is no longer 
        available.''
      70. The House bill, but not the Senate Amendment, 
stipulates that states must agree to address the needs of 
schools, including rural and urban schools.
      HR/SR (see note 69)
      71. The House bill, but not the Senate Amendment, 
stipulates that states must agree to make competitive subgrants 
that are of sufficient size and scope to eligible entities.
      HR/SR (see note 69)
      72. Using different language, the Senate Amendment and 
the House bill, require states receiving grants under this part 
to establish English language standards and benchmarks. The 
Senate Amendment, but not the House bill, specifically states 
that such benchmarks and standards must be derived from 
speaking, listening, reading, and writing. The House bill has a 
similar provision. (See note 76).
      HR/SR (see note 69)
      73. The House bill, but not the Senate Amendment, 
requires states to agree to coordinate its programs and 
activities with other programs and activities as appropriate.
      HR/SR (see note 69)
      74. The Senate Amendment, but not the House bill, 
requires SEAs and specially qualified agencies to consult with 
other groups, such as LEAs, education-related community groups 
and nonprofit organizations, parents, teachers, school 
administrators and second language acquisition specialists in 
setting performance objectives.
      HR/SR (see note 69)
      75. The House bill, but not the Senate Amendment, 
requires states to monitor the progress of students enrolled in 
such programs and activities in attaining English proficiency 
and attaining challenging state academic content standards and 
academic achievement standards.
      HR/SR (see note 69)
      76. Using different language, the Senate Amendment and 
the House bill, require states or specially qualified agencies 
to establish English language standards and benchmarks. The 
House bill and the Senate Amendment, require that such 
standards be aligned with state academic content and 
achievement standards. The Senate Amendment, but not the House 
bill, requires that such benchmarks and standards be derived 
from speaking, listening, reading, and writing.
      HR/SR (see note 69)
      77. The Senate Amendment, but not the House bill, 
requires states to describe how SEAs will hold LEAs accountable 
for meeting all performance objectives and making adequate 
yearly progress with LEP students.
      HR/SR (see note 69)
      78. Using different language, the House bill and the 
Senate Amendment, require states to annually measure LEP 
students progress in becoming English proficient. The House 
bill, but not the Senate Amendment, requires states to ensure 
that eligible entities comply with annual testing requirements 
for LEP students in reading and language arts who have been in 
the US for 3 or more consecutive years. The Senate Amendment, 
but not the House bill, requires states to annually measure LEP 
students progress in becoming English proficient as quickly and 
as effectively as possible.
      HR/SR (see note 69)
      79. The Senate Amendment, but not the House bill, 
includes the same requirements for specially qualified 
agencies.
      HR/SR (see note 69)
      80. The House bill, but not the Senate Amendment, 
stipulates that the application must contain an assurance that 
the state will develop high-quality annual assessments to 
measure English language proficiency and require eligible 
entities receiving a subgrant to annually assess all LEP 
children for English proficiency. The Senate Amendment requires 
annual assessments to measure the English proficiency of all 
LEP students under Title I.
      HR/SR (see note 69)
      81. The Senate Amendment, but not the House bill, 
requires specially qualified agencies to describe the 
activities for which assistance is sought, how such activities 
will increase the effectiveness with which students develop 
English proficiency as quickly and effectively as possible, 
while meeting state content and student performance standards.
      HR/SR (see note 69)
      82. The House bill, but not the Senate Amendment, 
stipulates that states must develop annual performance 
objectives as part of the state application, and must include 
percentage increases in performance on annual assessments in 
reading, writing, speaking, and listening comprehension as 
compared to the preceding school year. The Senate Amendment 
requires states to develop annual performance objectives under 
Sec. 3329
      HR/SR (see note 69)
      83. The Senate Amendment, but not the House bill, 
stipulates that the SEA must describe how LEAs will be given 
the flexibility to teach LEP students using language 
instruction curriculum that is tied to scientifically based 
research and demonstrated to be effective, and in a manner 
determined to be the most effective by the LEA.
      HR/SR (see note 69)
      84. The House bill, but not the Senate Amendment, 
stipulates that states must require eligible entities to use 
subgrants in ways that will build the capacity of such 
recipient to continue to offer high-quality English language 
programs that assist LEP children in attaining challenging 
state academic content standards and achievement standards once 
assistance is no longer available.
      HR/SR (see note 69)
      85. The Senate Amendment, but not the House bill, 
requires the Secretary to approve a state or specially 
qualified agency plan that meets all of the requirements after 
using a peer review process.
      HR with an amendment to strike ``and holds reasonable . . 
. in section 3321(b).''
      86. The Senate Amendment, but not the House bill, 
stipulates that each state or specially qualified agency plan 
must remain in effect for the duration of the SEAs or specially 
qualified agency's participation under this part and must be 
periodically reviewed and revised by the SEA or specially 
qualified agency to reflect changes to strategies and programs 
carried out. The House bill, but not the Senate Amendment, 
provides such grants for the fiscal year in which it is applied 
for. (See note 42)
      HR
      87. The Senate Amendment, but not the House bill, 
requires the SEA or specially qualified agency to submit 
significant changes to their plans to the Secretary. The 
Secretary must approve such changes, but has the right to deny 
approval if it deems such changes to not meet the requirements 
or fulfill the purposes of the grants.
      HR with an amendment to insert the following language as 
(2)(A):
                    ``(A) Amendments.--If the State educational 
                agency or specially qualified agency amends the 
                plan, such agencies shall submit such 
                amendments to the Secretary.''
      88. The Senate Amendment, but not the House bill, permits 
states to submit a plan as part of a consolidated plan.
      HR
      89. The Senate Amendment, but not the House bill, 
requires the Secretary to provide technical assistance in the 
development of English language development standards and 
English language proficiency assessments, if requested.
      HR with an amendment to insert the following language as 
(2)(f):
      ``(f) Secretary Assistance.--The Secretary shall provide 
technical assistance, if requested, in the development of 
English language proficiency standards, objectives, and 
assessments.''
      90. The House bill, but not the Senate Amendment, 
describes the main purposes of the subgrants.
      SR with an amendment to strike ``reading'' after ``based 
on scientifically based'' and ``and sound research and theory'' 
before ``on teaching limited'' in (a). Strike ``English'' and 
insert ``instructional educational programs'' after the word 
``language'' in paragraphs (1)(2) and (3).
      91. The Senate Amendment, but not the House bill, 
provides for grants to LEAs to carry out Sec. 3327(b) (Grants 
for the education of LEP students) and 3327 (c) (Grants for the 
education of immigrant students). Both the House bill and 
Senate Amendment provide that at least 95 percent of federal 
funding be used for making subgrants to eligible entities and 
LEAs. (See note 131)
      HR
      92. The Senate Amendment, but not the House bill, 
requires that not more then 1 percent of funds received by LEAs 
be used for administrative costs.
      HR with an amendment to strike ``1 percent'' and insert 
``2 percent''.
      93. Using different language and criteria, the House bill 
and the Senate Amendment, provide for activities of LEAs and 
eligible entities receiving subgrants from states. The House 
bill, but not the Senate Amendment, stipulates that states may 
make a subgrant to eligible entities to achieve one of the 
purposes by undertaking activities to improve the understanding 
and use of the English language based on a child's learning 
skills and attainment of challenging state academic content and 
student achievement standards. The Senate Amendment, but not 
the House bill, stipulates that grant funds shall be used for 
specific criteria.
      HR/SR with an amendment to strike all legislative 
language in notes 93-105 and insert:
      ``(b) Authorized Subgrantee Activities.--
            ``(1) In general.--Subject to paragraph (2), a 
        state educational agency may make a subgrant
        to an eligible entity from funds received by the State 
        under this subpart to achieve one of the purposes 
        described in subsection (a) by undertaking one or more 
        of the following activities--
                    ``(A) Upgrading program objectives and 
                effective instructional strategies.
                    ``(B) Improving the instruction program for 
                limited English proficient students by 
                identifying, acquiring, and upgrading 
                curricula, instructional materials, educational 
                software, and assessment procedures.
                    ``(C) Providing.--
                            ``(i) tutorials and academic or 
                        vocational education for limited 
                        English proficient children; and
                            ``(ii) intensified instruction.
                    ``(D) Developing and implementing 
                elementary or secondary school language 
                instruction educational programs that are 
                coordinated with other relevant programs and 
                services.
                    ``(E) Improving the English language 
                proficiency and academic performance of limited 
                English proficient children.
                    ``(F) Providing community participation 
                programs, family literacy services and parent 
                outreach and training activities to limited 
                English proficient children and their families 
                to improve the English language skills of 
                limited proficient children, and assist parents 
                in helping their children to improve their 
                academic performance, and become active 
                participants in the education of their 
                children;
                    ``(G) Improving the instruction of limited 
                English proficient children by providing for 
                the acquisition or development of education 
                technology or instructional materials, access 
                to and participation in electronic networks for 
                materials, training and communications, and 
                incorporation of such resources in curricula 
                and programs, such as those funded under this 
                subpart; and
                    ``(H) Other activities that are consistent 
                with the purposes of this part.
      ``(c) Required Subgrantee Activities.--
            ``(1) An eligible entity receiving a grant under 
        this subpart shall use the grant funds --
                    ``(A) to increase limited English 
                proficient students' proficiency in English by 
                providing high-quality language instruction 
                educational programs that are--
                            ``(i) based on scientifically based 
                        research demonstrating the 
                        effectiveness of the programs in 
                        increasing English proficiency; and
                            ``(ii) based on scientifically 
                        based research demonstrating the 
                        effectiveness of the programs in 
                        increasing student performance in the 
                        core academic subjects;
                    ``(B) to provide high-quality professional 
                development to classroom teachers, (including 
                teachers in classroom settings that are not the 
                settings of language instruction educational 
                programs) principals, administrators, and other 
                school or community-based organizational 
                personnel to improve the instruction and 
                assessment of children who are limited English 
                proficient children, that are--
                            ``(i) designed to enhance the 
                        ability of the teachers to understand 
                        and use curricula, assessment measures, 
                        and instructional strategies for 
                        limited English proficient students;
                            ``(ii) based on scientifically 
                        based research demonstrating the 
                        effectiveness of those activities in 
                        increasing students' English 
                        proficiency or substantially increasing 
                        the subject matter knowledge, teaching 
                        knowledge, and teaching skills of those 
                        teachers; and
                            ``(iii) of sufficient intensity and 
                        duration (not to include activities 
                        such as 1-day or short-term workshops 
                        and conferences) to have a positive and 
                        lasting impact on the teachers' 
                        performance in the classroom, except 
                        that this clause shall not apply to an 
                        activity that is 1 component described 
                        in a long-term, comprehensive 
                        professional development plan 
                        established by a teacher and the 
                        teacher's supervisor based on an 
                        assessment of the needs of the teacher, 
                        the supervisor, the students of the 
                        teacher, and the local educational 
                        agency.''
      94. The House bill, but not the Senate Amendment, lists 
activities that may be undertaken by eligible entities, such 
as, upgrading program objectives and effective instructional 
strategies as an activity.
      HR/SR (see note 93)
      95. The House bill, but not the Senate Amendment, 
stipulates that improving the instruction program for LEP 
students by identifying, acquiring, and upgrading curricula, 
instructional materials, educational software, and assessment 
procedures is also an activity.
      HR/SR (see note 93)
      96. The Senate Amendment, but not the House bill, 
stipulates that grants funds must be used to increase LEP 
students' proficiency in English by providing high-quality 
language instruction education programs that are tied to 
scientifically based research demonstrating the effectiveness 
of the programs in increasing English proficiency and in 
increasing student performance in the core academic subjects.
      HR/SR (see note 93)
      97. The House bill, but not the Senate Amendment, further 
lists activities that may be undertaken by eligible entities, 
such as providing tutorials and academic or vocational 
education and intensified instruction for LEP children.
      HR/SR (see note 93)
      98. The House bill, but not the Senate Amendment 
stipulates that developing and implementing elementary and 
secondary school English language instructional programs 
coordinated with other relevant programs and services as an 
activity.
      HR/SR (see note 93)
      99. Using different language, the House bill and the 
Senate Amendment, provide for professional development 
activities to improve the instruction of LEP children. The 
House bill, but not the Senate Amendment, extends such 
activities to principals, administrators, and other school or 
community-based organizational personnel to improve instruction 
and assessment. The Senate Amendment, but not the House bill, 
further requires such activities to be tied to scientifically 
based research.
      HR/SR (see note 93)
      100. The Senate Amendment, but not the House bill, 
further provides that professional development activities be of 
sufficient intensity and duration to have a lasting impact on 
the teachers' performance in the classroom. This clause does 
not apply for long-term, comprehensive professional development 
plans already established.
      HR/SR (see note 93)
      101. The House bill, but not the Senate Amendment, 
further requires the improvement of the English language 
proficiency and academic performance of LEP children.
      HR/SR (see note 93)
      101. The House bill, but not the Senate Amendment, 
requires the improvement of the instruction of LEP children by 
acquiring or development of educational technology or 
instructional materials, training and communications, and 
incorporation of such resources in curricula and programs.
      HR/SR (see note 93)
      102. The House bill, but not the Senate Amendment, 
requires the development of tutoring programs for LEP children 
that provide early intervention and intensive instruction to 
increase academic achievement, graduation rates and prepare 
students for transitioning into classrooms where instruction is 
not tailored for LEP children.
      HR/SR (see note 93)
      104. Using different language, the House bill and Senate 
Amendment, provide for parental participation and outreach.
      HR/SR (see note 93)
      105. The House bill, but not the Senate Amendment, 
includes other activities.
      HR/SR (see note 93)
      106. The House bill, but not the Senate Amendment, 
requires any program or activity undertaken by eligible 
entities using a subgrant from a state be designed to assist 
students in attaining English proficiency within three years of 
attendance in the U.S. and move such students into classrooms 
where instruction is not tailored for limited English 
proficient children.
      HR
      107. The House bill, but not the Senate Amendment, 
stipulates that eligible entities must select one or more 
methods or forms of instruction to be used to assist LEP 
children in attaining English and to meet challenging state 
academic content and student academic achievement standards.
      SR
      108. The House bill, but not the Senate Amendment, 
stipulates that states have the discretion to decide the 
duration of a subgrant to an eligible entity.
      SR
      109. The Senate Amendment, but not the House bill, 
provides for grant awards to meet the needs of immigrant 
students under Sec. 3324(c).
      HR
      110. The Senate Amendment, but not the House bill, 
specifies activities to provide support for immigrant children.
      HR with an amendment to strike ``payment of salaries'' 
and insert ``support for'' before ``personnel'' in (2);
      Strike ``overhead costs, costs of construction, 
acquisition, or rental of space'' in (5).
      Insert the following language as (6) and (7):
            ``(6) other instructional services that are 
        designed to assist immigrant students to achieve in 
        elementary and secondary schools in the United States, 
        such as programs of introduction to the educational 
        system, and civics education; and
            ``(7) activities, coordinated with community-based 
        organizations, institutions of higher education, 
        private sector entities, or other entities with 
        expertise in working with immigrants, to assist parents 
        of immigrant students by offering comprehensive 
        community services.''
      111. The Senate Amendment, but not the House bill, 
includes a provision to insure that funds are used to 
supplement and not supplant other federal, state and local 
public funds.
      HR
      112. Using different language, both the House bill and 
the Senate Amendment, require eligible entities to apply for 
subgrants from the state. The House bill, but not the Senate 
Amendment uses ``application.'' The Senate Amendment, but not 
the House bill, uses ``plan.''
      HR
      113. Using different language and criteria, both the 
House bill and the Senate Amendment, stipulate the requirements 
for submitting a plan or application.
      HR
      114. The House bill, but not the Senate Amendment, 
requires an eligible entity to describe the programs and 
activities to be developed, implemented, and administered under 
the subgrant.
      HR/SR with an amendment to strike all legislative 
language in notes 114-121 and insert:
      ``(b) Contents.--Each plan submitted under subsection (a) 
shall--
            ``(A) describe the programs and activities proposed 
        to be developed, implemented and administered under the 
        subgrant;
            ``(B) describe how the eligible entity will use the 
        grant funds to meet all achievement objectives 
        described in section 3329;
            ``(C) describe how the eligible entity will hold 
        elementary schools and secondary schools accountable 
        for--
                    ``(i) meeting the achievement objectives 
                described in section 3329;
                    ``(ii) making adequate yearly progress with 
                limited English proficient students as 
                described in section 1111(b)(2); and
                    ``(iii) annually measuring the English 
                language proficiency of limited English 
                proficient students, so that such students 
                served by the programs carried out under this 
                subpart develop proficiency in English while 
                meeting state academic content and student 
                academic achievement standards as required by 
                section 1111(b)(1);
            ``(D) describe how the eligible entity will promote 
        parental and community participation in programs for 
        limited English proficient students;
            ``(E) contain an assurance that the local 
        educational agency consulted with teachers, 
        researchers, school administrators, and parents, and if 
        appropriate, with education related community groups 
        and nonprofit organizations, and institutions of higher 
        education, in developing the local educational agency 
        plan;
            ``(F) describe how language instruction educational 
        programs will ensure that limited English proficient 
        students being served by the programs develop English 
        language proficiency.''
      115. The Senate Amendment, but not the House bill, 
requires applicants to describe how such a subgrant will meet 
all performance objectives.
      HR/SR (see note 114)
      116. The House bill, but not the Senate Amendment, 
requires applicants to describe how such subgrant will be used 
to satisfy the requirement of moving LEP children out of 
specialized classrooms.
      HR/SR (see note 114)
      117. The Senate Amendment, but not the House bill, 
requires applicants to describe how they will measure the 
progress of LEP children and hold schools accountable for 
making such progress.
      HR/SR (see note 114)
      118. The Senate Amendment, but not the House bill, 
requires applicants to describe how they will promote parental 
and community participation in LEP programs.
      HR/SR (see note 114)
      119. The Senate Amendment, but not the House bill, 
requires applicants to contain assurances that they consulted 
with appropriate experts and officials in developing the local 
educational agency plan.
      HR/SR (see note 114)
      120. Using similar language, the House bill and the 
Senate Amendment, require applicants to describe how they will 
use disaggregated results of student assessments and other 
measures to annually review the progress of schools within its 
jurisdiction to determine if such schools are making AYP 
necessary to ensure that LEP students will meet the state's 
proficient level of performance.
      HR/SR (see note 114)
      121. Placed in a different order and using different 
language, both the House bill and the Senate Amendment, require 
applicants to describe how language instruction programs will 
ensure that LEP students develop English proficiency. The 
Senate Amendment, but not the House bill, states as quickly and 
effectively as possible. The House bill, but not the Senate 
Amendment, states after 3 academic years of enrollment. (See 
note 127)
      HR with an amendment to insert ``and attain'' after 
``develop'' and strike ``as quickly and effectively as 
possible.''
      122. The House bill, but not the Senate Amendment, 
stipulates additional requirements that must be included for an 
application to be approved.
      HR
      123. The House bill and the Senate Amendment have similar 
provisions. The House bill, but not the Senate Amendment, 
requires eligible entities to use qualified personnel who are 
proficient in English, including written and oral communication 
skills. The Senate Amendment, but not the House bill, 
stipulates that LEAs certify to the SEAs that all teachers for 
LEP students are fluent in English and any other language used 
for instruction.
      HR with an amendment to insert ``including written and 
oral communication skills,'' after ``instruction,'' and insert 
Report Language:
      Report Language:
      Although various educational staff, such as para-
professionals, serve a critical need in language instruction 
educational programs, teachers of such programs are the primary 
provider of instruction to limited English proficient students. 
As such, it is the intent of Conferees to ensure that teachers 
in language instruction educational programs be well-qualified 
in the designated method or instructional approach used with 
limited English proficient students.
      124. The House bill, but not the Senate Amendment, 
requires eligible entities to ensure that all agencies are 
complying with the parental consent requirements each school 
year;
      SR
      125. The House bill, but not the Senate Amendment, 
requires eligible entities to assess the English proficiency of 
all children with LEP participating in a program;
      SR
      126. The House bill, but not the Senate Amendment, 
requires eligible entities to have based its proposal on 
scientifically based reading research and sound research and 
theory on teaching LEP children.
      SR with an amendment to strike ``reading'' and ``sound 
research and theory'' in (D).
      127. Placed in a different order and using different 
language, both the House bill and the Senate Amendment, require 
applicants to describe how language instruction programs will 
ensure LEP students to develop English proficiency. The House 
bill, but not the Senate Amendment, states after 3 academic 
years of enrollment. The Senate Amendment, but not the House 
bill, states as quickly and effectively as possible. (See note 
121)
      HR
      128. The House bill, but not the Senate Amendment, 
requires eligible entities to ensure that programs will enable 
children to speak, read, write and comprehend the English 
language.
      SR
      129. The House bill, but not the Senate Amendment, 
requires eligible entities to ensure that they are not in 
violation of any state law or state constitutional law 
regarding the education of LEP children.
      SR
      130. The House bill, but not the Senate Amendment, 
requires states to consider the quality of the application and 
ensure it meets the purposes of the subgrant.
      SR
      131. Using different language, the House bill and the 
Senate Amendment require states to expend at least 95 percent 
of their federal grant money for making subgrants to eligible 
entities and LEAs. (See note 91)
      LC
      132. The House bill, but not the Senate Amendment, 
requires states to reserve 75 percent of their funds for 
subgrants to eligible entities. The House bill, but not the 
Senate Amendment, distributes funds only to LEAs if the number 
of LEP children and youth is at least 500 students, or 3 
percent of the total population.
      HR
      133. Using similar language, the House bill and the 
Senate Amendment require states to award funds to eligible 
entities and LEAs based on their share of LEP children.
      HR
      134. The Senate Amendment, but not the House bill, 
requires a state to award an LEA a minimum grant of $10,000.
      HR
      135. The House bill, but not the Senate Amendment, 
requires states to reallocate any funding that will not be used 
during a fiscal year.
      SR
      136. The House bill, but not the Senate Amendment, 
reserves 25 percent of its remaining funds to award competitive 
subgrants to eligible entities experiencing significant 
increases in LEP children.
      HR
      137. The Senate Amendment, but not the House bill, 
requires states to reserve up to 15 percent for LEAs 
experiencing a substantial increase in immigrant children 
enrollment.
      HR (See note 138).
      138. Using different language, the House bill and the 
Senate Amendment, define the terms ``significant increases'' 
and ``substantial increase.'' The House bill, but not the 
Senate Amendment, provides awards to eligible entities with 
``significant increases'' (as determined by the state) in LEP 
children over the 2 previous years or who do not qualify for 
subgrants under the 75 percent formula distribution.
      HR/SR with an amendment to strike House (2) and Senate 
(B) and combine Senate (A) and House (1) to insert as the 
following new (A):
                    ``(A) In general.--A state educational 
                agency receiving a grant under this part for a 
                fiscal year shall reserve not more than 15 
                percent of the agency's allotment under section 
                3323(b)(2) to award grants to local educational 
                agencies in the state that have experienced 
                significant increases, as compared to the 
                previous 2 years, in the percentage or number 
                of immigrant children and youth, that have 
                enrolled in public and nonpublic elementary and 
                secondary schools in the geographic areas under 
                the jurisdiction of, or served by, such 
                entities during the previous fiscal year for 
                which the subgrant is made and shall equally 
                consider local educational agencies that have 
                limited or no experience in serving immigrant 
                children and youth.''
      139. The Senate Amendment, but not the House bill, 
defines ``substantial increase'' as an increase in an LEA's 
immigrant enrollment of at least 20 percent or 50 children 
relative to the preceding year, or as an increase of at least 
20 percent in an LEA's immigrant enrollment for which the LEA 
has limited or no experience in educating LEP students.
      SR
      140. Both the House bill and Senate Amendment provide for 
the authorization of appropriations. The House bill, but not 
the Senate Amendment, authorizes $750 million for FY 2002 and 
such sums through FY 2006. The Senate Amendment, but not the 
House bill, authorizes $700 million for the bilingual education 
program for FY 2002 and such sums through FY 2008.
      SR with amendment to change 4 to 5 succeeding years.
      141. The Senate Amendment, but not the House bill, 
authorizes that for any fiscal year that funds appropriated for 
the bilingual education program are $700 million or more, the 
funds should be used for the state and local grants for 
language minority students in Part D.
      HR with an amendment to strike the language, conform to 
new structure and insert:
      (b) State and Local Grants.--Notwithstanding subsection 
(a), for any fiscal year for which the total amount of funds 
appropriated for Parts A and C are not less than $650 million, 
all such funds shall be used to carry out Part D.
      Report Language:
      The Conferees support the reform measures being included 
in the formula grant program (Title III, Part A). By making 
these reforms contingent upon a set appropriated amount, the 
Conferees intend to make these reforms permanent and encourage 
the appropriators to maintain such amount for all succeeding 
fiscal years.
      142. The Senate Amendment, but not the House bill, 
contains a Sense of the Senate that Congress should appropriate 
$750 million to carry out Parts A and D and authorizes 
significant increases in appropriations for FY 2003 through FY 
2008. This was an amendment to Title X of the Senate Amendment.
      SR with an amendment to strike all of (a).
      SR on (b)
      143. The Senate Amendment, but not the House bill, 
stipulates that Parts A, C, E and F are not in effect if Part D 
is enacted. Part D is only enacted when the appropriation is 
$700 million or more.
      HR with amendment to conform to new structure
      144. The House bill, but not the Senate Amendment, 
requires subgrant recipients to submit biennial evaluations to 
the state. The evaluation must include programs and activities 
conducted by the entity; the progress made by LEP students in 
meeting challenging state academic content and student 
achievement standards; the number and percentage of LEP 
students attaining English proficiency; and the progress made 
by students in meeting challenging state academic content and 
student achievement standards after such students are no longer 
receiving services. The Senate Amendment, but not the House 
bill, also requires increases in the number and percentage of 
LEP students attaining English proficiency. (See note 148)
      SR with an amendment to:
      Strike ``subpart 1'' and insert ``this part'' after 
``under'' and strike ``of'' and insert ``that includes'' in 
(a);
      Insert ``a description of'' before ``the programs'' and 
strike ``subpart 1'' and insert ``this part for'' in (1).
      145. The House bill, but not the Senate Amendment, 
stipulates that the evaluations must be used for improvement of 
programs and activities; the effectiveness of such programs and 
activities in teaching LEP children English and meet 
challenging state academic standards; and whether or not to 
continue funding for programs and activities.
      SR
      146. The House bill, but not the Senate Amendment, 
stipulates the components of the evaluation such as an 
evaluation of whether or not students enrolled in a program or 
activity have attained English proficiency; and have achieved a 
working knowledge of the English language.
      SR with an amendment to strike (c)(1), (A), (B) and (2) 
and insert:
      ``(c) Evaluation Components.--An evaluation provided by 
an eligible entity under subsection (a) shall provide an 
evaluation of students enrolled in a program or activity 
conducted by the entity using funds under this title, including 
the percentage of students that--
            ``(1) are making progress in attaining English 
        proficiency, including the percentage of students that 
        have achieved proficiency in the English language and 
        the percentage of students that have transitioned into 
        classrooms not tailored for limited English proficient 
        students;
            ``(2) have achieved a level of proficiency in the 
        English language that is sufficient to permit them to 
        achieve in English, in a classroom that is not tailored 
        to limited English proficient children;
            ``(3) are meeting challenging state academic 
        content standards and challenging state student 
        academic achievement standards expected of all 
        students;
            ``(4) are not receiving waivers for grades 3-8 
        testing under section 1111(b)(H)(iv); and
            ``(5) such other information as the state may 
        require.''
      147. The House bill, but not the Senate Amendment, 
requires states to approve evaluation measures that are 
designed to assess oral language proficiency in Kindergarten, 
oral language proficiency, including speaking and listening 
skills in first grade, including reading and writing 
proficiency in second grade and higher, and attainment of 
challenging state student academic achievement standards.
      SR with an amendment to strike (d)(1)--(4) and insert:
      ``(d) Evaluation Measures.--In preparing an evaluation 
for use by an entity under subsection (a), a state shall 
approve evaluation measures, as applicable, for use under 
subsection (c) that are designed to assess--
          ``(1) the progress of students in attaining English 
        proficiency that shows the level of oral language, 
        including speaking and listening, reading, and writing 
        skills in English;
          ``(2) student attainment of challenging state student 
        academic achievement standards on assessments described 
        in section 1111(b)[check reference]; and
          ``(3) progress in meeting the state annual 
        achievement objectives as consistent with section 
        3329.''
      148. The Senate Amendment, but not the House bill, 
requires SEAs or specially qualified agencies to develop annual 
measurable performance objectives for LEP programs and must 
specify an incremental percentage increase for each performance 
objective for each fiscal year, including increases in the 
number of LEP students demonstrating increases on annual 
assessments.
      HR with an amendment to strike Sec. 3329 (a) and insert:

SEC. 3329. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY.

      ``(a) In General.--Each state educational agency or 
specially qualified agency receiving a grant under this title 
shall develop annual measurable achievement objectives for 
limited English proficient students served under this title 
with respect to helping such students develop and attain 
proficiency in English while meeting state academic content and 
student academic achievement standards as required by section 
1111(b)(1). Such achievement objectives shall be developed in a 
manner that considers the amount of time an individual student 
has been enrolled in a language instruction educational program 
and assigns such objectives in an appropriate manner to reflect 
such enrollment, and shall be consistent in the method and 
measurement for determining the increases described in 
paragraphs (1), (2) and (4). Measurable achievement objective 
for students served in language instruction educational 
programs under this title shall include--
            ``(1) at a minimum, annual increases in the number 
        or percentage of students making progress made by 
        students in learning the English language;
            ``(2) at a minimum, annual increases in the number 
        or percentage of students attaining English language 
        proficiency by the end of each school year, as 
        determined by a valid and reliable assessment of 
        English proficiency consistent with section 1111(b)(7);
            ``(3) meeting adequate yearly progress for limited 
        English proficient student established in section 
        1111(b)(2)(C)(iv); and
            ``(4) may include, at the discretion of the State, 
        the number or percentage of students not receiving 
        waivers for grades 3-8 testing under section 
        1111(b)(H)(iv), except that States shall not apply such 
        requirement to eligible entities that in a given school 
        year--
                    ``(A) have experienced a large influx of 
                limited English proficient children or 
                immigrant children and youth;
                    ``(B) enroll a statistically significant 
                number of immigrants from countries where such 
                immigrants had little or no access to formal 
                education; or
                    ``(C) have a statistically significant 
                number of immigrants who have fled from war and 
                natural disaster.''
      Report Language:
      To Modify Achievement Objectives 3329(a)--The Conferees 
wish to clarify that annual measurable achievement objectives 
described under 3329(a) for developing and attaining English 
proficiency be derived from scientifically-based research on 
teaching limited English proficient children such as, but not 
limited to research conducted by the READ Institute, the 
National Academy of Sciences and the Center for Applied 
Linguistics, and be established by states in a manner that 
reflects the full range of second language proficiency, 
including developmentally-appropriate communication and 
academic skills.
      To Modify Achievement Objectives 3329(a)(1) and 
3329(a)(2)--In providing for achievement objectives under 
section 3329(a), the Conferees intend to reflect progress in 
the development and the attainment of English language 
proficiency among limited English proficient students. In 
developing these objectives, states should distinguish between 
learning the English language and attaining English language 
proficiency by establishing such objectives in a manner that 
reflects the number of children showing improved achievement on 
assessments of English language proficiency (consistent with 
section 3329(a)(1)), and that reflects the number of children 
within a common group or cohort of students that are enrolled 
in a language instruction educational program from year to 
year, and that attain full English proficiency (consistent with 
section 3329(a)(2)).
      149. The Senate Amendment, but not the House bill, 
requires SEAs and specially qualified agencies to be held 
accountable for meeting annual measurable performance 
objectives and meeting AYP.
      HR with an amendment to strike (b)(1) and (b)(2) and 
insert:
      ``(b) Accountability.--
            ``(1) For states.--Each state educational agency 
        receiving a grant under this title shall hold eligible 
        entities accountable for meeting the annual measurable 
        achievement objectives under this part and adequate 
        yearly progress for limited English proficient students 
        under section 1111(b)(2)(B).
        ``(2) Improvement Plan.--(A) If the state determines, 
        based on the objectives described in subsection (a) 
        that the entity has failed to make progress toward 
        meeting the annual measurable achievement objectives 
        for limited English proficient children for two 
        consecutive years, the entity shall develop an 
        improvement plan to ensure that the entity meets such 
        annual measurable objectives that specifically 
        addresses factors that prevented the entity from 
        achieving their objectives.
            ``(3) Technical assistance.--During the development 
        of the improvement plan described in subparagraph (2), 
        and throughout its implementation, the State 
        educational agency shall --
                    ``(A) provide technical assistance to 
                eligible entities;
                    ``(B) provide technical assistance, if 
                applicable, to schools served by such entity 
                that need assistance to enable the local 
                educational agency to meet the annual 
                measurable objectives described in subsection 
                (a);
                    ``(C) develop, in consultation with the 
                entity, professional development strategies and 
                activities, based on scientifically-based 
                research that the agency will use to meet the 
                annual measurable objectives described in 
                subsection (a) and require such entity to 
                utilize such strategies and activities;
                    ``(D) develop, in consultation with the 
                entity, a plan to incorporate strategies and 
                methodologies, based on scientifically-based 
                research, to improve the specific program or 
                method of instruction provided to limited 
                English proficient students.
            ``(4) Accountability.--If the State determines the 
        entity has failed to meet the objectives in subsection 
        (a) for limited English proficient children for four 
        consecutive years, the State educational agency shall--
                    ``(A) require such entity to modify their 
                curriculum, program, and method of instruction; 
                or
                    ``(B) make a determination whether such 
                entity shall continue to receive funds related 
                to the entity's failure to make progress on the 
                measurable objectives in (a); and
                    ``(C) require such entity to replace 
                educational personnel relevant to the entity's 
                failure to make progress on the measurable 
                objectives in (a).''
      Report Language:
      For the purposes of making determinations as described in 
subsections (b)(2) and (b)(4), a State educational agency shall 
assign equal weight to annual goals for learning and attaining 
English (consistent with (a)(1) and (a)(2)), and to annual 
objectives for academic proficiency (consistent with (a)(3)).
      150. The House bill, but not the Senate Amendment, 
requires states receiving a grant to submit a report to the 
Secretary every two years on the programs and activities 
undertaken by the state and the effectiveness of such programs 
and activities in improving the education of LEP children.
      SR
      151. The House bill, but not the Senate Amendment, 
requires the Secretary to prepare and submit a report every two 
years to the respective House and Senate committees.
      SR with an amendment to strike paragraphs (1)-(5) and to 
insert the following as new paragraphs (1)-(8):
      ``(b) Secretary.--Every second year, the Secretary shall 
prepare and submit to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on 
Health, Education, Labor, and Pensions of the Senate a report 
on--
            ``(1) programs and activities undertaken to serve 
        limited English proficient students under part and, the 
        effectiveness of such programs and activities in 
        improving the academic achievement and English 
        proficiency of children who are limited English 
        proficient;
            ``(2) the types of language instructional 
        educational programs used by local educational agencies 
        or eligible entities receiving funding under this title 
        to teach limited English proficient children;
            ``(3) a critical synthesis of data reported by the 
        states, pursuant to section 3124, when applicable;
            ``(4) an estimate of the number of teachers 
        certified in the field of language instruction 
        educational programs and the education of limited 
        English proficient students, and an estimate of the 
        number of such teachers which will be needed for the 
        succeeding 5 fiscal years;
            ``(5) the major findings of scientifically based 
        research carried out under this title;
            ``(6) the number of programs or projects, if any, 
        that were terminated because they were not able to 
        reach program goals;
            ``(7) the number of limited English proficient 
        children served by local educational agencies or 
        eligible entities receiving funding under this title 
        who were transitioned out of language instruction 
        educational programs funded under this title into 
        classrooms where instruction is not tailored for 
        limited English proficient children; and
            ``(8) other information gathered from the reports 
        submitted under section 3122(a), 3107, and 3124(g) when 
        applicable.''
      152. The House bill, but not the Senate Amendment, 
requires the Secretary to coordinate all programs serving 
language minority and LEP students administered by the 
Department and other agencies.
      SR
      153. The House bill, but not the Senate Amendment, 
defines ``children and youth.''
      SR
      Definition linked to note 222.
      154. The Senate Amendment, but not the House bill, 
defines ``core academic subjects.''
      HR/SR to move to General Provisions of the Act.
      155. The House bill, but not the Senate Amendment, 
defines ``community-based organization.'' The House bill also 
defines this in Title VIII--General Provisions.
      SR
      156. The Senate Amendment, but not the House bill, 
defines ``immigrant children and youth.''
      HR
      157. The House bill, but not the Senate Amendment, 
defines ``eligible entity.''
      SR
      158. The Senate Amendment, but not the House bill, 
defines ``language instruction educational program.''
      HR with an amendment to insert ``and attaining'' after 
``developing'' in (A);
      Insert ``academic'' after ``State'' in (A);
      Strike ``performance'' and insert ``academic 
achievement'' in (A);
      Insert ``and attain'' after ``develop'' in (B).
      Strike ``as quickly and effectively as possible'' in both 
(A) and (B).
      159. The House bill, but not the Senate Amendment, 
defines ``Native Hawaiian or Native American Pacific Islander 
Native language educational organization.''
      HR with amendment to use definition on page 121, numbers 
9 and 10, which reads as follows:
            ``Native american and native american language.--
        The terms ``Native American and Native American 
        language'' shall have the same meanings given such 
        terms in section 103 of the Native American Languages 
        Act.
            ``Native hawaiian or native american pacific 
        islander native language educational organization.--The 
        term ``Native Hawaiian or Native American Pacific 
        Islander Native Language educational organization'' 
        means a nonprofit organization with a majority of its 
        governing board and employees consisting of fluent 
        speakers of the traditional Native American languages 
        used in the organization's educational programs and 
        with not less than 5 years successful experience in 
        providing educational services in traditional Native 
        American languages.''
      160. The Senate Amendment, but not the House bill, 
defines the term ``limited English proficient student'' in Part 
D. The House bill only defines ``limited English proficient 
student `` in Title VIII--General Provisions.
      HR with an amendment to strike ``opportunity to learn'' 
and insert ``ability to successfully achieve'' in (4)(D)(ii).
      Move definition to General provisions.
      161. The Senate Amendment, but not the House bill, 
defines ``local educational agency'' in Part D. The House bill 
defines it in Title VIII--General Provisions.
      SR
      162. Using different language, the House bill and the 
Senate Amendment, define ``native language.''
      HR/SR with an amendment to use definition on page 122, 
number 11, which reads as follows:
            ``Native Language--the term native language, when 
        used with reference to an individual of limited English 
        proficiency, means the language normally used by such 
        individual, or in the case of a child or youth, the 
        language normally used by the parents of the child or 
        youth.''
      163. The Senate Amendment, but not the House bill, 
defines ``scientifically based research'' in Part D. The House 
bill defines it in Title VIII--General Provisions.
      SR
      164. Using different language, the House bill and the 
Senate Amendment, define ``specially qualified agency.''
      HR with an amendment to add House (6)(B) to Senate (8).
      165. The Senate Amendment, but not the House bill, 
defines ``state'' in Part D. The House bill defines it in Title 
VIII--General Provisions.
      SR
      166. The House bill, but not the Senate Amendment, 
defines ``tribally sanctioned educational authority.''
      SR
      167. The House bill, but not the Senate Amendment, 
stipulates that nothing shall be construed as to prohibiting 
LEAs from serving LEP children simultaneously with students 
with similar needs, in the same educational settings where 
appropriate; requires states or LEAs to establish, continue, or 
eliminate any particular type of instructional programs for LEP 
children; or limit the preservation or use of Native American 
languages.
      SR
      168. The House bill, but not the Senate Amendment, 
requires the Secretary to issue regulations that are only 
necessary to ensure compliance with specific requirements of 
this part.
      HR
      169. The House bill, but not the Senate Amendment, 
provides that nothing shall be construed to negate or supersede 
the legal authority under state law.
      SR
      170. The House bill, but not the Senate Amendment, 
provides for the protection of federal law guaranteeing a civil 
right.
      SR
      171. The House bill, but not the Senate Amendment, 
stipulates that programs that serve Native American children, 
Native Pacific Island children and children of the Commonwealth 
of Puerto Rico may include learning and studying their native 
languages, as long as the primary focus and outcome of such 
program is to increase English proficiency among such children.
      SR with an amendment to strike ``primary.''
      172. The House bill, but not the Senate Amendment, 
provides the necessary conforming amendments for this title and 
changes the name of the office that administers bilingual 
education programs as well as changes the name of the director.
      SR with an amendment to strike ``Office of Educational 
Services for Limited English Proficient Children'' and to 
insert ``Office of English Language Acquisition, Language 
Enhancement and Academic Achievement for Limited English 
Proficient Students'' in paragraph (1);
      Strike ``Director of Educational Services for Limited 
English Proficient Children'' and insert ``Director of English 
Language Acquisition, Language Enhancement and Academic 
Achievement for Limited English Proficient Students'' in (2); 
and Conform to subsection (b).
      173. The Senate Amendment, but not the House bill, 
prohibits the Secretary from mandating or stopping the use of a 
particular curricular or instructional approach to education 
LEP students.
      HR
      174. The Senate Amendment, but not the House bill, 
provides for national leadership activities.
      HR
      175. The Senate Amendment, but not the House bill, 
provides competitive grants for up to five years, for 
professional development activities.
      HR with an amendment to strike ``bilingual education 
teachers'' and insert ``teachers that serve limited English 
proficient students'' in (b); Strike paragraph (1); Insert the 
following language for (4):
            ``(4) in conjunction with other federal need-based 
        student financial assistance programs, financial 
        assistance and costs related to tuition, fees, and 
        books for enrolling in courses required to complete the 
        degree involved, and meet certification or licensing 
        requirements for teachers that serve limited English 
        proficient students.''
      176. The Senate Amendment, but not the House bill, 
continues the National Clearinghouse for Bilingual Education.
      HR with an amendment to strike the language and insert 
the following:
      (c) National Clearinghouse.--The Secretary shall 
establish and support the operation of a National Clearinghouse 
for English Language Acquisition and Language Instruction 
Educational Programs, which shall collect, analyze, synthesize, 
and disseminate information about second language acquisition 
programs for limited English proficient students, and related 
programs. The National Clearinghouse shall--
            (1) be administered as an adjunct clearinghouse of 
        the Educational Resources Information Center 
        Clearinghouses system supported by the Office of 
        Educational Research and Improvement;
            (2) coordinate activities with federal data and 
        information clearinghouses and entities operating 
        federal dissemination networks and systems;
            (3) develop a system for improving the operation 
        and effectiveness of federally funded language 
        instruction educational programs;
            (4) collect and disseminate information on--
                    (A) educational research and processes 
                related to the education of limited English 
                proficient students; and
                    (B) accountability systems that monitor the 
                academic progress of limited English proficient 
                students in language instruction educational 
                programs, including information on academic 
                content standards and English language 
                proficiency assessments for language 
                instructional programs;
            (5) publish, on an annual basis, a list of grant 
        recipients under this section.
      177. No comparable House provision.
      HR
      178. No comparable House provision.
      HR with an amendment to move (2)(A) to the definition 
section and to strike (B).
      179. No comparable House provision.
      HR
      180. No comparable House provision.
      HR
      181. No comparable House provisions.
      HR with an amendment to strike the purpose (a)(1), (2), 
and (3);
      Strike subparagraph (A) and insert:
                    ``(A) In general.--The Secretary is 
                authorized to award grants to eligible entities 
                having applications approved under section 3104 
                to enable such entities to provide innovative, 
                locally designed, high quality instruction to 
                children and youth of limited English 
                proficiency, by expanding, developing or 
                strengthening language instruction educational 
                programs.''
      Strike ``performance'' and insert ``academic 
achievement'' in (2)(i)(I);
      Insert ``academic'' before ``services'' in (2)(i)(II);
      Strike ``career counseling'' and insert ``vocational and 
technical training'' in (B)(v);
      Strike one of the two duplicative (B)(v);
      Insert as (B)(ix):
                            ``(ix) acquiring or developing 
                        education technology or instructional 
                        materials for limited English 
                        proficient students, including 
                        materials in languages other than 
                        English, and participation in 
                        electronic networks for materials, 
                        training, communication, and 
                        incorporation of such resources in 
                        curricula and programs.''
      LC--renumber original (B)(ix) as (x).
      182. No comparable House provisions.
      HR with an amendment to:
      Strike the purpose (a) and (1)-(3);
      Strike (b)(1) Authority, and insert as new (1):
            ``(1) Authority.--The Secretary may award grants to 
        eligible entities having applications approved under 
        section 3104 to enable such entities to develop and 
        implement language instruction educational programs, 
        and improve, reform, or upgrade programs or operations 
        that serve significant percentages or numbers of 
        students of limited English proficiency.''
      Strike ``career counseling'' and insert ``vocational or 
technical training'' in (3)(D);
      Strike ``performance'' and insert ``academic 
achievement'' in (3)(E);
      Strike ``such as...education programs'' in (3)(G) and 
insert a period after ``proficiency;''
      Strike ``all'' and ``more than 1 language'' and insert 
``English and other languages'' after ``in'' in (3)(I);
      Insert as new (3)(J):
            ``(J) acquiring or developing education technology 
        or instructional materials for limited English 
        proficient students, including materials in languages 
        other than English, and participation in electronic 
        networks for materials, training, communication, and 
        incorporation of such resources in curricula and 
        programs.''
      LC--re-letter original (3)(J) as (3)(K);
       Strike first ``90'' and insert ``45'' and strike second 
``90'' and insert ``30'' and insert ``the beginning of the 
school year or after ``not later than'' in (4);
       Insert ``7112, 7113, 7114, 7115'' in (1)(A)(i) [COVERED 
GRANT];
      Insert ``to eligible entities'' after ``award grants'' in 
both (2)(A) and (2)(B)
      [Availability].
      Insert new (d)(A)-(D):
      (d) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an entity that--
            ``(A) experiences a significant increase in the 
        number or percentage of limited English proficient 
        students enrolled in the applicant's programs and has 
        limited or no experience in serving limited English 
        proficient students;
            ``(B) is a local educational agency that serves a 
        school district that has a total district enrollment 
        that is less than 10,000 students;
            ``(C) demonstrates that the applicant has a proven 
        track record of success in helping limited English 
        proficient children and youth learn English and meet 
        high academic standards; or
            ``(D) serves a school district with a large number 
        or percentage of limited English proficient students.
      ``(e) Eligible Entities . . .''
      183. No comparable House provision.
      HR with an amendment to:
      Strike ``bilingual'' and insert ``language instruction 
educational programs'' in (1)(D) [In General section]; Strike 
``with an advisory . . . whose members are'' in (2)(B)(ii); 
Strike ``and fair'' in (h)(B)(3)(A) and insert ``and'' after 
``valid;'' Move all of (1) PRIORITY (pg. 78) to Section 3103 
(pg. 65), strike ``subpart'' and insert ``section'' in (1), 
strike paragraph (D); and Strike (3) Due Consideration (B).
      184. No comparable House provision.
      HR with an amendment to strike ``bilingual'' and insert 
``language instruction educational programs'' in Sec. 3105.
      185. No comparable House provision.
      HR
      186. No comparable House provision.
      HR with an amendment to strike ``language groups'' and 
insert ``native languages spoken by student'' and insert 
``socioeconomic status'' before the ``and'' in (c)(2); Strike 
``performance'' and insert ``academic achievement'' in (c)(3).
      Report Language:
      It is the intent of the Conferees that evaluations 
submitted to the Secretary under this subpart accurately 
reflect academic achievement and progress made in developing 
and attaining English language proficiency for all students 
enrolled in a particular language instruction educational 
program. Consistent with section 3107(c)(2), results shall be 
disaggregated by language group and show the progress made by 
all students, when applicable.
      187. No comparable House provision.
      HR
      188. No comparable House provision.
      HR with an amendment to:
      Strike ``bilingual'' and insert ``language instruction 
educational programs'' in Sec. 3221 (a).
      Strike ``Office of Bilingual Education and Minority 
Language Affairs'' and insert ``Office of English Language 
Acquisition, Language Enhancement and Academic Achievement for 
Limited English Proficient Students'' in Sec. 3321(c).
      189. No comparable House provisions.
      HR with an amendment to replace the current Sec. 3122 
(b)(3) with the following language:
            ``(3) may include establishing (through the 
        National Center for Education Statistics in 
        consultation with experts in second language 
        acquisition and in scientifically-based research on 
        teaching LEP students) a common definition of 'limited 
        English proficient student' for purposed of national 
        data collection; and''
          Strike ``bilingual education'' and insert ``second 
        language acquisition, scientifically-based research on 
        teaching LEP students,'' in (b)(4).
      Insert ``LEP'' before ``students or teachers'' and strike 
``into bilingual education'' and insert ``that serve such 
students'', strike the second ``bilingual education'' and 
insert ``language instruction educational programs'' in (c)(1);
      Replace the current (2)(d) with the following language:
      ``(d) Consultation.--The Secretary shall consult with 
agencies, organizations, and individuals that are engaged in 
research and practice on the education of LEP students, 
language instruction educational programs, or related research, 
to identify areas of study and activities to be funded under 
this section.''
      Strike ``Office of Bilingual Education and Minority 
Language Affairs'' and insert ``Office of English Language 
Acquisition, Language Enhancement and Academic Achievement for 
Limited English Proficient Students'' in Sec. 3122 (a).
      190. No comparable House provision.
      HR with an amendment to insert ``academic'' after 
``State'' in (a)(2).
      191. No comparable House provision.
      HR with an amendment to strike $200,000 and insert 
``$100,000'' in sec. 3124(b).
      192. No comparable House provision.
      HR with an amendment to strike ``bilingual education'' 
and replace with ``language instruction educational programs'' 
in sec. 3125 (a), (b)(3), and (b)(4);
      Conform (b)(4) to Note 176.
      193. No comparable House provision.
      HR with an amendment to strike ``voluntary national 
content standards'' in (b)(2) and insert ``academic'' after 
``State'' in (b)(2).
      194. No comparable House provision.
      HR with an amendment to strike all legislative language 
in notes 194-202 and insert:

``SEC. 3131.

PROFESSIONAL DEVELOPMENT.

      ``(a) Purpose.--The purpose of this subpart is to provide 
assistance to prepare educators to improve the educational 
services for limited English proficient children and youth by--
            ``(1) supporting professional development programs 
        and activities to prepare teachers, pupil service 
        personnel, administrators, and other educational 
        personnel working in language instruction educational 
        programs to provide effective services to limited 
        English proficient children and youth;
            ``(2) incorporating curricula and resources on 
        appropriate and effective instructional and assessment 
        methodologies specific to limited English proficient 
        students into pre-service and in-service professional 
        development programs;
            ``(3) upgrading the qualifications and skills of 
        non-certified educational personnel, including 
        educational paraprofessionals, to enable such personnel 
        to meet high professional standards for educating 
        limited English proficient students;
            ``(4) improving quality of professional development 
        programs in schools or departments of education at 
        institutions of higher education, for educational 
        personnel serving or preparing to serve children and 
        youth of limited English proficiency; and
            ``(5) supporting the recruitment and training of 
        prospective educational personnel to serve limited 
        English proficient students by providing fellowships 
        for undergraduate, graduate, doctoral, and post-
        doctoral study related to the instruction of such 
        students.
      ``(b) Authorization.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to institutions of higher education, state 
        educational agencies, local educational agencies, or a 
        consortium of one or more local educational agencies, 
        state educational agencies, institutions of higher 
        education, or for profit and nonprofit organizations.
            ``(2) Duration.--Each grant awarded under this 
        subpart shall be awarded for a period of not more than 
        4 years.
      ``(c) Authorized Activities.--Grants awarded under this 
subpart shall be used to conduct high-quality professional 
development programs and effective activities and strategies to 
improve the quality of instruction and services provided to 
limited English proficient students, including--
            ``(1) implementing pre-service and in-service 
        professional development programs for teachers that 
        serve limited English proficient students, 
        administrators, and other educational personnel who are 
        preparing to provide educational services for children 
        and youth of limited English proficiency, including 
        professional development programs that assist limited 
        English proficient children to attain English 
        proficiency;
            ``(2) implementing school-based collaborative 
        efforts among teachers to improve instruction in core 
        academic areas, especially reading, for students of 
        limited English proficiency;
            ``(3) developing and implementing programs to 
        assist new teachers who serve limited English 
        proficient students with transitioning to the teaching 
        profession, including mentoring and team teaching with 
        trained and experienced teachers;
            ``(4) implementing programs that support effective 
        teacher use of education technologies to improve 
        instruction and assessment;
            ``(5) developing curricular materials and 
        assessments for teachers that are appropriate to the 
        needs of limited English proficient students, and that 
        are aligned with state academic achievement content 
        standards, including materials and assessments that 
        ensure limited English proficient children attain 
        English proficiency;
            ``(6) integrating and coordinating activities with 
        entities carrying out other programs consistent with 
        the purposes of this subsection and supported under 
        this Act, or other Acts as appropriate;
            ``(7) developing and implementing career ladder 
        programs to upgrade the qualifications and skills of 
        non-certified educational personnel working in, or 
        preparing to work in, language instruction educational 
        programs to enable such personnel to meet high 
        professional standards, including standards for 
        certification and licensure as teachers;
            ``(8) developing and implementing activities to 
        help recruit and train secondary school students as 
        teachers that serve limited English proficient 
        students;
            ``(9) providing fellowships and assistance for 
        costs related to enrollment in a course of study at an 
        institution of higher education that addresses the 
        instruction of children and youth of limited English 
        proficiency in such areas as teacher training, program 
        administration, research, evaluation, and curriculum 
        development, and for the support of dissertation 
        research related to such study, provided that any 
        person receiving such a fellowship or assistance shall 
        agree to--
                    ``(A) work in an activity related to the 
                program or in an activity such as an activity 
                authorized under this subpart, including work 
                as a teacher that serves limited English 
                proficient students, for a period of time 
                equivalent to the period of time during which 
                such person receives assistance under this 
                provision; or
                    ``(B) repay such assistance; and
            ``(10) carrying out such other activities as are 
        consistent with the purpose of this subpart.
      ``(d) Application.--
            ``(1) In general.--Each eligible entity desiring a 
        grant under this subpart shall submit an application to 
        the Secretary at such time, in such form, and 
        containing such information as the Secretary may 
        require.
                    ``(A) Contents.--Each application shall--
                            ``(i) describe the programs and 
                        activities proposed to be developed, 
                        implemented and administered under the 
                        award;
                            ``(ii) describe how the applicant 
                        has consulted with, and assessed the 
                        needs of, public and private schools 
                        serving children and youth of limited 
                        English proficiency to determine such 
                        schools' need for, and the design of, 
                        the program for which funds are sought; 
                        and
                            ``(iii) describe how the activities 
                        to be carried out under the award will 
                        be used to ensure limited English 
                        proficient students meet state academic 
                        achievement standards and attain 
                        English proficiency.
                    ``(B) Special rule.--An eligible entity who 
                proposes conducting a master's- or doctoral-
                level program with funds applied for under this 
                subpart shall contain an assurance in their 
                application that such program will include, as 
                a part of the program, a training practicum in 
                a local school program serving children and 
                youth of limited English proficiency.
                    ``(C) Outreach and technical assistance.--
                The Secretary shall provide for outreach and 
                technical assistance to institutions of higher 
                education eligible for assistance under title 
                III of the Higher Education Act of 1965 and 
                institutions of higher education that are 
                operated or funded by the Bureau of Indian 
                Affairs to facilitate the participation of such 
                institutions in activities under this subpart.
                    ``(D) Distribution rule.--In making awards 
                under this subpart, the Secretary shall ensure 
                adequate representation of Hispanic-serving 
                institutions that demonstrate competence and 
                experience concerning the programs and 
                activities authorized under this subpart and 
                are otherwise qualified.
      ``(e) Priorities in Awarding Grants.--
            ``(1) Priorities.--
                    ``(A) In awarding grants to state 
                educational agencies and local educational 
                agencies under this subpart, the Secretary 
                shall give priority to programs and activities 
                designed to implement professional development 
                programs for teachers and educational personnel 
                who are currently providing or preparing to 
                provide educational services for limited 
                English proficient children and youth, 
                including services provided through language 
                instruction educational programs, that ensure 
                such children attain English proficiency and 
                meet challenging state academic content and 
                student academic achievement standards.
                    ``(B) In awarding grants to institutions of 
                higher education under this subpart, the 
                Secretary shall give priority to institutions 
                who propose programs to recruit and upgrade the 
                qualifications and skills of certified and non-
                certified educational personnel by offering 
                degree programs that prepare new teachers to 
                serve limited English proficient students.
      ``(f) Program Evaluations.--
            ``(1) In general.--Each recipient of awards under 
        this subpart shall annually conduct an independent 
        evaluation of the program and submit to the Secretary a 
        report containing the independent evaluation. Such 
        report shall include information on--
                    ``(A) the programs and activities conducted 
                by the recipient to provide high-quality 
                professional development to participants of 
                such programs and activities;
                    ``(B) the number of participants served 
                through the program, the number of participants 
                who completed program requirements, and the 
                number of participants who took positions in an 
                instructional setting with limited English 
                proficient students;
                    ``(C) the effectiveness of the program in 
                imparting the professional skills necessary for 
                participants to achieve the objectives of the 
                program; and
                    ``(D) the teaching effectiveness of 
                graduates of the program or other participants 
                who have completed the program.''
      195. No comparable House provision.
      HR with an amendment (see note 194).
      196. No comparable House provision.
      HR with an amendment (see note 194).
      197. No comparable House provision.
      HR with an amendment (see note 194).
      198. No comparable House provision.
      HR with an amendment (see note 194).
      199. No comparable House provision.
      HR with an amendment (see note 194).
      200. No comparable House provision.
      HR with an amendment (see note 194).
      201. No comparable House provision.
      HR with an amendment (see note 194).
      202. No comparable House provision.
      SR
      203. No comparable House provision.
      HR with an amendment to move to FIE/LIFE
      204. No comparable House provision.
      HR with an amendment to move to FIE/LIFE
      205. No comparable House provision.
      HR with an amendment to move to FIE/LIFE
      206. No comparable House provision.
      HR with an amendment to move to FIE/LIFE
      207. No comparable House provision.
      HR with an amendment to move to FIE/LIFE (strike language 
not needed)
      208. No comparable House provisions.
      HR with an amendment to strike (a) Findings.
      209. No comparable House provisions.
      HR
      210. No comparable House provisions.
      HR
      211. No comparable House provision.
      HR
      212. No comparable House provision.
      HR
      213. No comparable House provision.
      HR
      214. No comparable House provision.
      HR with an amendment to strike ``salaries'' and insert 
``support'' in (a)(2); Strike ``overhead costs, costs of 
construction, acquisition or rental of space'' in (a)(5).
      215. No comparable House provision.
      HR
      216. No comparable House provision.
      HR with an amendment to strike ``$200,000 for fiscal year 
2001 and such sums as may be necessary for each of the 6 
succeeding fiscal years'' and insert: ``such sums for fiscal 
year 2001 and such sums as may be necessary for each of the 5 
succeeding fiscal years.''
      217. No comparable House provision.
      HR
      218. No comparable House provision.
      HR with an amendment to move to Authorized Activities to 
subpart 1--Bilingual Education Capacity and Demonstration 
Grants
      219. No comparable House provision.
      HR
      220. No comparable House provision.
      HR
      221. No comparable House provision.
      SR with an amendment to correspond with note 151.
      Insert ``appropriately'' after ``number of,'' strike 
``bilingual,'' and strike ``bilingual education teachers'' and 
insert ``teachers that serve limited English proficient 
students'' in (d)(3)
      222. No comparable House provision.
      SR on definition of ``Bilingual Education Program;''
      HR on definition of ``children and youth;''
      SR on definition of ``community-based organization;''
      HR on definition of ``community college;''
      HR with amendment to strike ``Office of Bilingual 
Education and Minority Languages Affairs'' and insert ``Office 
of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students'' 
in definition of ``director'';
      HR on definition of ``family education program;''
      SR on definition of (6)(B) ``instruction for higher 
education and employment;''
      HR on definition of ``immigrant children and youth;''
      SR on definition of ``limited English proficiency and 
limited English proficient;''
      HR on definition of ``Native American and Native American 
Language;''
      HR on definition of ``Native Hawaiian or Native American 
Pacific Islander Native Language Educational Organization;''
      HR on definition of ``Native Language'' (keep with note 
162 (pg. 51);
      HR with amendment to strike ``Office of Bilingual 
Education and Minority Languages Affairs'' and insert ``Office 
of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students'' 
in definition of ``office'';
      SR on definition of ``other programs for persons of 
limited English proficiency;''
      HR on definition of ``paraprofessional;''
      SR on definition of ``special alternative instructional 
program''
      223. No comparable House provision.
      Corresponds with notes 13-39.

