    [107th Congress Public Law 110]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ110.107]

    [[Page 115 STAT. 1425]]

    Public Law 107-110
    107th Congress

                                     An Act

       To close the achievement gap with accountability, flexibility, and
     choice, so that no child is left behind. <<NOTE: Jan. 8, 2002 -  [H.R.
                                      1]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <<NOTE: No Child Left
    Behind Act of 2001. Education. Inter-governmental relations.>>

    SECTION 1. SHORT TITLE. <<NOTE: 20 USC 6301 note.>>

        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.
    Sec. 6. Table of contents of Elementary and Secondary Education Act of
               1965.

        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, Native Hawaiians, and Alaska Natives.
    Sec. 702. Conforming amendments.
    Sec. 703. Savings provisions.

                         TITLE VIII--IMPACT AID PROGRAM

    Sec. 801. Payments relating to Federal acquisition of real property.

    [[Page 115 STAT. 1426]]

    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. <<NOTE: 20 USC 6301 note.>>

        (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.

    [[Page 115 STAT. 1427]]

        (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. <<NOTE: 20 USC 6301 note.>>

        (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, <<NOTE: 20 USC 6301
            note.>>  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.

    [[Page 115 STAT. 1428]]

    ``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.

    [[Page 115 STAT. 1429]]

     ``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.

                       ``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.

    [[Page 115 STAT. 1430]]

    ``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.

    [[Page 115 STAT. 1431]]

                      ``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.

    [[Page 115 STAT. 1432]]

    ``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.

    [[Page 115 STAT. 1433]]

    ``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.

    [[Page 115 STAT. 1434]]

                        ``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.

    [[Page 115 STAT. 1435]]

       ``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.

    [[Page 115 STAT. 1436]]

    ``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. Termination.

       ``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 purpose.
    ``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.

    [[Page 115 STAT. 1437]]

                    ``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. orization 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.

    [[Page 115 STAT. 1438]]

    ``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--Aalaska 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.

    [[Page 115 STAT. 1439]]

    ``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. <<NOTE: 20 USC 6301.>>

        ``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,

    [[Page 115 STAT. 1440]]

            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. <<NOTE: 20 USC 6302.>>

        ``(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.--

    [[Page 115 STAT. 1441]]

                ``(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.

    [[Page 115 STAT. 1442]]

        ``(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. <<NOTE: 20 USC 6303.>>  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) <<NOTE: Public information. Records.>>  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.--

    [[Page 115 STAT. 1443]]

                ``(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 two 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

    [[Page 115 STAT. 1444]]

            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. <<NOTE: 20 USC 6304.>>

        ``(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. <<NOTE: 20 USC 6311.>>

        ``(a) Plans Required.--
                ``(1) In general.--For any State desiring to receive a grant
            under this part, the State educational agency shall submit to
            the Secretary a plan, developed by the State educational agency,
            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

    [[Page 115 STAT. 1445]]

                    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 two 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

    [[Page 115 STAT. 1446]]

                    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

    [[Page 115 STAT. 1447]]

                                                ``(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 (defined as the percentage of
                          students who graduate from secondary school with a
                          regular diploma in the standard number of years)
                          and at least one 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

    [[Page 115 STAT. 1448]]

                    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 2 years; and
                              ``(iii) provide for each following increase to
                          occur in not more than 3 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

    [[Page 115 STAT. 1449]]

                          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.
                        ``(K) Accountability for charter schools.--The
                    accountability provisions under this Act shall be
                    overseen for charter schools in accordance with State
                    charter school law.
                ``(3) Academic assessments.--
                        ``(A) In general.--Each State plan shall demonstrate
                    that the State educational agency, 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 educational
                    agency 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--

    [[Page 115 STAT. 1450]]

                              ``(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 educational
                          agency 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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1451]]

                                    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 three 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 two 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

    [[Page 115 STAT. 1452]]

                          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 6113(a)(2) 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

    [[Page 115 STAT. 1453]]

            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. <<NOTE: Deadline.>> --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 educational agency, 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

    [[Page 115 STAT. 1454]]

                    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 educational
                    agency 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 educational
            agency will coordinate and collaborate, to the extent feasible
            and necessary as determined by the State educational agency,
            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 educational agency 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) <<NOTE: Deadline.>>  the State educational agency 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 educational agency 1 additional year if
            the State 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 State, prevented full implementation of this paragraph by
            that deadline and that the State will complete implementation
            within the additional 1-year period;
                ``(2) <<NOTE: Deadline.>>  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;

    [[Page 115 STAT. 1455]]

                ``(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) <<NOTE: Notification.>>  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 educational agency will coordinate
            activities funded under this part with other Federal activities
            as appropriate; and

    [[Page 115 STAT. 1456]]

                ``(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 educational agency 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) <<NOTE: Establishment.>>  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) <<NOTE: Deadline.>>  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 plan shall be revised by the
            State educational agency if it is 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

    [[Page 115 STAT. 1457]]

                        ``(B) be periodically reviewed and revised as
                    necessary by the State educational agency to reflect
                    changes in the State's strategies and programs under
                    this part.
                ``(2) Additional information.--If significant changes are
            made to a State's 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, such information shall be submitted 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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1458]]

                          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)(C)(vi);
                              ``(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

    [[Page 115 STAT. 1459]]

                              ``(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) <<NOTE: Deadline.>>  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 educational
                          agency 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 educational
                          agency 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 educational
                    agency 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

    [[Page 115 STAT. 1460]]

                    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) <<NOTE: Deadline.>>  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) <<NOTE: Deadlines.>>  Annual state report to the
            secretary.--Each State educational agency 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;

    [[Page 115 STAT. 1461]]

                        ``(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) <<NOTE: Notification.>>  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 four 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

    [[Page 115 STAT. 1462]]

    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) <<NOTE: Applicability.>>  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. <<NOTE: 20 USC 6312.>>

        ``(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

    [[Page 115 STAT. 1463]]

                          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

    [[Page 115 STAT. 1464]]

                    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

    [[Page 115 STAT. 1465]]

                    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;

    [[Page 115 STAT. 1466]]

                        ``(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 end of the 2001-2002 school
                    year;
                        ``(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) <<NOTE: Procedures.>>  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

    [[Page 115 STAT. 1467]]

            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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1468]]

                          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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1469]]

            education program on the basis of a surname or language-minority
            status.

    ``SEC. 1113. <<NOTE: 20 USC 6313.>>  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).

    [[Page 115 STAT. 1470]]

                ``(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

    [[Page 115 STAT. 1471]]

            (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. <<NOTE: 20 USC 6314.>>  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

    [[Page 115 STAT. 1472]]

                              ``(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

    [[Page 115 STAT. 1473]]

                    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.

    [[Page 115 STAT. 1474]]

                        ``(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) <<NOTE: Records.>>  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

    [[Page 115 STAT. 1475]]

                                    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. <<NOTE: 20 USC 6315.>>

        ``(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.

    [[Page 115 STAT. 1476]]

                ``(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

    [[Page 115 STAT. 1477]]

                    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--

    [[Page 115 STAT. 1478]]

                        ``(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. <<NOTE: 20 USC 6316.>>  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

    [[Page 115 STAT. 1479]]

                    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

    [[Page 115 STAT. 1480]]

                    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) <<NOTE: Deadline. Public information.>>  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) <<NOTE: Deadline.>>  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--

    [[Page 115 STAT. 1481]]

                                        ``(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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 1482]]

                        ``(E) Local educational agency approval.--The local
                    educational agency, within 45 days of receiving a school
                    plan, shall--
                              ``(i) <<NOTE: Establishment.>>  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

    [[Page 115 STAT. 1483]]

            part that fails to make adequate yearly progress, as set out in
            the State's plan 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).

    [[Page 115 STAT. 1484]]

                        ``(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.

    [[Page 115 STAT. 1485]]

                        ``(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) <<NOTE: Deadline.>>  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 educational agency, 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

    [[Page 115 STAT. 1486]]

                          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

    [[Page 115 STAT. 1487]]

            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 two 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),

    [[Page 115 STAT. 1488]]

            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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1489]]

                          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) <<NOTE: Deadline.>>  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--

    [[Page 115 STAT. 1490]]

                              ``(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 one additional action described
                          under this subparagraph.

    [[Page 115 STAT. 1491]]

                        ``(D) <<NOTE: Notice. Deadline.>>  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) <<NOTE: Publication.>>  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 two consecutive school years
            beginning after the date of identification of the agency under
            paragraph (3), the State educational agency need no longer
            identify the local educational agency for improvement or 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;

    [[Page 115 STAT. 1492]]

                              ``(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) <<NOTE: Records.>>  maintain an updated list
                    of approved providers across the State, by school
                    district, from which parents may select;

    [[Page 115 STAT. 1493]]

                        ``(D) <<NOTE: Reports. Public information.>>
                    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) <<NOTE: Notice.>>  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.--

    [[Page 115 STAT. 1494]]

                        ``(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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1495]]

                          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 two 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) <<NOTE: Deadline.>>  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,

    [[Page 115 STAT. 1496]]

                          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 one 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. <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1497]]

                    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

    [[Page 115 STAT. 1498]]

    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. <<NOTE: 20 USC 6317.>>  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.

    [[Page 115 STAT. 1499]]

                        ``(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 one 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

    [[Page 115 STAT. 1500]]

                    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.

    [[Page 115 STAT. 1501]]

                        ``(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 in those
                    schools 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. <<NOTE: 20 USC 6318.>>

        ``(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

    [[Page 115 STAT. 1502]]

                    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). <<NOTE: Notification.>>  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. <<NOTE: Public information.>>  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

    [[Page 115 STAT. 1503]]

            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--

    [[Page 115 STAT. 1504]]

                        ``(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;

    [[Page 115 STAT. 1505]]

                ``(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. <<NOTE: 20 USC 6319.>>  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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1506]]

                    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) <<NOTE: Deadline.>>  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) <<NOTE: Deadlines.>>  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--

    [[Page 115 STAT. 1507]]

                              ``(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) <<NOTE: Deadline.>>  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 (c).

        ``(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

    [[Page 115 STAT. 1508]]

                    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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6320.>>  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.

    [[Page 115 STAT. 1509]]

                ``(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.

    [[Page 115 STAT. 1510]]

                ``(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

    [[Page 115 STAT. 1511]]

                              ``(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. <<NOTE: 20 USC 6321.>>

        ``(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

    [[Page 115 STAT. 1512]]

                    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. <<NOTE: 20 USC 6322.>>

        ``(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.

    [[Page 115 STAT. 1513]]

        ``(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. <<NOTE: 20 USC 6331.>>  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

    [[Page 115 STAT. 1514]]

            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

    [[Page 115 STAT. 1515]]

            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. <<NOTE: 20 USC 6332.>>

        ``(a) Allocation Formula.--Of the amount appropriated under section
    1002(a) to carry out this part for each of fiscal years 2002-2007
    (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

    [[Page 115 STAT. 1516]]

            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) <<NOTE: Applicability.>>  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. <<NOTE: 20 USC
                6333.>>

        ``(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

    [[Page 115 STAT. 1517]]

                    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) <<NOTE: Public information.>>  the two
                          Secretaries shall publicly disclose the reasons
                          for their determination in detail; and
                              ``(ii) <<NOTE: Applicability.>>  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) <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 1518]]

                        ``(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.--

    [[Page 115 STAT. 1519]]

                ``(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 two or more
            counties in their entirety, then each county will be treated as
            if such county were a separate local educational agency for
            purposes of calculating grants under this part. The total of
            grants for such counties shall be allocated to such a local
            educational agency, which local educational agency shall
            distribute to schools in each county within such agency a share
            of the local educational agency's total grant that is no less
            than the county's share of the population counts used to
            calculate the local educational agency's grant.
                ``(3) Population updates.--
                        ``(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) <<NOTE: Public information.>>  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,

    [[Page 115 STAT. 1520]]

                    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 four 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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1521]]

                ``(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. <<NOTE: 20 USC 6334.>>  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).

    [[Page 115 STAT. 1522]]

                ``(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. <<NOTE: 20 USC 6335.>>  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

    [[Page 115 STAT. 1523]]

            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 two 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 two amounts determined under subparagraphs
                    (B) and (C).

    [[Page 115 STAT. 1524]]

                        ``(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.

    [[Page 115 STAT. 1525]]

    ``SEC. <<NOTE: 20 USC 6336.>> 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) Fifty-eight percent of all schools receive at least
            some funding under this part, including many suburban schools
            with predominantly well-off students.
                ``(4) One 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. <<NOTE: 20 USC 6337.>> 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

    [[Page 115 STAT. 1526]]

                    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.--

    [[Page 115 STAT. 1527]]

                                        ``(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 one 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.

    [[Page 115 STAT. 1528]]

                ``(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 two 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

    [[Page 115 STAT. 1529]]

                          of the two 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 two 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

    [[Page 115 STAT. 1530]]

                                    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 two 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

    [[Page 115 STAT. 1531]]

                                    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 two 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

    [[Page 115 STAT. 1532]]

                                        ``(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 two 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;

    [[Page 115 STAT. 1533]]

                                        ``(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

    [[Page 115 STAT. 1534]]

                    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. <<NOTE: 20 USC 6338.>> 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 two or more local educational agencies serve, in
            whole or in part, the same geographical area;
                ``(2) if a local educational agency provides free public
            education for children who reside in the school district of
            another local educational agency; or
                ``(3) to reflect the merger, creation, or change of
            boundaries of one or more local educational agencies.

        ``(c) Reallocation.--If a State educational agency determines that
    the amount of a grant a local educational agency would receive under
    sections 1124, 1124A, 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. <<NOTE: 20 USC 6339.>> 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 one additional fiscal year.

