[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Enrolled Bill (ENR)]
H.R.1
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
To close the achievement gap with accountability, flexibility, and
choice, so that no child is left behind.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This title may be cited as the ``No Child Left Behind Act of
2001''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.
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.
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.
TITLE IX--GENERAL PROVISIONS
Sec. 901. General provisions.
TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES
Part A--Repeals
Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.
Part B--Redesignations
Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education
Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.
Part C--Homeless Education
Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.
Part D--Native American Education Improvement
Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian School.
Sec. 1045. Enrollment and general assistance payments.
Part E--Higher Education Act of 1965
Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.
Part F--General Education Provisions Act
Sec. 1061. Student privacy, parental access to information, and
administration of certain physical examinations to minors.
Sec. 1062. Technical corrections.
Part G--Miscellaneous Other Statutes
Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and
Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.).
SEC. 4. TRANSITION.
(a) Multi-Year Awards.--Except as otherwise provided in this Act,
the recipient of a multi-year award under the Elementary and Secondary
Education Act of 1965, as that Act was in effect prior to the date of
enactment of this Act, shall continue to receive funds in accordance
with the terms of that award, except that no additional funds may be
awarded after September 30, 2002.
(b) Planning and Transition.--Notwithstanding any other provision
of law, a recipient of funds under the Elementary and Secondary
Education Act of 1965, as that Act was in effect prior to the date of
enactment of this Act, may use funds available to the recipient under
that predecessor authority to carry out necessary and reasonable
planning and transition activities in order to ensure an orderly
implementation of programs authorized by this Act, and the amendments
made by this Act.
(c) Orderly Transition.--The Secretary shall take such steps as are
necessary to provide for the orderly transition to, and implementation
of, programs authorized by this Act, and by the amendments made by this
Act, from programs authorized by the Elementary and Secondary Education
Act of 1965, as that Act was in effect prior to the date of enactment
of this Act.
SEC. 5. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this Act, this
Act, and the amendments made by this Act, shall be effective upon the
date of enactment of this Act.
(b) Noncompetitive Programs.--With respect to noncompetitive
programs under which any funds are allotted by the Secretary of
Education to recipients on the basis of a formula, this Act, and the
amendments made by this Act, shall take effect on July 1, 2002.
(c) Competitive Programs.--With respect to programs that are
conducted by the Secretary on a competitive basis, this Act, and the
amendments made by this Act, shall take effect with respect to
appropriations for use under those programs for fiscal year 2002.
(d) Impact Aid.--With respect to title VIII (Impact Aid), this Act,
and the amendments made by this Act, shall take effect with respect to
appropriations for use under that title for fiscal year 2002.
SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY EDUCATION ACT OF
1965.
The Act is amended--
(1) in the heading of section 1, by striking ``table of
contents'' and inserting ``short title''; and
(2) by adding after section 1 the following new section:
``SEC. 2. TABLE OF CONTENTS.
``The table of contents for this Act is as follows:
``Sec. 1. Short title.
``Sec. 2. Table of contents.
``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.
``Part A--Improving Basic Programs Operated by Local Educational
Agencies
``Subpart 1--Basic Program Requirements
``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.
``Sec. 1115. Targeted assistance schools.
``Sec. 1116. Academic assessment and local educational agency and school
improvement.
``Sec. 1117. School support and recognition.
``Sec. 1118. Parental involvement.
``Sec. 1119. Qualifications for teachers and paraprofessionals.
``Sec. 1120. Participation of children enrolled in private schools.
``Sec. 1120A. Fiscal requirements.
``Sec. 1120B. Coordination requirements.
``Subpart 2--Allocations
``Sec. 1121. Grants for the outlying areas and the Secretary of the
Interior.
``Sec. 1122. Allocations to States.
``Sec. 1124. Basic grants to local educational agencies.
``Sec. 1124A. Concentration grants to local educational agencies.
``Sec. 1125. Targeted grants to local educational agencies.
``Sec. 1125AA. Adequacy of funding of targeted grants to local
educational agencies in fiscal years after fiscal year 2001.
``Sec. 1125A. Education finance incentive grant program.
``Sec. 1126. Special allocation procedures.
``Sec. 1127. Carryover and waiver.
``Part B--Student Reading Skills Improvement Grants
``Subpart 1--Reading First
``Sec. 1201. Purposes.
``Sec. 1202. Formula grants to State educational agencies.
``Sec. 1203. State formula grant applications.
``Sec. 1204. Targeted assistance grants.
``Sec. 1205. External evaluation.
``Sec. 1206. National activities.
``Sec. 1207. Information dissemination.
``Sec. 1208. Definitions.
``Subpart 2--Early Reading First
``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local Early Reading First grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.
``Subpart 3--William F. Goodling Even Start Family Literacy Programs
``Sec. 1231. Statement of purpose.
``Sec. 1232. Program authorized.
``Sec. 1233. State educational agency programs.
``Sec. 1234. Uses of funds.
``Sec. 1235. Program elements.
``Sec. 1236. Eligible participants.
``Sec. 1237. Applications.
``Sec. 1238. Award of subgrants.
``Sec. 1239. Evaluation.
``Sec. 1240. Indicators of program quality.
``Sec. 1241. Research.
``Sec. 1242. Construction.
``Subpart 4--Improving Literacy Through School Libraries
``Sec. 1251. Improving literacy through school libraries.
``Part C--Education of Migratory Children
``Sec. 1301. Program purpose.
``Sec. 1302. Program authorized.
``Sec. 1303. State allocations.
``Sec. 1304. State applications; services.
``Sec. 1305. Secretarial approval; peer review.
``Sec. 1306. Comprehensive needs assessment and service-delivery plan;
authorized activities.
``Sec. 1307. Bypass.
``Sec. 1308. Coordination of migrant education activities.
``Sec. 1309. Definitions.
``Part D--Prevention and Intervention Programs for Children and Youth
who are Neglected, Delinquent, or At-risk
``Sec. 1401. Purpose and program authorization.
``Sec. 1402. Payments for programs under this part.
``Subpart 1--State Agency Programs
``Sec. 1411. Eligibility.
``Sec. 1412. Allocation of funds.
``Sec. 1413. State reallocation of funds.
``Sec. 1414. State plan and State agency applications.
``Sec. 1415. Use of funds.
``Sec. 1416. Institution-wide projects.
``Sec. 1417. Three-year programs or projects.
``Sec. 1418. Transition services.
``Sec. 1419. Evaluation; technical assistance; annual model program.
``Subpart 2--Local Agency Programs
``Sec. 1421. Purpose.
``Sec. 1422. Programs operated by local educational agencies.
``Sec. 1423. Local educational agency applications.
``Sec. 1424. Uses of funds.
``Sec. 1425. Program requirements for correctional facilities receiving
funds under this section.
``Sec. 1426. Accountability.
``Subpart 3--General Provisions
``Sec. 1431. Program evaluations.
``Sec. 1432. Definitions.
``Part E--National Assessment of Title I
``Sec. 1501. Evaluations.
``Sec. 1502. Demonstrations of innovative practices.
``Sec. 1503. Assessment evaluation.
``Sec. 1504. Close Up fellowship program.
``Part F--Comprehensive School Reform
``Sec. 1601. Purpose.
``Sec. 1602. Program authorization.
``Sec. 1603. State applications.
``Sec. 1604. State use of funds.
``Sec. 1605. Local applications.
``Sec. 1606. Local use of funds.
``Sec. 1607. Evaluation and reports.
``Sec. 1608. Quality initiatives.
``Part G--Advanced Placement Programs
``Sec. 1701. Short title.
``Sec. 1702. Purposes.
``Sec. 1703. Funding distribution rule.
``Sec. 1704. Advanced placement test fee program.
``Sec. 1705. Advanced placement incentive program grants.
``Sec. 1706. Supplement, not supplant.
``Sec. 1707. Definitions.
``Part H--School Dropout Prevention
``Sec. 1801. Short title.
``Sec. 1802. Purpose.
``Sec. 1803. Authorization of appropriations.
``Subpart 1--Coordinated National Strategy
``Sec. 1811. National activities.
``Subpart 2--School Dropout Prevention Initiative
``Sec. 1821. Definitions.
``Sec. 1822. Program authorized.
``Sec. 1823. Applications.
``Sec. 1824. State reservation.
``Sec. 1825. Strategies and capacity building.
``Sec. 1826. Selection of local educational agencies for subgrants.
``Sec. 1827. Community based organizations.
``Sec. 1828. Technical assistance.
``Sec. 1829. School dropout rate calculation.
``Sec. 1830. Reporting and accountability.
``Part I--General Provisions
``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or
control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.
``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS
AND PRINCIPALS
``Part A--Teacher and Principal Training and Recruiting Fund
``Sec. 2101. Purpose.
``Sec. 2102. Definitions.
``Sec. 2103. Authorizations of appropriations.
``Subpart 1--Grants to States
``Sec. 2111. Allotments to States.
``Sec. 2112. State applications.
``Sec. 2113. State use of funds.
``Subpart 2--Subgrants to Local Educational Agencies
``Sec. 2121. Allocations to local educational agencies.
``Sec. 2122. Local applications and needs assessment.
``Sec. 2123. Local use of funds.
``Subpart 3--Subgrants to Eligible Partnerships
``Sec. 2131. Definitions.
``Sec. 2132. Subgrants.
``Sec. 2133. Applications.
``Sec. 2134. Use of funds.
``Subpart 4--Accountability
``Sec. 2141. Technical assistance and accountability.
``Subpart 5--National Activities
``Sec. 2151. National activities of demonstrated effectiveness.
``Part B--Mathematics and Science Partnerships
``Sec. 2201. Purpose; definitions.
``Sec. 2202. Grants for mathematics and science partnerships.
``Sec. 2203. Authorization of appropriations.
``Part C--Innovation for Teacher Quality
``Subpart 1--Transitions to Teaching
``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM
``Sec. 2301. Definitions.
``Sec. 2302. Authorization of Troops-to-Teachers Program.
``Sec. 2303. Recruitment and selection of program participants.
``Sec. 2304. Participation agreement and financial assistance.
``Sec. 2305. Participation by States.
``Sec. 2306. Support of innovative preretirement teacher certification
programs.
``Sec. 2307. Reporting requirements.
``CHAPTER B--TRANSITION TO TEACHING PROGRAM
``Sec. 2311. Purposes.
``Sec. 2312. Definitions.
``Sec. 2313. Grant program.
``Sec. 2314. Evaluation and accountability for recruiting and retaining
teachers.
``CHAPTER C--GENERAL PROVISIONS
``Sec. 2321. Authorization of appropriations.
``Subpart 2--National Writing Project
``Sec. 2331. Purposes.
``Sec. 2332. National Writing Project.
``Subpart 3--Civic Education
``Sec. 2341. Short title.
``Sec. 2342. Purpose.
``Sec. 2343. General authority.
``Sec. 2344. We the People program.
``Sec. 2345. Cooperative civic education and economic education exchange
programs.
``Sec. 2346. Authorization of appropriations.
``Subpart 4--Teaching of Traditional American History
``Sec. 2351. Establishment of program.
``Sec. 2352. Authorization of appropriations.
``Subpart 5--Teacher Liability Protection
``Sec. 2361. Short title.
``Sec. 2362. Purpose.
``Sec. 2363. Definitions.
``Sec. 2364. Applicability.
``Sec. 2365. Preemption and election of State nonapplicability.
``Sec. 2366. Limitation on liability for teachers.
``Sec. 2367. Allocation of responsibility for noneconomic loss.
``Sec. 2368. Effective date.
``Part D--Enhancing Education Through Technology
``Sec. 2401. Short title.
``Sec. 2402. Purposes and goals.
``Sec. 2403. Definitions.
``Sec. 2404. Authorization of appropriations.
``Subpart 1--State and Local Technology Grants
``Sec. 2411. Allotment and reallotment.
``Sec. 2412. Use of allotment by State.
``Sec. 2413. State applications.
``Sec. 2414. Local applications.
``Sec. 2415. State activities.
``Sec. 2416. Local activities.
``Subpart 2--National Technology Activities
``Sec. 2421. National activities.
``Sec. 2422. National education technology plan.
``Subpart 3--Ready-to-Learn Television
``Sec. 2431. Ready-to-Learn Television.
``Subpart 4--Limitation on Availability of Certain Funds for Schools
``Sec. 2441. Internet safety.
``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
``Sec. 3001. Authorizations of appropriations; condition on
effectiveness of parts.
``Part A--English Language Acquisition, Language Enhancement, and
Academic Achievement Act
``Sec. 3101. Short title.
``Sec. 3102. Purposes.
``Subpart 1--Grants and Subgrants for English Language Acquisition and
Language Enhancement
``Sec. 3111. Formula grants to States.
``Sec. 3112. Native American and Alaska Native children in school.
``Sec. 3113. State and specially qualified agency plans.
``Sec. 3114. Within-State allocations.
``Sec. 3115. Subgrants to eligible entities.
``Sec. 3116. Local plans.
``Subpart 2--Accountability and Administration
``Sec. 3121. Evaluations.
``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.
``Subpart 3--National Activities
``Sec. 3131. National professional development project.
``Subpart 4--Definitions
``Sec. 3141. Eligible entity.
``Part B--Improving Language Instruction Educational Programs
``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.
``Subpart 1--Program Development and Enhancement
``Sec. 3211. Financial assistance for language instruction educational
programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.
``Subpart 2--Research, Evaluation, and Dissemination
``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.
``Subpart 3--Professional Development
``Sec. 3231. Professional development grants.
``Subpart 4--Emergency Immigrant Education Program
``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.
``Subpart 5--Administration
``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.
``Part C--General Provisions
``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.
``TITLE IV--21ST CENTURY SCHOOLS
``Part A--Safe and Drug-Free Schools and Communities
``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.
``Subpart 1--State Grants
``Sec. 4111. Reservations and allotments.
``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.
``Subpart 2--National Programs
``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory
Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.
``Subpart 3--Gun Possession
``Sec. 4141. Gun-free requirements.
``Subpart 4--General Provisions
``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.
``Part B--21st Century Community Learning Centers
``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.
``Part C--Environmental Tobacco Smoke
``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.
``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
``Part A--Innovative Programs
``Sec. 5101. Purposes, State and local responsibility.
``Subpart 1--State and Local Programs
``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.
``Subpart 2--State Programs
``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.
``Subpart 3--Local Innovative Education Programs
``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.
``Subpart 4--General Provisions
``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.
``Part B--Public Charter Schools
``Subpart 1--Charter School Programs
``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for
successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.
``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
Facility Acquisition, Construction, and Renovation
``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.
``Subpart 3--Voluntary Public School Choice Programs
``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.
``Part C--Magnet Schools Assistance
``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.
``Part D--Fund for the Improvement of Education
``Sec. 5401. Authorization of appropriations.
``Subpart 1--Fund for the Improvement of Education
``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.
``Subpart 2--Elementary and Secondary School Counseling Programs
``Sec. 5421. Elementary and secondary school counseling programs.
``Subpart 3--Partnerships in Character Education
``Sec. 5431. Partnerships in Character Education program.
``Subpart 4--Smaller Learning Communities
``Sec. 5441. Smaller learning communities.
``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution
Program
``Sec. 5451. Inexpensive book distribution program for reading
motivation.
``Subpart 6--Gifted and Talented Students
``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.
``Subpart 7--Star Schools Program
``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.
``Subpart 8--Ready to Teach
``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.
``Subpart 9--Foreign Language Assistance Program
``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.
``Subpart 10--Physical Education
``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.
``Subpart 11--Community Technology Centers
``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.
``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange
Programs for Alaska Natives, Native Hawaiians, and Their Historical
Whaling and Trading Partners in Massachusetts
``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.
``Subpart 13--Excellence in Economic Education
``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.
``Subpart 14--Grants to Improve the Mental Health of Children
``Sec. 5541. Grants for the integration of schools and mental health
systems.
``Sec. 5542. Promotion of school readiness through early childhood
emotional and social development.
``Subpart 15--Arts in Education
``Sec. 5551. Assistance for arts education.
``Subpart 16--Parental Assistance and Local Family Information Centers
``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.
``Subpart 17--Combatting Domestic Violence
``Sec. 5571. Grants to combat the impact of experiencing or witnessing
domestic violence on elementary and secondary school children.
``Subpart 18--Healthy, High-Performance Schools
``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.
``Subpart 19--Grants for Capital Expenses of Providing Equitable
Services for Private School Students
``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. 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.
``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.
``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.
``Sec. 9306. Other general assurances.
``Part D--Waivers
``Sec. 9401. Waivers of statutory and regulatory requirements.
``Part E--Uniform Provisions
``Subpart 1--Private Schools
``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school
children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or
instruction.
``Sec. 9506. Private, religious, and home schools.
``Subpart 2--Other Provisions
``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal
funds.
``Sec. 9528. Armed Forces recruiter access to students and student
recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for
teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.
``Part F--Evaluations
``Sec. 9601. Evaluations.''.
TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED.
Title I of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.) is amended to read as follows:
``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``SEC. 1001. STATEMENT OF PURPOSE.
``The purpose of this title is to ensure that all children have a
fair, equal, and significant opportunity to obtain a high-quality
education and reach, at a minimum, proficiency on challenging State
academic achievement standards and state academic assessments. This
purpose can be accomplished by--
``(1) ensuring that high-quality academic assessments,
accountability systems, teacher preparation and training,
curriculum, and instructional materials are aligned with
challenging State academic standards so that students, teachers,
parents, and administrators can measure progress against common
expectations for student academic achievement;
``(2) meeting the educational needs of low-achieving children
in our Nation's highest-poverty schools, limited English proficient
children, migratory children, children with disabilities, Indian
children, neglected or delinquent children, and young children in
need of reading assistance;
``(3) closing the achievement gap between high- and low-
performing children, especially the achievement gaps between
minority and nonminority students, and between disadvantaged
children and their more advantaged peers;
``(4) holding schools, local educational agencies, and States
accountable for improving the academic achievement of all students,
and identifying and turning around low-performing schools that have
failed to provide a high-quality education to their students, while
providing alternatives to students in such schools to enable the
students to receive a high-quality education;
``(5) distributing and targeting resources sufficiently to make
a difference to local educational agencies and schools where needs
are greatest;
``(6) improving and strengthening accountability, teaching, and
learning by using State assessment systems designed to ensure that
students are meeting challenging State academic achievement and
content standards and increasing achievement overall, but
especially for the disadvantaged;
``(7) providing greater decisionmaking authority and
flexibility to schools and teachers in exchange for greater
responsibility for student performance;
``(8) providing children an enriched and accelerated
educational program, including the use of schoolwide programs or
additional services that increase the amount and quality of
instructional time;
``(9) promoting schoolwide reform and ensuring the access of
children to effective, scientifically based instructional
strategies and challenging academic content;
``(10) significantly elevating the quality of instruction by
providing staff in participating schools with substantial
opportunities for professional development;
``(11) coordinating services under all parts of this title with
each other, with other educational services, and, to the extent
feasible, with other agencies providing services to youth,
children, and families; and
``(12) affording parents substantial and meaningful
opportunities to participate in the education of their children.
``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.
``(a) Local Educational Agency Grants.--For the purpose of carrying
out part A, there are authorized to be appropriated--
``(1) $13,500,000,000 for fiscal year 2002;
``(2) $16,000,000,000 for fiscal year 2003;
``(3) $18,500,000,000 for fiscal year 2004;
``(4) $20,500,000,000 for fiscal year 2005;
``(5) $22,750,000,000 for fiscal year 2006; and
``(6) $25,000,000,000 for fiscal year 2007.
``(b) Reading First.--
``(1) Reading first.--For the purpose of carrying out subpart 1
of part B, there are authorized to be appropriated $900,000,000 for
fiscal year 2002 and such sums as may be necessary for each of the
5 succeeding fiscal years.
``(2) Early reading first.--For the purpose of carrying out
subpart 2 of part B, there are authorized to be appropriated
$75,000,000 for fiscal year 2002 and such sums as may be necessary
for each of the 5 succeeding fiscal years.
``(3) Even start.--For the purpose of carrying out subpart 3 of
part B, there are authorized to be appropriated $260,000,000 for
fiscal year 2002 and such sums as may be necessary for each of the
5 succeeding fiscal years.
``(4) Improving literacy through school libraries.--For the
purpose of carrying out subpart 4 of part B, there are authorized
to be appropriated $250,000,000 for fiscal year 2002 and such sums
as may be necessary for each of the 5 succeeding fiscal years.