         Title III, Part B--Indian and Alaska Native Education

                            (New Title VII)

      1. The House bill authorizes programs for Indian and 
Alaska Native Education. The Senate amendment authorizes 
programs for Indian, Native Hawaiian, and Alaska Native 
Education. The House bill places these programs in Title III, 
Part B. The Senate amendment places them in Title VII.
      HR/LC for placement.
      2. The House bill includes a header referencing Indian 
and Alaska Native Education. The Senate amendment references 
Indian Education. The House bill places programs relating to 
Indian education in Title III, Part B, Subpart 1. The Senate 
amendment places these programs in Title VII, Part A.
      LC
      3. Using slightly different language, both the House bill 
and the Senate amendment include the same findings.
      HR/SR with an amendment to insert the following language:

                         ``statement of policy

      ``It is the policy of the United States to fulfill the 
Federal Government's unique and continuing trust relationship 
with and responsibility to the American Indian people for the 
education of Indian children. The Federal Government will 
continue to work with local educational agencies, Indian tribes 
and organizations, postsecondary institutions, and other 
entities toward the goal of assuring that programs that serve 
Indian children are of the highest quality and provide for not 
only the basic elementary and secondary educational needs, but 
also the unique educational and culturally related academic 
needs of these children.''
      4. Using slightly different language, both the House bill 
and the Senate amendment include the same purposes.
      LC
      5. Both the House bill and the Senate amendment authorize 
formula grants to Local Educational Agencies. The House bill 
does this in Chapter 1, the Senate amendment does this in 
Subpart 1.
      LC
      6. Using slightly different language, both the House bill 
and the Senate amendment have the same purposes.
      LC
      7. The House bill references academic content standards 
and State student academic achievement standards. The Senate 
amendment references State student performance standards.
      LC--align with bill--academic achievement standards
      8. Using different placement, both the House bill and 
Senate amendment provide for grants to LEAs.
      LC
      9. Using slightly different language, both the House bill 
and the Senate amendment describe eligibility requirements.
      LC
      10. Using slightly different language, both the House 
bill and the Senate amendment allow for Indian tribes to apply 
for grants in the event that an eligible LEA does not establish 
a parent committee.
      LC
      11. Using slightly different language and different 
references, both the House bill and the Senate amendment 
establish criteria to determine the amount of grants to 
eligible LEAs. The Senate amendment but not the House bill 
references subsection (d)--the definition of average per pupil 
expenditure.
      LC
      12. Using slightly different language, both the House 
bill and the Senate amendment provide for a minimum grant 
amount.
      LC
      13. Using slightly different language, both the House 
bill and the Senate amendment provide the same definitions.
      LC
      14. Using slightly different language, both the House 
bill and the Senate amendment provide the same criteria for 
grants to schools supported by the Bureau of Indian Affairs 
(BIA).
      LC
      15. Using slightly different language, both the House 
bill and the Senate amendment provide for the same application 
requirements.
      HR
      16. The House bill allows applications for schoolwide 
programs to be approved if they will not diminish culturally 
related activities. The Senate amendment allows for schoolwide 
programs if they enhance culturally related activities.
      SR
      17. Using slightly different language, both the House 
bill and the Senate amendment have the same general criteria 
for the use of grant funds.
      LC
      18. Using slightly different language, both the House 
bill and the Senate amendment have similar specific 
requirements for the use of grant funds.
      LC
      19. The House bill refers to State academic content 
standards and State academic achievement standards. The Senate 
amendment refers to State content standards and State 
performance standards.
      LC--need to conform academic achievement standards
      20. The House bill references the Perkins Vocational and 
Technical Education Act of 1998. The Senate amendment 
references P.L. 103-239, and P.L. 88-120.
      SR
      21. The Senate amendment, but not the House bill, 
specifies that funds may be used to promote the incorporation 
of culturally responsive teaching and learning strategies.
      HR
      22. The Senate amendment, but not the House bill, 
specifies that funds may be used for activities that 
incorporate American Indian and Alaska Native specific 
curriculum content.
      HR
      23. The Senate amendment, but not the House bill, 
specifies that funds may be used to promote coordination and 
collaboration between tribal, Federal, and State public 
schools.
      SR
      24. Using slightly different language, both the House 
bill and the Senate amendment allow LEAs to use funds to 
support schoolwide programs.
      LC
      25. Using slightly different language, both the House 
bill and the Senate amendment limit the use of funds by a 
grantee for administrative purposes to five percent of the 
funds received.
      LC
      26. Using slightly different language, both the House 
bill and the Senate amendment provide for LEAs receiving 
formula grants under this Title to combine federal funds 
received to serve Indian students into a comprehensive program 
to serve such students.
      LC
      27. Using slightly different language, both the House 
bill and the Senate amendment require LEAs that want to 
participate to submit a plan to the Secretary.
      SR
      28. Using slightly different language, both the House 
bill and the Senate amendment require the Secretary to 
authorize the applicant to consolidate programs upon receipt of 
an acceptable plan.
      HR
      29. Using slightly different language, both the House 
bill and the Senate amendment set forth criteria for 
commingling of funds.
      LC
      30. Using slightly different language, both the House 
bill and the Senate amendment list the same requirements for an 
acceptable plan.
      LC
      31. The Senate amendment but not the House bill requires 
consultation with the House Committee on Resources and the 
Senate Committee on Indian Affairs.
      SR
      32. Using slightly different language, both the House 
bill and the Senate amendment require coordination among 
federal agencies, which provide funds effected under the LEA's 
plan.
      LC
      33. Using slightly different language, both the House 
bill and the Senate amendment set forth the responsibilities of 
federal agencies under this section, as well as criteria for 
determining the lead agency for the purposes of this section.
      SR
      34. Using slightly different language, both the House 
bill and the Senate amendment list information that the 
applicant is required to report to the Secretary.
      SR
      35. Using slightly different language, both the House 
bill and the Senate amendment prohibit reduction in funding 
received by applicants, authorize interagency fund transfers, 
set forth administrative requirements for participating LEAs, 
allow for simplified record keeping for participating LEAs, 
allow for the commingling of administrative funds, and allow 
the Secretary and the lead agency to safeguard federal funds 
pursuant to the Single Audit Act.
      LC--to check references to other acts
      36. Using slightly different Language, both the House 
bill and the Senate amendment require the Secretary of 
Education to report on obstacles to program integration to the 
relevant congressional committees. The House bill and the 
Senate amendment requires the reports to be made to the Senate 
Health, Education, Labor, and Pensions committee, and to the 
House Committee on Education and the Workforce. In addition, 
the Senate amendment requires reports to be made to the Senate 
Committee on Indian Affairs.
      HR
      37. Using slightly different language, both the House 
bill and the Senate amendment define the term ``Secretary'' for 
purposes of this section.
      SR
      38. Using slightly different language, both the House 
bill and the Senate amendment set forth information that must 
be included on student eligibility forms.
      HR
      39. Using slightly different language, both the House 
bill and the Senate amendment set forth the same criteria for 
the Secretary to conduct monitoring and evaluation reviews, 
compute grant awards for BIA funded schools, and establish the 
timing of child counts.
      LC
      40. Using slightly different language, both the House 
bill and the Senate amendment set forth the same criteria 
regarding notification of payments, payments taken into account 
by a State in determination of State aid, and maintenance of 
effort.
      LC
      41. The Senate amendment refers to ``the year'', while 
the House bill refers to the ``preceding year''.
      SR
      42. See note 41.
      SR
      43. Using slightly different language, both the House 
bill and the Senate amendment provide the same requirements for 
State review of applications.
      LC
      44. Both the House bill and the Senate amendment 
authorize special programs and projects to improve educational 
opportunities for Indian children. These activities are 
authorized under Chapter 2 in the House bill and Subpart 2 in 
the Senate amendment.
      LC
      45. Using slightly different language, both the House 
bill and the Senate amendment set forth the same purposes.
      LC
      46. Using slightly different language, both the House 
bill and the Senate amendment list the same eligible entities.
      HR
      47. Both the House bill and the Senate amendment 
authorize the same activities.
      HR with an amendment to strike ``secondary school'' and 
insert ``high school'' in (E).
      48. The House bill refers to career preparation programs, 
while the Senate amendment refers to school-to-work transition 
programs.
      SR
      49. Using slightly different language, both the House 
bill and the Senate amendment authorize grants for professional 
development. The Senate amendment refers to pre-service or in-
service training, while the House bill refers to professional 
development.
      SR
      50. Using slightly different language, both the House 
bill and the Senate amendment set forth the same grant and 
application requirements.
      LC
      51. Using different language, both the House bill and the 
Senate amendment require that material to be disseminated: (1) 
be adequately reviewed; (2) have demonstrated educational 
merit; and (3) has the ability to be replicated.
      HR
      52. The Senate amendment refers to scientifically based 
research, while the Senate amendment refers to research-based 
programs.
      HR with an amendment to insert ``where applicable'' after 
``research program'' in (iii).
      53. Using slightly different language, both the House 
bill and the Senate amendment limit the use of funds for 
administrative purposes to five percent of the funds received.
      LC
      54. Using slightly different language, both the House 
bill and the Senate amendment authorize grants for professional 
development.
      SR
      55. Both the House bill and the Senate amendment set 
forth the same purposes.
      SR
      56. Using different wording, both the House bill and the 
Senate amendment designate institutions of higher education, 
State and local educational agencies, and Indian tribes or 
organizations as eligible entities. The House bill specifies 
that Indian tribes or organizations are eligible in consortium 
with institutions of higher education. The Senate amendment 
defines ``eligible entity'' to mean a consortium of: (1) an SEA 
or LEA; (2) an institution of higher education (including an 
Indian institution of higher education); or (3) an Indian tribe 
or organization.
      SR with an amendment to insert ``a BIA funded school'' as 
new House (4).
      57. Using slightly different language, both the House 
bill and the Senate amendment authorize the Secretary to award 
grants to eligible entities.
      LC
      58. Using slightly different language, both the House 
bill and the Senate amendment authorize the same activities, 
set forth the same application requirements, place the same 
requirements on eligible entities and individuals trained under 
the program, and set forth the same reporting requirements.
      LC
      59. The Senate amendment, but not the House bill 
authorizes a specific program for in-service training for 
teachers of Indian children.
      HR with amendment to move to national activities and 
delete any findings or separate authorizations of 
appropriations.
      60. The Senate amendment, but not the House bill, 
maintains an authorization for fellowships for Indian students. 
This provision is currently unfunded.
      HR with an amendment to move to national activities and 
delete any findings or separate authorizations of 
appropriations.
      61. The Senate amendment, but not the House bill, 
maintains an authorization of a program for gifted and talented 
Indian students. This authorization is currently unfunded.
      HR with an amendment to move to national activities and 
delete any findings or separate authorizations of 
appropriations.
      62. The Senate amendment, but not the House bill, 
maintains an authorization of a program to provide grants to 
tribes for administrative planning and development. This 
authorization is currently unfunded.
      HR with an amendment to move to national activities and 
delete any findings or separate authorizations of 
appropriations.
      63. The Senate amendment, but not the House bill, 
maintains an authorization for a program related to adult 
education for Indians. This authorization is currently 
unfunded.
      HR with an amendment to move to national activities and 
delete any findings or separate authorizations of 
appropriations.
      64. Using slightly different language, both the House 
bill and the Senate amendment authorize the use of funds for 
research activities related to the education of Indian children 
and adults. The House bill authorizes these activities in 
Chapter 3. The Senate amendment places them in Subpart 4.
      LC
      65. The Senate amendment but not the House bill limits 
the amount of funds that can be used for administrative 
expenses to not more than 5 percent of the grant or contract.
      SR
      66. Both the House bill and the Senate amendment 
authorize the National Advisory Council in Indian Education 
(NACIE). The House bill does this in Chapter 4. The Senate 
amendment does so in Subpart 5.
      LC
      67. Using almost identical language, both the House bill 
and the Senate amendment set forth membership criteria and 
duties for the Council.
      LC
      68. Using different language, both the House bill and the 
Senate amendment provide for peer review of applications, 
preferences for certain Indian applicants, and minimum grant 
criteria.
      LC
      69. Both the House bill and the Senate amendment provide 
definitions and authorizations of appropriations. The House 
bill does so in Chapter 5. The Senate amendment does so in 
Subpart 6.
      LC
      70. Both the House bill and the Senate amendment provide 
identical definitions of ``adult'', ``free public education'', 
and ``Indian''.
      SR
      71. The House bill authorizes $100,000,000 million for 
Chapter 1 for FY 2002, and such sums for each of fiscal years 
2003 through 2006. The Senate amendment authorizes $93,300,000 
for FY 2002, and such sums for each of the six succeeding 
fiscal years.
      SR with an amendment to Strike $100,000,000 and insert 
$96,400,000.
      72. The House bill authorizes $25,000,000 for Chapters 2 
and 3 for FY 2002, and such sums for FY 2003 through 2006. The 
Senate amendment authorizes $20,000,000 for Subparts 2 through 
4 for FY 2002, and such sums for each of the six succeeding 
fiscal years.
      SR with an amendment to Strike $25,000,000 and insert 
$24,000,000.
      73. The House bill but not the Senate amendment includes 
a savings provision.
      SR
      74. The Senate amendment, but not the House bill, 
continues programs to supplement educational programs for 
Native Hawaiians.
      HR with an amendment accept Senate language on findings; 
Move Native Hawaiian Council language to allowable uses of 
funds; Insert ``including program co-location'' after 
``activities,'' in Sec. 7205 (a)(3)(I); and to strike section 
7205 (a)(3)(L) (construction).
      75. The Senate amendment, but not the House bill, 
authorizes $300,000 for FY 2002 and such sums as necessary for 
Native Hawaiian education councils.
      HR with an amendment to make Native Hawaiian education 
councils an authorized activity with funding set aside of 
$500,000 per year.
      76. The Senate amendment, but not the House bill, 
authorizes $35,000,000 for FY 2002, and such sums as necessary 
for the succeeding six fiscal years, for programs to supplement 
the education of Native Hawaiians.
      HR with an amendment--Strike ``$35,000,000'' so that it 
is ``such sums for FY 2002, and each of the succeeding six 
fiscal years'', and insert a provision such that $500,000 is 
reserved to fund Native Hawaiian education councils.
      77. Both the House bill and the Senate amendment 
authorize programs to supplement the education of Alaska 
Natives. The House bill authorizes these programs under Subpart 
2. The Senate amendment authorizes them under Part C.
      LC
      78. Both the House bill and the Senate amendment provide 
the same short title.
      LC
      79. Using slightly different language, both the House 
bill and the Senate amendment have the same findings.
      HR
      80. Using slightly different language, both the House 
bill and the Senate amendment have the same purposes.
      LC
      81. Both the House bill and the Senate amendment 
authorize the Secretary to make grants or enter into contracts.
      HR
      82. Both the House bill and the Senate amendment list 
permissible activities. The House bill includes the development 
of plans, the development of curricula and educational 
programs, professional development of educators, the 
development and operation of home instruction programs, family 
literacy services, the development and operation of enrichment 
programs in science and math, research and data collection, and 
other research and evaluation activities. In addition, the 
Senate amendment lists parenting education, cultural education 
programs, cultural exchange programs activities carried out 
through the Even Start program, other early learning and 
preschool programs, dropout prevention programs, an Alaska 
initiative for community engagement, career preparation 
activities, and operational support and construction funding as 
permissible activities.
      HR
      83. Using slightly different language, both the House 
bill and the Senate amendment limit the amount of grants that 
can be spent on administrative costs to five percent.
      LC
      84. The Senate amendment but not the House bill requires 
the Secretary to give priority to applications from Alaska 
Native regional nonprofit organizations or consortia that 
include Alaska Native nonprofit organizations when awarding 
grants for permissible activities listed under subsection 
(a)(2). The Senate amendment further exempts funds earmarked 
for certain permissible activities from this provision.
      HR
      85. The House bill authorizes the appropriation of 
$15,000,000 for FY 2002, and such sums as necessary for FY 2003 
through FY 2006 to carry out this part. The Senate amendment 
authorizes $35,000,000 million for FY 2002 and such sums as 
necessary for each of the six succeeding fiscal years to carry 
out this section (see note 80).
      HR with an amendment to strike ``$35,000,000'' and insert 
such sums as necessary.
      86. The Senate amendment but not the House bill directs 
the Secretary to make available $1 million annually for each of 
the following activities: (1) parenting education; (2) cultural 
education programs; and (3) cultural exchange programs. The 
Senate amendment further directs the Secretary to make 
available annually $2 million for each of the following 
activities: (1) dropout prevention programs; and (2) an Alaska 
Native Initiative for Community Engagement program.
      HR
      87. Using slightly different language, both the House 
bill and the Senate amendment provide administrative provisions 
including application requirements, requirements for 
consultation with representatives of the Alaska Native 
community, and coordination with local educational agencies.
      LC
      88. Using slightly different language, both the House 
bill and the Senate amendment provide the same definitions of 
``Alaska Native'', and ``Alaska Native Organization''.
      LC
      89. The House bill but not the Senate amendment includes 
a savings provision.
      SR
      90. The Senate amendment, but not the House bill, 
includes conforming amendments.
      LC
      91. The Senate amendment but not the House bill contains 
a new Part D, entitled ``Educational, Cultural, Apprenticeship 
and Exchange Programs for Alaska Natives, Native Hawaiians and 
Their Historical Whaling and Trading Partners in 
Massachusetts''.
      HR with an amendment to move to the Life Fund.
      92. The Senate amendment but not the House bill contains 
findings.
      HR with an amendment to move to the Life Fund.
      93. The Senate amendment but not the House bill 
establishes the purpose of the program.
      HR with an amendment to move to the Life Fund.
      94. The Senate amendment but not the House bill 
authorizes the Secretary to make grants or enter into 
contracts, and lists eligible entities.
      HR with an amendment to move to the Life Fund.
      95. The Senate amendment but not the House bill lists 
permissible activities.
      HR with an amendment to move to the Life Fund.
      96. The Senate amendment but not the House bill 
authorizes the appropriation of $10 million for FY 2002, and 
such sums as necessary for each of the 6 succeeding fiscal 
years.
      SR with an amendment for one allowable use under single 
authorization for Life Fund.
      97. The Senate amendment but not the House bill requires 
the Secretary to make available $2 million for the New Bedford 
Whaling Museum, $2 million for the Inupiat Heritage Center, $1 
million each for the Alaska Native Heritage Center, the Bishop 
Museum, and the Peabody--Essex Museum to carry out permissible 
activities under this part, and $1 million each for the Alaska 
Native Heritage Center, the Bishop Museum, and the Peabody--
Essex Museum for internship and apprenticeship programs.
      HR with an amendment to move to the Life Fund.
      98. The Senate amendment but not the House bill provides 
application requirements and requires coordination with Local 
Educational Agencies.
      HR with an amendment to move to the Life Fund.

                     Title III, Part B--BIA Indians

                         (New Title X, Part D)

      1. The Senate Amendment, but not the House bill includes 
a short Title for its amendments.
      HR
      2. The Senate amendment, but not the House bill, includes 
a reference to the Federal government's unique and continuing 
trust relationship with the Indian people.
      SR
      3. The House bill, but not the Senate Amendment refers to 
the responsibility for the operation of BIA schools as solely 
the Federal Governments.
      HR/SR
      4. Using similar language, both the House bill and the 
Senate amendment have a statement of policy. The Senate 
amendment, but not the House bill, references the basic 
elementary and secondary educational needs of Indian children.
      HR with an amendment to strike all of Senate (b) Policy 
and insert in its place the following language:
      ``It is the policy of the United States to fulfill the 
Federal Government's unique and continuing trust relationship 
with and responsibility to the Indian people for the education 
of Indian children and for the operation and financial support 
of the Bureau of Indian Affairs funded school system to work in 
full cooperation with tribes toward the goal of assuring that 
the programs of the Bureau of Indian Affairs funded school 
system are of the highest quality and provide for the basic 
elementary and secondary educational needs of Indian children, 
including meeting the unique educational and cultural needs of 
these children.''
      5. The Senate Amendment refers to accreditation while the 
House bill refers to accreditation standards.
      HR
      6. The Senate Amendment, but not the House bill, includes 
a declaration of purpose.
      HR with an amendment to strike all of Senate (B).
      7. The House bill, but not the Senate amendment, requires 
that the Secretary carry out studies and surveys to establish 
and revise standards through a contract with an Indian 
organization.
      HR
      8. The House bill, but not the Senate amendment, requires 
the Secretary to revise Bureau academic standards.
      HR
      9. The House bill, but not the Senate amendment requires 
the Secretary to provide alternative standards to ensure 
compliance with minimum accreditation standards for the State 
or region of a school.
      HR
      10. The House bill, but not the Senate amendment, allows 
tribal governing bodies to waive Bureau standards under certain 
circumstances.
      HR
      11. The House bill allows Bureau schools to meet 
standards or be accredited not later than the 2nd academic year 
after publication of the standards, while the Senate amendment 
requires accreditation 12 months after the date of enactment.
      HR with an amendment to strike ``12'' and insert ``24''.
      12. The House bill allows for accreditation by a tribal 
accrediting agency if the standards used by that agency are 
equal to, or exceed standards of the accreditor for the State 
or region in which the school is located. The Senate amendment 
allows for tribal accreditation if such accreditation is 
certified by a State or accepted by a regional accreditor. The 
Senate amendment further allows a tribal government to select 
the State accreditor if its reservation is located in more than 
one State.
      SR with an amendment to strike ``are equal . . . is 
located;'' in (A) and insert ``such accreditation is 
acknowledged by a generally recognized State certification or 
regional accrediting agency;''
      Insert Senate (iv) as a new House (D).
      Report language to read as follows:
      Section (i) concerning tribal accreditation clarifies the 
conferee's intent that accreditation standards developed by 
tribal accrediting bodies are recognized by State or regional 
accrediting agencies. It is the purpose of this section to have 
Bureau-funded schools develop standards that are equal to or 
exceed the accreditation standards of a State or regional 
accrediting agency, chosen by the school board in conjunction 
with the tribal governing body. The accreditation agency should 
recognize that tribal departments of education are more 
experienced in developing standards of accreditation for Indian 
schools and their children. These accreditation standards take 
into account the unique cultural barriers that exist for Indian 
children and the conditions needed for them to achieve their 
educational goals.
      13. The Senate amendment but not the House bill requires 
the Secretary of Interior, in conjunction with the Secretary of 
Education, to study and report on the feasibility of 
establishing a National Tribal Accrediting Agency. The report 
is to be made to the appropriate committees of Congress within 
12 months of the date of enactment.
      HR with an amendment to insert as new (B) the following 
language:
            ``(B) Feasibility study.--Not later than 12 months 
        after the date of enactment of the Native American 
        Education Improvement Act of 2001, the Secretary of the 
        Interior and the Secretary of Education shall, in 
        consultation with Indian tribes, Indian education 
        organizations, and accrediting agencies, develop and 
        submit to the appropriate Committees of Congress a 
        report on the desirability and feasibility of 
        establishing a tribal accreditation agency that would 
        serve to review and acknowledge the accreditation 
        standards for Bureau funded schools and that would 
        establish accreditation procedures to facilitate the 
        application, review of the standards and review 
        processes, and recognition of qualified and credible 
        tribal departments of education as accrediting bodies 
        serving tribal schools.''
      14. The House bill, but not the Senate amendment, refers 
to standards.
      HR
      15. The House bill provides that assistance may be given 
to contract or grant schools in implementing bureau standards, 
upon request. The Senate Amendment provides that assistance may 
be given to Bureau funded schools to obtain accreditation. Such 
assistance can be provided through a number of entities.
      HR
      16. The Senate amendment, but not the House bill, 
provides that Bureau standards shall apply while accreditation 
is being sought.
      HR
      17. The Senate Amendment, but not the House bill, 
provides that the Secretary issue a report on unaccredited 
Bureau funded schools 90 days after the end of each school 
year.
      HR with an amendment to insert ``the Committee on 
Education and the Workforce'' after ``the Committees on 
Appropriations,'' and to insert ``the HELP Committee'' before 
``of the Senate'' in (5).
      18. The Senate amendment, but not the House bill, 
provides schools with the opportunity to present evidence prior 
to being included in the report.
      HR
      19. The Senate amendment, but not the House bill requires 
schools included in the annual report to develop a school plan 
to obtain accreditation.
      HR
      20. The Senate amendment, but not the House bill, 
requires the Secretary to take corrective action against a 
Bureau school if they fail to obtain accreditation.
      HR with an amendment to strike all language and insert 
the following:
            ``(8) Corrective action.--
                    ``(A) Definition.--In this subsection, the 
                term `corrective action' means action that--
                            ``(i) substantially and directly 
                        responds to--
                                    ``(I) the failure of a 
                                school to achieve 
                                accreditation; and
                                    ``(II) any underlying 
                                staffing, curriculum, or other 
                                programmatic problem in the 
                                school that contributed to the 
                                lack of accreditation; and
                            ``(ii) is designed to increase 
                        substantially the likelihood that the 
                        school will be accredited.
                    ``(B) Corrective action inapplicable.--The 
                Secretary shall grant a waiver to any school 
                that--
                            (i) is identified in the report 
                        described in paragraph (5)(C); and s
                            (ii) fails to be accredited for 
                        reasons that are beyond the control of 
                        the school board, as determined by the 
                        Secretary. Reasons that are beyond the 
                        control of the school board include, 
                        but are not limited to, significant 
                        decline in financial resources, the 
                        poor condition of facilities, vehicles 
                        or other property, or a natural 
                        disaster. Such a waiver shall exempt 
                        such school from any or all of the 
                        requirements of this paragraph and 
                        paragraph (7), but such school shall be 
                        required to comply with the standards 
                        contained in part 36 of title 25, Code 
                        of Federal Register, as in effect on 
                        the date of enactment of the [Native 
                        American Education Improvement Act of 
                        2001].
                    ``(C) Duties of secretary.--After providing 
                assistance to a school under paragraph (3), the 
                Secretary shall--
                            ``(i) annually review the progress 
                        of the school under the applicable 
                        school plan, to determine whether the 
                        school is meeting, or making adequate 
                        progress towards, achieving the goals 
                        described in paragraph (7)(A)(v) with 
                        respect to reaccredidation or becoming 
                        a candidate for accreditation;
                            ``(ii) except as provided in 
                        subparagraph (B), continue to provide 
                        assistance while implementing the 
                        school's plan, and, if determined 
                        appropriate by the Secretary, take 
                        corrective action with respect to the 
                        school if it fails to be accredited at 
                        the end of the third year of the 
                        school's plan;
                            ``(iii) promptly notify the parents 
                        of children enrolled in the school of 
                        the option to transfer their child to 
                        another public or Bureau funded school;
                            ``(iv) provide all students 
                        enrolled in the school with the option 
                        to transfer to another public or Bureau 
                        funded school, including a public 
                        charter school, that is accredited; and
                            ``(v) provide, or pay for the 
                        provision of, transportation for each 
                        student described in clause (iv) to the 
                        school described in clause (iv) to 
                        which the student elects to be 
                        transferred to the extent funds are 
                        available as determined by the tribal 
                        governing body.
                    ``(D) Failure of school plan.--With respect 
                to a Bureau operated school that fails to be 
                accredited at the end of the 3-year period 
                during which the school's plan is in effect 
                under paragraph (7), the Secretary may take 1 
                or more of the following corrective actions:
                            ``(i) Institute and fully implement 
                        actions suggested by the accrediting 
                        agency.
                            ``(ii) Consult with the tribe 
                        involved to determine the causes for 
                        the lack of accreditation including 
                        potential staffing and administrative 
                        changes that are or may be necessary.
                            ``(iii) Set aside a certain amount 
                        of funds that may only be used by the 
                        school to obtain accreditation.
                            ``(iv)(I) Provide the tribe with a 
                        60-day period in which to determine 
                        whether the tribe desires to operate 
                        the school as a contract or grant 
                        school, before meeting the 
                        accreditation requirements in section 
                        5207 of the Tribally Controlled Schools 
                        Act, at the beginning of the next 
                        school year following the determination 
                        to take corrective action. If the tribe 
                        agrees to operate the school as a 
                        contract or grant school, the tribe 
                        shall prepare a plan, pursuant to 
                        paragraph (7), for approval by the 
                        Secretary in accordance with paragraph 
                        (7), to achieve accreditation.
                            ``(II) If the tribe declines to 
                        assume control of the school, the 
                        Secretary, in consultation with the 
                        tribe, may contract with an outside 
                        entity, consistent with applicable law, 
                        or appoint a receiver or trustee to 
                        operate and administer the affairs of 
                        the school until the school is 
                        accredited. The outside entity, 
                        receiver or trustee shall prepare a 
                        plan, pursuant to paragraph (7), for 
                        approval by the Secretary in accordance 
                        with paragraph (7).
                            ``(III) Upon accreditation of the 
                        school, the Secretary shall allow the 
                        tribe to continue to operate the school 
                        as a grant or contract school, or if 
                        being controlled by an outside entity, 
                        provide the tribe with the option to 
                        assume operation of the school as a 
                        contract school, in accordance with the 
                        Indian Self Determination Act, or as a 
                        grant school in accordance with the 
                        Tribally Controlled Schools Act, at the 
                        beginning of the school year following 
                        the school year in which the school 
                        obtains accreditation. If the tribe 
                        declines, the Secretary may allow the 
                        outside entity, receiver or trustee to 
                        continue the operation of the school or 
                        reassume control of the school.
                    ``(E) Failure of school plan of contract or 
                grant school.
                            ``(i) Corrective action.--With 
                        respect to a contract or grant school 
                        that fails to be accredited at the end 
                        of the 3-year period during which the 
                        school's plan is in effect under 
                        paragraph (7), the Secretary may take 1 
                        or more of the corrective actions 
                        described in (D)(i) through (iii). The 
                        Secretary shall implement such 
                        corrective action for at least 1 year 
                        prior to taking any action described in 
                        clause (ii).
                            ``(ii) Outside entity.--If the 
                        corrective action described in clause 
                        (i) does not result in accreditation of 
                        the school, the Secretary, in 
                        conjunction with the tribal governing 
                        body, may contract with an outside 
                        entity to operate the school in order 
                        to achieve accreditation of the school 
                        within 2 school years. Prior to any 
                        such contract, the Secretary shall 
                        develop a proposal for such operation 
                        which shall include, at a minimum, the 
                        following elements:
                                    ``(I) the identification of 
                                1 or more outside entities 
                                which has demonstrated to the 
                                Secretary its ability to 
                                develop a satisfactory plan for 
                                achieving accreditation, and 
                                which is willing and available 
                                to undertake such plan; and
                                    ``(II) a plan for 
                                implementing operation of the 
                                school by such outside entity, 
                                including the methodology for 
                                oversight and evaluation of the 
                                performance of such outside 
                                entity by the Secretary and the 
                                tribe.
                            ``(iii) Proposal amendments.--The 
                        tribal governing body shall have 60 
                        days to amend the proposal described in 
                        clause (ii), including identifying 
                        another outside entity to operate the 
                        school. The Secretary shall reach 
                        agreement with the tribal governing 
                        body on the proposal and any such 
                        amendments to such proposal within 30 
                        days of the expiration of the 60 day 
                        period described in the preceding 
                        sentence. After the approval of such 
                        proposal and any such amendments, the 
                        Secretary, with continuing consultation 
                        with such tribal governing body, shall 
                        implement such proposal.
                            ``(iv) Accreditation.--Upon 
                        accreditation of the school, the tribe 
                        shall have the option to assume the 
                        operation and administration of the 
                        school as a contract school after 
                        complying with the Indian Self 
                        Determination Act, or as a grant 
                        school, after complying with the 
                        Tribally Controlled Schools Act, at the 
                        beginning of the school year following 
                        the year in which the school obtains 
                        accreditation.
                            ``(v) Retrocede.--Nothing in this 
                        subparagraph shall limit a tribe's 
                        right to retrocede operation of a 
                        school to the Secretary pursuant to 
                        Sec. 105(e) of the Indian Self-
                        Determination Act (with respect to a 
                        contract school) or Sec. 5204(f) of the 
                        Tribally Controlled Schools Act (with 
                        respect to a grant school).
                            (vi) Consistent.--The provisions of 
                        this subparagraph shall be construed 
                        consistent with the provisions of the 
                        Tribally Controlled Schools Act and the 
                        Indian Self Determination Act as in 
                        effect on the date of enactment of the 
                        Native American Education Improvement 
                        Act of 2001, and shall not be construed 
                        as expanding the authority of the 
                        Secretary under any other law.
                    ``(F) Hearing.--With respect to a school 
                that is operated pursuant to a grant, or a 
                school that is operated under a contract under 
                the Indian Self Determination Act, prior to 
                implementing any corrective action under this 
                paragraph, the Secretary shall provide notice 
                and an opportunity for a hearing to the 
                affected school pursuant to section 5207 of the 
                Tribally Controlled Schools Act.''
      Report Language:
      It is not the intent of the Conferees to broaden the 
authority of the Secretary of the Interior provided under the 
Indian Self Determination Act. However, nothing is intended to 
prevent this Act from being implemented as set forth in the 
Conference report. It is also the intent of this Act that prior 
to revoking an eligibility of determination and ceasing funding 
of a school, the Secretary shall exhaust all remedies stated in 
the Act and take any actions necessary to keep the school 
operational. The Conferees intend that the Secretary work with 
the affected tribe, consistent with the Federal policies of 
Indian self-determination, including, if necessary, temporarily 
assuming the operation and administration of a school that 
fails to become accredited for reasons that are not beyond the 
control of the school until the school becomes accredited and 
to eliminate impediments to achieving accreditation, including 
addressing underlying staffing, curriculum, or other 
programmatic problems in the school.
      Section 1121(b)(8)(E) authorizes the Secretary to 
contract with an outside entity in cases where a contract or 
grant school has not achieved accreditation after the 
implementation of a school plan and corrective actions. While 
this section does not require the Secretary to contract with an 
outside entity, it is the intention of the Conferees to provide 
the Secretary with the discretion to contract with an outside 
entity in a case where both the school plan and any corrective 
action taken have not caused the school to gain accreditation. 
The Conferees do not intend to require the Secretary to 
contract with an outside entity if accreditation of the school 
can be gained through application of corrective actions.
      With respect to public school choice:
      The Conferees intend tribal governing bodies or school 
boards to establish reasonable parameters on the distance the 
school to which the child wishes to transfer is from the 
originating school. The Conferees do not intend this public 
school choice provision to provide an option to transfer to any 
school irrespective of the distance or costs associated with 
travel to such school.
      21. The Senate amendment, but not the House bill, states 
that nothing in this section alters or otherwise affects the 
rights, remedies, and procedures afforded to school employees.
      HR
      22. The House bill, but not the Senate amendment, 
requires the Secretary to establish consistent reporting 
standards for fiscal control and fund accounting.
      SR
      23. Using similar language, both the House bill and the 
Senate amendment require the Secretary to implement Bureau 
academic standards and accreditation standards.
      LC
      24. Using similar language, both the House bill and the 
Senate amendments contain certain prohibitions related to the 
closure of BIA funded schools.
      HR
      25. Using similar language, both the House bill and the 
Senate amendment require the Secretary to promulgate 
regulations for the closure, transfer, consolidation, or 
substantial curtailment of BIA schools.
      LC
      26. Using similar language, both the House bill and the 
Senate amendment require notification for the reason for 
closure. The House bill requires notification to the local 
school board of a closure 6-months prior to the end of the 
school year.
      LC
      27. Using similar language, both the House bill and the 
Senate amendment require reports whenever a Bureau funded 
school is closed, transferred to another authority, or its 
program is actively curtailed.
      LC
      28. Both the House bill and the Senate amendment prohibit 
actions to close, transfer authority over, consolidate or 
substantially curtail Bureau funded schools until the end of 
the full first academic year after a negative report is made. 
The House bill refers to irrevocable action while the Senate 
amendment refers to irreversible action.
      SR
      29. Using similar language, both the House bill but and 
the Senate amendment allow the closure of a Bureau funded 
school or school program operated after January 1, 1999, or a 
school board operated under a grant with the approval of a 
tribal governing body.
      LC
      30. Using similar language, both the House bill and the 
Senate amendment establish the factors to be used in reviewing 
applications for schools that are not Bureau funded or for the 
expansion of a Bureau funded school.
      LC
      31. Both the House bill and the Senate amendment require 
the Secretary to make a determination with respect to an 
application within 180 after submission, and treats the 
application as approved if the Secretary takes no negative 
action within that time.
      LC
      32. Using similar language, both the House bill and the 
Senate amendment sets forth requirements for applications.
      LC
      33. Using similar language, both the House bill and the 
Senate amendment set forth requirements on the Secretary for 
disapproval of applications. If an application is disapproved, 
the Secretary must state objections in writing, provide 
assistance to the applicant to overcome the objections, and 
provide the applicant with a hearing.
      HR
      34. Using similar language, both the House bill and the 
Senate amendment set forth timeframes for successful 
applications to go into effect.
      LC
      35. The House bill but not the Senate amendment requires 
maintenance on privately funded expansions to be paid for with 
non-Bureau funds.
      HR/SR to insert the following language for (6):
            ``Statutory Administration.--Nothing in this 
        section or any other provision of law, shall be 
        construed to preclude the expansion of grades and 
        related facilities at a Bureau funded school, if such 
        expansion is paid for with non-Bureau funds. Subject to 
        the availability of appropriated funds the Secretary is 
        authorized to provide the necessary funds needed to 
        supplement the cost of operations and maintenance of 
        such expansion.''
      36. The Senate amendment but not the House bill requires 
funds provided to be apportioned and retained at the schools.
      HR
      37. Using similar language, both the House bill and the 
Senate amendment allow all federal funds received for 
educational or related services to be used for schoolwide 
projects.
      LC
      38. Using different language, the House bill and the 
Senate amendment require the Comptroller General, in 
consultation with Indian tribes and school boards, to study and 
report on the adequacy of funding and formulas used for the 
funding of Bureau funded schools.
      SR with amendment to strike the first paragraph of the 
House language and insert the following in its place:
            ``(1) Study.--The Comptroller General of the United 
        States shall conduct a study to determine the adequacy 
        of funding, and formulas used by the Bureau to 
        determine funding, for programs operated by Bureau 
        funded schools, taking into account unique 
        circumstances applicable to Bureau funded schools. The 
        study shall analyze existing information gathered and 
        contained in germane studies that have been conducted 
        or are currently being conducted in regards to Bureau 
        funded schools.''
      39. Both the House bill and the Senate amendment require 
the Secretary to revise standards for home-living situations. 
The House bill, but not the Senate amendment, requires 
consultation. In addition, the House bill requires that such 
criteria serve as minimum standards.
      LC
      40. Using identical language, both the House bill and the 
Senate amendment require the Secretary to implement these 
standards immediately upon their issuance.
      LC
      41. Using different language, both the House bill and the 
Senate amendment require the Secretary, at the time of each 
budget submission, to submit a plan to bring all Bureau funded 
schools providing home-living situations into compliance with 
the home-living standards developed under this section. Both 
the House bill and the Senate amendment provide for the same 
information to be reported.
      SR
      LC--consistent throughout part (no budget reference).
      42. The House bill allows for the waiver of home-living 
standards in the same manner as a tribal governing body may 
waive accreditation standards. The Senate amendment allows for 
the waiver of home-living standards under certain criteria.
      HR
      43. Using similar language, both the House bill and the 
Senate amendment prohibit the Secretary from closing Bureau 
funded schools for failure to meet home-living standards. The 
House bill references schools in operation prior to January 1, 
1987, while the Senate amendment references schools in 
operation prior to July 1, 1999.
      HR
      44. The House bill, but not the Senate amendment codifies 
regulations under Part 32 of Title 25 of the Code of Federal 
Regulations (CFR). The House bill further defines regulations.
      SR on (a); LC on (b) for placement.
      45. Using slightly different language, both the House 
bill and the Senate amendment require the Secretary to 
establish geographical attendance area for Bureau schools, and 
allows tribal governing bodies to establish such boundaries in 
the event that more than one tribe occupies a geographical 
area.
      LC
      46. Using different language, both the House bill and the 
Senate amendment prohibit the Secretary from revising 
attendance without the consent of tribal governing bodies 
unless certain criteria are met. The House bill references July 
1, 2001. The Senate bill references July 1, 1999. Both the 
House bill and the Senate amendment allow tribal governing 
bodies to petition the Secretary for boundary changes.
      SR
      47. Using slightly different language, both the House 
bill and the Senate amendment allow parents the choice of 
Bureau funded schools, regardless of geographic boundaries, if 
the tribal governing body approves a resolution allowing such 
choice.
      LC
      48. Using slightly different language, both the House 
bill and the Senate amendment require the Secretary to provide 
funding for eligible Indian child to attend a Bureau funded 
school regardless of whether they reside within the 
geographical attendance area. In addition, both deny funding 
for transportation of such children unless authorized by the 
tribal governing body.
      LC
      49. Using slightly different language, both the House 
bill and the Senate amendment require that the geographical 
attendance area be co-terminous with the boundaries of the 
reservation, in the event that a single school serves a 
reservation.
      LC
      50. Using different language, both the House bill and the 
Senate amendment require schools with home-living situations to 
accommodate students requiring special emphasis programs, 
regardless of geographic boundaries, and requires coordination 
among interested parties.
      LC
      51. The Senate amendment, but not the House bill, 
requires the General Accounting Office (GAO) to conduct a study 
of the physical needs of facilities at Bureau funded schools. 
This study makes comparisons with school funded by the 
Department of Defense, and must be submitted to the relevant 
committees of Congress within two years of the date of 
enactment.
      HR with an amendment to insert ``accurate,'' before 
``relevant'' in (2)(B); insert ``and the HELP Committee'' 
before ``of the Senate'' in (4); also in (4), end the sentence 
after ``Secretary'' and strike ``who, in turn'' and insert 
``The Secretary''.
      52. The Senate amendment but not the House bill requires 
the Secretary to establish a negotiated rule making committee 
to compile a catalog of the condition of Bureau funded schools 
and a school construction and replacement report. These reports 
must be submitted to the relevant Congressional committees and 
other entities not later than 24 months after establishment of 
the negotiated rulemaking committee.
      HR with an amendment on placement.
      LC--place in over all negotiators provisions.
      53. The Senate amendment but not the House bill requires 
the Secretary to develop a facilities information systems 
support database to maintain and update information contained 
in the facilities reports. The system is to be updated every 3 
years, monitored by the GAO, and the information is to be made 
available to Bureau funded schools and other interested 
parties, and to Congress.
      HR
      54. Using slightly different language, both the House 
bill and the Senate amendment require the Secretary to bring 
Bureau funded school facilities into compliance with health and 
safety codes. The House bill references the ``No Child Left 
Behind Act of 2001'', while the Senate amendment references the 
``Native American Education Improvement Act of 2001''.
      LC
      55. Using almost identical language, both the House bill 
and the Senate amendment require the Secretary to submit a plan 
to bring all Bureau funded education facilities into compliance 
with health and safety standards. Such plan must be submitted 
to the appropriate committees of Congress at the time of the 
annual budget request.
      LC
      56. Using similar language, both the House bill and the 
Senate amendment require the Secretary to establish and 
publicly report the system used to establish priorities for the 
replacement and construction of Bureau funded schools. Both the 
House bill and the Senate amendment further require the 
establishment of a long term plan for construction and 
replacement of Bureau schools.
      LC
      57. Using similar language, both the House bill and the 
Senate amendment allow for the closure or consolidation of 
Bureau funded schools in the event of conditions that threaten 
health and safety. In addition, the Senate amendment requires 
that the Bureau health and safety officer and an individual 
designated by the Tribe determine that such conditions exist.
      HR with an amendment to strike ``and'' and insert ``or'' 
in (A);
      Insert a new (iv): ``be designated at the beginning of 
the school year.'' in (B).
      58. Both the House bill and the Senate amendment require 
inspection of the facility by two individuals to determine if a 
health or safety hazard requires a facilities closure. The 
House bill requires the Bureau officer to be accompanied by an 
appropriate tribal, county, municipal, or State health or 
safety officer. The Senate amendment requires an individual 
designated by the tribe. The House bill further requires the 
inspection to occur within 30 days after the finding of the 
hazard. The House bill prohibits further negative action unless 
both inspectors concur that a health or safety threat exists. 
The Senate amendment provides for different action in the case 
of non-concurrence.
      HR with an amendment to strike ``In'' and insert 
``After'' before ``making''; and insert ``Such inspection shall 
be completed as soon as possible but in no case later than 20 
days after the date on which the action described in paragraph 
(1) is taken.'' as the last sentence in (C).
      59. The Senate amendment, but not the House bill, require 
notification of the tribal governing body in the case that the 
two inspectors do not concur (see note 56).
      HR
      60. The Senate amendment but not the House bill requires 
the tribal governing body to make the determination regarding 
closure or curtailment in the case that 2 health and safety 
inspectors do not concur (see note 58).
      HR
      61. The House bill requires that consolidation or 
curtailment immediately halt, or that the facility be reopened 
if the Bureau health and safety inspector does not find 
conditions present an immediate health or safety hazard. The 
Senate amendment requires that if the inspectors agree that a 
health or safety condition exists, or if the tribal governing 
body makes such a determination, that the facility shall be 
closed immediately.
      HR with an amendment to insert House (B) to end of Senate 
(F) as new (1).
      62. Both the House bill and the Senate amendment require 
that in the event of a closure or curtailment that will exceed 
1 year, the Secretary shall issue a report to Congress. The 
House bill requires the report within 6 months, while the 
Senate amendment requires the report within 3 months. The 
Senate amendment also requires the report to go to other 
interested parties, requires more reporting elements, and 
outline steps that the effected school, designated school 
board, or tribal governing body may take to continue its 
program during the closure.
      HR
      63. The Senate amendment, but not the House bill, 
requires that all funds allocated for operations or maintenance 
be distributed under a formula, and prohibits these funds from 
being used for administrative purposes by the Bureau.
      HR
      64. Using different language, both the House bill and the 
Senate amendment prohibit the Secretary from withholding funds 
for maintenance, facilities or roads without the consent of the 
school.
      LC
      65. Using slightly different language both the House bill 
and the Senate amendment prohibit any reduction in federal 
facilities funding due to the receipt of facilities funding 
from a State or other source.
      LC
      66. Using slightly separate language, both the House bill 
and the Senate amendment require the Secretary to vest in the 
Assistant Secretary for Indian Affairs all functions with 
respect to the formulation and establishment of policy and 
procedure to carry out Indian education programs.
      LC
      67. Using slightly different language, both the House 
bill and the Senate amendment require the transfer of all 
personnel directly and substantially involved in the provision 
of Indian education programs to the Office of Indian Education 
Programs. The transfer is to occur within 6 months of the date 
of enactment, and is to be overseen by the Assistant Secretary 
for Indian Affairs.
      HR
      68. The Senate amendment but not the House bill subjects 
all functions related to education that are located at the Area 
or Agency level and carried out by an education line-officer to 
contracting under the Indian Self-Determination and Education 
Assistance Act, unless the Secretary determines the function to 
be inherently a federal function.
      HR with an amendment to strike ``section 1139(9)'' and 
insert ``section 1139(11).
      69. Both the House bill and the Senate amendment set 
forth the same responsibilities for personnel under the 
direction of the Office of Indian Education Programs.
      LC
      70. Using slightly different language, both the House 
bill and the Senate amendment require an annual plan for the 
construction, improvement, operation and maintenance of 
facilities to be submitted annually with the budget.
      LC
      71. Using similar language, both the House bill and the 
Senate amendment require the Assistant Secretary to establish 
procedures for the uniform upkeep of Bureau funded education 
facilities. The Senate amendment further requires the Assistant 
Secretary to hold a series of meetings to receive comment.
      LC
      72. Using similar language, both the House bill and the 
Senate amendment set forth criteria for the implementation of 
maintenance.
      LC
      73. Using identical language, both the House bill and the 
Senate amendment require the implementation of this provision 
as soon as practicable after the date of enactment.
      LC
      74. Using similar language, both the House bill and the 
Senate amendment require the Director to develop mechanisms and 
guidelines for the acceptance and use of gifts and bequests to 
benefit particular schools or education programs. The Senate 
Amendment exempts gifts below $5000 from these guidelines.
      HR
      75. Using similar language, both the House bill and the 
Senate amendment clarify the use of the term function for the 
purposes of this section.
      LC
      76. Using similar language, both the House bill and the 
Senate amendment require the Secretary to establish a formula 
for determining the minimum annual funding required to sustain 
each Bureau funded school. The House bill and the Senate 
amendment require the Secretary to consider the same criteria, 
except that the Senate amendment adds funding to comply with 
accreditation standards to the list.
      LC
      77. Using similar language, both the House bill and the 
Senate amendment require the Secretary to revise the funding 
formula to take into account revisions in academic and 
accreditation standards.
      HR
      78. The House bill and Senate Amendment allow the 
Secretary to consider other factors, but the Senate Amendment 
includes the GAO study and comparing BIA schools to DOD 
schools.
      SR
      79. Using similar language, both the House bill and the 
Senate amendment require a revision of the formula established 
in this subsection to reflect the revision of standards.
      SR
      80. Both the House bill and the Senate amendment require 
the pro rata distribution of general local operational funds to 
Bureau funded schools.
      LC
      81. Using similar language, both the House bill and the 
Senate amendment establish the same formula for the 
distribution of Bureau funds.
      SR
      82. Both the House bill and the Senate amendment allow 
school boards to reserve funds for certain purposes. The Senate 
amendment, but not the House bill requires agency school boards 
to provide training for new school board members and 
recommends, but doesn't require training for tribal governing 
bodies that operate as school boards.
      HR
      83. Using similar language, both the House bill and the 
Senate amendment provide for the reservation of funds for 
emergencies.
      LC
      84. Using similar language, both the House bill and the 
Senate amendment provide for the distribution of supplemental 
appropriations.
      LC
      85. Using similar language, both the House bill and the 
Senate amendment define ``eligible Indian student''. The Senate 
amendment, but not the House bill, defines an eligible Indian 
student as a student who is enrolled in a BIA funded school.
      HR
      86. Using similar language, both the House bill and the 
Senate amendment set forth criteria under which a Bureau school 
can charge tuition, and circumstances under which a non-Indian 
student can attend a Bureau school.
      LC
      87. Using almost identical language, both the House bill 
and the Senate amendment allow not more than 15 percent of 
funding under this section to remain available without fiscal 
year limitation.
      LC
      88. Using similar language, both the House bill and the 
Senate amendment provide funding for students at the Richfield 
Dormitory. The Senate amendment prohibits the payment of 
administrative costs associated with the instruction of these 
students.
      HR
      89. Using similar language, both the House bill and the 
Senate amendment provide a formula for the payment of 
administrative cost grants for both direct and indirect costs. 
The House bill, but not the Senate amendment, subjects the 
grants to the availability of appropriated funds.
      SR
      90. Using different placement, both the House bill and 
the Senate amendment contain specific criteria for the payment 
of administrative cost grants (see note 91).
      LC
      91. Using different placement, both the House bill and 
the Senate amendment contain specific criteria for the payment 
of administrative cost grants (see note 90).
      LC
      92. Using similar language, both the House bill and the 
Senate amendment provide for no reduction in amounts received 
by grant or contract schools, and provide for a determination 
of the grant amount.
      LC
      93. The Senate amendment, but not the House bill, 
provides that funding shall be ratably reduced in the event of 
insufficient appropriations. The House bill has a similar 
provision under authorization of appropriations (see note 98).
      LC
      94. Using similar language, both the House bill and the 
Senate amendment provide an administrative cost percentage 
rate.
      LC
      95. Using similar language, both the House bill and the 
Senate amendment have provisions relating to the use and 
treatment of funds.
      LC
      96. The Senate Amendment references section 106 of 
ISDEAA, while the House bill references section 105 of ISDEAA.
      HR
      97. The House bill, but not the Senate amendment, 
requires the director to conduct a study to ensure that 
administrative cost grants will be based on criteria that 
ensure adequate but not excessive funding.
      SR
      98. Both the House bill and the Senate amendment 
authorize such sums as are necessary for the payment of 
administrative cost grants under this section. In addition, the 
House bill provides for the ratable reduction of funds in the 
event appropriations are insufficient. The Senate has a similar 
provision earlier in the section (see note 93).
      LC
      99. Using different language, both the House bill and the 
Senate amendment apply the provisions of this section 
(administrative cost grants) to schools receiving assistance 
under the Tribally Controlled Schools Act of 1988.
      LC
      100. The Senate amendment, but not the House bill, 
requires the Secretary to request full funding for 
administrative cost grants in budget submissions on an annual 
basis beginning with the President's budget request for fiscal 
year 2002.
      HR with an amendment to insert ``at the discretion of the 
Secretary,'' before ``the Secretary shall submit''.
      101. Using similar language, both the House bill and the 
Senate amendment require the Assistant Secretary to establish 
within the Office of Indian Education Programs a Division of 
Budget Analysis. The Division is to report on projected amounts 
necessary to provide educational programs in Bureau funded 
schools.
      LC
      102. Using similar language, both the House bill and the 
Senate amendment establish the timing of the availability of 
Bureau education funds to schools.
      HR
      103. The House bill requires the Secretary to publish the 
allotment of 85 percent of allocated funds for schools not 
later than July 1 of each fiscal year. The Senate amendment 
requires the Secretary to publish the allotments of 80 percent 
of such funds.
      HR
      104. The House bill requires the Secretary to publish the 
allotment of the remaining 15 percent of such funds, adjusted 
to reflect actual student attendance not later than September 
30. The Senate amendment includes a similar provision, 
requiring the publication of the remaining 20 percent of funds, 
and sets forth a timeline for the return of over awards.
      HR
      105. Using similar language, both the House bill and the 
Senate amendment allow the supervisor of a Bureau funded school 
to expend an aggregate amount of not more than $50,000 per year 
to acquire materials, supplies, equipment, services, operation, 
and maintenance without competitive bidding, and sets forth 
criteria under which this authority may be exercised.
      HR with and amendment to insert ``operated'' after 
``Bureau'' in paragraph (3)(A).
      106. The House bill, but not the Senate amendment, sets 
forth procedures in the event of a sequestration of funds.
      SR
      LC to update references.
      107. Using similar language, both the House bill and the 
Senate amendment require Bureau operated schools to develop a 
financial plan and expend federal funds in accordance with that 
plan. The House bill refers to all Bureau operated schools, 
which the Senate amendment refers to each Bureau school which 
receives an allotment under section 1126.
      LC
      108. The Senate amendment, but not the House bill 
requires financial plans to comply with all applicable Federal 
and tribal laws.
      HR
      109. The House bill, but not the Senate amendment, 
prohibits funds received for self-determination grants under 
the Indian Self-Determination and Education Assistance Act from 
being used for technical education and training in the field of 
education by the Bureau, unless expended under a plan agreed to 
by the tribe or tribes affected.
      HR
      110. Using different language, both the House bill and 
the Senate amendment allow funds to be expended for tribal 
divisions of education and development of tribal codes of 
education. The House bill references section 104 of the ISDEAA 
while the Senate amendment references section 103 of such Act.
      HR
      111. Using similar language, both the House bill and the 
Senate amendment allow the Secretary to supply technical 
assistance and training at the request of a local school board.
      LC
      112. Using similar language, both the House bill and the 
Senate amendment provide for summer programs of instruction and 
set forth criteria under which they may be provided.
      LC
      113. Using similar language, both the House bill and the 
Senate amendment allow for cooperative agreements between 
Bureau funded schools and local public school districts, and 
set forth criteria under which they may be entered into.
      HR
      114. Using identical language, both the House bill and 
the Senate amendment allow a student to keep the product or 
result of a project in which the student participated and sets 
forth criteria under which this may occur.
      LC
      115. Using different language, both the House bill and 
the Senate amendment exempt funds received by Bureau funded 
schools under this part from being considered federal funds if 
used to meet matching funds requirements of other federal 
programs. In addition, the Senate amendment exempts Bureau 
funded schools from such requirements, and prohibits the entity 
administering the program from considering the exemption when 
awarding such grants.
      HR with an amendment to strike paragraph (2).
      116. Using similar language, both the House bill and the 
Senate amendment set forth a federal policy of facilitating 
Indian control in all affairs relating to Indian education, 
requires consultation with tribes, and sets forth requirements 
for such consultation.
      HR
      117. Using similar language, both the House bill and the 
Senate amendment set forth requirements for the hiring and 
employment of Indian education personnel.
      LC
      118. The House bill, but not the Senate amendment, 
requires that a list of qualified and interviewed applicants be 
maintained in the Office of Indian Education Programs of 
applicants that have applied at the national level and that are 
interested in working anywhere within the United States.
      HR
      119. The House bill requires that before an individual 
may be employed in an education position in the Office of the 
Director, the national boards representing all Bureau schools 
must be consulted. The Senate amendment requires that all 
employment decisions be in compliance with applicable federal, 
State, and tribal laws.
      HR
      120. Using different language, both the House bill and 
the Senate amendment require that applicants at the local level 
state whether they have applied at the national level, and 
allows for discipline or discharge in the event of a false 
statement.
      LC
      121. The Senate amendment but not the House bill sets 
forth procedures for the appeal of employment decisions.
      HR
      122. Using similar language, both the House bill and the 
Senate amendment set forth procedures in the event that the 
adoption of new rates of pay lead to increases.
      LC
      123. The House bill but not the Senate amendment sets 
forth procedures for determination of pay rates based on merit 
and advancement, and preclude such adjustments from effecting 
certain individuals employed on October 1, 1979.
      LC on placement.
      124. Both the House bill and the Senate amendment allow 
the Secretary to pay a post-differential rate not to exceed 25 
percent if warranted by conditions of environment or work, and 
set forth provisions under which post-differential pay may be 
granted.
      LC
      125. Using similar language, both the House bill and the 
Senate amendment sets forth provisions for the supervisor of a 
school to grant differential pay.
      HR
      126. Using similar language, both the House bill and the 
Senate amendment provide for the liquidation of remaining leave 
upon termination and the transfer of sick leave upon transfer, 
promotion, or reemployment.
      LC
      127. Using similar language, both the House bill and the 
Senate amendment provide that an educator that voluntarily 
terminates employment before the expiration of a contract is 
ineligible for reemployment in another post prior to the 
expiration of the term of the contract.
      LC
      128. Using similar language, both the House bill and the 
Senate amendment set forth terms and conditions for dual 
compensation of educators, the acceptance of voluntary 
services, proration of pay, lump sum payments of salary, the 
payment of stipends, and the applicability of this section to 
individual employees based on employment status as of October 
31, 1979.
      LC
      129. The House bill provides for definitions. The Senate 
amendment provides definitions using different placement.
      SR
      LC on placement
      130. The Senate amendment, but not the House bill puts 
certain restrictions on furloughs without consent, and provides 
for stipends for instructors that become certified by the 
National Board on Professional Teaching Standards.
      HR
      LC to conform (r) with resolution of note 294 in Title 
II.
      131. Using slightly different language, both the House 
bill and the Senate amendment require the Secretary to 
establish a computerized information system within the Office 
of Indian Education Programs. The House bill requires its 
establishment not later than July 1, 2003, while the Senate 
amendment requires establishment not later than 12 months from 
the date of enactment. Both require maintenance of the same 
information.
      HR
      132. The House bill requires implementation in Bureau 
field offices and Bureau funded schools not later than July 1, 
2004, while the Senate amendment requires such implementation 
not later than July 1, 2003.
      HR
      133. The House bill but not the Senate amendment requires 
the Secretary to cause various divisions of the Bureau to 
formulate uniform procedures and practices with respect to 
education functions and to report them to Congress.
      HR
      134. Using almost identical language, both the House bill 
and the Senate amendment requires the Secretary to implement a 
policy for the recruitment of Indian educators.
      LC
      135. Using almost identical language, both the House bill 
and the Senate amendment require the Secretary to report on the 
state of education within the Bureau. The House requires this 
report on a biennial basis, while the Senate amendment requires 
an annual report.
      HR
      136. Using different language, both the House bill and 
the Senate amendment require plans required under this Act to 
be submitted to Congress with the budget request. The House 
bill also requires the submission of information on funds 
provided to previously private schools and the needs and costs 
of maintenance for Tribally Controlled Community Colleges.
      HR
      137. Using slightly different language, both the House 
bill and the Senate amendment require the Inspector General 
ensure financial and compliance audits of each Bureau school at 
least once every 3 years.
      LC
      138. The Senate amendment but not the House bill requires 
the Director to conduct a comprehensive evaluation of Bureau 
operated schools every 3 to 5 years.
      HR
      139. Using slightly different language, both the House 
bill and the Senate amendment require the Secretary to 
prescribe regulations to ensure the constitutional and civil 
rights of Indian students, and prohibit the Secretary from 
promulgating unless they are necessary to ensure compliance 
with specific provisions of this Act. The House bill requires a 
comment period of at least 90 days on such regulations while 
the Senate amendment requires a comment of at least 120 days. 
Using different placement, both the House bill and the Senate 
amendment require regulations issued to cite specific legal 
authority. In addition, the House bill states that this Act 
shall supercede any conflicting provision of law.
      SR with an amendment to strike ``90'' and insert ``120''.
      140. Using different language, both the House bill and 
the Senate amendment require negotiated rulemaking and public 
comment prior to publishing proposed regulations.
      HR with an amendment to strike Senate (c)(2) and insert 
House (b)(2) in its place and apply 18 month deadline to House 
language.
      141. Both the House bill and the Senate amendment require 
meetings to comply with the Federal Advisory Committee Act.
      LC
      142. The Senate amendment but not the House bill 
authorizes appropriations for negotiated rule making, provide 
that provisions under this section supercede conflicting 
provisions of law, and prohibit the Secretary from modifying 
regulations promulgated under this section only in accordance 
with this section.
      HR with an amendment to strike paragraph (4) and insert 
the following language:
            ``(4) Special rule.--The Secretary shall carry out 
        this section using the general administrative funds of 
        the Department of the Interior. In accordance with 
        subchapter III of chapter 5 of title 5, United States 
        Code, and section 7(d) of the Federal Advisory 
        Committee Act, payment of costs associated with 
        negotiated rulemaking shall include the reasonable 
        expenses of committee members.''
      And to include (d)(1) and (2) striking ``provisions of 
law (including any conflicting''.
      143. Using almost identical language, both the House bill 
and the Senate amendment authorize early childhood development 
programs.
      LC
      144. The House bill authorizes $10 million for FY 2002, 
and such sums as are necessary for fiscal years 2003 through 
2006 for early childhood development programs. The Senate 
amendment authorizes such sums as may be necessary for fiscal 
years 2002 through 2006.
      HR
      145. Using different language, both the House bill and 
the Senate amendment allow grants for the development and 
operation of tribal departments and divisions of education.
      HR
      146. The House bill but not the Senate amendment allows 
funds to be used to comply with regulations under section 
103(a) of the Indian Self-Determination and Educational 
Assistance Act.
      HR
      147. Both the House bill and the Senate amendment set 
forth different priorities for grants.
      HR
      148. Both the House bill and the Senate amendment 
authorize $2 million for FY 2002 and such sums as necessary for 
FY 2003 through 2006 for tribal departments or divisions of 
education.
      LC
      149. Using similar language, both the House bill and the 
Senate amendment contain similar definitions.
      LC
      150. The Senate amendment but not the House bill defines 
the term ``complementary educational facilities.''
      HR
      151. The Senate amendment, but not the House bill, 
defines ``Director.''
      HR
      152. The House bill but not the Senate amendment defines 
the term ``family literacy service.''
      SR
      153. The Senate amendment but not the House bill defines 
the term ``inherently Federal functions.''
      HR
      154. The Senate bill but not the House amendment defines 
the term ``regulation.''
      HR with an amendment to insert the following language:
            ``(15) Regulation.--
                    ``(A) In general.--The term ``regulation'' 
                means any part of a statement of general or 
                particular applicability of the Secretary 
                designed to carry out, interpret, or prescribe 
                law or policy in carrying out this Act.
                    ``(B) Rule of construction.--Nothing in the 
                definition contained in subparagraph (A), or 
                any other provision of this title, shall be 
                construed to prohibit the Secretary from 
                issuing guidance, internal directive or other 
                documents similar to the documents found in the 
                Indian Affairs Manual (Bureau of Indian 
                Affairs).''
      155. Both the House bill and the Senate amendment amend 
the Tribally Controlled Schools Act of 1988.
      LC
      156. Using similar language, both the House bill and the 
Senate amendment have identical findings.
      HR/SR to eliminate findings and with an amendment to 
insert the following language:

                        ``DECLARATION OF POLICY

      ``(a) Recognition.--Congress recognizes that the Indian 
Self-Determination and Education Assistance Act, which was a 
product of the legitimate aspirations and a recognition of the 
inherent authority of Indian nations, was and is a crucial 
positive step towards tribal and community control and that the 
United States has an obligation to assure maximum Indian 
participation in the direction of educational services so as to 
render the persons administering such services and the services 
themselves more responsive to the needs and desires of Indian 
communities.
      ``(b) Commitment.--Congress declares its commitment to 
the maintenance of the Federal Government's unique and 
continuing trust relationship with and responsibility to the 
Indian people for the education of Indian children through the 
establishment of a meaningful Indian self-determination policy 
for education that will deter further perpetuation of Federal 
bureaucratic domination of programs.
      ``(c) National Goal.--Congress declares that a national 
goal of the United States is to provide the resources, 
processes, and structure that will enable tribes and local 
communities to obtain the quantity and quality of educational 
services and opportunities that will permit Indian children--
            ``(1) to compete and excel in areas of their 
        choice; and
            ``(2) to achieve the measure of self-determination 
        essential to their social and economic well-being.
      ``(d) Educational Needs.--Congress affirms--
            ``(1) true self-determination in any society of 
        people is dependent upon an educational process that 
        will ensure the development of qualified people to 
        fulfill meaningful leadership roles;
            ``(2) the special and unique educational needs of 
        Indian people, including the need for programs to meet 
        the linguistic and cultural aspirations of Indian 
        tribes and communities; and
            ``(3) that the needs may best be met through a 
        grant process.
      ``(e) Federal Relations.--Congress declares a commitment 
to the policies described in this section and support, to the 
full extent of congressional responsibility, for Federal 
relations with the Indian nations.''
      157. Using similar language, both the House bill and the 
Senate amendment have the same declaration of policy.
      HR with an amendment (see language from note 156).
      158. Using similar language, both the House bill and the 
Senate amendment provide for grants to Indian tribes and tribal 
organizations for school operations.
      LC
      159. The Senate amendment, but not the House bill, waives 
the Tort Claims Act for programs operated by a tribally 
controlled school if the program is not funded by a federal 
agency.
      SR
      160. Using almost identical language, both the House bill 
and the Senate amendment provide for federal funds to be 
included in the grant.
      LC
      161. Using similar language, both the House bill and the 
Senate amendment set forth accounting provisions for funds used 
for improvement or repair, alteration or renovation health or 
safety, or new construction. The Senate amendment, but not the 
House bill, sets out various requirements for construction and 
facilities improvement projects.
      HR with an amendment to insert the following language at 
the end of (A): ``Upon completion of a project for which a 
separate account is established under this paragraph, the 
portion of the grant related to such project may be closed out 
upon agreement by the grantee and the Secretary.''
      162. Using almost identical language, both the House bill 
and the Senate amendment set forth application procedures and 
processes for grant schools.
      LC
      163. The Senate amendment, but not the House bill, 
requires the application to be approved by the tribal governing 
body.
      SR
      164. The Senate amendment, but not the House bill, states 
that nothing in this subsection shall be construed as making a 
tribe act as a surety for a grantee, and attempts to clarify 
that existing surety requirements are not required.
      SR
      165. Using similar language, both the House bill and the 
Senate amendment sets forth criteria under which schools 
eligible to be grant schools remain eligible and criteria under 
which grant status may be revoked.
      LC
      166. The Senate amendment, but not the House bill, 
requires a biennial compliance audit.
      HR with an agreement to insert the following Report 
Language:
      Report Language:
      In establishing the requirements for the biennial 
compliance audit, the Conferees expect the Secretary, through 
regulation, to establish a reasonable threshold that would 
exempt purchases of less than $5000 for this audit.
      167. The Senate amendment, but not the House bill, 
requires the school seeking accreditation to remain under the 
standards of the Bureau until the school is accredited.
      HR with an agreement to insert the following Report 
Language:
      Report Language:
      In determining which circumstances are under the control 
of the school board, the Conferees intend that circumstances 
such as insufficient funding for school programs, inability to 
recruit certified teachers and administrators, and facilities 
that do not meet accreditation standards shall not be 
considered within the control of the school board.
      168. The Senate amendment, but not the House bill, states 
that a positive assessment by an impartial evaluator shall not 
affect a revocation of a determination of eligibility.
      HR
      169. The Senate amendment, but not the House bill, 
provides a hearing upon request of the school or governing 
body.
      HR
      170. Using similar language, both the House bill and the 
Senate amendment set forth payment criteria.
      LC
      171. The House bill requires that a first payment be made 
to schools not later than July 15 of each year, in an amount 
equal to 85 percent of the amount to be received for the year. 
The Senate amendment requires that the payment be made not 
later than July 1 of each year in an amount equal to 80 percent 
of the amount the grantee is eligible to receive for the year. 
Both the House bill and the Senate amendment require that the 
remainder be paid not later than December 1 of each year.
      LC for consistency.
      172. The Senate amendment, but not the House bill, 
provides for the return of excess funds.
      HR
      173. The Senate amendment, but not the House bill, 
prohibits states from taking into account assistance made under 
this part and provides for penalties in the event that they do.
      SR
      174. Using almost identical language, both the House bill 
and the Senate amendment apply certain provisions of the Indian 
Self-Determination and Education Assistance Act to schools 
funded under this part, allow schools to elect to be grant 
rather than contract schools, and provide for carryovers and 
transfers.
      LC
      175. The Senate amendment requires an election to take 
effect on the 1st day of July following the election. The House 
bill requires an election to take effect on October 1 of the 
fiscal year succeeding the fiscal year in which the election is 
made or 60 days after the election.
      HR
      176. The Senate amendment, but not the House bill, 
provides that any tribe or tribal organization that assumes 
operation of a Bureau school as a grant school shall be 
eligible for facilities improvement.
      HR
      177. Using almost identical language, both the House bill 
and the Senate amendment set forth the role of the Director, 
sets forth the Secretary's ability to issue regulations, and 
provides for the establishment of endowment programs funded 
with non-federal funds.
      LC
      178. The House bill, but not the Senate amendment, states 
that regulations shall not have the standing of Federal statute 
for the purposes of judicial review.
      HR
      179. Using almost identical language, both the House bill 
and the Senate amendment set forth Definitions.
      LC
      180. The Senate amendment but not the House bill provides 
a definition of the term ``Indian.''
      HR
      181. The Senate amendment but not the House bill provides 
a definition of the term ``tribal governing body.''
      HR
      182. The Senate amendment but not the House bill allows 
the Ojibwa Indian School to use funds received under this Act 
to enter into a lease agreement with Saint Ann's Catholic 
Church.
      HR
      183. The Senate amendment but not the House bill amends 
the Augustine F. Hawkins--Robert T. Stafford Elementary and 
Secondary to prohibit the Secretary from disqualifying certain 
individuals from continued receipt of general assistance 
payments under certain circumstances.
      HR
      184. The House bill but not the Senate amendment places 
certain limitations on reductions of administrative funds to 
the Bureau for failure to meet accountability provisions 
contained in the No Child Left Behind Act of 2001.
      HR

          Title IV, Part A--Innovative Programs (Block Grant)

                         (New Title V, Part A)

      1. House bill ``Innovative Programs'' is Part A of Title 
IV. Senate amendment ``Innovative Education Program 
Strategies'' is Subpart 4 of Part B of Title V.
      LC
      2. House bill, but not Senate amendment, contains 
findings.
      HR
      3. Senate amendment, but not House bill, includes support 
for local reform efforts that are consistent with and support 
statewide reform efforts.
      HR
      4. Similar provision except that House bill, but not 
Senate amendment, mentions school improvement initiatives based 
on scientifically based research.
      SR
      5. Identical provision.
      LC
      6. House bill, but not Senate amendment, mentions the 
need to meet the educational needs of all students, including 
youth at-risk.
      SR
      7. Senate amendment, but not House bill, includes support 
for programs to improve school, student, and teacher 
performance, including professional development activities and 
class size reduction.
      HR
      8. Similar provision except that House bill refers to 
`State' while Senate amendment refers to `State educational 
agency' (this continues throughout each bill).
      HR
      9. Virtually identical provisions.
      LC
      10. Similar provisions.
      SR with an amendment to insert the following language:

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

      ``(a) Distribution Rule.--
            ``(1) Allocation of base amounts.--From the amount 
        made available to the State under this subpart for 
        fiscal year 2002, and from the amount made available to 
        the State for any succeeding fiscal year up to the 
        amount available for fiscal year 2002, the State 
        educational agency shall distribute not less than 85 
        percent to local educational agencies within such State 
        according to the relative enrollments in public and 
        private, nonprofit schools within the jurisdictions of 
        such agencies, adjusted, in accordance with criteria 
        approved by the Secretary, to provide higher per-pupil 
        allocations to local educational agencies that have the 
        greatest numbers or percentages of children whose 
        education imposes a higher than average cost per child, 
        such as--
                    ``(A) children living in areas with high 
                concentrations of economically disadvantaged 
                families;
                    ``(B) children from economically 
                disadvantaged families; and
                    ``(C) children living in sparsely populated 
                areas.''
      11. House bill, but not Senate amendment, requires that 
100% of funds above the FY 01 level be distributed to LEAs for 
local innovative assistance programs.
      SR with an amendment to insert the following language:
            ``(2) Allocations of increased amounts.--From the 
        amount made available to the State under this subpart 
        for any fiscal year that exceeds the amount made 
        available for fiscal year 2002, the State educational 
        agency shall distribute the following percentages to 
        local educational agencies on the same basis as funds 
        are allocated under paragraph (1):
                    ``(A) At least 50 percent in the case of a 
                State receiving the minimum allocation under 
                section 4111(b); and
                    ``(B) 100 percent in all other cases.''
      12. House bill limits State administrative funds at 25% 
of State share. Senate amendment limits State administrative 
funds a 15% of State share.
      HR
      13. Virtually identical provisions.
      SR with an amendment to strike ``State'' and insert 
``State educational agency'' each place it occurs; LC to 
continue this change throughout this Part.
      14. Virtually identical provisions.
      LC
      15. Similar provisions.
      LC
      16. Senate amendment, but not House bill, includes 
support for effective schools programs.
      SR
      17. Senate amendment, but not House bill, allows States 
to use funds to design and implement high-quality yearly 
student assessments.
      HR
      18. Senate amendment, but not House bill, allows States 
to use funds to support implementation of State and local 
standards.
      HR
      19. Identical provision.
      LC
      20. House bill stipulates that if a State seeks to 
receive assistance under this subpart, the individual, entity, 
or agency responsible for public elementary and secondary 
education policy under the State constitution or State law 
shall submit to the Secretary an application. Senate amendment 
requires the State to submit an application.
      HR
      21. Senate amendment, but not House bill, designates the 
State educational agency as the State agency responsible for 
administration and supervision of programs assisted under this 
subpart
      HR
      22. House bill requires an annual summary of how 
assistance is contributing toward improving student 
achievement. Senate amendment requires a biannual submission of 
data on the use of funds, services, and students served.
      SR
      23. Similar provisions.
      LC
      24. House bill describes the annual statewide summary 
(required in (a)(1) above). Senate amendment contains no such 
description of the biannual submission of data (required in 
(b)(2) above).
      SR with amendment to insert ``annually'' after the word 
``submitted''.
      25. Identical provision.
      LC
      26. House bill specifies that an LEA may not be audited 
more than once every 5 years if its average grant is less than 
$5,000. Senate amendment specifies that an LEA that receives an 
average grant of less than $10,000 for 3 fiscal years may not 
be audited more than once every 5 years.
      HR
      27. Similar provision.
      LC
      28. Similar use of funds regarding teachers and 
professional development.
      HR/SR with amendment to insert the following combined 
language:
            ``(1) programs to recruit, train, and hire highly 
        qualified teachers to reduce class size, especially in 
        the early grades, and professional development 
        activities carried out in accordance with Title II, 
        that give teachers, principals, and administrators the 
        knowledge and skills to provide students with the 
        opportunity to meet challenging State or local academic 
        content standards and student academic achievement 
        standards;''
      29. Similar use of funds regarding technology activities.
      HR
      30. Similar use of funds regarding acquisition of 
instructional and educational materials, including library 
services.
      SR
      31. House bill, but not Senate amendment, contains use of 
funds regarding promising education reform projects.
      SR with an amendment to strike ``effective schools and''.
      32. Similar use of funds regarding programs to improve 
the academic performance of educationally disadvantaged 
students.
      HR
      33. House bill provides for programs to combat 
illiteracy. Senate amendment provides for programs to improve 
the literacy skills of adults.
      HR
      34. Identical provision.
      LC
      35. House bill, but not Senate amendment, provides for 
programs for the planning, designing, and initial 
implementation of charter schools.
      SR
      36. Identical provision.
      LC
      37. House bill, but not Senate amendment, provides for 
community service programs that use qualified school personnel 
to train and mobilize young people to measurably strengthen 
their communities.
      SR
      38. Identical provision.
      LC with an amendment to include the following report 
language:
      The conferees recognize that entrepreneurial education 
has largely been absent from current educational curriculums. 
In light of the rapidly changing economy and emphasis on new 
technologies, the conferees note that it is increasingly 
important to stimulate entrepreneurial thinking and the 
consideration at an early age of business ownership as a viable 
option. The conferees agree that encouraging the distribution 
of innovative entrepreneurial education programs that teach 
basic business skills and the development of sound business 
plans to secondary school age students is essential to 
expanding future opportunities and prosperity.
      39. House bill, but not Senate amendment, provides for 
activities to promote, implement, or expand public school 
choice.
      SR
      40. House bill, but not Senate amendment, provides for 
programs to hire and support school nurses.
      SR
      41. House bill, but not Senate amendment, provides for 
programs to expand and improve school-based mental health 
services.
      SR
      42. House bill, but not Senate amendment, provides for 
alternative educational programs for those students who have 
been expelled or suspended from their regular educational 
setting.
      SR
      43. House bill, but not Senate amendment, provides for 
programs to establish or enhance pre-kindergarten programs for 
children ages 3 through 5.
      SR with an amendment to strike ``ages 3 through 5''.
      44. House bill, but not Senate amendment, provides for 
academic intervention programs that are operated jointly with 
community-based organizations.
      SR
      45. House bill, but not Senate amendment, provides for 
CPR training in schools.
      SR
      46. House bill, but not Senate amendment, provides for 
programs to establish smaller learning communities.
      SR
      47. Senate amendment, but not House bill, provides for 
activities that encourage and expand improvements throughout 
the LEA.
      HR with an amendment to strike ``performance'' and insert 
``academic achievement''.
      48. Senate amendment, but not House bill, provides for 
initiatives to generate, maintain, and strengthen parental and 
community involvement.
      HR with an amendment to strike ``including initiatives . 
. . birth through 5''.
      49. Senate amendment, but not House bill, provides for 
programs and activities that expand learning opportunities 
through best practice models.
      HR
      50. Senate amendment, but not House bill, provides for 
programs to provide same gender schools and classrooms.
      HR
      51. Senate amendment, but not House bill, provides for 
service learning activities.
      HR
      52. Senate amendment, but not House bill, provides for 
school safety programs.
      HR
      53. Senate amendment, but not House bill, provides for 
programs that employ research-based cognitive and perceptual 
development approaches and rely on a diagnostic-prescriptive 
model to improve students' learning of academic content.
      HR
      54. Senate amendment, but not House bill, provides for 
supplemental educational services.
      HR
      55. Senate amendment, but not House bill, requires local 
innovative assistance programs to be tied to promoting high 
academic standards, used to improve student performance, and be 
part of an overall education reform strategy.
      HR with an amendment to insert ``achievement'' before 
``standards'' in (A) and strike ``performance'' and insert 
``academic achievement'' in (B).
      56. Senate amendment, but not House bill, requires the 
Secretary to issue guidelines for LEAs.
      HR with an amendment to strike ``the Better Education for 
Students and Teachers'' and insert ``this'' and strike 
``specific award criteria and other''.
      LC for subsection cite (b)(1)(L).
      57. Virtually identical provision, except House bill 
includes `religious organizations' as a possible nonprofit 
agency.
      HR
      58. Similar provisions.
      LC
      59. House bill, but not Senate amendment, requires local 
applications to provide assurances that programs, services, and 
activities will be evaluated annually.
      SR with amendment to insert Senate language from Note 22 
and add at the end a new (I):
                    ``(H) provides assurance that--
                            ``(i) programs, services and 
                        activities will be evaluated annually;
                            ``(ii) such evaluation will be used 
                        to make decisions about appropriate 
                        changes in program services and 
                        activities for the subsequent year;
                            ``(iii) such evaluation will 
                        describe how assistance under this 
                        subpart affected student academic 
                        achievement, and will include, at a 
                        minimum, information and data on the 
                        use of funds, the types of services 
                        furnished, and the students served 
                        under this part; and
                            ``(iv) such evaluation will be 
                        submitted to the State in the time and 
                        manner requested by the State.
                    ``(I) if appropriate, describe how 
                applicants seeking funds under section 
                5331(b)(1)(L) will comply with guidance issued 
                by the Secretary regarding same gender schools 
                and classrooms under section 5331(c).''
      60. Senate amendment, but not House bill, allows 
allocations of funds to programs for 3 years.
      SR
      61. Similar provisions.
      LC
      62. Virtually identical provisions.
      LC
      63. Virtually identical provisions.
      LC
      64. Virtually identical provisions.
      LC
      65. Identical provisions.
      LC
      66. Virtually identical provisions.
      LC
      67. Senate amendment, but not House bill, authorizes 
local funds for construction of small schools.
      HR with an agreement to move to section 5121 (State Uses 
of Funds) amended to read as follows:
            ``(7) Support for the program described in section 
        321 of H.R. 5656, the Labor-Health and Human Services-
        Education Appropriations Act, 2001, as incorporated 
        into P.L. 106-554, the Consolidated Appropriations Act, 
        2001.''
      68. Identical definition.
      LC
      69. Identical definition.
      LC
      70. Similar definitions (House bill defines term under 
general provisions).
      SR
      71. House bill authorizes $450 million for FY 02 and such 
sums as may be necessary for each of FY 03 through FY 06. 
Senate amendment authorizes $850 million for FY 02 and such 
sums as may be necessary for each of next 6 succeeding fiscal 
years.
      SR
      72. Senate amendment, but not House bill, contains 
provision regarding duration of assistance.
      SR
      LC--Add the following language to section 5121 (State 
Uses of Funds):
            ``(8) Support for programs to assist in the 
        implementation of the policy described in section 
        [Unsafe School Choice Policy in General Provisions], 
        which may include payment of reasonable transportation 
        costs and tuition costs for such students.''
      LC--Redraft (25) in section 5131 (Local Uses of Funds):
            ``(25) School safety programs, including programs 
        to implement the policy described in section [Unsafe 
        School Choice Policy in General Provisions], and which 
        may include payment of reasonable transportation costs 
        and tuition costs for such students.''
      73. House bill authorizes ``Arts Education'' as Subpart 2 
of Part A of Title IV. Senate amendment authorizes ``Arts in 
Education'' as Subpart 3 of Part F of Title XVI.
      HR/SR with an agreement to move to Subpart 15 of Title V, 
Part D (FIE).
      74. House bill and Senate amendment contain various 
findings.
      HR/SR (no findings)
      75. Similar provisions except that Senate amendment 
contains an additional purpose to support the national effort 
to enable all students to demonstrate competence in the arts.
      SR with an amendment to insert Senate (3) after House 
(2).
      76. Similar provisions.
      SR
      77. House bill uses the term `States' and Senate 
amendment uses the term `State educational agencies.'
      HR
      78. Similar provisions.
      LC
      79. House bill, but not Senate amendment, authorizes a 
use of funds for planning, developing, acquiring, expanding, 
improving, or disseminating model school-based arts education 
programs.
      SR with amendment to insert the following combined 
language:
            ``(2) planning, developing, acquiring, expanding, 
        improving, or disseminating information about, model 
        school-based arts education programs;''
      80. Senate amendment, but not House bill, authorizes a 
use of funds for the development of, and dissemination of 
information about, model arts education programs.
      SR
      81. Similar provisions.
      SR with an amendment to include the following report 
language:
      For the purpose of this Subpart, the Conferees expect the 
Department to continue a close consultative relationship with 
federal agencies or institutions that have expertise in arts 
education including the National Endowment for the Arts, the 
Institute of Museum and Library Services, the John F. Kennedy 
Center for the Performing Arts, VSA Arts, and the National 
Gallery of Art. The Department may also consult with other arts 
education professional organizations and organizations 
representing the arts including the Arts Education Partnership, 
the National Association for Music Education, and State and 
local arts agencies.
      82. Similar provisions.
      HR
      83. Similar provisions.
      LC
      84. House bill, but not Senate amendment, includes a 
supplement/not supplant provision.
      SR
      85. Senate amendment, but not House bill, contains a 
special rule that if the amount made available to carry out 
this subpart for any fiscal year is $15,000,000 or less, then 
such amount shall only be available to carry out the activities 
described in paragraphs (7) and (8) of subsection (d).
      HR
      86. House bill lists general agencies and institutions 
with which activities must be coordinated. Senate amendment 
lists the National Endowment for the Arts, the Institute of 
Museum and Library Services, the John F. Kennedy Center for the 
Performing Arts, VSA Arts, and the National Gallery of Art with 
which activities must be coordinated.
      SR with an agreement to include the following report 
language:
      For the purpose of this Subpart, the Conferees expect the 
Department to continue a close consultative relationship with 
federal agencies or institutions that have expertise in arts 
education including the National Endowment for the Arts, the 
Institute of Museum and Library Services, the John F. Kennedy 
Center for the Performing Arts, VSA Arts, and the National 
Gallery of Art. The Department may also consult with other arts 
education professional organizations and organizations 
representing the arts including the Arts Education Partnership, 
the National Association for Music Education, and State and 
local arts agencies.
      87. House bill and Senate amendment authorize this 
program at such sums (Senate amendment authorization is listed 
as part of the LIFE program (FIE)).
      HR/SR (no authorization because moved to FIE).
      88. House bill authorizes ``Gifted and Talented 
Children'' as Subpart 3 of Part A of Title IV. Senate amendment 
authorized ``Gifted and Talented Children'' as Part E of Title 
XVI.
      HR/SR with an agreement to move to Subpart 6 of Title V, 
Part D (FIE).
      89. Identical short title.
      LC
      90. House bill and Senate amendment contain similar 
findings.
      HR/SR (no findings)
      91. Similar purpose except that House bill explicitly 
mentions scientifically based research.
      SR
      92. Senate amendment, but not House bill, triggers a 
formula grant program once the appropriation equals or exceeds 
$50 million.
      SR
      93. Similar provision.
      LC
      94. Virtually identical provisions.
      LC
      95. Virtually identical provisions.
      LC
      96. Similar provisions except that House bill, but not 
Senate amendment, requires that research be scientifically 
based.
      SR with an amendment to add special rule and additional 
use of funds (specifically a special rule to provide that all 
funding above FY 2001 level be awarded to SEAs and/or LEAs on a 
competitive basis for use of funds under House section 4164(b) 
and add non-duplicative use of funds (2) and (4) from Senate 
section 11422(b) to House section 4164(b)).
            ``Special rule.--For fiscal year 2002 and 
        succeeding fiscal years, the Secretary shall use funds 
        above the fiscal 2001 appropriation to award grants, on 
        a competitive basis, to State educational agencies and/
        or local educational agencies to implement activities 
        described under [House] section 4164(b).''
      Add non-duplicative use of funds from Senate section 
11422(b) to House section 4164(b):
            ``(6) Making materials and services available 
        through State regional educational service centers, 
        institutions of higher education, or other entities.
            ``(7) Providing funds for challenging, high-level 
        course work, disseminated through technologies 
        (including distance learning), for individual students 
        or groups of students in schools and local educational 
        agencies that do not have the resources otherwise to 
        provide such course work.''
      97. Similar provisions.
      HR
      98. Virtually identical provisions except that House bill 
specifically references scientifically based research.
      SR
      99. Virtually identical provisions.
      LC
      100. Similar provisions.
      LC
      101. Virtually identical provisions.
      LC
      102. Similar provisions.
      LC
      103. Senate amendment, but not House bill, provides that 
amounts appropriated above FY 01 level be dedicated toward 
competitive grant awards for activities described in Section 
11422 (formula grant program).
      SR (see note 96).
      104. Senate amendment, but not House bill, provides for a 
formula grant program.
      SR
      105. House bill defines terms in general provisions.
      SR
      106. House bill authorizes such sums as may be necessary 
to carry out this Subpart for each of fiscal years 2002 through 
2006. Senate amendment authorizes $170 million for each of 
fiscal years 2002 through 2008.
      HR/SR (no authorization because moved to FIE).
      107. House bill, but not Senate amendment, assures 
continuation of awards granted prior to date of enactment.
      SR

                   Title IV, Part B--Charter Schools

                         (New Title V, Part B)

      1. Under the House bill, the Public Charter Schools 
program is a ``part''. Under the Senate amendment, it is a 
``chapter''.
      SR
      2. The House bill, but not the Senate amendment, has a 
Findings subsection.
      HR
      3. The House bill and Senate amendment Purpose sections 
are identical except that the House version adds the term 
``academic'' after ``student'' in purpose (2).
      LC
      4. The House bill and Senate amendment Program Authorized 
sections are identical except that the Senate amendment version 
adds ``(other than funds reserved to carry out section 5115 
(b))'' after ``section 5121'' in (e)(1).
      HR
      5. The House bill uses the term ``academic achievement'' 
after ``student'' in (b)(3)(A)(i), while the Senate amendment 
uses the term ``performance''.
      LC
      6. The House bill, but not the Senate amendment, includes 
an assurance under (d) Contents of Applications (3) pertaining 
to precharter planning grants and subgrants.
      (See note 18)
      SR
      7. The House bill and Senate amendment have identical (a) 
Selection Criteria for State Educational Agencies except that 
the House bill adds the term ``academic'' after ``state'' and 
``student'' in (a)(1) and uses the terms ``academic 
achievement'' after ``student'' in (a)(7). In (a)(7), the 
Senate amendment uses the term ``performance'' instead of 
``academic achievement.''
      LC
      8. The House bill, but not the Senate amendment, 
explicitly prohibits a local educational agency from deducting 
funds for administrative fees or expenses from a subgrant 
awarded to an eligible applicant under (4) Administrative 
expenses.
      SR with an amendment to insert after ``an eligible 
applicant'' in (4) ``unless such applicant enters voluntarily 
into a mutually agreed upon arrangement for administrative 
services with the relevant LEA. Absent such approval the LEA 
shall distribute all such grant funds to the grantee without 
delay.''
      9. The House bill and Senate amendment have identical (6) 
Dissemination language except that the House bill uses the term 
``academic'' after ``student'' in (A)(i) and the terms 
``academic achievement'' after ``student'' in (B)(ii). In 
(B)(ii), the Senate amendment uses the term ``performance'' 
instead of ``achievement''.
      LC
      10. The Senate amendment, but not the House bill, adds 
``(other than funds reserved to carry out section (b))'' after 
``chapter'' in (a).
      SR with amendment to move section 5115(b)(6) to (a) of 
the National Activities section.
      11. The Senate amendment, but not the House bill, 
includes outdated language pertaining to a 4-year national 
study in (a)(1)(B)(2).
      SR
      12. The House bill adds the term ``academic'' after 
``student'' in (a)(2). The Senate amendment does not include 
the term ``academic'' in (a)(3).
      LC
      13. The Carper-Gregg amendment to the Senate amendment 
cites the Per-Pupil Facilities Aid Programs subsection as the 
``Charter Schools Equity Act'' and states that the purposes of 
this subsection are:
            (A) to help eliminate the barriers that prevent 
        charter school developers from accessing the credit 
        markets, by encouraging lending institutions to lend 
        funds to charter schools on terms more similar to the 
        terms typically extended to traditional public schools; 
        and
            (B) to encourage the States to provide support to 
        charter schools for facilities financing in an amount 
        more nearly commensurate to the amount the States have 
        typically provided for traditional public schools.
      However, this language does not amend the Elementary and 
Secondary Education Act.
      HR/SR with an amendment to move (B) to General Purpose 
section.
      14. The Senate amendment, but not the House bill, 
includes (b) Per-Pupil Facilities Aid Programs under Section 
5115, National Activities.
      HR with an amendment to add ``includes or'' in section 
5115(b)(3)(B)(iii).
      15. The House bill, but not the Senate amendment, deletes 
the following outdated language: ``not later than 6 months 
after the date of the enactment of the Charter School Expansion 
Act of 1998'' in (a).
      SR
      16. The House bill, but not the Senate amendment, 
requires the transfer of records to a private school upon the 
transfer of the student from a charter or public school to the 
private school (with the written consent of a parent of the 
student), in accordance with applicable State law.
      HR (with understanding--discussion about record transfer 
in Safe and Drug Free).
      17. The House bill defines a charter school as a public 
school ``that admits students on the basis of a lottery or in 
another non-discriminatory manner consistent with State law, if 
more students apply for admission than can be accommodated'' in 
(1)(H). The Senate amendment does not include the phrase ``or 
in another non-discriminatory manner consistent with State 
law.''
      HR with Report Language:
      ``The Conferees encourage the Secretary to help ensure 
that public charter school admissions policies are consistent 
with federal and state law, while preserving the particular 
mission of a charter school to the maximum extent possible.''
      18. The House bill and Senate amendment have different 
definitions of an ``eligible applicant'' in (3).
      SR
      19. The House bill authorizes the Public Charter Schools 
program at $225 million for FY 2002 and such sums as may be 
necessary for each of the 4 succeeding fiscal years. The Senate 
amendment authorizes the Public Charter Schools program at $400 
million, $200 million of which is reserved specifically for 
this chapter (other than the Per-Pupil Facilities Aid 
Programs). Any remainder above the $200 million is reserved to 
carry out the Per-Pupil Facilities Aid Programs. The Senate 
amendment authorizes the Public Charters Schools program at 
such sums as may be necessary for each of the 6 succeeding 
fiscal years.
      HR with an amendment to strike $400 million and insert 
$300 million (first $200 million going to charters and next 
$100 million going to per pupil) with increases thereafter 
being split 50/50.
      Report Language:
      Charter schools are public schools, yet lack the bonding 
and taxing authority traditionally available to school 
districts to finance their facilities. As a result, charter 
schools are forced to use operating revenues that are intended 
to be spent in the classroom to pay rent or to make debt 
payments for facilities. States have the primary obligation to 
address this inequity. But, to stimulate state initiatives, 
this legislation authorizes a limited-term federal role in 
encouraging states to establish or expand per pupil facilities 
aid programs.
      Conferees support significant funding increases for the 
charter school program in order to free up resources, as 
quickly as possible, for the per-pupil financing program, a 
program that assists charter schools in meeting their operating 
needs, so that charter school resources may be better spent on 
academic activities.
      20. The House bill, but not the Senate amendment, 
includes a Continuation of Awards section.
      SR
      21. The Senate amendment, but not the House bill, 
includes Chapter II--Credit Enhancement Initiatives to Promote 
Charter School Facility Acquisition, Construction, and 
Renovation.
      HR with an amendment to (1) strike all and insert Charter 
School Facility Financing Demonstration Project language from 
last year's Omnibus Appropriations; (2) authorize the 
Demonstration Project for $150 million in FY 02 and such sums 
in FY 03; and (3) include the following report language:
      Report Language:
      As stated in report language last year (P.L. 106-554), 
the Credit Enhancement Program for charter school facilities 
falls under the administrative responsibility of the Secretary 
of Education.

                       Title IV, Part C--Magnets

                         (New Title V, Part C)

      1. The Senate amendment, but not the House bill, 
consolidates the Findings and Statement of Purpose into one 
section.
      HR
      2. The House bill and Senate amendment each have 4 
findings but only the first finding is the same in both, except 
that the Senate amendment adds ``Nation's'' in front of 
``schools.''
      HR with an amendment to: take Senate (1); take House (2), 
(3), and (4)(A); insert as new language:
                    ``(B) to ensure that all students have 
                equitable access to a quality education that 
                will prepare them to function well in a 
                technologically oriented and a highly 
                competitive economy comprised of people from 
                many different racial and ethnic backgrounds.
                    ``(C) to continue to desegregate and 
                diversify schools by supporting magnet schools, 
                recognizing that such segregation exists 
                between minority and nonminority students as 
                well as among students of different minority 
                groups. Desegregation efforts through magnet 
                programs are a significant part of our Nation's 
                effort to achieve voluntary desegregation in 
                schools and help to ensure equal educational 
                opportunities for all students.''
      3. Under Statement of Purpose, the Senate amendment, but 
not the House bill, includes ``which shall assist in the 
efforts of the United States to achieve voluntary desegregation 
in public schools'' at the end of (1).
      HR
      4. The Senate amendment adds the term ``local'' to 
``content standards'' and ``student performance standards'' in 
(2), while the House bill adds the term ``academic'' after 
``State'' and ``academic achievement'' after ``student''.
      LC
      5. The House bill, but not the Senate amendment, adds 
``that promote diversity and increase choices in public 
elementary and secondary schools and educational programs'' at 
the end of (3).
      SR
      6. The Senate amendment includes the phrase 
``technological and career'' before ``skills'' in (4). The 
House bill uses the word ``technical'' instead.
      HR with an amendment to strike ``career'' and insert 
``professional''.
      7. The Senate amendment, but not the House bill, includes 
two additional purpose statements. See (5) and (6).
      HR
      8. Under the Elibibility section in (1), the Senate 
amendment, but not the House bill, adds the word ``schools'' 
following ``elementary''.
      SR
      9. Under the Information and Assurances part in (1)(B), 
the House bill, but not the Senate amendment, adds the term 
``academic'' after ``student.''
      LC
      10. In (1)(D) the House bill reads: ``how funds under 
this part will be used to improve student academic performance 
for all students attending the magnet schools.'' The Senate 
amendment reads: ``how funds under this subpart will be used to 
implement services and activities that are consistent with 
other programs under this Act, and other Acts, as appropriate, 
in accordance with the provisions of section 5506;.''
      HR/SR with an amendment to combine House and Senate (D), 
and to strike ``the magnet schools'' and insert ``magnet school 
programs''.
      LC--``section 5506''; New citation.
      11. In (2)(B), the House bill reads: ``employ fully 
qualified teachers in the courses of instruction assisted under 
this part;.'' The Senate amendment reads: ``employ State 
certified or licensed teachers in the courses of instruction 
assisted under this subpart to teach or supervise others who 
are teaching the subject matter of the courses of 
instruction;.''
      SR
      12. In (2)(E), the Senate amendment, but not the House 
bill, includes ``consistent with desegregation guidelines and 
the capacity of the project to accommodate these students'' 
following the word ``project''.
      HR
      13. The Senate amendment, but not the House bill, 
includes (c) Special Rule.
      HR
      14. Under the Priority section, the Senate amendment, but 
not the House bill, includes two additional priorities. See (4) 
and (5).
      SR
      15. Under the Use of Funds section in (a)(3), the House 
bill uses the phrase ``fully qualified.'' The Senate amendment 
uses the phrase ``certified or licensed by the State.''
      SR
      16. Under the Use of Funds section in (a)(5), the House 
bill states ``for activities, which may include professional 
development, that will build the recipient's capacity to 
operate magnet school programs once the grant period has 
ended.'' The Senate amendment states ``to include professional 
development, which professional development shall build the 
agency's or consortium's capacity to operate the magnet school 
once Federal assistance has terminated;.''
      SR
      17. The Senate amendment, but not the House bill, 
includes two additional uses of funds. See (6) and (7).
      HR
      18. Under (b) Special Rule, the House bill, but not the 
Senate amendment, adds the phrase ``to improving the students'' 
academic performance based on the State's challenging academic 
content standards and student academic achievement standards 
or'' after the word ``related'' and before the word ``to.''
      SR
      19. The House bill also includes the phrase ``vocational 
and technical skills,'' while the Senate amendment includes the 
phrase ``vocational, technological and career skills.''
      HR with an amendment to strike ``career'' and insert 
``professional''.
      20. Under the Prohibitions section, the House bill 
includes the headline (a) Transportation and an additional 
prohibition--
      ``(b) Planning.--A local educational agency shall not 
expend funds under this part after the third year that such 
agency receives funds under this part for such project.''
      The Senate amendment does not include the headline or the 
additional prohibition.
      HR
      21. Under (b) Limitation on Planning Funds, the Senate 
amendment includes the phrase ``(professional development shall 
not be considered as planning for purposes of this 
subsection)'' and limits planning funds to ``25 percent of such 
funds for the second year, and 15 percent of such funds for the 
third such year.'' The House bill does not include the above 
phrase and limits planning funds to ``15 percent of such funds 
for the second such year, and 10 percent of such funds for the 
third such year.''
      HR with an amendment to strike ``25'' and insert ``15''.
      22. Under (d) Timing, the House bill provides for the 
Secretary to make awards no later than July 1 of the applicable 
fiscal year, while the Senate amendment provides that the 
awards are to be made not later than June 1 of the applicable 
fiscal year.
      SR
      23. The Senate amendment includes SEC. 5140. INNOVATIVE 
PROGRAMS. The House bill repeals this program.
      SR
      24. Under the Evaluations section in (a) Reservation, the 
House bill refers to ``section 4312(a)'' where as the Senate 
refers to ``section 5142(a).'' Also, the House bill uses the 
phrase ``technical assistance, and dissemination projects with 
respect to magnet school projects and programs assisted under 
this part.'' Following the word ``evaluations,''. The Senate 
amendment uses the phrase ``of projects assisted under this 
subpart and to provide technical assistance for grant 
recipients under this subpart.''
      SR
      25. Under (b) Contents (3), the Senate amendment, but not 
the House bill, adds the word ``schools'' after ``elementary.'' 
The Senate amendment, but not the House bill, includes an 
additional provision in (b) Contents. See (5).
      SR
      26. The Senate amendment, but not the House bill, 
includes (c) Dissemination.
      HR
      27. Under the Authorization of Appropriations; 
Reservation section, the House bill authorizes $125 million for 
fiscal year 2002 and ``such sums as may be necessary for each 
of 4 succeeding fiscal years.'' The Senate amendment authorizes 
$125 million for fiscal year 2002 and ``such sums as may be 
necessary for each of the 6 succeeding fiscal years.''
      LC
      28. House bill transfers and continues current law.
      HR/SR with an agreement to move to Subpart 20 of Title V, 
Part D (FIE).
      29. Senate amendment rewrites the Women's Educational 
Equity Act.
      HR/SR with an agreement to move to Subpart 20 of Title V, 
Part D (FIE).
      30. House bill authorizes $3 million for FY 02 and such 
sums as may be necessary for each of the four succeeding fiscal 
years.
      HR/SR (no authorization because moved to FIE).
      31. Senate amendment authorizes such sums as may be 
necessary for FY 02 and for each of the 6 succeeding fiscal 
years.
      HR/SR (no authorization because moved to FIE).
      32. The House bill, but not the Senate amendment, 
includes SEC. 423. CONTINUATION OF AWARDS.
      SR

     Title V, Part A, subparts 1,3,4,5--Safe and Drug Free Schools

                         (New Title IV, Part A)

      1. (Title) House bill includes Safe and Drug-Free and 
21st Century Community Learning Centers as separate subparts in 
the same act with separate funding authorizations. Senate 
amendment maintains these two programs as separate acts.
      HR with an amendment to treat Safe and Drug-Free and 21st 
Century as separate parts.
      2. (Findings) House bill contains no findings.
      SR
      3. (Purpose) House bill and Senate amendment contain 
similar provisions.
      House bill includes before and after school activities as 
a purpose of the Act.
      Senate amendment specifies types of programs (i.e.: 
alternative education, rehabilitation).
      Senate amendment also references development and 
implementation of policy at local level.
      HR with an amendment to insert ``and communities'' after 
``involve parents,'' in the lead-in;
      Insert ``to foster a safe and drug-free learning 
environment which supports academic achievement,'' after 
``efforts and resources'' in the lead-in.
      Strike everything after ``early intervention'' in (1).
      Strike everything after ``prevention including'' in (2) 
and insert ``community-wide drug and violence prevention 
planning and organization activities.''
      4. (State Grant Funds) House bill authorizes $475 million 
for Safe and Drug-Free State Grants for FY 2002 and such sums 
for 4 following years.
      Senate amendment authorizes $700 million for Safe and 
Drug-Free State Grants for FY 2002 and such sums for 6 
following years.
      HR with an amendment to authorize appropriations at $650 
million in FY 2002 and such sums in each of the 5 succeeding 
fiscal years.
      5. (National Programs Funds) House bill authorizes $60 
million for national programs for Safe and Drug-Free and 21st 
Century Community Learning Centers programs combined for FY 
2002 and such sums for 4 following years
      Senate amendment authorizes $150 million for Safe and 
Drug-Free national programs for FY 2002 and such sums for 6 
following years.
      HR/SR with an amendment to authorize appropriations of 
such sums in FY 2002 and each of the 5 succeeding fiscal years.
      6. (Coordinator Funds) Senate amendment authorizes $75 
million for a national coordinator initiative for FY 2002 and 
such sums for 6 following years. House bill has no provision.
      SR
      7. (Domestic Violence Funds) Senate amendment authorizes 
$5 million for Domestic Violence Witness Program for FY 2002-
2004. House bill has no provision.
      SR
      8. (Suicide Prevention Funds) Senate amendment authorizes 
$25 million for Suicide Prevention Program for FY 2002 and such 
sums for 6 following years. House bill has no provision.
      SR
      9. (Guam, etc. Set-aside) House bill provides for the 
greater of 1% or $4.75 million for grants to Guam, American 
Samoa, Virgin Islands, and Northern Marianna Islands.
      Senate amendment provides 1% for grants to the same 
jurisdictions.
      SR
      10. (Indian Set Aside) House bill provides for the 
greater of 1% or $4.75 million for grants for Indian Youth.
      Senate amendment provides 1% for such grants.
      SR
      11. (Impact Evaluation Funds) Senate amendment allows the 
Secretary to reserve up to $2 million for a national impact 
evaluation.
      HR with an amendment to move the National Impact 
Evaluation authorization and appropriation to National 
Activities.
      12. (Native Hawaiians Set-aside) Similar provisions.
      LC
      13. (Safe Schools/Healthy Students Funds) House bill 
provides for continued funding of Safe Schools/Healthy 
Students.
      SR with an amendment to take reservation from the 
national activities funds.
      14. (Fed to State Formula) House bill and Senate 
amendment contain similar provisions.
      HR to Senate formula and include a hold harmless to 
FY2001 amount
      15. (Reallotment) House bill provides for an annual 
reallotment.
      Senate amendment provides for reallotment every two 
years.
      HR/SR to retain both.
      16. (Definitions) House bill defines native Hawaiian.
      Senate amendment defines state and local educational 
agency.
      LC throughout and eliminate if identical to general 
definition.
      17. (Limitation) House bill contains no similar 
provision.
      HR
      18. (Gov Programs) Similar set-aside for governor's 
programs.
      House bill specifies that awards are to be made based on 
quality and how well aligned with principles of effectiveness 
and includes LEAs as participants.
      Senate amendment lists specific elements to be described 
in a state plan:
            --how programs will be coordinated so as not to be 
        duplicative of state and local efforts;
            --how populations not normally served will be 
        served;
            --how governor will monitor the performance of and 
        provide technical outreach to recipients;
            --how participation of CBOs will be maximized;
            --how funds will support community-wide drug and 
        violence prevention activities;
            --how parental input will be sought.
      SR with an amendment to strike House language and insert 
the following:

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

      ``(a) State Reservation for the Governor.--
            ``(1) In general.--The chief executive officer of a 
        State may reserve not more than 20 percent of the total 
        amount allocated to a State under section 5111(b) for 
        each fiscal year to award competitive grants and 
        contracts to local educational agencies, community-
        based organizations (including community anti-drug 
        coalitions), other public entities and private 
        organizations, and consortia thereof. Such grants and 
        contracts shall be used to carry out the comprehensive 
        state plan through programs or activities that 
        complement and support activities of local educational 
        agencies described in section 5115. Such officer shall 
        award grants based on--
                    ``(A) the quality of the activity or 
                program proposed; and
                    ``(B) how the program or activity meets the 
                principles of effectiveness described in 
                section 5114(a).''
      19. (Gov Programs) House bill gives special consideration 
to programs providing and incorporating mental health services.
      Senate amendment gives priority to those not normally 
served and to those needing special services.
      HR with amendment to strike and replace with the 
following language:
            ``(2) Priority.--In making such grants and 
        contracts, a chief executive officer shall give 
        priority to illegal drug use and violence prevention 
        programs and activities for--
                    ``(A) children and youth who are not 
                normally served by State or local educational 
                agencies; or
                    ``(B) populations that need special 
                services or additional resources (such as youth 
                in juvenile detention facilities, runaway or 
                homeless children and youth, pregnant and 
                parenting teenagers, and school dropouts).
            ``(3) Special consideration.--In awarding funds 
        under subparagraph (A), a chief executive officer shall 
        give special consideration to grantees that pursue a 
        comprehensive approach to drug and violence prevention 
        that includes providing and incorporating mental health 
        services related to drug and violence prevention in 
        their program.
            ``(4) Peer review.--Grants or contracts awarded 
        under this subpart shall be subject to a peer review 
        process.''
      20. (Gov Programs) Senate bill requires peer review of 
grants awarded by chief executive officers.
      HR with an amendment to strike Senate language.
      21. (Gov Admin) House bill allows 1% for administration 
expenses.
      Senate amendment allows 5% for administration expenses, 
and authorizes the chief executive officer to award grants to 
state, county, or local law enforcement agencies to carry out 
drug and violence prevention activities.
      SR with an amendment to set administrative costs at not 
more than 3 percent.
      22. (Gov Applic) House bill contains no similar 
provisions.
      SR
      23. (Gov Activities) House bill contains no similar 
provisions.
      HR with amendment to strike language and insert:
      ``Grants and contracts under section [gov reservation] 
shall be used to implement drug and violence prevention 
activities, such as:
            --activities that complement and support activities 
        of local education agencies under section [LEA uses of 
        funds], including developing and implementing 
        activities to prevent and reduce violence associated 
        with prejudice and intolerance;
            --Dissemination of information about drug and 
        violence prevention.
            --Development and implementation of community-wide 
        drug and violence prevention planning and 
        organization.''
      24. (SEA Funds) House bill provides 95% of an amount 
reserved for state and local programs (80%) to be sent to the 
local level.
      Senate amendment provides for 91% of the amount reserved 
for state and local programs (80%) to be sent the local level.
      HR with an amendment to strike language and insert the 
following:
            ``(1) In general.--A state educational agency shall 
        distribute not less than 93 percent of the amount 
        available under section [  ] to its local educational 
        agencies.''
      Report Language
      ``The Conferees wish to clarify that at all times a State 
educational agency must distribute at least 93 percent of the 
funds it receives to the local educational agencies.''
      25. (SEA Funds) House bill allows 4% for state 
activities.
      Senate amendment allows 5% for state activities.
      SR with an amendment to strike the language and insert 
the following:
            ``(2) State activities.--A state educational agency 
        shall use not more than 5 percent of the funds made 
        available under section [  ] for activities described 
        in subsection (c).''
      26. (SEA Funds) House bill allows 1% for administration 
expenses.
      21. Senate amendment allows 5% for administration 
expenses and uniform reporting system.
      SR with an amendment to strike the language and insert 
the following:
            ``(3) State administration.--
                    ``(A) In general.--A state educational 
                agency shall use not more than 3 percent of the 
                funds made available under section [  ] for 
                state administration, including implementation 
                of the Uniform Management Information and 
                Reporting System.
                    ``(B) Special rule.--For fiscal year 2002, 
                a state educational agency may use an 
                additional 1 percent of the amount made 
                available under section [  ] for implementation 
                of the Uniform Management Information and 
                Reporting System.''
      27. (State Activ) Similar provisions, but House bill 
authorizes generally, whereas Senate amendment specifies types 
of activities and services.
      SR with an amendment to strike language and insert the 
following:
            ``(1) In general.--A State shall use a portion of 
        the funds described in subsection (b)(2), either 
        directly, or through grants and contracts, to plan, 
        develop, and implement capacity building, technical 
        assistance and training, evaluation, program 
        improvement services, and coordination activities for 
        local educational agencies, community-based 
        organizations, and other public and private entities.
            ``(2) Activities.--Such uses shall meet the 
        principles of effectiveness described in section 
        5115(a), shall complement and support local uses of 
        funds under section 5115(b), and otherwise shall 
        further the purposes of this part, and may include, 
        among others,
                    ``(A) identification, development, 
                evaluation, and dissemination of drug and 
                violence prevention strategies, programs, 
                activities, and other information;
                    ``(B) training, technical assistance, and 
                demonstration projects to address violence 
                associated with prejudice and intolerance;
                    ``(C) and financial assistance to enhance 
                drug and violence prevention resources 
                available in areas that serve large numbers of 
                low-income children, are sparsely populated, or 
                have other special needs.''
      28. (Data Collection) Senate amendment contains no 
similar provision.
      HR with an amendment to strike the Senate language and 
insert the following language:
            ``(2) Uniform management information and reporting 
        system.--
                    ``(A)(1) Information and statistics.--In 
                carrying out its responsibilities under [state 
                admin], a state shall implement a uniform 
                management information and reporting system.
                    ``(2) A State may use funds described in 
                subsection (b)(3), either directly or through 
                grants and contracts, to establish and 
                implement a uniform management information and 
                reporting system, to include information on--
                            ``(i) truancy rates;
                            ``(ii) the frequency, seriousness, 
                        and incidence of violence and drug 
                        related offenses resulting in 
                        suspensions and expulsion in elementary 
                        and secondary schools in States;
                            ``(iii) the types of curricula, 
                        programs, and services provided by the 
                        chief executive officer, state 
                        educational agency, local educational 
                        agencies, and other recipients of funds 
                        under this part; and
                            ``(iv) the incidence and 
                        prevalence, age of onset, perception of 
                        health risk, and perception of social 
                        disapproval of drug use and violence by 
                        youth in schools and communities.''
                    ``(B) Compilation of statistics.--The 
                statistics shall be compiled in accordance with 
                definitions as determined in the State criminal 
                code, but shall not identify victims of crimes 
                or persons accused of crimes. The collected 
                data shall include, incident reports by school 
                officials, anonymous student surveys, and 
                anonymous teacher surveys.
                    ``(C) Reporting.--Such data and statistics 
                shall be reported to the public and the 
                statistics referenced in (A)(2)(i) and (ii) 
                shall be reported on a school-by-school basis.
                    ``(D) Limitation.--Nothing in this 
                subsection shall be construed to authorize the 
                Secretary to require particular policies, 
                procedures, or practices with respect to crimes 
                on school property or school security.''
      29. (Persistently Dangerous) Senate amendment contains no 
similar provision.
      HR with an amendment to insert the following language in 
General Provisions--

                     ``Unsafe School Choice Policy

      ``(a) Policy.--Each State receiving funds under this Act 
shall establish and implement a statewide policy requiring that 
a student attending a persistently dangerous public elementary 
and secondary school, as determined by the State in 
consultation with a representative sample of local educational 
agencies, or who becomes a victim of a violent criminal 
offense, as determined by State law, while in or on the grounds 
of a public elementary or secondary school that the student 
attends, be allowed to attend a safe public elementary or 
secondary school within the local educational agency, including 
a public charter school.
      ``(b) Certification.--As a condition of receiving funds 
under this Act, a State shall certify in writing to the 
Secretary that the State is in compliance with this section.
      30. (State Application) Similar provisions aligned.
      HR with amendment to strike and insert the following 
language:

``SEC. 5113. STATE APPLICATION.