    [[Page 115 STAT. 1535]]

        ``(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. <<NOTE: 20 USC 6361.>> 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. <<NOTE: 20 USC 6362.>> 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).

    [[Page 115 STAT. 1536]]

                ``(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 one-half 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 one-half 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 one-fourth
                          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

    [[Page 115 STAT. 1537]]

            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

    [[Page 115 STAT. 1538]]

                        ``(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

    [[Page 115 STAT. 1539]]

                          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 highly 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.

    [[Page 115 STAT. 1540]]

                ``(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) <<NOTE: Reports. Public
                          information. Internet.>> 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

    [[Page 115 STAT. 1541]]

            not more than 25 percent of the amount of the funds made
            available under paragraph (1) for one 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.

    [[Page 115 STAT. 1542]]

                                        ``(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) <<NOTE: Deadline.>> 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

    [[Page 115 STAT. 1543]]

            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. <<NOTE: 20 USC 6363.>> 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

    [[Page 115 STAT. 1544]]

                    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) three individuals selected by the
                          Secretary;
                              ``(ii) three individuals selected by the
                          National Institute for Literacy;
                              ``(iii) three individuals selected by the
                          National Research Council of the National Academy
                          of Sciences; and
                              ``(iv) three individuals selected by the
                          National Institute of Child Health and Human
                          Development.
                        ``(B) Experts.--The panel shall include--

    [[Page 115 STAT. 1545]]

                              ``(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
                    one 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;

    [[Page 115 STAT. 1546]]

                        ``(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. <<NOTE: 20 USC 6364.>> 1204. TARGETED ASSISTANCE GRANTS.

        ``(a) Eligibility Criteria for Awarding Targeted Assistance Grants
    to States.--Beginning <<NOTE: Effective date.>> 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,

    [[Page 115 STAT. 1547]]

            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--

    [[Page 115 STAT. 1548]]

                        ``(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. <<NOTE: 20 USC 6365.>> 1205. EXTERNAL EVALUATION.

        ``(a) <<NOTE: Contracts.>> 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. <<NOTE: 20 USC 6366.>> 1206. NATIONAL ACTIVITIES.

        ``From funds reserved under section 1202(b)(1)(C), the Secretary--

    [[Page 115 STAT. 1549]]

                ``(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. <<NOTE: 20 USC 6367.>> 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. <<NOTE: 20 USC 6368.>> 1208. DEFINITIONS.

        ``In this subpart:
                ``(1) Eligible local educational agency.--The term `eligible
            local educational agency' means a local educational agency
            that--

    [[Page 115 STAT. 1550]]

                        ``(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--

    [[Page 115 STAT. 1551]]

                              ``(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.

    [[Page 115 STAT. 1552]]

                        ``Subpart 2--Early Reading First

    ``SEC. <<NOTE: 20 USC 6371.>> 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 one
                    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 one 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 one
                    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.

    [[Page 115 STAT. 1553]]

    ``SEC. <<NOTE: 20 USC 6372.>> 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, three
    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:

    [[Page 115 STAT. 1554]]

                ``(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 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.
                ``(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. <<NOTE: 20 USC 6373.>> 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. <<NOTE: 20 USC 6374.>> 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. <<NOTE: 20 USC 6375.>> 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;

    [[Page 115 STAT. 1555]]

                ``(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. <<NOTE: 20 USC 6376.>> 1226. EVALUATION.

        ``(a) <<NOTE: Effective date. Termination date.>> 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) <<NOTE: Deadlines.>> 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. <<NOTE: 20 USC 6381.>> 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;

    [[Page 115 STAT. 1556]]

                        ``(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. <<NOTE: 20 USC 6381a.>> 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

    [[Page 115 STAT. 1557]]

                    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 one 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 one 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

    [[Page 115 STAT. 1558]]

            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 one-half 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. <<NOTE: 20 USC 6381b.>> 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--

    [[Page 115 STAT. 1559]]

                ``(1) administration, which amount shall not exceed half of
            the total;
                ``(2) providing, through one 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 one 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. <<NOTE: 20 USC 6381c.>> 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.

    [[Page 115 STAT. 1560]]

                ``(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. <<NOTE: 20 USC 6381d.>> 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

    [[Page 115 STAT. 1561]]

            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) <<NOTE: Deadline.>> 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;

    [[Page 115 STAT. 1562]]

                ``(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. <<NOTE: 20 USC 6381e.>> 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.

    [[Page 115 STAT. 1563]]

                ``(2) Special rule.--Any family participating in a program
            assisted under this subpart that becomes ineligible to
            participate as a result of one 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. <<NOTE: 20 USC 6381f.>> 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

    [[Page 115 STAT. 1564]]

                    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) may be submitted as part of a consolidated application under
    section 9305.

    ``SEC. <<NOTE: 20 USC 6381g.>> 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;

    [[Page 115 STAT. 1565]]

                        ``(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 three members, including one early childhood professional,
            one adult education professional, and one individual with
            expertise in family literacy programs, and may include other
            individuals, such as one 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

    [[Page 115 STAT. 1566]]

                        ``(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. <<NOTE: 20 USC 6381h.>> 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. <<NOTE: 20 USC 6381i.>> 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. <<NOTE: 20 USC 6381j.>> 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--

    [[Page 115 STAT. 1567]]

                ``(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. <<NOTE: 20 USC 6381k.>> 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. <<NOTE: 20 USC 6383.>> 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) one-half 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) one-half 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

    [[Page 115 STAT. 1568]]

            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

    [[Page 115 STAT. 1569]]

            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;

    [[Page 115 STAT. 1570]]

                        ``(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

    [[Page 115 STAT. 1571]]

            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. <<NOTE: 20 USC 6391.>> 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. <<NOTE: 20 USC 6392.>> 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. <<NOTE: 20 USC 6393.>> 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

    [[Page 115 STAT. 1572]]

                    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

    [[Page 115 STAT. 1573]]

                        ``(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

    [[Page 115 STAT. 1574]]

                        ``(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. <<NOTE: 20 USC 6394.>> 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,

    [[Page 115 STAT. 1575]]

            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;

    [[Page 115 STAT. 1576]]

                        ``(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. <<NOTE: 20 USC 6395.>> 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. <<NOTE: 20 USC 6396.>> 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 a 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

    [[Page 115 STAT. 1577]]

                              ``(iii) the comprehensive State plan 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.

    [[Page 115 STAT. 1578]]

    ``SEC. <<NOTE: 20 USC 6397.>> 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. <<NOTE: 20 USC 6398.>> 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) <<NOTE: Federal Register,
                    publication.>> 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

    [[Page 115 STAT. 1579]]

                    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. <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 6399.>> 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.

    [[Page 115 STAT. 1580]]

                ``(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. <<NOTE: 20 USC 6421.>> 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. <<NOTE: 20 USC 6422.>> 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.

    [[Page 115 STAT. 1581]]

                       ``Subpart 1--State Agency Programs

    ``SEC. <<NOTE: 20 USC 6431.>> 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. <<NOTE: 20 USC 6432.>> 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--

    [[Page 115 STAT. 1582]]

                        ``(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. <<NOTE: 20 USC 6433.>> 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. <<NOTE: 20 USC 6434.>> 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;

    [[Page 115 STAT. 1583]]

                              ``(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

    [[Page 115 STAT. 1584]]

            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.

    [[Page 115 STAT. 1585]]

    ``SEC. <<NOTE: 20 USC 6435.>> 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 andskills 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. <<NOTE: 20 USC 6436.>> 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

    [[Page 115 STAT. 1586]]

            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. <<NOTE: 20 USC 6437.>> 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. <<NOTE: 20 USC 6438.>> 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--

    [[Page 115 STAT. 1587]]

                              ``(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. <<NOTE: 20 USC 6439.>> 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. <<NOTE: 20 USC 6451.>> 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. <<NOTE: 20 USC 6452.>> 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

    [[Page 115 STAT. 1588]]

    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. <<NOTE: 20 USC 6453.>> 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;

    [[Page 115 STAT. 1589]]

                ``(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. <<NOTE: 20 USC 6454.>> 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. <<NOTE: 20 USC 6455.>> 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--

    [[Page 115 STAT. 1590]]

                ``(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. <<NOTE: 20 USC 6456.>> 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

    [[Page 115 STAT. 1591]]

            or its recognized equivalent, or obtaining employment after such
            children and youth are released.

                         ``Subpart 3--General Provisions

    ``SEC. <<NOTE: 20 USC 6471.>> 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. <<NOTE: 20 USC 6472.>> 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

    [[Page 115 STAT. 1592]]

            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. <<NOTE: 20 USC 6491.>> 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
                          State;

    [[Page 115 STAT. 1593]]

                              ``(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(h)(2) 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) <<NOTE: Deadline.>> 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

    [[Page 115 STAT. 1594]]

                          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 educational
                          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
                          educational 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) <<NOTE: Deadline.>> Interim report.--Not later
                    than 3 years after the date of enactment of the No Child
                    Left Behind Act

    [[Page 115 STAT. 1595]]

                    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) <<NOTE: Deadline.>> 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

    [[Page 115 STAT. 1596]]

                    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) <<NOTE: Establishment.>> 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 one-fourth 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--

    [[Page 115 STAT. 1597]]

                              ``(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 two
                          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. <<NOTE: 20 USC 6492.>> 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. <<NOTE: 20 USC 6493.>> 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,

    [[Page 115 STAT. 1598]]

            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;
                ``(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) <<NOTE: Deadline. Public information.>> Reporting.--Not later
    than 3 years after the contract described in subsection (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, 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. <<NOTE: 20 USC 6494.>> 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

    [[Page 115 STAT. 1599]]

                    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.

    [[Page 115 STAT. 1600]]

                        ``(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 one student from such
                          teacher's school who participates in a program
                          described in subsection (a)(1)(A);
                              ``(ii) no teacher shall receive more than one
                          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;

    [[Page 115 STAT. 1601]]

                              ``(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. <<NOTE: 20 USC 6511.>> 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. <<NOTE: 20 USC 6512.>> 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--

    [[Page 115 STAT. 1602]]

                              ``(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. <<NOTE: 20 USC 6513.>> 1603. STATE APPLICATIONS.

        ``(a) In General.--Each State educational agency that desires to
    receive a grant under this part shall submit an application to the
    Secretary at such time, in such manner, and containing such information
    as the Secretary may reasonably require.
        ``(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 part;
                ``(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

    [[Page 115 STAT. 1603]]

                ``(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. <<NOTE: 20 USC 6514.>> 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 two 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

    [[Page 115 STAT. 1604]]

    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. <<NOTE: 20 USC 6515.>> 1605. LOCAL APPLICATIONS.

        ``(a) In General.--Each local educational agency or consortium of
    local educational agencies desiring a subgrant under this part 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. <<NOTE: 20 USC 6516.>> 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;

    [[Page 115 STAT. 1605]]

                ``(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. <<NOTE: 20 USC 6517.>> 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. <<NOTE: 20 USC 6518.>> 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

    [[Page 115 STAT. 1606]]

            for comprehensive school reform providers to expand their work
            in more schools, assure quality, and promote financial
            stability.

      ``PART <<NOTE: Access to High Standards Act.>> G--ADVANCED PLACEMENT
    PROGRAMS

    ``SEC. <<NOTE: 20 USC 6531.>> 1701. SHORT TITLE.

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

    ``SEC. <<NOTE: 20 USC 6532.>> 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. <<NOTE: 20 USC 6533.>> 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. <<NOTE: 20 USC 6534.>> 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

        ``(a) Grants Authorized.--From amounts made available under section
    1703 for a fiscal year, the Secretary shall award

    [[Page 115 STAT. 1607]]

    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) <<NOTE: Records.>> 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.

    [[Page 115 STAT. 1608]]

    ``SEC. <<NOTE: 20 USC 6535.>> 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

    [[Page 115 STAT. 1609]]

                        ``(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) <<NOTE: Records.>> 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. <<NOTE: 20 USC 6536.>> 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. <<NOTE: 20 USC 6537.>> 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,

    [[Page 115 STAT. 1610]]

            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 <<NOTE: Dropout Prevention Act.>> H--SCHOOL DROPOUT PREVENTION

    ``SEC. <<NOTE: 20 USC 6551.>> 1801. SHORT TITLE.

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

    ``SEC. <<NOTE: 20 USC 6552.>> 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. <<NOTE: 20 USC 6553.>> 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. <<NOTE: 20 USC 6555.>> 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;

    [[Page 115 STAT. 1611]]

                ``(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
            one 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.--

    [[Page 115 STAT. 1612]]

                        ``(A) Number.--The Secretary may award not more than
                    five 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. <<NOTE: 20 USC 6561.>> 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. <<NOTE: 20 USC 6561a.>> 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

    [[Page 115 STAT. 1613]]

                                                ``(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

    [[Page 115 STAT. 1614]]

                        ``(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. <<NOTE: 20 USC 6561b.>> 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

    [[Page 115 STAT. 1615]]

                    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. <<NOTE: 20 USC 6561c.>> 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. <<NOTE: 20 USC 6561d.>> 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

    [[Page 115 STAT. 1616]]

                ``(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. <<NOTE: 20 USC 6561e.>> 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. <<NOTE: 20 USC 6561f.>> 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. <<NOTE: 20 USC 6561g.>> 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. <<NOTE: 20 USC 6561h.>> 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. <<NOTE: 20 USC 6561i.>> 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

    [[Page 115 STAT. 1617]]

                        ``(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. <<NOTE: 20 USC 6571.>> 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) <<NOTE: Federal Register, publication.>> 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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> shall be conducted in a
                    timely manner to ensure that final regulations are
                    issued by the Secretary not later

    [[Page 115 STAT. 1618]]

                    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. <<NOTE: 20 USC 6572.>> 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. <<NOTE: 20 USC 6573.>> 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.