``(c) Education of Migratory Children.--For the purpose of carrying
out part C, there are authorized to be appropriated $410,000,000 for
fiscal year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``(d) Prevention and Intervention Programs for Youth Who Are
Neglected, Delinquent, or at Risk.--For the purpose of carrying out
part D, there are authorized to be appropriated $50,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``(e) Federal Activities.--
``(1) Sections 1501 and 1502.--For the purpose of carrying out
sections 1501 and 1502, there are authorized to be appropriated
such sums as may be necessary for fiscal year 2002 and each of the
5 succeeding fiscal years.
``(2) Section 1504.--
``(A) In general.--For the purpose of carrying out section
1504, there are authorized to be appropriated such sums as may
be necessary for fiscal year 2002 and for each of the 5
succeeding fiscal years.
``(B) Special rule.--Of the funds appropriated pursuant to
subparagraph (A), not more than 30 percent may be used for
teachers associated with students participating in the programs
described in subsections (a)(1), (b)(1), and (c)(1).
``(f) Comprehensive School Reform.--For the purpose of carrying out
part F, there are authorized to be appropriated such sums as may be
necessary for fiscal year 2002 and each of the 5 succeeding fiscal
years.
``(g) Advanced Placement.--For the purposes of carrying out part G,
there are authorized to be appropriated such sums for fiscal year 2002
and each 5 succeeding fiscal year.
``(h) School Dropout Prevention.--For the purpose of carrying out
part H, there are authorized to be appropriated $125,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years, of which--
``(1) up to 10 percent shall be available to carry out subpart
1 of part H for each fiscal year; and
``(2) the remainder shall be available to carry out subpart 2
of part H for each fiscal year.
``(i) School Improvement.--For the purpose of carrying out section
1003(g), there are authorized to be appropriated $500,000,000 for
fiscal year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``SEC. 1003. SCHOOL IMPROVEMENT.
``(a) State Reservations.--Each State shall reserve 2 percent of
the amount the State receives under subpart 2 of part A for fiscal
years 2002 and 2003, and 4 percent of the amount received under such
subpart for fiscal years 2004 through 2007, to carry out subsection (b)
and to carry out the State's responsibilities under sections 1116 and
1117, including carrying out the State educational agency's statewide
system of technical assistance and support for local educational
agencies.
``(b) Uses.--Of the amount reserved under subsection (a) for any
fiscal year, the State educational agency--
``(1) shall allocate not less than 95 percent of that amount
directly to local educational agencies for schools identified for
school improvement, corrective action, and restructuring, for
activities under section 1116(b); or
``(2) may, with the approval of the local educational agency,
directly provide for these activities or arrange for their
provision through other entities such as school support teams or
educational service agencies.
``(c) Priority.--The State educational agency, in allocating funds
to local educational agencies under this section, shall give priority
to local educational agencies that--
``(1) serve the lowest-achieving schools;
``(2) demonstrate the greatest need for such funds; and
``(3) demonstrate the strongest commitment to ensuring that
such funds are used to enable the lowest-achieving schools to meet
the progress goals in school improvement plans under section 1116
(b)(3)(A)(v).
``(d) Unused Funds.--If, after consultation with local educational
agencies in the State, the State educational agency determines that the
amount of funds reserved to carry out subsection (b) is greater than
the amount needed to provide the assistance described in that
subsection, the State educational agency shall allocate the excess
amount to local educational agencies in accordance with--
``(1) the relative allocations the State educational agency
made to those agencies for that fiscal year under subpart 2 of part
A; or
``(2) section 1126(c).
``(e) Special Rule.--Notwithstanding any other provision of this
section, the amount of funds reserved by the State educational agency
under subsection (a) in any fiscal year shall not decrease the amount
of funds each local educational agency receives under subpart 2 below
the amount received by such local educational agency under such subpart
for the preceding fiscal year.
``(f) Reporting.--The State educational agency shall make publicly
available a list of those schools that have received funds or services
pursuant to subsection (b) and the percentage of students from each
school from families with incomes below the poverty line.
``(g) Assistance for Local School Improvement.--
``(1) Program authorized.--The Secretary shall award grants to
States to enable the States to provide subgrants to local
educational agencies for the purpose of providing assistance for
school improvement consistent with section 1116.
``(2) State allotments.--Such grants shall be allotted among
States, the Bureau of Indian Affairs, and the outlying areas, in
proportion to the funds received by the States, the Bureau of
Indian Affairs, and the outlying areas, respectively, for the
fiscal year under parts A, C, and D of this title. The Secretary
shall expeditiously allot a portion of such funds to States for the
purpose of assisting local educational agencies and schools that
were in school improvement status on the date preceding the date of
enactment of the No Child Left Behind Act of 2001.
``(3) Reallocations.--If a State does not receive funds under
this subsection, the Secretary shall reallocate such funds to other
States in the same proportion funds are allocated under paragraph
(2).
``(4) State applications.--Each State educational agency that
desires to receive funds under this subsection shall submit an
application to the Secretary at such time, and containing such
information, as the Secretary shall reasonably require, except that
such requirement shall be waived if a State educational agency
submitted such information as part of its State plan under this
part. Each State application shall describe how the State
educational agency will allocate such funds in order to assist the
State educational agency and local educational agencies in
complying with school improvement, corrective action, and
restructuring requirements of section 1116.
``(5) Local educational agency grants.--A grant to a local
educational agency under this subsection shall be--
``(A) of sufficient size and scope to support the
activities required under sections 1116 and 1117, but not less
than $50,000 and not more than $500,000 for each participating
school;
``(B) integrated with other funds awarded by the State
under this Act; and
``(C) renewable for 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 through
other entities such as school support teams or educational service
agencies.
``(8) Administrative costs.--A State educational agency that
receives a grant award under this subsection may reserve not more
than 5 percent of such grant funds for administration, evaluation,
and technical assistance expenses.
``(9) Local awards.--Each local educational agency that applies
for assistance under this subsection shall describe how it will
provide the lowest-achieving schools the resources necessary to
meet goals under school and local educational agency improvement,
corrective action, and restructuring plans under section 1116.
``SEC. 1004. STATE ADMINISTRATION.
``(a) In General.--Except as provided in subsection (b), to carry
out administrative duties assigned under parts A, C, and D of this
title, each State may reserve the greater of--
``(1) 1 percent of the amounts received under such parts; or
``(2) $400,000 ($50,000 in the case of each outlying area).
``(b) Exception.--If the sum of the amounts appropriated for parts
A, C, and D of this title is equal to or greater than $14,000,000,000,
then the reservation described in subsection (a)(1) shall not exceed 1
percent of the amount the State would receive, if $14,000,000,000 were
allocated among the States for parts A, C, and D of this title.
``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES
``Subpart 1--Basic Program Requirements
``SEC. 1111. STATE PLANS.
``(a) Plans Required.--
``(1) In general.--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 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 elementary schools,
and public secondary schools make adequate yearly progress as
defined under this paragraph. Each State accountability system
shall--
``(i) be based on the academic standards and academic
assessments adopted under paragraphs (1) and (3), and other
academic indicators consistent with subparagraph (C)(vi)
and (vii), and shall take into account the achievement of
all public elementary school and secondary school students;
``(ii) be the same accountability system the State uses
for all public elementary schools and secondary schools or
all local educational agencies in the State, except that
public elementary schools, secondary schools, and local
educational agencies not participating under this part are
not subject to the requirements of section 1116; and
``(iii) include sanctions and rewards, such as bonuses
and recognition, the State will use to hold local
educational agencies and public elementary schools and
secondary schools accountable for student achievement and
for ensuring that they make adequate yearly progress in
accordance with the State's definition under subparagraphs
(B) and (C).
``(B) Adequate yearly progress.--Each State plan shall
demonstrate, based on academic assessments described in
paragraph (3), and in accordance with this paragraph, what
constitutes adequate yearly progress of the State, and of all
public elementary schools, secondary schools, and local
educational agencies in the State, toward enabling all public
elementary school and secondary school students to meet the
State's student academic achievement standards, while working
toward the goal of narrowing the achievement gaps in the State,
local educational agencies, and schools.
``(C) Definition.--`Adequate yearly progress' shall be
defined by the State in a manner that--
``(i) applies the same high standards of academic
achievement to all public elementary school and secondary
school students in the State;
``(ii) is statistically valid and reliable;
``(iii) results in continuous and substantial academic
improvement for all students;
``(iv) measures the progress of public elementary
schools, secondary schools and local educational agencies
and the State based primarily on the academic assessments
described in paragraph (3);
``(v) includes separate measurable annual objectives
for continuous and substantial improvement for each of the
following:
``(I) The achievement of all public elementary
school and secondary school students.
``(II) The achievement of--
``(aa) economically disadvantaged students;
``(bb) students from major racial and ethnic
groups;
``(cc) students with disabilities; and
``(dd) students with limited English
proficiency;
except that disaggregation of data under subclause (II)
shall not be required in a case in which the number of
students in a category is insufficient to yield
statistically reliable information or the results would
reveal personally identifiable information about an
individual student;
``(vi) in accordance with subparagraph (D), includes
graduation rates for public secondary school students
(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 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
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--
``(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) beginning not later than school year 2005-2006,
measure the achievement of students against the challenging
State academic content and student academic achievement
standards in each of grades 3 through 8 in, at a minimum,
mathematics, and reading or language arts, except that the
Secretary may provide the State 1 additional year if the
State demonstrates that exceptional or uncontrollable
circumstances, such as a natural disaster or a precipitous
and unforeseen decline in the financial resources of the
State, prevented full implementation of the academic
assessments by that deadline and that the State will
complete implementation within the additional 1-year
period;
``(viii) at the discretion of the State, measure the
proficiency of students in academic subjects not described
in clauses (v), (vi), (vii) in which the State has adopted
challenging academic content and academic achievement
standards;
``(ix) provide for--
``(I) the participation in such assessments of all
students;
``(II) the reasonable adaptations and
accommodations for students with disabilities (as
defined under section 602(3) of the Individuals with
Disabilities Education Act) necessary to measure the
academic achievement of such students relative to State
academic content and State student academic achievement
standards; and
``(III) the inclusion of limited English proficient
students, who shall be assessed in a valid and reliable
manner and provided reasonable accommodations on
assessments administered to such students under this
paragraph, including, to the extent practicable,
assessments in the language and form most likely to
yield accurate data on what such students know and can
do in academic content areas, until such students have
achieved English language proficiency as determined
under paragraph (7);
``(x) notwithstanding subclause (III), the academic
assessment (using tests written in English) of reading or
language arts of any student who has attended school in the
United States (not including Puerto Rico) for 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 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 and secondary schools, then the
State educational agency may meet the requirements of this
subsection by--
``(A) adopting academic standards and academic assessments
that meet the requirements of this subsection, on a statewide
basis, and limiting their applicability to students served
under this part; or
``(B) adopting and implementing policies that ensure that
each local educational agency in the State that receives grants
under this part will adopt curriculum content and student
academic achievement standards, and academic assessments
aligned with such standards, which--
``(i) meet all of the criteria in this subsection and
any regulations regarding such standards and assessments
that the Secretary may publish; and
``(ii) are applicable to all students served by each
such local educational agency.
``(6) Language assessments.--Each State plan shall identify the
languages other than English that are present in the participating
student population and indicate the languages for which yearly
student academic assessments are not available and are needed. The
State shall make every effort to develop such assessments and may
request assistance from the Secretary if linguistically accessible
academic assessment measures are needed. Upon request, the
Secretary shall assist with the identification of appropriate
academic assessment measures in the needed languages, but shall not
mandate a specific academic assessment or mode of instruction.
``(7) Academic assessments of english language proficiency.--
Each State plan shall demonstrate that local educational agencies
in the State will, beginning not later than school year 2002-2003,
provide for an annual assessment of English proficiency (measuring
students' oral language, reading, and writing skills in English) of
all students with limited English proficiency in the schools served
by the State 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 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) 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) the State will, beginning in school year 2002-2003,
participate in biennial State academic assessments of 4th and 8th
grade reading and mathematics under the National Assessment of
Educational Progress carried out under section 411(b)(2) of the
National Education Statistics Act of 1994 if the Secretary pays the
costs of administering such assessments;
``(3) the State educational agency, in consultation with the
Governor, will include, as a component of the State plan, a plan to
carry out the responsibilities of the State under sections 1116 and
1117, including carrying out the State educational agency's
statewide system of technical assistance and support for local
educational agencies;
``(4) the State educational agency will work with other
agencies, including educational service agencies or other local
consortia, and institutions to provide technical assistance to
local educational agencies and schools, including technical
assistance in providing professional development under section
1119, technical assistance under section 1117, and technical
assistance relating to parental involvement under section 1118;
``(5)(A) where educational service agencies exist, the State
educational agency will consider providing professional development
and technical assistance through such agencies; and
``(B) where educational service agencies do not exist, the
State educational agency will consider providing professional
development and technical assistance through other cooperative
agreements such as through a consortium of local educational
agencies;
``(6) the State educational agency will notify local
educational agencies and the public of the content and student
academic achievement standards and academic assessments developed
under this section, and of the authority to operate schoolwide
programs, and will fulfill the State educational agency's
responsibilities regarding local educational agency improvement and
school improvement under section 1116, including such corrective
actions as are necessary;
``(7) the State educational agency will provide the least
restrictive and burdensome regulations for local educational
agencies and individual schools participating in a program assisted
under this part;
``(8) the State educational agency will inform the Secretary
and the public of how Federal laws, if at all, hinder the ability
of States to hold local educational agencies and schools
accountable for student academic achievement;
``(9) the State educational agency will encourage schools to
consolidate funds from other Federal, State, and local sources for
schoolwide reform in schoolwide programs under section 1114;
``(10) the State educational agency will modify or eliminate
State fiscal and accounting barriers so that schools can easily
consolidate funds from other Federal, State, and local sources for
schoolwide programs under section 1114;
``(11) the State educational agency has involved the committee
of practitioners established under section 1903(b) in developing
the plan and monitoring its implementation;
``(12) the State educational agency will inform local
educational agencies in the State of the local educational agency's
authority to transfer funds under title VI, to obtain waivers under
part D of title IX, and, if the State is an Ed-Flex Partnership
State, to obtain waivers under the Education Flexibility
Partnership Act of 1999;
``(13) the State educational agency will coordinate activities
funded under this part with other Federal activities as
appropriate; and
``(14) the State educational agency will encourage local
educational agencies and individual schools participating in a
program assisted under this part to offer family literacy services
(using funds under this part), if the agency or school determines
that a substantial number of students served under this part by the
agency or school have parents who do not have a secondary school
diploma or its recognized equivalent or who have low levels of
literacy.
``(d) Parental Involvement.--Each State plan shall describe how the
State 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) establish a peer-review process to assist in the
review of State plans;
``(B) appoint individuals to the peer-review process who
are representative of parents, teachers, State educational
agencies, and local educational agencies, and who are familiar
with educational standards, assessments, accountability, the
needs of low-performing schools, and other educational needs of
students;
``(C) approve a State plan within 120 days of its
submission unless the Secretary determines that the plan does
not meet the requirements of this section;
``(D) if the Secretary determines that the State plan does
not meet the requirements of subsection (a), (b), or (c),
immediately notify the State of such determination and the
reasons for such determination;
``(E) not decline to approve a State's plan before--
``(i) offering the State an opportunity to revise its
plan;
``(ii) providing technical assistance in order to
assist the State to meet the requirements of subsections
(a), (b), and (c); and
``(iii) providing a hearing; and
``(F) have the authority to disapprove a State plan for not
meeting the requirements of this part, but shall not have the
authority to require a State, as a condition of approval of the
State plan, to include in, or delete from, such plan one or
more specific elements of the State's academic content
standards or to use specific academic assessment instruments or
items.
``(2) State revisions.--A State 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
``(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) In general.--Not later than the beginning of the
2002-2003 school year, unless the State has received a 1-year
extension pursuant to subsection (c)(1), a State that receives
assistance under this part shall prepare and disseminate an
annual State report card.
``(B) Implementation.--The State report card shall be--
``(i) concise; and
``(ii) presented in an understandable and uniform
format and, to the extent practicable, provided in a
language that the parents can understand.
``(C) Required information.--The State shall include in its
annual State report card--
``(i) information, in the aggregate, on student
achievement at each proficiency level on the State academic
assessments described in subsection (b)(3) (disaggregated
by race, ethnicity, gender, disability status, migrant
status, English proficiency, and status as economically
disadvantaged, except that such disaggregation shall not be
required in a case in which the number of students in a
category is insufficient to yield statistically reliable
information or the results would reveal personally
identifiable information about an individual student);
``(ii) information that provides a comparison between
the actual achievement levels of each group of students
described in subsection (b)(2)(C)(v) and the State's annual
measurable objectives for each such group of students on
each of the academic assessments required under this part;
``(iii) the percentage of students not tested
(disaggregated by the same categories and subject to the
same exception described in clause (i));
``(iv) the most recent 2-year trend in student
achievement in each subject area, and for each grade level,
for which assessments under this section are required;
``(v) aggregate information on any other indicators
used by the State to determine the adequate yearly progress
of students in achieving State academic achievement
standards;
``(vi) graduation rates for secondary school students
consistent with subsection (b)(2)(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
``(vii) a clear and concise description of the State's
accountability system, including a description of the
criteria by which the State evaluates school performance,
and the criteria that the State has established, consistent
with subsection (b)(2), to determine the status of schools
regarding school improvement, corrective action, and
restructuring.
``(2) Annual local educational agency report cards.--
``(A) Report cards.--
``(i) In general.--Not later than the beginning of the
2002-2003 school year, a local educational agency that
receives assistance under this part shall prepare and
disseminate an annual local educational agency report card,
except that the State 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 such information
is included in the annual State report card.
``(D) Data.--A local educational agency or school shall
only include in its annual local educational agency report card
data that are sufficient to yield statistically reliable
information, as determined by the State, and that do not reveal
personally identifiable information about an individual
student.
``(E) Public dissemination.--The local educational agency
shall, not later than the beginning of the 2002-2003 school
year, unless the local educational agency has received a 1-year
extension pursuant to subparagraph (A), publicly disseminate
the information described in this paragraph to all schools in
the school district served by the local educational agency and
to all parents of students attending those schools in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand, and make the information widely available through
public means, such as posting on the Internet, distribution to
the media, and distribution through public agencies, except
that if a local educational agency issues a report card for all
students, the local educational agency may include the
information under this section as part of such report.
``(3) Preexisting report cards.--A State educational agency or
local educational agency that was providing public report cards on
the performance of students, schools, local educational agencies,
or the State prior to the enactment of the No Child Left Behind Act
of 2001 may use those report cards for the purpose of this
subsection, so long as any such report card is modified, as may be
needed, to contain the information required by this subsection.
``(4) Annual state report to the secretary.--Each State
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;
``(F) the number of students and schools that participated
in public school choice and supplemental service programs and
activities under this title; and
``(G) beginning not later than the 2002-2003 school year,
information on the quality of teachers and the percentage of
classes being taught by highly qualified teachers in the State,
local educational agency, and school.
``(5) Report to congress.--The Secretary shall transmit
annually to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate a report that provides national
and State-level data on the information collected under paragraph
(4).
``(6) Parents right-to-know.--
``(A) Qualifications.--At the beginning of each school
year, a local educational agency that receives funds under this
part shall notify the parents of each student attending any
school receiving funds under this part that the parents may
request, and the agency will provide the parents on request
(and in a timely manner), information regarding the
professional qualifications of the student's classroom
teachers, including, at a minimum, the following:
``(i) Whether the teacher has met State qualification
and licensing criteria for the grade levels and subject
areas in which the teacher provides instruction.
``(ii) Whether the teacher is teaching under emergency
or other provisional status through which State
qualification or licensing criteria have been waived.
``(iii) The baccalaureate degree major of the teacher
and any other graduate certification or degree held by the
teacher, and the field of discipline of the certification
or degree.
``(iv) Whether the child is provided services by
paraprofessionals and, if so, their qualifications.
``(B) Additional information.--In addition to the
information that parents may request under subparagraph (A), a
school that receives funds under this part shall provide to
each individual parent--
``(i) information on the level of achievement of the
parent's child in each of the State academic assessments as
required under this part; and
``(ii) timely notice that the parent's child has been
assigned, or has been taught for 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 of
high-quality academic assessments, the setting of State standards, the
development of measures of adequate yearly progress that are valid and
reliable, and other relevant areas.
``(k) Voluntary Partnerships.--A State may enter into a voluntary
partnership with another State to develop and implement the academic
assessments and standards required under this section.
``(l) Construction.--Nothing in this part shall be construed to
prescribe the use of the academic assessments described in this part
for student promotion or graduation purposes.