      ``(a) In General.--In order to receive an allotment under 
section 4111 for any fiscal year, a State shall submit to the 
Secretary, at such time as the Secretary may require, an 
application that--
            ``(1) contains a comprehensive plan for the use of 
        funds by the State educational agency and the chief 
        executive officer to provide safe, orderly, and drug-
        free schools and communities through programs and 
        activities that complement and support activities of 
        local educational agencies under section 5115(b), that 
        comply with the principles of effectiveness under 
        section 5115(a), and that otherwise are in accordance 
        with the purposes of this part;
            ``(2) describes how activities funded under this 
        subpart will foster a safe and drug free learning 
        environment that supports academic achievement;
            ``(3) provides an assurance that the application 
        was developed in consultation and coordination with 
        appropriate State officials and others, including the 
        chief executive officer, the chief State school 
        officer, the head of the State alcohol and drug abuse 
        agency, the heads of the State health and mental health 
        agencies, the head of the State criminal justice 
        planning agency, the head of the State child welfare 
        agency, the head of the State board of education, or 
        their designees, and representatives of parents, 
        students, and community-based organizations;
            ``(4) a description of how the State educational 
        agency will coordinate such agency's activities under 
        this subpart with the chief executive officer's drug 
        and violence prevention programs under this subpart and 
        with the prevention efforts of other State agencies and 
        other programs, as appropriate, in accordance with the 
        provisions in section 8306;
            ``(5) provides an assurance that the State will 
        cooperate with, and assist, the Secretary in conducting 
        data collection as required by section 5116(a);
            ``(6) provides an assurance that the local 
        educational agencies in the State will comply with the 
        provisions of section 8503 pertaining to the 
        participation of private school children and teachers 
        in the programs and activities under this subpart;
            ``(7) provides an assurance that funds under this 
        subpart will be used to increase the level of State, 
        local, and other non-Federal funds that would, in the 
        absence of funds under this subpart, be made available 
        for programs and activities authorized under this 
        subpart, and in no case supplant such State, local, and 
        other non-Federal funds;
            ``(8) contains the results of the State's needs 
        assessment for drug and violence prevention programs, 
        which shall be based on the results of on-going State 
        evaluation activities, including data on the incidence 
        and prevalence, age of onset, perception of health 
        risk, and perception of social disapproval of drug use 
        and violence by youth in schools and communities and 
        the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse or 
        domestic violence, or protective factors, buffers or 
        assets or other variables identified through 
        scientifically based research in the school and 
        community;
            ``(9)(A) provides a statement of the State's 
        performance measures for drug and violence prevention 
        programs and activities to be funded under this part 
        that shall be focused on student behavior and attitudes 
        and be derived from the needs assessment, be developed 
        in consultation between the State and local officials, 
        and that consist of--
                    ``(i) performance indicators for drug and 
                violence prevention programs and activities; 
                and
                    ``(ii) levels of performance for each 
                performance indicator;
            ``(B) a description of the procedures the State 
        will use for assessing and publicly reporting progress 
        toward meeting those performance measures; and
            ``(11) provides an assurance that the State 
        application will be available for public review after 
        submission of the application.
            ``(12) a description of the special outreach 
        activities that will be carried out by the State 
        educational agency and the state chief executive 
        officer to maximize the participation of community-
        based nonprofit organizations of demonstrated 
        effectiveness which provide services in low-income 
        communities, such as mentoring programs;
            ``(13) a description of how funds will be used by 
        the state educational agency and the state chief 
        executive officer to support, develop, and implement 
        community-wide comprehensive drug and violence 
        prevention planning, organization, and activities;
            ``(14) a specific description of how input from 
        parents will be sought regarding the use of funds by 
        the state educational agency and the state chief 
        executive officer;
            ``(15) includes any other information the Secretary 
        may require.
      ``(b) [Sea Section of Application].--A State's 
application under this section shall also contain a 
comprehensive plan for the use of funds described in [  ] 
developed by the SEA that
            ``(1) describes how the State educational agency 
        will review applications and allocate funds to local 
        educational agencies, including how the agency will 
        receive input from parents in such review;
            ``(2) describes how the SEA will monitor the 
        implementation of activities under this part, and 
        provide technical assistance under this part for local 
        educational agencies, community-based organizations, 
        other public entities, and private organizations under 
        this subpart;
      ``(c) [Gov Section of Application].--`A State's 
application under this section shall also contain a 
comprehensive plan for the use of funds described in [  ] 
developed by the chief executive officer that includes, with 
respect to each activity--
            ``(1) a description of how funds reserved under 
        section 4114(a) will be used so as not to duplicate the 
        efforts of the State educational agency and local 
        educational agencies with regard to the provision of 
        school-based drug and violence prevention activities 
        and how those funds will be used to serve populations 
        not normally served by the State and local educational 
        agencies, such as school dropouts, suspended and 
        expelled students, and youth in detention centers;
            ``(2) a description of how the chief executive 
        officer will award funds under section 4114(a) and 
        implement a plan for monitoring the performance of, and 
        providing technical assistance to, recipients of such 
        funds.''
      31. (State Application) Senate amendment similar to House 
bill section 5112(c)(1).
      HR/SR to strike all.
      32. (State Applic Review/Approval) House bill provides 
that application deemed approved if no response within 90 days.
      Senate amendment provides for peer review.
      SR with an amendment to strike language and insert the 
following language:
      ``(b) General Approval.--A State educational agency's 
application submitted pursuant to subsection (a) shall be 
deemed to be approved by the Secretary unless the Secretary 
makes a written determination, prior to the expiration of the 
120 day period beginning on the date that the Secretary 
receives the application, that the application is in violation 
of this part.
      ``(c) Disapproval.--The Secretary shall not finally 
disapprove an application, except after giving the State 
educational agency notice and opportunity for a hearing.
      ``(d) Special Rule.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with the 
provisions of this part, the Secretary shall:
            ``(1) implement the procedures described in 
        subsection (c); and
            ``(2) notify the State educational agency of the 
        findings of non-compliance where such notification 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to those noncompliant provisions, needed to 
                make the application compliant.
      ``(e) If the State educational agency does not respond to 
the notification described in subsection (d)(2) within 45 days, 
such application is not approved.
      ``(f) If the State educational agency does respond to the 
Secretary's notification described in subsection (d)(2) within 
45 days with the requested information necessary to make the 
application compliant, the Secretary shall approve or 
disapprove such application not later than 45 days following 
its resubmission or the end of the 120 period described in 
subsection (b), whichever is later.''
      33. (State Applic Review/Approval) Senate amendment 
contains no similar provision.
      HR
      34. (Interim Application) House bill contains no similar 
provision.
      HR
      35. (LEA Grants) House bill sends 95% of 80% to local 
educational agencies, with 60% based on title I and 40% based 
on school enrollment.
      Senate amendment sends 91% of 80% to local educational 
agencies, under one of two formulae:
            70% school enrollment and 30% state determined/
        greatest need based on objective data.
            70% greatest need competition based on objective 
        data and 30% state determined additional need based on 
        objective data.
      SR
      36. (Local Admin) Senate amendment contains no similar 
provision.
      SR with an amendment to strike ``1'' and insert ``2'' in 
its place.
      37. (Reallocation) Similar provisions.
      Senate amendment also has provision reallocating funds if 
local educational agency declines to apply or if application is 
disapproved.
      SR with an amendment inserting Senate (e) after House 
(3).
      38. (Reallocation) Similar provisions.
      LC
      39. (LEA Application) Similar provisions.
      LC
      40. (LEA Applic) Similar provisions, but Senate amendment 
specifies that consultation be done with an ``advisory 
council,'' which has a membership similar to the organizations 
listed in House bill, but also includes representatives of 
business, the medical professional, and law enforcement.
      Senate amendment outlines specific duties of the advisory 
council.
      SR with amendment to strike (c)(1)(A) and insert the 
following language:
                    ``(A) In general.--A local educational 
                agency shall develop its application through 
                timely and meaningful consultation with State 
                and local government representatives, 
                representatives of schools to be served 
                (including private schools), teachers and other 
                staff, parents, students, community-based 
                organizations, and others with relevant and 
                demonstrated expertise in drug and violence 
                prevention activities (such as medical, mental 
                health, and law enforcement professionals).''
      41. (Consultation) Senate amendment contains no similar 
provision.
      SR
      42. (LEA Applic) Similar provisions aligned.
      SR with an amendment to strike House (d)(1) and insert 
the following language:
      ``(d) Contents of Applications.--
            ``(1) In general.--An application submitted by a 
        local educational agency under this section shall 
        contain--
                    ``(A) an assurance that the activities or 
                programs to be funded comply with the 
                principles of effectiveness described in 
                section [ ] and foster a safe and drug-free 
                learning environment that supports academic 
                achievement.
                    ``(B) a detailed explanation of the local 
                educational agency's comprehensive plan for 
                drug and violence prevention, which shall 
                include a description of--
                            ``(i) how the plan will be 
                        coordinated with programs under this 
                        Act, other Federal, State, and local 
                        programs for drug and violence 
                        prevention, in accordance with the 
                        provisions of section 8306;
                            ``(ii) the local educational 
                        agency's performance measures for drug 
                        and violence prevention programs and 
                        activities, that shall consist of--
                                    ``(I) performance 
                                indicators for drug and 
                                violence prevention programs 
                                and activities; including
                                            ``(aa) specific 
                                        reductions in the 
                                        prevalence of 
                                        identified risk 
                                        factors;
                                            ``(bb) specific 
                                        increases in the 
                                        prevalence of 
                                        protective factors, 
                                        buffers, or assets if 
                                        any have been 
                                        identified; or
                                    ``(II) levels of 
                                performance for each 
                                performance indicator;
                            ``(iii) how such agency will assess 
                        and publicly report progress toward 
                        attaining its performance measures;
                            ``(iv) the drug and violence 
                        prevention activity or program to be 
                        funded, including how the activity or 
                        program will meet the principles of 
                        effectiveness described in section 
                        5115(a), and the means of evaluating 
                        such activity or program; and
                            ``(v) how the services will be 
                        targeted to schools and students with 
                        the greatest need;
                    ``(C) a specification for how the results 
                of evaluation of the effectiveness of the 
                prevention program will be used to refine, 
                improve, and strengthen the program;
                    ``(D) an assurance that funds under this 
                subpart will be used to increase the level of 
                State, local, and other non-Federal funds that 
                would, in the absence of funds under this 
                subpart, be made available for programs and 
                activities authorized under this subpart, and 
                in no case supplant such State, local, and 
                other non-Federal funds;
                    ``(E) a description of the mechanisms used 
                to provide effective notice to the community of 
                an intention to submit an application under 
                this title;
                    ``(F) an assurance that drug and violence 
                prevention programs supported under this part 
                convey a clear and consistent message that acts 
                of violence and the illegal use of drugs are 
                wrong and harmful;
                    ``(G) an assurance that the applicant has, 
                or the schools to be served have, a plan for 
                keeping schools safe and drug-free that 
                includes--
                            ``(i) appropriate and effective 
                        school discipline policies that 
                        prohibit disorderly conduct, the 
                        illegal possession of weapons, and the 
                        illegal use, possession, distribution, 
                        and sale of tobacco, alcohol, and other 
                        drugs by students;
                            ``(ii) security procedures at 
                        school and while students are on the 
                        way to and from school;
                            ``(iii) prevention activities that 
                        are designed to create and maintain 
                        safe, disciplined, and drug-free 
                        environments; and
                            ``(iv) a crisis management plan for 
                        responding to violent or traumatic 
                        incidents on school grounds; and
                            ``(v) a code of conduct policy for 
                        all students that clearly states 
                        responsibilities of students, teachers, 
                        and administrators in maintaining a 
                        classroom environment that allows a 
                        teacher to communicate effectively with 
                        all students in the class, allows all 
                        students in the class to learn, has 
                        consequences that are fair and 
                        appropriate, considers the student and 
                        the circumstances of the situation, and 
                        is enforced accordingly;
                    ``(H) an assurance that the application and 
                any waiver request will be available for public 
                review after submission of the application; and
                    ``(I) such other assurances, goals, and 
                objectives identified through scientifically 
                based research as the State may reasonably 
                require in accordance with the purpose of this 
                part.''
      43. (LEA Applic Review/Approval) House bill deems local 
application to be approved if approved if no response by 90 
days.
      Senate amendment requires peer review and provides 
factors for determining approval: quality of plan; extent of 
problem assessment; use of objective data and community input; 
measurable goals and objectives; use of scientifically based 
program.
      HR with an amendment to strike in Senate (c)(2)(A) ``and 
the extent . . . identified needs.''; and insert ``and the 
extent to which the application meets the Principles of 
Effectiveness in section (  ).''
      Insert the following language:
      ``(a) Considerations.--
            ``(i) General approval.--A local educational 
        agency's application submitted pursuant to subsection [ 
        ] shall be deemed to be approved by the SEA unless the 
        SEA makes a written determination, prior to the 
        expiration of the 120 day period beginning on the date 
        that the SEA receives the application, that the 
        application is in violation of this part.
            ``(ii) Disapproval.--The SEA shall not finally 
        disapprove an application, except after giving the 
        applicant notice and opportunity for a hearing.
            ``(iii) Special rule.--If the SEA finds that the 
        application is not in compliance, in whole or in part, 
        with the provisions of this part, the SEA shall:
                    ``(I) implement the procedures described in 
                subsection (c); and
                    ``(II) notify the applicant of the findings 
                of non-compliance where such notification 
                shall--
                            ``(A) cite the specific provisions 
                        in the application that are not in 
                        compliance; and
                            ``(B) request additional 
                        information, only as to those 
                        noncompliant provisions, needed to make 
                        the application compliant.
            ``(iv) If the applicant does not respond to the 
        notification described in subsection (iii)(II) within 
        45 days, such application is not approved.
            ``(v) If the applicant does respond to the SEA's 
        notification described in subsection (iii)(II) within 
        45 days with the requested information necessary to 
        make the application compliant, the SEA shall approve 
        or disapprove such application not later than 45 days 
        following its resubmission or the end of the 120 day 
        period described in subsection (b), whichever is 
        later.''
      44. (LEA Applic Review/Approval) Similar provisions.
      HR/SR to strike all language
      45. (Principles of Effectiveness) Senate amendment 
contains no similar provision.
      SR with an amendment to insert:
                    ``(D) Be based on an analysis, of data 
                reasonably available at the time, of the 
                prevalence of risk factors, including high or 
                increasing rates of reported cases of child 
                abuse and domestic violence, or protective 
                factors, buffers or assets or other variables 
                identified through scientifically based 
                research in schools and communities in the 
                State.''
                    ``(E) Include meaningful and ongoing 
                consultation with and input from parents in the 
                development of the application and 
                administration of the program or activity.''
      Report Language--
      The Conferees wish to clarify that the principles of 
effectiveness established under section [  ] are intended to 
increase the efficacy of drug and violence prevention 
activities in states, communities, and schools, but are not 
intended to result in the Secretary requiring State or local 
educational agencies to use specific programs.
      46. (LEA Required Activ) Similar provisions.
      SR with an amendment to strike language in section 
5115(b)(1)(A) and replace with ``foster a safe and drug-free 
learning environment that supports academic achievement;'' and 
to strike the language in section 5115(b)(1)(C)(i) and replace 
with ``prevent or reduce violence; the use, possession, and 
distribution of illegal drugs; and delinquency; and''.
      47. (LEA Uses of Funds) Similar provisions.
      See Senate amendment section 4303, p. 72, Note #85.
      See Senate amendment section 1115B.
      SR with amendment to strike House language in insert the 
following language:

``Local Allowable Uses of Funds

           *       *       *       *       *       *       *


            ``(2) Authorized activities.--Each local 
        educational agency, or consortium of such agencies, 
        that receives a subgrant under this subpart may use 
        such funds to carry out activities that comply with the 
        principles of effectiveness described in section 
        5115(a), such as--
                    ``(A) Age appropriate and developmentally 
                based activities that--
                            ``(i) address the consequences of 
                        violence and the illegal use of drugs, 
                        as appropriate.
                            ``(ii) promote of a sense of 
                        individual responsibility.
                            ``(iii) teach students that most 
                        people do not illegally use drugs
                            ``(iv) teach students to recognize 
                        social and peer pressure to use drugs 
                        illegally and the skills for resisting 
                        illegal drug use
                            ``(v) teach students about the 
                        dangers of emerging drugs
                            ``(vi) engage students in the 
                        learning process
                            ``(vii) incorporate activities in 
                        secondary schools that reinforce 
                        prevention activities implemented in 
                        elementary schools.
                    ``(B) Activities that involve families, 
                community sectors (which may include 
                appropriately trained seniors), and a variety 
                of drug and violence prevention providers in 
                setting clear expectations against violence and 
                illegal use of drugs and appropriate 
                consequences for violence and illegal use of 
                drugs.
                    ``(C) drug and violence prevention 
                information dissemination to schools and the 
                community.
                    ``(D) professional development and training 
                for and involvement of school personnel, pupil 
                services personnel, parents, and interested 
                community members in prevention, education, 
                early identification and intervention, 
                mentoring, or rehabilitation referral, as 
                related to drug and violence prevention.
                    ``(E) Drug and violence prevention 
                activities that may include
                            ``(i) Community-wide planning and 
                        organization activities to reduce 
                        violence and illegal drug use, which 
                        may include gang activity prevention
                            ``(ii) (1) In general.--To the 
                        extent that expenditures do not exceed 
                        20 percent of the amount made available 
                        to a local educational agency under 
                        this subpart (except that this 
                        subparagraph shall not apply to (e)), 
                        student and school security activities, 
                        including--
                                    ``(a) acquiring and 
                                installing metal detectors, 
                                electronic locks, surveillance 
                                cameras, or other related 
                                equipment and technologies;
                                    ``(b) reporting criminal 
                                offenses on school property;
                                    ``(c) developing 
                                comprehensive school security 
                                assessments;
                                    ``(d) supporting safe zones 
                                of passage activities that 
                                ensure that students travel 
                                safely to and from school, 
                                which may include bicycle and 
                                pedestrian safety program; and
                                    ``(e) hiring and mandatory 
                                training, based on scientific 
                                research, of school security 
                                personnel (including school 
                                resource officers) who interact 
                                with students in support of 
                                youth drug and violence 
                                prevention activities under 
                                this part that are implemented 
                                in the school.
                            ``(2) Limitation.--A local 
                        educational agency shall only use funds 
                        received under this part for activities 
                        described in (1)(a) through (d) if 
                        funding for such activities is not 
                        received from other federal agencies.
                            ``(3) Special rule.--Not more than 
                        40 percent of the amount made available 
                        to a local educational agency under 
                        this part may be spent on activities 
                        described in (e).
                            ``(4) Definition.--A school 
                        resource officer is a career law 
                        enforcement officer, with sworn 
                        authority, deployed in community 
                        oriented policing, and assigned by the 
                        employing police department to a local 
                        educational agency to work in 
                        collaboration with schools and 
                        community based organizations to
                                    ``(a) Educate students in 
                                crime prevention and safety;
                                    ``(b) Develop or expand 
                                community justice initiatives 
                                for students; and
                                    ``(c) Train students in 
                                conflict resolution, 
                                restorative justice, and crime 
                                awareness.
                        Legislative Counsel to redraft to 
                        reflect the agreement that the 
                        activities of (a) through (d) cannot 
                        exceed 20 percent and (a) through (d) 
                        in conjunction with (e) cannot exceed 
                        40 percent.
                            ``(iii) expanded and improved 
                        school-based mental health services 
                        related to illegal use of drugs and 
                        violence, including early 
                        identification of violence and illegal 
                        drug use, assessment, and direct or 
                        group counseling services provided to 
                        students, parents, families, and school 
                        personnel by qualified school based 
                        mental health services providers
                            ``(iv) conflict resolution 
                        programs, including peer mediation 
                        programs that educate and train peer 
                        mediators and a designated faculty 
                        supervisor and youth anti-crime and 
                        anti-drug councils and activities
                            ``(v) alternative education 
                        programs or services for violent or 
                        drug abusing students that reduce the 
                        need for suspension or expulsion or 
                        that serve students who have been 
                        suspended or expelled from the regular 
                        educational settings, including 
                        programs or services to assist students 
                        to make continued progress toward 
                        meeting the state academic achievement 
                        content standards and to reenter the 
                        regular education setting
                            ``(vi) counseling, mentoring, 
                        referral services, and other student 
                        assistance practices and programs, 
                        including assistance provided by 
                        qualified school based mental health 
                        services providers and the training of 
                        teachers by school based mental health 
                        services providers in appropriate 
                        identification and intervention 
                        techniques for students at risk of 
                        violent behavior and illegal use of 
                        drugs
                            ``(vii) programs that encourage 
                        students to seek advice from and to 
                        confide in a trusted adult regarding 
                        concerns about violence and illegal 
                        drug use
                            ``(viii) drug and violence 
                        prevention activities designed to 
                        reduce truancy
                            ``(ix) age-appropriate, 
                        developmentally based violence 
                        prevention and education programs that 
                        address victimization associated with 
                        prejudice and intolerance, and that 
                        include activities designed to help 
                        students develop a sense of individual 
                        responsibility and respect for the 
                        rights of others, and to resolve 
                        conflicts without violence;
                            ``(x) consistent with the fourth 
                        amendment to the Constitution of the 
                        United States, the testing of a student 
                        for illegal drug use or the inspecting 
                        of a student's locker for weapons or 
                        illegal drugs or drug paraphernalia, 
                        including at the request of or with the 
                        consent of a parent or legal guardian 
                        of the student, if the local 
                        educational agency elects to so test or 
                        inspect
                            ``(xi) emergency intervention 
                        services following traumatic crisis 
                        events, such as a shooting, major 
                        accident, or a drug-related incident, 
                        that have disrupted the learning 
                        environment
                            ``(xii) establishing or 
                        implementing a system for transferring 
                        suspension and expulsion records, 
                        consistent with 20 U.S.C. 1232g, by a 
                        local educational agency to any public 
                        or private elementary or secondary 
                        school
                            ``(xiii) developing and 
                        implementing character education 
                        programs as a component of a drug and 
                        violence prevention program that take 
                        into account the views of parents of 
                        the students for whom the program is 
                        intended and such students, such as a 
                        program described in[character 
                        education cite]
                            ``(xiv) establishing and 
                        maintaining a school safety hotline
                            ``(xv) community-service, including 
                        community-service performed by expelled 
                        students, and service-learning projects
                            ``(xvi) conducting a nationwide 
                        background check of each local 
                        educational agency employee, regardless 
                        of when hired, and prospective 
                        employees for the purpose of 
                        determining whether the employee or 
                        prospective employee has been convicted 
                        of a crime that bears upon the 
                        employee's fitness--
                                    ``(1) to have 
                                responsibility for the safety 
                                or well-being of children
                                    ``(2) to serve in the 
                                particular capacity in which 
                                the employee or prospective 
                                employee is or will be 
                                employed, or
                                    ``(3) to otherwise be 
                                employed at all by the local 
                                educational agency
                            ``(xvii) programs to train school 
                        personnel to identify warning signs of 
                        youth suicide and to create an action 
                        plan to help youth at risk of suicide
                            ``(xviii) programs that respond to 
                        the needs of students who are faced 
                        with domestic violence or child abuse
                    ``(F) the evaluation of any of the 
                activities authorized under this subsection and 
                the collection of objective data used to assess 
                program needs, program implementation, or 
                program success in achieving program goals and 
                objectives''
      Report Language:
      The Conferees support the ability of local educational 
agencies to address the needs of students who are victims of 
varying situations involving violence and drug abuse (such as 
familial drug abuse and dating violence) and to promote safe 
environments for students.
      48. (School Uniforms) House bill contains no similar 
provision.
      HR
      49. (Impact Eval) Senate amendment provides for the 
Secretary in consultation with the National Advisory Committee 
to conduct an independent biennial report with specific 
required elements, including data collected by the NCES under 
(a)(2)
      House bill for NCES to collect data and the Secretary to 
report on certain data.
      HR with an amendment to insert ``and drug use'' after 
``combat violence'' in (1); insert ``comply with the Principles 
of Effectiveness'' after ``agency programs'' in (A); strike 
(A)(i) through (v) and strike (B); in (C) insert ``illegal'' 
before ``presence'' and strike ``firearms'' and insert 
``weapons''; and in (D) strike ``voluntary''.
      50. (State Report) Similar provisions, but House bill 
requires a state report every 3 years and Senate amendment 
requires a state report every 2 years.
      HR
      51. (LEA Report) Similar provisions, but Senate amendment 
contains a January 1 deadline.
      HR
      52. (Native Hawaiians) House bill contains no similar 
provision.
      HR
      53. (National Programs) House bill limits evaluation to 
effectiveness.
      Senate amendment authorizes prevention programs.
      HR with an amendment to strike ``at all educational 
levels from preschool through the post-secondary level.''
      54. (Coordination) Senate amendment contains a similar 
provision in (a).
      HR
      55. (National Activities) House bill addresses 
demonstration and evaluation.
      Senate amendment addresses information dissemination, 
child abuse prevention, program evaluation, direct services, 
and other activities.
      HR with an amendment to strike all and insert--

``SECTION 5131. NATIONAL ACTIVITIES.

           *       *       *       *       *       *       *


            ``(3) Programs--Activities described in paragraph 
        (1) may include--
                    ``(A) the development and demonstration of 
                innovative strategies for the training of 
                school personnel, parents, and members of the 
                community for drug and violence prevention 
                activities, based on state and local needs;
                    ``(B) the development, demonstration, 
                scientifically based evaluation, and 
                dissemination of innovative and high quality 
                drug and violence prevention programs and 
                activities, based on State and local needs, 
                which may include--;
                            ``(i) alternative education models, 
                        either established within a school or 
                        separate and apart from an existing 
                        school, that are designed to promote 
                        drug and violence prevention, reduce 
                        disruptive behavior, to reduce the need 
                        for repeat suspensions and expulsions, 
                        to enable students to meet challenging 
                        State academic standards, and to enable 
                        students to return to the regular 
                        classroom as soon as possible;
                            ``(ii) community service and 
                        service-learning projects, designed to 
                        rebuild safe and healthy neighborhoods 
                        and increase students' sense of 
                        individual responsibility;
                            ``(iii) video-based projects 
                        developed by noncommercial 
                        telecommunications entities that 
                        provide young people with models for 
                        conflict resolution and responsible 
                        decisionmaking; and
                            ``(iv) child abuse education and 
                        prevention programs for elementary and 
                        secondary students
                    ``(C) the provision of information on drug 
                abuse education and prevention to the Secretary 
                of Health and Human Services for dissemination;
                    ``(D) the provision of information on 
                violence prevention and education and school 
                safety to the Department of Justice for 
                dissemination
                    ``(E) technical assistance to chief 
                executive officers, State agencies, local 
                educational agencies, and other recipients of 
                funding under this part to build capacity to 
                develop and implement high-quality, effective 
                drug and violence prevention programs 
                consistent with the principles of 
                effectiveness.
                    ``(F) assistance to school systems 
                afflicted with especially severe drug and 
                violence problems, including for the hiring of 
                drug prevention and school safety coordinators, 
                or to support crisis situations and appropriate 
                response efforts;
                    ``(G) the development of education and 
                training programs, curricula, instructional 
                materials, and professional training and 
                development for preventing and reducing the 
                incidence of crimes and conflicts motivated by 
                hate in localities most directly affected by 
                hate crimes;
                    ``(H) activities in communities designated 
                as empowerment zones or enterprise communities 
                that will connect schools to community-wide 
                efforts to reduce drug and violence problems; 
                and
                    ``(I) other activities in accordance with 
                the purposes of this part, based on State and 
                local needs.''
      Report Language.--``The Conferees understand that 
children are especially susceptible to the terrible emotional 
and mental anguish that terrorist attacks can cause. The 
Conferees intend that crisis situations may include terrorist 
attacks and that the Secretary may use funds to support school 
based mental health services for children and school personnel 
to respond to the mental health needs resulting from a 
terrorist attack.''
      56. (Peer Review) Similar provisions.
      LC
      57. (Gun Free Schools) Similar provisions, excepted as 
noted.
      Senate amendment only allows modification of 1 year 
expulsion rule when modification is in writing.
      Senate amendment denies funds to LEAs without policy, 
whereas House bill affirms requirement.
      HR with an amendment to strike ``weapon'' and insert 
``firearm'' throughout and to strike Senate (Sec. 4202 (b) and 
insert current law 14602(b).
      58. (Gun Free Schools) Similar provisions.
      LC
      59. (Gun Free Schools) Similar provisions.
      LC--use firearm
      60. (Gun Free Schools) Senate amendment provides for an 
annual report from the state to the Secretary.
      HR
      61. (Gun Free Schools) Senate amendment provides 
exception for weapon lawfully stored in vehicle or approved by 
LEA.
      HR
      62. (Gun Free Schools) Similar provisions.
      LC
      63. (Gun Free Schools) Similar provisions.
      See Senate amendment sec. 17(d) for similar home school 
provision.
      SR
      64. (Definitions) Similar provisions.
      See side-by-side HR/SR with an amendment:
      Strike House section 5151(1);
            Strike Senate section 4131(1);
            SR to House section 5151(2), (3), (4);
            HR on Senate section 4131(2)(C);
            HR on Senate section 4131(3);
            LC on House section 5151(5) and Senate section 
        4131(4);
            HR on Senate section 4131(5), (6), (7);
            LC on House section 5151(6) and Senate section 
        4131(8);
            SR on House section 5151(7);
            SR on House section 5151(8) with an amendment to 
        strike ``guidance'';
            LC on House section 5151(9) [eliminate if identical 
        to general definition]
      65. (Message and Materials) Similar provisions.
      Senate amendment allows Secretary to evaluate curricula.
      SR with an amendment in (a) to insert ``and violence'' 
after ``Drug''; to strike ``is'' after ``drugs''; and to insert 
``and acts of violence are'' after ``drugs''.
      SR on (b).
      66. (Parental Consent) Senate amendment contains no 
similar provision.
      SR
      67. (Prohibited Uses) Similar provisions.
      HR with an amendment to strike ``alcohol, tobacco, or''
      68. (IDEA) House bill requires each State to require LEAs 
to have a policy permitting school personnel to discipline 
children with a disability and without a disability in the same 
manner in situations involving weapons, illegal drugs or 
controlled substances, or aggravated assault or battery.
      Senate amendment allows SEAs and LEAs to implement 
uniform policies regarding discipline and order for all 
children.
      HR/SR to strike both
      69. (IDEA) House bill and Senate amendment allow 
disciplinary action to be modified on a case-by-case basis.
      HR/SR to strike both
      70. (IDEA) Similar provisions.
      HR/SR to strike both
      71. (IDEA) House bill allows educational services to 
cease if the State does not require continued services for 
children with children without disabilities who are expelled or 
suspended.
      Senate amendment requires continuation of services when 
the behavior is a manifestation of the child's disability. If 
behavior is not a manifestation of the child's disability, the 
same disciplinary procedures that would apply to a non-disabled 
child may be applied.
      HR/SR to strike both
      72. (IDEA) House bill contains no similar provision.
      SR
      73. (IDEA) Senate amendment contains no similar 
provision.
      HR
      74. (IDEA) House bill contains no similar provision.
      SR
      75. (Coordinator Initiative) House bill contains no 
similar provision.
      HR with an amendment to include this initiative as an 
allowable program under the national authority.
      76. (Advisory Committee) House bill contains no similar 
provision.
      HR and include the following as Report Language:
      The Conferees intend that the Advisory Council provide 
advice to the Secretary regarding the improvement of drug and 
violence prevention programs, and that grant-making authority 
rests solely with the Secretary.
      77. (Hate Crime) House bill contains no similar 
provision.
      HR
      78. (Domestic Violence) House bill contains no similar 
provision.
      HR with an agreement to move to Subpart 17 of Title V, 
Part D (FIE).
      79. (Community Service) House bill contains no similar 
provision.
      HR with an amendment to include this initiative as an 
allowable program under the national authority.
      80. (Suicide Prevention) House bill contains no similar 
provision.
      SR
      81. (Mental Health) House bill contains no similar 
provision.
      HR with an agreement to move redrafted provision to 
Subpart 14 of Title V, Part D (FIE).
      82. (Quality Rating) House bill contains no similar 
provision.
      SR
      83. (School Safety and Violence Prevention) House bill 
contains no similar provision, but generally is duplicative of 
Safe and Drug-free state grants program.
      SR
      84. (School Uniforms) House bill contains no similar 
provision.
      SR
      85. (Discipline Records Transfers) House bill contains 
similar provision; see House bill section 5115(b)(2)(O), p. 33, 
Note #47.
      HR
      86. (Background Checks) House bill contains no similar 
provision.
      HR
      87. (Reporting of School Violence) House bill contains a 
similar use of funds in state grant program; see House bill 
section 5115(b)(2)(R), p.33, Note #47
      SR
      88. (Security Technology Center) House bill contains no 
similar provision.
      HR with an amendment to include this initiative as an 
allowable program under the national authority.
      89. (Local Security Program) House bill contains no 
similar provision.
      SR with an amendment to include as an allowable use of 
local funds subject to the 20 percent cap.
      90. (Advisory Report) House bill contains no similar 
provision.
      SR
      91. (School Safety Enhancement) House bill contains no 
similar provision.
      SR
      92. (National Center for School and Youth Safety) House 
bill contains no similar provision.
      HR with an amendment to include this initiative as an 
allowable program under the national authority.
      93. (Safe Communities, Safe Schools) House bill contains 
no similar provision.
      SR
      94. (Environmental Tobacco) House bill contains no 
similar provision.
      HR
      95. (Environmental Tobacco) House bill contains no 
similar provision.
      HR
      96. (Environmental Tobacco) House bill contains no 
similar provision.
      HR
      97. (Alcohol Abuse) House bill contains no similar 
provision.
      HR with an amendment to include this initiative as an 
allowable program under the national authority.

            Title V, Part A, Subpart 2--21st Century Schools

                         (New Title IV, Part B)

      1. Senate amendment maintains both the 21st Century 
Community Learning Centers program and the Safe and Drug-Free 
Schools and Communities as separate programs.
      House bill includes both programs under one act.
      SR with an amendment to make it a separate part.
      2. Similar provisions, but House bill focuses services on 
students, and Senate amendment includes families and students.
      HR to Senate purpose.
      HR with an amendment to add ``counseling programs'' in 
list under (2).
      HR with an amendment to strike in (3) ``lifelong learning 
and'' and add `` and related educational'' after ``literacy''.
      Report Language:
      The Conferees recognize that counseling programs may 
include mental health services.
      3. Senate amendment authorizes awards to CLCs that serve 
students who primarily attend schoolwide schools or schools 
with a high percentage of students from low income families.
      SR
      (House bill primarily targets schools eligible for 
schoolwide programs under section 1114 in state application--
see section 5122.)
      4. Both House bill and Senate amendment provide for 
reservations and continuation grants--see House bill section 
5111 (4).
      Senate amendment allows 1% for outlying areas and BIA.
      HR
      5. Both House bill and Senate amendment send funds to 
States based on a formula. House bill sends funds based 50% on 
school-age population and 50% on Title I, part A.
      Senate amendment sends funds based on Title I, part A.
      Similar provisions.
      Similar provisions--see House bill section 5151 (9).
      HR
      6. Senate amendment contains no similar provision.
      SR
      7. Senate amendment contains no similar provisions.
      SR
      8. Senate amendment contains no similar provision.
      SR with an amendment to allow 2% for state 
administration.
      9. House bill allows 4% for monitoring, evaluations, and 
technical assistance.
      SR with amendment to include Senate section 1607(b)(1) 
(A) and (B) to House 5121(c)(2).
      SR with an amendment to include Senate 1607(b)(2) to 
House 5121 (c)(3) (A) and (B) with 3% for State activities.
      Senate amendment allows 3% for planning, peer review, and 
supervision and 3% for evaluation, training, and technical 
assistance.
      10. House bill and Senate amendment contain similar 
provisions, additionally:
      HR/SR with an amendment to insert the following language:

``SEC. 5122. STATE APPLICATION.

      ``(a) In General.--In order to receive an allotment under 
section 5121(a) for any fiscal year, a State Educational Agency 
shall submit to the Secretary, at such time as the Secretary 
may require, an application that--
            ``(1) designates the State educational agency as 
        the agency responsible for the administration and 
        supervision of programs assisted under this part;
            ``(2) describes how the State Educational Agency 
        will use funds received under this part, including 
        funds reserved for State-level activities;
            ``(3) contains an assurance that the State 
        Educational Agency will make awards under this part 
        only to eligible entities that propose to serve--
                    ``(A) students who primarily attend--
                            ``(i) schools eligible for 
                        schoolwide programs under section 1114; 
                        or
                            ``(ii) schools that serve a high 
                        percentage of students from low-income 
                        families; and
                    ``(B) the families of students described in 
                subparagraph (A);
            ``(4) describes the procedures and criteria the 
        State Educational Agency will use for reviewing 
        applications and awarding funds to eligible entities on 
        a competitive basis, which shall include procedures and 
        criteria that take into consideration the likelihood 
        that a proposed center will help participating students 
        meet local content and performance standards by 
        increasing their academic performance and achievement;
            ``(5) describes how the State Educational Agency 
        will ensure that awards made under this part are--
                    ``(A) of sufficient size and scope to 
                support high-quality, effective programs that 
                are consistent with the purpose of this part; 
                and
                    ``(B) in amounts that are consistent with 
                section [1608(b)];
            ``(6) describes the steps the State Educational 
        Agency will take to ensure that programs implement 
        effective strategies, including providing ongoing 
        technical assistance and training, evaluation, and 
        dissemination of promising practices;
            ``(7) describes how funds under this part will be 
        coordinated with programs under this Act, and other 
        programs; as appropriate, in accordance with the 
        provisions of section 8306;
            ``(8) contains an assurance that the State 
        Educational Agency--
                    ``(A) will make awards for programs of 3 to 
                5 year duration; and
                    ``(B) will require each eligible entity 
                seeking such an award to submit a plan 
                describing how the center to be funded through 
                the award will continue after funding under 
                this part ends;
            ``(9) contains an assurance that funds appropriated 
        to carry out this part will be used to supplement, and 
        not supplant, other Federal, State, and local public 
        funds expended to provide programs and activities 
        authorized under this part and other similar 
        activities;
            ``(10) contains an assurance that the State 
        Educational Agency will require eligible entities to 
        describe in their applications under section 1609 how 
        the transportation needs of participating students will 
        be addressed;
            ``(11) provides an assurance that the application 
        was developed in consultation and coordination with 
        appropriate State officials, including the chief State 
        school officer, and other state agencies administering 
        before and after school (including during summer recess 
        periods) programs, the heads of the State health and 
        mental health agencies or their designees, 
        representatives of teachers, parents, students, the 
        business community, and community-based organizations;
            ``(12) describes the results of the State's needs 
        and resources assessment for before and after school 
        activities, which shall be based on the results of on-
        going State evaluation activities;
            ``(13) describes how the State Educational Agency 
        will evaluate the effectiveness of programs and 
        activities carried out under this part which shall 
        include at a minimum--
                    ``(A) a description of the performance 
                indicators and performance measures that will 
                be used to evaluate programs and activities; 
                and
                    ``(B) public dissemination of the 
                evaluations of programs and activities carried 
                out under this part; and
            ``(14) provides for timely public notice of intent 
        to file application and an assurance that the 
        application will be available for public review after 
        submission of the application.''
      House bill primary targets students at schoolwide 
eligible schools.
      Senate amendment targets students who attend schoolwide 
schools or schools with students from low-income families.
      Similar provisions are aligned.
      See House bill sec. 5123(d).
      See House bill sec 5123(b).
      11. No similar Senate amendment provision.
      SR with amendment to strike House language and insert the 
following language:
      ``(b) General Approval.--A State educational agency's 
application submitted pursuant to subsection (a) shall be 
deemed to be approved by the Secretary unless the Secretary 
makes a written determination, prior to the expiration of the 
120 day period beginning on the date that the Secretary 
receives the application, that the application is in violation 
of this part.
      ``(c) Disapproval.--The Secretary shall not finally 
disapprove an application, except after giving the State 
educational agency notice and opportunity for a hearing.
      ``(d) Special Rule.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with the 
provisions of this part, the Secretary shall:
            ``(1) implement the procedures described in 
        subsection (c); and
            ``(2) notify the State educational agency of the 
        findings of non-compliance where such notification 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to those noncompliant provisions, needed to 
                make the application compliant.
      ``(e) If the State educational agency does not respond to 
the notification described in subsection (d)(2) within 45 days, 
such application is not approved.
      ``(f) If the State educational agency does respond to the 
Secretary's notification described in subsection (d)(2) within 
45 days with the requested information necessary to make the 
application compliant, the Secretary shall approve or 
disapprove such application not later than 45 days following 
its resubmission or the end of the 120 period described in 
subsection (b), whichever is later.''
      12. House bill distributes 95% to the local level. Senate 
amendment distributes 94% to the local level.
      SR
      13. House bill and Senate amendment contain similar 
provisions aligned, additionally:
      House bill includes principles of effectiveness 
requirements and limits to before and after school activities.
      HR/SR with an amendment to insert the following language: 
(APPLICATION) SECTION 5125
      ``(b) Eligibility.--
            ``(1) In general.--To be eligible to receive an 
        award under this part, an eligible entity shall submit 
        an application to the State at such time, in such 
        manner, and including such information as the State may 
        reasonably require. Each such application shall 
        include--
                    ``(A) a description of the before and after 
                school activity to be funded including--
                            ``(i) an assurance that the program 
                        will take place in a safe and easily 
                        accessible facility;
                            ``(ii) a description of how 
                        students participating in the program 
                        carried out by the center will travel 
                        safely to and from the center and home;
                            ``(iii) a description of how the 
                        eligible applicant will disseminate 
                        information about the project 
                        (including its location) to the 
                        community in a manner that is 
                        understandable and accessible.
                    ``(B) a description of how the activity is 
                expected to improve student academic 
                performance;
                    ``(C) an identification of Federal, State, 
                and local programs that will be combined or 
                coordinated with the proposed program in order 
                to make the most effective use of public 
                resources;
                    ``(D) an assurance that the proposed 
                program was developed, and will be carried out, 
                in active collaboration with the schools the 
                students attend;
                    ``(E) a description of how the activity 
                will meet the principles of effectiveness 
                described in [section 5124];
                    ``(F) an assurance that the program will 
                primarily target students who attend schools 
                eligible for schoolwide programs under section 
                1114 and the families of such students;
                    ``(G) an assurance that funds under this 
                part will be used to increase the level of 
                State, local, and other non-Federal funds that 
                would, in the absence of funds under this part, 
                be made available for programs and activities 
                authorized under this part; and in no case 
                supplant Federal, State, local, or non-Federal 
                funds;
                    ``(H) a description of the partnership 
                between a local educational agency, a 
                community-based organization, and another 
                public entity or private entity, if 
                appropriate;
                    ``(I) an evaluation of the needs, available 
                resources, and goals and objectives for the 
                proposed community learning center and a 
                description of how the program proposed to be 
                carried out in the center will address those 
                needs (including the needs of working 
                families); and
                    ``(J) a demonstration that the eligible 
                entity has experience, or promise of success, 
                in providing educational and related activities 
                that will complement and enhance the students' 
                academic performance and achievement and 
                positive youth development;
                    ``(K) a description of a preliminary plan 
                for how the center will continue after funding 
                under this part ends; and
                    ``(L) an assurance that the community will 
                be given notice of an intent to submit an 
                application and that the application and any 
                waiver request will be available for public 
                review after submission of the application; and
                    ``(M) if the entity plans to use senior 
                volunteers in activities carried out through 
                the center, a description of how the entity 
                will encourage and use appropriately qualified 
                seniors to serve as the volunteers;
                    ``(N) such other information and assurances 
                as the State may reasonably require.''
      14. (I) appeared in an accepted amendment in the Senate 
amendment, but was not executed in the correct section in the 
engrossed Senate amendment--see page 1185 of Senate Amendment.
      HR
      15. House bill and Senate amendment contain similar 
provisions, but Senate amendment also includes ``unit of 
general purpose local government.''
      SR with an amendment to change ``private organization'' 
to ``private entity'' and move to 21st Century definitions; and 
strike the ``and'' after ``community-based organization,''
      16. House bill requires peer review for local 
applications, while the Senate amendment authorizes 3% of a 
State's allocation for peer review, among other activities--see 
Senate amendment sec. 1607(b)(1).
      SR
      17. House bill requires equitable geographical 
distribution.
      Senate amendment requires urban/rural equitable 
distribution--see Senate bill sec. 1606(5)(B).
      SR with an amendment to add at end ``including urban and 
rural communities''.
      18. House bill provides for awards of 3-5 years.
      Senate amendment provides for awards of up to 4 years--
see Senate sec. 1601(5)(A).
      SR
      19. House bill and Senate amendment contain similar 
provisions.
      LC
      20. House bill gives a priority to programs proposing to 
serve students who attend schools identified as needing 
improvement under section 1116 and schoolwides under section 
1114.
      Senate amendment gives an equal priority to title I 
schools, community-based organizations, and consortia of the 
two.
      HR with an amendment to take House language but strike 
``proposing to'' and add ``that will''.
      HR with an amendment to substitute the following for 
Senate language:
      (b) Priority.--In making awards under this part, the SEA 
shall give priority to applications submitted jointly by LEAs 
receiving funds under Title I part A and community based 
organizations or other public or private entities.
      Special Rule--The SEA shall provide the same priority 
described in (b) to an LEA which applies and demonstrates that 
it is unable to partner with a community based organization 
that is in reasonable geographic proximity and of sufficient 
quality to meet the requirements of this part.
      21. Senate amendment allows for centers to be located 
outside of a school building if accessible and as effective as 
school-based program.
      House bill is silent on the location of a program.
      HR with an amendment to strike Senate language and to 
insert the following language:
      ``(c) Approval of Certain Applications.--The SEA may 
approve an application under this subpart for a program to be 
located in a facility other than an elementary school or a 
secondary school, only if the program will be at least as 
available and accessible to the students to be served as if the 
program were located in the school.''
      22. House bill contains no similar provision.
      HR with an amendment to move to section 5124(c) of the 
House bill, and substitute the following language:
      ``Programs that provide after-school activities for LEP 
students that emphasize language skills and academic 
achievement.''
      Report Language:
      The language expands the authorized activities to include 
those projects with emphasis on language skills and academic 
achievement programs for limited English proficient students. 
Such activities may include activities to successfully 
negotiate the classroom and school culture and environments 
that may be unfamiliar to LEP children and their families, such 
as standardized tests; the roles of teachers, classroom aides, 
and school administrators; student conduct codes; and after-
school sports, music, and clubs.
      23. Senate amendment contains no similar provision.
      SR with amendment to add at end of (1) ``or may not come 
from Federal or State sources''.
      24. Senate amendment contains no similar provision.
      SR with an amendment to strike ``extended learning 
opportunities'' and add ``opportunities for academic 
enrichment'' in (a)(1)(B) and (a)(2) with LC to make conforming 
amendments to this term.
      Insert in (a)(1)(A) ``(including summer school 
programs)'' following ``after school programs and activities''.
      25. House bill requires that activities provide for 
extended learning and academic reinforcement.
      HR
      26. Senate amendment contains no similar provision, but 
see Senate amendment sec. 1602 for similar list of activities.
      SR with an amendment to insert following language: (LOCAL 
ACTIVITIES) SECTION 5124
      ``(c) Authorized Activities.--Each eligible entity that 
receives a subgrant under this part may use such funds to carry 
out a broad array of activities, such as--
            ``(1) before and after school activities (including 
        summer school programs) that advance student 
        achievement, including--
                    ``(A) remedial education activities and 
                academic enrichment learning programs, 
                including providing additional assistance to 
                students in order to allow them to improve 
                their academic achievement;
                    ``(B) math and science education 
                activities;
                    ``(C) arts and music education activities;
                    ``(D) entrepreneurial education programs;
                    ``(E) tutoring services (including those 
                provided by senior citizen volunteers) and 
                mentoring programs;
                    ``(F) recreational activities;
                    ``(G) telecommunications and technology 
                education programs;
                    ``(H) expanded library service hours;
                    ``(I) programs that promote parental 
                involvement and family literacy; and
                    ``(J) programs that provide assistance to 
                students who have been truant, suspended, or 
                expelled to allow them to improve their 
                academic achievement; and
                    ``(K) drug and violence prevention 
                programs, counseling programs, and character 
                education programs; and
            ``(2) establishing or enhancing programs or 
        initiatives that improve academic achievement.''
      27. Similar definitions aligned:
      House bill assists students, while the Senate amendment 
assists students and families of such students.
      See House bill section 5122(a)(1).
      HR with an amendment.
      HR on ``(2) Covered Program''.
      SR on ``(4) State''.
      Insert the following language:
      Definition of Community Learning Center:
      For the purpose of this part, a `community learning 
center' is an entity that assists students to meet state and 
local academic achievement standards in core academic subjects, 
such as reading and mathematics, by providing them with 
opportunities for academic enrichment activities and a broad 
array of other activities (such as drug and violence 
prevention, counseling, art, music, recreation, technology, and 
character education programs) during non-school hours or 
periods when school is not in session (such as before and after 
school or during summer recess) that reinforce and complement 
the regular academic programs of the schools attended by the 
students served; and offers families of students served in such 
center opportunities for literacy and related educational 
development.
      28. House bill authorizes $900 million for fy2002 and 
such sums for 4 following years--see House bill sec. 5003.
      Senate amendment authorizes $1.5 billion for fy 2002 and 
such sums for following 6 years.
      HR to strike and insert the following authorizations--
FY02-$1.25 billion, FY03-$1.5 billion, FY04-$1.75 billion; 
FY05-$2 billion, FY06-$2.25 billion, FY07-$2.5 billion
      29. House bill contains no similar provisions.
      SR

        Title V, Part B--Enhancing Education Through Technology

                         (New Title II, Part D)

      1. The House bill has 8 purposes and no goal. The Senate 
amendment has 1 purpose and 2 goals.
      HR/SR with an amendment to insert the following language:
      Combination of House (1) and Senate (a):
      Purposes:
      ``To provide assistance to States and localities for the 
implementation and support of a comprehensive system that 
effectively uses technology in elementary and secondary schools 
to improve student academic achievement.''
      Maintain House (2)-(8)
      Goals:
      ``The primary goal of this part is to improve student 
academic achievement through the use of technology in 
elementary and secondary schools. The further goals of this 
part are to assist every student in crossing the digital divide 
by ensuring that every child is technologically literate by the 
time the child finishes the 8th grade, regardless of the 
child's race, ethnicity, gender, income, geography, or 
disability and to encourage the effective integration of 
technology resources and systems with teacher training and 
curriculum development to establish research-based methods that 
can be widely implemented into best practices by State and 
local educational agencies.''
      2. The House bill authorizes the State Technology grant 
program for 5 years. The Senate amendment authorizes it for 7 
years.
      LC
      3. The House bill includes $24.5 million for the Ready To 
Learn, Ready To Teach program in this section. The Senate 
amendment includes $50 million for a Ready to Learn program in 
section 11209 and $45 million for a Ready To Teach program in 
section 11258.
      HR/SR with an amendment to strike all language. (See 
notes 78-82).
      4. The House bill provides that not more than 5 percent 
may be made available for activities of the Secretary under 
subpart 2. The Senate amendment provides that not more than .5 
percent of the funds appropriated under subsection (a) may be 
used for the activities of the Secretary under section 2311.
      SR with an amendment to strike 5% and insert 2%.
      5. The House bill reserves $15 million out of national 
activities for a national technology study, but allows for 
other uses of funds out of national activities. The Senate 
amendment requires all funds under section 2311 to be used for 
an independent longitudinal study of effective uses of 
technology.
      SR (LC to draft legislative language)
      Policy: No more than 15 million over the course of 
authorization.
      6. The Senate amendment limits recipients to using not 
more than 5 percent of the funds made available under this part 
for administrative costs or technical assistance. The House 
bill allows States to use up to 5 percent of their allocation 
for State activities under section 5215(b), of which only 40 
percent may be for administrative costs.
      HR with an amendment to insert ``5% total, up to 3% 
administration''.
      7. The House bill and Senate amendment have completely 
different definitions.
      SR with an amendment to move House (1) to General 
Provisions;
      Strike ``scientifically-based research'' (3)(A) and 
insert ``a review of relevant research'';
      At end of (4)(A) insert ``and'' and strike ``and'' in 
(4)(B) and insert ``or''.
      LC--ensure that language is drafted so that the LEA is 
the fiscal agent of an eligible local partnership.
      8. Also, see notes (32) and (43) in Title 8 for the 
general definitions of a ``public telecommunications entity'' 
and ``technology.''
      SR--(see note 7).
      9. The House bill has a federal to state formula based 50 
percent on Title I and 50 percent on student age population. 
The Senate amendment has a federal to state formula based 100 
percent on Title I.
      HR
      10. The House bill reserves \1/2\ of 1 percent of funds 
for the Bureau of Indian Affairs and outlying areas. The Senate 
amendment reserves 0.75 percent for the Bureau of Indian 
Affairs and remains silent on outlying areas. However, the 
Senate amendment includes ``outlying areas'' in its definition 
of a ``State'' in section. 3 Definitions.
      SR with an amendment to allocate BIA .75 percent
      11. The Senate amendment allows continuation grants for 
sections 3136 and 3122. Under section 5212, the House bill 
allows two-year (or the duration of the original grant period 
if shorter) continuation grants for section 3132 (a)(2).
      HR with an amendment to strike reference to section 3122.
      12. The House bill and Senate amendment have similar 
reallotment of unused funds provisions.
      SR
      13. The Senate amendment prohibits a State whose minimum 
is below \1/2\ of 1 percent to receive a grant. The House bill 
prohibits a State grant to be less than \1/2\ of 1 percent.
      SR with an amendment to allocate BIA .75 percent
      14. The Senate amendment, but not the House bill, 
requires the Secretary to give priority when awarding grants to 
SEAs whose applications outline a strategy to carry out part E.
      SR
      15. The House bill requires the States to send out 60 
percent of the funds to the LEAs based on Title I and to 
compete the remaining 40 percent. The Senate amendment requires 
the States to compete 100 percent of funds.
      SR with an amendment to strike ``60'' in Sec. 5212 
(a)(2)(A) and insert ``50''; and strike ``40'' in Sec. 
5212(a)(2)(B) and insert ``50''; insert the following Special 
Rule:
    ``(x)(1) Special Rule.--In awarding a grant under section 
(competitive pot) the State educational agency shall--
          ``(A) determine which local educational agencies 
        received an allocation under section (formula pot) that 
        is not of sufficient size so as to allow for an 
        effective and sufficient investment consistent with the 
        purpose of this part;
          ``(B) give a priority to applications which received 
        the amount described in subparagraph (A); and
          ``(C) determine the minimum amount for awards under 
        section (competitive pot) to ensure grants are of 
        sufficient size so as to be effective.
    ``(2) Insufficient amount.--The State educational agency 
shall determine the sufficiency of amounts described in 
paragraph (1)(A) by taking into consideration the amount 
received by local educational agencies under section (formula 
pot) and whether such amount is of sufficient size so as to 
allow for an effective and sufficient investment consistent 
with the purpose of this part.''
      16. The Senate amendment includes Sufficiency, Priority, 
Distribution, and Technical Assistance language under this 
section. The House bill includes similar ``Sufficiency'' and 
``Technical Assistance'' language in section 5213 (8) and (9). 
The House bill has no Priority language under this section but 
places some emphasis on high-need LEAs in section 5213(b)(3). 
The House bill has no Distribution language.
      HR with an amendment to strike (C).
      17. The House bill includes Continuation of Award 
language under this section.
      HR
      18. Although similar in some instances, the House bill 
and Senate amendment have different State Application 
requirements.
      HR/SR with an amendment to:
      Maintain House (a);
      Combine House (b) with Senate (1-8);
      Insert the following language for notes 18-28:
      ``State Applications
      ``Each State application submitted under this section 
shall include the following:
            ``(1) an outline of the State's long-term 
        strategies for improving student academic achievement 
        including technology literacy, through the effective 
        use of technology in classrooms throughout the State, 
        including through improving the capacity of teachers to 
        effectively integrate technology into the curricula and 
        instruction;
            ``(2) a description of the State's goals for using 
        advanced technology to improve student achievement 
        aligned to challenging State academic standards and 
        student academic achievement standards;
            ``(3) a description of how the State will take 
        steps to ensure that all students and teachers in the 
        State, particularly those residing in or teaching in 
        districts served by high-need local educational 
        agencies, have increased access to technology;
            ``(4) a description of the process and 
        accountability measures that the State would use to 
        evaluate the effectiveness of the integration of 
        technology;
            ``(5) a description of how the State would 
        encourage the development and utilization of innovative 
        strategies for the delivery of specialized or rigorous 
        curricula through the use of technology and distance 
        learning technologies, particularly for those areas of 
        the State that would not otherwise have access to such 
        courses and curricula due to geographical isolation or 
        insufficient resources;
            ``(6) an assurance that financial assistance 
        provided under this subpart shall supplement, and not 
        supplant, State and local funds;
            ``(7) a description of how the plan incorporates 
        teacher education, professional development and 
        curricular development, and how the State would work to 
        ensure that teachers and principals in a State 
        receiving funds under this part are technologically 
        literate;
            ``(8) a description of how the State educational 
        agency would provide technical assistance to 
        applicants, especially those with the highest number or 
        percentage of children in poverty or with the greatest 
        need for technical assistance and (its) capacity for 
        providing such assistance;
            ``(9) a description of technology resources and 
        systems for the purpose of establishing best practices 
        that can be widely implemented by State and local 
        educational agencies;
            ``(10) a description of long-term strategies for 
        financing technology to ensure that all students, 
        teachers, and classrooms would have access to 
        technology;
            ``(11) a description of strategies for using 
        technology to increase parental involvement;
            ``(12) a description of how the SEA would ensure 
        that each grant awarded using funds described under 
        section 5212(a)(2)(B) is of sufficient duration, and of 
        sufficient size, scope, and quality, to carry out the 
        purpose of this part effectively;
            ``(13) a description of how the State will ensure 
        ongoing integration of technology into instructional 
        strategies and school curricula in all schools in the 
        State, so that technology will be fully integrated into 
        those schools by December 31, 2006; and
            ``(14) a description of how the local educational 
        agency will provide incentives to teachers who are 
        technologically literate to encourage such teachers to 
        remain in rural and urban areas, if applicable.
            ``(15) a description of how public and private 
        entities would participate in the implementation and 
        support of the plan.''
      19. The House bill and Senate amendment have similar 
language regarding long-term strategic plans.
      HR/SR--See note 18.
      20. The House bill and Senate amendment have similar 
language regarding the use of technology to improve student 
academic achievement and the teachers' ability to incorporate 
technology into the curricula and instruction.
      HR/SR--See note 18.
      21. The Senate amendment has duplicative provisions 
regarding teacher training, curricular development and use of 
technology resources and systems. See provisions (2) and (8). 
The House bill has no similar provisions.
      HR/SR--See note 18.
      22. The Senate amendment includes a provision regarding 
parental involvement. The House bill mentions it as an 
allowable State activity in section 5215(a)(3)(B)(i).
      HR/SR--See note 18.
      23. The Senate amendment requires States to develop a 
technology financing strategy to provide access to all 
students, teachers, and classrooms. The House bill requires 
States to describe how they will ensure increased access for 
all students and teachers particularly in high-need LEAs. The 
House bill also has language in section 5215(a)(2) on creating 
public-private partnerships to help high-need districts acquire 
technology.
      HR/SR--See note 18.
      24. The Senate amendment requires participation by 
private school teachers and students. The House bill has 
similar participation requirements in the General Provisions 
(title 8). See note 97.
      HR/SR--See note 18.
      25. The House bill and Senate amendment have similar 
supplement not supplant language.
      HR/SR--See note 18.
      26. The Senate amendment, but not the House bill, gives 
the Secretary the option to require other information on how 
States will provide assistance to LEAs that have the highest 
numbers or percentages of children and demonstrate the greatest 
need for technology, in order to improve student academic 
achievement.
      HR/SR--See note 18.
      27. The House bill has more specific language than the 
Senate amendment on the integration of technology, including a 
goal of December 31, 2006, accountability for such integration 
and its impact on student academic achievement.
      HR/SR--See note 18.
      28. The House bill, but not the Senate amendment, 
requires the States to describe how they will encourage 
distance learning and the delivery of specialized and rigorous 
academic courses, particularly for those areas that would not 
otherwise have access to such courses and curricula due to 
geographic isolation or lack of resources.
      HR/SR--See note 18.
      28. The House bill, but not the Senate amendment, has a 
goal of teachers and principals being computer-literate and 
proficient (as determined by the State) by December 31, 2006.
      HR/SR--See note 18.
      29. The House bill, but not the Senate amendment, 
includes Deemed Approval, Disapproval and Dissemination of 
Information on State Applications language.
      SR with amendment (this agreement would be based on the 
agreement to have one policy throughout the bill on this issue 
and is what we agreed to in 21st Century Community Learning 
Centers Note #11) to strike House language and to insert 
language to read as follows:
      ``(b) General Approval.--A State educational agency's 
application submitted pursuant to subsection (a) shall be 
deemed to be approved by the Secretary unless the Secretary 
makes a written determination, prior to the expiration of the 
120 day period beginning on the date that the Secretary 
receives the application, that the application is in violation 
of this part.
      ``(c) Disapproval.--The Secretary shall not finally 
disapprove an application, except after giving the State 
educational agency notice and opportunity for a hearing.
      ``(d) Special Rule.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with the 
provisions of this part, the Secretary shall:
            ``(1) implement the procedures described in 
        subsection (c); and
            ``(2) notify the State educational agency of the 
        findings of non-compliance where such notification 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to those noncompliant provisions, needed to 
                make the application compliant.
    ``(e) If the State educational agency does not respond to 
the notification described in subsection (d)(2) within 45 days, 
such application is not approved.
    ``(f) If the State educational agency does respond to the 
Secretary's notification described in subsection (d)(2) within 
45 days with the requested information necessary to make the 
application compliant, the Secretary shall approve or 
disapprove such application not later than 45 days following 
its resubmission or the end of the 120 day period described in 
subsection (b), whichever is later.''
      30. Although similar in many instances, the House bill 
and Senate amendment have different application requirements.
      HR/SR with an amendment to insert the following language 
for notes 30-48: And insert at the very end of the Technology 
section the Internet Filtering language verbatim from the FY 01 
Omnibus Appropriations bill.