    [[Page 115 STAT. 1619]]

                ``(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. <<NOTE: 20 USC 6574.>> 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) <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 6575.>> 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. <<NOTE: 20 USC 6576.>> 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. <<NOTE: 20 USC 6577.>> 1907. STATE REPORT ON DROPOUT DATA.

        ``Not <<NOTE: Deadline.>> later than 1 year after a State
    educational agency receives funds under this title, the agency shall
    report to the Secretary

    [[Page 115 STAT. 1620]]

    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. <<NOTE: 20 USC 6578.>> 1908. REGULATIONS FOR SECTIONS 1111 AND
                1116.

        ``The <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 6601.>> 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. <<NOTE: 20 USC 6602.>> 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.

    [[Page 115 STAT. 1621]]

                ``(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. <<NOTE: 20 USC 6603.>> 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. <<NOTE: 20 USC 6611.>> 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) one-half 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

    [[Page 115 STAT. 1622]]

                              ``(ii) one-half 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
                          one-half 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.

    [[Page 115 STAT. 1623]]

    ``SEC. <<NOTE: 20 USC 6612.>> 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

    [[Page 115 STAT. 1624]]

            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.

    [[Page 115 STAT. 1625]]

    ``SEC. 2113. STATE USE OF FUNDS. <<NOTE: 20 USC 6613.>>

        ``(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,

    [[Page 115 STAT. 1626]]

            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.

    [[Page 115 STAT. 1627]]

                ``(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. <<NOTE: 20 USC
                6621.>>

        ``(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.--

    [[Page 115 STAT. 1628]]

                        ``(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. <<NOTE: 20 USC
                6622.>>

        ``(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.

    [[Page 115 STAT. 1629]]

        ``(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;

    [[Page 115 STAT. 1630]]

                        ``(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. <<NOTE: 20 USC 6623.>>

        ``(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

    [[Page 115 STAT. 1631]]

                              ``(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,

    [[Page 115 STAT. 1632]]

                          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.

    [[Page 115 STAT. 1633]]

        ``(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. <<NOTE: 20 USC 6631.>>

        ``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. <<NOTE: 20 USC 6632.>>

        ``(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. <<NOTE: 20 USC 6633.>>

        ``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. <<NOTE: 20 USC 6634.>>

        ``(a) In General.--An eligible partnership that receives a subgrant
    under section 2132 shall use the subgrant funds for--

    [[Page 115 STAT. 1634]]

                ``(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. <<NOTE: 20 USC
                6641.>>

        ``(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

    [[Page 115 STAT. 1635]]

            to enable the local educational agency to meet the annual
            measurable objectives described in section 1119(a)(2).

        ``(c) <<NOTE: Contracts.>> 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. <<NOTE: 20 USC 6651.>>

        ``(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

    [[Page 115 STAT. 1636]]

    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;

    [[Page 115 STAT. 1637]]

                        ``(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

    [[Page 115 STAT. 1638]]

                    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

    [[Page 115 STAT. 1639]]

                                        ``(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;

    [[Page 115 STAT. 1640]]

                              ``(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.

    [[Page 115 STAT. 1641]]

                ``(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.

    [[Page 115 STAT. 1642]]

                              ``(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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6661.>>

        ``(a) Purpose.--The purpose of this part is to improve the academic
    achievement of students in the areas of mathematics

    [[Page 115 STAT. 1643]]

    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

    [[Page 115 STAT. 1644]]

                        ``(C) provides for followup training during the
                    academic year that is conducted in the classroom for a
                    period of not less than three 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. <<NOTE: 20
                USC 6662.>>

        ``(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 one-half 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--

    [[Page 115 STAT. 1645]]

                        ``(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

    [[Page 115 STAT. 1646]]

                          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.

    [[Page 115 STAT. 1647]]

                ``(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. <<NOTE: 20 USC 6663.>>

        ``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.

    [[Page 115 STAT. 1648]]

                    ``PART C--INNOVATION FOR TEACHER QUALITY

                      ``Subpart 1--Transitions to Teaching

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

    ``SEC. 2301. DEFINITIONS. <<NOTE: 20 USC 6671.>>

        ``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. <<NOTE: 20 USC
                6672.>>

        ``(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

    [[Page 115 STAT. 1649]]

                              ``(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) <<NOTE: Memorandum.>>  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. <<NOTE: 20 USC 6673.>> 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--

    [[Page 115 STAT. 1650]]

                        ``(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--
                              ave 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

    [[Page 115 STAT. 1651]]

            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. <<NOTE: 20 USC 6674.>>

        ``(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.

    [[Page 115 STAT. 1652]]

                ``(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

    [[Page 115 STAT. 1653]]

                    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

    [[Page 115 STAT. 1654]]

    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. <<NOTE: 20 USC 6675.>>

        ``(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. <<NOTE: 20 USC 6676.>> 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 agency 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

    [[Page 115 STAT. 1655]]

            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. <<NOTE: 20 USC 6677.>>

        ``(a) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6681.>>

        ``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

    [[Page 115 STAT. 1656]]

            factors in lieu of traditional course work in the field of
            education.

    ``SEC. 2312. DEFINITIONS. <<NOTE: 20 USC 6682.>>

        ``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. <<NOTE: 20 USC 6683.>>

        ``(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.

    [[Page 115 STAT. 1657]]

        ``(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

    [[Page 115 STAT. 1658]]

            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

    [[Page 115 STAT. 1659]]

            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) <<NOTE: Requirements.>>  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. <<NOTE: 20 USC 6684.>> 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.

    [[Page 115 STAT. 1660]]

                         ``CHAPTER C--GENERAL PROVISIONS

    ``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6691.>>

        ``(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. <<NOTE: 20 USC 6701.>>

        ``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. <<NOTE: 20 USC 6702.>>

        ``(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;

    [[Page 115 STAT. 1661]]

                ``(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.--

    [[Page 115 STAT. 1662]]

                ``(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 <<NOTE: Education for Democracy Act.>>

    ``SEC. 2341. SHORT TITLE. <<NOTE: 20 USC 6711.>>

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

    ``SEC. 2342. PURPOSE. <<NOTE: 20 USC 6712.>>

        ``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. <<NOTE: 20 USC 6713.>>

        ``(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

    [[Page 115 STAT. 1663]]

                        ``(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. <<NOTE: 20 USC 6714.>>

        ``(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;

    [[Page 115 STAT. 1664]]

                              ``(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. <<NOTE: 20 USC 6715.>> 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

    [[Page 115 STAT. 1665]]

            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--

    [[Page 115 STAT. 1666]]

                              ``(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. <<NOTE: 20 USC 6716.>>

        ``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. <<NOTE: 20 USC 6721.>>

        ``(a) In General.--The Secretary may establish and implement a
    program to be known as the `Teaching American History Grant

    [[Page 115 STAT. 1667]]

    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. <<NOTE: 20 USC 6722.>>

        ``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 <<NOTE: Paul D. Coverdell
    Teacher Protection Act of 2001.>>

    ``SEC. 2361. SHORT TITLE. <<NOTE: 20 USC 6731.>>

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

    ``SEC. 2362. PURPOSE. <<NOTE: 20 USC 6732.>>

        ``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. <<NOTE: 20 USC 6733.>>

        ``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

    [[Page 115 STAT. 1668]]

            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. <<NOTE: 20 USC 6734.>>

        ``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. <<NOTE: 20 USC 6735.>> 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. <<NOTE: 20 USC
                6736.>>

        ``(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,

    [[Page 115 STAT. 1669]]

            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.
                ate 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 entityunless 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;

    [[Page 115 STAT. 1670]]

                        ``(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. <<NOTE: 20 USC 6737.>> 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. <<NOTE: 20 USC 6738.>>

        ``(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

    [[Page 115 STAT. 1671]]

    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 <<NOTE: Enhancing Education Through Technology Act of 2001.>>
    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.

    [[Page 115 STAT. 1672]]

                ``(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. <<NOTE: 20 USC 6753.>>

        ``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

    [[Page 115 STAT. 1673]]

                        ``(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. <<NOTE: 20 USC 6754.>>

        ``(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. <<NOTE: 20 USC 6761.>>

        ``(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) three-fourths 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) one-half 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 one-half of 1 percent of the amount made available for
    allotments to States under this part for such year.

    [[Page 115 STAT. 1674]]

        ``(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. <<NOTE: 20 USC 6762.>>

        ``(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.

    [[Page 115 STAT. 1675]]

                ``(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. <<NOTE: 20 USC 6763.>>

        ``(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

    [[Page 115 STAT. 1676]]

            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) <<NOTE: Notice.>>  Disapproval.--The Secretary shall not
    finally disapprove the application, except after giving the State
    educational agency notice and an opportunity for a hearing.

    [[Page 115 STAT. 1677]]

        ``(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. <<NOTE: 20 USC 6764.>>

        ``(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

    [[Page 115 STAT. 1678]]

            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

    [[Page 115 STAT. 1679]]

            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. <<NOTE: 20 USC 6765.>>

        ``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--

    [[Page 115 STAT. 1680]]

                        ``(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. <<NOTE: 20 USC 6766.>>

        ``(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

    [[Page 115 STAT. 1681]]

            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.

    [[Page 115 STAT. 1682]]

                ``(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. <<NOTE: 20 USC 6771.>>

        ``(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) <<NOTE: Establishment.>> 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) <<NOTE: Reports. Deadline.>> 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) <<NOTE: Internet.>>  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. <<NOTE: 20 USC 6772.>>

        ``(a) <<NOTE: Publication. Public information.>>  In General.--Based
    on the Nation's progress and an assessment by the Secretary of the
    continuing and future needs

    [[Page 115 STAT. 1683]]

    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. <<NOTE: 20 USC 6775.>>

        ``(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

    [[Page 115 STAT. 1684]]

                    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.

    [[Page 115 STAT. 1685]]

        ``(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).

    [[Page 115 STAT. 1686]]

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

    ``SEC. 2441. INTERNET SAFETY. <<NOTE: 20 USC 6777.>>

        ``(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) <<NOTE: Certification.>>  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

    [[Page 115 STAT. 1687]]

                                    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. <<NOTE: Notification.>>  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

    [[Page 115 STAT. 1688]]

            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. <<NOTE: 20 USC 6301 note.>>

        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

    [[Page 115 STAT. 1689]]

                (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. <<NOTE: 20 USC 6801.>> 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.

    [[Page 115 STAT. 1690]]

     ``PART <<NOTE: English Language Acquisition, Language Enhancement, and
     Academic Achievement Act. Children, youth and families. Grants. 20 USC
      6811.>>  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. <<NOTE: 20 USC 6812.>>

        ``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

    [[Page 115 STAT. 1691]]

                        ``(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. <<NOTE: 20 USC 6821.>>

        ``(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

    [[Page 115 STAT. 1692]]

                          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.--

    [[Page 115 STAT. 1693]]

                        ``(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.

    [[Page 115 STAT. 1694]]

                              ``(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. <<NOTE: 20 USC 6822.>> 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. <<NOTE: 20 USC
                6823.>>

        ``(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 four recognized domains of speaking, listening,

    [[Page 115 STAT. 1695]]

            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--

    [[Page 115 STAT. 1696]]

                        ``(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. <<NOTE: 20 USC 6824.>>

        ``(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.

    [[Page 115 STAT. 1697]]

        ``(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. <<NOTE: 20 USC 6825.>>

        ``(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.

    [[Page 115 STAT. 1698]]

        ``(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.

    [[Page 115 STAT. 1699]]

                ``(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.--

    [[Page 115 STAT. 1700]]

                ``(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. <<NOTE: 20 USC 6826.>>

        ``(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.

    [[Page 115 STAT. 1701]]

        ``(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. <<NOTE: 20 USC 6841.>>

        ``(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 two
            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

    [[Page 115 STAT. 1702]]

            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. <<NOTE: 20 USC
                6842.>>

        ``(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--

    [[Page 115 STAT. 1703]]

                        ``(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

    [[Page 115 STAT. 1704]]

                    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. <<NOTE: 20 USC 6843.>>

        ``(a) <<NOTE: Deadline.>>  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);

    [[Page 115 STAT. 1705]]

                ``(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. <<NOTE: 20 USC 6844.>>

        ``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. <<NOTE: 20 USC 6845.>>

        ``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. <<NOTE: 20 USC 6846.>>

        ``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. <<NOTE: 20 USC 6847.>>

        ``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. <<NOTE: 20
                USC 6848.>>

        ``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

    [[Page 115 STAT. 1706]]

    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. <<NOTE: 20 USC 6849.>>

        ``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. <<NOTE: 20 USC
                6861.>>

        ``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. <<NOTE: 20 USC 6871.>>

        ``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 <<NOTE: Improving Language Instruction Educational Programs For
         Academic Achievement Act. Children, youth and families. Native
      Americans. Grants 20 USC 6891.>>  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'.