``(m) Special Rule With Respect to Bureau-Funded Schools.--In
determining the assessments to be used by each operated or funded by
BIA school receiving funds under this part, the following shall apply:
``(1) Each such school that is accredited by the State in which
it is operating shall use the assessments the State has developed
and implemented to meet the requirements of this section, or such
other appropriate assessment as approved by the Secretary of the
Interior.
``(2) Each such school that is accredited by a regional
accrediting organization shall adopt an appropriate assessment, in
consultation with and with the approval of, the Secretary of the
Interior and consistent with assessments adopted by other schools
in the same State or region, that meets the requirements of this
section.
``(3) Each such school that is accredited by a tribal
accrediting agency or tribal division of education shall use an
assessment developed by such agency or division, except that the
Secretary of the Interior shall ensure that such assessment meets
the requirements of this section.
``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.
``(a) Plans Required.--
``(1) Subgrants.--A local educational agency may receive a
subgrant under this part for any fiscal year only if such agency
has on file with the State educational agency a plan, approved by
the State educational agency, that is coordinated with other
programs under this Act, the Individuals with Disabilities
Education Act, the Carl D. Perkins Vocational and Technical
Education Act of 1998, the McKinney-Vento Homeless Assistance Act,
and other Acts, as appropriate.
``(2) Consolidated application.--The plan may be submitted as
part of a consolidated application under section 9305.
``(b) Plan Provisions.--
``(1) In general.--In order to help low-achieving children meet
challenging achievement academic standards, each local educational
agency plan shall include--
``(A) a description of high-quality student academic
assessments, if any, that are in addition to the academic
assessments described in the State plan under section
1111(b)(3), that the local educational agency and schools
served under this part will use--
``(i) to determine the success of children served under
this part in meeting the State student academic achievement
standards, and to provide information to teachers, parents,
and students on the progress being made toward meeting the
State student academic achievement standards described in
section 1111(b)(1)(D)(ii);
``(ii) to assist in diagnosis, teaching, and learning
in the classroom in ways that best enable low-achieving
children served under this part to meet State student
achievement academic standards and do well in the local
curriculum;
``(iii) to determine what revisions are needed to
projects under this part so that such children meet the
State student academic achievement standards; and
``(iv) to identify effectively students who may be at
risk for reading failure or who are having difficulty
reading, through the use of screening, diagnostic, and
classroom-based instructional reading assessments, as
defined under section 1208;
``(B) at the local educational agency's discretion, a
description of any other indicators that will be used in
addition to the academic indicators described in section 1111
for the uses described in such section;
``(C) a description of how the local educational agency
will provide additional educational assistance to individual
students assessed as needing help in meeting the State's
challenging student academic achievement standards;
``(D) a description of the strategy the local educational
agency will use to coordinate programs under this part with
programs under title II to provide professional development for
teachers and principals, and, if appropriate, pupil services
personnel, administrators, parents and other staff, including
local educational agency level staff in accordance with
sections 1118 and 1119;
``(E) a description of how the local educational agency
will coordinate and integrate services provided under this part
with other educational services at the local educational agency
or individual school level, such as--
``(i) Even Start, Head Start, Reading First, Early
Reading First, and other preschool programs, including
plans for the transition of participants in such programs
to local elementary school programs; and
``(ii) services for children with limited English
proficiency, children with disabilities, migratory
children, neglected or delinquent youth, Indian children
served under part A of title VII, homeless children, and
immigrant children in order to increase program
effectiveness, eliminate duplication, and reduce
fragmentation of the instructional program;
``(F) an assurance that the local educational agency will
participate, if selected, in the State National Assessment of
Educational Progress in 4th and 8th grade reading and
mathematics carried out under section 411(b)(2) of the National
Education Statistics Act of 1994;
``(G) a description of the poverty criteria that will be
used to select school attendance areas under section 1113;
``(H) a description of how teachers, in consultation with
parents, administrators, and pupil services personnel, in
targeted assistance schools under section 1115, will identify
the eligible children most in need of services under this part;
``(I) a general description of the nature of the programs
to be conducted by such agency's schools under sections 1114
and 1115 and, where appropriate, educational services outside
such schools for children living in local institutions for
neglected or delinquent children, and for neglected and
delinquent children in community day school programs;
``(J) a description of how the local educational agency
will ensure that migratory children and formerly migratory
children who are eligible to receive services under this part
are selected to receive such services on the same basis as
other children who are selected to receive services under this
part;
``(K) if appropriate, a description of how the local
educational agency will use funds under this part to support
preschool programs for children, particularly children
participating in Early Reading First, or in a Head Start or
Even Start program, which services may be provided directly by
the local educational agency or through a subcontract with the
local Head Start agency designated by the Secretary of Health
and Human Services under section 641 of the Head Start Act, or
an agency operating an Even Start program, an Early Reading
First program, or another comparable public early childhood
development program;
``(L) a description of the actions the local educational
agency will take to assist its low-achieving schools identified
under section 1116 as in need of improvement;
``(M) a description of the actions the local educational
agency will take to implement public school choice and
supplemental services, consistent with the requirements of
section 1116;
``(N) a description of how the local educational agency
will meet the requirements of section 1119;
``(O) a description of the services the local educational
agency will provide homeless children, including services
provided with funds reserved under section 1113(c)(3)(A);
``(P) a description of the strategy the local educational
agency will use to implement effective parental involvement
under section 1118; and
``(Q) where appropriate, a description of how the local
educational agency will use funds under this part to support
after school (including before school and summer school) and
school-year extension programs.
``(2) Exception.--The academic assessments and indicators
described in subparagraphs (A) and (B) of paragraph (1) shall not
be used--
``(A) in lieu of the academic assessments required under
section 1111(b)(3) and other State academic indicators under
section 1111(b)(2); or
``(B) to reduce the number of, or change which, schools
would otherwise be subject to school improvement, corrective
action, or restructuring under section 1116, if such additional
assessments or indicators described in such subparagraphs were
not used, but such assessments and indicators may be used to
identify additional schools for school improvement or in need
of corrective action or restructuring.
``(c) Assurances.--
``(1) In general.--Each local educational agency plan shall
provide assurances that the local educational agency will--
``(A) inform eligible schools and parents of schoolwide
program authority and the ability of such schools to
consolidate funds from Federal, State, and local sources;
``(B) provide technical assistance and support to
schoolwide programs;
``(C) work in consultation with schools as the schools
develop the schools' plans pursuant to section 1114 and assist
schools as the schools implement such plans or undertake
activities pursuant to section 1115 so that each school can
make adequate yearly progress toward meeting the State student
academic achievement standards;
``(D) fulfill such agency's school improvement
responsibilities under section 1116, including taking actions
under paragraphs (7) and (8) of section 1116(b);
``(E) provide services to eligible children attending
private elementary schools and secondary schools in accordance
with section 1120, and timely and meaningful consultation with
private school officials regarding such services;
``(F) take into account the experience of model programs
for the educationally disadvantaged, and the findings of
relevant scientifically based research indicating that services
may be most effective if focused on students in the earliest
grades at schools that receive funds under this part;
``(G) in the case of a local educational agency that
chooses to use funds under this part to provide early childhood
development services to low-income children below the age of
compulsory school attendance, ensure that such services comply
with the performance standards established under section
641A(a) of the Head Start Act;
``(H) work in consultation with schools as the schools
develop and implement their plans or activities under sections
1118 and 1119;
``(I) comply with the requirements of section 1119
regarding the qualifications of teachers and paraprofessionals
and professional development;
``(J) inform eligible schools of the local educational
agency's authority to obtain waivers on the school's behalf
under title IX and, if the State is an Ed-Flex Partnership
State, to obtain waivers under the Education Flexibility
Partnership Act of 1999;
``(K) coordinate and collaborate, to the extent feasible
and necessary as determined by the local educational agency,
with the State educational agency and other agencies providing
services to children, youth, and families with respect to a
school in school improvement, corrective action, or
restructuring under section 1116 if such a school requests
assistance from the local educational agency in addressing
major factors that have significantly affected student
achievement at the school;
``(L) ensure, through incentives for voluntary transfers,
the provision of professional development, recruitment
programs, or other effective strategies, that low-income
students and minority students are not taught at higher rates
than other students by unqualified, out-of-field, or
inexperienced teachers;
``(M) use the results of the student academic assessments
required under section 1111(b)(3), and other measures or
indicators available to the agency, to review annually the
progress of each school served by the agency and receiving
funds under this part to determine whether all of the schools
are making the progress necessary to ensure that all students
will meet the State's proficient level of achievement on the
State academic assessments described in section 1111(b)(3)
within 12 years from the 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) shall consult with the Secretary of Health and Human
Services and shall establish procedures (taking into
consideration existing State and local laws, and local teacher
contracts) to assist local educational agencies to comply with
such subparagraph; and
``(B) shall disseminate to local educational agencies the
Head Start performance standards as in effect under section
641A(a) of the Head Start Act, and such agencies affected by
such subparagraph shall plan for the implementation of such
subparagraph (taking into consideration existing State and
local laws, and local teacher contracts), including pursuing
the availability of other Federal, State, and local funding
sources to assist in compliance with such subparagraph.
``(3) Inapplicability.--Paragraph (1)(G) of this subsection
shall not apply to preschool programs using the Even Start model or
to Even Start programs that are expanded through the use of funds
under this part.
``(d) Plan Development and Duration.--
``(1) Consultation.--Each local educational agency plan shall
be developed in consultation with teachers, principals,
administrators (including administrators of programs described in
other parts of this title), and other appropriate school personnel,
and with parents of children in schools served under this part.
``(2) Duration.--Each such plan shall be submitted for the
first year for which this part is in effect following the date of
enactment of the No Child Left Behind Act of 2001 and shall remain
in effect for the duration of the agency's participation under this
part.
``(3) Review.--Each local educational agency shall periodically
review and, as necessary, revise its plan.
``(e) State Approval.--
``(1) In general.--Each local educational agency plan shall be
filed according to a schedule established by the State educational
agency.
``(2) Approval.--The State educational agency shall approve a
local educational agency's plan only if the State educational
agency determines that the local educational agency's plan--
``(A) enables schools served under this part to
substantially help children served under this part meet the
academic standards expected of all children described in
section 1111(b)(1); and
``(B) meets the requirements of this section.
``(3) Review.--The State educational agency shall review the
local educational agency's plan to determine if such agencies
activities are in accordance with sections 1118 and 1119.
``(f) Program Responsibility.--The local educational agency plan
shall reflect the shared responsibility of schools, teachers, and the
local educational agency in making decisions regarding activities under
sections 1114 and 1115.
``(g) Parental Notification.--
``(1) In general.--
``(A) Notice.--Each local educational agency using funds
under this part to provide a language instruction educational
program as determined in part C of title III shall, not later
than 30 days after the beginning of the school year, inform a
parent or parents of a limited English proficient child
identified for participation or participating in, such a
program of--
``(i) the reasons for the identification of their child
as limited English proficient and in need of placement in a
language instruction educational program;
``(ii) the child's level of English proficiency, how
such level was assessed, and the status of the child's
academic achievement;
``(iii) the methods of instruction used in the program
in which their child is, or will be participating, and the
methods of instruction used in other available programs,
including how such programs differ in content,
instructional goals, and the use of English and a native
language in instruction;
``(iv) how the program in which their child is, or will
be participating, will meet the educational strengths and
needs of their child;
``(v) how such program will specifically help their
child learn English, and meet age-appropriate academic
achievement standards for grade promotion and graduation;
``(vi) the specific exit requirements for the program,
including the expected rate of transition from such program
into classrooms that are not tailored for limited English
proficient children, and the expected rate of graduation
from secondary school for such program if funds under this
part are used for children in secondary schools;
``(vii) in the case of a child with a disability, how
such program meets the objectives of the individualized
education program of the child;
``(viii) information pertaining to parental rights that
includes written guidance--
``(I) detailing--
``(aa) the right that parents have to have
their child immediately removed from such program
upon their request; and
``(bb) the options that parents have to decline
to enroll their child in such program or to choose
another program or method of instruction, if
available; and
``(II) assisting parents in selecting among various
programs and methods of instruction, if more than one
program or method is offered by the eligible entity.
``(B) Separate notification.--In addition to providing the
information required to be provided under paragraph (1), each
eligible entity that is using funds provided under this part to
provide a language instruction educational program, and that
has failed to make progress on the annual measurable
achievement objectives described in section 3122 for any fiscal
year for which part A is in effect, shall separately inform a
parent or the parents of a child identified for participation
in such program, or participating in such program, of such
failure not later than 30 days after such failure occurs.
``(2) Notice.--The notice and information provided in paragraph
(1) to a parent or parents of a child identified for participation
in a language instruction educational program for limited English
proficient children shall be in an understandable and uniform
format and, to the extent practicable, provided in a language that
the parents can understand.
``(3) Special rule applicable during the school year.--For
those children who have not been identified as limited English
proficient prior to the beginning of the school year the local
educational agency shall notify parents within the first 2 weeks of
the child being placed in a language instruction educational
program consistent with paragraphs (1) and (2).
``(4) Parental participation.--Each local educational agency
receiving funds under this part shall implement an effective means
of outreach to parents of limited English proficient students to
inform the parents regarding how the parents can be involved in the
education of their children, and be active participants in
assisting their children to attain English proficiency, achieve at
high levels in core academic subjects, and meet challenging State
academic achievement standards and State academic content standards
expected of all students, including holding, and sending notice of
opportunities for, regular meetings for the purpose of formulating
and responding to recommendations from parents of students assisted
under this part.
``(5) Basis for admission or exclusion.--A student shall not be
admitted to, or excluded from, any federally assisted education
program on the basis of a surname or language-minority status.
``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.
``(a) Determination.--
``(1) In general.--A local educational agency shall use funds
received under this part only in eligible school attendance areas.
``(2) Eligible school attendance areas.--For the purposes of
this part--
``(A) the term `school attendance area' means, in relation
to a particular school, the geographical area in which the
children who are normally served by that school reside; and
``(B) the term `eligible school attendance area' means a
school attendance area in which the percentage of children from
low-income families is at least as high as the percentage of
children from low-income families served by the local
educational agency as a whole.
``(3) Ranking order.--If funds allocated in accordance with
subsection (c) are insufficient to serve all eligible school
attendance areas, a local educational agency shall--
``(A) annually rank, without regard to grade spans, such
agency's eligible school attendance areas in which the
concentration of children from low-income families exceeds 75
percent from highest to lowest according to the percentage of
children from low-income families; and
``(B) serve such eligible school attendance areas in rank
order.
``(4) Remaining funds.--If funds remain after serving all
eligible school attendance areas under paragraph (3), a local
educational agency shall--
``(A) annually rank such agency's remaining eligible school
attendance areas from highest to lowest either by grade span or
for the entire local educational agency according to the
percentage of children from low-income families; and
``(B) serve such eligible school attendance areas in rank
order either within each grade-span grouping or within the
local educational agency as a whole.
``(5) Measures.--The local educational agency shall use the
same measure of poverty, which measure shall be the number of
children ages 5 through 17 in poverty counted in the most recent
census data approved by the Secretary, the number of children
eligible for free and reduced priced lunches under the Richard B.
Russell National School Lunch Act, the number of children in
families receiving assistance under the State program funded under
part A of title IV of the Social Security Act, or the number of
children eligible to receive medical assistance under the Medicaid
program, or a composite of such indicators, with respect to all
school attendance areas in the local educational agency--
``(A) to identify eligible school attendance areas;
``(B) to determine the ranking of each area; and
``(C) to determine allocations under subsection (c).
``(6) Exception.--This subsection shall not apply to a local
educational agency with a total enrollment of less than 1,000
children.
``(7) Waiver for desegregation plans.--The Secretary may
approve a local educational agency's written request for a waiver
of the requirements of subsections (a) and (c), and permit such
agency to treat as eligible, and serve, any school that children
attend with a State-ordered, court-ordered school desegregation
plan or a plan that continues to be implemented in accordance with
a State-ordered or court-ordered desegregation plan, if--
``(A) the number of economically disadvantaged children
enrolled in the school is at least 25 percent of the school's
total enrollment; and
``(B) the Secretary determines on the basis of a written
request from such agency and in accordance with such criteria
as the Secretary establishes, that approval of that request
would further the purposes of this part.
``(b) Local Educational Agency Discretion.--
``(1) In general.--Notwithstanding subsection (a)(2), a local
educational agency may--
``(A) designate as eligible any school attendance area or
school in which at least 35 percent of the children are from
low-income families;
``(B) use funds received under this part in a school that
is not in an eligible school attendance area, if the percentage
of children from low-income families enrolled in the school is
equal to or greater than the percentage of such children in a
participating school attendance area of such agency;
``(C) designate and serve a school attendance area or
school that is not eligible under this section, but that was
eligible and that was served in the preceding fiscal year, but
only for 1 additional fiscal year; and
``(D) elect not to serve an eligible school attendance area
or eligible school that has a higher percentage of children
from low-income families if--
``(i) the school meets the comparability requirements
of section 1120A(c);
``(ii) the school is receiving supplemental funds from
other State or local sources that are spent according to
the requirements of section 1114 or 1115; and
``(iii) the funds expended from such other sources
equal or exceed the amount that would be provided under
this part.
``(2) Special rule.--Notwithstanding paragraph (1)(D), the
number of children attending private elementary schools and
secondary schools who are to receive services, and the assistance
such children are to receive under this part, shall be determined
without regard to whether the public school attendance area in
which such children reside is assisted under subparagraph (A).
``(c) Allocations.--
``(1) In general.--A local educational agency shall allocate
funds received under this part to eligible school attendance areas
or eligible schools, identified under subsections (a) and (b), in
rank order, on the basis of the total number of children from low-
income families in each area or school.
``(2) Special rule.--
``(A) In general.--Except as provided in subparagraph (B),
the per-pupil amount of funds allocated to each school
attendance area or school under paragraph (1) shall be at least
125 percent of the per-pupil amount of funds a local
educational agency received for that year under the poverty
criteria described by the local educational agency in the plan
submitted under section 1112, except that this paragraph shall
not apply to a local educational agency that only serves
schools in which the percentage of such children is 35 percent
or greater.
``(B) Exception.--A local educational agency may reduce the
amount of funds allocated under subparagraph (A) for a school
attendance area or school by the amount of any supplemental
State and local funds expended in that school attendance area
or school for programs that meet the requirements of section
1114 or 1115.
``(3) Reservation.--A local educational agency shall reserve
such funds as are necessary under this part to provide services
comparable to those provided to children in schools funded under
this part to serve--
``(A) homeless children who do not attend participating
schools, including providing educationally related support
services to children in shelters and other locations where
children may live;
``(B) children in local institutions for neglected
children; and
``(C) if appropriate, children in local institutions for
delinquent children, and neglected or delinquent children in
community day school programs.
``(4) Financial incentives and rewards reservation.--A local
educational agency may reserve such funds as are necessary from
those funds received by the local educational agency under title
II, and not more than 5 percent of those funds received by the
local educational agency under subpart 2, to provide financial
incentives and rewards to teachers who serve in schools eligible
under this section and identified for school improvement,
corrective action, and restructuring under section 1116(b) for the
purpose of attracting and retaining qualified and effective
teachers.
``SEC. 1114. SCHOOLWIDE PROGRAMS.
``(a) Use of Funds for Schoolwide Programs.--
``(1) In general.--A local educational agency may consolidate
and use funds under this part, together with other Federal, State,
and local funds, in order to upgrade the entire educational program
of a school that serves an eligible school attendance area in which
not less than 40 percent of the children are from low-income
families, or not less than 40 percent of the children enrolled in
the school are from such families.
``(2) Identification of students not required.--
``(A) In general.--No school participating in a schoolwide
program shall be required--
``(i) to identify particular children under this part
as eligible to participate in a schoolwide program; or
``(ii) to provide services to such children that are
supplementary, as otherwise required by section 1120A(b).
``(B) Supplemental funds.--A school participating in a
schoolwide program shall use funds available to carry out this
section only to supplement the amount of funds that would, in
the absence of funds under this part, be made available from
non-Federal sources for the school, including funds needed to
provide services that are required by law for children with
disabilities and children with limited English proficiency.
``(3) Exemption from statutory and regulatory requirements.--
``(A) Exemption.--Except as provided in subsection (b), the
Secretary may, through publication of a notice in the Federal
Register, exempt schoolwide programs under this section from
statutory or regulatory provisions of any other noncompetitive
formula grant program administered by the Secretary (other than
formula or discretionary grant programs under the Individuals
with Disabilities Education Act, except as provided in section
613(a)(2)(D) of such Act), or any discretionary grant program
administered by the Secretary, to support schoolwide programs
if the intent and purposes of such other programs are met.