                          ``Local Application

      ``Each local application described in this section shall 
include the following:
            ``(1) A description of how the applicant will use 
        Federal funds provided under this subpart to improve 
        the academic achievement, including technology 
        literacy, of all students and to improve the capacity 
        of all teachers to provide instruction through the use 
        of technology.
            ``(2) A description of the applicant's specific 
        goals for using advanced technology to improve student 
        achievement aligned to challenging State academic 
        content and student academic achievement standards.
            ``(3) A description of how the applicant will take 
        steps to ensure that all students and teachers in 
        schools served by the local educational agency have 
        increased access to educational technology, including 
        how it would use funds under this subpart, such as in 
        combination with other funds, to help ensure that 
        students in high poverty and high needs schools, or 
        schools identified for improvement under section 1116, 
        have access to technology and teachers are prepared to 
        integrate technology effectively into instruction.
            ``(4) A description of how the applicant will--
                    ``(A) promote teaching strategies and 
                curricula, based on a review of relevant 
                research, which effectively integrate 
                technology into instruction, leading to 
                improvements in student academic achievement as 
                measured by challenging State academic content 
                and student academic achievement standards; and
                    ``(B) provide ongoing, sustained 
                professional development for teachers, 
                principals, administrators, and school library 
                media personnel served by the local educational 
                agency to further the effective use of 
                technology in the classroom or library media 
                center, and if applicable include a list of 
                those entities that will partner with the local 
                educational agency in providing ongoing 
                sustained professional development;
            ``(5) A description of the type and costs of 
        technologies to be acquired, including services, 
        software, and digital curricula, including specific 
        provisions for interoperability among components of 
        such technologies.
            ``(6) A description of how the local educational 
        agency will coordinate the technology provided pursuant 
        to this part with other grant funds available for 
        technology from other Federal, State, and local 
        sources.
            ``(7) A description of how the applicant will 
        integrate technology (including software and other 
        electronically delivered learning materials) across the 
        curriculum and a time line for such integration.
            ``(8) A description of how the applicant will 
        encourage the development and utilization of innovative 
        strategies for the delivery of specialized or rigorous 
        academic courses and curricula through the use of 
        technology and distance learning, particularly for 
        those areas that would not otherwise have access to 
        such courses and curricula due to geographical 
        isolation or insufficient resources.
            ``(9) A description of how the local educational 
        agency will ensure the effective use of technology to 
        promote parental involvement and increase communication 
        with parents, including a description of how parents 
        will be informed of the use of technologies so that the 
        parents are able to reinforce at home the instruction 
        their child receives at school.
            ``(10) A description of how programs will be 
        developed in collaboration with existing adult literacy 
        service providers to maximize the use of such 
        technologies.
            ``(11) A description of the accountability measures 
        and process the applicant will use for the evaluation 
        of the extent to which funds provided under this 
        subpart were effective in integrating technology into 
        school curriculum, increasing the ability of teachers 
        to teach, and enabling students to meet challenging 
        State academic content and student academic achievement 
        standards.
            ``(12) A description of the supporting resources, 
        such as services, software, other electronically 
        delivered learning materials, and print resources, that 
        will be acquired to ensure successful and effective 
        uses of technologies.''
      31. The House bill and Senate amendment require an 
application that is consistent with the objectives found in the 
state-wide plan.
      HR/SR--See note 30.
      32. The House bill and Senate amendment require an 
explanation of how technology will improve student academic 
achievement and classroom instruction. The Senate amendment 
also includes improving technology literacy to that 
requirement.
      HR/SR--See note 30.
      33. The Senate amendment requires grantees to have 
reviewed relevant research. The House bill requires 
``scientifically-based research'' in several provisions.
      HR/SR--See note 30.
      34. The House bill and Senate amendment require 
information about how technology will be integrated into the 
curriculum. However, the House bill requires a timeline and 
attention to emerging technologies.
      HR/SR--See note 30.
      35. The Senate amendment requires technology to improve 
parental involvement and communication. The House bill has 
parental involvement language in sections 5215(a)(3)(B)(i) and 
5216(a)(2)(i).
      HR/SR--See note 30.
      36. The Senate amendment, but not the House bill, 
requires parents to be informed of technology uses so it can be 
reinforced at home.
      HR/SR--See note 30.
      40. The Senate amendment requires information on what 
type of technology is acquired and how it will be 
interoperable. The House bill only requires interoperability 
with previous title III technology funds.
      HR/SR--See note 30.
      41. The House bill and Senate amendment focus on 
professional development. However, the House bill focuses on 
teachers and principals, while the Senate amendment focuses on 
teachers, administrators, and library staff. The Senate 
amendment also requires a list of partner entities that provide 
professional development.
      HR/SR--See note 30.
      42. The Senate amendments, but not the House bill 
requires a description of the projected cost of technologies to 
be acquired and related expenses needed to implement the plan.
      HR/SR--See note 30.
      43. The House bill and Senate amendment require 
coordination with other Federal, State and local funds. The 
House bill specifically references titles II, IV, IDEA, and 
Vocational Education.
      HR/SR--See note 30.
      44. The House bill and Senate amendment somewhat similar 
language requiring an evaluation of how technology was 
integrated into the curriculum and its impact on teaching and 
students meeting State standards. The Senate amendment has 
duplicative evaluation in section 2308(a).
      HR/SR--See note 30.
      45. The Senate amendment requires participation by 
private school teachers and students. The House bill has 
similar participation requirements in the General Provisions 
(title 8). See note 97.
      HR/SR--See note 30.
      46. The House bill, but not the Senate amendment, 
requires applicants to take steps to ensure that all student 
and teachers, particularly those in high-poverty and high-need 
schools, have increased access to technology.
      HR/SR--See note 30.
      47. The House bill, but not the Senate amendment, 
requires the local applicants to describe how they will 
encourage distance learning and the delivery of specialized and 
rigorous academic courses, particularly for those areas that 
would not otherwise have access to such courses and curricula 
due to geographic isolation or lack of resources.
      HR/SR--See note 30.
      48. The House bill, but not the Senate amendment, has a 
second requirement for consistency with State-wide technology 
priorities and requires integration with previous technology 
funds.
      HR/SR--See note 30.
      49. The Senate amendment, but not the House bill, 
includes language on the Formation of Consortia and 
Coordination of Application Requirements.
      SR with an amendment to add the following at the end of 
Sec. 5212. Use of Allotment by State . . .
      ``Special Rule: A local educational agency for any fiscal 
year may apply for financial assistance as part of a consortium 
with other local educational agencies, institutions of higher 
education, educational service agencies, libraries, or other 
educational entities appropriate to provide local programs. The 
State educational agency may assist in the formation of 
consortia among local educational agencies, institutions of 
higher education, educational service agencies, libraries, or 
other appropriate educational entities to provide services for 
the teachers and students in a local educational agency at the 
request of such local educational agency.''
      LC--ensure that language is drafted so that the LEA is 
the fiscal agent of the consortium.
      50. The House bill, but not the Senate amendment, 
includes a section on State Activities. See notes (6), (22), 
(23) and (35).
      SR with an amendment to insert ``or other technologies'' 
after ``Internet'' in (3)(B)(i); Strike (b).
      51. Under this section, the House bill allows States to 
help LEAs provide access to technology to all students, 
including students with disabilities and limited English 
proficiency.
      SR
      52. Under this section, the House bill allows States to 
provide greater access to technology through libraries and with 
the support of the private sector. The Senate amendment 
requires States to describe how libraries can help increase 
access to technology under section 2305(4) and allows libraries 
to be part of a consortium with LEAs under section 2307(b). The 
Senate amendment also retains the Community Technology Centers 
as a separate program.
      HR with an amendment to strike requirement that States 
describe how libraries can help increase access to technology 
under section 2305(4).
      53. Under this section, the House bill allows States to 
collaborate with other States on distance learning.
      SR
      54. Although similar in substance, the House bill and 
Senate amendment have different local uses of funds.
      HR/SR with an amendment to insert the following language 
for notes 54-67:

                           ``Local Activities

      ``(a) Professional Development.--A recipient of funds 
made available under section 5212(a)(2)(A) shall use not less 
than 25 percent of such funds to provide ongoing, sustained and 
intensive, high-quality professional development, consistent 
with section 2033 (as applicable), in the integration of 
advanced technologies (including emerging technologies) into 
curriculum and in using those technologies to create new 
learning environments, such as professional development in the 
use of technology to--
            ``(1) access data and resources to develop 
        curricula and instructional materials;
            ``(2) enable teachers--
                    ``(i) to use the Internet and other 
                technology to communicate with parents, other 
                teachers, principals, and administrators; and
                    ``(ii) to retrieve Internet-based learning 
                resources; and
            ``(3) lead to improvements in classroom instruction 
        in the core academic subject areas, which effectively 
        prepare students to meet challenging State academic 
        content and student academic achievement standards, 
        including increasing student technology literacy.
Waiver.--Subsection (a) does not apply to a recipient of funds 
under section 5212(a)(2)(A) that demonstrates, to the 
satisfaction of the State educational agency, that such 
recipient already provides sustained and intensive, high 
quality professional development to all teachers in core 
curriculum subjects based on review of relevant research in the 
integration of technology (including emerging technologies) 
into the curriculum.
      ``(b) Other Activities.--In addition to the activities 
described in subsection (a), a recipient of funds distributed 
by a State under section 5212(a)(2)(A) shall use such funds to 
carry out other activities consistent with this subpart, which 
may include the following:
            ``(1) The establishment or expansion of 
        initiatives, particularly those involving public-
        private partnerships, designed to increase access to 
        technology for students and teachers, with special 
        emphasis on the access of high-need schools to 
        technology.
            ``(2) Adapting or expanding existing and new 
        applications of technology to enable teachers to 
        increase student academic achievement including 
        technology literacy through the use of teaching 
        practices that are based on a review of relevant 
        research and are designed to prepare students to meet 
        challenging State academic content and student academic 
        achievement standards, and for developing and utilizing 
        innovative distance education strategies to deliver 
        rigorous academic programs to areas who otherwise would 
        not have access to such courses.
            ``(3) Acquiring proven and effective curricula that 
        include integrated technology and are designed to help 
        students achieve challenging State academic content and 
        student academic achievement standards.
            ``(4) Utilizing technology to develop or expand 
        efforts to connect schools and teachers with parents 
        and students to promote meaningful parental involvement 
        and foster increased communication about curriculum, 
        assignments, and assessments between students, parents, 
        and teachers, and assist parents to understand the 
        technology being applied in their child's education so 
        that parents are able to reinforce their child's 
        learning.
            ``(5) Preparing one or more teachers in elementary 
        and secondary schools as technology leaders who are 
        provided with the means to serve as experts and train 
        other teachers in the effective use of technology and 
        providing bonus payments to recognized technology 
        leaders.
            ``(6) Acquiring, adapting, expanding, implementing, 
        repairing and maintaining existing and new applications 
        of technology, to support the school reform effort and 
        improve student academic achievement, including 
        technology literacy.
            ``(7) Acquiring connectivity linkages, resources, 
        and services, including the acquisition of hardware and 
        software and other electronically delivered learning 
        materials, for use by teachers, students, academic 
        counselors, and school library media personnel in the 
        classroom, in academic and college counseling centers, 
        or in school library media centers, in order to improve 
        student academic achievement;
            ``(8) Using technology to collect, manage, and 
        analyze data to inform and enhance teaching and school 
        improvement efforts.
            ``(9) Implementing enhanced performance measurement 
        systems to determine the effectiveness of education 
        technology programs funded under this subpart, 
        particularly in determining the extent to which 
        education technology funded under this subpart has been 
        successfully integrated into teaching strategies and 
        school curriculum, has increased the ability of 
        teachers to teach, and has enabled students to meet 
        challenging State academic content and student academic 
        achievement standards.
            ``(10) Developing, enhancing or implementing 
        information technology courses.''
      55. The House bill requires that local educational 
agencies use at least 20 percent of their allocated funds for 
professional development predicated on scientifically based 
research and linked with professional development under Title 
II. The Senate amendment requires that local educational 
agencies use at least 30 percent of their allocated funds for 
professional development.
      HR/SR--See note 54.
      56. The House bill has more specific requirements of 
professional development funds than the Senate amendment and 
allows States to waive the 20 percent requirement for LEAs that 
demonstrate that they are doing enough already on professional 
development.
      HR/SR--See note 54.
      57. The House bill's (c)(4) and the Senate amendment's 
(a)(8) are identical provisions.
      HR/SR--See note 54.
      58. The Senate amendment has duplicative provisions in 
(a)(3) and (a)(9).
      HR/SR--See note 54.
      59. The Senate amendment, but not the House bill, has a 
requirement for connectivity with wide area networks. However, 
the House bill allows funds to be used for acquiring technology 
in general.
      HR/SR--See note 54.
      60. The House bill allows using funds for maintaining 
educational technology. The Senate amendment requires using 
funds to repair and maintain school technology equipment.
      HR/SR--See note 54.
      61. The House bill allows using funds for analyzing, 
collecting, and managing data for general school reform. The 
Senate amendment requires it.
      HR/SR--See note 54.
      62. The House bill, but not the Senate amendment, allows 
using funds for initiatives, particularly for public-private 
partnerships, designed to increase access for high-need LEAs.
      HR/SR--See note 54.
      63. The House bill, but not the Senate amendment, allows 
using funds to acquire proven and effective criteria that 
included integrated technology.
      HR/SR--See note 54.
      64. The House bill, but not the Senate amendment, allows 
using funds to determine the effectiveness of technology funded 
under this subpart.
      HR/SR--See note 54.
      65. The House bill, but not the Senate amendment, allows 
funds to be used to develop teachers as technology leaders to 
help train other teachers.
      HR/SR--See note 54.
      66. The House bill allows using funds to increase access 
to technology in high-need LEAs, especially through technology 
centers in partnerships with libraries and private sector 
support. The Senate amendment retains the Community Technology 
Centers.
      HR
      67. The Senate amendment's allowable uses of funds 
include to increase parent and teacher communication and to 
help parents under the technology being used, so they can 
reinforce it.
      HR/SR--See note 54.
      68. The House bill and Senate amendment require the 
Secretary to conduct a similar longitudinal study. However, the 
House bill includes specific provisions relating to the 
establishment of a review panel under (a)(1)(C) and reporting 
requirements under (a)(1)(D).
      SR with an amendment to strike ``the effect of . . . 
academic achievement;'' and insert Senate (A) as part of House 
(A) and insert Senate (B) as end part of House (A) with the 
following changes: strike ``performance'' and insert ``academic 
achievement'' and strike ``and related 21st century skills;''
      Keep House (C) and (D), but House (D) becomes new (E);
      Insert as new (D): ``consult with other interested 
Federal departments or agencies, State and local educational 
practitioners and policy makers (including teachers, principals 
and superintendents) and experts in technology regarding the 
study.''
      Keep Senate (b)(2).
      69. The House bill, but not the Senate amendment, 
requires using ``scientifically based research methods and 
control groups.''
      SR
      70. The House bill, but not the Senate amendment, 
includes general language pertaining to the funding of national 
technology initiatives under (a)(2) and provides for technical 
assistance under (a)(3).
      SR with an amendment to strike House (a)(2).
      71. The Senate amendment includes ``dissemination'' 
requirements under (b)(2). The House bill includes ``evaluation 
and dissemination'' requirements under (b)(3).
      HR
      72. The House bill, but not the Senate amendment, 
includes specific ``use of funds'' language under (b).
      HR
      73. The House bill includes ``requirements for recipients 
of funds'' under (b)(2), including evaluation requirements. The 
Senate amendment includes similar requirements in section 2308, 
which applies to LEAs that receive competitive grants under 
section 2304(a)(2)(A). However, in section 2308(c) the Senate 
amendment includes a specific sanction for the lack of 
measurable improvements within 3 years that the House bill does 
not.
      HR/SR with an amendment to strike all language.
      74. The Senate amendment, but not the House bill, 
includes a separate Accountability section.
      Also see note (73).
      SR
      75. Under this section, the Senate amendment provides 
technical assistance in (d). The House bill requires it under 
State Activities. Also see note (6).
      SR
      76. The Senate amendment, but not the House bill, 
includes this National Evaluation of Technology Plans section.
      SR with an amendment to put in national evaluation; 
insert ``particularly in rural areas'' after ``funds'' in 
(a)(3)--see note 68.
      77. The Senate amendment, but not the House bill, 
includes this National Education Technology Plan section.
      HR with an amendment to strike all language and insert 
the following:

``SEC. 2310. NATIONAL EDUCATION TECHNOLOGY PLAN.

      ``(a) In General.--Based on the nation's progress and an 
assessment by the Secretary of the continuing and future needs 
of the nation's schools in effectively using technology to 
provide all students the opportunity to achieve challenging 
State academic content standards, the Secretary shall update 
and publish in a form readily accessible to the public the 
national long-range technology plan not later than 12 months 
after the date of enactment of this Act.
      ``(b) Content of the Plan.--The plan shall include a 
description of the manner in which the Secretary will promote 
higher academic achievement through the integration of advanced 
technologies, including emerging technologies, into the 
curriculum, increased access to technology for teaching and 
learning for schools with a high number or percentage of 
children from low-income families and the use of technology to 
assist in the implementation of State systemic reform 
strategies. The plan shall also describe joint activities of 
the Department of Education and other federal departments or 
agencies that will promote the use of technology in 
education.''
      Report Language:
      The Conferees intend that the National Education 
Technology Plan be conducted by the Secretary in consultation 
with other federal departments or agencies, State and local 
education practitioners, and policymakers, including parents, 
teachers, principals, and superintendents, experts in 
technology and the applications of technology to education, 
representatives of distance learning consortia, representatives 
of telecommunications partnerships receiving federal assistance 
and providers of technology services and products. In addition, 
the plan should describe the manner in which the Secretary will 
work with and promote the exchange of information among 
educators, State and local educational agencies, and 
appropriate representatives of the private sector, including 
the Universal Service Administrative Company, and other 
relevant entities on the effective use of technology in 
improving teaching, academic achievement and technology 
literacy. The bill requires the Secretary to report on joint 
activities regarding educational technology of the Department 
of Education and other federal agencies, and the Conferees 
intend that all relevant federal agencies be involved. The plan 
must be published in a form readily accessible to the public 
and submitted to the President and the House Committee on 
Education and the Workforce and the Senate Committee on Health, 
Education, Labor and Pensions.
      78. Although both the House bill and Senate amendment 
reauthorize the Ready To Learn program, each does it 
differently.
      HR/SR with an amendment to strike all language and insert 
the following:

``SEC. 11202. READY TO LEARN.

      ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to or enter into contracts or cooperative 
        agreements with eligible entities described in 
        paragraph (3) to--
                    ``(A) develop, produce, and distribute 
                educational and instructional video programming 
                for preschool and elementary school children 
                and their parents in order to facilitate 
                student academic achievement.
                    ``(B) facilitate the development directly, 
                or through contracts with producers of children 
                and family educational television programming, 
                of educational programming for preschool and 
                elementary school children; and accompanying 
                support materials and services that promote the 
                effective use of such programming;
                    ``(C) facilitate the development of 
                programming and digital content especially 
                designed for nationwide distribution over 
                public television stations' digital 
                broadcasting channels and the Internet, 
                containing Ready to Learn-based children's 
                programming and resources for parents and 
                caregivers;
                    ``(D) enable eligible entities to contract 
                with entities (such as public 
                telecommunications entities) so that programs 
                developed under this section are disseminated 
                and distributed to the widest possible audience 
                appropriate to be served by the programming; 
                and by the most appropriate distribution 
                technologies; and
                    ``(E) develop and disseminate education and 
                training materials, including interactive 
                programs and programs adaptable to distance 
                learning technologies that are designed to (i) 
                promote school readiness; and (ii) promote the 
                effective use of materials developed under 
                subparagraphs (B) and (C) among parents, 
                teachers, Head Start providers, Even Start 
                providers, providers of family literacy 
                services, child care providers, early childhood 
                development personnel, elementary school 
                teachers, public libraries, and after-school 
                program personnel caring for preschool and 
                elementary school children.
            ``(2) Availability.--In making such grants, 
        contracts, or cooperative agreements under this 
        section, the Secretary shall ensure that eligible 
        entities make programming widely available, with 
        support materials as appropriate, to young children, 
        their parents, child care workers, and Head Start 
        providers, Even Start providers, and providers of 
        family literacy services to increase the effective use 
        of such programming.
            ``(3) Eligible entities.--To be eligible to receive 
        a grant under this subsection, an entity shall be a 
        public telecommunications entity which is able--
                    ``(A) to demonstrate a capacity for the 
                development and national distribution of 
                educational and instructional television 
                programming of high quality which is accessible 
                by a large majority of disadvantaged preschool 
                and elementary school children;
                    ``(B) to demonstrate--
                            ``(i) a capacity to contract with 
                        the producers of children's television 
                        programming for the purpose of 
                        developing educational television 
                        programming of high quality;
                            ``(ii) consistent with the entity's 
                        mission and nonprofit nature, a 
                        capacity to negotiate such contracts in 
                        a manner which returns to the entity an 
                        appropriate share of any ancillary 
                        income from sales of any program-
                        related products; and
                            ``(iii) a capacity to localize 
                        programming and materials to meet 
                        specific State and local needs and 
                        provide educational outreach at the 
                        local level.
            ``(4) Coordination of activities.--An entity 
        receiving a grant, contract, or cooperative agreement 
        from the Secretary under this section shall work with 
        the Secretary and the Secretary of Health and Human 
        Services to--
                    ``(A) maximize the utilization of quality 
                educational programming by preschool and 
                elementary school children, and make such 
                programming widely available to federally 
                funded programs serving such populations; and
                    ``(B) coordinate with Federal programs that 
                have major training components for early 
                childhood development, including programs under 
                the Head Start Act and Even Start, and State 
                training activities funded under the Child Care 
                Development Block Grant Act of 1990, regarding 
                the availability and utilization of materials 
                developed under paragraph (1)(E) to enhance 
                parent and child care provider skills in early 
                childhood development and education.
      ``(b) Applications.--Each entity desiring a grant, 
contract, or cooperative agreement under subsection (a) shall 
submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary 
may reasonably require.
      ``(c) Reports and Evaluation.--
            ``(1) Annual report to secretary.--An eligible 
        entity receiving funds under this section shall prepare 
        and submit to the Secretary an annual report which 
        contains such information as the Secretary may require. 
        At a minimum, the report shall describe the program 
        activities undertaken with funds provided under 
        subsection (a), including--
                    ``(A) the programming that has been 
                developed directly or indirectly by the 
                eligible entity, and the target population of 
                the programs developed;
                    ``(B) the support and training materials 
                that have been developed to accompany the 
                programming, and the method by which such 
                materials are distributed to consumers and 
                users of the programming;
                    ``(C) the means by which programming 
                developed under this section has been 
                distributed, including the distance learning 
                technologies that have been utilized to make 
                programming available and the geographic 
                distribution achieved through such 
                technologies; and
                    ``(D) the initiatives undertaken by the 
                eligible entity to develop public-private 
                partnerships to secure non-Federal support for 
                the development, distribution, and broadcast of 
                educational and instructional programming.
            ``(2) Report to congress.--The Secretary shall 
        prepare and submit to the relevant committees of 
        Congress a biannual report which includes--
                    ``(A) a summary of activities assisted 
                under subsection (a);
                    ``(B) a description of the education and 
                training materials made available under 
                subsection (a)(1)(E), the manner in which 
                outreach has been conducted to inform parents 
                and child care providers of the availability of 
                such materials, and the manner in which such 
                materials have been distributed in accordance 
                with such subsection.
      ``(d) Administrative Costs.--With respect to the 
implementation of this section, eligible entities receiving a 
grant, contract, or cooperative agreement from the Secretary 
may use not more than 5 percent of the amounts received under 
such section for the normal and customary expenses of 
administering the grant, contract, or cooperative agreement.
      ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to carry out this section, such sums for 
        fiscal year 2002, and such sums as may be necessary for 
        each of the 5 succeeding fiscal years.
            ``(2) Funding rule.--Not less than 60 percent of 
        the amounts appropriated under subsection (a) for each 
        fiscal year shall be used to carry out subparagraphs 
        (B), (C), and (D) of subsection (a)(1).''
      79. The House bill combines the Ready To Learn program 
with the Telecommunications Demonstration Project for 
Mathematics and a new digital content allowable use of funds 
for a total authorization level of $24.5 million. The Secretary 
is only required to fund the Ready To Learn program. Under the 
Senate amendment, the Ready To Learn program and the former 
Telecommunications Demonstration Project for Mathematics, 
renamed Teacherline, are two separate programs. Ready To Learn 
is authorized at $50 million and Teacherline, which includes 
digital content, is authorized at $45 million.
      HR/SR with an amendment to move Ready to Teach to Subpart 
8 of Title V, Part D, amended to read as follows:

``SEC. 11252. READY TO TEACH.

      ``(a) Grants Authorized.--The Secretary is authorized to 
make grants to a nonprofit telecommunications entity, or 
partnership of such entities, for the purpose of carrying out a 
national telecommunications-based program to improve teaching 
in core curriculum areas. The program shall be designed to 
assist elementary school and secondary school teachers in 
preparing all students for achieving challenging State academic 
content and student academic achievement standards in core 
curriculum areas.
      ``(b) Programming.--The Secretary is also authorized to 
award grants to eligible entities described in section 11255(b) 
to develop, produce, and distribute innovative educational and 
instructional video programming that is designed for use by 
kindergarten through grade 12 schools and based on challenging 
State academic content and student academic achievement 
standards. In making the grants, the Secretary shall ensure 
that eligible entities enter into multiyear content development 
collaborative arrangements with State educational agencies, 
local educational agencies, institutions of higher education, 
businesses, or other agencies and organizations.

``SEC. 11253. APPLICATION REQUIRED.

      ``(a) In General.--Each nonprofit telecommunications 
entity, or partnership of such entities, desiring a grant under 
section 11252(a) shall submit an application to the Secretary. 
Each such application shall--
            ``(1) demonstrate that the applicant will use the 
        public broadcasting infrastructure, the Internet, and 
        school digital networks, where available, to deliver 
        video and data in an integrated service to train 
        teachers in the use of materials and learning 
        technologies for achieving challenging State academic 
        content and student academic achievement standards;
            ``(2) ensure that the project for which assistance 
        is sought will be conducted in cooperation with 
        appropriate State educational agencies, local 
        educational agencies, and State or local nonprofit 
        public telecommunications entities;
            ``(3) ensure that a significant portion of the 
        benefits available for elementary schools and secondary 
        schools from the project for which assistance is sought 
        will be available to schools of local educational 
        agencies which have a high percentage of children 
        counted for the purpose of part A of title I; and
            ``(4) contain such additional assurances as the 
        Secretary may reasonably require.
      ``(b) Sites.--In approving applications under section 
11252(a), the Secretary shall ensure that the program 
authorized by section 11252(a) is conducted at elementary 
school and secondary school sites across the Nation.
      ``(c) Application.--Each eligible entity desiring a grant 
under section 11252(b) shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.

``SEC. 11254. REPORTS AND EVALUATION.

      ``An eligible entity receiving funds under section 
11252(a) shall prepare and submit to the Secretary an annual 
report which contains such information as the Secretary may 
require. At a minimum, the report shall describe the program 
activities undertaken with funds received under section 
11252(a), including--
            ``(1) the core curriculum areas for which program 
        activities have been undertaken and the number of 
        teachers using the program in each core curriculum 
        area; and
            ``(2) the States in which teachers using the 
        program are located.

``SEC. 11255. DIGITAL EDUCATIONAL PROGRAMMING.

      ``(a) Awards.--The Secretary shall award grants under 
section 11252(b) to eligible entities to facilitate the 
development of educational programming that shall--
            ``(1) include student assessment tools to give 
        feedback on student performance;
            ``(2) include built-in teacher utilization and 
        support components to ensure that teachers understand 
        and can easily use the content of the programming with 
        group instruction or for individual student use;
            ``(3) be created for, or adaptable to, challenging 
        State academic content standards and student academic 
        achievement standards; and
            ``(4) be capable of distribution through digital 
        broadcasting and school digital networks.
      ``(b) Eligible Entities.--To be eligible to receive a 
grant under section 11252(b), an entity shall be a local public 
telecommunications entity as defined by section 397(12) of the 
Communications Act of 1934 that is able to demonstrate a 
capacity for the development and distribution of educational 
and instructional television programming of high quality.
      ``(c) Competitive Basis.--Grants under section 11252(b) 
shall be awarded on a competitive basis as determined by the 
Secretary.
      ``(d) Duration.--Each grant under section 11252(b) shall 
be awarded for a period of 3 years in order to allow time for 
the creation of a substantial body of significant content.

``SEC. 11256. MATCHING REQUIREMENT.

      ``Each eligible entity desiring a grant under section 
11252(b) shall contribute to the activities assisted under 
section 11252(b) non-Federal matching funds equal to not less 
than 100 percent of the amount of the grant. Matching funds may 
include funds provided for the transition to digital 
broadcasting, as well as in-kind contributions.

``SEC. 11257. ADMINISTRATIVE COSTS.

      ``With respect to the implementation of section 11252(b), 
entities receiving a grant from the Secretary may use not more 
than 5 percent of the amounts received under the grant for the 
normal and customary expenses of administering the grant.''
      80. The Senate amendment, but not the House bill, 
includes extensive findings for both programs.
      SR
      81. The House bill, but not the Senate amendment, further 
streamlines language contained in current law.
      HR/SR (see note 78-79).
      82. The House bill, but not the Senate amendment, 
requires eligible applicants to demonstrate, consistent with 
the entity's mission and nonprofit nature, a capacity to 
negotiate contracts in a manner, which returns to the entity an 
appropriate share of any ancillary income from sales of any 
program-related products.
      SR
      83. The Senate amendment, but not the House bill, 
restores the Community Technology Centers program. However, 
section 3 in the House bill includes one-year continuation of 
grants language.
      HR with an amendment to move redrafted provision to 
Subpart 11 of Title V, Part D (FIE).
      84. The Senate amendment, but not the House bill, 
restores the Preparing Tomorrow's Teachers To Use Technology 
program. However, section 3 in the House bill includes one-year 
continuation of grants language.
      HR with an amendment to re-designate the ``Preparing 
Tomorrow's Teachers to Use Technology'' program to Title II of 
the Higher Education Act and authorize such sums as may be 
necessary for FY 2002 and 2003. (Need to add continuation 
language for current grantees.)
      85. Under section 2242, only (c) Technology Preparation 
applies to the technology portion of this bill.
      LC
      86. The Senate amendment, but not the House bill, 
restores the Star Schools Program. However, section 3 in the 
House bill includes one-year continuation of grants language.
      HR with an agreement to move redrafted provision to 
Subpart 7 of Title V, Part D (FIE).
      87. The Senate amendment, but not the House bill, 
includes a new Rural Technology Education Academies program.
      SR with an agreement to insert the following Report 
Language:
      Report Language:
      The Conferees recognize that schools in rural areas and 
small towns often require additional assistance to implement an 
advanced technology curriculum. Due to the isolated nature of 
many small, rural towns, technology can offer rural students 
academic opportunities that they otherwise would not have. 
Ensuring that rural students are technologically literate is 
vitally important because it improves academic performance and 
helps students participate in the highly competitive economy of 
the 21st Century.
      88. The House bill, but not the Senate amendment, 
redesignated the Internet filtering language in title III of 
current law to title V, Part B.
      LC
      89. The Senate amendment, but not the House bill, 
includes this provision of incentives language.
      SR (See also Note 65)

                  Title V, Part C--Character Education

                    (New Title V, Part D, Subpart 3)

      1. House bill authorizes ``Character Education'' under 
Title V, Part C. Senate amendment authorizes ``Partnerships in 
Character Education'' as Subpart 5 of Part F of Title XVI.
      HR/SR with an agreement to move to Subpart 3 of Title V, 
Part D (FIE).
      2. Senate amendment, but not House bill, contains a short 
title.
      SR
      3. House bill refers to ``Character Education Program'' 
and Senate amendment refers to ``Partnerships in Character 
Education Program.''
      HR
      4. House bill authorizes the Secretary to make grants to 
State educational agencies, local educational agencies, or 
consortia of such agencies for the design and implementation of 
character education programs. Senate amendment authorizes the 
Secretary to award grants to eligible entities for the design 
and implementation of character education programs.
      HR
      5. Senate amendment contains no similar provision.
      SR with an amendment to strike ``for the core academic 
subjects'' in (A).
      6. Senate amendment contains no similar provision.
      SR
      7. House bill authorizes 5-year grants. Senate amendment 
authorizes 3-year grants.
      SR
      8. Senate amendment, but not House bill, sets minimum 
grant amount for eligible entities at $500,000.
      HR
      9. Senate amendment, but not House bill, defines eligible 
entity.
      HR with an amendment to strike ``another'' and insert 
``one or more'' and strike ``organization and entity'' and 
insert ``organizations or entities'' in (D).
      10. House bill and Senate amendment allow each agency or 
consortium receiving assistance under this section to contract 
with outside sources, including institutions of higher 
education and private and nonprofit organizations, for the 
purposes of evaluating the program; and measuring the success 
of such program in fostering the elements of character.
      SR
      11. House bill, but not Senate amendment, provides that 
outside sources may include religious organizations and adds 
language to the evaluation for measuring the integration of 
such program into the curriculum and teaching methods of 
schools.
      SR with an amendment to strike ``(including religious 
organizations)'' in House (1); LC strike ``agency or 
consortium'' and insert ``eligible entity'' throughout this 
Part.
      12. House bill, but not Senate amendment, allows each 
agency or consortium receiving assistance under this section to 
contract with outside sources, including institutions of higher 
education and private and nonprofit organizations (including 
religious organizations), for assistance in developing secular 
curricula, materials, teacher training, and other activities 
related to character education; and integrating secular 
character education into the curriculum and teaching methods of 
schools where the program is carried out.
      SR with an amendment to strike ``(including religious 
organizations)'' in House (2).
      13. Similar provision.
      SR with an agreement to add the following report 
language:
      The Conferees note that when selecting elements of 
character the applicants may use a scientifically based 
coherent, established classification system with standardized 
definitions whose elements are grounded in reliable and valid 
measures, and whose elements contribute to human thriving, 
productivity, well-being, and social harmony.
      14. Similar provision.
      LC
      15. House bill, but not Senate amendment, requires the 
agency or consortium receiving assistance to consider the views 
of the parents or guardians of the students to be taught under 
the program.
      SR with an amendment to strike ``or guardians'' after 
``parents'' and insert ``and the students,'' after ``of the 
students''.
      16. Identical provision.
      LC
      17. Identical provision.
      LC
      18. Identical provision.
      LC
      19. Similar provision.
      HR
      20. Identical provision.
      LC
      21. Similar provision.
      HR
      22. House bill, but not Senate amendment, includes 
``giving'' as an example element of character.
      SR
      23. House bill contains no similar provision.
      HR with an amendment to strike ``10'' and insert ``3'' in 
(1).
      24. Similar provision.
      LC
      25. Under House bill, but not Senate amendment, the 
application must demonstrate that the program for which the 
assistance is sought has clear goals and objectives that are 
based on scientifically based research.
      SR
      26. Under Senate amendment, but not the House bill, the 
application must contain a description of any partnerships or 
collaborative efforts among the organizations and entities of 
the eligible entity.
      HR
      27. Similar provision.
      SR
      28. Senate amendment, but not House bill, requires 
applications to describe how parents, students, and other 
members of the community will be involved in the design and 
implementation of the program and how the eligible entity will 
work with the larger community to increase the reach and 
promise of the program.
      HR
      29. Senate amendment, but not House bill, requires 
applications to describe the curriculum and instructional 
practices that will be used or developed.
      HR
      30. Senate amendment, but not House bill, requires 
applications to describe the methods of teacher training and 
parent education that will be used or developed.
      HR
      31. House bill requires applications to describe how the 
program will be linked to broader educational reforms that are 
being instituted by the applicant or its partners; and 
applicable State academic content standards for student 
achievement. Senate amendment requires applications to describe 
how the program will be linked to other efforts in the schools 
to improve student performance.
      SR with an amendment to strike ``applicable'' in (ii).
      32. House bill contains no similar provision.
      HR with an amendment to strike ``goals and'' in (E)(i).
      33. House bill provides that in selecting agencies or 
consortia to receive assistance under this section from among 
the applicants for such assistance, the Secretary shall use a 
peer review process that includes the participation of experts 
in the field of character education. Senate amendment provides 
that the Secretary shall select, through peer review, eligible 
entities (see (f)(1) below).
      SR with an amendment to insert ``and development.'' after 
``character education'' in (A).
      34. Similar provision.
      SR
      35. Senate amendment, but not House bill, requires the 
Secretary to consider the extent to which the program fosters 
character in students and the potential for improved student 
performance.
      HR
      36. Similar provision.
      HR
      37. Senate amendment, but not House bill, requires the 
Secretary to consider the quality of the plan for measuring and 
assessing success.
      HR
      38. Similar provision.
      LC strike ``goals'' and insert ``objectives''.
      39. House bill contains no similar provision.
      HR
      40. House bill requires the Secretary to ensure, to the 
extent practicable, that the programs assisted under this 
section are equitably distributed among the geographic regions 
of the United States, and among urban, suburban, and rural 
areas. Senate amendment requires the Secretary to ensure, to 
the extent practicable, that programs serve different areas of 
the Nation, including urban, suburban, and rural areas; and 
serve schools that serve minorities, Native Americans, students 
of limited-English proficiency, disadvantaged students, and 
students with disabilities.
      SR
      41. House bill requires each agency or consortium to 
submit to the Secretary, not later than 5 years after the 
initial grant, a report containing an evaluation of each 
program assisted. The report must also evaluate the degree to 
which each program attained the goals and objectives for the 
program. Senate amendment requires each eligible entity 
receiving a grant to submit to the Secretary a comprehensive 
evaluation of the program, including the impact on students, 
teachers, administrators, parents, and others by the second 
year of the program and not later than 1 year after completion 
of the grant period.
      HR with an amendment to insert ``end of the'' before 
``second year'' in (A)(i).
      42. Senate amendment contains no similar provision.
      HR
      43. House bill contains no similar provision.
      HR with an amendment to insert the following language:
            ``(2) National research, dissemination, and 
        evaluation--
                    ``(A) In general.--The Secretary is 
                authorized to make grants to, or enter into 
                contracts or cooperative agreements with, State 
                or local educational agencies, institutions of 
                higher education, tribal organizations, or 
                other public or private agencies or 
                organizations to carry out research, 
                development, dissemination, technical 
                assistance, and evaluation activities that 
                support or inform State and local character 
                education programs. The Secretary shall reserve 
                not more than 5 percent of the funds made 
                available under this section to carry out this 
                paragraph.
                    ``(B) Uses.--Funds made available under 
                subparagraph (A) may be used--
                            ``(i) to conduct research and 
                        development activities that focus on 
                        matters such as--
                                    ``(I) the extent to which 
                                schools are undertaking 
                                character education 
                                initiatives;
                                    ``(II) the effectiveness of 
                                instructional models for all 
                                students, including students 
                                with physical and mental 
                                disabilities;
                                    ``(III) materials and 
                                curricula that can be used by 
                                programs in character 
                                education;
                                    ``(IV) models of 
                                professional development in 
                                character education;
                                    ``(V) the development of 
                                measures of effectiveness for 
                                character education programs 
                                which may include the factors 
                                described in paragraph (3); and
                                    ``(VI) the effectiveness of 
                                State and local programs 
                                receiving funds under this 
                                section.
                            ``(ii) to provide technical 
                        assistance to State and local programs, 
                        particularly on matters of program 
                        evaluation;
                            ``(iii) to conduct evaluations of 
                        State and local programs receiving 
                        funding under this section which may be 
                        conducted by a national clearinghouse 
                        under (B)(iv); and
                            ``(iv) to compile and disseminate, 
                        through a national clearinghouse or 
                        other approaches--
                                    ``(I) information on model 
                                character education programs;
                                    ``(II) information about 
                                quality character education 
                                materials and curricula;
                                    ``(III) research findings 
                                in the area of character 
                                education and character 
                                development; and
                                    ``(IV) any other 
                                information that will be useful 
                                to character education program 
                                participants, educators, 
                                parents, administrators, and 
                                others nationwide.
                    ``(C) Priority.--In carrying out national 
                activities under this paragraph, the Secretary 
                shall seek to enter into partnerships with 
                national, nonprofit character education 
                organizations and institutions of higher 
                education with expertise and successful 
                experience in implementing character education 
                programs that have had an effective impact on 
                schools, students (including students with 
                disabilities), and teachers or character 
                education program evaluation and research. In 
                carrying out national activities under (B)(iv), 
                the Secretary shall seek to enter into 
                partnership with a national, nonprofit 
                character education organization that will 
                disseminate information about the range of 
                model character education programs, materials, 
                curricula, and other information useful to 
                educators, parents, administrators, and others 
                nationwide.
                    ``(D) Report.--Each agency, entity, or 
                organization that receives a grant under this 
                paragraph shall submit an annual report to the 
                Secretary that--
                            ``(i) describes the progress of the 
                        grantee in carrying out research, 
                        development, dissemination, evaluation, 
                        and technical assistance under this 
                        paragraph;
                            ``(ii) identifies unmet and future 
                        information needs in the field of 
                        character education; and
                            ``(iii) if appropriate, describes 
                        the progress of the grantee in carrying 
                        out the requirements of (B)(iv), 
                        including a listing of--
                                    ``(I) the number of 
                                requests for information 
                                received by the grantee in the 
                                course of carrying out such 
                                requirements;
                                    ``(II) the types of 
                                organizations making such 
                                requests; and
                                    ``(III) the types of 
                                information requested.
            ``(3) Factors.--Factors which may be considered in 
        evaluating the success of programs funded under this 
        section may include--
                    ``(A) discipline issues;
                    ``(B) student performance;
                    ``(C) participation in extracurricular 
                activities;
                    ``(D) parental and community involvement;
                    ``(E) faculty and administration 
                involvement;
                    ``(F) student and staff morale; and
                    ``(G) overall improvements in school 
                climate for all students, including students 
                with physical and mental disabilities.''
      44. Senate amendment contains no similar provision.
      SR with an amendment to insert the following language:
      ``(g) Permissive Match.--
            ``(1) In general.--The Secretary may require 
        eligible entities to match funds awarded under this 
        subpart with non-Federal funds, except that such match 
        may not exceed the amount of the grant award.
            ``(2) Sliding scale.--The amount of a match under 
        paragraph (1) shall be established based on a sliding 
        fee scale that takes into account--
                    ``(A) the poverty of the population to be 
                targeted by the eligible entity; and
                    ``(B) the ability of the eligible entity to 
                obtain such matching funds.
            ``(3) In-kind contributions.--The Secretary shall 
        permit eligible entities to match funds in whole or in 
        part in the form of in-kind contributions.
            ``(4) Consideration.--Notwithstanding this 
        subsection, the Secretary shall not consider an 
        eligible entity's ability to match funds when 
        determining which eligible entities will receive awards 
        under this subpart.''
      45. House bill authorizes $50 million for FY 02 and such 
sums as may be necessary for each of FY 03 through FY 06. 
Senate amendment authorizes such sums as may be necessary for 
Part F for FY 02 and for each of the 6 succeeding fiscal years 
(Character Education is Subpart 5 of Part F).
      HR/SR (no authorization because moved to FIE).

                      Title V, Part D--Counseling

                    (New Title V, Part D, subpart 2)

      1. House bill contains findings. Senate amendment 
contains no similar provision.
      HR
      2. House bill and Senate amendment contain similar 
provisions.
      SR
      3. House bill and Senate amendment contain similar 
provisions. House bill contains a priority for applicants that 
provide information on their ratios of students to service 
providers.
      SR
      4. House bill and Senate amendment contain similar 
provisions.
      LC
      5. House bill and Senate amendment contain similar 
provisions.
      LC
      6. House bill and Senate amendment contain similar 
provisions.
      LC
      7. Senate bill does not contain a similar provision.
      SR
      8. House bill does not contain an application 
requirement.
      HR with an amendment in (b)(2)(A) to strike ``personal, 
social . . . development'' and insert ``counseling''; to strike 
(b)(2)(D) and insert ``describe how the local educational 
agency will involve community groups, social service agencies, 
and other public and private entities in collaborative efforts 
to enhance the program and promote school-linked services 
integration''; to strike (b)(2)(E); in (b)(2)(H) strike all 
after ``to supplement'' and insert ``and not supplant other 
Federal, State, or local funds used for providing school-based 
counseling and mental health services to students; and''; to 
strike (b)(2)(I) and insert ``assure that the applicant will 
appoint an advisory board composed of interested parties, 
including parents, teachers, school administrators, counseling 
services providers under (c)(4), and community leaders to 
advise the local educational agency on the design and 
implementation of the program''
      9. House bill and Senate amendment contain similar 
provisions, with those provisions aligned:
      House bill mentions ``counseling and educational'' 
services.
      Senate amendment mentions ``personal, social, emotional, 
and educational'' services.
      House bill includes ``child and adolescent 
psychiatrists.''
      House bill allows services to be provided in settings 
that meet the range of needs. Senate amendment provides for 
specific settings.
      House bill provides for training for teachers to identify 
and intervene with students at risk of violent behavior. Senate 
amendment includes other pupil services personnel, teachers, 
and instructional staff.
      House includes child and adolescent psychologists as 
providers.
      Senate amendment includes institutions of higher 
education, business, labor organizations, and ``promotes 
school-linker services integration.''
      House bill provides for specified ratios of students to 
providers. Senate amendment contains no similar provision.
      House bill mentions that providers must spend a 
``majority'' of their time in activities directly related to 
counseling. Senate amendment contains no similar provision.
      SR with an amendment:
      Insert Senate (c)(1):
      In House (4) strike ``and'' before ``child and adolescent 
psychiatrists'' and insert ``or other qualified psychologists'' 
after ``child and adolescent psychiatrists'';
      Strike House (7) and insert ``include in-service training 
appropriate to the activities funded under this Act for 
teachers, instructional staff, and appropriate school 
personnel, including in-service training in appropriate 
identification and early intervention techniques by school 
counselors, school social workers, school psychologists, child 
and adolescent psychiatrists and other qualified psychologists;
      In House (9) after ``program'' insert ``and promote 
school-linked services integration''
      Report Language:
      A comprehensive counseling program addresses the 
individual and educational needs of students in a variety of 
settings in the school and is well-balanced among classroom 
group and small group counseling, individual counseling, and 
consultation with parents, teachers, administrators, and other 
appropriate school personnel. The program involves 
collaborative efforts with community groups, social service 
agencies and other public and private entities to enhance the 
program and promote school-linked service integration.
      10. House bill limits administration expenses to 3%.
      Senate amendment limits administration expenses to 5%.
      SR with an amendment to strike ``3'' and insert ``4''
      11. House bill and Senate amendment contain similar 
provisions, with those provisions aligned.
      House bill includes a definition of ``child and 
adolescent psychiatrist.''
      Senate amendment includes a definition of ``supervisor.''
      SR with an amendment to insert in (2)(B) ``in school 
psychology'' after ``certification''. Insert ``other qualified 
psychologist means an individual who has demonstrated 
competence in counseling children in a school setting and who 
is licensed in psychology by the State in which the individual 
works; and practices in the scope of the individual's 
education, training, and experience with children in school 
settings;
      12. House bill requires a report on ratio of student to 
providers within one year.
      Senate amendment requires a report on progress at the end 
of grant.
      SR with an amendment to insert ``a report evaluating the 
programs assistant pursuant to each grant under this subpart 
and'' after ``publicly available''.
      13. House bill contains no similar provision.
      SR
      14. House bill and Senate amendment contain similar 
provisions.
      HR/SR with an agreement to move to Subpart 2 of Title V, 
Part D (FIE).
      15. House bill contains no similar provision.
      HR with an amendment to set the trigger at $40 million.

                       Title V, Part E--Mentoring

                   (New IV, Part A, Within Subpart 2)

      1. House bill and Senate amendment contain similar 
provisions.
      SR with an amendment to strike ``an individual'' and 
insert ``a responsible adult, post-secondary school student, or 
secondary school student'' in (2).
      2. House bill and Senate amendment contain similar 
provisions.
      SR with an amendment to strike ``caring individual'' and 
insert ``mentor;'' in (1).
      3. House bill and Senate amendment contain similar 
provisions, but the House bill allows secondary students to 
serve as mentors along with adults.
      SR with an amendment in (a)(1) to strike ``responsible 
adults or students in secondary school'' and insert 
``mentors''.
      4. House bill and Senate amendment contain similar 
provisions.
      LC
      5. House bill and Senate amendment contain similar 
provisions.
      LC
      6. House bill and Senate amendment contain similar 
provisions, but the House bill allows secondary students to 
serve as mentors along with adults.
      LC
      Report Language:
      The Conferees wish to recognize the expertise and 
experience of mentoring organizations, such as Big Brothers Big 
Sisters of America, Camp Fire Boys and Girls, Boys and Girls 
Clubs, National Mentoring Partnership, the Young Men's 
Christian Association, National Association for the Advancement 
of Colored People, Aspira, League of United Latin American 
Citizens, 100 Black Men of America and National 4-H Council, in 
providing training and technical support for mentoring 
programs. These organizations have a long history of supporting 
mentoring for youth and have established networks of mentoring 
organizations.
      7. House bill and Senate amendment contain similar 
provisions.
      LC
      8. House bill and Senate amendment contain similar 
provisions.
      LC
      9. House bill and Senate amendment contain similar 
provisions.
      LC
      10. House bill and Senate amendment contain similar 
provisions.
      LC
      11. House bill and Senate amendment contain similar 
provisions.
      LC
      12. House bill and Senate amendment contain similar 
provisions.
      LC
      13. House bill and Senate amendment contain similar 
provisions.
      LC
      14. House bill and Senate amendment contain similar 
provisions.
      HR/SR to delete (Staff to write letter to GAO).
      15. House bill and Senate amendment contain similar 
provisions.
      HR/SR to strike both and treat program as an allowable 
activity under the national authority in the Safe and Drug-Free 
Schools and Communities Act
      16. The Senate amendment requires the Secretary to make 
grants to Big Brothers/Big Sisters to provide technical 
assistance to grant recipients under (a) through mentoring 
development centers located in various cities in the US. Funds, 
in amounts determined by the Secretary, would come from the 
authorization for Part G. House bill contains no similar 
provision.
      SR

                          Title VI--Impact Aid

                            (New Title VIII)

      1. The House bill and the Senate bill have similar 
provisions make a small modification to the ``hold harmless'' 
formula for distributing funds under Section 8002 (payments for 
federal acquisition of real property).
      SR
      In the amendments to paragraph (1) of section 8002(h), 
the House bill refers to being determined pursuant to 
``statute'' while the Senate amendment refers to ``law.''
      2. The House bill, but not the Senate bill, contains a 
provision to extend the filing deadline for a school district 
in Colorado that missed both: (1) its FY 1999 Section 8002 
application deadline, and (2) a statutory exemption to that 
exception deadline granted as part of the FY 2001 Department of 
Education Appropriations Act. The district would be paid from 
FY 2001 funds.
      SR with an amendment to insert the following language:
      ``(b) Applications for Payment.--
            ``(1) Warner public schools, muskogee county, 
        oklahoma.--Notwithstanding any other provision of law, 
        the Secretary of Education shall treat as timely filed 
        an application under section 8003 (20 U.S.C. 7703) from 
        Warner Public Schools, Muskogee County, Oklahoma, for a 
        payment for fiscal year 2002, and shall process that 
        application for payment, if the Secretary has received 
        the fiscal year 2002 application not later than 30 days 
        after the date of the enactment of this Act.
            ``(2) Pine point school, school district 25, 
        minnesota.--Notwithstanding any other provision of law, 
        the Secretary shall treat as timely filed an 
        application under section 8003 (20 U.S.C. 7703) from 
        Pine Point School, School District 25, Minnesota, for a 
        payment for fiscal year 2000, and shall process that 
        application for payment, if the Secretary has received 
        the fiscal year 2000 application not later than 30 days 
        after the date of the enactment of this Act.''
      3. This provision is similar to language regarding the 
change to Section 8002 (h)(4)(B). This is addressed in Section 
601 (House Bill). See note 1.
      SR
      4. The Senate bill, but not the House bill provides for 
an additional year of eligibility as ``federal property'' at a 
reduced payment level, for property that the federal government 
transfers to a non-federal entity.
      HR
      5. Both the House and Senate bills contain identical 
language expanding the number of small school districts which 
are guaranteed a 40 percent LOT payment.
      HR/SR--to be taken out.
      6. Both bills contain identical language modifying the 
definition of a ``heavily impacted school district'' to include 
school districts that have no taxing authority and whose 
boundaries are coterminous with those of an island held in 
trust by the federal government as being eligible for ``heavily 
impacted'' payments.
      LC
      7. Using different language, both the House bill and the 
Senate amendment amend Section 8007(b) of current law. The 
House provisions refer to ``School Facility Emergency and 
Modernization Grants,'' while the Senate amendment refers to 
``School Facility Modernization Grants.''
      SR
      8. Both the House bill and Senate amendment reserve 60 
percent of the amount appropriated under subsection 8014(e) for 
competitive construction grants. The House bill directs the 
Secretary to award grants to LEAs for emergency repairs of 
school facilities as well as for the modernization of school 
facilities. The Senate bill directs the Secretary to make 
grants to LEAs only for the modernization of school facilities, 
but has a reservation of funds for emergency repairs in a 
different part of the bill (see note 9).
      SR
      9. The Senate amendment, but not the House bill, 
allocates 10 percent of the funds reserved for modernization 
for grants to LEAs described in paragraph (2)(A) (federal 
property), 45 percent for LEAs described in paragraph (2)(B) 
(Indian land), and 45 percent for LEAs described in paragraph 
(2)(C) (civilian ``a'' and military). The Senate amendment 
further reserves 10 percent of the funding allocated to Indian 
lands districts, and 10 percent of the funding allocated to 
Military districts for emergency grants which are not subject 
to specific award criteria.
      SR
      10. The House bill, but not the Senate amendment, 
requires the Secretary to give priority to grants for emergency 
situations when making awards under this subsection.
      SR
      11. The Senate amendment, but not the House bill, allows 
funds reserved for Indian land or military districts to be used 
for modernization of schools on or near federal property, but 
only if the school itself has 25 percent of its average daily 
attendance composed of federally impacted students.
      SR with an amendment to allow individual schools that 
would otherwise qualify for an emergency grant or modernization 
grant but are in a school district that fails to qualify, to 
apply for such a grant as if they were a ``expanded definition 
school district'' (see description of structure below). In 
order to qualify under this provision, a school must be at 
least 40 percent impacted, and be part of an LEA that has no 
bonding capacity or that has used up at least 75 percent of 
their bonding capacity, and has an assessed value of taxable 
property per student in the school district that is in the 
lowest 50 percent of school districts within the state.
      Note: Below is the policy and structure for construction; 
final legislative language is still to be written:
      Overall structure--
      One pot for all qualifying entities to share;
      Emergency projects are funded first in the order of 
severity with projects in LEAs that have no practical capacity 
to issue bonds or limited capacity to issue bonds (House 
definitions) funded first, and expanded definition LEAs (those 
that don't meet House definition but meet the definition below) 
funded second if money remains, and funded only under the same 
criteria that apply to districts with limited capacity to issue 
bonds.
      Modernization projects are funded if money remains after 
all emergency applications are funded. The same criteria apply 
for modernization grant and emergency grants. LEAs with no 
practical capacity to issue bonds or limited capacity to issue 
bonds (House definitions) are funded first, and expanded 
definition LEAs (those that don't meet House definition but 
meet definition below) are funded second if money remains.
      Expanded definition districts are districts that are at 
least 40 percent impacted, have used up to at least 75 percent 
of their bonding capacity, and have an assessed value of 
taxable property per student in the school district that is in 
the lowest 50 percent of school districts within the state.
      Leg. Counsel to craft above language. May need some sort 
of a special rule, or it might be better to just insert parts 
of agreement into suitable sections of the bill.
      12. Both the House bill and the Senate amendment list 
eligibility requirements.
      LC
      13. The House bill but not the Senate amendment lists 
eligibility requirements for emergency grants. An LEA may be 
eligible if it receives formula grants under subsection (a), 
has an emergency condition which threatens the health or safety 
of students and personnel, and meets one of three conditions: 
(1) it has no practical capacity to issue bonds; (2) it has a 
limited capacity to issue bonds with a requirement that the LEA 
has used at least 75 percent of its bonding capacity; or (3) it 
is a heavily impacted district.
      SR with amendment LC to craft language reflecting the 
eligible pool as outlined in the policy above.
      14. The House bill, but not the Senate amendment, 
requires that for an entity to be eligible for an emergency 
grant, that it be eligible to receive formula grants for 
construction under subsection (a).
      HR with amendment LC to craft language reflecting the 
eligible pool as outlined in the policy above.
      15. Both the House bill and the Senate amendment list 
eligibility requirements for Modernization Grants.
      LC
      16. The House bill, but not the Senate amendment states 
that in order to receive a modernization grant, the LEA must 
meet the same criteria as those eligible for an emergency 
grant, except for having a school facility emergency, or must 
qualify as a federal lands district. The Senate amendment lists 
slightly different criteria with different placement (see note 
17).
      SR (per structure outlined in note 11).
      17. The House bill and the Senate amendment have 
identical eligibility requirements for federal property 
districts.
      LC
      18. The Senate amendment provides that in order to be 
eligible for a modernization grant, an LEA and the facility to 
be modernized must be at least 25 percent impacted by certain 
types of connected students.
      SR (per structure outlined in note 11).
      19. The House bill, requires that in order to be eligible 
for a modernization grant, the LEA must have facility needs 
resulting from actions of the federal government. The Senate 
amendment requires this as a criteria for consideration by the 
Secretary (see note 26).
      SR with an amendment to strike ``actions of the federal 
government'' and insert in its place ``a federal presence''.
      20. The House bill, but not the Senate amendment, defines 
the terms lack of practical capacity to issue bonds and minimal 
capacity to issue bonds.
      SR (per structure outlined in note 11).
      LC--May need to recede with an amendment to define 
districts that can receive funding only after those with 
limited or no practical bonding capacity are funded.
      21. Both the House bill and the Senate amendment set 
forth award criteria. The House bill sets forth criteria for 
both emergency and modernization grants. The Senate bill 
requires the Secretary to review applications from federal 
lands districts, Indian lands districts, and military 
districts.
      LC
      Report Language:
      The Conference Report requires the Secretary to consider 
the severity of the need for modernization, which may be 
measured by factors such as overcrowding or the potential for 
overcrowding. The conferees note that such overcrowding may 
arise from housing privatization undertaken by the Department 
of Defense.
      22. The House bill requires the Secretary to take into 
account the ability of a school district to pay for either a 
modernization project or an emergency project. The Senate bill 
requires the Secretary to take into account the districts 
ability to pay for modernization projects.
      SR
      23. The House bill, but not the Senate amendment, sets 
forth the following criteria to measure an LEAs ability to 
carry out a project, including its bonded indebtedness; its 
assessed value of real property per student, compared to the 
state average; the LEAs total tax rate for school purposes 
compared to the state average; and funds available to the LEA 
from other sources.
      SR
      24. Using different language, both the House bill and the 
Senate amendment require the Secretary to consider the lack of 
taxable property due to a federal presence and the impact of 
federally connected children.
      SR
      25. Using different language, both the House bill and the 
Senate amendment require the Secretary to consider the threat 
that a condition poses to health or safety, and overcrowding as 
evidenced by the use of portable facilities.
      SR with amendment to insert (D)(ii).
      26. The Senate amendment requires the Secretary to take 
into account facility needs resulting from the federal 
government. The House bill requires that facility needs result 
from the federal government in order to be eligible (see note 
19).
      SR (per note 19).
      27. The House bill but not the Senate amendment requires 
the Secretary to consider the LEAs inability to maximize the 
use of technology or offer curriculum due to physical facility 
limitations.
      SR
      28. Both the House bill and the Senate amendment require 
the Secretary to consider the age of the facility to be 
modernized.
      LC
      29. Using different language, both the House bill and the 
Senate amendment provide additional award provisions.
      LC
      30. The House bill limits the amount of the cost of a 
project that may be funded under this subsection to 50 percent 
for LEAs that have limited bonding capacity or that qualify 
solely because they are heavily impacted. The Senate amendment 
limits the federal share to 50 percent for all projects.
      SR
      31. The House bill limits the amount an LEA may receive 
under this subsection for LEAs having limited bonding capacity 
or that qualify solely because they are heavily impacted to $3 
million over a 5-year period. The Senate amendment limits the 
amount any LEA may receive to $5 million over a 2-year period.
      HR/SR with an amendment to allow these districts to 
receive up to $4 million in a 4-year period.
      32. The House bill allows the use of in-kind 
contributions to meet the match required of LEAs. The Senate 
amendment has a similar provision with different placement (see 
note 30).
      SR
      33. Both the House bill and the Senate amendment contain 
certain prohibitions on the use of funds under this subsection. 
These provisions are placed differently. The House bill 
prohibits funds from being used for facilities for which the 
LEA does not hold the title, or stadiums or other facilities 
primarily used for events for which admission is charged. The 
Senate amendment prohibits funds under this subsection from 
being used for the acquisition of real property, athletic and 
similar facilities for which admission is charged, and requires 
that all projects carried out with funds provided under this 
subsection to comply with relevant environmental law and 
regulation.
      LC--merge the language from both bills.
      34. Using slightly different language, both the House 
bill and the Senate amendment prohibit LEAs receiving funds 
under this subsection from supplanting funds that would 
otherwise be spent for facilities construction or 
modernization.
      LC
      35. The House bill but not the Senate amendment prohibits 
emergency grants under this subsection from being used for the 
replacement of an existing facility unless such replacement is 
more cost effective than repair of the existing facility.
      SR
      36. The House bill requires that emergency grants for 
which funding is not available shall be considered in the 
following year at the request of the LEA. The Senate amendment 
requires that an eligible entity that applies for a grant which 
is not funded shall have its grant application considered for 
the following fiscal year. The Senate amendment places this 
provision differently than the House bill.
      HR
      37. The House bill and the Senate amendment require LEAs 
seeking a grant under this subsection to submit an application 
to the Secretary.
      LC
      38. The House bill and the Senate amendment require 
different information to be submitted to the Secretary. The 
House bill requires applicants to submit information related to 
the award criteria. In the case of emergency grants, it 
requires a description of the hazard, and a signed statement 
certifying the deficiency. In the case of a modernization 
grant, the House bill requires an explanation for the need for 
the project and the age of the facility, a description of the 
project including a cost estimate, and a description of 
ownership interest in the facility.
      LC--merge the lists of both bills.
      39. The Senate amendment requires the submission of a 
listing of the facilities to be modernized and the percentage 
of federally impacted children, a description of the ownership 
of the property, a description of how the LEA meets the award 
criteria, a description of the project, and a cost estimate for 
the project.
      LC--merge the two.
      40. The Senate amendment requires LEAs applying for an 
emergency grant to submit a signed statement certifying the 
deficiency. This is similar to one of the provisions for 
emergency grants under the House bill (see above).
      SR with an agreement to add report language.
      Report Language:
      The Conferees would urge the Department when awarding 
grants under section 8007(b) of the Impact Aid Program that 
every effort be made to insure that emergency grant application 
requests from all eligible categories of school districts are 
given equal consideration, subject to the requirements of that 
subsection.
      41. The Senate amendment, but not the House bill, 
requires the Secretary to make every effort to meet fully the 
needs of Indian lands and Military Impacted school districts.
      SR
      42. The Senate amendment requires the Secretary to give 
priority based on severity of emergency if more than one grant 
application is received from an Indian lands or military 
district. The priority is based upon severity of the emergency 
and when the application was received. The house bill contains 
an absolute priority for emergency situations under subsection 
(b)(2).
      HR
      43. The House bill, but not the Senate amendment, 
requires the Secretary to report annually to the appropriate 
committees of Congress a justification of grants made under 
this subsection for the previous fiscal year. The House bill 
further defines the appropriate congressional committees.
      SR
      44. The House bill, but not the Senate amendment, 
increases the authorization for appropriation for Impact Aid 
construction to $150 million for FY 2002, and such sums as 
necessary for the four succeeding fiscal years.
      SR
      45. Both the House bill and the Senate bill have 
virtually identical language to clarify that Section 8009 
(equalized states) payments are exempt from state equalization. 
The House bill, but not the Senate amendment, includes a 
reference to section 8003(b)(2).
      SR
      46. Both the House bill and the Senate bill contain 
language to authorize the program through 2006.
      SR with amendment to change word ``six'' to ``seven''.
      47. The House bill, but not the Senate bill contains 
language to transfer and redesignate the program.
      LC
      48. The House bill, but not the Senate bill contains a 
provision to provide that funds appropriated under the current 
placement of the Impact Aid program in Title VIII of the ESEA 
will be available under that program as redesignated as Title 
VI.
      LC
      Report Language:
      Language was included in the FY 2001 National Defense 
Authorization Act to reauthorize the Impact Aid program. As 
part of the reauthorization, language was included in Section 
8002(j) to authorize Section 8002 (payments relating to federal 
acquisition of real property) funding for the Centennial School 
District in Bucks County, Pennsylvania due to their unique 
situation. The Centennial School District is the only school 
district in the nation where the only military facility that 
was located entirely within the boundaries of the school 
district was realigned as a part of base realignment and 
closure (BRAC), but the school district continues to educate 
the children of families who continue to live on that property 
even though the parent(s) are stationed at a federal facility 
located outside the boundaries of the school district. The 
Commander of that federal facility has stated that this current 
situation will continue for the foreseeable future. By moving 
the language of Section 8002(j) of the Impact Aid Program to 
Part D of Title V, the Fund for the Improvement of Education 
(FIE), it is not the intent of the conferees to in any way 
affect the authorization for funding Section 8002(j) and in no 
way minimizes the ability of members to seek funding for the 
authorization on an annual basis.
      49. The House bill, but not the Senate bill contains 
language regarding a Sense of Congress that the Impact Aid 
program should be fully funded.
      HR