    [[Page 115 STAT. 1707]]

    ``SEC. 3202. PURPOSE. <<NOTE: 20 USC 6892.>>

        ``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. <<NOTE: 20 USC 6893.>>

        ``(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. <<NOTE: 20 USC 6894.>> 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. <<NOTE: 20 USC 6911.>> 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--

    [[Page 115 STAT. 1708]]

                ``(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. <<NOTE: 20 USC 6912.>>

        ``(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;

    [[Page 115 STAT. 1709]]

                              ``(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. <<NOTE: 20 USC 6913.>> 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,

    [[Page 115 STAT. 1710]]

            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

    [[Page 115 STAT. 1711]]

                    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 one-third of the remainder shall
                    be used to award grants to eligible entities for
                    activities carried out within an entire school district;
                    and

    [[Page 115 STAT. 1712]]

                        ``(B) not less than two-thirds 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. <<NOTE: 20 USC 6914.>>

        ``(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) <<NOTE: Records.>>  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.

    [[Page 115 STAT. 1713]]

        ``(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--

    [[Page 115 STAT. 1714]]

                              ``(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--

    [[Page 115 STAT. 1715]]

                              ``(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

    [[Page 115 STAT. 1716]]

                ``(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. <<NOTE: 20 USC 6915.>>

        ``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. <<NOTE: 20 USC 6916.>> 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. <<NOTE: 20 USC 6917.>>

        ``(a) <<NOTE: Reports.>>  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

    [[Page 115 STAT. 1717]]

            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;
                lude 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. <<NOTE: 20 USC 6918.>>

        ``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. <<NOTE: 20 USC 6931.>>

        ``(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. <<NOTE: 20 USC 6932.>>

        ``(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--

    [[Page 115 STAT. 1718]]

                ``(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 two 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. <<NOTE: 20 USC 6933.>>

        ``(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

    [[Page 115 STAT. 1719]]

            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. <<NOTE: 20 USC 6934.>>

        ``(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

    [[Page 115 STAT. 1720]]

    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. <<NOTE: 20 USC 6935.>>

        ``(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. <<NOTE: 20 USC 6951.>>

        ``(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.--

    [[Page 115 STAT. 1721]]

                ``(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

    [[Page 115 STAT. 1722]]

            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

    [[Page 115 STAT. 1723]]

            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. <<NOTE: 20 USC 6961.>>

        ``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. <<NOTE: 20 USC 6962.>>

        ``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.

    [[Page 115 STAT. 1724]]

    ``SEC. 3243. WITHHOLDING. <<NOTE: 20 USC 6963.>>

        ``Whenever the <<NOTE: Notification.>> 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. <<NOTE: 20 USC 6964.>>

        ``(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

    [[Page 115 STAT. 1725]]

            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. <<NOTE: 20 USC 6965.>>  STATE APPLICATIONS.

        ``(a) Submission.--No State educational agency shall receive any
    payment under this subpart for any fiscal year unless such

    [[Page 115 STAT. 1726]]

    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

    [[Page 115 STAT. 1727]]

                    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. <<NOTE: 20 USC 6966.>>  ADMINISTRATIVE PROVISIONS.

        ``(a) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6967.>>  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;

    [[Page 115 STAT. 1728]]

                ``(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. <<NOTE: 20 USC 6968.>>  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. <<NOTE: 20 USC 6981.>>  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. <<NOTE: 20 USC 6982.>>  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. <<NOTE: 20 USC 6983.>>  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

    [[Page 115 STAT. 1729]]

    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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7011.>>  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.

    [[Page 115 STAT. 1730]]

            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

    [[Page 115 STAT. 1731]]

                    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).

    [[Page 115 STAT. 1732]]

    ``SEC. 3302. <<NOTE: 20 USC 7012.>>  PARENTAL NOTIFICATION.

        ``(a) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1733]]

    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. <<NOTE: Establishment. 20 USC 7013.>>  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

    [[Page 115 STAT. 1734]]

                ``(5) <<NOTE: Publication.>>  publish, on an annual basis, a
            list of grant recipients under this title.

    ``SEC. 3304. <<NOTE: 20 USC 7014.>>  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 <<NOTE: Safe and Drug-Free Schools and Communities
    Act. Grants.>>  A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

    ``SEC. 4001. <<NOTE: 20 USC 7101.>>  SHORT TITLE.

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

    ``SEC. 4002. <<NOTE: 20 USC 7102.>>  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. <<NOTE: 20 USC 7103.>>  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

    [[Page 115 STAT. 1735]]

                ``(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. <<NOTE: 20 USC 7111.>>  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) one-half of the remainder not reserved under
                    subsection (a) according to the ratio between the
                    school-aged population of each State and the school-aged
                    population of all the States; and
                        ``(B) one-half of such remainder according to the
                    ratio between the amount each State received under
                    section 1124A for the preceding year and the sum of such
                    amounts received by all the States.
                ``(2) Minimum.--For any fiscal year, no State shall be
            allotted under this subsection an amount that is less than the
            greater of--
                        ``(A) one-half 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.--

    [[Page 115 STAT. 1736]]

                        ``(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) Definition.--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. <<NOTE: 20 USC 7112.>>  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

    [[Page 115 STAT. 1737]]

            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

    [[Page 115 STAT. 1738]]

            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.

    [[Page 115 STAT. 1739]]

                        ``(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. <<NOTE: 20 USC 7113.>>  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

    [[Page 115 STAT. 1740]]

            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;

    [[Page 115 STAT. 1741]]

                ``(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

    [[Page 115 STAT. 1742]]

                        ``(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. <<NOTE: 20 USC 7114.>>  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 this subsection, 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

    [[Page 115 STAT. 1743]]

    submit an application to the State educational agency in accordance with
    subsection (d). Such an application shall be amended, as necessary, to
    reflect changesin 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;

    [[Page 115 STAT. 1744]]

                        ``(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

    [[Page 115 STAT. 1745]]

            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. <<NOTE: 20 USC 7115.>>  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

    [[Page 115 STAT. 1746]]

                    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) <<NOTE: Public information.>>  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

    [[Page 115 STAT. 1747]]

                          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

    [[Page 115 STAT. 1748]]

                          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

    [[Page 115 STAT. 1749]]

                          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

    [[Page 115 STAT. 1750]]

            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. <<NOTE: 20 USC 7116.>>  REPORTING.

        ``(a) State Report.--
                ``(1) In <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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 educational agency all of the necessary documentation
            required for compliance with this section.

    ``SEC. 4117. <<NOTE: 20 USC 7117.>>  PROGRAMS FOR NATIVE HAWAIIANS.

        ``(a) <<NOTE: Contracts.>>  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

    [[Page 115 STAT. 1751]]

    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. <<NOTE: 20 USC 7131.>>  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

    [[Page 115 STAT. 1752]]

            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. <<NOTE: 20 USC 7132.>>  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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7133.>>  HATE CRIME PREVENTION.

        ``(a) Grant Authorization.--From funds made available to carry out
    this subpart under section 4003(2) the Secretary may

    [[Page 115 STAT. 1753]]

    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.

    [[Page 115 STAT. 1754]]

                ``(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. <<NOTE: 20 USC 7134.>>  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

    [[Page 115 STAT. 1755]]

            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. <<NOTE: 20 USC 7135.>>  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

    [[Page 115 STAT. 1756]]

    crime problems at their schools, and administering the safe and drug-
    free grant program at such schools.

    ``SEC. 4126. <<NOTE: 20 USC 7136.>>  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) one-half according to the ratio between the school-
            aged population of each State and the school-aged population of
            all the States; and
                ``(2) one-half 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 one-half 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. <<NOTE: Establishment. 20 USC 7137.>>  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' (hereafter 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. <<NOTE: Publication. Reports.>>  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. <<NOTE: 20 USC 7138.>>  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

    [[Page 115 STAT. 1757]]

    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. <<NOTE: 20 USC 7139.>>  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,

    [[Page 115 STAT. 1758]]

    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 one 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 out
            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) <<NOTE: Procedures.>>  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. <<NOTE: 20 USC 7140.>>  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.

    [[Page 115 STAT. 1759]]

                        ``(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 one 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.--

    [[Page 115 STAT. 1760]]

                        ``(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

    [[Page 115 STAT. 1761]]

                    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

    [[Page 115 STAT. 1762]]

                              ``(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 one 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 <<NOTE: Gun-Free Schools Act.>>  Possession

    ``SEC. <<NOTE: 20 USC 7151.>>  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
            any title of this Act shall have in effect a State law requiring
            local educational agencies to expel from school for a period of
            not less than 1 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 any title of this Act shall
    provide to the State, in the application requesting such assistance--
                ``(1) an assurance that such local educational agency is in
            compliance with the State law required by subsection (b); and

    [[Page 115 STAT. 1763]]

                ``(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
            any title of this Act to any local educational agency unless
            such agency has a policy requiring referral to the criminal
            justice or juvenile delinquency system of any student who brings
            a firearm or weapon to a school served by such agency.
                ``(2) Definition.--For the purpose of this subsection, the
            term `school' has the same meaning given to such term by section
            921(a) of title 18, United States Code.

                         ``Subpart 4--General Provisions

    ``SEC. 4151. <<NOTE: 20 USC 7161.>>  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.

    [[Page 115 STAT. 1764]]

                ``(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. <<NOTE: 20 USC 7162.>>  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.

    [[Page 115 STAT. 1765]]

    ``SEC. 4153. <<NOTE: 20 USC 7163.>>  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. <<NOTE: 20 USC 7164.>>  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. <<NOTE: 20 USC 7165.>>  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) <<NOTE: Deadline. Procedures.>>  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. <<NOTE: 20 USC 7171.>>  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:

    [[Page 115 STAT. 1766]]

                ``(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 two 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. <<NOTE: 20 USC 7172.>>  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

    [[Page 115 STAT. 1767]]

            no State shall receive less than an amount equal to one-half 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
                        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. <<NOTE: 20 USC 7173.>>  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

    [[Page 115 STAT. 1768]]

                              ``(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--

    [[Page 115 STAT. 1769]]

                        ``(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. <<NOTE: 20 USC 7174.>>  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.

    [[Page 115 STAT. 1770]]

                ``(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

    [[Page 115 STAT. 1771]]

                    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.

    [[Page 115 STAT. 1772]]

                ``(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. <<NOTE: 20 USC 7175.>>  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.

    [[Page 115 STAT. 1773]]

                        ``(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) <<NOTE: Public information. Notice.>>
                          made available to the public upon request, with
                          public notice of such availability provided.

    ``SEC. 4206. <<NOTE: 20 USC 7176.>>  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 <<NOTE: Pro-Children Act of 2001.>>  TOBACCO
    SMOKE

    ``SEC. 4301. <<NOTE: 20 USC 7181.>>  SHORT TITLE.

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

    ``SEC. 4302. <<NOTE: 20 USC 7182.>>  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.

    [[Page 115 STAT. 1774]]

                ``(5) Secretary.--The term `Secretary' means the Secretary
            of Health and Human Services.

    ``SEC. 4303. <<NOTE: 20 USC 7183.>>  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) <<NOTE: Federal Register, publication.>>  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.

    [[Page 115 STAT. 1775]]

        ``(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 50 percent of the amount of Federal funds received under
            any title of this Act 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. <<NOTE: Notice. Deadline.>>
            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

    [[Page 115 STAT. 1776]]

            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. <<NOTE: Records.>>
            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. <<NOTE: 20 USC 7184.>>  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. <<NOTE: 20 USC 7201.>>  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.

    [[Page 115 STAT. 1777]]

                ``(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. <<NOTE: 20 USC 7211.>>  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 one-half 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. <<NOTE: 20 USC 7211a.>>  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

    [[Page 115 STAT. 1778]]

            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

    [[Page 115 STAT. 1779]]

                    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. <<NOTE: 20 USC 7213.>>  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.

    [[Page 115 STAT. 1780]]

                ``(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. <<NOTE: 20 USC 7213a.>>  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.

    [[Page 115 STAT. 1781]]

                ``Subpart 3--Local Innovative Education Programs

    ``SEC. 5131. <<NOTE: 20 USC 7215.>>  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).

    [[Page 115 STAT. 1782]]

                ``(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) <<NOTE: Deadline.>>  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).

    [[Page 115 STAT. 1783]]

    ``SEC. 5132. <<NOTE: 20 USC 7215a.>>  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. <<NOTE: 20 USC 7215b.>>  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

    [[Page 115 STAT. 1784]]

                    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).

        ``(c) 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.
        ``(d) 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. <<NOTE: 20 USC 7217.>>  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.

    [[Page 115 STAT. 1785]]

    ``SEC. 5142. <<NOTE: 20 USC 7217a.>>  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,

    [[Page 115 STAT. 1786]]

            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

    [[Page 115 STAT. 1787]]

    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) <<NOTE: Deadline.>>  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. <<NOTE: Records.>>  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) <<NOTE: Applicability.>>  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. <<NOTE: 20 USC 7217b.>>  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.

    [[Page 115 STAT. 1788]]

    ``SEC. 5144. <<NOTE: 20 USC 7217c.>>  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. <<NOTE: 20 USC 7217d.>>  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. <<NOTE: 20 USC 7217e.>>  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. <<NOTE: 20 USC 7221.>>  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. <<NOTE: 20 USC 7221a.>>  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.--

    [[Page 115 STAT. 1789]]

                ``(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 one grant for activities described in
            subparagraphs (A) and (B) of subsection (c)(2); or
                ``(2) more than one grant for activities under subparagraph
            (C) of subsection (c)(2).

        ``(e) Priority Treatment.--
                ``(1) In general.--In awarding grants under this subpart for
            fiscal year 2002 or any succeeding fiscal year from any funds
            appropriated under section 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 one or more of the criteria described in
            subparagraph (A), (B), or (C) of paragraph (3).
                ``(2) Review and evaluation priority criteria.--The criteria
            referred to in paragraph (1) 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 one authorized public
                          chartering agency that is not a local educational
                          agency, such as a State chartering board, for each
                          individual or entity seeking to operate a charter
                          school pursuant to such State law; or
                              ``(ii) in the case of a State in which local
                          educational agencies are the only authorized
                          public chartering agencies, allows for an appeals
                          process for the denial of an application for a
                          charter school.