``(B) Requirements.--A school that chooses to use funds
from such other programs shall not be relieved of the
requirements relating to health, safety, civil rights, student
and parental participation and involvement, services to private
school children, maintenance of effort, comparability of
services, uses of Federal funds to supplement, not supplant
non-Federal funds, or the distribution of funds to State
educational agencies or local educational agencies that apply
to the receipt of funds from such programs.
``(C) Records.--A school that consolidates and uses funds
from different Federal programs under this section shall not be
required to maintain separate fiscal accounting records, by
program, that identify the specific activities supported by
those particular funds as long as the school maintains records
that demonstrate that the schoolwide program, considered as a
whole, addresses the intent and purposes of each of the Federal
programs that were consolidated to support the schoolwide
program.
``(4) Professional development.--Each school receiving funds
under this part for any fiscal year shall devote sufficient
resources to effectively carry out the activities described in
subsection (b)(1)(D) in accordance with section 1119 for such
fiscal year, except that a school may enter into a consortium with
another school to carry out such activities.
``(b) Components of a Schoolwide Program.--
``(1) In general.--A schoolwide program shall include the
following components:
``(A) A comprehensive needs assessment of the entire school
(including taking into account the needs of migratory children
as defined in section 1309(2)) that is based on information
which includes the achievement of children in relation to the
State academic content standards and the State student academic
achievement standards described in section 1111(b)(1).
``(B) Schoolwide reform strategies that--
``(i) provide opportunities for all children to meet
the State's proficient and advanced levels of student
academic achievement described in section 1111(b)(1)(D);
``(ii) use effective methods and instructional
strategies that are based on scientifically based research
that--
``(I) strengthen the core academic program in the
school;
``(II) increase the amount and quality of learning
time, such as providing an extended school year and
before- and after-school and summer programs and
opportunities, and help provide an enriched and
accelerated curriculum; and
``(III) include strategies for meeting the
educational needs of historically underserved
populations;
``(iii)(I) include strategies to address the needs of
all children in the school, but particularly the needs of
low-achieving children and those at risk of not meeting the
State student academic achievement standards who are
members of the target population of any program that is
included in the schoolwide program, which may include--
``(aa) counseling, pupil services, and mentoring
services;
``(bb) college and career awareness and
preparation, such as college and career guidance,
personal finance education, and innovative teaching
methods, which may include applied learning and team-
teaching strategies; and
``(cc) the integration of vocational and technical
education programs; and
``(II) address how the school will determine if such
needs have been met; and
``(iv) are consistent with, and are designed to
implement, the State and local improvement plans, if any.
``(C) Instruction by highly qualified teachers.
``(D) In accordance with section 1119 and subsection
(a)(4), high-quality and ongoing professional development for
teachers, principals, and paraprofessionals and, if
appropriate, pupil services personnel, parents, and other staff
to enable all children in the school to meet the State's
student academic achievement standards.
``(E) Strategies to attract high-quality highly qualified
teachers to high-need schools.
``(F) Strategies to increase parental involvement in
accordance with section 1118, such as family literary services.
``(G) Plans for assisting preschool children in the
transition from early childhood programs, such as Head Start,
Even Start, Early Reading First, or a State-run preschool
program, to local elementary school programs.
``(H) Measures to include teachers in the decisions
regarding the use of academic assessments described in section
1111(b)(3) in order to provide information on, and to improve,
the achievement of individual students and the overall
instructional program.
``(I) Activities to ensure that students who experience
difficulty mastering the proficient or advanced levels of
academic achievement standards required by section 1111(b)(1)
shall be provided with effective, timely additional assistance
which shall include measures to ensure that students'
difficulties are identified on a timely basis and to provide
sufficient information on which to base effective assistance.
``(J) Coordination and integration of Federal, State, and
local services and programs, including programs supported under
this Act, violence prevention programs, nutrition programs,
housing programs, Head Start, adult education, vocational and
technical education, and job training.
``(2) Plan.--
``(A) In general.--Any eligible school that desires to
operate a schoolwide program shall first develop (or amend a
plan for such a program that was in existence on the day before
the date of enactment of the No Child Left Behind Act of 2001),
in consultation with the local educational agency and its
school support team or other technical assistance provider
under section 1117, a comprehensive plan for reforming the
total instructional program in the school that--
``(i) describes how the school will implement the
components described in paragraph (1);
``(ii) describes how the school will use resources
under this part and from other sources to implement those
components;
``(iii) includes a list of State educational agency and
local educational agency programs and other Federal
programs under subsection (a)(3) that will be consolidated
in the schoolwide program; and
``(iv) describes how the school will provide individual
student academic assessment results in a language the
parents can understand, including an interpretation of
those results, to the parents of a child who participates
in the academic assessments required by section 1111(b)(3).
``(B) Plan development.--The comprehensive plan shall be--
``(i) developed during a one-year period, unless--
``(I) the local educational agency, after
considering the recommendation of the technical
assistance providers under section 1117, determines
that less time is needed to develop and implement the
schoolwide program; or
``(II) the school is operating a schoolwide program
on the day preceding the date of enactment of the No
Child Left Behind Act of 2001, in which case such
school may continue to operate such program, but shall
develop amendments to its existing plan during the
first year of assistance after that date to reflect the
provisions of this section;
``(ii) developed with the involvement of parents and
other members of the community to be served and individuals
who will carry out such plan, including teachers,
principals, and administrators (including administrators of
programs described in other parts of this title), and, if
appropriate, pupil services personnel, technical assistance
providers, school staff, and, if the plan relates to a
secondary school, students from such school;
``(iii) in effect for the duration of the school's
participation under this part and reviewed and revised, as
necessary, by the school;
``(iv) available to the local educational agency,
parents, and the public, and the information contained in
such plan shall be in an understandable and uniform format
and, to the extent practicable, provided in a language that
the parents can understand; and
``(v) if appropriate, developed in coordination with
programs under Reading First, Early Reading First, Even
Start, Carl D. Perkins Vocational and Technical Education
Act of 1998, and the Head Start Act.
``(c) Prekindergarten Program.--A school that is eligible for a
schoolwide program under this section may use funds made available
under this part to establish or enhance prekindergarten programs for
children below the age of 6, such as Even Start programs or Early
Reading First programs.
``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.
``(a) In General.--In all schools selected to receive funds under
section 1113(c) that are ineligible for a schoolwide program under
section 1114, or that choose not to operate such a schoolwide program,
a local educational agency serving such school may use funds received
under this part only for programs that provide services to eligible
children under subsection (b) identified as having the greatest need
for special assistance.
``(b) Eligible Children.--
``(1) Eligible population.--
``(A) In general.--The eligible population for services
under this section is--
``(i) children not older than age 21 who are entitled
to a free public education through grade 12; and
``(ii) children who are not yet at a grade level at
which the local educational agency provides a free public
education.
``(B) Eligible children from eligible population.--From the
population described in subparagraph (A), eligible children are
children identified by the school as failing, or most at risk
of failing, to meet the State's challenging student academic
achievement standards on the basis of multiple, educationally
related, objective criteria established by the local
educational agency and supplemented by the school, except that
children from preschool through grade 2 shall be selected
solely on the basis of such criteria as teacher judgment,
interviews with parents, and developmentally appropriate
measures.
``(2) Children included.--
``(A) In general.--Children who are economically
disadvantaged, children with disabilities, migrant children or
limited English proficient children, are eligible for services
under this part on the same basis as other children selected to
receive services under this part.
``(B) Head start, even start, or early reading first
children.--A child who, at any time in the 2 years preceding
the year for which the determination is made, participated in a
Head Start, Even Start, or Early Reading First program, or in
preschool services under this title, is eligible for services
under this part.
``(C) Part c children.--A child who, at any time in the 2
years preceding the year for which the determination is made,
received services under part C is eligible for services under
this part.
``(D) Neglected or delinquent children.--A child in a local
institution for neglected or delinquent children and youth or
attending a community day program for such children is eligible
for services under this part.
``(E) Homeless children.--A child who is homeless and
attending any school served by the local educational agency is
eligible for services under this part.
``(3) Special rule.--Funds received under this part may not be
used to provide services that are otherwise required by law to be
made available to children described in paragraph (2) but may be
used to coordinate or supplement such services.
``(c) Components of a Targeted Assistance School Program.--
``(1) In general.--To assist targeted assistance schools and
local educational agencies to meet their responsibility to provide
for all their students served under this part the opportunity to
meet the State's challenging student academic achievement standards
in subjects as determined by the State, each targeted assistance
program under this section shall--
``(A) use such program's resources under this part to help
participating children meet such State's challenging student
academic achievement standards expected for all children;
``(B) ensure that planning for students served under this
part is incorporated into existing school planning;
``(C) use effective methods and instructional strategies
that are based on scientifically based research that
strengthens the core academic program of the school and that--
``(i) give primary consideration to providing extended
learning time, such as an extended school year, before- and
after-school, and summer programs and opportunities;
``(ii) help provide an accelerated, high-quality
curriculum, including applied learning; and
``(iii) minimize removing children from the regular
classroom during regular school hours for instruction
provided under this part;
``(D) coordinate with and support the regular education
program, which may include services to assist preschool
children in the transition from early childhood programs such
as Head Start, Even Start, Early Reading First or State-run
preschool programs to elementary school programs;
``(E) provide instruction by highly qualified teachers;
``(F) in accordance with subsection (e)(3) and section
1119, provide opportunities for professional development with
resources provided under this part, and, to the extent
practicable, from other sources, for teachers, principals, and
paraprofessionals, including, if appropriate, pupil services
personnel, parents, and other staff, who work with
participating children in programs under this section or in the
regular education program;
``(G) provide strategies to increase parental involvement
in accordance with section 1118, such as family literacy
services; and
``(H) coordinate and integrate Federal, State, and local
services and programs, including programs supported under this
Act, violence prevention programs, nutrition programs, housing
programs, Head Start, adult education, vocational and technical
education, and job training.
``(2) Requirements.--Each school conducting a program under
this section shall assist participating children selected in
accordance with subsection (b) to meet the State's proficient and
advanced levels of achievement by--
``(A) the coordinating of resources provided under this
part with other resources; and
``(B) reviewing, on an ongoing basis, the progress of
participating children and revising the targeted assistance
program, if necessary, to provide additional assistance to
enable such children to meet the State's challenging student
academic achievement standards, such as an extended school
year, before- and after-school, and summer programs and
opportunities, training for teachers regarding how to identify
students who need additional assistance, and training for
teachers regarding how to implement student academic
achievement standards in the classroom.
``(d) Integration of Professional Development.--To promote the
integration of staff supported with funds under this part into the
regular school program and overall school planning and improvement
efforts, public school personnel who are paid with funds received under
this part may--
``(1) participate in general professional development and
school planning activities; and
``(2) assume limited duties that are assigned to similar
personnel who are not so paid, including duties beyond classroom
instruction or that do not benefit participating children, so long
as the amount of time spent on such duties is the same proportion
of total work time as prevails with respect to similar personnel at
the same school.
``(e) Special Rules.--
``(1) Simultaneous service.--Nothing in this section shall be
construed to prohibit a school from serving students under this
section simultaneously with students with similar educational
needs, in the same educational settings where appropriate.
``(2) Comprehensive services.--If--
``(A) health, nutrition, and other social services are not
otherwise available to eligible children in a targeted
assistance school and such school, if appropriate, has engaged
in a comprehensive needs assessment and established a
collaborative partnership with local service providers; and
``(B) funds are not reasonably available from other public
or private sources to provide such services, then a portion of
the funds provided under this part may be used as a last resort
to provide such services, including--
``(i) the provision of basic medical equipment, such as
eyeglasses and hearing aids;
``(ii) compensation of a coordinator; and
``(iii) professional development necessary to assist
teachers, pupil services personnel, other staff, and
parents in identifying and meeting the comprehensive needs
of eligible children.
``(3) Professional development.--Each school receiving funds
under this part for any fiscal year shall devote sufficient
resources to carry out effectively the professional development
activities described in subparagraph (F) of subsection (c)(1) in
accordance with section 1119 for such fiscal year, and a school may
enter into a consortium with another school to carry out such
activities.
``SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND
SCHOOL IMPROVEMENT.
``(a) Local Review.--
``(1) In general.--Each local educational agency receiving
funds under this part shall--
``(A) use the State academic assessments and other
indicators described in the State plan to review annually the
progress of each school served under this part to determine
whether the school is making adequate yearly progress as
defined in section 1111(b)(2);
``(B) at the local educational agency's discretion, use any
academic assessments or any other academic indicators described
in the local educational agency's plan under section
1112(b)(1)(A) and (B) to review annually the progress of each
school served under this part to determine whether the school
is making adequate yearly progress as defined in section
1111(b)(2), except that the local educational agency may not
use such indicators (other than as provided for in section
1111(b)(2)(I)) if the indicators reduce the number or change
the schools that would otherwise be subject to school
improvement, corrective action, or restructuring under section
1116 if such additional indicators were not used, but may
identify additional schools for school improvement or in need
of corrective action or restructuring;
``(C) publicize and disseminate the results of the local
annual review described in paragraph (1) to parents, teachers,
principals, schools, and the community so that the teachers,
principals, other staff, and schools can continually refine, in
an instructionally useful manner, the program of instruction to
help all children served under this part meet the challenging
State student academic achievement standards established under
section 1111(b)(1); and
``(D) review the effectiveness of the actions and
activities the schools are carrying out under this part with
respect to parental involvement, professional development, and
other activities assisted under this part.
``(2) Available results.--The State educational agency shall
ensure that the results of State academic assessments administered
in that school year are available to the local educational agency
before the beginning of the next school year.
``(b) School Improvement.--
``(1) General requirements.--
``(A) Identification.--Subject to subparagraph (C), a local
educational agency shall identify for school improvement any
elementary school or secondary school served under this part
that fails, for 2 consecutive years, to make adequate yearly
progress as defined in the State's plan under section
1111(b)(2).
``(B) Deadline.--The identification described in
subparagraph (A) shall take place before the beginning of the
school year following such failure to make adequate yearly
progress.
``(C) Application.--Subparagraph (A) shall not apply to a
school if almost every student in each group specified in
section 1111(b)(2)(C)(v) enrolled in such school is meeting or
exceeding the State's proficient level of academic achievement.
``(D) Targeted assistance schools.--To determine if an
elementary school or a secondary school that is conducting a
targeted assistance program under section 1115 should be
identified for school improvement, corrective action, or
restructuring under this section, a local educational agency
may choose to review the progress of only the students in the
school who are served, or are eligible for services, under this
part.
``(E) Public school choice.--
``(i) In general.--In the case of a school identified
for school improvement under this paragraph, the local
educational agency shall, not later than the first day of
the school year following such identification, provide all
students enrolled in the school with the option to transfer
to another public school served by the local educational
agency, which may include a public charter school, that has
not been identified for school improvement under this
paragraph, unless such an option is prohibited by State
law.
``(ii) Rule.--In providing students the option to
transfer to another public school, the local educational
agency shall give priority to the lowest achieving children
from low-income families, as determined by the local
educational agency for purposes of allocating funds to
schools under section 1113(c)(1).
``(F) Transfer.--Students who use the option to transfer
under subparagraph (E) and paragraph (5)(A), (7)(C)(i), or
(8)(A)(i) or subsection (c)(10)(C)(vii) shall be enrolled in
classes and other activities in the public school to which the
students transfer in the same manner as all other children at
the public school.
``(2) Opportunity to review and present evidence; time limit.--
``(A) Identification.--Before identifying an elementary
school or a secondary school for school improvement under
paragraphs (1) or (5)(A), for corrective action under paragraph
(7), or for restructuring under paragraph (8), the local
educational agency shall provide the school with an opportunity
to review the school-level data, including academic assessment
data, on which the proposed identification is based.
``(B) Evidence.--If the principal of a school proposed for
identification under paragraph (1), (5)(A), (7), or (8)
believes, or a majority of the parents of the students enrolled
in such school believe, that the proposed identification is in
error for statistical or other substantive reasons, the
principal may provide supporting evidence to the local
educational agency, which shall consider that evidence before
making a final determination.
``(C) Final determination.--Not later than 30 days after a
local educational agency provides the school with the
opportunity to review such school-level data, the local
educational agency shall make public a final determination on
the status of the school with respect to the identification.
``(3) School plan.--
``(A) Revised plan.--After the resolution of a review under
paragraph (2), each school identified under paragraph (1) for
school improvement shall, not later than 3 months after being
so identified, develop or revise a school plan, in consultation
with parents, school staff, the local educational agency
serving the school, and outside experts, for approval by such
local educational agency. The school plan shall cover a 2-year
period and--
``(i) incorporate strategies based on scientifically
based research that will strengthen the core academic
subjects in the school and address the specific academic
issues that caused the school to be identified for school
improvement, and may include a strategy for the
implementation of a comprehensive school reform model that
includes each of the components described in part F;
``(ii) adopt policies and practices concerning the
school's core academic subjects that have the greatest
likelihood of ensuring that all groups of students
specified in section 1111(b)(2)(C)(v) and enrolled in the
school will meet the State's proficient level of
achievement on the State academic assessment described in
section 1111(b)(3) not later than 12 years after the end of
the 2001-2002 school year;
``(iii) provide an assurance that the school will spend
not less than 10 percent of the funds made available to the
school under section 1113 for each fiscal year that the
school is in school improvement status, for the purpose of
providing to the school's teachers and principal high-
quality professional development that--
``(I) directly addresses the academic achievement
problem that caused the school to be identified for
school improvement;
``(II) meets the requirements for professional
development activities under section 1119; and
``(III) is provided in a manner that affords
increased opportunity for participating in that
professional development;
``(iv) specify how the funds described in clause (iii)
will be used to remove the school from school improvement
status;
``(v) establish specific annual, measurable objectives
for continuous and substantial progress by each group of
students specified in section 1111(b)(2)(C)(v) and enrolled
in the school that will ensure that all such groups of
students will, in accordance with adequate yearly progress
as defined in section 1111(b)(2), meet the State's
proficient level of achievement on the State academic
assessment described in section 1111(b)(3) not later than
12 years after the end of the 2001-2002 school year;
``(vi) describe how the school will provide written
notice about the identification to parents of each student
enrolled in such school, in a format and, to the extent
practicable, in a language that the parents can understand;
``(vii) specify the responsibilities of the school, the
local educational agency, and the State educational agency
serving the school under the plan, including the technical
assistance to be provided by the local educational agency
under paragraph (4) and the local educational agency's
responsibilities under section 1120A;
``(viii) include strategies to promote effective
parental involvement in the school;
``(ix) incorporate, as appropriate, activities before
school, after school, during the summer, and during any
extension of the school year; and
``(x) incorporate a teacher mentoring program.
``(B) Conditional approval.--The local educational agency
may condition approval of a school plan under this paragraph
on--
``(i) inclusion of one or more of the corrective
actions specified in paragraph (7)(C)(iv); or
``(ii) feedback on the school improvement plan from
parents and community leaders.
``(C) Plan implementation.--Except as provided in
subparagraph (D), a school shall implement the school plan
(including a revised plan) expeditiously, but not later than
the beginning of the next full school year following the
identification under paragraph (1).
``(D) Plan approved during school year.--Notwithstanding
subparagraph (C), if a plan is not approved prior to the
beginning of a school year, such plan shall be implemented
immediately upon approval.
``(E) Local educational agency approval.--The local
educational agency, within 45 days of receiving a school plan,
shall--
``(i) establish a peer review process to assist with
review of the school plan; and
``(ii) promptly review the school plan, work with the
school as necessary, and approve the school plan if the
plan meets the requirements of this paragraph.
``(4) Technical assistance.--
``(A) In general.--For each school identified for school
improvement under paragraph (1), the local educational agency
serving the school shall ensure the provision of technical
assistance as the school develops and implements the school
plan under paragraph (3) throughout the plan's duration.