               Title VII--Flexibility and Accountability

                         (New Title VI, Part A)

      1. The House bill and the Senate amendment locate this 
part regarding rewards and sanctions pertaining to educational 
achievement in the States in different parts of each piece of 
legislation.
      HR
      2. The House bill and the Senate amendment have different 
section headings regarding financial awards to states.
      HR/SR with amendment to strike all language
      3. The House bill and the Senate amendment use the same 
name for these awards. However, the House bill requires the 
Secretary of Education to make the awards, while the Senate 
amendment allows the Secretary to decide whether to make the 
awards. In addition, both the Senate amendment and the House 
bill refer to the use of a peer review process to make awards, 
although the House provision is located in subsection (f). See 
note 21. Finally, the Senate amendment has the Secretary make 
awards to States making the most progress improving educational 
achievement, while the House bill refers to States making 
significant progress.
      HR/SR with an amendment to strike all language.
      4. The House bill requires the Secretary to give greatest 
weight to the criteria in paragraph (b)(1) of the House bill, 
which the Senate also does, but in subparagraph (a)(2)(B) of 
the Senate bill. See note 14.
      HR/SR with an amendment to strike all language.
      5. The House bill specifically refers to the two groups 
listed, while the Senate amendment refers to groups by 
reference to Title I, part A, which includes, in addition to 
the groups listed in the House bill, the following: students 
with disabilities, students with limited English proficiency, 
migrant students and students by gender.
      HR/SR with an amendment to strike all language.
      6. The House bill, but not the Senate amendment, refers 
to the assessments under section 1111 of Title I, part A. The 
Senate amendment, but not the House bill, refers to students 
reaching the State defined level of proficiency, which, by 
inference, includes the assessments required under Title I, 
part A.
      HR/SR with an amendment to strike all language.
      7. Both the House bill and the Senate amendment require 
the Secretary to examine a State's performance on NAEP 4th and 
8th grade assessments in reading and math. However, the House 
bill refers to a specific school year in which 4th and 8th 
grade NAEP assessment data must be examined, while the Senate 
amendment refers to the 2nd year after which assessment data is 
first available for all States under NAEP in 4th and 8th grade.
      HR/SR with an amendment to strike all language.
      8. The House bill, but not the Senate amendment, allows 
States to choose another assessment to NAEP that meets the 
criteria described in subclauses (b)(B)(ii)(I)-(VIII) of the 
House bill.
      HR with an amendment to strike all language.
      9. The House bill and the Senate amendment require the 
Secretary to also examine the progress of all the State's 
students (as opposed to specific groups, see note 5). Also, the 
House bill and Senate amendment differ in a similar manner as 
previously detailed in notes 6-8.
      HR/SR with an amendment to strike all language.
      10. The House bill and the Senate amendment are the same.
      HR/SR with an amendment to strike all language.
      11. The House bill, but not the Senate amendment, allows 
the Secretary to consider the factors listed in paragraphs (1) 
and (2) following in the House bill. The Senate amendment, but 
not the House bill, requires the Secretary to consider the 
factors listed in clauses (iv) and (v) following in the Senate 
bill.
      HR with an amendment to strike all language.
      12. The House bill and the Senate amendment are the same.
      HR/SR with an amendment to strike all language.
      13. The House bill and the Senate amendment are 
substantially the same with minor, technical differences in 
wording.
      HR/SR with an amendment to strike all language.
      14. See note 4.
      SR with an amendment to strike all language.
      15. The House bill does not contain a similar provision.
      SR with an amendment to strike all language.
      16. The Senate amendment does not contain a similar 
provision.
      HR with an amendment to strike all language.
      17. The House bill does not contain a similar provision.
      SR with an amendment to strike all language.
      18. The House bill does not contain a similar provision.
      SR with an amendment to strike all language.
      19. The House bill does not contain a similar provision; 
however, see section 7104 of the House bill for authorization 
levels. See note 46.
      SR with an amendment to strike all language.
      20. The Senate amendment does not contain a similar 
provision.
      HR with an amendment to strike all language.
      21. See note 3 regarding the peer review process.
      HR with an amendment to strike all language.
      22. The House bill, but not the Senate amendment, 
contains a subsection requiring the Secretary to make grants to 
states to offset the cost of administering the alternative 
assessment to NAEP.
      HR with an amendment to strike all language.
      23. The House bill and Senate amendment have different 
section headings.
      HR/SR with an amendment to strike all language.
      24. The House bill and the Senate amendment are 
substantially the same with the following exceptions: The 
Senate amendment allows the Secretary to reduce State 
administration funds ``by not more than 30 percent'', while the 
House bill does not contain similar discretion for the 
Secretary; and the Senate amendment, but not the House bill, 
requires the Secretary to make any reductions in State 
administrative funds in the ``subsequent fiscal year''.
      HR/SR with an amendment to strike all language.
      25. The House bill does not contain a similar provision, 
but the House bill and the Senate amendment require the 
Secretary to examine similar measures of student performance. 
See notes 26 and 27.
      SR with an amendment to strike all language.
      26. The House bill and the Senate amendment refer to 
``adequate yearly progress'' as defined under Title I, part A, 
section 1111, although the Senate reference is more specific. 
(In addition, the House bill and Senate amendment differ in 
their provisions regarding adequate yearly progress pursuant to 
each respective Title I, part A provisions.) Also see note 5 
regarding the number of groups required to be included by the 
House bill and Senate amendment.
      HR/SR with an amendment to strike all language.
      27. See notes 7 and 8 regarding the differences in the 
House bill and Senate amendment provisions regarding what the 
Secretary must examine to determine, in this case, sanctions.
      HR/SR with an amendment to strike all language.
      28. The House bill, but not the Senate amendment, allows 
the Secretary to increase the reduction in a State's 
administrative funds by not more than an additional 45% for the 
two years following the initial period described in subsection 
(a) of the House bill. The Senate amendment, but not the House 
bill, requires the Secretary to reduce a State's administrative 
funds by not more than 75% in the subsequent fiscal year for 
another year or years following the initial period described in 
subsection (a) of the Senate amendment.
      HR/SR with an amendment to strike all language.
      29. The Senate amendment does not contain a similar 
provision.
      HR with an amendment to strike all language.
      30. The Senate amendment does not contain a similar 
provision.
      HR with an amendment to strike all language.
      31. The House bill, but not the Senate amendment, 
requires the Secretary to reduce a State's administrative funds 
by an additional 20% above the reductions determined in 
subsections (a) and (b) if the State has failed to make 
adequate yearly progress regarding the acquisition of English 
proficiency by students with limited English proficiency 
pursuant to Title I, part A. The Senate amendment, but not the 
House bill, requires the Secretary to determine whether a State 
has met its performance objectives under Title III of the 
Senate bill regarding the acquisition of English proficiency by 
limited English proficient students as part of the initial 
period described in subsection (a).
      HR/SR with an amendment to strike all language.
      32. The House bill does not contain a similar provision.
      SR with an amendment to strike all language.
      33. The Senate amendment does not contain a similar 
provision.
      HR with an amendment to strike all language.
      34. The House bill and the Senate amendment have 
different section headings.
      HR
      35. The House bill and the Senate amendment are 
substantially the same with minor wording differences. In 
addition, the House bill refers specifically to standards and 
assessments required by section 1111 of Title I, part A, while 
the Senate amendment refers to standards and assessments added 
to ESEA current law by the Senate amendment.
      SR
      36. The House bill allows funds provided under this 
section to be used to pay for the costs of the administration 
of the required assessments if the State has already developed 
the required standards and assessments, while the Senate bill 
allows the provided funds to be used for administration 
regardless of the status of development of standards and 
assessments. The Senate provision is located in subparagraph 
(a)(3)(B) following. Otherwise, the House bill and the Senate 
amendment are the same regarding carrying out other activities 
under this part.
      SR
      37. The House bill and the Senate amendment are 
substantially the same with minor wording differences.
      SR
      38. The Senate amendment does not contain a similar 
provision. However, the Senate amendment does reference all 
assessments required in paragraph (a)(1). See note 35.
      SR
      39. See note 36 regarding administration of assessments.
      SR
      40. The Senate does not contain similar provisions as the 
House bill in subparagraphs (C)-(H) following.
      SR with an amendment to insert ``, including professional 
development activities aligned with state academic achievement 
standards and assessments'' at the end of House (F) and to 
strike subparagraph (H) and insert the following:
                  ``(H) improving the dissemination of 
                information on student achievement and school 
                performance to parents and the community, 
                including the development of information and 
                reporting systems designed to identify best 
                educational practices based upon scientifically 
                based research or to assist in linking records 
                of student achievement, length of enrollment, 
                and graduation over time.''
      41. The House bill does not contain a similar provision. 
However, see subsection 7104(b) of the House bill and note 50.
      SR
      42. The House does not contain a similar provision.
      SR
      43. The House contains a similar provision, but it is 
located in paragraph 7104(a)(3) of the House bill. See note 48.
      SR
      44. The House bill and the Senate amendment include a 
provision to provide one-time bonuses to States that complete 
their assessments ahead of the deadline established in Title I, 
part A of each piece of legislation. However, there are 
substantial differences between the two provisions. The Senate 
amendment, but not the House bill, establishes a specific 
school year by which the Secretary shall make the one-time 
bonus payments. The Senate amendment, but not the House bill, 
conditions these bonuses upon the assessments being 
``particularly high quality'' and which are the most successful 
in assessing the ``range and depth of student knowledge and 
proficiency''.
      HR/SR with an amendment to strike all language.
      45. See notes 3 and 21.
      SR with amendment to insert the following from Title I-A 
note 438 as new subsection:

``(#-LC) GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

      ``(a) From funds appropriated under [reference to Title 
VII note 48], the Secretary shall award, on a competitive 
basis, grants to States submitting an application in such time 
and in such manner that the Secretary may require that 
demonstrates to the satisfaction of the Secretary that the 
requirements of this section and part will be met to--
            ``(1) enable States (or consortia of States) and 
        local educational agencies (or consortia of local 
        educational agencies) to collaborate with institutions 
        of higher education, other research institutions, or 
        other organizations to improve the quality, validity 
        and reliability of State academic assessments beyond 
        the requirements for such assessments described in 
        section 1111[(b)(3)];
            ``(2) measure student academic achievement using 
        multiple measures of student academic achievement from 
        multiple sources;
            ``(3) chart student progress over time; and
            ``(4) evaluate student academic achievement through 
        the development of comprehensive academic assessment 
        instruments such as performance and technology-based 
        academic assessments.
      ``(d) Application.--Each State wishing to apply for funds 
under this [paragraph] shall include in its State plan such 
information as the Secretary may require.
      ``(f) Annual Report.--Each State or local educational 
agency receiving a grant under this [section] shall submit an 
annual report to the Secretary describing its activities, and 
the result of those activities, under the grant.
      46. The House bill and the Senate amendment authorize 
appropriations for the same general purposes with minor, 
technical differences in cross-references. In addition, the 
House bill authorizes less than the Senate amendment. The 
Senate amendment, but not the House bill, contains an 
additional authorization of appropriations under section 6201 
in subsection (e).
      HR/SR with amendment to strike all language
      47. The House bill, but not the Senate amendment, 
authorizes $69 million in FY 02 and such sums through FY 06 for 
NAEP and the alternative assessment described in subparagraph 
(b)(1)(B). The Senate amendment, but not the House bill, 
authorizes $110 million in FY 02 and such sums for the 
succeeding 6 fiscal years for NAEP only.
      HR with an amendment to strike ``110,000,000'' and insert 
``72,000,000''.
      48. The House bill and the Senate amendment are similar 
with the exception of technical differences in cross-
references. In addition, the House bill authorizes such sums 
through FY 05, while the Senate amendment authorizes such sums 
for the succeeding 6 fiscal years.
      HR with amendment to strike paragraph (3) and insert the 
following:
            ``(3) Authorization of appropriations.--For the 
        purpose of carrying out paragraph [(1)], there are 
        authorized to be appropriated $490,000,000 for fiscal 
        year 2002, and such sums as may be necessary for each 
        of the 5 succeeding fiscal years.''
      49. The House bill contains a similar provision, but it 
is located in subsection 7103(a) of the House bill. See notes 
35-40.
      SR
      50. The House bill and the Senate amendment establish how 
funds appropriated shall be distributed between the States. 
However, there are substantial differences between the two 
provisions. The House bill, but not the Senate amendment, 
allocates half of the appropriated funds evenly between the 
states and half on the population of children aged 5 to 17 in 
each State. The Senate amendment, but not the House bill, 
allocates a set amount of $3 million per State and allocates 
any remaining funds based on the number of children enrolled in 
public schools in grades 3 through 8.
      HR with amendment to, out of the $490 million authorized 
(at note 48): from amounts equal to or less than the trigger 
amount described in Title I-A for that fiscal year: (1) reserve 
\1/2\ of 1 percent for Interior (BIA); (2) reserve \1/2\ of 1 
percent for Outlying Areas; (3) provide each State $3 million; 
(4) allocate remaining funds, after the application of (1), (2) 
and (3), to each State based on the State's public school 
student population in grades 3-8; AND from funds greater than 
the I-A trigger: (5) allocate funds for approved applications 
under Enhanced Assessment Instruments (see note 45) according 
to the quality, needs and scope of the State application. In 
determining the grant amount, the Secretary shall include any 
funds the State would have received under (6) of this 
paragraph; and (6) allocate any remaining funds after funds are 
allocated in (5) to each State based on population described in 
(4), except that States which received a grant under (5) 
receive none of these remaining funds.
      51. The House does not contain a similar provision.
      HR
      52. The House bill, but not the Senate amendment, 
contains this part allowing SEAs and LEAs flexibility in 
targeting and transferring federal funding.
      SR with amendment to strike subparagraphs (A)-(C) of 
subsection (a)(1) and insert:
                    ``(A) Section 2113(a)(3) of Part A of Title 
                II (Teachers);
                    ``(B) Section 2412(a)(1) of Part D of Title 
                II (Technology);
                    ``(C) Sections 4112(a)(1) (with the 
                agreement of the Governor) and 4112(c)(1) of 
                Part A, and section 4202(c)(3) of Part B of 
                Title IV (Safe and Drug Free and 21st Century); 
                and
                    ``(D) Section 5112(b) of Part A of Title V 
                (Innovative Programs).''
and with amendment to strike subparagraphs (A)-(C) of 
subsection (b)(2) and insert:
                    ``(A) Section 2121 of Part A of Title II 
                (Teachers);
                    ``(B) Section 2412(a)(2)(A) of Part D of 
                Title II (Technology);
                    ``(C) Section 4112(b)(1) of Part A of Title 
                IV (Safe and Drug Free); and
                    ``(D) Section 5112(a) of Part A of Title V 
                (Innovative Programs).''
      53. The House bill and the Senate amendment have 
different headings and titles and locate this part in different 
parts of each piece of legislation.
      HR/SR with amendment to insert new title: ``State and 
Local Flexibility Demonstration'' and SR with amendment to 
insert ``State and'' before ``Local'' in the Short Title.
      54. The Senate amendment, but not the House bill, allows 
SEAs, as well as LEAs, to participate and therefore meet the 
specific requirements. The House bill only allows LEAs. This 
difference is consistent in the provisions throughout these 
parts except as otherwise noted.
      HR
      55. The House bill and the Senate amendment are 
substantially the same with minor wording differences.
      SR
      56. The Senate amendment does not contain a similar 
provision.
      SR
      57. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment adds ``educators'' and ``administrators'' to the 
list.
      HR
      58. The House bill and the Senate amendment are similar 
with the exception that the House bill refers to ``maximum 
freedom'', while the Senate amendment refers to ``greater 
flexibility''.
      HR
      59. The House bill refers to ``Federal barriers'', while 
the Senate amendment refers to barriers in general. The House 
bill refers to effective programs, while the Senate amendment 
refers to effective reform. In addition, the Senate amendment, 
but not the House bill, refers to equality of student 
opportunity and accountability for student progress.
      HR with amendment to strike ``of equality''.
      60. The House bill and the Senate amendment are 
substantially the same with minor wording differences.
      HR
      61. The House bill and the Senate amendment are similar 
with the exception that the Senate amendment, but not the House 
bill, refers to ``low-income and minority students''.
      HR with amendment to strike ``performing'' and insert 
``achieving''.
      62. The House bill and the Senate amendment have 
different headings.
      HR/SR with amendment to insert new section heading of 
``Local Flexibility Demonstration''.
      63. The House bill and the Senate amendment are similar 
with the exceptions that the House bill, but not the Senate 
amendment, references the State's definition of adequate yearly 
progress and with a technical difference in cross-references.
      SR with amendment to insert ``on a competitive basis'' 
after ``shall''.
      64. The House bill, but not the Senate amendment, 
requires the Secretary to enter into performance agreements 
with not more than 100 LEAs. The Senate amendment, but not the 
House bill, requires the Secretary to select not more than 7 
SEAs and 25 LEAs for performance agreements. In addition, the 
House bill and the Senate amendment require the Secretary to 
consider geographic distribution (however, these provisions 
differ, see note 73), while the Senate amendment, but not the 
House bill, also conditions the Secretary's approval of LEA 
participation. See note 74.
      SR with amendment to strike ``100'' and insert ``150'' 
and to insert ``on a competitive basis'' after ``shall'' and to 
add ``consistent with [paragraph (2)--notes 73 and 74] after 
first reference to ``local educational agencies''.
      65. The House bill, but not the Senate amendment, 
specifically requires the submission of a proposed performance 
agreement to the Secretary. Otherwise, the provisions are 
similar.
      SR
      66. The House bill, but not the Senate amendment, 
requires a plan by the LEA to meet the State's definition of 
adequate yearly progress. The Senate amendment, but not the 
House bill, requires the SEA or LEA to exceed the State's 
definition of adequate yearly progress by a statistically 
significant amount while also meeting the various requirements 
in sections 1111 and 1116 of Title I, part A, of the Senate 
amendment.
      SR
      67. The House bill does not contain a similar provision.
      SR
      68. The House bill, but not the Senate amendment, 
requires the LEA to notify the ``State''. The Senate amendment, 
but not the House bill, requires the SEA to notify a list of 
other entities described in subclauses (I) and (II) following 
of the Senate amendment.
      SR
      69. The House bill does not contain a similar provision.
      SR
      70. The House bill does not contain a similar provision.
      SR
      71. The House bill and the Senate amendment are similar 
with a minor wording difference.
      LC
      72. The House bill does not contain a similar provision.
      HR
      73. The House bill, but not the Senate amendment, allows 
the Secretary to enter into no more than 2 performance 
agreements per state for the first three years after the bill 
has been enacted, and subsequent to this period, the Secretary 
can enter into no more than 100 agreements total, regardless of 
the number of agreements per state, so long as there is an 
equitable distribution between urban and rural areas. The 
Senate amendment, but not the House bill, requires the 
Secretary to ensure equitable distribution of selected agencies 
if more than 7 SEAs or 25 LEAs apply. In addition, the Senate 
amendment, but not the House bill, requires the Secretary to 
ensure equitable distribution of agencies between urban and 
rural areas if more than 25 LEAs apply.
      SR with amendment to insert that there must be no less 
than 4, but no more than 10 local flexibility demonstration 
districts in the 7 State Flexibility Demonstration States (for 
a total of 70 districts) and that at least half of the 
districts must be districts with a poverty percentage of 20% or 
higher. If districts do not sign up for local flexibility in 
each of the 7 flex demo States, those districts may not be 
reallocated to non-flex demo States.
      74. The House bill does not contain a similar provision.
      SR with amendment to insert that non-flex demo States may 
have up to 3 local flex demo districts per State, up to a total 
of 80 districts nationally.
      75. The House bill contains a similar provision in 
subparagraph (b)(1)(B). See note 68.
      SR
      76. The House bill contains a similar provision in 
(b)(1)(B), although the House bill refers to ``State''. See 
note 68.
      SR
      77. The House bill does not contain a similar provision.
      SR
      78. The House bill does not contain a similar provision.
      SR
      79. The House bill does not contain a similar provision.
      SR
      80. The House bill does not contain a similar provision.
      SR
      81. The House bill does not contain a similar provision.
      SR
      82. The House bill and the Senate amendment are similar 
with minor wording differences in this provision and the next.
      SR
      83. The House bill and the Senate amendment are 
substantially the same with minor, technical differences in 
wording and cross-references.
      SR
      84. The House bill and the Senate amendment are 
substantially the same with minor, technical differences in 
wording and cross-references.
      SR
      85. The House bill and the Senate amendment require a 
five-year plan and a description of how funds will be combined 
and used, although the Senate provision is located in clause 
(D)(iii) following and refers to exceeding adequate yearly 
progress by a statistically significant amount. The House bill, 
but not the Senate amendment, lists a number of necessary 
requirements in the five-year plan. The Senate amendment 
outlines the necessary requirements in the clauses (i)--(v) 
following of the Senate amendment.
      SR with amendment to insert ``for any educational purpose 
authorized under this Act'' after ``scope of the performance 
agreement''.
      86. The House does not contain similar provisions as the 
Senate amendment in clauses (i)--(v) following of the Senate 
amendment with the exception indicated in note 87 regarding 
Senate amendment clause (iii).
      SR
      87. See note 85.
      SR
      88. The House bill and the Senate amendment are 
substantially similar with the exception that the Senate 
amendment, but not the House bill, requires an assurance of the 
opportunity to comment on the proposed consolidation of funds. 
The Senate amendment, but not the House bill, specifically 
mentions the SEA opportunity to comment on the distribution and 
use of funds to be consolidated.
      SR with amendment to strike ``in accordance with State 
law''.
      89. The House bill and the Senate amendment are the same.
      SR
      90. The House bill and the Senate amendment are 
substantially the same with a minor wording difference.
      SR
      91. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment is more specific as to equitable participation 
provisions for funds consolidate and used under the performance 
agreements. See note 119.
      SR with amendment to insert ``consistent with section 
[Gen. Prov. Reference]'' after ``schools''.
      92. The Senate amendment does not contain a similar 
provision.
      SR
      93. The House bill does not contain a similar provision.
      HR with amendment to strike ``State educational agency'' 
and insert ``local educational agency''.
      94. The House bill does not contain a similar provision.
      SR
      95. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) The 
Senate amendment, but not the House bill, requires the report 
to be disseminated to the extent practicable in the parents' 
language; and (2) The House bill contains a general requirement 
that the report details how achievement has improved and gaps 
have been closed, while the Senate requires a number of 
specific items related to student achievement as detailed in 
clauses (i)-(iii) following of the Senate amendment.
      SR with amendment to strike ``agrees that'' and insert 
``shall,'' and to strike ``the local educational agency shall'' 
before ``disseminate''.
      96. The House bill does not contain a similar provision.
      SR
      97. The House bill does not contain a similar provision.
      SR
      98. The House bill does not contain a similar provision.
      SR
      99. The House bill does not contain a similar provision.
      SR
      100. The House bill requires the Secretary to approve a 
proposed performance agreement 60 days after receipt of the 
agreement, while the Senate amendment requires approval 90 days 
after the deadline established by the Secretary. The Senate 
amendment, but not the House bill, refers to a ``complete'' 
performance agreement.
      SR with amendment for LC to make consistent with 21st 
Century ``deemed approved'' language.
      101. The Senate amendment, but not the House bill, 
contains a provision requiring the Secretary to establish a 
peer review process to review proposed performance agreements.
      HR
      102. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) The 
House bill requires the Secretary to amend the performance 
agreement if the requirements described in paragraphs (2)(A) 
and (B) following of the House bill are met, while the Senate 
amendment allows the SEA to amend contingent on the 
requirements described in paragraphs (2)(A) and (B) following 
of the Senate amendment; and (2) There is a technical 
difference in cross-references.
      SR with amendment to strike ``State'' and insert ``local 
educational agency''.
      103. The House bill and the Senate amendment are 
substantially the same with the following differences: (1) The 
House bill refers to the ``State'' being held accountable, 
while the Senate amendment refers to the SEA being held 
accountable; and (2) There is a technical difference in cross-
references.
      SR with amendment to strike ``a State seeks'' and insert 
``a local educational agency seeking'' and to strike ``State'' 
and insert ``local educational agency'' before ``will be held''
      104. See note 100 regarding differences in the time 
provided the Secretary. In addition, the Senate amendment, but 
not the House bill, allows the Secretary to provide the SEA 
with documentation that the amendment plan ``no longer has 
substantial promise'' of meeting this part's requirements and 
refers to exceeding adequate yearly progress.
      SR with amendment for LC to make consistent with 21st 
Century ``deemed approved'' language.
      105. The House bill and the Senate amendment are 
substantially the same with minor, technical differences in 
wording.
      SR with amendment for LC to make consistent with 21st 
Century ``deemed approved'' language.
      106. The House bill does not contain a similar provision.
      SR
      107. The House bill, but not the Senate amendment, 
addresses the reinstatement of program requirements on the LEA 
once a program is removed from a performance agreement 
beginning on the effective date of the executed amendment. The 
Senate amendment, but not the House bill, addresses the 
execution of adding or removing programs on the first day of 
the first full academic year following the approval of the 
amendment.
      SR
      108. The House bill and the Senate amendment are similar. 
However, the House bill, but not the Senate amendment allows 
the LEA to use its consolidated funds for any purpose in the 
House bill. The Senate amendment, but not the House bill, 
allows the SEA to use its consolidated funds for any purpose of 
the eligible programs listed in subsection 5705(b) and 
contingent upon paragraph (3) of the Senate amendment.
      SR with amendment to strike ``, subject to subsection 
(c),''.
      109. The House bill and the Senate amendment are 
substantially the same with the exceptions of minor wording 
differences and that the House refers to the ``State'', while 
the Senate refers to the SEA.
      SR with amendment to strike ``State'' and insert ``local 
educational agency''.
      110. The House bill does not contain a similar provision.
      SR
      111. The House bill refers to provisions in the House 
bill as eligible, while the Senate amendment refers to 
provisions in law as eligible. In addition, the Senate 
amendment, but not the House bill, specifies that ``only'' 
those funds available in FY 02 and succeeding fiscal years are 
eligible to be consolidated.
      SR
      112. The House bill does not contain a similar provision. 
The Senate amendment includes as eligible programs: Title I, 
part A, Even Start, 21st Century Community Learning Centers, 
Comprehensive School Reform, School Dropout Prevention.
      SR
      113. The House bill refers to the whole of Title II of 
the House bill (regarding Teachers), while the Senate amendment 
refers to certain parts of Title II of the Senate amendment 
(regarding Teachers and Technology).
      SR with amendment to insert ``Section 2121 of Part A of'' 
before ``Title II'' (Teachers);
      114. The House bill does not contain a similar provision. 
The Senate amendment includes Bilingual Education as an 
eligible program.
      SR
      115. The House bill refers to part A of Title IV of the 
House bill (regarding Innovative Programs Block Grant), while 
the Senate amendment refers to subpart 3 of part A of Title V 
of the Senate amendment (regarding Public School Choice), and 
subpart 4 of part B of title V (regarding Innovative Programs 
Block Grant)
      SR with amendment to strike paragraph (2) and insert: 
``(2) Section 2412(a)(2)(A) of Part D of Title II 
(Technology);''
      116. The House bill refers to subpart 1 of part A of 
Title V of the House bill (regarding Safe and Drug Free 
Schools), while the Senate amendment refers to subpart 1 of 
part A of Title IV of the Senate amendment (regarding Safe and 
Drug Free Schools).
      SR with amendment to strike paragraph (3) and insert 
``(3) Section 4112(b)(1) of Part A of Title IV (Safe and Drug 
Free);''
      117. The House bill refers to part B of Title V of the 
House bill (regarding Technology). The Senate amendment refers 
to part C of Title II of the Senate amendment (regarding 
Technology) in paragraph (2). See note 113.
      SR with amendment to strike paragraph (4) and insert 
``(4) Section 5112(a) of Part A of Title V (Innovative 
Programs).''
      118. The House bill does not contain similar provisions 
as the Senate amendment in paragraphs (6)-(8) following of the 
Senate amendment.
      SR
      119. The Senate amendment, but not the House bill 
contains a subsection applying specific equitable participation 
provisions for funds consolidated and used under the 
performance agreements. See note 91.
      SR
      120. The House bill does not contain a similar provision.
      SR
      121. The House bill does not contain a similar provision.
      SR
      122. The House bill does not contain a similar provision.
      SR
      123. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment, but not the House bill, conditions the LEA 
administrative reservation on paragraph 5709(e)(2) regarding 
sanctions.
      SR
      124. The House bill, but not the Senate amendment, 
requires the Secretary to terminate a performance agreement 
before the five-year ending point of the agreement if the LEA 
has failed to make adequate yearly progress for three 
consecutive years. The Senate amendment, but not the House 
bill, requires the Secretary to terminate a performance 
agreement if, after the first full year of the SEA's 
performance agreement, the SEA fails to make its definition of 
adequate yearly progress for 2 consecutive years thereafter or 
fails to exceed its definition of adequate yearly progress by a 
statistically significant amount for three consecutive years 
thereafter. Both the House bill and the Senate amendment 
require the agency under review to be given notice and the 
opportunity for a hearing.
      SR with amendment to strike ``permitting'' and insert 
``requiring''.
      125. The House bill does not contain a similar provision.
      HR with amendment to strike ``State educational agency'' 
and insert ``local educational agency''
      126. The House bill does not contain a similar provision.
      HR with amendment to strike all references to ``State 
educational agency'' and insert in all cases ``local 
educational agency''.
      127. The House bill and the Senate amendment are 
substantially the same with the following exceptions: (1) The 
House bill refers to meeting ``achievement goals'', while the 
Senate amendment refers to meeting the State's definition of 
adequate yearly progress; (2) Minor differences in wording and 
a technical difference in cross-references; and (3) The House 
bill refers to the LEA complying with the program requirements 
previously contained in the performance agreement after the 
agreement has ended, which the Senate also does in subsection 
(d) below.
      SR
      128. The House bill does not contain a similar provision.
      SR
      129. The Senate amendment, but not the House bill, refers 
to the ``first day of the first full academic year''. 
Otherwise, the House bill and the Senate amendment are 
substantially the same, although the House bill contains this 
provision in subsection (b). See note 126.
      SR
      130. The House bill does not contain a similar provision.
      SR
      131. The House bill, but not the Senate amendment 
requires the Secretary to renew for one additional five-year 
term a performance agreement with an agency that has ``met or 
substantially met'' its performance goals at the end of the 
original agreement. The Senate amendment, but not the House 
bill, requires the Secretary to renew for one additional five-
year term a performance agreement with an agency that has 
exceeded the adequate yearly progress in the agreement by a 
statistically significant amount.
      SR with amendment to strike ``State educational agency'' 
and insert ``local educational agency''.
      132. The House bill and the Senate amendment are 
substantially the same with minor wording differences.
      SR
      133. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment, but not the House bill, does not allow for a renewal 
if the required information is not provided to the Secretary 
within 60 days of the end of the term of the original 
performance agreement.
      SR
      134. The House bill and the Senate amendment are 
substantially the same with a technical difference in cross-
references.
      LC
      135. The Senate amendment does not contain a similar 
provision.
      SR
      136. The House bill and the Senate amendment are 
substantially the same with a technical difference in cross-
references. (In addition, the House bill and Senate amendment 
differ in their provisions regarding adequate yearly progress 
pursuant to each respective Title I, part A provisions.)
      LC
      137. The Senate amendment does not contain a similar 
provision.
      HR
      138. The House bill does not contain a similar provision.
      SR with amendment to insert State flexibility 
demonstration, State accountability for AYP, and changes to 
NAEP and NAGB in NESA:
            (1) State flexibility Demonstration:
      The purpose of this part is to allow 7 States additional 
flexibility in the use of federal funds for State 
administration and State activity funds. If a State chooses to 
participate, it does not affect how much money they receive--
the same federal formulas apply.
      Eligible Programs:
            Part A of Title I--State administration only 
        (Education for the Disadvantaged);
            Part B of Title I (Reading First and Even Start);
            Section 2113(a)(3) of Part A of Title II 
        (Teachers);
            Section 2412(a)(1) of Part D of Title II 
        (Technology);
            Sections 4112(a)(1) (with the agreement of the 
        Governor), 4112(c)(1), and 4112(b)(2) of Part A of 
        Title IV (Safe and Drug Free Schools);
            Section 4202(c)(2) and (3) of Part B of Title IV 
        (21st Century Community Learning Centers);
            Sections 5112(a) and 5112(b) of Part A of Title V--
        State administration, State activity and Local activity 
        funds (Innovative Programs Block Grant).
      Title V Block Grant--If the State educational agency 
includes the local activity funds, it must ensure 85% of pre-FY 
2002 funds are sent locally and 100% of funds above the FY 2002 
funds are sent locally.
      Agreement with the Secretary--The State educational 
agency would apply to the Secretary to be able to take 
advantage of this flexibility.
      Use of Funds--Similar to the schoolwide provision which 
allows consolidation of federal dollars at the school level, 
funds could be used for any educational activity authorized 
under H.R. 1, to meet the general purposes of the program funds 
included in the waiver, in order to improve academic 
achievement and close achievement gaps.
      Approval--The Secretary may approve the application only 
if the Secretary determines that such application demonstrates 
substantial promise of carrying out the education reform goals 
of the State.
      Reporting--States would annually report to the Secretary 
on how they are using these funds in accordance with their 
waiver.
      Termination--The Secretary will terminate the State 
flexibility under this part if the State fails to meet adequate 
yearly progress for 2 consecutive years or for non-compliance 
with the terms of the application.
      Alignment--State flexibility demonstration States must 
have no less than 4, but no more than 10, local flexibility 
demonstration districts in alignment with the State flexibility 
demonstration, and that at least half of the districts must be 
districts with a poverty percentage of 20% or higher. Districts 
participating in the State flex demo State must align with the 
State flexibility demonstration for the State to be eligible to 
participate in State flex. Additional local flex demo districts 
beyond the minimum 4 districts required under the State flex 
demo may sign up at any point, up to a total of 10 districts, 
so long as they are in alignment with the State flex demo.
      Districts in a State that is participating in State flex, 
that are not part of the State flex demo (i.e., not the initial 
4 or among the 10 total) may benefit from the State flex demo 
dollars (which is not inclusive of the local flex demo 
dollars).
      Districts that join the State in the State flex demo 
(i.e., the initial 4 or among the 10 total) shall submit their 
performance agreements in conjunction with the State 
application for State flex. The State shall submit a 
``consolidated'' application including the district information 
for those districts participating.
      States have priority in signing up for the State flex 
demo over districts wishing to sign up for the local flex demo 
so as to encourage alignment between the State and districts. 
If the State has not notified the Secretary of their interest 
to participate in State flex in [6] months after enactment, the 
districts in that State may submit performance agreements to 
the Secretary.
      (2) And State accountability for AYP language:

``SEC.   . STATE ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.

      ``(a) Accountability for Adequate Yearly Progress.--After 
a State has had its plan approved under Title I and Title III 
of this Act and such plans have been implemented for 2 years, 
the Secretary shall review whether the State has met its 
adequate yearly progress definition under section 1111 [(b)(2)] 
of this Act for each of the groups of students described in 
section 1111 [(b)(2) . . . (the 4 accountability subgroups)] 
and meet its annual measurable objectives under section [Title 
III] of this Act.
      ``(b) Determination.--The Secretary shall use a peer 
review process to review, based on data from the State 
assessments administered pursuant to section 1111 of this Act, 
whether a State has failed to make its definition of adequate 
yearly progress for two consecutive years, and to review, based 
on data from the evaluations in section [Title III] of this 
Act, whether a State has failed to meet its annual measurable 
objectives under section [Title III] of this Act for two 
consecutive years.
      ``(c) Technical Assistance.--(1) Based on the 
determination described in subsection (b), the Secretary shall 
provide technical assistance to a State that has not met its 
definition of adequate yearly progress no later than the 
beginning of the next school year following the school year in 
which the determination described in subsection (b) is made.
            ``(2) The technical assistance described in 
        paragraph (1) shall:
                    ``(A) be valid, reliable and rigorous; and
                    ``(B) provide constructive feedback to help 
                the State meet its definition of adequate 
                yearly progress.
            ``(3) Based on the determination described in 
        subsection (b), the Secretary may provide technical 
        assistance to a State that has not met its annual 
        objectives in section [Title III] no later than the 
        beginning of the next school year following the school 
        year in which the determination in subsection (b) was 
        made.
            ``(4) The technical assistance described in 
        paragraph (1) shall:
                    ``(A) be valid, reliable, and rigorous; and
                    ``(B) provide constructive feedback to help 
                the State meet its annual measurable objectives 
                in section [Title III].''
      Report Language:
      ``Just as schools and districts that fail to make 
adequate yearly progress for student academic achievement for 
two consecutive years must develop improvement plans, Conferees 
expect States that continually fail to make adequate yearly 
progress to develop and implement strategies that will enable 
the State to make adequate yearly progress and that 
specifically address issues that prevented the State from 
making such progress.''
      (d) Report To Congress.--Beginning with the 2005-2006 
school year, the Secretary shall submit an annual report to the 
Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor 
and Pensions of the Senate containing--
            (1) a list of each State that has not met its 
        definition of adequate yearly progress based on the 
        determination described in subsection (b);
            (2) a list of each State that has not met its 
        annual measurable objectives under section [    --Title 
        III];
            (3) the information reported by the State to the 
        Secretary pursuant to section 1119 [    --teacher 
        accountability]; and
            (4) a description of any technical assistance 
        provided pursuant to subsection (c)
      Report Language:
      Conferees stress that a fundamental purpose of Title I as 
established under this Act is to hold States, local educational 
agencies and schools accountable for improving the academic 
achievement of all students, and for identifying and turning 
around low-performing schools. As a result, Conferees expect 
States to meet their definition of adequate yearly progress to 
the same degree as local school districts and schools. The 
Conferees further urge Congress and the Secretary to thoroughly 
examine the data collected from the State assessment systems 
and factor such information into future discussions on 
accountability measures for States, which should include 
consideration of the use of fiscal sanctions to hold those 
States that continually fail to meet their definition of 
adequate yearly progress and fail to improve the academic 
achievement of all students accountable.
      (3) Sections 411 and 412 of the NESA are amended to read 
as follows:

``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

      ``(a) Establishment.--The Commissioner shall, with the 
advice of the National Assessment Governing Board established 
under section 412, and with the technical assistance of the 
Advisory Council established under section 407, carry out, 
through grants, contracts, or cooperative agreements with one 
or more qualified organizations, or consortia thereof, a 
National Assessment of Educational Progress, which collectively 
refers to a national assessment, State assessments, and a long-
term trend assessment in reading and mathematics.
      ``(b) Purpose; State Assessments.--
            ``(1) Purpose.--The purpose of this section is to 
        provide, in a timely manner, a fair and accurate 
        measurement of student academic achievement and 
        reporting trends in such achievement in reading, 
        mathematics, and other subject matter as specified in 
        this section. The Commissioner, in carrying out this 
        purpose, shall--
                    ``(A) use a random sampling process which 
                is consistent with relevant, widely accepted 
                professional assessment standards and that 
                produces data that is representative on a 
                national and regional basis;
                    ``(B) conduct a national assessment and 
                collect and report assessment data, including 
                achievement data trends, in a valid and 
                reliable manner on student academic achievement 
                in public and private schools at least once 
                every two years, in grades 4 and 8 in reading 
                and mathematics;
                    ``(C) conduct a national assessment and 
                collect and report assessment data, including 
                achievement data trends, in a valid and 
                reliable manner on student academic achievement 
                in public and private schools in reading and 
                mathematics in grade 12 in regularly scheduled 
                intervals, but at least as often as such 
                assessments were conducted prior to the 
                enactment of [HR 1];
                    ``(D) to the extent time and resources 
                allow, and after the requirements described in 
                subparagraph (B) are implemented and then the 
                requirements described in subparagraph (C) are 
                met, conduct additional national assessments 
                and collect and report assessment data, 
                including achievement data trends, in a valid 
                and reliable manner on student academic 
                achievement in grades 4, 8, and 12 in public 
                and private schools in regularly scheduled 
                intervals in additional subject matter, 
                including writing, science, history, geography, 
                civics, economics, foreign languages, and arts, 
                and the trend assessment described in 
                subparagraph (F);
                    ``(E) conduct the reading and mathematics 
                assessments described in subparagraph (B) in 
                the same year, and every other year thereafter, 
                to thereby provide for one year in which no 
                such assessments are conducted in between each 
                administration of such assessments; and
                    ``(F) continue to conduct the trend 
                assessment of academic achievement at ages 9, 
                13, and 17 for the purpose of maintaining data 
                on long-term trends in reading and mathematics.

[Report Language: ``The Conferees intend the long-term trend 
assessment will continue to be administered in the same manner 
as prior to the enactment of [NCLB/BEST]. Further, the 
Conferees intend that NAGB shall formulate policy for the long-
term trend assessment.'']

                    ``(G) include information on special 
                groups, including, whenever feasible, 
                information collected, cross tabulated, 
                compared, and reported by race or ethnicity, 
                socioeconomic status, gender, disability and 
                limited English proficiency; and
                    ``(H) ensure that achievement data are made 
                available on a timely basis following official 
                reporting, in a manner that facilitates further 
                analysis and that includes trend lines;
            ``(2) State assessments.--(A) The Commissioner--
                    ``(i) shall conduct biennial State academic 
                assessments of student achievement in reading 
                and mathematics in grades 4 and 8 as described 
                in paragraphs (1)(B) and (1)(E);
                    ``(ii) may conduct the State academic 
                assessments of student achievement in reading 
                and mathematics in grade 12 as described in 
                paragraph (1)(C);
                    ``(iii) may conduct State academic 
                assessments of student achievement in grades 4, 
                8, and 12 as described in paragraph (1)(D); and
                    ``(iv) shall conduct each such State 
                assessment, in each subject area and at each 
                grade level, on a developmental basis until the 
                Commissioner determines, as the result of an 
                evaluation required by subsection (f), that 
                such assessment produces high quality data that 
                are valid and reliable.
            ``(B)(i) States participating in State assessments 
        shall enter into an agreement with the Secretary 
        pursuant to subsection (d)(3).
            ``(ii) Such agreement shall contain information 
        sufficient to give States full information about the 
        process for decision-making (which shall include the 
        consensus process used), on objectives to be tested, 
        and the standards for random sampling, test 
        administration, test security, data collection, 
        validation, and reporting.
            ``(C)(i) Except as provided in clause (ii), a 
        participating State shall review and give permission 
        for the release of results from any test of its 
        students administered as a part of a State assessment 
        prior to the release of such data. Refusal by a State 
        to release its data shall not restrict the release of 
        data from other States that have approved the release 
        of such data.
            ``(ii) A State participating in the biennial 
        academic assessments of student achievement in reading 
        and mathematics in grades 4 and 8 shall be deemed to 
        have given its permission to release its data if it has 
        an approved plan under section 1111 of the Elementary 
        and Secondary Education Act of 1965.
            ``(3) Prohibited activities.--
                    ``(A) The use of assessment items and data 
                on any assessment authorized under this section 
                by an agent or agents of the Federal Government 
                to rank, compare, or otherwise evaluate 
                individual students or teachers, or to provide 
                rewards or sanctions for individual students, 
                teachers, schools or local educational agencies 
                is prohibited.
                    ``(B) Special rule.--Any assessment 
                authorized under this section shall not be used 
                by an agent or agents of the Federal Government 
                to establish, require, or influence the 
                standards, assessments, curriculum, including 
                lesson plans, textbooks, or classroom 
                materials, or instructional practices of States 
                or local educational agencies.
                    ``(C) Applicability to student educational 
                decisions.--Nothing in this section shall 
                prescribe the use of any assessment authorized 
                under this section for student promotion or 
                graduation purposes.
                    ``(D) Applicability to home schools.--
                Nothing in this section shall be construed to 
                affect home schools, whether or not a home 
                school is treated as a home school or a private 
                school under State law, nor shall any home 
                schooled student be required to participate in 
                any assessment referenced or authorized under 
                this section.
            ``(4) In carrying out any assessment authorized 
        under this section, the Commissioner, in a manner 
        consistent with subsection (c)(2), shall--
                    ``(A) use widely accepted professional 
                testing standards, objectively measure academic 
                achievement, knowledge, and skills, and ensure 
                that any academic assessment authorized under 
                this section be tests that do not evaluate or 
                assess personal or family beliefs and attitudes 
                or publicly disclose personally identifiable 
                information;

[Report language: The Conferees wish to clarify that this 
provision does not prohibit the use of essay, extended 
response, or short answer test items, nor does it prohibit the 
use of test items which require a student to analyze a passage 
of text, or to express opinions provided that such test items 
are developed consistent with widely accepted professional 
assessment standards. Further, it does not preclude the use of 
non-intrusive, non-cognitive questions, approved by the 
National Assessment Governing Board, whose direct relationship 
to academic achievement has been demonstrated and is being 
studied as part of the National Assessment of Educational 
Progress for the purposes of improving such achievement.]

                    ``(B) only collect information that is 
                directly related to the appraisal of academic 
                achievement, and to the fair and accurate 
                presentation of such information; and''

[Report Language: The Conferees wish to clarify that ``fair and 
accurate presentation'' is intended to mean that the data and 
information resulting from the implementation of this section, 
whether aggregated at the national, regional, or State level, 
are valid and reliable and reported to the public in a manner 
that is impartial and free of misinterpretation, such as 
ensuring the statistical accuracy of the data and information 
and not ranking State performance.]

                    ``(C) collect information on race, 
                ethnicity, socioeconomic status, disability, 
                limited English proficiency, and gender.
            ``(5) Technical assistance.--In carrying out any 
        assessment authorized under this section, the 
        Commissioner may provide technical assistance to 
        States, localities, and other parties.
      ``(c) Access.--
            ``(1) Public access.--Except as provided in 
        paragraph (2), parents and members of the public shall 
        have access to all assessment data, questions, and 
        complete and current assessment instruments of any 
        assessment authorized under this section. The local 
        educational agency shall make reasonable efforts to 
        inform parents and members of the public about the 
        access required under this paragraph.
                    ``(A) The access described in this 
                paragraph shall be provided within 45 days of 
                the date the request was made, in writing, and 
                be made available in a secure setting that is 
                convenient to both parties.''

[Report Language: ``The Conferees intend the access provided in 
subsection (c)(1) to be arranged by the Department of 
Education.'']

                    ``(B) To protect the integrity of the 
                assessment, no copy of the assessment items or 
                assessment instruments shall be duplicated or 
                taken from the secure setting.
            ``(2) Parents and members of the public may submit 
        written complaints to the National Assessment Governing 
        Board.
                    ``(A) The National Assessment Governing 
                Board shall forward such complaints to the 
                Commissioner of the National Center of 
                Education Statistics, the Secretary of 
                Education, and the State and local educational 
                agency from within which the complaint 
                originated within 30 days of receipt of such 
                complaint.
                    ``(B) The National Assessment Governing 
                Board, in consultation with the Commissioner of 
                the National Center for Education Statistics, 
                shall review such complaint and determine 
                whether revisions are necessary and 
                appropriate. As determined by such review, the 
                Board shall revise, as necessary and 
                appropriate, the procedures or assessment items 
                that have generated the complaint and respond 
                to the individual submitting the complaint, 
                with a copy of such response provided to the 
                Secretary, describing any action taken, not 
                later than 30 days after so acting.
                    ``(C) The Secretary shall submit a summary 
                report of all complaints received pursuant to 
                subparagraph (A) and responses by the National 
                Assessment Governing Board pursuant to 
                subparagraph (B) to the Chairman of the House 
                Committee on Education and the Workforce, and 
                the Chairman of the Senate Committee on Health, 
                Education, Labor, and Pensions.
                    ``(D) Special rule.--(i) The Commissioner 
                may decline to make widely available through 
                public means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies, for a period, not to 
                exceed ten years after initial use, cognitive 
                questions that the Commissioner intends to 
                reuse in the future.
                            ``(ii) Notwithstanding clause (i), 
                        the Commissioner may decline to make 
                        cognitive questions widely available as 
                        described in clause (i) for a period 
                        longer than ten years if the 
                        Commissioner determines such additional 
                        period is necessary to protect the 
                        security and integrity of long-term 
                        trend data.''

[Report Language: ``The Conferees wish to clarify that the 
access described in paragraph (1) shall continue to be provided 
to parents and members of the public who request it in writing 
to all cognitive questions and complete and current assessment 
instruments of any assessment authorized under this section, 
including those test items that the Commissioner intends to 
withhold pursuant to subparagraph (G).'']

            ``(2) Personally identifiable information.--
                    ``(A) The Commissioner shall ensure that 
                all personally identifiable information about 
                students, their academic achievement, and their 
                families, and that information with respect to 
                individual schools, remains confidential, in 
                accordance with section 552a of title 5, United 
                States Code.
                    ``(B) Neither the National Board, the 
                Commissioner, nor any contractor or 
                subcontractor shall maintain any system of 
                records containing a student's name, birth 
                information, Social Security number, or 
                parents' name or names, or any other personally 
                identifiable information.
            ``(3) Any unauthorized person who knowingly 
        discloses, publishes, or uses assessment questions, or 
        complete and current assessment instruments of any 
        assessment authorized under this section may be fined 
        as specified in section 3571 of title 18, United States 
        Code or charged with a class E felony.
      ``(d) Participation.--
            ``(1) Voluntary participation.--Participation in 
        any assessment authorized under this section shall be 
        voluntary for students, schools and local educational 
        agencies.
            ``(2) Student participation.--Parents of children 
        selected to participate in any assessment authorized 
        under this section shall be informed before the 
        administration of any authorized assessment, that their 
        child may be excused from participation for any reason, 
        is not required to finish any authorized assessment, 
        and is not required to answer any test question.
            ``(3) State participation.--
                    ``(A) Participation in assessments 
                authorized under this section, other than 
                reading and mathematics in grades 4 and 8, 
                shall be voluntary.
                    ``(B) For reading and mathematics 
                assessments in grades 4 and 8, the Secretary 
                shall enter into an agreement with any State 
                carrying out an assessment for the State under 
                this subsection. Each such agreement shall 
                contain provisions designed to ensure that the 
                State will participate in the assessment.
            ``(4) Review.--Representatives of State and local 
        educational agencies or the chief State school officer 
        shall have the right to review any assessment item or 
        procedure of any authorized assessment upon request in 
        a manner consistent with subsection (c), except the 
        review described in subparagraph (1)(E) of subsection 
        (c) shall take place in consultation with the 
        representatives described in this paragraph.
      ``(e) Student Achievement Levels.--
            ``(1) Achievement levels.--The National Assessment 
        Governing Board, established under section 412, shall 
        develop appropriate student achievement levels for each 
        grade or age in each subject area to be tested under 
        assessments authorized under this section, except the 
        trend assessment described in subsection (b)(1)(F).
            ``(2) Determination of levels.--
                    ``(A) Such levels shall be determined by--
                            ``(i) identifying the knowledge 
                        that can be measured and verified 
                        objectively using widely accepted 
                        professional assessment standards;
                            ``(ii) developing achievement 
                        levels that are consistent with 
                        relevant widely accepted professional 
                        assessment standards and based on the 
                        appropriate level of subject matter 
                        knowledge for grade levels to be 
                        assessed, or the age of the students, 
                        as the case may be.
                            ``(iii) after the determinations 
                        described in clauses (i) and (ii), such 
                        levels shall be further devised through 
                        a national consensus approach; and''

[Report language: The national consensus approach shall 
include, but not be limited to, parents, concerned members of 
the public, teachers, principals, local school administrators, 
curriculum specialists, and experts described in section 
412(e)(1)(E).]
                            ``(iv) used on a trial basis until 
                        the Commissioner determines, as a 
                        result of an evaluation under 
                        subsection (f), that such levels are 
                        reasonable, valid, and informative to 
                        the public. The Commissioner and the 
                        Board shall ensure that reports using 
                        such levels on a trial basis do so in a 
                        manner that makes clear the status of 
                        such levels.
                  ``(B) Such levels shall be updated as 
                appropriate by the National Assessment 
                Governing Board in consultation with the 
                Commissioner.
            ``(3) Reporting.--After determining that such 
        levels are reasonable, valid, and informative to the 
        public, as the result of an evaluation under subsection 
        (f), the Commissioner shall use such levels or other 
        methods or indicators for reporting results of the 
        National Assessment and State assessments.
            ``(4) The National Assessment Governing Board shall 
        provide for a review of any trial student achievement 
        levels under development by representatives of State 
        educational agencies or the chief State school officer 
        in a manner consistent with subsection (c), except the 
        review described in subparagraph (1)(E) of subsection 
        (c) shall take place in consultation with the 
        representatives described in this paragraph.
      ``(f) Review of National and State Assessments.--
            ``(1) In general.--(A) The Secretary shall provide 
        for continuing review of any assessment authorized 
        under this section, and student achievement levels, by 
        one or more professional assessment evaluation 
        organizations.
            ``(B) Such continuing review shall address--
                    ``(i) whether any authorized assessment is 
                properly administered, produces high quality 
                data that are valid and reliable, is consistent 
                with relevant widely accepted professional 
                assessment standards, and produces data on 
                student achievement that are not otherwise 
                available to the State (other than data 
                comparing participating States to each other 
                and the Nation); and
                    ``(ii) whether student achievement levels 
                are reasonable, valid, reliable, and 
                informative to the public;
                    ``(iii) whether any authorized assessment 
                is being administered as a random sample and is 
                reporting the trends in academic achievement in 
                a valid and reliable manner in the subject 
                areas being assessed;
                    ``(iv) whether any of the test questions 
                are biased, consistent with section 412(e)(4);
                    ``(v) whether the appropriate authorized 
                assessments are measuring, consistent with 
                section 411, reading ability and mathematical 
                knowledge.
            ``(2) Report.--The Secretary shall report to the 
        Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Health, 
        Education, Labor and Pensions of the Senate, the 
        President, and the Nation on the findings and 
        recommendations of such reviews.
            ``(3) Use of findings and recommendations--The 
        Commissioner and the National Assessment Governing 
        Board shall consider the findings and recommendations 
        of such reviews in designing the competition to select 
        the organization, or organizations, through which the 
        Commissioner carries out the National Assessment.
      (g) ``Coverage Agreements.--
            ``(1) Department of defense schools.--The Secretary 
        and the Secretary of Defense may enter into an 
        agreement, including such terms as are mutually 
        satisfactory, to include in the National Assessment 
        elementary and secondary schools operated by the 
        Department of Defense.
            ``(2) Bureau of indian affairs schools.--The 
        Secretary and the Secretary of the Interior may enter 
        into an agreement, including such terms as are mutually 
        satisfactory, to include in the National Assessment 
        schools for Indian children operated or supported by 
        the Bureau of Indian Affairs.''