    [[Page 115 STAT. 1790]]

                        ``(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. <<NOTE: 20 USC 7221b.>>  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

    [[Page 115 STAT. 1791]]

                              ``(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--

    [[Page 115 STAT. 1792]]

                ``(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. <<NOTE: 20 USC 7221c.>>  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;

    [[Page 115 STAT. 1793]]

                ``(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 one or more eligible applicants in
            the State to enable such applicant to plan and implement a
            charter school in accordance with this subpart, except that the
            State educational agency may reserve not more than 10 percent of
            the grant funds to support dissemination activities described in
            paragraph (6).
                ``(2) Eligible applicants.--Each eligible applicant
            receiving funds from the Secretary or a State educational agency
            shall use such funds to plan and implement a charter school, or
            to disseminate information about the charter school and
            successful practices in the charter school, in accordance with
            this subpart.
                ``(3) Allowable activities.--An eligible applicant receiving
            a grant or subgrant under this subpart may use the grant or
            subgrant funds only for--
                        (A) post-award planning and design of the
                    educational program, which may include--
                              ``(i) refinement of the desired educational
                          results and of the methods for measuring progress
                          toward achieving those results; and
                              ``(ii) professional development of teachers
                          and other staff who will work in the charter
                          school; and

    [[Page 115 STAT. 1794]]

                        ``(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 one or more new public
                          schools,

    [[Page 115 STAT. 1795]]

                          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. <<NOTE: 20 USC 7221d.>>  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;

    [[Page 115 STAT. 1796]]

                        ``(C) assistance in the planning and startup of
                    charter schools;
                        ``(D) training and technical assistance to existing
                    charter schools; and
                        ``(E) for the dissemination to other public schools
                    of best or promising practices in charter schools.
                ``(4) To provide (including through the use of one or more
            contracts that use a competitive bidding process) for the
            collection of information regarding the financial resources
            available to charter schools, including access to private
            capital, and to widely disseminate to charter schools any such
            relevant information and model descriptions of successful
            programs.
                ``(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 one 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

    [[Page 115 STAT. 1797]]

                    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. <<NOTE: 20 USC 7221e.>>  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

    [[Page 115 STAT. 1798]]

            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. <<NOTE: 20 USC 7221f.>>  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. <<NOTE: 20 USC 7221g.>>  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. <<NOTE: 20 USC 7221h.>>  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. <<NOTE: 20 USC 7221i.>>  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;

    [[Page 115 STAT. 1799]]

                        ``(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. <<NOTE: 20 USC 7221j.>>  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

    [[Page 115 STAT. 1800]]

                ``(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. <<NOTE: 20 USC 7223.>>  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. <<NOTE: 20 USC 7223a.>>  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 three 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 one grant to an eligible entity described in section
            5230(2)(A), at least one grant to an eligible entity described
            in section 5230(2)(B), and at least one 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 three grants in accordance with
    subsections (a) through (c), such three-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. <<NOTE: 20 USC 7223b.>>  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

    [[Page 115 STAT. 1801]]

            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. <<NOTE: 20 USC 7223c.>>  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 one or more charter schools to access private sector
    capital to accomplish one or both of the following objectives:
                ``(1) The acquisition (by purchase, lease, donation, or
            otherwise) of an interest (including an interest held by a third
            party for the benefit of a charter school) in improved or
            unimproved real property that is necessary to commence or
            continue the operation of a charter school.
                ``(2) The construction of new facilities, or the renovation,
            repair, or alteration of existing facilities, necessary to
            commence or continue the operation of a charter school.

    ``SEC. 5225. <<NOTE: 20 USC 7223d.>>  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 one or more of the following purposes:
                ``(1) Guaranteeing, insuring, and reinsuring bonds, notes,
            evidences of debt, loans, and interests therein, the proceeds of
            which are used for an objective described in section 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.

    [[Page 115 STAT. 1802]]

                ``(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. <<NOTE: 20 USC 7223e.>>  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. <<NOTE: 20 USC 7223f.>>  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.

    [[Page 115 STAT. 1803]]

    ``SEC. 5228. <<NOTE: 20 USC 7223g.>>  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. <<NOTE: 20 USC 7223h.>>  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 one or more of the
    purposes described in section 5225(a).
        ``(c) <<NOTE: Applicability.>>  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. <<NOTE: 20 USC 7223i.>>  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. <<NOTE: 20 USC 7223j.>>  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. <<NOTE: 20 USC 7225.>>  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

    [[Page 115 STAT. 1804]]

    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. <<NOTE: 20 USC 7225a.>>  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. <<NOTE: 20 USC 7225b.>>  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. <<NOTE: 20 USC 7225c.>>  PRIORITIES.

        ``In awarding grants under this subpart, the Secretary shall give
    priority to an eligible entity--

    [[Page 115 STAT. 1805]]

                ``(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. <<NOTE: 20 USC 7225d.>>  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. <<NOTE: 20 USC 7225e.>>  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. <<NOTE: 20 USC 7225f.>>  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--

    [[Page 115 STAT. 1806]]

                                        ``(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 two or more consecutive years.

    ``SEC. 5248. <<NOTE: 20 USC 7225g.>>  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. <<NOTE: 20 USC 7231.>>  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--

    [[Page 115 STAT. 1807]]

                ``(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. <<NOTE: 20 USC 7231a.>>  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. <<NOTE: 20 USC 7231b.>>  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. <<NOTE: 20 USC 7231c.>>  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

    [[Page 115 STAT. 1808]]

            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. <<NOTE: 20 USC 7231d.>>  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

    [[Page 115 STAT. 1809]]

                    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. <<NOTE: 20 USC 7231e.>>  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. <<NOTE: 20 USC 7231f.>>  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

    [[Page 115 STAT. 1810]]

    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. <<NOTE: 20 USC 7231g.>>  PROHIBITION.

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

    ``SEC. 5309. <<NOTE: 20 USC 7231h.>>  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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7231i.>>  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) <<NOTE: Public information.>>  Dissemination.--The Secretary
    shall collect and disseminate to the general public information on
    successful magnet school programs.

    ``SEC. 5311. <<NOTE: 20 USC 7231j.>>  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

    [[Page 115 STAT. 1811]]

    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. <<NOTE: 20 USC 7241.>>  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. <<NOTE: 20 USC 7243.>>  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

    [[Page 115 STAT. 1812]]

                        ``(B) 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. <<NOTE: 20 USC 7243a.>>  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. <<NOTE: 20 USC 7243b.>>  PROGRAM REQUIREMENTS.

        ``(a) Evaluations.--A recipient of an award under this subpart
    shall--

    [[Page 115 STAT. 1813]]

                ``(1) evaluate the effectiveness of the program funded under
            the award in achieving the objectives stated in applications
            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) <<NOTE: Public information. Notice.>>  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. <<NOTE: 20 USC 7243c.>>  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.

    [[Page 115 STAT. 1814]]

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

    ``SEC. 5421. <<NOTE: 20 USC 7245.>>  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;

    [[Page 115 STAT. 1815]]

                        ``(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;

    [[Page 115 STAT. 1816]]

                        ``(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 one school counselor to 250
                    students, one school social worker to 800 students, and
                    one 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;

    [[Page 115 STAT. 1817]]

                        ``(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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7247.>>  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

    [[Page 115 STAT. 1818]]

                                        ``(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.

    [[Page 115 STAT. 1819]]

                        ``(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--

    [[Page 115 STAT. 1820]]

                              ``(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,

    [[Page 115 STAT. 1821]]

            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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1822]]

                                        ``(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.

    [[Page 115 STAT. 1823]]

                ``(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. <<NOTE: 20 USC 7249.>>  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.

    [[Page 115 STAT. 1824]]

                ``(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. <<NOTE: 20 USC 7251.>>  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

    [[Page 115 STAT. 1825]]

    literacy resources and shall assign the highest priority to serving the
    youngest and neediest children in the United States.
        ``(b) Authorization.--The <<NOTE: Contracts.>>  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.
                        ildren 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

    [[Page 115 STAT. 1826]]

            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 <<NOTE: Jacob K. Javits Gifted and Talented Students Education
    Act of 2001.>>  6--Gifted and Talented Students

    ``SEC. 5461. <<NOTE: 20 USC 7253.>>  SHORT TITLE.

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

    ``SEC. 5462. <<NOTE: 20 USC 7253a.>>  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. <<NOTE: 20 USC 7253b.>>  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. <<NOTE: 20 USC 7253c.>>  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

    [[Page 115 STAT. 1827]]

            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

    [[Page 115 STAT. 1828]]

    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. <<NOTE: 20 USC 7253d.>>  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. <<NOTE: 20 USC 7253e.>>  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.

    [[Page 115 STAT. 1829]]

        ``(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) <<NOTE: Deadline.>>  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 <<NOTE: Star Schools Act.>>  7--Star Schools Program

    ``SEC. 5471. <<NOTE: 20 USC 7255.>>  SHORT TITLE.

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

    ``SEC. 5472. <<NOTE: 20 USC 7255a.>>  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.

    [[Page 115 STAT. 1830]]

    ``SEC. 5473. <<NOTE: 20 USC 7255b.>>  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.

    [[Page 115 STAT. 1831]]

                ``(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. <<NOTE: 20 USC 7255c.>>  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

    [[Page 115 STAT. 1832]]

                    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

    [[Page 115 STAT. 1833]]

                    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--

    [[Page 115 STAT. 1834]]

                              ``(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. <<NOTE: 20 USC 7255d.>>  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

    [[Page 115 STAT. 1835]]

                        ``(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. <<NOTE: 20 USC 7255e.>>  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--

    [[Page 115 STAT. 1836]]

                        ``(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. <<NOTE: 20 USC 7255f.>>  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).

    [[Page 115 STAT. 1837]]

                              ``(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. <<NOTE: 20 USC 7257.>>  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.

    [[Page 115 STAT. 1838]]

    ``SEC. 5482. <<NOTE: 20 USC 7257a.>>  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. <<NOTE: 20 USC 7257b.>>  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. <<NOTE: 20 USC 7257c.>>  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;

    [[Page 115 STAT. 1839]]

                ``(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. <<NOTE: 20 USC 7257d.>>  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 <<NOTE: Foreign Language Assistance Act of 2001.>>  9--Foreign
    Language Assistance Program

    ``SEC. 5491. <<NOTE: 20 USC 7259.>>  SHORT TITLE.

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

    ``SEC. 5492. <<NOTE: 20 USC 7259a.>>  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;

    [[Page 115 STAT. 1840]]

                        ``(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. <<NOTE: 20 USC 7259b.>>  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. <<NOTE: 20 USC 7259c.>>  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

    [[Page 115 STAT. 1841]]

    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 <<NOTE: Carol M. White Physical Education Program.>>  10--
    Physical Education

    ``SEC. 5501. <<NOTE: 20 USC 7261.>>  SHORT TITLE.

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

    ``SEC. 5502. <<NOTE: 20 USC 7261a.>>  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. <<NOTE: 20 USC 7261b.>>  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. <<NOTE: 20 USC 7261c.>>  APPLICATIONS.

        ``(a) Submission.--Each local educational agency or community-based
    organization desiring a grant or contract under this subpart

    [[Page 115 STAT. 1842]]

    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. <<NOTE: 20 USC 7261d.>>  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. <<NOTE: 20 USC 7261e.>>  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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7261f.>>  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.

    [[Page 115 STAT. 1843]]

                   ``Subpart 11--Community Technology Centers

    ``SEC. 5511. <<NOTE: 20 USC 7263.>>  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. <<NOTE: 20 USC 7263a.>>  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

    [[Page 115 STAT. 1844]]

                    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. <<NOTE: 20 USC 7263b.>>  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.

    [[Page 115 STAT. 1845]]

                        ``(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 <<NOTE: Alaska Native and Native Hawaiian Education Through
    Cultural and Historical Organizations Act.>>  12--Educational, Cultural,
        Apprenticeship, and Exchange Programs for Alaska Natives, Native
        Hawaiians, and Their Historical Whaling and Trading Partners in
    Massachusetts

    ``SEC. 5521. <<NOTE: 20 USC 7265.>>  SHORT TITLE.

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

    ``SEC. 5522. <<NOTE: 20 USC 7265a.>>  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

    [[Page 115 STAT. 1846]]

            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. <<NOTE: 20 USC 7265b.>>  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.

    [[Page 115 STAT. 1847]]

        ``(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. <<NOTE: 20 USC 7265c.>>  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. <<NOTE: 20 USC 7265d.>>  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.

    [[Page 115 STAT. 1848]]

                ``(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. <<NOTE: 20 USC 7265e.>>  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 <<NOTE: Excellence in Economic Education Act of 2001.>>  13--
    Excellence in Economic Education

    ``SEC. 5531. <<NOTE: 20 USC 7267.>>  SHORT TITLE.

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

    ``SEC. 5532. <<NOTE: 20 USC 7267a.>>  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. <<NOTE: 20 USC 7267b.>>  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--

    [[Page 115 STAT. 1849]]

                        ``(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. <<NOTE: 20 USC 7267c.>>  APPLICATIONS.

        ``(a) Grantee Applications.--To be eligible to receive a grant under
    this subpart, the grantee shall submit to the Secretary an

    [[Page 115 STAT. 1850]]

    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. <<NOTE: 20 USC 7267d.>>  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. <<NOTE: 20 USC 7267e.>>  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).