``(B) Specific assistance.--Such technical assistance--
``(i) shall include assistance in analyzing data from
the assessments required under section 1111(b)(3), and
other examples of student work, to identify and address
problems in instruction, and problems if any, in
implementing the parental involvement requirements
described in section 1118, the professional development
requirements described in section 1119, and the
responsibilities of the school and local educational agency
under the school plan, and to identify and address
solutions to such problems;
``(ii) shall include assistance in identifying and
implementing professional development, instructional
strategies, and methods of instruction that are based on
scientifically based research and that have proven
effective in addressing the specific instructional issues
that caused the school to be identified for school
improvement;
``(iii) shall include assistance in analyzing and
revising the school's budget so that the school's resources
are more effectively allocated to the activities most
likely to increase student academic achievement and to
remove the school from school improvement status; and
``(iv) may be provided--
``(I) by the local educational agency, through
mechanisms authorized under section 1117; or
``(II) by the State educational agency, an
institution of higher education (that is in full
compliance with all the reporting provisions of title
II of the Higher Education Act of 1965), a private not-
for-profit organization or for-profit organization, an
educational service agency, or another entity with
experience in helping schools improve academic
achievement.
``(C) Scientifically based research.--Technical assistance
provided under this section by a local educational agency or an
entity approved by that agency shall be based on scientifically
based research.
``(5) Failure to make adequate yearly progress after
identification.--In the case of any school served under this part
that fails to make adequate yearly progress, as 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).
``(B) System.--In order to help students served under this
part meet challenging State student academic achievement
standards, each local educational agency shall implement a
system of corrective action in accordance with subparagraphs
(C) through (E).
``(C) Role of local educational agency.--In the case of any
school served by a local educational agency under this part
that fails to make adequate yearly progress, as defined by the
State under section 1111(b)(2), by the end of the second full
school year after the identification under paragraph (1), the
local educational agency shall--
``(i) continue to provide all students enrolled in the
school with the option to transfer to another public school
served by the local educational agency, in accordance with
paragraph (1)(E) and (F);
``(ii) continue to provide technical assistance
consistent with paragraph (4) while instituting any
corrective action under clause (iv);
``(iii) continue to make supplemental educational
services available, in accordance with subsection (e), to
children who remain in the school; and
``(iv) identify the school for corrective action and
take at least one of the following corrective actions:
``(I) Replace the school staff who are relevant to
the failure to make adequate yearly progress.
``(II) Institute and fully implement a new
curriculum, including providing appropriate
professional development for all relevant staff, that
is based on scientifically based research and offers
substantial promise of improving educational
achievement for low-achieving students and enabling the
school to make adequate yearly progress.
``(III) Significantly decrease management authority
at the school level.
``(IV) Appoint an outside expert to advise the
school on its progress toward making adequate yearly
progress, based on its school plan under paragraph (3).
``(V) Extend the school year or school day for the
school.
``(VI) Restructure the internal organizational
structure of the school.
``(D) Delay.--Notwithstanding any other provision of this
paragraph, the local educational agency may delay, for a period
not to exceed 1 year, implementation of the requirements under
paragraph (5), corrective action under this paragraph, or
restructuring under paragraph (8) if the school makes adequate
yearly progress for 1 year or if its failure to make adequate
yearly progress is due to exceptional or uncontrollable
circumstances, such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the local
educational agency or school. No such period shall be taken
into account in determining the number of consecutive years of
failure to make adequate yearly progress.
``(E) Publication and dissemination.--The local educational
agency shall publish and disseminate information regarding any
corrective action the local educational agency takes under this
paragraph at a school--
``(i) to the public and to the parents of each student
enrolled in the school subject to corrective action;
``(ii) in an understandable and uniform format and, to
the extent practicable, provided in a language that the
parents can understand; and
``(iii) through such means as the Internet, the media,
and public agencies.
``(8) Restructuring.--
``(A) Failure to make adequate yearly progress.--If, after
1 full school year of corrective action under paragraph (7), a
school subject to such corrective action continues to fail to
make adequate yearly progress, then the local educational
agency shall--
``(i) continue to provide all students enrolled in the
school with the option to transfer to another public school
served by the local educational agency, in accordance with
paragraph (1)(E) and (F);
``(ii) continue to make supplemental educational
services available, in accordance with subsection (e), to
children who remain in the school; and
``(iii) prepare a plan and make necessary arrangements
to carry out subparagraph (B).
``(B) Alternative governance.--Not later than the beginning
of the school year following the year in which the local
educational agency implements subparagraph (A), the local
educational agency shall implement one of the following
alternative governance arrangements for the school consistent
with State law:
``(i) Reopening the school as a public charter school.
``(ii) Replacing all or most of the school staff (which
may include the principal) who are relevant to the failure
to make adequate yearly progress.
``(iii) Entering into a contract with an entity, such
as a private management company, with a demonstrated record
of effectiveness, to operate the public school.
``(iv) Turning the operation of the school over to the
State 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 technical assistance to such agency for the purpose
of implementing this clause.
``(C) Prompt notice.--The local educational agency shall--
``(i) provide prompt notice to teachers and parents
whenever subparagraph (A) or (B) applies; and
``(ii) provide the teachers and parents with an
adequate opportunity to--
``(I) comment before taking any action under those
subparagraphs; and
``(II) participate in developing any plan under
subparagraph (A)(iii).
``(9) Transportation.--In any case described in paragraph
(1)(E) for schools described in paragraphs (1)(A), (5), (7)(C)(i),
and (8)(A), and subsection (c)(10)(C)(vii), the local educational
agency shall provide, or shall pay for the provision of,
transportation for the student to the public school the student
attends.
``(10) Funds for transportation and supplemental educational
services.--
``(A) In general.--Unless a lesser amount is needed to
comply with paragraph (9) and to satisfy all requests for
supplemental educational services under subsection (e), a local
educational agency shall spend an amount equal to 20 percent of
its allocation under subpart 2, from which the agency shall
spend--
``(i) an amount equal to 5 percent of its allocation
under subpart 2 to provide, or pay for, transportation
under paragraph (9);
``(ii) an amount equal to 5 percent of its allocation
under subpart 2 to provide supplemental educational
services under subsection (e); and
``(iii) an amount equal to the remaining 10 percent of
its allocation under subpart 2 for transportation under
paragraph (9), supplemental educational services under
subsection (e), or both, as the agency determines.
``(B) Total amount.--The total amount described in
subparagraph (A)(ii) is the maximum amount the local
educational agency shall be required to spend under this part
on supplemental educational services described in subsection
(e).
``(C) Insufficient funds.--If the amount of funds described
in subparagraph (A)(ii) or (iii) and available to provide
services under this subsection is insufficient to provide
supplemental educational services to each child whose parents
request the services, the local educational agency shall give
priority to providing the services to the lowest-achieving
children.
``(D) Prohibition.--A local educational agency shall not,
as a result of the application of this paragraph, reduce by
more than 15 percent the total amount made available under
section 1113(c) to a school described in paragraph (7)(C) or
(8)(A) of subsection (b).
``(11) Cooperative agreement.--In any case described in
paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection
(c)(10)(C)(vii) if all public schools served by the local
educational agency to which a child may transfer are identified for
school improvement, corrective action or restructuring, the agency
shall, to the extent practicable, establish a cooperative agreement
with other local educational agencies in the area for a transfer.
``(12) Duration.--If any school identified for school
improvement, corrective action, or restructuring makes adequate
yearly progress for 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), the State may
make rewards of the kinds described under section 1117 to the
agency.
``(3) Identification of local educational agency for
improvement.--A State shall identify for improvement any local
educational agency that, for 2 consecutive years, including the
period immediately prior to the date of enactment of the No Child
Left Behind Act of 2001, failed to make adequate yearly progress as
defined in the State's plan under section 1111(b)(2).
``(4) Targeted assistance schools.--When reviewing targeted
assistance schools served by a local educational agency, a State
educational agency may choose to review the progress of only the
students in such schools who are served, or are eligible for
services, under this part.
``(5) Opportunity to review and present evidence.--
``(A) Review.--Before identifying a local educational
agency for improvement under paragraph (3) or corrective action
under paragraph (10), a State educational agency shall provide
the local educational agency with an opportunity to review the
data, including academic assessment data, on which the proposed
identification is based.
``(B) Evidence.--If the local educational agency believes
that the proposed identification is in error for statistical or
other substantive reasons, the agency may provide supporting
evidence to the State educational agency, which shall consider
the evidence before making a final determination not later than
30 days after the State educational agency provides the local
educational agency with the opportunity to review such data
under subparagraph (A).
``(6) Notification to parents.--The State educational agency
shall promptly provide to the parents (in a format and, to the
extent practicable, in a language the parents can understand) of
each student enrolled in a school served by a local educational
agency identified for improvement, the results of the review under
paragraph (1) and, if the agency is identified for improvement, the
reasons for that identification and how parents can participate in
upgrading the quality of the local educational agency.
``(7) Local educational agency revisions.--
``(A) Plan.--Each local educational agency identified under
paragraph (3) shall, not later than 3 months after being so
identified, develop or revise a local educational agency plan,
in consultation with parents, school staff, and others. Such
plan shall--
``(i) incorporate scientifically based research
strategies that strengthen the core academic program in
schools served by the local educational agency;
``(ii) identify actions that have the greatest
likelihood of improving the achievement of participating
children in meeting the State's student academic
achievement standards;
``(iii) address the professional development needs of
the instructional staff serving the agency by committing to
spend not less than 10 percent of the funds received by the
local educational agency under subpart 2 for each fiscal
year in which the agency is identified for improvement for
professional development (including funds reserved for
professional development under subsection (b)(3)(A)(iii)),
but excluding funds reserved for professional development
under section 1119;
``(iv) include specific measurable achievement goals
and targets for each of the groups of students identified
in the disaggregated data pursuant to section
1111(b)(2)(C)(v), consistent with adequate yearly progress
as defined under section 1111(b)(2);
``(v) address the fundamental teaching and learning
needs in the schools of that agency, and the specific
academic problems of low-achieving students, including a
determination of why the local educational agency's prior
plan failed to bring about increased student academic
achievement;
``(vi) incorporate, as appropriate, activities before
school, after school, during the summer, and during an
extension of the school year;
``(vii) specify the responsibilities of the State
educational agency and the local educational agency under
the plan, including specifying the technical assistance to
be provided by the State educational agency under paragraph
(9) and the local educational agency's responsibilities
under section 1120A; and
``(viii) include strategies to promote effective
parental involvement in the school.
``(B) Implementation.--The local educational agency shall
implement the plan (including a revised plan) expeditiously,
but not later than the beginning of the next school year after
the school year in which the agency was identified for
improvement.
``(9) State educational agency responsibility.--
``(A) Technical or other assistance.--For each local
educational agency identified under paragraph (3), the State
educational agency shall provide technical or other assistance
if requested, as authorized under section 1117, to better
enable the local educational agency to--
``(i) develop and implement the local educational
agency's plan; and
``(ii) work with schools needing improvement.
``(B) Methods and strategies.--Technical assistance
provided under this section by the State educational agency or
an entity authorized by such agency shall be supported by
effective methods and instructional strategies based on
scientifically based research. Such technical assistance shall
address problems, if any, in implementing the parental
involvement activities described in section 1118 and the
professional development activities described in section 1119.
``(10) Corrective action.--In order to help students served
under this part meet challenging State student academic achievement
standards, each State shall implement a system of corrective action
in accordance with the following:
``(A) Definition.--As used in this paragraph, the term
`corrective action' means action, consistent with State law,
that--
``(i) substantially and directly responds to the
consistent academic failure that caused the State to take
such action and to any underlying staffing, curricular, or
other problems in the agency; and
``(ii) is designed to meet the goal of having all
students served under this part achieve at the proficient
and advanced student academic achievement levels.
``(B) General requirements.--After providing technical
assistance under paragraph (9) and subject to subparagraph (E),
the State--
``(i) may take corrective action at any time with
respect to a local educational agency that has been
identified under paragraph (3);
``(ii) shall take corrective action with respect to any
local educational agency that fails to make adequate yearly
progress, as defined by the State, by the end of the second
full school year after the identification of the agency
under paragraph (3); and
``(iii) shall continue to provide technical assistance
while instituting any corrective action under clause (i) or
(ii).
``(C) Certain corrective actions required.--In the case of
a local educational agency identified for corrective action,
the State educational agency shall take at least one of the
following corrective actions:
``(i) Deferring programmatic funds or reducing
administrative funds.
``(ii) Instituting and fully implementing a new
curriculum that is based on State and local academic
content and achievement standards, including providing
appropriate professional development based on
scientifically based research for all relevant staff, that
offers substantial promise of improving educational
achievement for low-achieving students.
``(iii) Replacing the local educational agency
personnel who are relevant to the failure to make adequate
yearly progress.
``(iv) Removing particular schools from the
jurisdiction of the local educational agency and
establishing alternative arrangements for public governance
and supervision of such schools.
``(v) Appointing, through the State educational agency,
a receiver or trustee to administer the affairs of the
local educational agency in place of the superintendent and
school board.
``(vi) Abolishing or restructuring the local
educational agency.
``(vii) Authorizing students to transfer from a school
operated by the local educational agency to a higher-
performing public school operated by another local
educational agency in accordance with subsections (b)(1)(E)
and (F), and providing to such students transportation (or
the costs of transportation) to such schools consistent
with subsection (b)(9), in conjunction with carrying out
not less than one additional action described under this
subparagraph.
``(D) Hearing.--Prior to implementing any corrective action
under this paragraph, the State educational agency shall
provide notice and a hearing to the affected local educational
agency, if State law provides for such notice and hearing. The
hearing shall take place not later than 45 days following the
decision to implement corrective action.
``(E) Notice to parents.--The State educational agency
shall publish, and disseminate to parents and the public,
information on any corrective action the State educational
agency takes under this paragraph through such means as the
Internet, the media, and public agencies.
``(F) Delay.--Notwithstanding subparagraph (B)(ii), a State
educational agency may delay, for a period not to exceed 1
year, implementation of corrective action under this paragraph
if the local educational agency makes adequate yearly progress
for 1 year or its failure to make adequate yearly progress is
due to exceptional or uncontrollable circumstances, such as a
natural disaster or a precipitous and unforeseen decline in the
financial resources of the local educational agency. No such
period shall be taken into account in determining the number of
consecutive years of failure to make adequate yearly progress.
``(11) Special rule.--If a local educational agency makes
adequate yearly progress for 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;
``(ii) the identity of approved providers of those
services that are within the local educational agency or
whose services are reasonably available in neighboring
local educational agencies; and
``(iii) a brief description of the services,
qualifications, and demonstrated effectiveness of each such
provider;
``(B) if requested, assist parents in choosing a provider
from the list of approved providers maintained by the State;
``(C) apply fair and equitable procedures for serving
students if the number of spaces at approved providers is not
sufficient to serve all students; and
``(D) not disclose to the public the identity of any
student who is eligible for, or receiving, supplemental
educational services under this subsection without the written
permission of the parents of the student.
``(3) Agreement.--In the case of the selection of an approved
provider by a parent, the local educational agency shall enter into
an agreement with such provider. Such agreement shall--
``(A) require the local educational agency to develop, in
consultation with parents (and the provider chosen by the
parents), a statement of specific achievement goals for the
student, how the student's progress will be measured, and a
timetable for improving achievement that, in the case of a
student with disabilities, is consistent with the student's
individualized education program under section 614(d) of the
Individuals with Disabilities Education Act;
``(B) describe how the student's parents and the student's
teacher or teachers will be regularly informed of the student's
progress;
``(C) provide for the termination of such agreement if the
provider is unable to meet such goals and timetables;
``(D) contain provisions with respect to the making of
payments to the provider by the local educational agency; and
``(E) prohibit the provider from disclosing to the public
the identity of any student eligible for, or receiving,
supplemental educational services under this subsection without
the written permission of the parents of such student.
``(4) State educational agency responsibilities.--A State
educational agency shall--
``(A) in consultation with local educational agencies,
parents, teachers, and other interested members of the public,
promote maximum participation by providers to ensure, to the
extent practicable, that parents have as many choices as
possible;
``(B) develop and apply objective criteria, consistent with
paragraph (5), to potential providers that are based on a
demonstrated record of effectiveness in increasing the academic
proficiency of students in subjects relevant to meeting the
State academic content and student achievement standards
adopted under section 1111(b)(1);
``(C) maintain an updated list of approved providers across
the State, by school district, from which parents may select;
``(D) develop, implement, and publicly report on standards
and techniques for monitoring the quality and effectiveness of
the services offered by approved providers under this
subsection, and for withdrawing approval from providers that
fail, for 2 consecutive years, to contribute to increasing the
academic proficiency of students served under this subsection
as described in subparagraph (B); and
``(E) provide annual notice to potential providers of
supplemental educational services of the opportunity to provide
services under this subsection and of the applicable procedures
for obtaining approval from the State educational agency to be
an approved provider of those services.
``(5) Criteria for providers.--In order for a provider to be
included on the State list under paragraph (4)(C), a provider shall
agree to carry out the following:
``(A) Provide parents of children receiving supplemental
educational services under this subsection and the appropriate
local educational agency with information on the progress of
the children in increasing achievement, in a format and, to the
extent practicable, a language that such parents can
understand.
``(B) Ensure that instruction provided and content used by
the provider are consistent with the instruction provided and
content used by the local educational agency and State, and are
aligned with State student academic achievement standards.
``(C) Meet all applicable Federal, State, and local health,
safety, and civil rights laws.
``(D) Ensure that all instruction and content under this
subsection are secular, neutral, and nonideological.
``(6) Amounts for supplemental educational services.--The
amount that a local educational agency shall make available for
supplemental educational services for each child receiving those
services under this subsection shall be the lesser of--
``(A) the amount of the agency's allocation under subpart
2, divided by the number of children from families below the
poverty level counted under section 1124(c)(1)(A); or
``(B) the actual costs of the supplemental educational
services received by the child.
``(7) Funds provided by state educational agency.--Each State
educational agency may use funds that the agency reserves under
this part, and part A of title V, to assist local educational
agencies that do not have sufficient funds to provide services
under this subsection for all eligible students requesting such
services.
``(8) Duration.--The local educational agency shall continue to
provide supplemental educational services to a child receiving such
services under this subsection until the end of the school year in
which such services were first received.
``(9) Prohibition.--Nothing contained in this subsection shall
permit the making of any payment for religious worship or
instruction.
``(10) Waiver.--
``(A) Requirement.--At the request of a local educational
agency, a State educational agency may waive, in whole or in
part, the requirement of this subsection to provide
supplemental educational services if the State educational
agency determines that--
``(i) none of the providers of those services on the
list approved by the State educational agency under
paragraph (4)(C) makes those services available in the area
served by the local educational agency or within a
reasonable distance of that area; and
``(ii) the local educational agency provides evidence
that it is not able to provide those services.
``(B) Notification.--The State educational agency shall
notify the local educational agency, within 30 days of
receiving the local educational agency's request for a waiver
under subparagraph (A), whether the request is approved or
disapproved and, if disapproved, the reasons for the
disapproval, in writing.
``(11) Special rule.--If State law prohibits a State
educational agency from carrying out one or more of its
responsibilities under paragraph (4) with respect to those who
provide, or seek approval to provide, supplemental educational
services, each local educational agency in the State shall carry
out those responsibilities with respect to its students who are
eligible for those services.
``(12) Definitions.--In this subsection--
``(A) the term `eligible child' means a child from a low-
income family, as determined by the local educational agency
for purposes of allocating funds to schools under section
1113(c)(1);
``(B) the term `provider' means a non-profit entity, a for-
profit entity, or a local educational agency that--
``(i) has a demonstrated record of effectiveness in
increasing student academic achievement;
``(ii) is capable of providing supplemental educational
services that are consistent with the instructional program
of the local educational agency and the academic standards
described under section 1111; and
``(iii) is financially sound; and
``(C) the term `supplemental educational services' means
tutoring and other supplemental academic enrichment services
that are--
``(i) in addition to instruction provided during the
school day; and
``(ii) are of high quality, research-based, and
specifically designed to increase the academic achievement
of eligible children on the academic assessments required
under section 1111 and attain proficiency in meeting the
State's academic achievement standards.
``(f) Schools and LEAs Previously Identified for Improvement or
Corrective Action.--
``(1) Schools.--
``(A) School improvement.--
``(i) Schools in school-improvement status before date
of enactment.--Any school that was in the first year of
school improvement status under this section on the day
preceding the date of enactment of the No Child Left Behind
Act of 2001 (as this section was in effect on such day)
shall be treated by the local educational agency as a
school that is in the first year of school improvement
status under paragraph (1).
``(ii) Schools in school-improvement status for 2 or
more years before date of enactment.--Any school that was
in school improvement status under this section for 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) Special rule.--For the schools and other local
educational agencies described under paragraphs (1) and (2), as
required, the State shall ensure that public school choice in
accordance with subparagraphs (b)(1)(E) and (F) and
supplemental education services in accordance with subsection
(e) are provided not later than the first day of the 2002-2003
school year.