``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

      ``(a) Establishment.--There is established the National 
Assessment Governing Board (hereafter in this title referred to 
as the ``Board''), which shall formulate policy guidelines for 
the National Assessment.
      ``(b) Membership.--
            ``(1) Appointment and composition.--The Board shall 
        be appointed by the Secretary and be composed of--
                    ``(A) two Governors, or former Governors, 
                who shall not be members of the same political 
                party;
                    ``(B) two State legislators, who shall not 
                be members of the same political party;
                    ``(C) two chief State school officers;
                    ``(D) one superintendent of a local 
                educational agency;
                    ``(E) one member of a State board of 
                education;
                    ``(F) one member of a local board of 
                education;
                    ``(G) three classroom teachers representing 
                the grade levels at which the National 
                Assessment is conducted;
                    ``(H) one representative of business or 
                industry;
                    ``(I) two curriculum specialists;
                    ``(J) three testing and measurement 
                experts, who shall have training and experience 
                in the field of testing and measurement;
                    ``(K) one nonpublic school administrators 
                or policymakers;
                    ``(L) two school principals, of whom one 
                shall be an elementary school principal and one 
                shall be a secondary school principal;
                    ``(M) two parents who are not employed by a 
                local, State or federal educational agency; and
                    ``(N) two additional members who are 
                representatives of the general public, and who 
                may be parents, but who are not employed by a 
                local, State, or federal educational agency.
            ``(2) Assistant secretary for educational 
        research.--The Assistant Secretary for Educational 
        Research and Improvement shall serve as an ex officio, 
        nonvoting member of the Board.
            ``(3) Special rule.--The Secretary and the Board 
        shall ensure at all times that the membership of the 
        Board reflects regional, racial, gender, and cultural 
        balance and diversity and that the Board exercises its 
        independent judgment, free from inappropriate 
        influences and special interests.
      ``(c) Terms.--
            ``(1) In general.--Terms of service of members of 
        the Board shall be staggered and may not exceed a 
        period of 4 years, as determined by the Secretary.
            ``(2) Service limitation.--Members of the Board may 
        serve not more than two terms.
            ``(3) Change of status.--A member of the Board who 
        changes status under subsection (b) during the term of 
        the appointment of the member may continue to serve as 
        a member until the expiration of such term.
            ``(4) Conforming provision.--Members of the Board 
        previously granted 3 year terms, whose terms are in 
        effect on the date of enactment of the Department of 
        Education Appropriations Act, 2001, shall have their 
        terms extended by one year.
      ``(d) Vacancies.--
            ``(1) In general.--
                    ``(A) The Secretary shall appoint new 
                members to fill vacancies on the Board from 
                among individuals who are nominated by 
                organizations representing the type of 
                individuals described in subsection (b)(1) with 
                respect to which the vacancy exists.
                    ``(B) Each organization submitting 
                nominations to the Secretary with respect to a 
                particular vacancy shall nominate for such 
                vacancy six individuals who are qualified by 
                experience or training to fill the particular 
                Board vacancy.
                    ``(C) The Secretary's appointments shall 
                maintain the composition, diversity, and 
                balance of the Board required under subsection 
                (b).
            ``(2) Additional nominations.--The Secretary may 
        request that each organization described in paragraph 
        (1)(A) submit additional nominations if the Secretary 
        determines that none of the individuals nominated by 
        such organization have appropriate knowledge or 
        expertise.
      ``(e) Duties.--
            ``(1) In general.--In carrying out its functions 
        under this section the Board shall--
                    ``(A) select the subject areas to be 
                assessed (consistent with section 411(b)(1));
                    ``(B) develop appropriate student 
                achievement levels as provided in section 
                411(e);
                    ``(C) develop assessment objectives 
                consistent with the requirements of this 
                section and test specifications that produce an 
                assessment that is valid and reliable, and are 
                based on relevant widely accepted professional 
                standards;
                    ``(D) develop a process for review of the 
                assessment which includes the active 
                participation of teachers, curriculum 
                specialists, local school administrators, 
                parents, and concerned members of the public;
                    ``(E) design the methodology of the 
                assessment to ensure that assessment items are 
                valid and reliable, in consultation with 
                appropriate technical experts in measurement 
                and assessment, content and subject matter, 
                sampling, and other technical experts who 
                engage in large scale surveys, including the 
                Advisory Council established under section 407;
                    ``(F) consistent with section 411, measure 
                student academic achievement in grades 4, 8, 
                and 12 in the authorized academic subjects;
                    ``(G) develop guidelines for reporting and 
                disseminating results;
                    ``(H) develop standards and procedures for 
                regional and national comparisons; and
                    ``(I) take appropriate actions needed to 
                improve the form, content, use, and reporting 
                of results of any assessment authorized by 
                section 411 consistent with the provisions of 
                this section and section 411.
            ``(2) Delegation.--The Board may delegate any of 
        the Board's procedural and administrative functions to 
        its staff.
            ``(3) All cognitive and non cognitive assessment 
        items.--The Board shall have final authority on the 
        appropriateness of all assessment items.
            ``(4) Prohibition against bias.--The Board shall 
        take steps to ensure that all items selected for use in 
        the National Assessment are free from racial, cultural, 
        gender, or regional bias and are secular, neutral, and 
        non-ideological.
            ``(5) Technical.--In carrying out the duties 
        required by paragraph (1), the Board may seek technical 
        advice, as appropriate, from the Commissioner and the 
        Advisory Council on Education Statistics and other 
        experts.
            ``(6) Report.--Not later than 90 days after an 
        evaluation of the student achievement levels under 
        section 411(e), the Board shall make a report to the 
        Secretary, the Committee on Education and Labor of the 
        House of Representatives, and the Committee on Labor 
        and Human Resources of the Senate describing the steps 
        the Board is taking to respond to each of the 
        recommendations contained in such evaluation.
      ```(f) Personnel.--
            ``(1) In general.--In the exercise of its 
        responsibilities, the Board shall be independent of the 
        Secretary and the other offices and officers of the 
        Department.
            ``(2) Staff.--
                    ``(A) The Secretary may appoint, at the 
                request of the Board, such staff as will enable 
                the Board to carry out its responsibilities.
                    ``(B) Such appointments may include, for 
                terms not to exceed three years and without 
                regard to the provisions of title 5, United 
                States Code, governing appointments in the 
                competitive service, not more than six 
                technical employees who may be paid without 
                regard to the provisions of chapter 51 and 
                subchapter III of chapter 53 of such title 
                relating to classification and General Schedule 
                pay rates.
      (g) Coordination.--The Commissioner and the Board shall 
meet periodically--
            ``(1) to ensure coordination of their duties and 
        activities relating to the National Assessment; and
            ``(2) for the Commissioner to report to the Board 
        on the Department's actions to implement the decisions 
        of the Board.
      ``(h) Administration.--Only sections 10, 11, and 12 of 
the Federal Advisory Committee Act shall apply with respect to 
the Board.

                     Title VIII--General Provisions

                             (New Title IX)

      1. The House bill and the Senate amendment have identical 
definitions of ``average daily attendance'' with a small 
technical difference in wording in paragraph (D).
      HR
      2. The House bill and the Senate amendment have identical 
definitions of ``average per pupil expenditure.''
      LC
      3. The House bill, but not the Senate amendment, includes 
a definition of ``beginning teacher.''
      SR
      4. The House bill and the Senate amendment have identical 
definitions of ``child.''
      LC
      5. The House bill, but not the Senate amendment includes 
a definition of ``child with a disability.''
      SR with an amendment that the term ``child with 
disability'' means the same as such words in section 602 of the 
Individuals with Disabilities Education Act.
      6. The House bill and the Senate amendment have identical 
definitions of ``community-based organization.''
      LC
      7. The House bill and the Senate amendment have identical 
definitions of ``consolidated local application'' with a 
technical difference in cross-references.
      LC
      8. The House bill and the Senate amendment have identical 
definitions of ``consolidated local plan'' with a technical 
difference in cross-references.
      LC
      9. The Senate amendment notes that the application is 
submitted after consultation with the Governor. The House bill 
does not have such a provision in the definition. However, see 
note 65 relating to consolidated state applications under 
section 8302 of the House bill.
      SR
      Report Language:
      The Conferees recognize the importance of federal funds 
working in conjunction with state education reform efforts. It 
is the intent of the Conferees that consultation with the 
Governor by the State educational agency on the federal 
education plans be a meaningful and regular collaboration.
      LC--insert in alphabetical order the following definition 
for Core Academic Subjects:
      ``(#) Core Academic Subjects.--The term `core academic 
subjects' means English, reading or language arts, mathematics, 
science, foreign languages, civics and government, economics, 
arts, history, and geography.''
      10. The Senate amendment notes that the plan is submitted 
after consultation with the Governor. The House bill does not 
have such a provision in the definition. However, see note 65 
relating to consolidated state applications which references 
consultation with the Governor in the House bill.
      SR
      11. The House bill and the Senate amendment have 
identical definitions of ``county.''
      LC
      12. The House bill and Senate amendment are similar with 
the exception that the House bill covers more programs.
      HR/SR with an amendment as follows:
            (#) Covered program.--The term ``covered program'' 
        means each of the programs authorized by--
                    (A) part A of title I; [Disadvantaged]
                    (B) subpart 3 of part B of title I; [Even 
                Start]
                    (C) part C of title I; [Migrants]
                    (D) part D of title I; [Neglected & 
                Delinquent]
                    (E) part F of title I; [Comprehensive 
                School Reform]
                    (F) part A of title II; [Teachers]
                    (G) part D of title II; [Technology]
                    (H) part A of title III; [Bilingual]
                    (I) part A of title IV; [Safe & Drug Free]
                    (J) part B of title IV; [21st Century 
                Schools]
                    (K) part A of title V; and [Block Grant]
                    (L) subpart 2 of part B of title VI. 
                [Rural]
      13. The House bill and the Senate amendment are 
substantially similar with the exception that the Senate 
amendment includes expenditures for health services, while the 
House bill does not. The House bill, but not the Senate 
amendment excludes expenditures from funds received under Title 
I. The reference to part A of title IV in the House bill and 
the reference to subpart 4 of part B of title V are references 
to the same thing--the innovative grants program.
      HR on 11 (A)
      SR on 11 (B)
      14. The House bill and the Senate amendment are 
identical.
      LC (fit between definitions at note 14 and 15) insert the 
following definition for the term distance learning: ``the 
transmission of educational or instructional programming to 
geographically dispersed individuals and groups via 
telecommunications.''
      15. The House bill and the Senate amendment are 
identical.
      LC
      16. The House bill, but not the Senate amendment, 
includes a definition of ``effective schools program.''
      SR
      17. The House bill and the Senate amendment are 
identical.
      LC
      18. The House bill, but not the Senate amendment, 
includes a definition of ``essential components of reading 
instruction.''
      SR with an amendment to move definition approved to Title 
I, Part B notes 117-119:
            ``(18) Essential components of reading 
        instruction.--The term ``major components of reading 
        instruction'' means systematic instruction that 
        includes--
                    (A) phonemic awareness;
                    (B) phonics;
                    (C) vocabulary development;
                    (D) reading fluency, including oral reading 
                skills; and
                    (E) reading comprehension strategies.
      LC--insert in alphabetical order the following definition 
for Exemplary Teacher:
                    ``(#) Exemplary teacher.--The term 
                `exemplary teacher' means a teacher who--
                            ``(i) is a highly qualified teacher 
                        such as a master teacher;
                            ``(ii) has been teaching for at 
                        least 5 years in a public or private 
                        school or institution of higher 
                        education;
                            ``(iii) is recommended by 
                        administrators and other teachers who 
                        are knowledgeable of the individual's 
                        performance;
                            ``(iv) is currently teaching and 
                        based in a public school; and
                            ``(v) assists other teachers in 
                        improving instructional strategies, 
                        improves the skills of other teachers, 
                        performs mentoring, develops 
                        curriculum, and offers other 
                        professional development.''
      19. The House bill, but not the Senate amendment, 
includes a definition of ``family literacy services''
      SR
      20. The House bill and the Senate amendment are 
identical.
      LC
      21. The House bill, but not the Senate amendment, 
includes a definition of ``fully qualified.''
      LC--insert in alphabetical order the following definition 
for Highly Qualified:
          (#) Highly qualified.--The term ``highly qualified 
        teacher''--
                    (A) when used with respect to any public 
                elementary or secondary school teacher means 
                that--
                            (i) the teacher has obtained full 
                        State certification as a teacher 
                        (including certification obtained 
                        through alternative routes to 
                        certification) or passed the State 
                        teacher licensing exam, and holds a 
                        license to teach in such State, except 
                        that when used with respect to any 
                        teacher teaching in a public charter 
                        school, means that the teacher meets 
                        the requirements set forth in the 
                        State's public charter school law; and,
                            (ii) the teacher has not had 
                        certification or licensure requirements 
                        waived on an emergency, temporary, or 
                        provisional basis.
                    (B) when used with respect to--
                            (i) an elementary school teacher 
                        that is new to the profession, means 
                        that the teacher holds a bachelor's 
                        degree and has demonstrated, by passing 
                        a rigorous State test or tests, subject 
                        knowledge and teaching skills in 
                        reading, writing, mathematics, and 
                        other areas of the basic elementary 
                        school curriculum. This requirement 
                        shall be considered to be met if a 
                        teacher has passed a state-required 
                        licensure or certification test or 
                        tests, in reading, writing, 
                        mathematics, and other elements of the 
                        basic elementary school curriculum;
                            (ii) a middle or secondary school 
                        teacher that is new to the profession, 
                        means that the teacher holds at least a 
                        bachelor's degree and demonstrates a 
                        high level of competency in each of the 
                        subject areas in which he or she 
                        teaches through--
                                    (I) a passing level of 
                                performance on a rigorous State 
                                academic subject area test in 
                                each of the subject areas in 
                                which he or she provides 
                                instruction. This requirement 
                                shall be considered to be met 
                                if a teacher has passed a 
                                state-required licensure or 
                                certification test or tests in 
                                each of the subject areas in 
                                which he or she provides 
                                instruction; or
                                    (II) completion, in each of 
                                the subject areas in which he 
                                or she provides instruction, 
                                of: an academic major, a 
                                graduate degree, successful 
                                completion of coursework 
                                equivalent to an undergraduate 
                                major, or advanced 
                                certification or credentialing.
                    (C) When used with respect to an 
                elementary, middle, or high school teacher that 
                is not new to the profession means that the 
                teacher holds a bachelor's degree and has--
                            (i) met the applicable standard in 
                        (B)(i) or (B)(ii), which includes an 
                        option for a test, or
                            (ii) demonstrates competence in all 
                        the subjects he or she teaches based on 
                        a high objective uniform state standard 
                        of evaluation that:
                                    (aa) is set by the State 
                                for both grade appropriate 
                                academic subject area knowledge 
                                and teaching skills;
                                    (bb) is aligned with State 
                                content and student academic 
                                achievement standards and 
                                developed in consultation with 
                                core content specialists, 
                                teachers, principals, and 
                                school administrators;
                                    (cc) provides objective, 
                                coherent information about 
                                teachers' attainment of core 
                                content knowledge in the 
                                subject or subjects they teach;
                                    (dd) is applied uniformly 
                                to all teachers in the same 
                                subject and the same grade 
                                level throughout the state;
                                    (ee) shall take into 
                                consideration, but not be based 
                                primarily on, the time the 
                                teacher has been teaching in 
                                the subject area;
                                    (ff) shall be made 
                                available to the public upon 
                                request; and
                                    (gg) may involve multiple, 
                                objective measures of teacher 
                                competency.
      Report Language:
      With respect to the alternative standard in subsection 
(C)(ii), the conferees intend that elementary school teachers 
would meet this standard by demonstrating appropriate knowledge 
and teaching skills for the grade levels and subjects they 
teach.
      22. The House bill and Senate amendment are identical.
      LC
      23. The House bill and Senate amendment are identical.
      LC with an amendment to change ``section 101'' to 
``section 101(a)''
      24. The House bill, but not the Senate amendment, 
includes a definition of ``limited English proficient 
student.''
      SR with an amendment to include the following language:
            ``(4) Limited english proficient.--The term 
        `limited English proficient' means an individual--
                    ``(A) who is aged 3 through 21;
                    ``(B) who is enrolled or preparing to 
                enroll in an elementary school or secondary 
                school;
                    ``(C)(i) who was not born in the United 
                States or whose native language is a language 
                other than English;
                    ``(ii)(I) who is a Native American or 
                Alaska Native, or a native resident of the 
                outlying areas; and
                    ``(II) who comes from an environment where 
                a language other than English has had a 
                significant impact on such individual's level 
                of English language proficiency; or
                    ``(iii) who is migratory, whose native 
                language is a language other than English, and 
                who comes from an environment where a language 
                other than English is dominant; and
                    ``(D) who has sufficient difficulty 
                speaking, reading, writing, or understanding 
                the English language, and whose difficulties 
                may deny the individual--
                            ``(i) the ability to meet the 
                        State's proficient level of performance 
                        on State assessments described in 
                        section 1111(b)(3);
                            ``(ii) the ability to successfully 
                        achieve in classrooms where the 
                        language of instruction is English; or
                            ``(iii) the opportunity to 
                        participate fully in society.
      25. The House bill and the Senate amendment are identical 
with the exception that the House bill includes educational 
service agencies or consortium of such agencies in this 
definition under (D).
      LC; SR with an amendment to add subsection (e) as 
follows:
      ``(e) The term includes the State Educational Agency in a 
State in which the State Educational Agency is the sole 
educational agency for all public schools.''
      26. The House bill and the Senate amendment are 
substantially the same. However, the Senate amendment limits 
application of this definition to mentoring other than teacher 
mentoring.
      SR with an amendment:
            (26) Mentoring.--The term `mentoring' means, except 
        when used to mean `teacher mentoring,' a process by 
        which a responsible adult, postsecondary student, or 
        secondary student works with a child to provide a 
        positive role model for the child, to establish a 
        supportive relationship with the child, and to provide 
        the child with academic assistance and exposure to new 
        experiences and examples of opportunity that enhance 
        the ability of the child to become a responsible adult.
      27. The House bill, but not the Senate amendment, 
includes a definition of ``Native American'' and ``Native 
American language.''
      SR
      28. The House bill and the Senate amendment have 
identical definitions of ``other staff.''
      LC
      29. The House bill, but not the Senate amendment, would 
limit eligibility for the Marshall Islands, Federated States of 
Micronesia, and Palau through fiscal year 2003. The House bill 
uses the descriptor the ``freely associated states'' while the 
Senate amendment does not.
      SR with an amendment:
      Outlying Area: The term outlying area means the Virgin 
Islands, Guam, American Samoa, and the Commonwealth of the 
Northern Mariana Islands, and for the purpose of section 
1121(b)(1) and any other discretionary grant program, includes 
the freely associated states of the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the Republic 
of Palau until agreed provisions for future United States 
education assistance under a separate agreement for the 
extension of United States assistance under the Compact of Free 
Association for each of the freely associated States enters 
into effect after the date of enactment of this Act.
      Report Language:
      The Conferees intend that the freely associated states of 
the Republic of the Marshall Islands, the Federated States of 
Micronesia and the Republic of Palau shall remain eligible for 
grants as provided for in section 1121(b)(1) and for any other 
discretionary grant program under the Elementary and Secondary 
Education Act to the extent such programs, grant assistance, 
and services are provided to the States and local governments 
of the United States and residents of such States for which a 
freely associated state or its citizens were eligible on 
October 1, 1999. This eligibility shall continue through the 
period of negotiations referred to in section 231 of the 
Compact of Free Association and shall end once agreements for 
the extension of United States education assistance under the 
Compact of Free Association enters into effect. The Conferees 
understand that the federal financial assistance under the 
Compact of Free Association for the Republic of the Marshall 
Islands and the Federated States of Micronesia expires on 
September 30, 2003 and urge that an agreement regarding future 
assistance is submitted to the Congress for approval at least 
one year before that date. The Conferees strongly urge that the 
agreement be ratified by the Congress prior to September 30, 
2003. The Conferees also recognize that the federal financial 
assistance under the Compact of Free Association for the 
Republic of Palau is set to expire in 2009 and strongly urge 
that an agreement regarding future assistance for Palau is 
submitted to the Congress for approval at least one year before 
that date. The Conferees strongly urge that the agreement be 
ratified by Congress prior to that date. The Conferees strongly 
recommend that any Compact enacted after the date of enactment 
of this Act provide sufficient funds for education to the 
Freely Associated States and the Republic of Palau so that 
funds under the Elementary and Secondary Education Act will no 
longer be needed for these purposes.
      30. The House bill and the Senate bill are substantially 
the same, with the exception that the House bill further sets 
forth examples of a person standing in loco parentis.
      SR
      31. The Senate amendment, but not the House bill, 
includes a definition of ``parental involvement.''
      HR with an amendment:
      ``(#) Parental Involvement.--The term `parental 
involvement' means the participation of parents in regular, 
two-way, and meaningful communication involving student 
academic learning and other school activities, including 
ensuring--
                    ``(A) that parents play an integral role in 
                assisting their child's learning;
                    ``(B) that parents are encouraged to be 
                actively involved in their child's education at 
                school;
                    ``(C) that parents are full partners in 
                their child's education included, as 
                appropriate, in decision-making and on advisory 
                committees to assist in the education of their 
                child;
                    ``(D) the carrying out of other activities, 
                such as those described in section 1118.
      Report Language:
      The conferees believe that parents must be integrally 
involved in their child's education in order for that child to 
increase their academic achievement. The conferees expect that 
principals, teachers, and school administrators involve parents 
in school activities, particularly those involving academic 
achievement and take advantage of their knowledge and 
expertise.''
      LC--insert in alphabetical order the following definition 
for Poverty Line:
      ``(#) Poverty Line.--The term `poverty line' means the 
poverty line (as defined by the Office of Management and Budget 
and revised annually in accordance with section 673(2) of the 
Community Services Block Grant Act) applicable to a family of 
the size involved.''
      LC--insert in alphabetical order the following definition 
for Professional Development:
            ``(#) Professional Development.--The term 
        `professional development' means activities that--
                    ``(A) improve and increase teachers' 
                knowledge of the subjects they teach and to 
                enable teachers to become highly qualified;
                    ``(B) are an integral part of broad 
                schoolwide and districtwide educational 
                improvement plans;
                    ``(C) give teachers, principals, and 
                administrators the knowledge and skills to 
                provide students with the opportunity to meet 
                challenging State academic content standards 
                and student achievement standards;
                    ``(D) improve classroom management skills;
                    ``(E) are high quality, sustained, 
                intensive, and classroom-focused in order to 
                have a positive and lasting impact on classroom 
                instruction and the teacher's performance in 
                the classroom, and are not one-day or short-
                term workshops or conferences;
                    ``(F) support the recruiting, hiring, and 
                training of highly qualified teachers, 
                including teachers highly qualified through 
                State and local alternative routes;
                    ``(G) advance teacher understanding of 
                effective instructional strategies based on 
                scientifically based research for improving 
                student academic achievement or substantially 
                increasing the knowledge and teaching skills of 
                teachers;
                    ``(H) are aligned with and directly related 
                to--
                            ``(i) State academic content 
                        standards, student academic achievement 
                        standards, and assessments; and
                            ``(ii) the curricula and programs 
                        tied to the standards described in 
                        clause (i) except when used for 
                        activities described in subparagraphs 
                        (f) [teaching in different learning 
                        styles] and (G) [student behavior] of 
                        section 2031(a)(3) [see pages 25-26 of 
                        Title II side-by-side];
                    ``(I) are developed with extensive 
                participation of teachers, principals, parents, 
                and administrators of schools to be served 
                under this Act;
                    ``(J) are designed to give teachers of 
                limited English proficient children, and other 
                teachers and instructional staff, the knowledge 
                and skills to provide instruction and 
                appropriate language and academic support 
                services to such children, including the 
                appropriate use of curriculum and assessments;
                    ``(K) to the extent appropriate, provide 
                training for teachers and principals in the use 
                of technology so that technology and its 
                applications are effectively used in the 
                classroom to improve teaching and learning in 
                the curriculum and core academic areas in which 
                the teachers provide instruction;
                    ``(L) as a whole, are regularly evaluated 
                for their impact on increased teacher 
                effectiveness and improved student achievement, 
                with the findings of such evaluations used to 
                improve the quality of professional 
                development;
                    ``(M) provide instruction in methods of 
                teaching children with special needs.
                    ``(N) include instruction in the use of 
                data and assessments to inform and instruct 
                classroom practice;
                    ``(O) include instruction in ways that 
                teachers, principals, pupil services personnel, 
                and school administrators may work more 
                effectively with parents;
                    ``(P) may include the forming of 
                partnerships with institutions of higher 
                education to establish school-based teacher 
                training programs that provide prospective 
                teachers and novice teachers with an 
                opportunity to work under the guidance of 
                experienced teachers and college faculty;
                    ``(Q) may include the creation of programs 
                for paraprofessionals (assisting teachers 
                employed by a local educational agency 
                receiving assistance under this part) to obtain 
                the education necessary for such 
                paraprofessionals to become licensed and 
                certified teachers; and
                    ``(R) may include activities that provide 
                follow-up training to teachers who have 
                participated in professional development 
                activities which are designed to ensure that 
                the knowledge and skills learned by the teacher 
                are implemented in the classroom.''
      Report Language for Professional Development definition:
      The Conferees note that classroom-focused activities are 
those activities which are directly tied to what teachers do in 
their classrooms and directly linked to the school's standards 
for student learning.
      32. The Senate amendment, but not the House bill, 
includes a definition of ``public telecommunications entity.
      HR with an amendment to add ``(12)'' after ``397''.
      33. The House bill and Senate amendment are identical 
with a minor technical difference in the cross reference to the 
Individuals With Disabilities Education Act.
      LC
      34. The House bill and the Senate amendment include an 
identical definition of ``pupil services.''
      LC
      35. The House bill, but not the Senate amendment includes 
a definition of ``reading.''
      SR with an amendment to move definition to note 121 Title 
I, Part B:
          ``(32) Reading.--The term `reading' means a complex 
        system of deriving meaning from print that requires all 
        of the following:
                    ``(A) The skills and knowledge to 
                understand how phonemes, or speech sounds, are 
                connected in print.
                    ``(B) The ability to decode unfamiliar 
                words.
                    ``(C) The ability to read fluently.
                    ``(D) Sufficient background information and 
                vocabulary to foster reading comprehensions.
                    ``(E) The development of appropriate active 
                strategies to construct meaning from print.
                    ``(F) The development and maintenance of a 
                motivation to read.''
      36. The House bill, but not the Senate amendment, 
includes a definition of ``rigorous diagnostic reading and 
screening assessment tools.''
      HR/SR with an amendment to move to note 122 of Title I, 
Part B:
            ``Screening assessment.--The term ``screening 
        reading assessment'' means assessments that are--
                    ``(A) valid, reliable, and based on 
                scientifically-based reading research; and
                    ``(B) a brief procedure designed as a first 
                step in identifying children who may be at high 
                risk for delayed development or academic 
                failure and in need of further diagnosis of 
                their need for special services or additional 
                reading instruction.
            ``Diagnostic reading assessment.--The term 
        `diagnostic reading assessment' means assessments that 
        are--
                    ``(A) valid, reliable, and based on 
                scientifically-based reading research;
                    ``(B) used for the purpose of
                            ``(i) identifying a child's 
                        specific areas of strengths and 
                        weaknesses so that they have learned to 
                        read by the end of the third grade;
                            ``(ii) determining any difficulties 
                        that a child may have in learning to 
                        read and the potential cause of such 
                        difficulties; and
                            ``(iii) helping to determine 
                        possible reading intervention 
                        strategies, and related special needs.
            ``Classroom-based instructional assessment.--The 
        term `classroom-based instructional assessment' means--
                    ``(A) evaluations of children's learning 
                based on systematic observations by teachers of 
                children performing academic tasks that are 
                part of their daily classroom experience; and
                    ``(B) are used to improve instruction in 
                reading, including classroom instruction.''
      37. The House bill includes a precise list of criteria of 
``scientifically based research'' while the Senate amendment 
includes a generalized definition.
      SR with an amendment:
      ``(34) Scientifically based research.--The term 
`scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures to obtain 
                reliable and valid knowledge relevant to 
                education activities and programs; and
                    ``(B) includes research that--
                            ``(i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                            ``(ii) involves rigorous data 
                        analyses that are adequate to test the 
                        stated hypotheses and justify the 
                        general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide 
                        reliable and valid data across 
                        evaluators and observers and across 
                        multiple measurements and observations 
                        and across studies by the same or 
                        different investigators;
                            ``(iv) is evaluated using 
                        experimental or quasi-experimental 
                        designs in which individuals, entities, 
                        programs, or activities are assigned to 
                        different conditions and with 
                        appropriate controls to evaluate the 
                        effects of the condition of interest, 
                        with a preference for random assignment 
                        experiments, or other designs to the 
                        extent such designs contain within-
                        condition or across condition controls;
                            ``(v) ensure experimental studies 
                        are presented in sufficient detail and 
                        clarity to allow for replication, or at 
                        a minimum offer the opportunity to 
                        build systematically on its findings; 
                        and
                            ``(vi) has been accepted by a peer 
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, 
                        scientific review.''
      38. The House bill and Senate amendment are identical.
      LC
      39. The House bill and Senate amendment are identical.
      LC
      40. The House bill and the Senate amendment are 
identical.
      LC
      41. The House bill and Senate amendment are identical.
      LC
      42. The Senate amendment, but not the House bill, 
includes a definition of ``teacher mentoring.'' See note 26 
above on mentoring
      HR with an amendment in (31)(A) to strike ``beginning'' 
and insert ``especially beginning teachers'' after ``teachers'' 
and in (31)(A)(ii)(I), to strike ``mentor'' and insert 
``exemplary''.
      Report Language:
      The Conferees intend that a teacher mentoring program 
should be available to all teachers who need it, and have 
emphasized the needs of beginning teachers. This added emphasis 
should not be read to exclude veteran teachers from mentoring 
programs, but rather to acknowledge the significant needs of 
beginning teachers. Data show that half of all beginning 
teachers in high-poverty schools drop out of teaching within 
five years, and 20 percent of all new teachers leave teaching 
within three years. Furthermore, less than half of teachers in 
low-performing schools, which are also likely to be high-
poverty schools, are likely to receive any additional 
professional development. While beginning teachers need the 
help and support that a high quality mentoring program can 
provide, the Conferees believe federal support for mentoring 
programs should not be limited to beginning teachers only. 
Veteran teachers can also benefit from sustained high quality 
mentoring and coaching efforts.
      A number of recent surveys of teachers demonstrate that 
veteran teachers want the type of sustained professional 
development that they get by working with successful teachers. 
Furthermore, there are a variety of existing professional 
development models that have demonstrated the benefits of 
providing mentoring and coaching to experienced teachers, among 
them the El Paso Collective for Education Excellence, which 
pairs veteran math and science teachers with experienced 
teaching coaches.
      Rather than single out any one group of teachers for 
additional support and assistance, the Conferees believe that 
any teacher, be it a beginning teacher who is struggling to 
handle a class alone for the first time and is at risk of 
dropping out of teaching, or one who has taught for multiple 
years, who has shown difficulty in advancing the knowledge and 
abilities of his or her students, should receive high quality 
professional development, which may include being paired with a 
mentor or coach. Therefore, the Conferees note that mentoring 
services be provided to, but not be limited to beginning 
teachers (teachers who have been in the classroom less than 3 
years).
      The Conferees also note that teacher mentoring programs 
should be part of an ongoing developmental induction process. 
Effective induction processes should be a continuous process 
throughout a teacher's time as a beginning teacher. This is to 
provide the teacher with the most support possible to enable 
the teacher to fully adapt to the teaching profession and 
increase the likelihood the teacher will continue in the 
teaching profession.
      43. The House bill and the Senate amendment are similar. 
Both describe technology as meaning state-of-the-art technology 
products and services, but the Senate amendment lists many 
examples of state-of-the-art technology products and services.
      SR with an amendment to strike ``latest''.
      Report Language:
      The Conferees intend the definition of technology to 
include computer hardware, software and other electronically 
delivered learning materials, web-based and other digital 
learning resources, including on-line classes, interactive 
tutorials, and interactive tools and virtual learning 
environments, hand-held devices, wireless technology, voice 
recognition systems and high quality digital video, distance 
learning networks, visualization, modeling and simulation 
software and learning focused digital libraries and information 
retrieval systems, closed circuit television systems, 
educational television, and radio programs and services, cable 
television, satellite, copper and fiber optic transmission, 
video, audio, and CD-ROM discs, and video and audio tapes. The 
Secretary may incorporate additional specific emerging 
technologies into the definition of technology.
      44. The House bill, but not the Senate amendment, notes 
that Parts B, C, D, and E of Title VIII do not apply to Title 
VI (Impact Aid).
      SR/LC
      45. The House bill, but not the Senate amendment, 
includes a provision regarding the application of the 
provisions to Bureau of Indian Affairs schools.
      SR
      46. The House bill and Senate amendment are identical 
with the exception that there are different provisions of 
applicability in paragraph (2).
      SR
      47. The House bill and the Senate amendment's uses of 
funds are substantially the same, with the exception that the 
House bill has a longer list of additional uses of funds.
      SR
      48. The House bill and the Senate amendment are 
identical.
      LC
      49. The House bill and the Senate amendment are 
identical.
      LC
      50. The House bill and the Senate amendment are 
identical.
      LC
      51. The Senate amendment, but not the House bill, 
authorizes the consolidation of funds made available under 
Title I to develop standards and assessments.
      HR with an amendment to strike ``amounts made available'' 
and insert ``funds described in subsection (a)''.
      52. The House bill and Senate amendment are identical.
      LC
      53. The House bill and the Senate amendment are 
substantially identical with the exception that the Senate 
amendment limits this authority to ``covered programs'' while 
the House bill applies to programs under the Act. The House 
bill refers to ``any fiscal year'' and the Senate amendment 
does not.
      SR
      54. The House bill and the Senate amendment are identical 
with technical differences in the cross reference to the Act.
      LC
      55. The House bill and the Senate amendment are 
identical.
      LC
      56. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment refers to ``covered programs'' and the House bill 
refers to the administration of the programs at the school 
district and school levels. There are other technical 
differences.
      SR
      57. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment refers to ``covered programs.''
      SR
      58. The Senate amendment, but not the House bill, 
provides for an administrative funds study.
      SR
      59. The House bill and Senate amendment are substantially 
the same with the exception of technical differences in 
citation.
      LC (Need to say McKinney-Vento)
      60. The House bill and Senate amendment are identical.
      LC
      61. The House bill and Senate amendment are identical.
      LC
      62. The House bill and the Senate amendment are 
identical.
      LC
      63. The Senate amendment, but not the House bill, 
includes a provision on unneeded program funds. See note    of 
Title VII, Part B of the House bill for comprehensive 
transferability authority.
      SR
      64. The House bill and the Senate amendment are similar 
with the exception that the Senate bill refers to encouraging 
greater cross-program coordination, planning, and service 
delivery while the House bill refers to greater coordination 
between programs and greater flexibility to State and local 
authorities through the consolidation of State and local plans, 
applications, and reporting. The Senate amendment refers to 
integrating Federal programs with programs carried out with 
State and local funds.
      HR with an amendment to strike Senate's section 5501 and 
replace with the following:

SEC. 8301. PURPOSE.

      It is the purpose of this part to improve teaching and 
learning by encouraging greater cross-program coordination, 
planning, and service delivery, to provide greater flexibility 
to State and local authorities through consolidated plans, 
applications, and reporting, and to enhance the integration of 
programs under this Act with State and local programs.
      65. The House bill and the Senate amendment are 
substantially the same with technical differences and the 
Senate amendment referring to ``covered programs'' while the 
House bill does not. The House bill allows a consolidated State 
plan for any program under the Act.
      HR
      66. The Senate amendment, but not the House bill, 
specifically names Even Start and the Neglected and Delinquent 
Youth program as additional programs. Both the House bill and 
Senate amendment allow the Secretary to designate other 
programs.
      HR with an amendment to strike ``of Dropping Out''.
      67. The House bill and Senate amendment are substantially 
the same with technical differences in wording.
      HR
      68. The House bill and the Senate amendment are 
identical.
      LC
      69. The House bill and the Senate amendment are identical 
with a technical difference in the cross reference to the 
preceding paragraph.
      LC
      70. The House bill and the Senate amendment are 
substantially the same with the exception that the Senate 
amendment includes the parenthetical ``(including assurances of 
compliance with applicable provisions regarding participation 
by private school children and teachers).''
      HR
      71. The House bill, but not the Senate amendment, 
includes a provision on consolidated reporting to the 
Secretary.
      SR
      72. The House bill and the Senate amendment are identical 
with the exception that the House bill makes reference to the 
State educational agency consulting with the Governor. There 
are technical differences in the cross-references.
      SR
      73. The Senate amendment, but not the House bill, 
includes additional coordination requirements relative to 
health and social service programs and reporting thereon.
      SR
      74. The House bill and the Senate bill are substantially 
the same with the exception that the Senate bill refers to 
``covered'' programs. The House bill makes the consolidated 
plans and applications available to the Governor, but the 
Senate amendment has no such provision.
      HR with an amendment to insert the following sentence at 
the end of section 5505 (a): ``The State educational agency 
shall make any consolidated local plans and applications 
available to the Governor.''
      75. The House bill and the Senate amendment are 
substantially the same with the exception of technical 
differences in cross-references. The House bill, but not the 
Senate amendment, makes clear that a State may not require 
separate plans to be submitted.
      SR
      76. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill 
references consultation with the Governor.
      SR
      77. The House bill refers to ``State'' while the Senate 
amendment refers to ``State educational Agency.''
      HR
      78. The House bill and the Senate amendment are 
substantially the same but with the following exceptions: (1) 
the House bill refers to applicants other than a State while 
the Senate amendment refers to applicants other than a State 
educational agency; (2) in paragraphs (6)(A) and (B), the House 
bill refers to reports to the Governor and the State 
educational agency while the Senate amendment refers only to 
the State educational agency.
      Note 78--HR on 5506(a)(1)-(5) and SR with an amendment on 
5506 (a)(6)(A) and (B) to read as follows regarding Governors:
            (6) the applicant will--
                    (A) make reports to the State educational 
                agency (which agency shall make such report 
                available to the Governor) and the Secretary as 
                may be necessary to enable such agency and the 
                Secretary to perform their duties under each 
                such program; and
                    (B) maintain such records, provide such 
                information, and afford access to the records 
                as the State educational agency (after 
                consultation with the Governor) or the 
                Secretary may find necessary to carry out the 
                State educational agency's or the Secretary's 
                duties; and
      LC on 5506(a)(7) and 5506(b).
      79. The House bill and the Senate amendment are 
substantially the same except that the House bill refers also 
to the Carl D. Perkins Vocational and Technical Education Act 
of 1998.
      HR
      80. The House bill and the Senate amendment: (1) have 
similar provisions in subparagraph (A) but with technical 
differences; (2) have differences in subparagraphs (B) and (C), 
except that subparagraph (C) of the House bill is similar to 
subparagraph (D) of the Senate amendment; (3) are different in 
that subparagraph (D) of the House bill has no comparable 
provision in the Senate amendment; and (4) are different in 
that the House has no subparagraphs (E) and (F) while the 
Senate amendment does.
      HR with an amendment as follows:
      1. (B)(i)(ii) with the following changes: insert 
``statutory or regulatory'' after ``Federal'' in (B) and strike 
the ``or'' and insert ``and'' in (B)(i).
      2. Insert following combination of House (C) and Senate 
(E):
                    ``(# LC) describes, for each school year, 
                specific, measurable educational goals for the 
                State educational agency and for each local 
                educational agency, Indian tribe, or school 
                that would be affected by the waiver and the 
                methods to be used to annually measure such 
                progress for meeting such goals and outcomes;''
      13. Insert House provision (D):
                    ``Explains why the waiver will assist the 
                State educational agency and each affected 
                local educational agency, Indian tribe, or 
                school in reaching such goals.''
      LC--(Senate F becomes E).
      81. The House bill and Senate amendment have identical 
requirements for additional information to be submitted with a 
waiver request.
      LC
      82. The House bill and Senate amendment are substantially 
the same with minor technical differences.
      LC
      83. The House bill and the Senate amendment are identical 
with the exception of technical differences in cross-
references. The House bill, but not the Senate amendment, 
prohibits a waiver of the activities under section 8513. The 
Senate amendment, but not the House bill, includes a 
prohibition on the waiver of the selection of school attendance 
areas in paragraph (10).
      SR with an amendment to insert Senate paragraph (10)
      84. The House bill provides for a waiver period of 5 
years. The Senate amendment provides for a waiver period of 3 
years.
      SR with an amendment to go to 4 years
      85. The authority to extend a waiver for a longer period 
is identical in the House bill and Senate amendment.
      LC
      86. The House bill and the Senate amendment have 
identical provisions on reports submitted by a local 
educational agency to a State educational agency.
      LC
      87. The House bill and the Senate amendment have 
identical provisions on the submission of State educational 
agency reports to the Secretary.
      LC
      88. The House bill and the Senate amendment have 
identical provisions on the submission of reports by Indian 
tribes to the Secretary.
      LC
      89. The House bill and the Senate amendment have 
identical provisions on reports the Secretary submits to 
Congress.
      LC
      90. The House bill and the Senate amendment on 
termination of waivers are substantially the same with the 
exception that the House bill includes a notice and opportunity 
for a hearing.
      SR
      91. The House bill and the Senate amendment have 
identical provisions for the publication of waivers that have 
been granted in the Federal Register.
      LC
      92. The Senate amendment, but not the House bill, moves 
the authorization of the Education Flexibility (Ed Flex) 
Partnership Act of 1999 (P.L. 106-25) into the Elementary and 
Secondary Education Act and makes changes to the law. The House 
bill makes no changes to the Education Flexibility Partnership 
Act of 1999 and keeps it as a freestanding authorization.
      SR
      93. The Senate amendment specifies the requirements to be 
met to become an ``eligible state.'' See also section 
1111(b)(7) of Title I, Part A of the Senate amendment which 
stipulates that a state shall not be eligible for designation 
as an Ed Flex state until the state develops assessments 
aligned with the state's content standards in at least 
mathematics and reading or language arts.
      SR
      94. The Senate amendment extends the authorization period 
for Ed Flex through FY2008. Current law authorization is 
through FY2004.
      HR/SR with an amendment to be placed in Amendments to 
Other Statutes:

``SEC   . AMENDMENT TO EDUCATION FLEXIBILITY ACT OF 1999.

      Section 4 of the Education Flexibility Act of 1999 is 
amended by replacing section (b) with the following provision 
(b):
      ``(b) Included Programs.--The statutory or regulatory 
requirements referred to in subsection (a)(1)(A) are any such 
requirements for programs that are authorized under the 
following provisions and under which the Secretary provides 
funds to State educational agencies on the basis of a formula:
            ``(1) Part A (other than sections 1111 and 1116), 
        subpart 3 of part B, and parts C, D, and F of title I 
        of the No Child Left Behind Act of 2001;
            ``(2) Subpart 2 of part A of title II of the No 
        Child Left Behind Act of 2001;
            ``(3) Subpart 1 of part D of title II of the No 
        Child Left Behind Act of 2001;
            ``(4) Subpart 4 of part B of title III of the No 
        Child Left Behind Act of 2001 if the funding trigger in 
        section 3001 of the No Child Left Behind Act of 2001 is 
        not reached;
            ``(5) Subpart 1 of part A of title IV of the No 
        Child Left Behind Act of 2001;
            ``(6) Part A of title V of the No Child Left Behind 
        Act of 2001; and
            ``(7) The Carl D. Perkins Vocational and Technical 
        Education Act of 1998.''
      95. The House bill and the Senate amendment include 
identical provisions on maintenance-of-effort.
      LC; HR
      96. The House bill and the Senate amendment include 
identical provisions on reductions in funds in the case of a 
local educational agency's failure to meet maintenance-of-
effort requirements.
      LC; HR
      97. The House bill and the Senate amendment have 
identical waiver provisions.
      LC; HR
      98. The House bill and the Senate amendment are identical 
with the exception of technical differences in cross-
references.
      LC
      99. The House bill and the Senate amendment are 
substantially the same with the exception that the House bill 
refers to ``another entity'' while the Senate amendment does 
not have such terms. In addition, the Senate Amendment limits 
equitable participation of teachers and other educational 
personnel to training and professional development services.
      SR with an amendment to strike ``.'' at end of provision 
and insert: ``, and provide their teachers and other education 
personnel serving such children training and professional 
development services under such program.''
      100. The House bill and the Senate amendment are 
identical.
      LC
      101. The House bill and the Senate amendment are 
identical with the exception that the House bill requires 
services and benefits to be provided in a timely manner.
      SR
      102. The House bill and the Senate amendment on 
expenditures are identical.
      LC
      103. The House bill and the Senate amendment are 
identical with the exception that the House bill refers to an 
entity.
      SR
      104. The House bill and the Senate amendment have the 
equitable participation requirements applicable to the same as 
well as different programs. The House bill, but not the Senate 
amendment, includes the 21st Century Community Learning Centers 
and technology programs.
      HR/SR with an amendment as follows:
      (b) Applicability.--
            (1) In general.--This section applies to programs 
        under--
                    (A) part B, subparts 1 and 3 of title I; 
                [Reading First and Even Start]
                    (B) part C of title I; [Migrants]
                    (C) part A of title II; [Teachers]
                    (D) part B of title II; [Math/Science]
                    (E) part D of title II; [Technology]
                    (F) part A of title III; [Bilingual]
                    (G) part A of title IV; and [Safe & Drug 
                Free]
                    (H) part B of title IV. [21st Century 
                Schools]
      105. The House bill and Senate amendment have an 
identical definition of ``eligible children.''
      LC
      106. The House bill and the Senate amendment have 
substantially the same consultation provisions with the 
exception that the House bill includes consultation 
requirements for who will provide services in subparagraph (C), 
how results of assessments will be used to improve services in 
subparagraph (D), the size and scope of equitable services in 
subparagraph (E) and how and when decisions will be made in 
subparagraph (F).
      SR
      107. The House bill, but not the Senate amendment, 
includes a provision governing disagreements between private 
school officials and agencies, consortia and entities with 
respect to the provision of services through a contract.
      SR
      108. The House bill and the Senate amendment are 
identical with the exception that the House bill ensures that 
consultation continues throughout the implementation and 
assessment of activities and refers to an entity.
      SR
      109. The House bill and the Senate amendment have 
identical provisions on the content of discussions during the 
consultations.
      SR/LC
      110. The House bill and Senate amendment have identical 
provisions on the public control of funds.
      LC
      111. The House bill and the Senate amendment have 
identical provisions on the public control of funds.
      SR/LC
      112. The House bill and the Senate amendment have 
identical language on the provision of services with the 
exception that the House bill refers to an ``other entity'' in 
clause (ii).
      SR/LC
      113. The House bill and the Senate amendment have 
identical provisions on standards for bypass with the exception 
that the House bill also refers to ``other entity.'' There are 
technical differences in the two versions in cross-references. 
The House bill includes factors the Secretary shall consider in 
making his determination in paragraph (3) while the Senate does 
not.
      SR
      114. The House bill and the Senate amendment are 
identical with technical differences in cross-references and 
the House bill refers to an ``entity'' while the Senate 
amendment does not.
      SR/LC
      115. The House bill and the Senate amendment have 
identical provisions on appeals to the Secretary.
      LC
      116. The House bill and the Senate amendment are 
identical with the exception of technical differences in cross-
references and the House bill refers to ``entity'' while the 
Senate bill does not.
      SR/LC
      117. The House bill and Senate amendment are identical.
      LC
      118. The House bill and the Senate amendment have 
identical provisions on petitioning for review of decisions 
with the exception that the House bill also refers to an 
entity.
      SR/LC
      119. The House bill and the Senate amendment have 
identical provisions on findings of fact.
      LC
      120. The House bill and the Senate amendment have 
identical provisions on jurisdiction.
      LC
      121. The House bill and the Senate amendment have 
identical provisions on determinations by the Secretary with 
the exception that the House bill also refers to an ``entity.'' 
There are technical differences in the cross-references.
      SR/LC
      122. The House bill and the Senate amendment have 
identical provisions on payments from State allotments.
      LC
      123. The House bill and the Senate amendment have 
identical provisions on prior determinations with the exception 
of technical differences in cross-references to the Act.
      LC
      124. The House bill and the Senate amendment are 
identical.
      LC
      125. The House bill and the Senate amendment are similar. 
The House bill has a similar provision in Title I, Part H in 
section 1805. Both the House bill and the Senate amendment 
reference how home schools are treated under state law.
      SR with an amendment:

SEC.  . PRIVATE, RELIGIOUS, AND HOME SCHOOLS.

      (a) Applicability to Non-Recipient Private Schools.--
Nothing in this Act shall be construed to affect any private 
school that does not receive funds or services under this Act, 
nor shall any student who attends a private school that does 
not receive funds or services under this Act be required to 
participate in any assessment referenced in this Act.
      (b) Applicability to Home Schools.--Nothing in this Act 
shall be construed to affect home schools, whether or not a 
home school is treated as a home school or a private school 
under State law, nor shall any home schooled student be 
required to participate in any assessment referenced in this 
Act.
      (c) Rule of Construction on Prohibition of Federal 
Control Over Nonpublic Schools.--Nothing in this Act shall be 
construed to permit, allow, encourage, or authorize any Federal 
control over any aspect of any private, religious, or home 
school, whether or not a home school is treated as a private 
school or home school under State law. This section shall not 
be construed to bar private, religious, or home schools from 
participation in programs or services under this Act.
      (d) Rule of Construction on State and Local Educational 
Agency Mandates.--Nothing in this Act shall be construed to 
require any State or local educational agency that receives 
funds under this Act to mandate, direct, or control the 
curriculum of a private or home school, regardless or whether 
or not a home school is treated as a private school under state 
law, nor shall any funds under this Act be used for this 
purpose.
      126. The House bill and the Senate amendment are 
identical with the exception of technical differences.
      SR with an amendment (included in new language at note 
125)
      127. The House bill, but not the Senate amendment, 
includes a provision on the privacy of assessment results. The 
House bill has an identical provision in section 1807 of Title 
I, Part H. The Senate amendment includes a similar provision in 
section 1111(j)(1)(F) but with reference to section 445 instead 
of section 444.
      HR with an amendment to insert:

``SEC.   . PRIVACY OF ASSESSMENT RESULTS.

      ``Any results from individual assessments referenced in 
this title which become part of the education records of the 
student shall have the protections as provided in section 444 
of the General Education Provisions Act.''
      128. The House bill and the Senate amendment are 
identical with the exception that the House bill includes other 
Acts in addition to the No Child Left Behind Act.
      SR with an amendment (included in new language at note 
125)
      129. The Senate amendment, but not the House bill, 
includes a second provision relating to recipient nonpublic 
schools that is identical to the House bill. The Senate 
amendment, but not the House bill, includes rule of 
construction regarding a superseded provision.
      SR (included in new language at note 125)
      130. The House bill makes funds under the Act conditional 
upon a local educational agency submitting to the Secretary a 
certification that no policy of the agency prevents or 
otherwise denies participation in constitutionally protected 
prayer in public schools. Under the Senate amendment a state or 
local educational agency is ineligible for ESEA funds if a 
Federal court adjudges the agency to have willfully violated a 
Federal court order with respect to school prayer.
      HR/SR with an amendment:
      (Ratified October 30, 2001)
      ``Sec.   . (a) Guidance.--The Secretary shall provide and 
revise guidance, every two years by September 1, to State 
educational agencies, local educational agencies and the public 
on constitutionally protected prayer in public schools, 
including making such guidance available on the Internet. Such 
guidance shall be reviewed, prior to distribution, by the 
Office of Legal Counsel of the U.S. Department of Justice prior 
to distribution for verification that the guidance represents 
the current state of the law concerning constitutionally 
protected prayer in public schools.
      (b) Certification.--As a condition of receiving funds 
under this Act, a local educational agency shall certify in 
writing to the State educational agency that no policy of the 
local educational agency prevents, or otherwise denies 
participation in, constitutionally protected prayer in public 
schools, as detailed in the guidance required under subsection 
(a). Such certification shall be provided annually by October 
1. The State educational agency shall report to the Secretary 
by November 1 of each year a list of those local educational 
agencies that have not filed the certification or against which 
complaints have been made to the State educational agency that 
certain local educational agencies are not in compliance with 
this section.
      (c) Enforcement.--The Secretary is authorized and 
directed to effectuate subsection (b) by issuing, and securing 
compliance with, rules or orders with respect to a local 
educational agency that fails to certify, or is found to have 
improperly certified, that no policy of the local educational 
agency prevents, or otherwise denies participation in, 
constitutionally protected prayer in public schools.''
      131. The House bill and the Senate amendment are 
identical with technical differences.
      SR with an amendment to strike ``emphasizes'' and insert 
``includes'' in paragraph (3).
      132. The House bill and the Senate amendment are 
identical.
      LC
      133. The Senate amendment, but not the House bill, 
includes a provision regarding state and local educational 
agency mandates with respect to home school or private school 
curricula.
      HR with an amendment (included in new language at note 
125)
      134. The House bill includes a prohibition with respect 
to Federal mandates, direction, and control while the Senate 
amendment includes a rule of construction.
      SR/HR with an amendment (new statutory and report 
language below covers notes 134, 135, 140, 141)
      Include in Title VIII:

SEC.   . PROHIBITIONS ON FEDERAL GOVERNMENT AND USE OF FEDERAL FUNDS.

      (a) General Prohibition.--Nothing in this Act shall be 
construed to authorize an officer or employee of the Federal 
Government to mandate, direct, or control a State, local 
educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or 
mandate a State or any subdivision thereof to spend any funds 
or incur any costs not paid for under the Act.
      (b) Prohibition on Endorsement of Curriculum.--
Notwithstanding any other prohibition of law, no funds provided 
to the Department of Education under this Act may be used by 
the Department to endorse, approve, or sanction any curriculum 
designed to be used in an elementary or secondary school.
      (c) Prohibition on Requiring Federal Approval or 
Certification of Standards.--
            (1) In general.--Notwithstanding any other 
        provision of Federal law, no State shall be required to 
        have academic content or student academic achievement 
        standards approved or certified by the Federal 
        Government, in order to receive assistance under this 
        Act.
            (2) Rule of construction.--Nothing in this 
        subsection shall be construed to affect requirements 
        under title I or title VII of this Act.
      (d) Rule of Construction on Building Standards.--Nothing 
in this Act shall be construed to mandate national school 
building standards for a State, local educational agency, or 
school.
      Report Language:
      The Conferees intend that subsection (b) does not 
prohibit the Department from identifying and disseminating 
information about successful or promising instructional 
educational practices, to the extent practicable, based on 
scientifically based research.
      Include in Title I, Part H:

SEC.   . PROHIBITION OF FEDERAL MANDATES, DIRECTION, OR CONTROL.

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

SEC.   . RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

      Nothing in this title shall be construed to mandate 
equalized spending per pupil for a State, local educational 
agency, or school.
      135. The House bill, but not the Senate amendment, 
includes rules of construction on federal mandates and control, 
equalized spending, and building standards.
      SR/HR with an amendment (See new language in note 134)
      136. The House bill, but not the Senate amendment, 
includes a provision on rulemaking.
      SR
      Report Language:
      This section directs the Secretary to issue regulations 
under this Act only to the extent that they are necessary to 
ensure that there is compliance with the specific requirements 
and assurances of the Act. The conferees do not intend this 
language to prohibit the Secretary from issuing regulations 
that are reasonably necessary to ensure timely and orderly 
grant-making, high-quality applications that respond to 
priority needs, or grantee accountability. Rather, the 
conferees intend this section to constrain the Secretary's 
ability to issue regulations that would impose upon grantees 
additional substantive programmatic requirements or limitations 
that are not necessary to ensure compliance with the specific 
requirements and assurances imposed by the statute.
      137. The House bill, but not the Senate amendment, 
includes a report on audits.
      HR
      138. The House bill authorizes a study of testing by the 
Secretary and the Senate amendment authorizes the Secretary to 
give a grant to the National Research Council of the National 
Academy of Sciences to conduct an ongoing evaluation of high-
stakes assessments. There are substantial differences in the 
House bill and Senate amendment.
      HR/SR with an amendment to strike all language and insert 
the following and to move to Title I, Part E:

``SEC.   . ASSESSMENT EVALUATION.