    [[Page 115 STAT. 1851]]

        ``(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. <<NOTE: 20 USC 7267f.>>  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. <<NOTE: 20 USC 7269.>>  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:

    [[Page 115 STAT. 1852]]

                ``(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--

    [[Page 115 STAT. 1853]]

                ``(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. <<NOTE: 20 USC 7269a.>>  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

    [[Page 115 STAT. 1854]]

            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

    [[Page 115 STAT. 1855]]

            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. <<NOTE: 20 USC 7271.>>  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.

    [[Page 115 STAT. 1856]]

                ``(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. <<NOTE: 20 USC 7273.>>  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.

    [[Page 115 STAT. 1857]]

                ``(6) To provide a comprehensive approach to improving
            student learning, through coordination and integration of
            Federal, State, and local services and programs.

    ``SEC. 5562. <<NOTE: 20 USC 7273a.>>  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. <<NOTE: 20 USC 7273b.>>  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;

    [[Page 115 STAT. 1858]]

                ``(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
            understandingState 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. <<NOTE: 20 USC 7273c.>>  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;

    [[Page 115 STAT. 1859]]

                        ``(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. <<NOTE: 20 USC 7273d.>>  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

    [[Page 115 STAT. 1860]]

    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

    [[Page 115 STAT. 1861]]

    enactment of the No Child Left Behind Act of 2001) for the duration of
    the grant or contract award.

    ``SEC. 5566. <<NOTE: 20 USC 7273e.>>  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. <<NOTE: 20 USC 7275.>>  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

    [[Page 115 STAT. 1862]]

                              ``(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.

    [[Page 115 STAT. 1863]]

                ``(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. <<NOTE: 20 USC 7277.>>  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. <<NOTE: 20 USC 7277a.>>  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.

    [[Page 115 STAT. 1864]]

                ``(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. <<NOTE: 20 USC 7277b.>>  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).

    [[Page 115 STAT. 1865]]

                ``(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. <<NOTE: 20 USC 7277c.>>  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. <<NOTE: 20 USC 7277d.>>  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. <<NOTE: 20 USC 7277e.>>  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. <<NOTE: 20 USC 7279.>>  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. <<NOTE: 20 USC 7279a.>>  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.

    [[Page 115 STAT. 1866]]

    ``SEC. 5593. <<NOTE: 20 USC 7279b.>>  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. <<NOTE: 20 USC 7279c.>>  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. <<NOTE: 20 USC 7279d.>>  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. <<NOTE: 20 USC 7279e.>>  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. <<NOTE: 20 USC 7281.>>  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. <<NOTE: 20 USC 7281a.>>  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 subparagraph (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

    [[Page 115 STAT. 1867]]

            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. <<NOTE: 20 USC 7281b.>>  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 educational
    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 <<NOTE: Women's Educational Equity Act of 2001.>>  21--Women's
    Educational Equity Act

    ``SEC. 5611. <<NOTE: 20 USC 7283.>>  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 of 2001, 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

    [[Page 115 STAT. 1868]]

                        ``(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. <<NOTE: 20 USC 7283a.>>  STATEMENT OF PURPOSE.

        ``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. <<NOTE: 20 USC 7283b.>>  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--

    [[Page 115 STAT. 1869]]

                        ``(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

    [[Page 115 STAT. 1870]]

                              ``(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; and
                        ``(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.

    [[Page 115 STAT. 1871]]

    ``SEC. 5614. <<NOTE: 20 USC 7283c.>>  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. <<NOTE: 20 USC 7283d.>>  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;

    [[Page 115 STAT. 1872]]

                ``(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. <<NOTE: 20 USC 7283e.>>  REPORT.

        ``Not <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7283f.>>  ADMINISTRATION.

        ``(a) Evaluation and <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 1873]]

    ``SEC. 5618. <<NOTE: 20 USC 7283g.>>  AMOUNT.

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

    SEC. 502. <<NOTE: 20 USC 6301 note.>>  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. <<NOTE: 20 USC 7301.>>  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

    [[Page 115 STAT. 1874]]

            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. <<NOTE: 20 USC 7301a.>>  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

    [[Page 115 STAT. 1875]]

            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. <<NOTE: 20 USC 7301b.>>  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 one-half of 1 percent for the Bureau
                    of Indian Affairs;
                        ``(B) reserve one-half 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

    [[Page 115 STAT. 1876]]

                    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 <<NOTE: State and Local Transferability Act.>>  2--Funding
    Transferability for State and Local Educational Agencies

    ``SEC. 6121. <<NOTE: 20 USC 7305.>>  SHORT TITLE.

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

    ``SEC. 6122. <<NOTE: 20 USC 7305a.>>  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. <<NOTE: 20 USC 7305b.>>  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))

    [[Page 115 STAT. 1877]]

                    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 <<NOTE: Deadline.>>  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;

    [[Page 115 STAT. 1878]]

                        ``(B) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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 <<NOTE: State and Local Flexibility Demonstration Act.>>  3--
    State and Local Flexibility Demonstration

    ``SEC. 6131. <<NOTE: 20 USC 7311.>>  SHORT TITLE.

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

    ``SEC. 6132. <<NOTE: 20 USC 7311a.>>  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. <<NOTE: 20 USC 7311b.>>  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.

    [[Page 115 STAT. 1879]]

                    ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

    ``SEC. 6141. <<NOTE: 20 USC 7315.>>  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 seven 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;

    [[Page 115 STAT. 1880]]

                        ``(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

    [[Page 115 STAT. 1881]]

                    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

    [[Page 115 STAT. 1882]]

                    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

    [[Page 115 STAT. 1883]]

                              ``(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. <<NOTE: 20 USC 7315a.>>  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. <<NOTE: 20 USC 7315b.>>  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,

    [[Page 115 STAT. 1884]]

            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. <<NOTE: 20 USC 7315c.>>  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. <<NOTE: 20 USC 7321.>>  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--

    [[Page 115 STAT. 1885]]

                ``(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 three 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 three
                    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

    [[Page 115 STAT. 1886]]

                          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

    [[Page 115 STAT. 1887]]

            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 <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 1888]]

                        ``(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. <<NOTE: 20 USC 7321a.>>  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.

    [[Page 115 STAT. 1889]]

        ``(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. <<NOTE: 20 USC 7321b.>>  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. <<NOTE: 20 USC 7321c.>>  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. <<NOTE: 20 USC 7321d.>>  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 one
    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,

    [[Page 115 STAT. 1890]]

    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. <<NOTE: 20 USC 7321e.>>  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. <<NOTE: 20 USC 7325.>>  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 two 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. <<NOTE: 20 USC 7325a.>>  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. <<NOTE: 20 USC 7325b.>>  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.

    [[Page 115 STAT. 1891]]

                ``(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. <<NOTE: 20 USC 7325c.>>  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 <<NOTE: Rural Education Achievement Program.>>  B--RURAL
    EDUCATION INITIATIVE

    ``SEC. 6201. <<NOTE: 20 USC 7341.>>  SHORT TITLE.

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

    ``SEC. 6202. <<NOTE: 20 USC 7341a.>>  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. <<NOTE: 20 USC 7345.>>  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.

    [[Page 115 STAT. 1892]]

                        ``(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. <<NOTE: 20 USC 7345a.>>  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.

    [[Page 115 STAT. 1893]]

                ``(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. <<NOTE: 20 USC 7345b.>>  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.

    [[Page 115 STAT. 1894]]

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

    ``SEC. 6221. <<NOTE: 20 USC 7351.>>  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;

    [[Page 115 STAT. 1895]]

                        ``(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) one-half 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) one-half 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. <<NOTE: 20 USC 7351a.>>  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. <<NOTE: 20 USC 7351b.>>  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.

    [[Page 115 STAT. 1896]]

    ``SEC. 6224. <<NOTE: 20 USC 7351c.>>  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;
                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

    [[Page 115 STAT. 1897]]

                ``(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. <<NOTE: 20 USC 7355.>>  ANNUAL AVERAGE DAILY ATTENDANCE
                DETERMINATION.

        ``(a) <<NOTE: Deadlines.>>  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. <<NOTE: 20 USC 7355a.>>  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. <<NOTE: 20 USC 7355b.>>  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. <<NOTE: 20 USC 7355c.>>  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. <<NOTE: 20 USC 7371.>>  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

    [[Page 115 STAT. 1898]]

    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. <<NOTE: 20 USC 7372.>>  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 2
                    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

    [[Page 115 STAT. 1899]]

                    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 1
                    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

    [[Page 115 STAT. 1900]]

                          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.--

    [[Page 115 STAT. 1901]]

                        ``(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.

    [[Page 115 STAT. 1902]]

                ``(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--

    [[Page 115 STAT. 1903]]

                                        ``(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 one 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;

    [[Page 115 STAT. 1904]]

                              ``(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.

    [[Page 115 STAT. 1905]]

                        ``(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 1 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));

    [[Page 115 STAT. 1906]]

                        ``(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) <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 1907]]

                        ``(B) Technical employees.--Such appointments may
                    include, for terms not to exceed 3 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, NATIVE HAWAIIANS, AND ALASKA NATIVES.

        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. <<NOTE: 20 USC 7401.>>  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. <<NOTE: 20 USC 7402.>>  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;

    [[Page 115 STAT. 1908]]

                ``(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. <<NOTE: 20 USC 7421.>>  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. <<NOTE: 20 USC 7422.>>  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. <<NOTE: 20 USC 2423.>>  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--

    [[Page 115 STAT. 1909]]

                        ``(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

    [[Page 115 STAT. 1910]]

                              ``(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. <<NOTE: 20 USC 7424.>>  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--

    [[Page 115 STAT. 1911]]

                              ``(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;

    [[Page 115 STAT. 1912]]

                        ``(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. <<NOTE: 20 USC 7425.>>  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

    [[Page 115 STAT. 1913]]

                ``(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. <<NOTE: 20 USC 7426.>>  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;

    [[Page 115 STAT. 1914]]

                ``(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) <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1915]]

            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 <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1916]]

            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 <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 7427.>>  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;

    [[Page 115 STAT. 1917]]

                ``(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 one of the
    following, as selected by the school:

    [[Page 115 STAT. 1918]]

                ``(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. <<NOTE: 20 USC 7428.>>  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

    [[Page 115 STAT. 1919]]

                        ``(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. <<NOTE: 20 USC 7429.>>  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. <<NOTE: 20 USC 7441.>>  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

    [[Page 115 STAT. 1920]]

                        ``(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 one or more of the core academic
                    subjects of English, mathematics, science, foreign
                    languages, art, history, and geography;
                        ``(C) bilingual and bicultural programs and
                    projects;
                        ``(D) special health and nutrition services, and
                    other related activities, that address the special
                    health, social, and psychological problems of Indian
                    children;
                        ``(E) special compensatory and other programs and
                    projects designed to assist and encourage Indian
                    children to enter, remain in, or reenter school, and to
                    increase the rate of 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.

    [[Page 115 STAT. 1921]]

        ``(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 two 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

    [[Page 115 STAT. 1922]]

                              ``(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. <<NOTE: 20 USC 7442.>>  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

    [[Page 115 STAT. 1923]]

                ``(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 <<NOTE: Regulations.>>  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. <<NOTE: 20 USC 7451.>>  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.

    [[Page 115 STAT. 1924]]

    ``SEC. 7132. <<NOTE: 20 USC 7452.>>  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) one 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 one or more of the entities described in section 7143.

    ``SEC. 7133. <<NOTE: 20 USC 7453.>>  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.

    [[Page 115 STAT. 1925]]

        ``(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 <<NOTE: Deadline.>>  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) <<NOTE: Regulations.>>  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. <<NOTE: 20 USC 7454.>>  GIFTED AND TALENTED INDIAN
                STUDENTS.

        ``(a) Program Authorized.--The Secretary is authorized to--
                ``(1) establish two centers for gifted and talented Indian
            students at tribally controlled community colleges in accordance
            with this section; and
                ``(2) support demonstration projects described in subsection
            (c).

        ``(b) Eligible Entities.--The Secretary shall make grants, or enter
    into contracts, for the activities described in subsection (a), to or
    with--

    [[Page 115 STAT. 1926]]

                ``(1) two 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 two 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,

    [[Page 115 STAT. 1927]]

                    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.--

    [[Page 115 STAT. 1928]]

                        ``(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. <<NOTE: 20 USC 7455.>>  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--

    [[Page 115 STAT. 1929]]

                        ``(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. <<NOTE: 20 USC 7456.>>  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.

    [[Page 115 STAT. 1930]]

        ``(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. <<NOTE: 20 USC 7471.>>  NATIONAL ADVISORY COUNCIL ON INDIAN
                EDUCATION.

        ``(a) Membership.--There <<NOTE: Establishment.>>  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--

    [[Page 115 STAT. 1931]]

                ``(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) <<NOTE: Deadline.>>  submit to Congress, not later
            than June 30 of each year, a report on the activities of the
            Council, <<NOTE: Reports.>> 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. <<NOTE: 20 USC 7472.>>  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. <<NOTE: 20 USC 7473.>>  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. <<NOTE: 20 USC 7474.>>  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. <<NOTE: 20 USC 7491.>>  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

    [[Page 115 STAT. 1932]]

                        ``(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. <<NOTE: 20 USC 7492.>>  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 <<NOTE: Native Hawaiian Education Act.>>  B--NATIVE HAWAIIAN
    EDUCATION

    ``SEC. 7201. <<NOTE: 20 USC 7511.>>  SHORT TITLE.