``(D) Transition.--With respect to a determination that a
local educational agency has for 2 consecutive years failed to
make adequate yearly progress as defined in the State plan
under section 1111(b)(2), such determination shall include in
such 2-year period any continuous period of time immediately
preceding the date of enactment of the No Child Left Behind Act
of 2001 during which the agency has failed to make such
progress.
``(g) Schools Funded by the Bureau of Indian Affairs.--
``(1) Adequate yearly progress for bureau funded schools.--
``(A) Development of definition.--
``(i) Definition.--The Secretary of the Interior, in
consultation with the Secretary if the Secretary of
Interior requests the consultation, using the process set
out in section 1138(b) of the Education Amendments of 1978,
shall define adequate yearly progress, consistent with
section 1111(b), for the schools funded by the Bureau of
Indian Affairs on a regional or tribal basis, as
appropriate, taking into account the unique circumstances
and needs of such schools and the students served by such
schools.
``(ii) Use of definition.--The Secretary of the
Interior, consistent with clause (i), may use the
definition of adequate yearly progress that the State in
which the school that is funded by the Bureau is located
uses consistent with section 1111(b), or in the case of
schools that are located in more than 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. If
such definition is waived, the tribal governing body or school
board shall, within 60 days thereafter, submit to the Secretary
of Interior a proposal for an alternative definition of
adequate yearly progress, consistent with section 1111(b), that
takes into account the unique circumstances and needs of such
school or schools and the students served. The Secretary of the
Interior, in consultation with the Secretary if the Secretary
of Interior requests the consultation, shall approve such
alternative definition unless the Secretary determines that the
definition does not meet the requirements of section 1111(b),
taking into account the unique circumstances and needs of such
school or schools and the students served.
``(C) Technical assistance.--The Secretary of Interior
shall, in consultation with the Secretary if the Secretary of
Interior requests the consultation, either directly or through
a contract, provide technical assistance, upon request, to a
tribal governing body or school board of a school funded by the
Bureau of Indian Affairs that seeks to develop an alternative
definition of adequate yearly progress.
``(2) Accountability for bia schools.--For the purposes of this
section, schools funded by the Bureau of Indian Affairs shall be
considered schools subject to subsection (b), as specifically
provided for in this subsection, except that such schools shall not
be subject to subsection (c), or the requirements to provide public
school choice and supplemental educational services under
subsections (b) and (e).
``(3) School improvement for bureau schools.--
``(A) Contract and grant schools.--For a school funded by
the Bureau of Indian Affairs which is operated under a contract
issued by the Secretary of the Interior pursuant to the Indian
Self-Determination Act (25 U.S.C. 450 et seq.) or under a grant
issued by the Secretary of the Interior pursuant to the
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et
seq.), the school board of such school shall be responsible for
meeting the requirements of subsection (b) relating to
development and implementation of any school improvement plan
as described in subsections (b)(1) through (b)(3), and
subsection (b)(5), other than subsection (b)(1)(E). The Bureau
of Indian Affairs shall be responsible for meeting the
requirements of subsection (b)(4) relating to technical
assistance.
``(B) Bureau operated schools.--For schools operated by the
Bureau of Indian Affairs, the Bureau shall be responsible for
meeting the requirements of subsection (b) relating to
development and implementation of any school improvement plan
as described in subsections (b)(1) through (b)(5), other than
subsection (b)(1)(E).
``(4) Corrective action and restructuring for bureau-funded
schools.--
``(A) Contract and grant schools.--For a school funded by
the Bureau of Indian Affairs which is operated under a contract
issued by the Secretary of the Interior pursuant to the Indian
Self-Determination Act (25 U.S.C. 450 et seq.) or under a grant
issued by the Secretary of the Interior pursuant to the
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et
seq.), the school board of such school shall be responsible for
meeting the requirements of subsection (b) relating to
corrective action and restructuring as described in subsection
(b)(7) and (b)(8). Any action taken by such school board under
subsection (b)(7) or (b)(8) shall take into account the unique
circumstances and structure of the Bureau of Indian Affairs-
funded school system and the laws governing that system.
``(B) Bureau operated schools.--For schools operated by the
Bureau of Indian Affairs, the Bureau shall be responsible for
meeting the requirements of subsection (b) relating to
corrective action and restructuring as described in subsection
(b)(7) and (b)(8). Any action taken by the Bureau under
subsection (b)(7) or (b)(8) shall take into account the unique
circumstances and structure of the Bureau of Indian Affairs-
funded school system and the laws governing that system.
``(5) Annual report.--On an annual basis, the Secretary of the
Interior shall report to the Secretary of Education and to the
appropriate committees of Congress regarding any schools funded by
the Bureau of Indian Affairs which have been identified for school
improvement. Such report shall include--
``(A) the identity of each school;
``(B) a statement from each affected school board regarding
the factors that lead to such identification; and
``(C) an analysis by the Secretary of the Interior, in
consultation with the Secretary if the Secretary of Interior
requests the consultation, as to whether sufficient resources
were available to enable such school to achieve adequate yearly
progress.
``(h) Other Agencies.--After receiving the notice described in
subsection (b)(14)(D), the Secretary may notify, to the extent feasible
and necessary as determined by the Secretary, other relevant Federal
agencies regarding the major factors that were determined by the State
educational agency to have significantly affected student academic
achievement.
``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.
``(a) System for Support.--
``(1) In general.--Each State shall establish a statewide
system of intensive and sustained support and improvement for local
educational agencies and schools receiving funds under this part,
in order to increase the opportunity for all students served by
those agencies and schools to meet the State's academic content
standards and student academic achievement standards.
``(2) Priorities.--In carrying out this subsection, a State
shall--
``(A) first, provide support and assistance to local
educational agencies with schools subject to corrective action
under section 1116 and assist those schools, in accordance with
section 1116(b)(11), for which a local educational agency has
failed to carry out its responsibilities under paragraphs (7)
and (8) of section 1116(b);
``(B) second, provide support and assistance to other local
educational agencies with schools identified as in need of
improvement under section 1116(b); and
``(C) third, provide support and assistance to other local
educational agencies and schools participating under this part
that need that support and assistance in order to achieve the
purpose of this part.
``(3) Regional centers.--Such a statewide system shall, to the
extent practicable, work with and receive support and assistance
from the comprehensive regional technical assistance centers and
the regional educational laboratories under section 941(h) of the
Educational Research, Development, Dissemination, and Improvement
Act of 1994, or other providers of technical assistance.
``(4) Statewide system.--
``(A) In order to achieve the purpose described in
paragraph (1), the statewide system shall include, at a
minimum, the following approaches:
``(i) Establishing school support teams in accordance
with subparagraph (C) for assignment to, and working in,
schools in the State that are described in paragraph (2).
``(ii) Providing such support as the State educational
agency determines necessary and available in order to
ensure the effectiveness of such teams.
``(iii) Designating and using distinguished teachers
and principals who are chosen from schools served under
this part that have been especially successful in improving
academic achievement.
``(iv) Devising additional approaches to providing the
assistance described in paragraph (1), such as providing
assistance through institutions of higher education and
educational service agencies or other local consortia, and
private providers of scientifically based technical
assistance.
``(B) Priority.--The State educational agency shall give
priority to the approach described in clause (i) of
subparagraph (A).
``(5) School support teams.--
``(A) Composition.--Each school support team established
under this section shall be composed of persons knowledgeable
about scientifically based research and practice on teaching
and learning and about successful schoolwide projects, school
reform, and improving educational opportunities for low-
achieving students, including--
``(i) highly qualified or distinguished teachers and
principals;
``(ii) pupil services personnel;
``(iii) parents;
``(iv) representatives of institutions of higher
education;
``(v) representatives of regional educational
laboratories or comprehensive regional technical assistance
centers;
``(vi) representatives of outside consultant groups; or
``(vii) other individuals as the State educational
agency, in consultation with the local educational agency,
may determine appropriate.
``(B) Functions.--Each school support team assigned to a
school under this section shall--
``(i) review and analyze all facets of the school's
operation, including the design and operation of the
instructional program, and assist the school in developing
recommendations for improving student performance in that
school;
``(ii) collaborate with parents and school staff and
the local educational agency serving the school in the
design, implementation, and monitoring of a plan that, if
fully implemented, can reasonably be expected to improve
student performance and help the school meet its goals for
improvement, including adequate yearly progress under
section 1111(b)(2)(B);
``(iii) evaluate, at least semiannually, the
effectiveness of school personnel assigned to the school,
including identifying outstanding teachers and principals,
and make findings and recommendations to the school, the
local educational agency, and, where appropriate, the State
educational agency; and
``(iv) make additional recommendations as the school
implements the plan described in clause (ii) to the local
educational agency and the State educational agency
concerning additional assistance that is needed by the
school or the school support team.
``(C) Continuation of assistance.--After 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 appropriate, take
alternative actions with regard to the school.
``(b) State Recognition.--
``(1) Academic achievement awards program.--
``(A) In general.--Each State receiving a grant under this
part--
``(i) shall establish a program for making academic
achievement awards to recognize schools that meet the
criteria described in subparagraph (B); and
``(ii) as appropriate and as funds are available under
subsection (c)(2)(A), may financially reward schools served
under this part that meet the criteria described in clause
(ii).
``(B) Criteria.--The criteria referred to in subparagraph
(A) are that a school--
``(i) significantly closed the achievement gap between
the groups of students described in section 1111(b)(2); or
``(ii) exceeded their adequate yearly progress,
consistent with section 1111(b)(2), for 2 or more
consecutive years.
``(2) Distinguished schools.--Of those schools meeting the
criteria described in paragraph (2), each State shall designate as
distinguished schools those schools that have made the greatest
gains in closing the achievement gap as described in subparagraph
(B)(i) or exceeding adequate yearly progress as described in
subparagraph (B)(ii). Such distinguished schools may serve as
models for and provide support to other schools, especially schools
identified for improvement under section 1116, to assist such
schools in meeting the State's academic content standards and
student academic achievement standards.
``(3) Awards to teachers.--A State program under paragraph (1)
may also recognize and provide financial awards to teachers
teaching in a school described in such paragraph that consistently
makes significant gains in academic achievement in the areas in
which the teacher provides instruction, or to teachers or
principals designated as distinguished under subsection
(a)(4)(A)(iii).
``(c) Funding.--
``(1) In general.--Each State--
``(A) shall use funds reserved under section 1003(a) and
may use funds made available under section 1003(g) for the
approaches described under subsection (a)(4)(A); and
``(B) shall use State administrative funds authorized under
section 1004(a) to establish the statewide system of support
described under subsection (a).
``(2) Reservations of funds by state.--
``(A) Awards program.--For the purpose of carrying out
subsection (b)(1), each State receiving a grant under this part
may reserve, from the amount (if any) by which the funds
received by the State under subpart 2 for a fiscal year exceed
the amount received by the State under that subpart for the
preceding fiscal year, not more than 5 percent of such excess
amount.
``(B) Teacher awards.--For the purpose of carrying out
subsection (b)(3), a State educational agency may reserve such
funds as necessary from funds made available under section
2113.
``(3) Use within 3 years.--Notwithstanding any other provision
of law, the amount reserved under subparagraph (A) by a State for
each fiscal year shall remain available to the State until expended
for a period not exceeding 3 years receipt of funds.
``(4) Special allocation rule for schools in high-poverty
areas.--
``(A) In general.--Each State shall distribute not less
than 75 percent of any amount reserved under paragraph (2)(A)
for each fiscal year to schools described in subparagraph (B),
or to teachers 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.
``(a) Local Educational Agency Policy.--
``(1) In general.--A local educational agency may receive funds
under this part only if such agency implements programs,
activities, and procedures for the involvement of parents in
programs assisted under this part consistent with this section.
Such programs, activities, and procedures shall be planned and
implemented with meaningful consultation with parents of
participating children.
``(2) Written policy.--Each local educational agency that
receives funds under this part shall develop jointly with, agree on
with, and distribute to, parents of participating children a
written parent involvement policy. The policy shall be incorporated
into the local educational agency's plan developed under section
1112, establish the agency's expectations for parent involvement,
and describe how the agency will--
``(A) involve parents in the joint development of the plan
under section 1112, and the process of school review and
improvement under section 1116;
``(B) provide the coordination, technical assistance, and
other support necessary to assist participating schools in
planning and implementing effective parent involvement
activities to improve student academic achievement and school
performance;
``(C) build the schools' and parents' capacity for strong
parental involvement as described in subsection (e);
``(D) coordinate and integrate parental involvement
strategies under this part with parental involvement strategies
under other programs, such as the Head Start program, Reading
First program, Early Reading First program, Even Start program,
Parents as Teachers program, and Home Instruction Program for
Preschool Youngsters, and State-run preschool programs;
``(E) conduct, with the involvement of parents, an annual
evaluation of the content and effectiveness of the parental
involvement policy in improving the academic quality of the
schools served under this part, including identifying barriers
to greater participation by parents in activities authorized by
this section (with particular attention to parents who are
economically disadvantaged, are disabled, have limited English
proficiency, have limited literacy, or are of any racial or
ethnic minority background), and use the findings of such
evaluation to design strategies for more effective parental
involvement, and to revise, if necessary, the parental
involvement policies described in this section; and
``(F) involve parents in the activities of the schools
served under this part.
``(3) Reservation.--
``(A) In general.--Each local educational agency shall
reserve not less than 1 percent of such agency's allocation
under subpart 2 of this part to carry out this section,
including promoting family literacy and parenting skills,
except that this paragraph shall not apply if 1 percent of such
agency's allocation under subpart 2 of this part for the fiscal
year for which the determination is made is $5,000 or less.
``(B) Parental input.--Parents of children receiving
services under this part shall be involved in the decisions
regarding how funds reserved under subparagraph (A) are
allotted for parental involvement activities.
``(C) Distribution of funds.--Not less than 95 percent of
the funds reserved under subparagraph (A) shall be distributed
to schools served under this part.
``(b) School Parental Involvement Policy.--
``(1) In general.--Each school served under this part shall
jointly develop with, and distribute to, parents of participating
children a written parental involvement policy, agreed on by such
parents, that shall describe the means for carrying out the
requirements of subsections (c) through (f). Parents shall be
notified of the policy in an understandable and uniform format and,
to the extent practicable, provided in a language the parents can
understand. Such policy shall be made available to the local
community and updated periodically to meet the changing needs of
parents and the school.
``(2) Special rule.--If the school has a parental involvement
policy that applies to all parents, such school may amend that
policy, if necessary, to meet the requirements of this subsection.
``(3) Amendment.--If the local educational agency involved has
a school district-level parental involvement policy that applies to
all parents, such agency may amend that policy, if necessary, to
meet the requirements of this subsection.
``(4) Parental comments.--If the plan under section 1112 is not
satisfactory to the parents of participating children, the local
educational agency shall submit any parent comments with such plan
when such local educational agency submits the plan to the State.
``(c) Policy Involvement.--Each school served under this part
shall--
``(1) convene an annual meeting, at a convenient time, to which
all parents of participating children shall be invited and
encouraged to attend, to inform parents of their school's
participation under this part and to explain the requirements of
this part, and the right of the parents to be involved;
``(2) offer a flexible number of meetings, such as meetings in
the morning or evening, and may provide, with funds provided under
this part, transportation, child care, or home visits, as such
services relate to parental involvement;
``(3) involve parents, in an organized, ongoing, and timely
way, in the planning, review, and improvement of programs under
this part, including the planning, review, and improvement of the
school parental involvement policy and the joint development of the
schoolwide program plan under section 1114(b)(2), except that if a
school has in place a process for involving parents in the joint
planning and design of the school's programs, the school may use
that process, if such process includes an adequate representation
of parents of participating children;
``(4) provide parents of participating children--
``(A) timely information about programs under this part;
``(B) a description and explanation of the curriculum in
use at the school, the forms of academic assessment used to
measure student progress, and the proficiency levels students
are expected to meet; and
``(C) if requested by parents, opportunities for regular
meetings to formulate suggestions and to participate, as
appropriate, in decisions relating to the education of their
children, and respond to any such suggestions as soon as
practicably possible; and
``(5) if the schoolwide program plan under section 1114(b)(2)
is not satisfactory to the parents of participating children,
submit any parent comments on the plan when the school makes the
plan available to the local educational agency.
``(d) Shared Responsibilities for High Student Academic
Achievement.--As a component of the school-level parental involvement
policy developed under subsection (b), each school served under this
part shall jointly develop with parents for all children served under
this part a school-parent compact that outlines how parents, the entire
school staff, and students will share the responsibility for improved
student academic achievement and the means by which the school and
parents will build and develop a partnership to help children achieve
the State's high standards. Such compact shall--
``(1) describe the school's responsibility to provide high-
quality curriculum and instruction in a supportive and effective
learning environment that enables the children served under this
part to meet the State's student academic achievement standards,
and the ways in which each parent will be responsible for
supporting their children's learning, such as monitoring
attendance, homework completion, and television watching;
volunteering in their child's classroom; and participating, as
appropriate, in decisions relating to the education of their
children and positive use of extracurricular time; and
``(2) address the importance of communication between teachers
and parents on an ongoing basis through, at a minimum--
``(A) parent-teacher conferences in elementary schools, at
least annually, during which the compact shall be discussed as
the compact relates to the individual child's achievement;
``(B) frequent reports to parents on their children's
progress; and
``(C) reasonable access to staff, opportunities to
volunteer and participate in their child's class, and
observation of classroom activities.
``(e) Building Capacity for Involvement.--To ensure effective
involvement of parents and to support a partnership among the school
involved, parents, and the community to improve student academic
achievement, each school and local educational agency assisted under
this part--
``(1) shall provide assistance to parents of children served by
the school or local educational agency, as appropriate, in
understanding such topics as the State's academic content standards
and State student academic achievement standards, State and local
academic assessments, the requirements of this part, and how to
monitor a child's progress and work with educators to improve the
achievement of their children;
``(2) shall provide materials and training to help parents to
work with their children to improve their children's achievement,
such as literacy training and using technology, as appropriate, to
foster parental involvement;
``(3) shall educate teachers, pupil services personnel,
principals, and other staff, with the assistance of parents, in the
value and utility of contributions of parents, and in how to reach
out to, communicate with, and work with parents as equal partners,
implement and coordinate parent programs, and build ties between
parents and the school;
``(4) shall, to the extent feasible and appropriate, coordinate
and integrate parent involvement programs and activities with Head
Start, Reading First, Early Reading First, Even Start, the Home
Instruction Programs for Preschool Youngsters, the Parents as
Teachers Program, and public preschool and other programs, and
conduct other activities, such as parent resource centers, that
encourage and support parents in more fully participating in the
education of their children;
``(5) shall ensure that information related to school and
parent programs, meetings, and other activities is sent to the
parents of participating children in a format and, to the extent
practicable, in a language the parents can understand;
``(6) may involve parents in the development of training for
teachers, principals, and other educators to improve the
effectiveness of such training;
``(7) may provide necessary literacy training from funds
received under this part if the local educational agency has
exhausted all other reasonably available sources of funding for
such training;
``(8) may pay reasonable and necessary expenses associated with
local parental involvement activities, including transportation and
child care costs, to enable parents to participate in school-
related meetings and training sessions;
``(9) may train parents to enhance the involvement of other
parents;
``(10) may arrange school meetings at a variety of times, or
conduct in-home conferences between teachers or other educators,
who work directly with participating children, with parents who are
unable to attend such conferences at school, in order to maximize
parental involvement and participation;
``(11) may adopt and implement model approaches to improving
parental involvement;
``(12) may establish a districtwide parent advisory council to
provide advice on all matters related to parental involvement in
programs supported under this section;
``(13) may develop appropriate roles for community-based
organizations and businesses in parent involvement activities; and
``(14) shall provide such other reasonable support for parental
involvement activities under this section as parents may request.
``(f) Accessibility.--In carrying out the parental involvement
requirements of this part, local educational agencies and schools, to
the extent practicable, shall provide full opportunities for the
participation of parents with limited English proficiency, parents with
disabilities, and parents of migratory children, including providing
information and school reports required under section 1111 in a format
and, to the extent practicable, in a language such parents understand.
``(g) Information From Parental Information and Resource Centers.--
In a State where a parental information and resource center is
established to provide training, information, and support to parents
and individuals who work with local parents, local educational
agencies, and schools receiving assistance under this part, each local
educational agency or school that receives assistance under this part
and is located in the State shall assist parents and parental
organizations by informing such parents and organizations of the
existence and purpose of such centers.
``(h) Review.--The State educational agency shall review the local
educational agency's parental involvement policies and practices to
determine if the policies and practices meet the requirements of this
section.
``SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.
``(a) Teacher Qualifications and Measurable Objectives.--
``(1) In general.--Beginning with the first day of the first
school year after the date of enactment of the No Child Left Behind
Act of 2001, each local educational agency receiving assistance
under this part shall ensure that all teachers hired after such day
and teaching in a program supported with funds under this part are
highly qualified.
``(2) State plan.--As part of the plan described in section
1111, each State educational agency receiving assistance under this
part shall develop a plan to ensure that all teachers teaching in
core academic subjects within the State are highly qualified not
later than the end of the 2005-2006 school year. Such plan shall
establish annual measurable objectives for each local educational
agency and school that, at a minimum--
``(A) shall include an annual increase in the percentage of
highly qualified teachers at each local educational agency and
school, to ensure that all teachers teaching in core academic
subjects in each public elementary school and secondary school
are highly qualified not later than the end of the 2005-2006
school year;
``(B) shall include an annual increase in the percentage of
teachers who are receiving high-quality professional
development to enable such teachers to become highly qualified
and successful classroom teachers; and
``(C) may include such other measures as the State
educational agency determines to be appropriate to increase
teacher qualifications.
``(3) Local plan.--As part of the plan described in section
1112, each local educational agency receiving assistance under this
part shall develop a plan to ensure that all teachers teaching
within the school district served by the local educational agency
are highly qualified not later than the end of the 2005-2006 school
year.
``(b) Reports.--
``(1) Annual state and local reports.--
``(A) Local reports.--Each State educational agency
described in subsection (a)(2) shall require each local
educational agency receiving funds under this part to publicly
report, each year, beginning with the 2002-2003 school year,
the annual progress of the local educational agency as a whole
and of each of the schools served by the agency, in meeting the
measurable objectives described in subsection (a)(2).
``(B) State reports.--Each State educational agency
receiving assistance under this part shall prepare and submit
each year, beginning with the 2002-2003 school year, a report
to the Secretary, describing the State educational agency's
progress in meeting the measurable objectives described in
subsection (a)(2).
``(C) Information from other reports.--A State educational
agency or local educational agency may submit information from
the reports described in section 1111(h) for the purposes of
this subsection, if such report is modified, as may be
necessary, to contain the information required by this
subsection, and may submit such information as a part of the
reports required under section 1111(h).
``(2) Annual reports by the secretary.--Each year, beginning
with the 2002-2003 school year, the Secretary shall publicly report
the annual progress of State educational agencies, local
educational agencies, and schools, in meeting the measurable
objectives described in subsection (a)(2).
``(c) New Paraprofessionals.--
``(1) In general.--Each local educational agency receiving
assistance under this part shall ensure that all paraprofessionals
hired after the date of enactment of the No Child Left Behind Act
of 2001 and working in a program supported with funds under this
part shall have--
``(A) completed at least 2 years of study at an institution
of higher education;
``(B) obtained an associate's (or higher) degree; or
``(C) met a rigorous standard of quality and can
demonstrate, through a formal State or local academic
assessment--
``(i) knowledge of, and the ability to assist in
instructing, reading, writing, and mathematics; or
``(ii) knowledge of, and the ability to assist in
instructing, reading readiness, writing readiness, and
mathematics readiness, as appropriate.
``(2) Clarification.--The receipt of a secondary school diploma
(or its recognized equivalent) shall be necessary but not
sufficient to satisfy the requirements of paragraph (1)(C).
``(d) Existing Paraprofessionals.--Each local educational agency
receiving assistance under this part shall ensure that all
paraprofessionals hired before the date of enactment of the No Child
Left Behind Act of 2001, and working in a program supported with funds
under this part shall, not later than 4 years after the date of
enactment satisfy the requirements of subsection (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 classroom
instruction or that do not benefit participating children, so
long as the amount of time spent on such duties is the same
proportion of total work time as prevails with respect to
similar personnel at the same school.
``(h) Use of Funds.--A local educational agency receiving funds
under this part may use such funds to support ongoing training and
professional development to assist teachers and paraprofessionals in
satisfying the requirements of this section.
``(i) Verification of Compliance.--
``(1) In general.--In verifying compliance with this section,
each local educational agency, at a minimum, shall require that the
principal of each school operating a program under section 1114 or
1115 attest annually in writing as to whether such school is in
compliance with the requirements of this section.
``(2) Availability of information.--Copies of attestations
under paragraph (1)--
``(A) shall be maintained at each school operating a
program under section 1114 or 1115 and at the main office of
the local educational agency; and
``(B) shall be available to any member of the general
public on request.
``(j) Combinations of Funds.--Funds provided under this part that
are used for professional development purposes may be combined with
funds provided under title II of this Act, other Acts, and other
sources.
``(k) Special Rule.--Except as provided in subsection (l), no State
educational agency shall require a school or a local educational agency
to expend a specific amount of funds for professional development
activities under this part, except that this paragraph shall not apply
with respect to requirements under section 1116(c)(3).
``(l) Minimum Expenditures.--Each local educational agency that
receives funds under this part shall use not less than 5 percent, or
more than 10 percent, of such funds for each of fiscal years 2002 and
2003, and not less than 5 percent of the funds for each subsequent
fiscal year, for professional development activities to ensure that
teachers who are not highly qualified become highly qualified not later
than the end of the 2005-2006 school year.
``SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.
``(a) General Requirement.--
``(1) In general.--To the extent consistent with the number of
eligible children identified under section 1115(b) in the school
district served by a local educational agency who are enrolled in
private elementary schools and secondary schools, a local
educational agency shall, after timely and meaningful consultation
with appropriate private school officials, provide such children,
on an equitable basis, special educational services or other
benefits under this part (such as dual enrollment, educational
radio and television, computer equipment and materials, other
technology, and mobile educational services and equipment) that
address their needs, and shall ensure that teachers and families of
the children participate, on an equitable basis, in services and
activities developed pursuant to sections 1118 and 1119.
``(2) Secular, neutral, nonideological.--Such educational
services or other benefits, including materials and equipment,
shall be secular, neutral, and nonideological.
``(3) Equity.--Educational services and other benefits for such
private school children shall be equitable in comparison to
services and other benefits for public school children
participating under this part, and shall be provided in a timely
manner.
``(4) Expenditures.--Expenditures for educational services and
other benefits to eligible private school children shall be equal
to the proportion of funds allocated to participating school
attendance areas based on the number of children from low-income
families who attend private schools, which the local educational
agency may determine each year or every 2 years.
``(5) Provision of services.--The local educational agency may
provide services under this section directly or through contracts
with public and private agencies, organizations, and institutions.
``(b) Consultation.--
``(1) In general.--To ensure timely and meaningful
consultation, a local educational agency shall consult with
appropriate private school officials during the design and
development of such agency's programs under this part, on issues
such as--
``(A) how the children's needs will be identified;
``(B) what services will be offered;
``(C) how, where, and by whom the services will be
provided;
``(D) how the services will be academically assessed and
how the results of that assessment will be used to improve
those services;
``(E) the size and scope of the equitable services to be
provided to the eligible private school children, and the
proportion of funds that is allocated under subsection (a)(4)
for such services;
``(F) the method or sources of data that are used under
subsection (c) and section 1113(c)(1) to determine the number
of children from low-income families in participating school
attendance areas who attend private schools;
``(G) how and when the agency will make decisions about the
delivery of services to such children, including a thorough
consideration and analysis of the views of the private school
officials on the provision of services through a contract with
potential third-party providers; and
``(H) how, if the agency disagrees with the views of the
private school officials on the provision of services through a
contract, the local educational agency will provide in writing
to such private school officials an analysis of the reasons why
the local educational agency has chosen not to use a
contractor.
``(2) Timing.--Such consultation shall include meetings of
agency and private school officials and shall occur before the
local educational agency makes any decision that affects the
opportunities of eligible private school children to participate in
programs under this part. Such meetings shall continue throughout
implementation and assessment of services provided under this
section.
``(3) Discussion.--Such consultation shall include a discussion
of service delivery mechanisms a local educational agency can use
to provide equitable services to eligible private school children.
``(4) Documentation.--Each local educational agency shall
maintain in the agency's records and provide to the State
educational agency involved a written affirmation signed by
officials of each participating private school that the
consultation required by this section has occurred. If such
officials do not provide such affirmation within a reasonable
period of time, the local educational agency shall forward the
documentation that such consultation has taken place to the State
educational agency.
``(5) Compliance.--
``(A) In general.--A private school official shall have the
right to complain to the State educational agency that the
local educational agency did not engage in consultation that
was meaningful and timely, or did not give due consideration to
the views of the private school official.
``(B) Procedure.--If the private school official wishes to
complain, the official shall provide the basis of the
noncompliance with this section by the local educational agency
to the State educational agency, and the local educational
agency shall forward the appropriate documentation to the State
educational agency.
``(c) Allocation for Equitable Service to Private School
Students.--
``(1) Calculation.--A local educational agency shall have the
final authority, consistent with this section, to calculate the
number of children, ages 5 through 17, who are from low-income
families and attend private schools by--
``(A) using the same measure of low income used to count
public school children;
``(B) using the results of a survey that, to the extent
possible, protects the identity of families of private school
students, and allowing such survey results to be extrapolated
if complete actual data are unavailable;
``(C) applying the low-income percentage of each
participating public school attendance area, determined
pursuant to this section, to the number of private school
children who reside in that school attendance area; or
``(D) using an equated measure of low income correlated
with the measure of low income used to count public school
children.
``(2) Complaint process.--Any dispute regarding low-income data
for private school students shall be subject to the complaint
process authorized in section 9505.
``(d) Public Control of Funds.--
``(1) In general.--The control of funds provided under this
part, and title to materials, equipment, and property purchased
with such funds, shall be in a public agency, and a public agency
shall administer such funds, materials, equipment, and property.
``(2) Provision of services.--
``(A) Provider.--The provision of services under this
section shall be provided--
``(i) by employees of a public agency; or
``(ii) through contract by such public agency with an
individual, association, agency, or organization.
``(B) Requirement.--In the provision of such services, such
employee, individual, association, agency, or organization
shall be independent of such private school and of any
religious organization, and such employment or contract shall
be under the control and supervision of such public agency.
``(e) Standards for a Bypass.--If a local educational agency is
prohibited by law from providing for the participation in programs on
an equitable basis of eligible children enrolled in private elementary
schools and secondary schools, or if the Secretary determines that a
local educational agency has substantially failed or is unwilling, to
provide for such participation, as required by this section, the
Secretary shall--
``(1) waive the requirements of this section for such local
educational agency;
``(2) arrange for the provision of services to such children
through arrangements that shall be subject to the requirements of
this section and sections 9503 and 9504; and
``(3) in making the determination under this subsection,
consider one or more factors, including the quality, size, scope,
and location of the program and the opportunity of eligible
children to participate.
``SEC. 1120A. FISCAL REQUIREMENTS.
``(a) Maintenance of Effort.--A local educational agency may
receive funds under this part for any fiscal year only if the State
educational agency involved finds that the local educational agency has
maintained the agency's fiscal effort in accordance with section 9521.
``(b) Federal Funds To Supplement, Not Supplant, Non-Federal
Funds.--
``(1) In general.--A State educational agency or local
educational agency shall use Federal funds received under this part
only to supplement the funds that would, in the absence of such
Federal funds, be made available from non-Federal sources for the
education of pupils participating in programs assisted under this
part, and not to supplant such funds.
``(2) Special rule.--No local educational agency shall be
required to provide services under this part through a particular
instructional method or in a particular instructional setting in
order to demonstrate such agency's compliance with paragraph (1).
``(c) Comparability of Services.--
``(1) In general.--
``(A) Comparable services.--Except as provided in
paragraphs (4) and (5), a local educational agency may receive
funds under this part only if State and local funds will be
used in schools served under this part to provide services
that, taken as a whole, are at least comparable to services in
schools that are not receiving funds under this part.
``(B) Substantially comparable services.--If the local
educational agency is serving all of such agency's schools
under this part, such agency may receive funds under this part
only if such agency will use State and local funds to provide
services that, taken as a whole, are substantially comparable
in each school.
``(C) Basis.--A local educational agency may meet the
requirements of subparagraphs (A) and (B) on a grade-span by
grade-span basis or a school-by-school basis.
``(2) Written assurance.--
``(A) Equivalence.--A local educational agency shall be
considered to have met the requirements of paragraph (1) if
such agency has filed with the State educational agency a
written assurance that such agency has established and
implemented--
``(i) a local educational agency-wide salary schedule;
``(ii) a policy to ensure equivalence among schools in
teachers, administrators, and other staff; and
``(iii) a policy to ensure equivalence among schools in
the provision of curriculum materials and instructional
supplies.
``(B) Determinations.--For the purpose of this subsection,
in the determination of expenditures per pupil from State and
local funds, or instructional salaries per pupil from State and
local funds, staff salary differentials for years of employment
shall not be included in such determinations.
``(C) Exclusions.--A local educational agency need not
include unpredictable changes in student enrollment or
personnel assignments that occur after the beginning of a
school year in determining comparability of services under this
subsection.
``(3) Procedures and records.--Each local educational agency
assisted under this part shall--
``(A) develop procedures for compliance with this
subsection; and
``(B) maintain records that are updated biennially
documenting such agency's compliance with this subsection.
``(4) Inapplicability.--This subsection shall not apply to a
local educational agency that does not have more than one building
for each grade span.
``(5) Compliance.--For the purpose of determining compliance
with paragraph (1), a local educational agency may exclude State
and local funds expended for--
``(A) language instruction educational programs; and
``(B) the excess costs of providing services to children
with disabilities as determined by the local educational
agency.
``(d) Exclusion of Funds.--For the purpose of complying with
subsections (b) and (c), a State educational agency or local
educational agency may exclude supplemental State or local funds
expended in any school attendance area or school for programs that meet
the intent and purposes of this part.
``SEC. 1120B. COORDINATION REQUIREMENTS.
``(a) In General.--Each local educational agency receiving
assistance under this part shall carry out the activities described in
subsection (b) with Head Start agencies and, if feasible, other
entities carrying out early childhood development programs such as the
Early Reading First program.
``(b) Activities.--The activities referred to in subsection (a) are
activities that increase coordination between the local educational
agency and a Head Start agency and, if feasible, other entities
carrying out early childhood development programs, such as the Early
Reading First program, serving children who will attend the schools of
the local educational agency, including--
``(1) developing and implementing a systematic procedure for
receiving records regarding such children, transferred with
parental consent from a Head Start program or, where applicable,
another early childhood development program such as the Early
Reading First program;
``(2) establishing channels of communication between school
staff and their counterparts (including teachers, social workers,
and health staff) in such Head Start agencies or other entities
carrying out early childhood development programs such as the Early
Reading First program, as appropriate, to facilitate coordination
of programs;
``(3) conducting meetings involving parents, kindergarten or
elementary school teachers, and Head Start teachers or, if
appropriate, teachers from other early childhood development
programs such as the Early Reading First program, to discuss the
developmental and other needs of individual children;
``(4) organizing and participating in joint transition-related
training of school staff, Head Start program staff, Early Reading
First program staff, and, where appropriate, other early childhood
development program staff; and
``(5) linking the educational services provided by such local
educational agency with the services provided by local Head Start
agencies and entities carrying out Early Reading First programs.
``(c) Coordination of Regulations.--The Secretary shall work with
the Secretary of Health and Human Services to coordinate regulations
promulgated under this part with regulations promulgated under the Head
Start Act.
``Subpart 2--Allocations
``SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE
INTERIOR.
``(a) Reservation of Funds.--From the amount appropriated for
payments to States for any fiscal year under section 1002(a) and
1125A(f), the Secretary shall reserve a total of 1 percent to provide
assistance to--
``(1) the outlying areas in the amount determined in accordance
with subsection (b); and
``(2) the Secretary of the Interior in the amount necessary to
make payments pursuant to subsection (d).
``(b) Assistance to Outlying Areas.--
``(1) Funds reserved.--From the amount made available for any
fiscal year under subsection (a), the Secretary shall award grants
to local educational agencies in the outlying areas.
``(2) Competitive grants.--Until each appropriate outlying area
enters into an agreement for extension of United States educational
assistance under the Compact of Free Association after the date of
enactment of the No Child Left Behind Act of 2001, the Secretary
shall carry out the competition described in paragraph (3), except
that the amount reserved to carry out such competition shall not
exceed $5,000,000.
``(3) Limitation for competitive grants.--
``(A) Competitive grants.--The Secretary shall use funds
described in paragraph (2) to award grants to the outlying
areas and freely associated States to carry out the purposes of
this part.
``(B) Award basis.--The Secretary shall award grants under
subparagraph (A) on a competitive basis, taking into
consideration the recommendations of the Pacific Region
Educational Laboratory in Honolulu, Hawaii.
``(C) Uses.--Except as provided in subparagraph (D), grant
funds awarded under this paragraph may be used only--
``(i) for programs described in this Act, including
teacher training, curriculum development, instructional
materials, or general school improvement and reform; and
``(ii) to provide direct educational services that
assist all students with meeting challenging State academic
content standards.
``(D) Administrative costs.--The Secretary may provide not
more than 5 percent of the amount reserved for grants under
this paragraph to pay the administrative costs of the Pacific
Region Educational Laboratory under subparagraph (B).
``(4) Special rule.--The provisions of Public Law 95-134,
permitting the consolidation of grants by the outlying areas, shall
not apply to funds provided to the freely associated States under
this section.
``(c) Definitions.--For the purpose of subsections (a) and (b)--
``(1) the term `freely associated states' means the Republic of
the Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau; and
``(2) the term `outlying area' means the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands.
``(d) Allotment to the Secretary of the Interior.--
``(1) In general.--The amount allotted for payments to the
Secretary of the Interior under subsection (a)(2) for any fiscal
year shall be, as determined pursuant to criteria established by
the Secretary, the amount necessary to meet the special educational
needs of--
``(A) Indian children on reservations served by elementary
schools and secondary schools for Indian children operated or
supported by the Department of the Interior; and
``(B) out-of-State Indian children in elementary schools
and secondary schools in local educational agencies under
special contracts with the Department of the Interior.
``(2) Payments.--From the amount allotted for payments to the
Secretary of the Interior under subsection (a)(2), the Secretary of
the Interior shall make payments to local educational agencies, on
such terms as the Secretary determines will best carry out the
purposes of this part, with respect to out-of-State Indian children
described in paragraph (1). The amount of such payment may not
exceed, for each such child, the greater of--
``(A) 40 percent of the average per-pupil expenditure in
the State in which the agency is located; or
``(B) 48 percent of such expenditure in the United States.
``SEC. 1122. ALLOCATIONS TO STATES.
``(a) Allocation Formula.--Of the amount appropriated under section
1002(a) to carry out this part for each of fiscal years 2002-2007
(referred to in this subsection as the current fiscal year)--
``(1) an amount equal to the amount made available to carry out
section 1124 for fiscal year 2001 shall be allocated in accordance
with section 1124;
``(2) an amount equal to the amount made available to carry out
section 1124A for fiscal year 2001 shall be allocated in accordance
with section 1124A; and
``(3) an amount equal to 100 percent of the amount, if any, by
which the amount made available to carry out sections 1124, 1124A,
and 1125 for the current fiscal year for which the determination is
made exceeds the amount available to carry out sections 1124 and
1124A for fiscal year 2001 shall be allocated in accordance with
section 1125.
``(b) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this subpart for
any fiscal year are insufficient to pay the full amounts that all
local educational agencies in States are eligible to receive under
sections 1124, 1124A, and 1125 for such year, the Secretary shall
ratably reduce the allocations to such local educational agencies,
subject to subsections (c) and (d) of this section.
``(2) Additional funds.--If additional funds become available
for making payments under sections 1124, 1124A, and 1125 for such
fiscal year, allocations that were reduced under paragraph (1)
shall be increased on the same basis as they were reduced.
``(c) Hold-Harmless Amounts.--
``(1) Amounts for sections 1124, 1124a, and 1125.--For each
fiscal year, the amount made available to each local educational
agency under each of sections 1124, 1124A, and 1125 shall be--
``(A) not less than 95 percent of the amount made available
for the preceding fiscal year if the number of children counted
for grants under section 1124 is not less than 30 percent of
the total number of children aged 5 to 17 years, inclusive, in
the local educational agency;
``(B) not less than 90 percent of the amount made available
for the preceding fiscal year if the percentage described in
subparagraph (A) is between 15 percent and 30 percent; and
``(C) not less than 85 percent of the amount made available
for the preceding fiscal year if the percentage described in
subparagraph (A) is below 15 percent.