      ``(a) In General.--The Secretary shall conduct an 
independent study of assessments used for State accountability 
purposes and for making decisions about the promotion and 
graduation of students. Such research shall be conducted over a 
period not to exceed 5 years and shall address the components 
described in subsection (c).
      ``(b) Contract Authorized.--The Secretary is authorized 
to award a contract, through a peer review process, to an 
organization or entity capable of conducting rigorous, 
independent research. The Assistant Secretary of Educational 
Research and Improvement shall appoint peer reviewers to 
evaluate the applications for this contract. The study shall--
            ``(1) synthesize and analyze existing research that 
        meets standards of quality and scientific rigor; and
            ``(2) evaluate assessment and accountability 
        systems in state educational agencies, local 
        educational agencies, and schools; and
            ``(3) make recommendations to the Department and to 
        the Committee on Education and the Workforce of the 
        United States House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of 
        the United States Senate, based on the findings of the 
        study.
      ``(c) Components of the Research Program.--The study 
described in subsection (a) shall examine--
            ``(1) the effect of the assessment and 
        accountability systems described in section (b) on 
        students, teachers, parents, families, schools, school 
        districts, and States, including correlations between 
        such systems and
                    ``(A) student academic achievement, 
                progress to the State-defined level of 
                proficiency, and progress toward closing 
                achievement gaps, based on independent 
                measures;
                    ``(B) changes in course offerings, teaching 
                practices, course content, and instructional 
                material;
                    ``(C) changes in turnover rates among 
                teachers, principals, and pupil-services 
                personnel;
                    ``(D) changes in dropout, grade-retention, 
                and graduation rates for students; and
                    ``(E) such other effects as may be 
                appropriate;
            ``(2) the effect of the assessments on students 
        with disabilities;
            ``(3) the effect of the assessments on low, middle, 
        and high socioeconomic status students, limited and 
        nonlimited English proficient students, racial and 
        ethnic minority students, and nonracial or nonethnic 
        minority students;
            ``(4) guidelines for assessing the validity, 
        reliability, and consistency of those systems using 
        nationally recognized professional and technical 
        standards; and
            ``(5) the relationship between accountability 
        systems and the inclusion or exclusion of students from 
        the assessment system; and
            ``(6) such other factors as the Secretary finds 
        appropriate.
      ``(d) Reporting.--Not later than 3 years after the 
contract described in section (b) is awarded, the organization 
or entity conducting the study will submit an interim report to 
the Committee on Education and the Workforce of the United 
States House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the United States Senate, and 
to the President and the States, and shall make the report 
widely available to the public. The organization or entity 
shall submit a final report to the same recipients as soon as 
possible after the completion of the study. Additional reports 
may be periodically released as necessary.
      ``(e) Reservation of Funds.--The Secretary may reserve up 
to 15 percent of the funds authorized to be appropriated for 
part E of title I to carry out the study, except such 
reservation of funds shall not exceed $1,500,000.''
      139. The Senate amendment, but not the House bill, 
includes an authorization for a study of the costs of 
conducting student assessments under section 1111. See note 137 
above which includes cost elements as a component part of 
another study.
      SR
      Report Language:
      The Conferees intend the General Accounting Office (GAO) 
to conduct a study of the costs to States of developing and 
administering the academic assessments required under section 
1111(b) of Title I of this Act. The GAO should determine the 
anticipated aggregate cost for all States to develop and 
administer such assessments, as well as the portion of the cost 
that is expected to be incurred in each of the fiscal years 
2002 through 2008. The GAO should determine such costs for each 
State and the factors that may explain cost variations States. 
The Conferees expect the GAO to report the results of such 
study to the House Education and the Workforce Committee and 
the Senate Health, Education, Labor, and Pensions Committee no 
later than one year after the date of enactment of this Act.
      140. The House bill, but not the Senate amendment, 
includes a prohibition on Federal government approval of 
standards. The House bill, but not the Senate amendment, 
includes a rule of construction relative to Title I. The Senate 
amendment contains a limitation on conditions which is similar 
in section 1111(h).
      SR/HR with an amendment (See new language at note 134)
      141. The House bill, but not the Senate amendment, 
includes a prohibition on the endorsement by the Federal 
government of curriculum. A related provision is included in 
the Senate amendment in section 15.
      SR/HR with an amendment (See new language at note 134)
      142. The House bill and Senate amendment have similar 
rules of construction regarding databases of personally 
identifiable information, but with technical differences.
      HR
      143. The House bill includes a provision which requires 
secondary schools that receive funds under the Elementary and 
Secondary Education Act to permit armed services recruitment 
activities on school grounds in a manner reasonably accessible 
to all students at the school. The Senate amendment prohibits 
Department of Defense funds from being provided to higher 
education institutions that deny or that effectively prevent 
the Secretary of Defense from obtaining for military recruiting 
purposes, entry to campuses or access to students or access to 
directory information pertaining to students. The Senate 
amendment includes an exemption provision, a provision 
regarding covered students, procedures to making 
determinations, and a definition of ``directory information.''
      HR/SR with an amendment to read as follows:
      (Ratified on October 30, 2001).

SEC.   . ARMED FORCES RECRUITERS ACCESS TO STUDENTS AND STUDENT 
                    RECRUITING INFORMATION.

      ``(a) Policy.--
            ``(1) Notwithstanding section 444(a)(5)(B) of the 
        General Education Provisions Act, each local 
        educational agency receiving assistance under this Act 
        shall provide, upon a request made by military 
        recruiters or institutions of higher education as 
        defined by section 101(a) of the Higher Education Act, 
        access to secondary school student names, addresses, 
        and telephone listings.
            ``(2) A parent or student may request that the 
        student's name, address, and telephone listing under 
        subparagraph (1) not be released without prior written 
        parental consent, and the local education agency shall 
        notify parents of such option.
            ``(3) Each local educational agency receiving 
        assistance under this Act shall provide military 
        recruiters the same access to secondary school students 
        as is provided generally to postsecondary educational 
        institutions or to prospective employers of those 
        students.
      ``(b) Notification.--The Secretary of Education, in 
consultation with the Secretary of Defense, shall, not later 
than 120 days after the enactment of this Act, notify 
principals, school administrators, and other educators about 
the requirements of this section.
      ``(c) Exception.--The requirements of this section do not 
apply to a private secondary school that maintains a religious 
objection to service in the Armed Forces and which objection is 
verifiable through the corporate or other organizational 
documents or materials of that school.
      ``(d) Special Rule.--A local educational agency 
prohibited by Connecticut state law (either explicitly by 
statute or through statutory interpretation of the State 
Supreme Court or State Attorney General) from providing 
military recruiters with information or access as required by 
this section shall have until May 31, 2002 to comply with such 
requirements.
      144. The Senate amendment, but not the House bill, 
includes: (1) findings relative to Armed Forces and 
recruitment; (2) a requirement for states to report to the 
Secretary a list of schools that do not allow access to 
military recruiters; and (3) a program for making awards to 
states and schools for the purpose of educating principals, 
administrators and others about career opportunities in the 
Armed Forces.
      SR
      (Ratified on October 30, 2001).
      145. The House bill, but not the Senate amendment, 
includes a severability clause.
      SR
      146. The House bill, but not the Senate amendment, 
encourages the Secretary to promote education savings accounts.
      HR
      147. The House bill, but not the Senate amendment, 
includes a Sense of the Congress provision on American made 
steel. Subsections (a) and (b) relate to the Sense of Congress.
      HR
      148. The House bill, but not the Senate amendment, 
requires school systems that receive funding under the Act to 
use American made steel and to comply with the Buy America Act.
      HR
      149. The House bill, but not the Senate amendment, 
includes a Sense of the Congress provision on paperwork 
reduction.
      HR
      150. The Senate amendment, but not the House bill, 
includes findings and a Sense of the Senate provision regarding 
tax relief for K-12 education expenses.
      SR
      151. The Senate amendment, but not the House bill, 
includes findings and a Sense of the Senate provision relating 
to tax relief for non-reimbursed education expenses of 
educators.
      SR
      152. The Senate amendment, but not the House bill, 
includes findings and a Sense of the Senate provision regarding 
postal rates for educational materials.
      SR with report language to be added under Reading (Title 
I, Part B, note 164)
      Report Language:
      In the 2000 rate case, the U.S. Postal Service levied an 
18% increase on mail sent under Bound Printed Matter (BPM), the 
class of mail under which books are sent to our nation's 
schools, libraries, literacy, and early childhood programs. 
This increase, the highest of any category, has had a direct 
impact on the ability of several literacy and free book 
programs to deliver their services. It has come to the 
attention of the Conferees that the US Postal Service intends 
to again increase the rates charged for bound printed matter, 
including books. Given the educational importance of the 100 
million books shipped to children annually under this rate, the 
Conferees urge the U.S. Postal Service and Congress to take 
action to ensure the continued affordability of books for all 
of America's children.
      153. The Senate amendment, but not the House bill, 
includes findings and a Sense of the Senate provision relating 
to campaign finance reform legislation.
      SR
      154. The Senate amendment, but not the House bill, 
includes a Sense of the Senate provision that nothing in the 
Act or any provision of law shall discourage the teaching of 
the Bible in any public school.
      SR
      155. The Senate amendment, but not the House bill, 
includes a Sense of the Senate provision relating to science 
education.
      SR
      156. The Senate amendment, but not the House bill, 
includes a Sense of the Congress provision regarding the study 
of the Declaration of Independence, the United States 
Constitution, and the Federal Papers.
      SR
      157. The Senate amendment, but not the House bill 
includes findings and a Sense of the Congress provision 
relating to the provision of educational materials which 
increase the awareness of students about the contributions of 
veterans to the nation.
      SR
      158. The Senate amendment, but not the House bill, 
includes findings and a Sense of the Senate provision regarding 
the benefits of music and arts education.
      SR
      159. The House bill and the Senate amendment both 
prohibit any mandatory nationwide test or certification of 
teachers. There are technical differences in the two bills. The 
House bill, but not the Senate amendment, includes a provision 
on the prohibition on withholding of funds relating to teacher 
or paraprofessional certification.
      HR with an amendment to insert House (b) after Senate 
(b).
      160. The House bill and the Senate amendment have similar 
provisions on the prohibition of national testing with 
technical differences in the two versions. The Senate 
amendment, but not the House bill, includes an exception for 
the National Assessment of Educational Progress and the Third 
International Math and Science Study. The House bill, but not 
the Senate amendment, makes an exception for tests 
``specifically and explicitly authorized by law.''
      SR with an amendment (see language below) and report 
language:

SEC. 8603. PROHIBITION ON FEDERALLY SPONSORED TESTING.

      (a) General Prohibition.--Notwithstanding any other 
provisions of Federal law and except as provided in subsection 
(b), no funds provided under this Act to the Secretary or to 
the recipient of any award may be used to develop, pilot test, 
field test, implement, administer, or distribute any federally 
sponsored national test in reading, mathematics, or any other 
subject, unless specifically and explicitly authorized by law.
      (b) Exceptions.--Subsection (a) shall not apply to 
international comparative assessments developed under the 
authority of section 404(a)(6) of the National Education 
Statistics Act of 1994 (20 U.S.C. 9003(a)(6) et seq.) and 
administered to only a representative sample of pupils in the 
United States and in foreign nations.
      Report Language:
      The prohibition on federally sponsored testing does not 
apply to a test that is specifically and explicitly authorized 
by law, inclusive of the National Education Statistics Act of 
1994.
      161. The Senate amendment, but not the House bill, 
includes a rule of construction on the prohibition of 
discrimination relative to the fifth and 14th Amendments.
      HR
      162. The House bill, but not the Senate amendment, 
includes a Sense of the Congress provision relating to 
memorials on campus.
      HR
      163. The House bill and Senate amendment include Sense of 
the Congress and Sense of the Senate provisions, respectively, 
regarding 95 percent of federal education funds being used for 
improving academic achievement in the classroom. The Senate 
amendment includes findings while the House bill does not.
      HR/SR to strike all language.
      164. The House bill, but not the Senate amendment, 
includes a provision on the evaluation of Elementary and 
Secondary Education Act programs. The Senate amendment does 
continue some evaluations specific to individual programs.
      SR
      165. The House bill, but not the Senate amendment, 
transfers comprehensive regional assistance centers from Title 
XIII of the Elementary and Secondary Education Act to Title 
VIII.
      HR
      166. The Senate amendment, but not the House bill, 
provides for those grants or contracts entered into relating to 
section 3141 (current law Title III of ESEA is Regional 
Technical Support and Professional Development) or part A or C 
of Title XIII (current law part A is Comprehensive Regional 
Assistance Centers and part C is Eisenhower Regional 
Mathematics and Science Education Consortia) before enactment 
of this Act, to be continued for the duration of such contract 
and award. The Senate amendment authorizes such sums for this 
purpose. The Senate amendment, but not the House bill, repeals 
this provision contingent upon enactment of a law that 
reauthorizes a provision of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 and, 
provided such enactment occurs after the date of enactment of 
the Better Education for Students and Teachers Act. See also 
section 3 of the House bill relating to a transition rule for 
multiyear grants.
      HR/SR with an amendment to be placed in Amendments to 
Other Statutes:

               ``CERTAIN MULTIYEAR GRANTS AND CONTRACTS.

      ``Sec ____. In General.--The Educational Research, 
Development, Dissemination, and Improvement Act of 1994 is 
amended by adding the following provision after Part I.

            ``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS

      ``Sec. 1001. (a) In General.--Notwithstanding any other 
provision of law, from funds appropriated under subsection (b), 
the Secretary--
            ``(1) shall continue to fund any multiyear grant or 
        contract awarded under section 3141, and Part A and 
        Part C of title XIII, of the Elementary and Secondary 
        Education Act of 1965 as such provision was in effect 
        on the day preceding the date of the enactment of the 
        [SHORT TITLE], for the duration of that multiyear award 
        in accordance with its terms; and
            ``(2) may extend, on a year-to-year basis, any 
        multiyear grant or contract awarded under an authority 
        described in paragraph (1) that expires after the 
        enactment of [Short Title], but before the enactment of 
        successor authority to the Educational Research, 
        Development, Dissemination, and Improvement Act of 
        1994.
      ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated for each fiscal year such sums as 
may be necessary to carry out subsection (a).''
      167. The House bill, but not the Senate amendment, 
transfers the national diffusion network from Title XIII of the 
Elementary and Secondary Education Act to Title VIII.
      HR
      168. The House bill, but not the Senate amendment, 
transfers the Eisenhower Regional Mathematics and Science 
Education Consortia from Title XIII of the Elementary and 
Secondary Education Act to Title VIII.
      HR
      169. The House bill, but not the Senate amendment, 
transfers the Technology-Based Technical Assistance program 
from Title XIII of the Elementary and Secondary Education Act 
to Title VIII.
      HR
      170. The House bill, but not the Senate amendment, 
transfers the Regional Technical Support and Professional 
Development program from Title III of the Elementary and 
Secondary Education Act to Title VIII.
      HR
      LC--Add the following provisions in General Provisions 
where most appropriate:
      ``Sec. ____. (a) Unsafe School Choice Policy.--Each State 
receiving funds under this Act shall establish and implement a 
statewide policy requiring that a student attending a 
persistently dangerous public elementary and secondary school, 
as determined by the State in consultation with a 
representative sample of local educational agencies, or who 
becomes a victim of a violent criminal offense, as determined 
by State law, while in or on the grounds of a public elementary 
or secondary school that the student attends, be allowed to 
attend a safe public elementary or secondary school within the 
local educational agency, including a public charter school.
      ``(b) Certification.--As a condition of receiving funds 
under this Act, a State shall certify in writing to the 
Secretary that the State is in compliance with this section.''

                     CIVIL RIGHTS OF BENEFICIARIES

      ``Sec. ____. (a) In General.--Nothing in this Act shall 
be construed to permit discrimination on the basis of race, 
color, religion, sex (except as otherwise permitted under Title 
IX of the Education Amendment of 1972), national origin, or 
disability in any program funded under this Act.
      ``(b) Rule of Construction.--Nothing in this Act shall be 
construed to require the disruption of services to a child or 
the displacement of a child enrolled in or participating in a 
program administered by an eligible entity, as defined in 
section 1116 of title I and Part B of title V, at the 
commencement of the entity's participation in a grant under 
section 1116 of title I or part B of title V.

                   Title IX--Miscellaneous Provisions

                      (Subsumed in Various Titles)

      1. The House bill, but not the Senate amendment, makes 
several changes to the National Education Statistics Act (NESA) 
which relate to the use of the National Assessment of 
Educational Progress (NAEP) for purposes of rewards and 
sanctions under Title VII of the House bill and requiring NAEP 
to be administered annually in reading and math.
      HR (separate changes to NAEP now going in Title VI, Part 
A)
      2. The House bill, but not the Senate amendment amends 
the General Education Provisions Act to give parents the right 
to access instructional materials, and to require parental 
consent prior to giving or administering certain surveys, 
evaluations, medical tests, treatments or immunizations to 
minors.
      HR/SR with an agreement to move to Title X, Amendments to 
Other Statutes and with an amendment to strike all language and 
insert the following:

``SEC.   . STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, AND 
                    ADMINISTRATION OF CERTAIN PHYSICAL EXAMINATIONS TO 
                    MINORS.

      Section 445 of the General Education Provisions Act (20 
U.S.C. 1232h) is amended as follows--
            ``(a) Strike items (1) through (7) of subsection 
        (b) and replace with the following items (1) through 
        (8)--
                    ``(1) political affiliations or beliefs of 
                the student or the student's parent;
                    ``(2) mental or psychological problems of 
                the student or his family;
                    ``(3) sex behavior or attitudes;
                    ``(4) illegal, anti-social, self-
                incriminating or demeaning behavior;
                    ``(5) critical appraisals of other 
                individuals with whom respondents have close 
                family relationships;
                    ``(6) legally recognized privileged or 
                analogous relationships, such as those with 
                lawyers, physicians, and ministers;
                    ``(7) religious practices, affiliations, or 
                beliefs of the student or student's parent; or
                    ``(8) income (other than that required by 
                law to determine eligibility for participation 
                in a program or for receiving financial 
                assistance under such program),''
            ``(b) Redesignate subsections (c) through (e) as 
        subsections (d) through (f), respectively, and insert 
        the following as subsection (c)--
            ``(c) Development of Local Policies Concerning 
        Student Privacy, Parental Access to Information, and 
        Administration of Certain Physical Examinations to 
        Minors.--
                    ``(1) Except as provided in subsections (a) 
                and (b), a local educational agency that 
                receives funds under any applicable program 
                shall develop and adopt policies, in 
                consultation with parents, regarding--
                            ``(A) the right of a parent of a 
                        student to inspect upon the request of 
                        the parent a survey created by a third 
                        party before the survey is administered 
                        or distributed by a school to a 
                        student, and any applicable procedures 
                        for granting a request by a parent for 
                        reasonable access to such survey within 
                        a reasonable period of time after the 
                        request is received;
                            ``(B) arrangements to protect 
                        student privacy that are provided by 
                        the agency in the event of the 
                        administration or distribution of a 
                        survey to a student containing one or 
                        more of the following items, including 
                        the right of a parent of a student to 
                        inspect upon the request of the parent 
                        any survey containing one or more of 
                        the following items--
                                    ``(i) political 
                                affiliations or beliefs of the 
                                student or the student's 
                                parent;
                                    ``(ii) mental or 
                                psychological problems of the 
                                student or his family;
                                    ``(iii) sex behavior or 
                                attitudes;
                                    ``(iv) illegal, anti-
                                social, self-incriminating or 
                                demeaning behavior;
                                    ``(v) critical appraisals 
                                of other individuals with whom 
                                respondents have close family 
                                relationships;
                                    ``(vi) legally recognized 
                                privileged or analogous 
                                relationships, such as those 
                                with lawyers, physicians, and 
                                ministers;
                                    ``(vii) religious 
                                practices, affiliations, or 
                                beliefs of the student or 
                                student's parent; or
                                    ``(viii) income (other than 
                                that required by law to 
                                determine eligibility for 
                                participation in a program or 
                                for receiving financial 
                                assistance under such program); 
                                and
                            ``(C) the right of a parent of a 
                        student to inspect upon the request of 
                        the parent any instructional material 
                        used as part of the educational 
                        curriculum of the student, and any 
                        applicable procedures for granting a 
                        request by a parent for reasonable 
                        access to instructional material within 
                        a reasonable period of time after the 
                        request is received;
                            ``(D) the administration of 
                        physical examinations or screenings 
                        that the school or agency may choose to 
                        administer to a student;
                            ``(E) the collection, disclosure, 
                        or use of personal information 
                        collected from students for the purpose 
                        of marketing or for selling or giving 
                        such personal information to others for 
                        such purpose, including arrangements to 
                        protect student privacy that are 
                        provided by the agency in the event of 
                        the collection, disclosure, or use of 
                        personal information collected from 
                        students for the purpose of marketing 
                        or for selling or giving such 
                        information to others for such purpose; 
                        and
                            ``(F) the right of a parent of a 
                        student to inspect upon the request of 
                        the parent any such instrument used in 
                        the collection of personal information 
                        in subsection (E) before the instrument 
                        is administered or distributed to a 
                        student, and any applicable procedures 
                        for granting a request by a parent for 
                        reasonable access to such instrument 
                        within a reasonable period of time 
                        after the request is received.
                    ``(2) Notification of policies and specific 
                events to parent.--(A) The policies developed 
                by a local educational agency under subsection 
                (c)(1) shall provide for reasonable notice of 
                the adoption of such policies directly to the 
                parents of students enrolled in schools in that 
                agency. At a minimum, such notice shall be 
                provided at least annually at the beginning of 
                the school year as well as within a reasonable 
                period of time after any substantive change in 
                such guidelines and shall offer the parent an 
                opportunity to opt his or her child out of 
                participation in (and for the purpose of 
                subparagraph (i) shall offer students of an 
                appropriate age an opportunity to opt out of 
                participation in)--
                            ``(i) activities involving the 
                        collection, disclosure, or use of 
                        personal information collected from 
                        students for the purpose of marketing 
                        or for selling or giving such personal 
                        information to others for such purpose;
                            ``(ii) any survey containing one or 
                        more items listed in subsection 
                        (c)(1)(B); and
                            ``(iii) any non-emergency, invasive 
                        physical examination or screening that 
                        is required as a condition of 
                        attendance and administered by the 
                        school and scheduled by the schools in 
                        advance, and is not necessary to 
                        protect the immediate health and safety 
                        of the student or other students.
                    ``(B) Notification of specific events.--The 
                local education agency shall directly notify 
                the parent of a student, at least annually at 
                the beginning of the school year, of the 
                specific or approximate dates during the school 
                year when the following activities are 
                scheduled or expected to be scheduled--
                            ``(i) activities involving the 
                        collection, disclosure, or use of 
                        personal information collected from 
                        students for the purpose of marketing 
                        or for selling or giving such personal 
                        information to others for such purpose;
                            ``(ii) any survey containing one or 
                        more items listed in subsection 
                        (c)(1)(B); and
                            ``(iii) any non-emergency, invasive 
                        physical examination or screening that 
                        is required as a condition of 
                        attendance and administered by the 
                        school and scheduled by the schools in 
                        advance, and is not necessary to 
                        protect the immediate health and safety 
                        of the student or other students.
                    ``(3) Existing guidelines.--A local 
                educational agency or institution need not 
                develop and adopt new guidelines if the state 
                educational agency or local educational agency 
                has policies in place covering the requirements 
                of subsection (c)(1) on the day of the 
                enactment of the [Short Title], but shall 
                provide reasonable notice of such existing 
                policies to parents and guardians of students 
                as set forth in subsection (c)(2).
                    ``(4) Exceptions.--
                            ``(A) Educational products or 
                        services.--Section (c)(1)(E) shall not 
                        apply to the collection, disclosure, or 
                        use of personal information collected 
                        from students for the exclusive purpose 
                        of developing, evaluating, or providing 
                        educational products or services for, 
                        or to, students or educational 
                        institutions, such as the following--
                                    ``(i) college or other 
                                post-secondary education 
                                recruitment or military 
                                recruitment;
                                    ``(ii) book clubs, 
                                magazines, and programs 
                                providing access to low-cost 
                                literary products;
                                    ``(iii) curriculum and 
                                instructional materials used by 
                                elementary and secondary 
                                schools;
                                    ``(iv) tests and 
                                assessments used by elementary 
                                and secondary schools to 
                                provide cognitive, evaluative, 
                                diagnostic, clinical, aptitude, 
                                or achievement information 
                                about students (or to generate 
                                other statistically useful data 
                                for the purpose of securing 
                                such tests and assessments) and 
                                the subsequent analysis and 
                                public release of aggregate 
                                data;
                                    ``(v) the sale by students 
                                of products or services to 
                                raise funds for school--or 
                                education-related activities; 
                                and
                                    ``(vi) student recognition 
                                programs.
                            ``(B) State law exception.--The 
                        provisions of subsection (c) shall 
                        not--
                            ``(i) be construed to preempt 
                        provisions of State law that require 
                        parental notification; or
                            ``(ii) apply to any physical 
                        examination or screening that is 
                        permitted or required by State law, 
                        including those physical examinations 
                        or screenings that are permitted 
                        without parental notification.
                    ``(5) Definitions.--(A) Local educational 
                agency. For the purpose of subsection (c), the 
                term 'local educational agency' means any 
                elementary, middle, or secondary school, and 
                any school district or local board of education 
                that is the recipient of funds under any 
                applicable program, but does not include 
                postsecondary institutions.
                    ``(B) Instructional material. For the 
                purpose of subsection (c), the term 
                'instructional material' means instructional 
                content that is provided to a student 
                regardless of its format, including printed or 
                representational materials, audio/visual 
                materials, and materials in electronic or 
                digital formats (such as materials accessible 
                through the internet), but does not include 
                academic tests or academic assessments.
                    ``(C) Invasive physical examination. For 
                the purpose of this section, the term 'invasive 
                physical examination' means any medical 
                examination that involves the exposure of 
                private body parts, or any act during such 
                examination that includes incision, insertion, 
                or injection into the body, but does not 
                include hearing, vision, or scoliosis 
                screenings.
                    ``(D) Parent. For the purpose of this 
                section, the term 'parent' includes a guardian.
                    ``(E) Personal information. For the purpose 
                of this section, the term 'personal 
                information' means individually identifiable 
                information including--
                            ``(i) a student or parent's first 
                        and last name;
                            ``(ii) a home or other physical 
                        address including street name and name 
                        of city or town;
                            ``(iii) a telephone number; or
                            ``(iv) a Social Security number.
                    ``(F) Student. For the purpose of this 
                section, the term 'student' means any 
                elementary or secondary school student.
                    ``(G) Survey. For the purpose of this 
                section, the term 'survey' includes an 
                evaluation.
            ``(6) General provisions.--(A) In General.--(i) 
        Nothing in this section shall be construed to supercede 
        section 444 of the General Education Provisions Act (20 
        U.S.C. 1232g).
                    ``(ii) Subsection (c)(1)(D) shall not apply 
                to surveys administered to a student in 
                accordance with the Individuals with 
                Disabilities Education Act (20 U.S.C. 1400 et 
                seq.).
                    ``(B) Student rights. The rights provided 
                to parents under this section transfer to the 
                student once the student turns 18 years old, or 
                is an emancipated minor at any age.
                    ``(C) Information activities. The Secretary 
                shall annually inform each State educational 
                agency and each local educational agency of the 
                educational agency's obligations under sections 
                444 and 445 of the General Education Provisions 
                Act (20 U.S.C. 1232g).
                    ``(D) Funding. A State educational agency 
                or local educational agency may use funds 
                provided under part A of title V of the [Short 
                Title] to enhance parental involvement in areas 
                affecting children's in-school privacy.''.
      Report Language:
      The Conferees intend that the term ``condition of 
attendance'' includes any action, whether overt or implicit, by 
a school or local educational agency in the announcement, 
scheduling, or administration of a non-emergency, invasive 
physical examination or screening which states or implies that 
the school- or local educational agency-administered 
examination or screening is required, compulsory, or may not be 
opted out of by the parent.
      3. Both the House bill and the Senate amendment are 
identical in this section.
      Notes 3-7: agreement to move to Title IX, General 
Provisions;
      Notes 3-5, HR/SR with an amendment;
      Notes 6-7, SR with an amendment;
      (Ratified October 30, 2001).

``SEC.   . EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.

      ``(a) Short Title.--This section may be cited as the 
``Boy Scouts of America Equal Access Act.''
      ``(b) In General.--Notwithstanding any other provision of 
law, no public elementary school, public secondary school, 
local educational agency, or State educational agency that has 
a designated open forum or a limited public forum shall deny 
equal access or a fair opportunity to meet to, or discriminate 
against, any group officially affiliated with the Boy Scouts of 
America, or any other youth group listed in title 36 of the 
United States Code as a patriotic society, that wishes to 
conduct a meeting within that designated open forum or limited 
public forum, including for reasons based on the membership or 
leadership criteria or oath of allegiance to God and country of 
the Boy Scouts of America or of the youth group listed in title 
36 of the United States Code as a patriotic society.
    ``Nothing in this section requires any school or a school 
served by an agency to sponsor any group officially affiliated 
with the Boy Scouts of America, or any other youth group listed 
in title 36 of the United States Code as a patriotic society.
      ``(c) Termination of Assistance and Other Action.--
            ``(1) Departmental action.--The Secretary is 
        authorized and directed to effectuate subsection (b) by 
        issuing, and securing compliance with, rules or orders 
        with respect to a public elementary school, public 
        secondary school, local educational agency, or State 
        educational agency that receives funds made available 
        through the Department of Education and that denies 
        equal access, or a fair opportunity to meet, or 
        discriminates, as described in subsection (b).
            ``(2) Procedure.--The Secretary shall issue and 
        secure compliance with the rules or orders, under 
        paragraph (1), through the Office of Civil Rights and 
        in a manner consistent with the procedure used by a 
        Federal department or agency under section 602 of the 
        Civil Rights Act of 1964 (42 U.S.C. 2000d-1). If the 
        public school or agency does not comply with the rules 
        or orders, then notwithstanding any other provision of 
        law, no funds made available through the Department of 
        Education shall be provided to the school or any school 
        served by the agency.
            ``(3) Judicial review.--Any action taken by the 
        Secretary under paragraph (1) shall be subject to the 
        judicial review described in section 603 of that Act 
        (42 U.S.C. 2000d-2). Any person aggrieved by the action 
        may obtain that judicial review in the manner, and to 
        the extent, provided in section 603 of that Act.
      ``(d) Definitions and Rule.--
            ``(1) Definitions.--In this section:
                    ``(A) Elementary school; local educational 
                agency; secondary school; state educational 
                agency.--The terms `elementary school', `local 
                educational agency', `secondary school', and 
                `State educational agency' have the meanings 
                given the terms in section 14101 of the 
                Elementary and Secondary Education Act of 1965 
                [update cite].
                    ``(B) Secretary.--The term `Secretary' 
                means the Secretary of Education.
                    ``(C) Youth group.--The term `youth group' 
                means any group or organization intended to 
                serve young people under the age of 21.
            ``(2) Rule.--For purposes of this section, an 
        elementary school or secondary school has a limited 
        public forum whenever the school involved grants an 
        offering to, or opportunity for, one or more outside 
        youth or community groups to meet on school premises or 
        in school facilities before or after the hours during 
        which attendance at the school is compulsory.''
      4. The House bill and the Senate amendment address access 
to and use of school facilities by the Boy Scouts of America or 
of youth groups that prohibit the acceptance of homosexuals, or 
individuals who reject the Boy Scouts' or the youth group's 
oath of allegiance to God and country. The two provisions are 
substantially the same with minor technical differences.
      HR/SR with an amendment (see note 3).
      5. The House bill and the Senate amendment have same 
effective date with exception that the House uses the clause 
``notwithstanding section 5.''
      HR/SR with an amendment (see note 3).
      6. The Senate amendment, but not the House bill, includes 
a second provision on the Boy Scouts. A short title is included 
in section 1501 of the Senate amendment but not the House bill.
      SR with an amendment (see note 3).
      7. The Senate amendment, but not the House bill, 
addresses equal access to the use of school facilities by the 
Boy Scouts or any other group, regardless of the groups' sexual 
orientation.
      SR with an amendment (see note 3).
      8. The House bill repeals Parts A and C of Title II and 
Title VI of the Goals 2000: Educate America Act. The Senate 
amendment repeals all of the Goals 2000: Educate America Act.
      SR and an agreement to move to Title X's repeals section.
      9. The House bill, but not the Senate amendment, repeals 
the Troops to Teachers Program Act of 1999.
      LC and an agreement to move to Title X's repeals section.
      10. The House bill repeals Title IX; Parts A, B, C, D, F, 
G, I, J, and L of Title X; Titles XI,; Title XII; the title 
heading of Title XIII and sections 13001 and 13002; and Title 
XIV. The Senate amendment repeals Titles IX through XIV.
      LC and an agreement to move to Title X's repeals section.
      11. The Senate amendment, but not the House bill, 
includes several provisions relating to the collection of 
information from students which is used for commercial 
purposes.
      HR/SR (see note 2).
      12. The Senate amendment, but not the House bill, 
requires State and local educational agencies that receive 
funds under the Act to develop and adopt guidelines to protect 
student privacy.
      HR/SR (see note 2).
      13. The Senate amendment but not the House bill includes 
a separate public school choice program.
      HR with an agreement to move to Title V, part B; and with 
an amendment to strike ``125,000,000'' and to insert 
``100,000,000''; to strike ``each subsequent fiscal year'' and 
to insert ``such sums as may be necessary for each of the six 
succeeding fiscal years''.
      Report Language:
      The Conferees agree that the term ``school construction'' 
does not refer to minor renovations or repairs conducted in a 
school or classroom or to the leasing or purchase of modular 
classroom facilities which are understood to be appropriate 
capacity-enhancing activities that enable high-demand public 
school to accommodate transfer requests under the program. The 
Conferees intend that students who transfer to another public 
school shall be enrolled in classes and other activities in the 
same manner as all other children at the public school.
      14. The Senate amendment, but not the House bill, 
authorizes parental information and resource centers.
      HR with an agreement to move to Subpart 16 of Title V, 
Part D (FIE) and an agreement to reduce the reservation for the 
Parents as Teachers program from 50 percent to 30 percent.
      15. The Senate amendment, but not the House bill, 
authorizes a new summer academic enrichment program.
      SR
      16. The Senate amendment, but not the House bill, 
authorizes a dropout prevention program.
      HR with an agreement to move to Title I, Part G and an 
authorization of $125 million for FY 2002 and such sums for 
each of the 5 succeeding fiscal years.
      17. The Senate amendment, but not the House bill, 
authorizes a new grant program relating to advanced placement 
courses.
      HR with an agreement to repeal current Higher Ed Act AP 
program and move this new program to Title I, part H; funded at 
such sums as necessary for FY 2002 and the 5 succeeding fiscal 
years.
      18. The Senate amendment, but not the House bill, 
authorizes the Secretary of Education to award grants to the 
National Student/Parent Mock Election, a nonprofit 
organization, to promote voter participation in American 
elections.
      HR with an agreement to move to Subpart 1 of Title V, 
Part D (FIE) as a general use of funds.
      19. The Senate amendment, but not the House bill, 
includes a new program for the teaching of traditional American 
History.
      HR with an agreement to move to Subpart 5 of Title II, 
Part C.
      20. The Senate amendment, but not the House bill, 
includes a new program to promote economic and financial 
literacy.
      HR with an agreement to move to Subpart 13 of Title V, 
Part D (FIE).
      21. The Senate amendment, but not the House bill, 
authorizes the Director of the National Institutes of Health 
and the Secretary of Education to jointly conduct a study on 
how exposure to violence through movies, music, television and 
other media affects children's cognitive development. The 
Senate amendment also amends the National Education Statistics 
Act to require the Commissioner of Education Statistics to 
gather data on how much time children spend on various forms of 
entertainment.
      HR/SR with an amendment to strike all language and add 
the following provision at Subpart 1 of Title V, Part D (FIE).

``SEC. XXXX. STUDIES OF NATIONAL SIGNIFICANCE.

      (a) Studies.--The Secretary shall conduct the following 
studies of national significance:
            ``(i) Study regarding the health and learning 
        impacts of environmentally unhealthy public school 
        buildings on students and teachers. The study shall 
        include the following information--
                    ``A. The characteristics of public 
                elementary and secondary school buildings that 
                contribute to unhealthy school environments.
                    ``B. The health and learning impacts of 
                environmental unhealthy public school buildings 
                on students that are attending or that have 
                attended such schools.
                    ``C. Recommendations to Congress on how to 
                assist schools that are out of compliance with 
                Federal or State health and safety codes, and a 
                cost estimate of bringing up environmentally 
                unhealthy public school buildings to minimum 
                Federal health and safety building standards.
            ``(ii) Study regarding how exposure to violent 
        entertainment (such as movies, music, television, 
        Internet content, video games, and arcade games) 
        affects children's cognitive development and 
        educational achievement.
            ``(iii) Study regarding the prevalence of sexual 
        abuse in schools, including recommendations and 
        legislative remedies for the problem of sexual abuse in 
        schools.
            ``(iv) Study on the most accurate measures of the 
        rate at which students drop out of and graduate from 
        (including on-time graduation from) schools in the 
        United States.
                    ``A. As part of the study, the Secretary 
                shall examine longitudinal means of measurement 
                that follow individual student progress, 
                beginning with seventh grade and continuing 
                through graduation from secondary schools, and 
                what states can do to establish or strengthen 
                such systems.
                    ``B. Not less than 1 year after the date of 
                enactment of this Act, the Secretary shall 
                transmit to Congress a report containing the 
                results of the study and any recommendations 
                that the Secretary may have regarding the 
                subject of the study.
      ``(b) Completion Date.--The studies under subsections 
(a)(i)-(iii) shall be completed not later than 18 months after 
the enactment of the No Child Left Behind Act of 2001.
      ``(c) Public Dissemination.--The Secretary shall make the 
study under (a)(i) available for public consumption through the 
Educational Resources Information Center National Clearinghouse 
for Educational Facilities of the Department of Education.''
      22. The Senate amendment, but not the House bill, 
includes findings regarding sexual abuse in schools, and an 
authorization for the Secretary of Education in conjunction 
with the Attorney General, to conduct a comprehensive study of 
the prevalence of sexual abuse in schools and to prepare a 
report thereon for submission to relevant Congressional 
committees and others.
      HR/SR to strike all language (see note 21)
      23. The Senate amendment, but not the House bill, 
authorizes a study of whether Federal income tax incentives 
that provide education assistance affect higher education 
tuition rates.
      SR
      24. The Senate amendment, but not the House bill, 
includes an authorization for the Fund for the Improvement of 
Education, a Secretarial discretionary grant program.
      HR with an agreement to move to Subpart 1 of Title V, 
Part D (FIE) amended to read as follows:

        ``TITLE V, PART D--FUND FOR THE IMPROVEMENT OF EDUCATION

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

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

      ``(a) Programs and Projects Authorized.--
            ``(1) In general.--From funds appropriated under 
        this part, the Secretary is authorized to support 
        nationally significant programs and projects to improve 
        the quality of elementary and secondary education at 
        the State and local levels and help all children meet 
        challenging academic content and achievement standards.
            ``(2) Methods for carrying out programs and 
        projects.--The Secretary is authorized to carry out 
        such programs and projects directly, or through grants 
        to or contracts with States or local educational 
        agencies, institutions of higher education, and other 
        public and private agencies, organizations, and 
        institutions.
            ``(b) Uses of Funds.--The funds appropriated under 
        this part may be used for any of the following 
        activities and programs:
            ``(1) Activities to promote systemic education 
        reform at the State and local levels, including 
        scientifically based research, development, and 
        evaluation designed to improve:
                    ``(A) student academic achievement at the 
                State and local level; and
                    ``(B) strategies for effective parent and 
                community involvement.
            ``(2) Programs at the State and local levels which 
        are designed to yield significant results, including 
        programs to explore approaches to public school choice 
        and school-based decision-making.
            ``(3) Recognition, which may include financial 
        awards to States, local educational agencies, and 
        schools that--
                    ``(A) have made the greatest progress in 
                improving the academic achievement of 
                economically disadvantaged students and 
                students from major racial and ethnic minority 
                groups and in closing the academic achievement 
                gap for those groups of students farthest away 
                from the proficient level on the academic 
                assessments administered by the State under 
                section 1111 of Title I; or
                    ``(B) are nominated by the States in which 
                the schools are located or, in the case of a 
                Bureau of Indian Affairs funded school, by the 
                Secretary of the Interior, because they have 
                made the greatest progress in improving the 
                academic achievement of economically 
                disadvantaged students and students from major 
                racial and ethnic minority groups and have 
                closed the academic achievement gap for those 
                groups of students farthest away from the 
                proficient level on the academic assessments 
                administered by the State under section 1111 of 
                Title I.
            ``(4) Scientifically based studies and evaluations 
        of education reform strategies and innovations, and the 
        dissemination of information on the effectiveness of 
        such strategies and innovations.
            ``(5) The identification and recognition of 
        exemplary schools and programs, such as Blue Ribbon 
        Schools, including projects to evaluate the 
        effectiveness of using the best practices of exemplary 
        or Blue Ribbon Schools to improve academic achievement.
            ``(6) Activities to support Scholar-Athlete Games 
        programs, including the World Scholar-Athlete Games and 
        the U.S. Scholar-Athlete Games.
            ``(7) Programs to promote voter participation in 
        American elections through programs such as the 
        National Student/Parent Mock Election and Kids Voting 
        USA.
            ``(8) demonstrations relating to the planning and 
        evaluations of the effectiveness of projects under 
        which local educational agencies or schools contract 
        with private management organizations to reform a 
        school or schools.
            ``(9) Other programs and projects that meet the 
        purposes of this section.

``SEC. XXXX. GENERAL PROVISIONS.

      ``(a) Awards Made on Competitive Basis.--The Secretary 
may:
            ``(1) make awards under this part on the basis of 
        competitions announced by the Secretary, and;
            ``(2) support meritorious unsolicited proposals.
      ``(b) Special Rule.--The Secretary shall ensure that 
programs, projects, and activities supported under this part 
are designed so that their effectiveness is readily 
ascertainable, and shall ensure that such effectiveness is 
assessed using rigorous, scientifically based research and 
evaluations.
      ``(c) Peer Review.--The Secretary shall use a peer review 
process in reviewing applications for assistance under this 
part and in recognizing States, local educational agencies and 
schools under section XXXX (b)(3) [Recognition] only if funds 
are used for such activity, and may use funds appropriated 
under this part for the cost of such peer review.
      ``(d) Applications.--An applicant for an award under this 
part shall submit an application which--
            ``(1) establishes clear goals and objectives for 
        its project under this part which are based on 
        scientifically based research; and
            ``(2) describes the activities it will carry out in 
        order to meet the goals and objectives described in 
        paragraph (1).
      ``(e) Evaluations.--A recipient of an award under this 
part shall--
            ``(1) evaluate the effectiveness of its project in 
        achieving the goals and objectives stated in its 
        application; and
            ``(2) report to the Secretary such information as 
        may be required, including evidence of its progress 
        toward meeting such goals, to determine the project's 
        effectiveness.
      ``(f) Dissemination of Evaluation Results.--The Secretary 
shall provide for the dissemination of the evaluations of 
projects funded under this part by making the evaluations 
publicly available upon request, and shall publish public 
notice that the evaluations are so available.
      ``(g) Matching Funds.--The Secretary may require 
recipients of awards under this part to provide matching funds 
from non-Federal sources.
      ``(h) Special Rule.--The requirements of (d) 
[Applications], (e) [Evaluations], and (f) [Dissemination of 
Evaluation Results] shall not apply to activities described in 
section XXXX (b)(3) [Recognition].

``SEC. XXXX. AUTHORIZATION OF APPROPRIATIONS.

      ``There are authorized to be appropriated to carry out 
this part the following amounts:
            $550 million for FY 2002
            $575 million for FY 2003
            $600 million for FY 2004
            $625 million for FY 2005
            $650 million for FY 2006
            $675 million for FY 2007.''
      25. The Senate amendment, but not the House bill, 
authorizes the Secretary of Education to award grants to a 
specific non-profit organization for the purpose of reimbursing 
such organization for the costs of conducting scholar-athlete 
games.
      HR with an agreement to move to Subpart 1 of Title V, 
Part D (FIE) as a general use of funds.
      26. The Senate amendment, but not the House bill, 
authorizes a Physical Education for Progress program.
      HR with an agreement to move to Subpart 10 of Title V, 
Part D (FIE).
      27. The Senate amendment, but not the House bill, 
authorizes a Smaller Learning Communities program. Similar 
activities are included in Title V, Part B, Subpart 4, Chapter 
5 (use of funds under innovative education program strategies) 
of the Senate amendment.
      HR with an agreement to move to Subpart 4 of Title V, 
Part D (FIE).
      28. The Senate amendment, but not the House bill, 
authorizes a study of the health and learning impacts of 
dilapidated or environmentally unhealthy public school 
buildings upon students.
      HR/SR to strike all language (see note 21).
      29. The Senate amendment, but not the House bill, 
establishes a new program relating to improving the energy-
efficiency and environmental soundness of school buildings.
      HR with an agreement to amend and move to Subpart 18 of 
Title V, Part D (FIE).

            Title IX, Part A, Subpart 2--Homeless Education

                         (New Title X, Part C)

      SR for short title
      1. House bill contains findings.
      HR
      2. Senate amendment does not contain similar provisions.
      HR
      3. House bill contains a purpose.
      HR
      4. Senate amendment contains no similar provision.
      HR
      5. House bill and Senate amendment contain identical 
provision that clarifies that homelessness alone is not 
sufficient reason to separate students from the mainstream 
school environment (strikes `should not be' and replaces with 
`is not').
      SR with an amendment to insert ``appropriate'' before 
``public education'' in House paragraph (1) and insert 
``appropriate'' before ``public education'' in House paragraph 
(2).
      6. House bill and Senate amendment are identical.
      LC
      7. House bill and Senate amendment are identical.
      LC
      8. House bill increases the amount of McKinney-Vento 
funding available to small States to one-half of one percent of 
the overall appropriation, or $125,000, whichever is greater.
      SR with an amendment to set small state minimum at 
$150,000 or \1/4\ of 1% of the total appropriation, whichever 
is greater, except that no state shall receive less than it 
received in FY 2001.
      9. Senate amendment makes $100,000 available to small 
States.
      SR--See Note 8.
      10. House bill and Senate amendment strike Palau from 
receiving funds.
      LC
      11. House bill requires the Secretary to transfer 1% to 
the Department of Interior by replacing ``is authorized to'' 
with ``shall.''
      SR
      12. Senate amendment authorizes the transfer.
      SR
      13. Virtually identical provisions.
      LC
      14. House bill provides States with greater flexibility 
to use McKinney-Vento funds for statewide support and technical 
assistance activities.
      SR
      15. Senate amendment has a reservation of funds for 
statewide activities.
      SR
      16. House bill prohibits states that receive McKinney 
funds from segregating homeless students, except for short 
periods of time for health and safety emergencies or to provide 
temporary, special, supplementary services. However, separate 
schools established before the enactment of the law are 
excluded from this prohibition and may continue to receive 
McKinney funds.
      HR
      17. Senate amendment prohibits states that receive 
McKinney funds from segregating homeless students, except for 
short periods of time for health and safety emergencies or to 
provide temporary, special, supplementary services. However, a 
State that has a separate school for homeless children or youth 
that was operated in fiscal year 2000 in a covered county (San 
Joaquin County, CA; Orange County, CA; San Diego County, CA; 
and Maricopa County, AZ) is excluded from this prohibition and 
may continue to receive McKinney funds as long as such schools 
and the LEAs that homeless children enrolled in the separate 
school are entitled to attend meet the requirements set forth 
in this section.
      HR
      18. House bill and Senate amendment contain virtually 
identical language that revises the provisions for the 
Coordinator of Education of Homeless Children and Youth, 
however, House bill requires that this information be gathered 
``to the extent possible.''
      HR
      ``It is the intention of the conferees that the Office of 
the Coordinator shall coordinate with the State Educational 
Agency, state social services agencies, and other agencies, 
including agencies providing mental health services, to provide 
services to homeless children, youth, and families.''
      19. House bill requires Coordinators to provide technical 
assistance to ensure that LEAs comply with paragraphs 3 through 
7 of the State plan.
      SR (Accept both provisions--notes 19 & 20).
      20. Senate amendment requires Coordinators to provide 
technical assistance to ensure that LEAs comply with the 
prohibition on segregating homeless students. House bill and 
Senate amendment revise the State plan.
      HR (Accept both provisions--notes 19 & 20).
      21. House bill and Senate amendment revise the State 
plan.
      LC
      22. House bill requires the State plan to describe 
procedures that ensure that homeless youth and youth separated 
from the public schools are identified and accorded equal 
access to appropriate secondary education and support services.
      SR
      23. House bill adds immunization and medical records to 
the list of problems which may cause enrollment delays, Senate 
amendment does not.
      SR
      24. House bill adds uniform or dress code requirements to 
the list of problems which may cause enrollment delays, Senate 
amendment does not.
      SR
      25. House bill and Senate amendment contain similar 
language requiring the State plan contain assurances that SEAs 
and LEAs will adopt policies and practices to ensure that 
homeless children and youth are not segregated on the basis of 
their status as homeless.
      HR on Senate (i).
      SR on House (J) (ii).
      26. House bill requires the State plan to contain 
assurances that the State and school districts will adopt 
policies and practices to ensure that transportation is 
provided to and from the school of origin.
      SR
      27. Senate amendment contains no similar provision.
      SR
      28. Virtually identical provisions.
      LC
      29. House bill requires State plan to describe technical 
assistance the State will offer LEAs.
      SR
      30. Senate amendment contains no similar provision.
      SR
      31. House bill and Senate amendment revise LEA 
requirements with virtually identical provisions.
      LC
      32. Senate amendment requires LEAs to consider the wishes 
of unaccompanied youth in placement decisions.
      SR
      33. House bill requires that parents, guardian, or 
unaccompanied youth are given written notice of right of 
appeal.
      SR
      34. Senate amendment contains no similar provision.
      SR
      35. House bill contains language regarding enrollment 
decisions for unaccompanied youth. Senate amendment does not 
contain this provision.
      SR with an amendment to (B)(iii) to add ``considers the 
views of such unaccompanied youth'' after ``subparagraph.''
      36. Senate amendment specifies that the student shall be 
referred to the appropriate authorities if the child or youth 
needs to obtain immunizations.
      SR
      37. House bill specifies that the student shall be 
referred to the liaison if the child or youth needs to obtain 
immunizations.
      SR
      38. House bill contains language requiring ordinarily 
kept records of students be maintained so that they are 
available when a child or youth enters a new school or school 
district.
      SR
      39. House bill provides that written explanation of right 
of appeal is provided to the parent or guardian.
      SR
      40. Senate amendment contains no similar provision.
      SR
      41. House bill specifies that the local liaison carries 
out the dispute resolution process.
      SR
      42. Senate amendment contains no similar provision.
      SR
      43. House bill provides LEA authority to require 
submission of contact information.
      SR with an amendment to strike all after ``information'' 
in (H).
      44. Senate amendment contains no similar provision.
      SR with an amendment as noted in Note 43.
      45. House bill and Senate amendment are identical.
      LC
      46. House bill and Senate amendment contain virtually 
identical language.
      LC
      47. House bill contains language on interdistrict 
coordination.
      SR
      48. Senate amendment contains no similar provision.
      SR
      49. House bill and Senate amendment contain similar 
provisions except that House bill adds ``reasonable 
proximity.''
      SR
      50. House bill and Senate amendment revise the duties of 
the local liaison with virtually identical language.
      LC
      51. House bill provides that the liaison coordinate with 
school personnel and other entities to identify homeless 
children.
      SR with an amendment to strike ``an'' and insert ``a full 
and'' before ``equal''.
      52. House bill requires the liaison to inform students 
about transportation services.
      SR
      53. Senate amendment contains no similar provision.
      SR
      54. House bill requires notice for all LEAs.
      SR
      55. Senate amendment requires notice for LEAs receiving 
assistance under this subtitle.
      SR
      56. House bill and Senate amendment are identical.
      LC
      57. House bill and Senate amendment revise LEA services 
for homeless children and youth with virtually identical 
language.
      SR
      58. Similar provisions.
      LC
      59. House bill and Senate amendment are identical.
      LC
      60. House bill revises the LEA application language.
      SR
      61. Senate amendment makes a minor modification to 
current law that is similar to language in House bill.
      LC
      62. House bill and Senate amendment are virtually 
identical.
      LC
      63. House bill revises language regarding grants awarded 
to LEAs.
      LC
      64. House bill and Senate amendment are virtually 
identical.
      LC
      65. House bill and Senate amendment contain language for 
determining the quality of applications that are virtually 
identical.
      LC
      66. Senate amendment specifies that case management 
services may be a factor used in determining quality.
      SR with an amendment to add ``such as the extent to which 
the local educational agency provides case management or 
related services to homeless children and youth who are 
unaccompanied by a parent or guardian'' after ``program'' in 
House (G).
      (Adding Senate (G) to end of House (G)).
      67. House bill contains no similar provision.
      SR with an amendment as noted in Note 66.
      68. House bill revises LEA authorized activities, Senate 
amendment does not.
      SR
      69. House bill provides for outreach assistance to 
unaccompanied youth.
      SR
      70. Senate amendment contains no similar provision.
      SR
      71. House bill revises Secretarial Responsibilities 
section.
      SR
      72. House bill requires the Secretary to provide and 
disseminate notice of educational rights of homeless children.
      SR
      73. Senate amendment contains no similar provision.
      SR
      74. Senate amendment contains a requirement for the 
Secretary to develop and issue school enrollment guidelines for 
homeless children and youth.
      HR with an amendment to strike ``more quickly'' and 
insert ``immediately''.
      75. House bill contains language requiring the Secretary 
to disseminate information regarding the rights of homeless 
children and youth (see ``Sec. 724(c) NOTICE'' above).
      HR with an amendment as noted in Note 74.
      76. House bill and Senate amendment contain virtually 
identical language regarding information collection and 
dissemination.
      LC
      77. House bill and Senate amendment contain virtually 
identical language regarding a report from the Secretary on the 
education of homeless children and youth.
      LC
      78. House bill specifically mentions ``children and youth 
who are living in doubled-up accommodations.''
      HR
      79. House bill uses term ``individuals'' and Senate 
amendment uses term ``children and youth.''
      HR
      80. Similar provisions.
      HR
      81. Identical provision.
      LC
      82. Similar provisions.
      HR
      83. Identical provision.
      LC
      84. House bill authorizes $60 million for fiscal year 
2002 and such sums as may be necessary for each of fiscal years 
2003 through 2006.
      HR
      85. Senate amendment authorizes $70 million for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
      HR with an amendment to strike ``6'' and insert ``5''.

                      Amendments to Other Statutes

                         (New Title X, Part G)

      1. The Senate amendment, but not the House bill, amends 
the term ``qualified entity'' of the National Child Protection 
Act of 1993
      SR with an amendment to insert:
      ``Sec. ----. ( ) Background Checks.--Section 5(9) of the 
National Child Protection Act of 1993 (42 U.S.C. 5119c(9)) is 
amended--
            ``(1) in subparagraph (A)(i), by inserting 
        ``(including an individual who is employed by a school 
        in any capacity, including as a child care provider, a 
        teacher, or another member of school personnel)'' 
        before the semicolon; and
            ``(2) in subparagraph (B)(i), by inserting 
        ``(including an individual who seeks to be employed by 
        a school in any capacity, including as a child care 
        provider, a teacher, or another member of school 
        personnel)'' before the semicolon.''
      ``Sec ----. ( ) Coordinator for the Outlying Areas.--The 
Department of Education Organization Act is amended by adding 
at the end of Title II of such Act the following:

``SEC. 220. COORDINATOR FOR THE OUTLYING AREAS

      ``(a) Establishment.--The Secretary shall designate an 
office of the Department to coordinate the activities of the 
Department as they relate to the Outlying Areas.
      ``(b) Appointment.--The head of the office designated 
under subsection (a) shall appoint, not later than 3 months 
after the date of enactment of [the Act] a coordinator for the 
Outlying Areas who shall be a person with substantial 
experience in the operation of Federal programs in the Outlying 
Areas.
      ``(c) Duties.--The Coordinator for the Outlying Areas 
shall--
            ``(1) serve as the principal advisor to the 
        Department on federal matters affecting the Outlying 
        Areas;
            ``(2) evaluate on a periodic basis the needs of 
        education programs in the Outlying Areas;
            ``(3) assist with the coordination of programs 
        which serve the Outlying Areas; and
            ``(4) provide guidance to programs within the 
        Department that serve the Outlying Areas.
      ``(d) Definition.--For the purposes of this section, the 
term ``Outlying Areas'' includes Guam, the Virgin Islands, 
American Samoa, and the Commonwealth of the Northern Marianas 
Islands, but does not include the Freely Associated States of 
the Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau.''
      2. The Senate amendment, but not the House bill, amends 
the Individuals With Disabilities Education Act to add a new 
chapter 3 to part D of IDEA relating to improving early 
intervention, educational, and transitional services.
      SR
      3. The Senate amendment includes findings regarding IDEA.
      SR
      4. The House bill does not contain a similar provision.
      SR
      5. The Senate amendment would amend IDEA to allow LEAs to 
treat as local funds up to 55 percent of funding increases 
beyond the amount received in FY2001 and to petition the State 
to waive the 55% cap. It would also allow the Secretary to 
prohibit the LEA from supplanting funds if it does not meet 
part B requirements.
      SR
      6. The House bill does not contain a similar provision.
      SR
      7. The Senate amendment would amend IDEA to make funding 
of part B mandatory for fiscal years 2002-2011.
      SR
      8. The House bill does not contain a similar provision.
      SR
      9. Senate returns IDEA part B to a discretionary program 
for FY2012 and subsequent years. House contains no similar 
provision.
      SR
      10. The Senate amendment, but not the House bill, 
includes amendments to the Omnibus Crime Control and Safe 
Streets Act of 1968 relating to school resource officers.
      SR
      11. The Senate amendment, but not the House bill, amends 
the Higher Education Act to create a new program of loan 
forgiveness for Head Start teachers.
      SR
      12. The Senate amendment, but not the House bill, 
includes amendments to the Economic Espionage Act of 1966 
relating to Boys and Girls Clubs.
      SR
      13. The Senate amendment, but not the House bill, 
includes amendments to the Carl D. Perkins Vocational and 
Technical Education Act of 1998
      SR
      14. The Senate amendment, but not the House bill, 
reauthorizes the National Environmental Education Act, 
including comprehensive changes.
      SR
      15. The Senate amendment, but not the House bill, 
includes amendments to the Federal Insecticide, Fungicide, and 
Rodenticide Act.
      SR
      16. The Senate amendment, but not the House bill, amends 
section 112(f)(1) of the Kids 2000 Act
      SR
      LC: Add following provision.
      ``Sec. ----  . (a) Compensation.--Section 5314 of title 
5, United States Code, is amended by adding at the end thereof 
the following: ``Under Secretary of Education''.
      (b) Effective Date.--This Act shall take effect on the 
first day of the first pay period that begins on or after the 
date of enactment of this Act.''
                For consideration of the House bill and the 
                Senate amendment, and modifications committed 
                to conference:
                                   John Boehner,
                                   Thomas E. Petri,
                                   Marge Roukema,
                                   Howard ``Buck'' McKeon,
                                   Mike Castle,
                                   Lindsey Graham,
                                   Van Hilleary,
                                   Johnny Isakson,
                                   George Miller,
                                   Dale E. Kildee,
                                   Major R. Owens,
                                   Patsy T. Mink,
                                   Robert E. Andrews,
                                   Tim Roemer,
                                 Managers on the Part of the House.

                                   Edward Kennedy,
                                   Christopher Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Jeff Bingaman,
                                   Patty Murray,
                                   John Edwards,
                                   Hillary Rodham Clinton,
                                   Joseph Lieberman,
                                   Evan Bayh,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike Enzi,
                                   Tim Hutchinson,
                                   John Warner,
                                   Kit Bond,
                                   Pat Roberts,
                                   Susan Collins,
                                   Jeff Sessions,
                                   Mike DeWine,
                                   Wayne Allard,
                                   John Ensign,
                                Managers on the Part of the Senate.

                                  
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