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

    ``SEC. 7202. <<NOTE: 20 USC 7512.>>  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 Hawaii 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
            Hawaii.
                ``(4) From 1826 until 1893, the United States recognized the
            sovereignty and independence of the Kingdom of Hawaii, which was
            established in 1810 under Kamehameha I, extended full and
            complete diplomatic recognition to the Kingdom of Hawaii, and
            entered into treaties and conventions with the Kingdom of Hawaii
            to govern friendship, commerce and navigation in 1826, 1842,
            1849, 1875, and 1887.

    [[Page 115 STAT. 1933]]

                ``(5) In 1893, the sovereign, independent, internationally
            recognized, and indigenous government of Hawaii, the Kingdom of
            Hawaii, 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 Hawaii, 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 Hawaii,
            including the government and crown lands of the former Kingdom
            of Hawaii, 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 Hawaii 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 Hawaii 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 Hawaii into the Union', the
            United States also ceded to the State of Hawaii 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

    [[Page 115 STAT. 1934]]

            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 Hawaii 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 Hawaii;
                        ``(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

    [[Page 115 STAT. 1935]]

            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 four or more years of
                    college;
                        ``(G) Native Hawaiians continue to be
                    disproportionately represented in many negative social
                    and physical statistics indicative of special
                    educational needs, 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;

    [[Page 115 STAT. 1936]]

                              ``(ii) Native Hawaiian students have the
                          highest rates of drug and alcohol use in the State
                          of Hawaii; 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 Hawaii 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
            Hawaii.
                ``(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 Hawaii in
            1893, Hawaiian medium schools were banned. After annexation,
            throughout the territorial and statehood period of Hawaii, 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 Hawaii, in the constitution and statutes
            of the State of Hawaii--
                        ``(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 Hawaii, 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.

    [[Page 115 STAT. 1937]]

    ``SEC. 7203. <<NOTE: 20 USC 7513.>>  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. <<NOTE: 20 USC 7514.>>  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 Hawaii 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,

    [[Page 115 STAT. 1938]]

            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) Hawaii.
                        ``(B) Maui.
                        ``(C) Molokai.
                        ``(D) Lanai.
                        ``(E) Oahu.
                        ``(F) Kauai.
                        ``(G) Niihau.
                ``(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 three-fourths of the members of each
            island council shall be Native Hawaiians.

        ``(g) Administrative Provisions Relating to Education Council and
    Island Councils.--The Education Council and each island council shall
    meet at the call of the chairperson of the appropriate council, or upon
    the request of the majority of the members of the appropriate council,
    but in any event not less often than four times during each calendar
    year. The provisions of the Federal Advisory Committee Act shall not
    apply to the Education Council and each island council.
        ``(h) Compensation.--Members of the Education Council and each
    island council shall not receive any compensation for service on the
    Education Council and each island council, respectively.
        ``(i) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1939]]

    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. <<NOTE: 20 USC 7515.>>  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

    [[Page 115 STAT. 1940]]

                              ``(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

    [[Page 115 STAT. 1941]]

                              ``(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 Hawaii 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. <<NOTE: 20 USC 7516.>>  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. <<NOTE: 20 USC 7517.>>  DEFINITIONS.

        ``In this part:

    [[Page 115 STAT. 1942]]

                ``(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 Hawaii, as
                    evidenced by--
                              ``(i) genealogical records;
                              ``(ii) Kupuna (elders) or Kamaaina (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 Hawaii.
                ``(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 organization; and
                        ``(C) is recognized by the Governor of Hawaii 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 <<NOTE: Alaska Native Educational Equity, Support, and Assistance
    Act.>>  C--ALASKA NATIVE EDUCATION

    ``SEC. 7301. <<NOTE: 20 USC 7541.>>  SHORT TITLE.

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

    ``SEC. 7302. <<NOTE: 20 USC 7542.>>  FINDINGS.

        ``Congress finds and declares the following:

    [[Page 115 STAT. 1943]]

                ``(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. <<NOTE: 20 USC 7543.>>  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. <<NOTE: 20 USC 7544.>>  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:

    [[Page 115 STAT. 1944]]

                        ``(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

    [[Page 115 STAT. 1945]]

                    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 one 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.

    [[Page 115 STAT. 1946]]

                ``(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. <<NOTE: 20 USC 7545.>>  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. <<NOTE: 20 USC 7546.>>  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 <<NOTE: 20 USC 2326.>>  88-210.--Section 116 of
    Public Law 88-210 (as added by section 1 of Public Law 105-332 (112
    Stat. 3076))

    [[Page 115 STAT. 1947]]

    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. <<NOTE: 20 USC 7401 note.>>  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

    [[Page 115 STAT. 1948]]

            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

    [[Page 115 STAT. 1949]]

                    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) <<NOTE: 20 USC 7703 note.>>  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 2002, and shall process
            that application for payment, if the Secretary has received

    [[Page 115 STAT. 1950]]

            the fiscal year 2002 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--

    [[Page 115 STAT. 1951]]

                              ``(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

    [[Page 115 STAT. 1952]]

                          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

    [[Page 115 STAT. 1953]]

                              ``(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

    [[Page 115 STAT. 1954]]

                                    (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

    [[Page 115 STAT. 1955]]

                    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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1956]]

                              ``(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

    SEC. 901. GENERAL PROVISIONS.

        Title IX (20 U.S.C. 7801 et seq.) is amended to read as follows:

                         ``TITLE IX--GENERAL PROVISIONS

                              ``PART A--DEFINITIONS

    ``SEC. 9101. <<NOTE: 20 USC 7801.>>  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

    [[Page 115 STAT. 1957]]

                    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 three 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.

    [[Page 115 STAT. 1958]]

                ``(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;

    [[Page 115 STAT. 1959]]

                        ``(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

    [[Page 115 STAT. 1960]]

                                    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.

    [[Page 115 STAT. 1961]]

                ``(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.

    [[Page 115 STAT. 1962]]

                        ``(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.

    [[Page 115 STAT. 1963]]

                ``(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;

    [[Page 115 STAT. 1964]]

                              ``(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;

    [[Page 115 STAT. 1965]]

                              ``(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.
              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
                               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

    [[Page 115 STAT. 1966]]

                    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. <<NOTE: 20 USC 7802.>>  APPLICABILITY OF TITLE.

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

    ``SEC. 9103. <<NOTE: 20 USC 7803.>>  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. <<NOTE: 20 USC 7821.>>  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;

    [[Page 115 STAT. 1967]]

                        ``(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. <<NOTE: 20 USC 7822.>>  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. <<NOTE: 20 USC 7823.>>  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

    [[Page 115 STAT. 1968]]

    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. <<NOTE: 20 USC 7824.>>  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. <<NOTE: 20 USC 7841.>>  PURPOSES.

        ``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. <<NOTE: 20 USC 7842.>>  OPTIONAL CONSOLIDATED STATE PLANS
                OR APPLICATIONS.

        ``(a) General Authority.--

    [[Page 115 STAT. 1969]]

                ``(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. <<NOTE: 20 USC 7843.>>  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. <<NOTE: 20 USC 7844.>>  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

    [[Page 115 STAT. 1970]]

    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. <<NOTE: 20 USC 7845.>>  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.

    [[Page 115 STAT. 1971]]

        ``(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. <<NOTE: 20 USC 7846.>>  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) <<NOTE: Reports.>>  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

    [[Page 115 STAT. 1972]]

                    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. <<NOTE: 20 USC 7861.>>  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--

    [[Page 115 STAT. 1973]]

                              ``(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

    [[Page 115 STAT. 1974]]

            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

    [[Page 115 STAT. 1975]]

    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) <<NOTE: Federal Register, publication.>>  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. <<NOTE: 20 USC 7881.>>  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);

    [[Page 115 STAT. 1976]]

                        ``(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

    [[Page 115 STAT. 1977]]

            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. <<NOTE: 20 USC 7882.>>  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. <<NOTE: 20 USC 7883.>>  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

    [[Page 115 STAT. 1978]]

    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 <<NOTE: Deadline.>>  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. <<NOTE: Deadline.>>  The Secretary shall investigate and resolve
    the appeal not later than 120 days after receipt of the appeal.

    ``SEC. 9504. <<NOTE: 20 USC 7884.>>  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.

    [[Page 115 STAT. 1979]]

                        ``(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. <<NOTE: 20 USC 7885.>>  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. <<NOTE: 20 USC 7886.>>  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.

    [[Page 115 STAT. 1980]]

        ``(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. <<NOTE: 20 USC 7901.>>  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. <<NOTE: 20 USC 7902.>>  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. <<NOTE: 20 USC 7903.>>  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. <<NOTE: 20 USC 7904.>>  SCHOOL PRAYER.

        ``(a) Guidance.--The <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1981]]

    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. <<NOTE: Boy Scouts of America Equal Access Act. 20 USC
                7905.>>  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

    [[Page 115 STAT. 1982]]

            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. <<NOTE: 20 USC 7906.>>  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

    [[Page 115 STAT. 1983]]

                ``(4) create any legally enforceable right.

    ``SEC. 9527. <<NOTE: 20 USC 7907.>>  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. <<NOTE: 20 USC 7908.>>  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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1984]]

    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. <<NOTE: 20 USC 7909.>>  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. <<NOTE: 20 USC 7910.>>  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. <<NOTE: 20 USC 7911.>>  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. <<NOTE: 20 USC 7912.>>  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
    school or secondary school within the local educational agency,
    including a public charter school.

    [[Page 115 STAT. 1985]]

        ``(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. <<NOTE: 20 USC 7913.>>  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. <<NOTE: 20 USC 7914.>>  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. <<NOTE: 20 USC 7915.>>  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. <<NOTE: 20 USC 7916.>>  SEVERABILITY.

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

                              ``PART F--EVALUATIONS

    ``SEC. 9601. <<NOTE: 20 USC 7941.>>  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

    [[Page 115 STAT. 1986]]

            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).

    [[Page 115 STAT. 1987]]

                             PART B--REDESIGNATIONS

    SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

        (a) In <<NOTE: 20 USC 6053-6053d.>>  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) <<NOTE: 20 USC 6053-6053d.>>  Sections.--Sections 13101 through
    13105 of such part are redesignated as sections 1001 through 1005,
    respectively.

        (c) Defined <<NOTE: 20 USC 6053e.>>  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 <<NOTE: 20 USC 6054, 6054a.>>  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 <<NOTE: 20 USC 6054, 6054a.>>  13201 and
    13102 of such part are redesignated as sections 1011 and 1012,
    respectively.

        (c) Defined <<NOTE: 20 USC 6054b.>>  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 <<NOTE: 20 USC 6055-6055g.>>  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 <<NOTE: 20 USC 6055-6055g.>>  13301 through
    13108 of such part are redesignated as sections 1021 through 1028,
    respectively.

        (c) Defined <<NOTE: 20 USC 6055h.>>  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 <<NOTE: 20 USC 6056.>>  General.--Part D of title XIII of the
    Elementary and Secondary Education Act of 1965 (20 U.S.C. 8701) is
    transferred

    [[Page 115 STAT. 1988]]

    to and redesignated as part N of the Educational Research, Development,
    Dissemination, and Improvement Act of 1994.

        (b) <<NOTE: 20 USC 6056.>>  Sections.--Section 13401 of such part is
    redesignated as section 1031.

        (c) Defined <<NOTE: 20 USC 6056a.>>  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 <<NOTE: 20 USC 6053a.>>  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 <<NOTE: 20 USC 6053, 6054.>>
                    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 <<NOTE: 20 USC 6055f.>>  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 <<NOTE: 20 USC 6053b.>>  section 1003(b)(1), strike
            ``section 13102'' and insert ``section 1002''.
                (9) In section <<NOTE: 20 USC 6053c.>>  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 <<NOTE: 20 USC 6055a.>>  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) <<NOTE: 20 USC 6055d.>>  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 <<NOTE: 20 USC 6055.>>  1021(a)(3), strike
            ``section 13308'' and insert ``section 1028''.

    [[Page 115 STAT. 1989]]

                (16) <<NOTE: 20 USC 6053b, 6054.>>  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 <<NOTE: 20 USC 6053.>>  1001(a)(1) (the
                    first occurrence only);
                        (B) paragraphs (1) through (3) of section 1001(c);
                        (C) paragraphs <<NOTE: 20 USC 6053a.>>  (1), (2),
                    (6), and (8) of section 1002(a);
                        (D) section 1011(e); and
                        (E) section <<NOTE: 20 USC 6056.>>  1031(2).
                (18) In paragraphs <<NOTE: 20 USC 6053c.>>  (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) <<NOTE: 20 USC 6055a.>>  In section 1022(1), strike ``,
            the Eisenhower National Clearinghouse for Science and
            Mathematics Education established under section 2102(b)''.
                (22) In section <<NOTE: 20 USC 6055e.>>  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 <<NOTE: McKinney-Vento Homeless Education Assistance Improvements
    Act of 2001.>>  C--HOMELESS EDUCATION

    SEC. 1031. <<NOTE: 42 USC 11301 note.>>  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. <<NOTE: 42 USC 11431.>>  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,

    [[Page 115 STAT. 1990]]

            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. <<NOTE: 42 USC 11432.>>  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) one-fourth 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,

    [[Page 115 STAT. 1991]]

            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,

    [[Page 115 STAT. 1992]]

                    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;

    [[Page 115 STAT. 1993]]

                              ``(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

    [[Page 115 STAT. 1994]]

                              ``(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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 1995]]

            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.

    [[Page 115 STAT. 1996]]

                        ``(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,

    [[Page 115 STAT. 1997]]

                                    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

    [[Page 115 STAT. 1998]]

                          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.

    [[Page 115 STAT. 1999]]

                        ``(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.

    [[Page 115 STAT. 2000]]

                ``(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.

    [[Page 115 STAT. 2001]]

                        ``(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. <<NOTE: 42 USC 11433.>>  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).

    [[Page 115 STAT. 2002]]

                ``(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.

    [[Page 115 STAT. 2003]]

                        ``(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.

    [[Page 115 STAT. 2004]]

                ``(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. <<NOTE: 42 USC 11434.>>  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

    [[Page 115 STAT. 2005]]

    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) <<NOTE: Federal Register, publication. Deadline.>>
    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) <<NOTE: Deadline.>>  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. <<NOTE: 42 USC 11434a.>>  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'--

    [[Page 115 STAT. 2006]]

                        ``(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. <<NOTE: 42 USC 11435.>>  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. <<NOTE: 42 USC 11301 note.>>  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''.

    [[Page 115 STAT. 2007]]

        (b) <<NOTE: 42 USC 11301 note.>>  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 <<NOTE: Native American Education Improvement Act of 2001.>>  D--
    NATIVE AMERICAN EDUCATION IMPROVEMENT

    SEC. 1041. <<NOTE: 25 USC 2000 note.>>  SHORT TITLE.

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

    SEC. 1042. <<NOTE: 25 USC 2022-2026.>>  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. <<NOTE: 25 USC 2000.>>  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. <<NOTE: 25 USC 2001.>>  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) <<NOTE: Deadline.>>  In general.--Not later
                    than 24 months after the date of enactment of the Native
                    American Education

    [[Page 115 STAT. 2008]]

                    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 one State, in accordance with the
                          State accreditation standards of one State as
                          selected by the tribal government.
                        ``(B) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2009]]

            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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  In general.--Not later
                    than 120 days after the date on which a school is
                    included in an annual report

    [[Page 115 STAT. 2010]]

                    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) <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 2011]]

                        ``(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 toward 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 one or more of the following corrective
                    actions:
                              ``(i) Institute and fully implement actions
                          suggested by the accrediting agency.

    [[Page 115 STAT. 2012]]

                              ``(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 one 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

    [[Page 115 STAT. 2013]]

                          develop a proposal for such operation which shall
                          include, at a minimum, the following elements:
                                        ``(I) The identification of one 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. <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2014]]

            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

    [[Page 115 STAT. 2015]]

                    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 <<NOTE: Notification. Deadline.>>
                    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) <<NOTE: Federal Register,
                          publication.>>  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 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--

    [[Page 115 STAT. 2016]]

                                        ``(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) <<NOTE: Deadline.>>  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--

    [[Page 115 STAT. 2017]]

                              ``(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) <<NOTE: Deadline.>>  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.

    [[Page 115 STAT. 2018]]

        ``(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. <<NOTE: 25 USC 2002.>>  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) <<NOTE: Federal Register, publication.>>  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;

    [[Page 115 STAT. 2019]]

                        ``(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 <<NOTE: Deadline.>>  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. <<NOTE: 25 USC 2003.>>  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. <<NOTE: 25 USC 2004.>>  SCHOOL BOUNDARIES.

        ``(a) Establishment <<NOTE: Regulations.>>  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,

    [[Page 115 STAT. 2020]]

    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 <<NOTE: Federal Register, publication.>>
            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 one 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.

    [[Page 115 STAT. 2021]]

    ``SEC. 1125. <<NOTE: 25 USC 2005.>>  FACILITIES CONSTRUCTION.

        ``(a) National Survey of Facilities Conditions.--
                ``(1) In <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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;

    [[Page 115 STAT. 2022]]

                                        ``(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) <<NOTE: Deadline.>>  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-

    [[Page 115 STAT. 2023]]

            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 <<NOTE: Federal Register, publication.>>  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. <<NOTE: Federal Register,
            publication.>>  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) <<NOTE: Federal Register, publication.>>
                    cause the list prepared under subparagraph (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

    [[Page 115 STAT. 2024]]

                        ``(E) <<NOTE: Federal Register, publication.>>
                    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. <<NOTE: Deadline.>>  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.--

    [[Page 115 STAT. 2025]]

                              ``(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 <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2026]]

                              ``(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. <<NOTE: 25 USC 2006.>>  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 <<NOTE: Deadline.>>  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,

    [[Page 115 STAT. 2027]]

            procurement, and finance functions connected with school
            operation programs.
                ``(2) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2028]]

                          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. <<NOTE: 25 USC 2007.>>  ALLOTMENT FORMULA.

        ``(a) Factors Considered; Revision To Reflect Standards.--
                ``(1) Formula.--The <<NOTE: Regulations.>>  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;

    [[Page 115 STAT. 2029]]

                              ``(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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2030]]

                    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.

    [[Page 115 STAT. 2031]]

                              ``(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 one-fourth 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;

    [[Page 115 STAT. 2032]]

                        ``(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. <<NOTE: 25 USC 2008.>>  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--

    [[Page 115 STAT. 2033]]

                              ``(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 2
                          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

    [[Page 115 STAT. 2034]]

            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.--

    [[Page 115 STAT. 2035]]

                ``(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 one or more other programs under a contract
            or grant provided under the Indian Self-Determination and
            Education Assistance Act,

    [[Page 115 STAT. 2036]]

    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 <<NOTE: Deadline.>>  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;

    [[Page 115 STAT. 2037]]

                        ``(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.

    [[Page 115 STAT. 2038]]

                ``(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. <<NOTE: 25 USC 2009.>>  DIVISION OF BUDGET ANALYSIS.

        ``(a) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2039]]

    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 <<NOTE: Deadline.>>  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. <<NOTE: 25 USC 2010.>>  UNIFORM DIRECT FUNDING AND SUPPORT.

        ``(a) Establishment of System and Forward Funding.--
                ``(1) In <<NOTE: Regulations.>>  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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2040]]

                              ``(ii) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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 one
                          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

    [[Page 115 STAT. 2041]]

            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.

    [[Page 115 STAT. 2042]]

                        ``(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

    [[Page 115 STAT. 2043]]

                    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. <<NOTE: 25 USC 2011.>>  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-

    [[Page 115 STAT. 2044]]

            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 one 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. <<NOTE: 25 USC 2012.>>  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) <<NOTE: Deadline.>>  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.--

    [[Page 115 STAT. 2045]]

                ``(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

    [[Page 115 STAT. 2046]]

                        ``(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.

    [[Page 115 STAT. 2047]]

                              ``(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.

    [[Page 115 STAT. 2048]]

        ``(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) <<NOTE: Deadline.>>  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.--

    [[Page 115 STAT. 2049]]

                ``(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

    [[Page 115 STAT. 2050]]

                          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 three 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
                                    three 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

    [[Page 115 STAT. 2051]]

                          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 one 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.

    [[Page 115 STAT. 2052]]

                              ``(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 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.--

    [[Page 115 STAT. 2053]]

                ``(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;

    [[Page 115 STAT. 2054]]

                              ``(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 one 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

    [[Page 115 STAT. 2055]]

                              ``(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. <<NOTE: 25 USC 2013.>>  COMPUTERIZED MANAGEMENT INFORMATION
                SYSTEM.

        ``(a) In <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>>  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. <<NOTE: 25 USC 2014.>>  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.

    [[Page 115 STAT. 2056]]

    ``SEC. 1135. <<NOTE: 25 USC 2015.>>  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. <<NOTE: 25 USC 2016.>>  RIGHTS OF INDIAN STUDENTS.

        ``The <<NOTE: Regulations.>>  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) due process in connection with disciplinary actions,
            suspensions, and expulsions.

    ``SEC. 1137. <<NOTE: 25 USC 2017.>>  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) <<NOTE: Federal Register, publication.>>
                    publish proposed regulations in the Federal Register;
                    and
                        ``(B) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2057]]

            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. <<NOTE: 25 USC 2018.>>  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) <<NOTE: Federal Register, publication.>>  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.).

    [[Page 115 STAT. 2058]]

                ``(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. <<NOTE: 25 USC 2019.>>  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

    [[Page 115 STAT. 2059]]

                        ``(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. <<NOTE: 25 USC 2020.>>  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.

    [[Page 115 STAT. 2060]]

        ``(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 three 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

    [[Page 115 STAT. 2061]]

    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. <<NOTE: 25 USC 2021.>>  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, one
            such member at least shall be from such a school.
                ``(2) Bureau.--The term `Bureau' means the Bureau of Indian
            Affairs of the Department of the Interior.
                ``(3) Bureau-funded school.--The term `Bureau-funded school'
            means--
                        ``(A) a Bureau school;
                        ``(B) a contract or grant school; or
                        ``(C) a school for which assistance is provided
                    under the Tribally Controlled Schools Act of 1988.
                ``(4) Bureau school.--The term `Bureau school' means a
            Bureau-operated elementary or secondary day or boarding school
            or a Bureau-operated dormitory for students attending a school
            other than a Bureau school.
                ``(5) 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.

    [[Page 115 STAT. 2062]]

                ``(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

    [[Page 115 STAT. 2063]]

                    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. <<NOTE: 25 USC 2501.>>  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 toward 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

    [[Page 115 STAT. 2064]]

                ``(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. <<NOTE: 25 USC 2502.>>  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 one grant may be provided under this

    [[Page 115 STAT. 2065]]

            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 one 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

    [[Page 115 STAT. 2066]]

            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. <<NOTE: 25 USC 2503.>>  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;

    [[Page 115 STAT. 2067]]

                              ``(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

    [[Page 115 STAT. 2068]]

                          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. <<NOTE: 25 USC 2504.>>  ELIGIBILITY FOR GRANTS.

        ``(a) Rules.--

    [[Page 115 STAT. 2069]]

                ``(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.

    [[Page 115 STAT. 2070]]

                        ``(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;

    [[Page 115 STAT. 2071]]

                                        ``(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;

    [[Page 115 STAT. 2072]]

                        ``(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. <<NOTE: 25 USC 2505.>>  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.--

    [[Page 115 STAT. 2073]]

                        ``(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) <<NOTE: Deadline.>>  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 one 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

    [[Page 115 STAT. 2074]]

                          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. <<NOTE: 25 USC 2506.>>  PAYMENT OF GRANTS; INVESTMENT OF
                FUNDS.

        ``(a) Payments.--
                ``(1) In general.--Except as otherwise provided in this
            subsection, the Secretary shall make payments to grantees under
            this part in two payments, of which--
                        ``(A) the first payment shall be made not later than
                    July 1 of each year in an amount equal to 80 percent

    [[Page 115 STAT. 2075]]

                    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) <<NOTE: Deadline.>>  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

    [[Page 115 STAT. 2076]]

                        ``(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. <<NOTE: 25 USC 2507.>>  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

    [[Page 115 STAT. 2077]]

    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. <<NOTE: 25 USC 2508.>>  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. <<NOTE: 25 USC 2509.>>  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.

    [[Page 115 STAT. 2078]]

    ``SEC. 5211. <<NOTE: 25 USC 2510.>>  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. <<NOTE: 25 USC 2511.>>  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

    [[Page 115 STAT. 2079]]

            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 one 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,

    [[Page 115 STAT. 2080]]

            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) <<NOTE: 20 USC 1021-1030.>>  by striking ``this title''
            each place it appears and inserting ``this part''; and
                (3) by adding at the end the following:

    [[Page 115 STAT. 2081]]

            ``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY

    ``SEC. 221. <<NOTE: 20 USC 1041.>>  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 <<NOTE: Grants. Contracts.>>  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. <<NOTE: 20 USC 1042.>>  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

    [[Page 115 STAT. 2082]]

                    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. <<NOTE: 20 USC 1043.>>  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;

    [[Page 115 STAT. 2083]]

                        ``(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. <<NOTE: 20 USC 1044.>>  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. <<NOTE: 20 USC 6301 note.>>  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;

    [[Page 115 STAT. 2084]]

                ``(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

    [[Page 115 STAT. 2085]]

                    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

    [[Page 115 STAT. 2086]]

                                        ``(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.

    [[Page 115 STAT. 2087]]

                        ``(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 <<NOTE: 20 USC 1232d.>>  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.

    [[Page 115 STAT. 2088]]

                (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 <<NOTE: 5 USC 5314 note.>>  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. <<NOTE: 20 USC 3427.>>  (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

    [[Page 115 STAT. 2089]]

    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.) <<NOTE: 20 USC 3420, 3423d, 3473.>>  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).

    [[Page 115 STAT. 2090]]

                (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) of 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. <<NOTE: 20 USC 6052.>>  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--

    [[Page 115 STAT. 2091]]

                (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)--

    [[Page 115 STAT. 2092]]

                        (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), by striking ``198(a)(7)'' and
                    inserting ``9101'';
                        (B) in paragraph (7), by striking ``198(a)(10)'' and
                    inserting ``9101''; and
                        (C) in paragraph (12), 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) <<NOTE: 26 USC 1397E.>>  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.--

    [[Page 115 STAT. 2093]]

                (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--

    [[Page 115 STAT. 2094]]

                (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''.

        Approved January 8, 2002.

    LEGISLATIVE HISTORY--H.R. 1 (S. 1):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 107-63, Pt. 1 (Comm. on Education and the Workforce)
    and 107-334 (Comm. of Conference).
    SENATE REPORTS: No. 107-7 accompanying S. 1 (Comm. on Health, Education,
    Labor, and Pensions).
    CONGRESSIONAL RECORD, Vol. 147 (2001):
                May 17, 22, 23, considered and passed House.
                June 14, considered and passed Senate, amended, in lieu of
                    S. 1.
                Dec. 13, House agreed to conference report.
                Dec. 17, 18, Senate considered and agreed to conference
                    report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
                Jan. 8, Presidential remarks.

                                      <all>