``(2) Payments.--If sufficient funds are appropriated, the
amounts described in paragraph (1) shall be paid to all local
educational agencies that received grants under section 1124A for
the preceding fiscal year, regardless of whether the local
educational agency meets the minimum eligibility criteria for that
fiscal year described in section 1124A(a)(1)(A) except that a local
educational agency that does not meet such minimum eligibility
criteria for 4 consecutive years shall no longer be eligible to
receive a hold harmless amount referred to in paragraph (1).
``(3) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the fiscal
year under any program administered by the Secretary other than a
program authorized under this part.
``(4) Population data.--For any fiscal year for which the
Secretary calculates grants on the basis of population data for
counties, the Secretary shall apply the hold-harmless percentages
in paragraphs (1) and (2) to counties and, if the Secretary's
allocation for a county is not sufficient to meet the hold-harmless
requirements of this subsection for every local educational agency
within that county, the State educational agency shall reallocate
funds proportionately from all other local educational agencies in
the State that are receiving funds in excess of the hold-harmless
amounts specified in this subsection.
``(d) Ratable Reductions.--
``(1) In general.--If the sums made available under this
subpart for any fiscal year are insufficient to pay the full
amounts that local educational agencies in all States are eligible
to receive under subsection (c) for such year, the Secretary shall
ratably reduce such amounts for such year.
``(2) Additional funds.--If additional funds become available
for making payments under subsection (c) for such fiscal year,
amounts that were reduced under paragraph (1) shall be increased on
the same basis as such amounts were reduced.
``(e) Definition.--For the purpose of this section and sections
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50
States, the District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Amount of Grants.--
``(1) Grants for local educational agencies and puerto rico.--
Except as provided in paragraph (4) and in section 1126, the grant
that a local educational agency is eligible to receive under this
section for a fiscal year is the amount determined by multiplying--
``(A) the number of children counted under subsection (c);
and
``(B) 40 percent of the average per-pupil expenditure in
the State, except that the amount determined under this
subparagraph shall not be less than 32 percent, or more than 48
percent, of the average per-pupil expenditure in the United
States.
``(2) Calculation of grants.--
``(A) Allocations to local educational agencies.--The
Secretary shall calculate grants under this section on the
basis of the number of children counted under subsection (c)
for local educational agencies, unless the Secretary and the
Secretary of Commerce determine that some or all of those data
are unreliable or that their use would be otherwise
inappropriate, in which case--
``(i) the two Secretaries shall publicly disclose the
reasons for their determination in detail; and
``(ii) paragraph (3) shall apply.
``(B) Allocations to large and small local educational
agencies.--
``(i) For any fiscal year to which this paragraph
applies, the Secretary shall calculate grants under this
section for each local educational agency.
``(ii) The amount of a grant under this section for
each large local educational agency shall be the amount
determined under clause (i).
``(iii) For small local educational agencies, the State
educational agency may either--
``(I) distribute grants under this section in
amounts determined by the Secretary under clause (i);
or
``(II) use an alternative method approved by the
Secretary to distribute the portion of the State's
total grants under this section that is based on those
small agencies.
``(iv) An alternative method under clause (iii)(II)
shall be based on population data that the State
educational agency determines best reflect the current
distribution of children in poor families among the State's
small local educational agencies that meet the eligibility
criteria of subsection (b).
``(v) If a small local educational agency is
dissatisfied with the determination of its grant by the
State educational agency under clause (iii)(II), it may
appeal that determination to the Secretary, who shall
respond not later than 45 days after receipt of such
appeal.
``(vi) As used in this subparagraph--
``(I) the term `large local educational agency'
means a local educational agency serving an area with a
total population of 20,000 or more; and
``(II) the term `small local educational agency'
means a local educational agency serving an area with a
total population of less than 20,000.
``(3) Allocations to counties.--
``(A) Calculation.--For any fiscal year to which this
paragraph applies, the Secretary shall calculate grants under
this section on the basis of the number of children counted
under subsection (c) for counties, and State educational
agencies shall suballocate county amounts to local educational
agencies, in accordance with regulations issued by the
Secretary.
``(B) Direct allocations.--In any State in which a large
number of local educational agencies overlap county boundaries,
or for which the State believes it has data that would better
target funds than allocating them by county, the State
educational agency may apply to the Secretary for authority to
make the allocations under this subpart for a particular fiscal
year directly to local educational agencies without regard to
counties.
``(C) Allocations to local educational agencies.--If the
Secretary approves the State educational agency's application
under subparagraph (B), the State educational agency shall
provide the Secretary an assurance that such allocations shall
be made--
``(i) using precisely the same factors for determining
a grant as are used under this subpart; or
``(ii) using data that the State educational agency
submits to the Secretary for approval that more accurately
target poverty.
``(D) Appeal.--The State educational agency shall provide
the Secretary an assurance that it will establish a procedure
through which a local educational agency that is dissatisfied
with its determinations under subparagraph (B) may appeal
directly to the Secretary for a final determination.
``(4) Puerto rico.--
``(A) In general.--For each fiscal year, the grant that the
Commonwealth of Puerto Rico shall be eligible to receive under
this section shall be the amount determined by multiplying the
number of children counted under subsection (c) for the
Commonwealth of Puerto Rico by the product of--
``(i) subject to subparagraph (B), the percentage that
the average per-pupil expenditure in the Commonwealth of
Puerto Rico is of the lowest average per-pupil expenditure
of any of the 50 States; and
``(ii) 32 percent of the average per-pupil expenditure
in the United States.
``(B) Minimum percentage.--The percentage in subparagraph
(A)(i) shall not be less than--
``(i) for fiscal year 2002, 77.5 percent;
``(ii) for fiscal year 2003, 80.0 percent;
``(iii) for fiscal year 2004, 82.5 percent;
``(iv) for fiscal year 2005, 85.0 percent;
``(v) for fiscal year 2006, 92.5 percent; and
``(vi) for fiscal year 2007 and succeeding fiscal
years, 100.0 percent.
``(C) Limitation.--If the application of subparagraph (B)
would result in any of the 50 States or the District of
Columbia receiving less under this subpart than it received
under this subpart for the preceding fiscal year, the
percentage in subparagraph (A) shall be the greater of--
``(i) the percentage in subparagraph (A)(i);
``(ii) the percentage specified in subparagraph (B) for
the preceding fiscal year; or
``(iii) the percentage used for the preceding fiscal
year.
``(b) Minimum Number of Children To Qualify.--A local educational
agency is eligible for a basic grant under this section for any fiscal
year only if the number of children counted under subsection (c) for
that agency is both--
``(1) 10 or more; and
``(2) more than 2 percent of the total school-age population in
the agency's jurisdiction.
``(c) Children To Be Counted.--
``(1) Categories of children.--The number of children to be
counted for purposes of this section is the aggregate of--
``(A) the number of children aged 5 to 17, inclusive, in
the school district of the local educational agency from
families below the poverty level as determined under paragraph
(2);
``(B) the number of children (determined under paragraph
(4) for either the preceding year as described in that
paragraph, or for the second preceding year, as the Secretary
finds appropriate) aged 5 to 17, inclusive, in the school
district of such agency in institutions for neglected and
delinquent children (other than such institutions operated by
the United States), but not counted pursuant to subpart 1 of
part D for the purposes of a grant to a State agency, or being
supported in foster homes with public funds; and
``(C) the number of children aged 5 to 17, inclusive, in
the school district of such agency from families above the
poverty level as determined under paragraph (4).
``(2) Determination of number of children.--For the purposes of
this section, the Secretary shall determine the number of children
aged 5 to 17, inclusive, from families below the poverty level on
the basis of the most recent satisfactory data, described in
paragraph (3), available from the Department of Commerce. The
District of Columbia and the Commonwealth of Puerto Rico shall be
treated as individual local educational agencies. If a local
educational agency contains 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) Inappropriate or unreliable data.--If the Secretary
and the Secretary of Commerce determine that some or all of the
data referred to in subparagraph (A) are inappropriate or
unreliable, the Secretary and the Secretary of Commerce shall
publicly disclose their reasons.
``(C) Criteria of poverty.--In determining the families
that are below the poverty level, the Secretary shall use the
criteria of poverty used by the Bureau of the Census in
compiling the most recent decennial census, as the criteria
have been updated by increases in the Consumer Price Index for
All Urban Consumers, published by the Bureau of Labor
Statistics.
``(4) Other children to be counted.--
``(A) For the purpose of this section, the Secretary shall
determine the number of children aged 5 to 17, inclusive, from
families above the poverty level on the basis of the number of
such children from families receiving an annual income, in
excess of the current criteria of poverty, from payments under
a State program funded under part A of title IV of the Social
Security Act; and in making such determinations, the Secretary
shall use the criteria of poverty used by the Bureau of the
Census in compiling the most recent decennial census for a
family of 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) Except for the data on children living in
institutions for neglected or delinquent children, the
Secretary of Health and Human Services shall collect and
transmit the information required by this subparagraph to the
Secretary not later than January 1 of each year.
``(D) For the purpose of this section, the Secretary shall
consider all children who are in correctional institutions to
be living in institutions for delinquent children.
``(5) Estimate.--When requested by the Secretary, the Secretary
of Commerce shall make a special updated estimate of the number of
children of such ages who are from families below the poverty level
(as determined under paragraph (1)(A)) in each school district, and
the Secretary is authorized to pay (either in advance or by way of
reimbursement) the Secretary of Commerce the cost of making this
special estimate. The Secretary of Commerce shall give
consideration to any request of the chief executive of a State for
the collection of additional census information.
``(d) State Minimum.--Notwithstanding section 1122, the aggregate
amount allotted for all local educational agencies within a State may
not be less than the lesser of--
``(1) 0.25 percent of the total amount allocated to States
under this section for fiscal year 2001, plus 0.35 percent of the
total amount allocated to States under this section in excess of
the amount allocated for fiscal year 2001; or
``(2) the average of--
``(A) the amount calculated in paragraph (1), above; and
``(B) the number of children in such State counted under
subsection (c) in the fiscal year multiplied by 150 percent of
the national average per-pupil payment made with funds
available under this section for that year.
``SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Eligibility for and Amount of Grants.--
``(1) In general.--(A) Except as otherwise provided in this
paragraph, each local educational agency which is eligible for a
grant under section 1124 for any fiscal year is eligible for an
additional grant under this section for that fiscal year if the
number of children counted under section 1124(c) in the agency
exceeds either--
``(i) 6,500; or
``(ii) 15 percent of the total number of children aged 5
through 17 in the agency.
``(B) Notwithstanding section 1122, no State shall receive less
than the lesser of--
``(i) 0.25 percent of the total amount allocated to States
under this section for fiscal year 2001, plus 0.35 percent of
the total amount allocated to States under this section in
excess of the amount allocated for fiscal year 2001; or
``(ii) the average of--
``(I) the amount calculated under clause (i); and
``(II) the greater of--
``(aa) $340,000; or
``(bb) the number of children in such State counted
for purposes of this section in that fiscal year
multiplied by 150 percent of the national average per-
pupil payment made with funds available under this
section for that year.
``(2) Determination.--For each county or local educational
agency eligible to receive an additional grant under this section
for any fiscal year, the Secretary shall determine the product of--
``(A) the number of children counted under section 1124(c)
for that fiscal year; and
``(B) the amount in section 1124(a)(1)(B) for each State
except the Commonwealth of Puerto Rico, and the amount in
section 1124(a)(4) for the Commonwealth of Puerto Rico.
``(3) Amount.--The amount of the additional grant for which an
eligible local educational agency or county is eligible under this
section for any fiscal year shall be an amount which bears the same
ratio to the amount available to carry out this section for that
fiscal year as the product determined under paragraph (2) for such
local educational agency for that fiscal year bears to the sum of
such products for all local educational agencies in the United
States for that fiscal year.
``(4) Local allocations.--(A) Grant amounts under this section
shall be determined in accordance with section 1124(a)(2), (3), and
(4).
``(B) For any fiscal year for which the Secretary allocates
funds under this section on the basis of counties, a State may
reserve not more than 2 percent of its allocation under this
section to make grants to local educational agencies that meet the
criteria of paragraph (1)(A)(i) or (ii) and are in ineligible
counties that do not meet these criteria.
``(b) Small States.--In any State for which on the date of
enactment of the No Child Left Behind Act of 2001 the number of
children counted under section 1124(c) is less than 0.25 percent of the
number of those children counted for all States, the State educational
agency shall allocate funds under this section among the local
educational agencies in the State either--
``(1) in accordance with paragraphs (2) and (4) of subsection
(a); or
``(2) based on their respective concentrations and numbers of
children counted under section 1124(c), except that only those
local educational agencies with concentrations or numbers of
children counted under section 1124(c) that exceed the statewide
average percentage of such children or the statewide average number
of such children shall receive any funds on the basis of this
paragraph.
``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Eligibility of Local Educational Agencies.--
``(1) In general.--A local educational agency in a State is
eligible to receive a targeted grant under this section for any
fiscal year if--
``(A) the number of children in the local educational
agency counted under section 1124(c), before application of the
weighted child count described in subsection (c), is at least
10; and
``(B) if the number of children counted for grants under
section 1124(c), before application of the weighted child count
described in subsection (c), is at least 5 percent of the total
number of children aged 5 to 17 years, inclusive, in the school
district of the local educational agency.
``(2) Special rule.--For any fiscal year for which the
Secretary allocates funds under this section on the basis of
counties, funds made available as a result of applying this
subsection shall be reallocated by the State educational agency to
other eligible local educational agencies in the State in
proportion to the distribution of other funds under this section.
``(b) Grants for Local Educational Agencies, the District of
Columbia, and the Commonwealth of Puerto Rico.--
``(1) In general.--The amount of the grant that a local
educational agency in a State (other than the Commonwealth of
Puerto Rico) is eligible to receive under this section for any
fiscal year shall be the product of--
``(A) the weighted child count determined under subsection
(c); and
``(B) the amount determined under section 1124(a)(1)(B).
``(2) Puerto rico.--For each fiscal year, the amount of the
grant the Commonwealth of Puerto Rico is eligible to receive under
this section shall be equal to the number of children counted under
subsection (c) for the Commonwealth of Puerto Rico, multiplied by
the amount determined in section 1124(a)(4) for the Commonwealth of
Puerto Rico.
``(c) Weighted Child Count.--
``(1) Weights for allocations to counties.--
``(A) In general.--For each fiscal year for which the
Secretary uses county population data to calculate grants, the
weighted child count used to determine a county's allocation
under this section is the larger of the 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).
``(B) By percentage of children.--The amount referred to in
subparagraph (A) is determined by adding--
``(i) the number of children determined under section
1124(c) for that local educational agency who constitute
not more than 15.58 percent, inclusive, of the agency's
total population aged 5 to 17, inclusive, multiplied by
1.0;
``(ii) the number of such children who constitute more
than 15.58 percent, but not more than 22.11 percent, of
such population, multiplied by 1.75;
``(iii) the number of such children who constitute more
than 22.11 percent, but not more than 30.16 percent, of
such population, multiplied by 2.5;
``(iv) the number of such children who constitute more
than 30.16 percent, but not more than 38.24 percent, of
such population, multiplied by 3.25; and
``(v) the number of such children who constitute more
than 38.24 percent of such population, multiplied by 4.0.
``(C) By number of children.--The amount referred to in
subparagraph (A) is determined by adding--
``(i) the number of children determined under section
1124(c) who constitute not more than 691, inclusive, of the
agency's total population aged 5 to 17, inclusive,
multiplied by 1.0;
``(ii) the number of such children between 692 and
2,262, inclusive, in such population, multiplied by 1.5;
``(iii) the number of such children between 2,263 and
7,851, inclusive, in such population, multiplied by 2.0;
``(iv) the number of such children between 7,852 and
35,514, inclusive, in such population, multiplied by 2.5;
and
``(v) the number of such children in excess of 35,514
in such population, multiplied by 3.0.
``(D) Puerto rico.--Notwithstanding subparagraph (A), the
weighting factor for the Commonwealth of Puerto Rico under this
paragraph shall not be greater than the total number of
children counted under section 1124(c) multiplied by 1.82.
``(d) Calculation of Grant Amounts.--Grant amounts under this
section shall be calculated in the same manner as grant amounts are
calculated under section 1124(a)(2) and (3).
``(e) State Minimum.--Notwithstanding any other provision of this
section or section 1122, from the total amount available for any fiscal
year to carry out this section, each State shall be allotted at least
the lesser of--
``(1) 0.35 percent of the total amount available to carry out
this section; or
``(2) the average of--
``(A) 0.35 percent of the total amount available to carry
out this section; and
``(B) 150 percent of the national average grant under this
section per child described in section 1124(c), without
application of a weighting factor, multiplied by the State's
total number of children described in section 1124(c), without
application of a weighting factor.
``SEC. 1125AA. ADEQUACY OF FUNDING OF TARGETED GRANTS TO LOCAL
EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER FISCAL YEAR
2001.
``(a) Findings.--Congress makes the following findings:
``(1) The current Basic Grant Formula for the distribution of
funds under this part often does not provide funds for the
economically disadvantaged students for which such funds are
targeted.
``(2) Any school district in which more than 2 percent of the
students live below the poverty level qualifies for funding under
the Basic Grant Formula. As a result, 9 out of every 10 school
districts in the country receive some form of aid under the
Formula.
``(3) 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. 1125A. EDUCATION FINANCE INCENTIVE GRANT PROGRAM.
``(a) Grants.--From funds appropriated under subsection (f) the
Secretary is authorized to make grants to States, from allotments under
subsection (b), to carry out the programs and activities of this part.
``(b) Distribution Based Upon Fiscal Effort and Equity.--
``(1) In general.--
``(A) In general.--Except as provided in subparagraph (B),
funds appropriated pursuant to subsection (f) shall be allotted
to each State based upon the number of children counted under
section 1124(c) in such State multiplied by the product of--
``(i) the amount in section 1124(a)(1)(B) for all
States other than the Commonwealth of Puerto Rico, except
that the amount determined under that subparagraph shall
not be less that 34 percent or more than 46 percent of the
average per pupil expenditure in the United States, and the
amount in section 1124(a)(4) for the Commonwealth of Puerto
Rico, except that the amount in section 1124(a)(4)(A)(ii)
shall be 34 percent of the average per pupil expenditure in
the United States; multiplied by
``(ii) such State's effort factor described in
paragraph (2); multiplied by
``(iii) 1.30 minus such State's equity factor described
in paragraph (3).
``(B) State minimum.--Notwithstanding any other provision
of this section or section 1122, from the total amount
available for any fiscal year to carry out this section, each
State shall be allotted at least the lesser of--
``(i) 0.35 percent of total appropriations; or
``(ii) the average of--
``(I) 0.35 percent of the total amount available to
carry out this section; and
``(II) 150 percent of the national average grant
under this section per child described in section
1124(c), without application of a weighting factor,
multiplied by the State's total number of children
described in section 1124(c), without application of a
weighting factor.
``(2) Effort factor.--
``(A) In general.--Except as provided in subparagraph (B),
the effort factor for a State shall be determined in accordance
with the succeeding sentence, except that such factor shall not
be less than 0.95 nor greater than 1.05. The effort factor
determined under this sentence shall be a fraction the
numerator of which is the product of the 3-year average per-
pupil expenditure in the State multiplied by the 3-year average
per capita income in the United States and the denominator of
which is the product of the 3-year average per capita income in
such State multiplied by the 3-year average per-pupil
expenditure in the United States.
``(B) Commonwealth of puerto rico.--The effort factor for
the Commonwealth of Puerto Rico shall be equal to the lowest
effort factor calculated under subparagraph (A) for any State.
``(3) Equity factor.--
``(A) Determination.--
``(i) In general.--Except as provided in subparagraph
(B), the Secretary shall determine the equity factor under
this section for each State in accordance with clause (ii).
``(ii) Computation.--
``(I) In general.--For each State, the Secretary
shall compute a weighted coefficient of variation for
the per-pupil expenditures of local educational
agencies in accordance with subclauses (II), (III), and
(IV).
``(II) Variation.--In computing coefficients of
variation, the Secretary shall weigh the variation
between per-pupil expenditures in each local
educational agency and the average per-pupil
expenditures in the State according to the number of
pupils served by the local educational agency.
``(III) Number of pupils.--In determining the
number of pupils under this paragraph served by each
local educational agency and in each State, the
Secretary shall multiply the number of children counted
under section 1124(c) by a factor of 1.4.
``(IV) Enrollment requirement.--In computing
coefficients of variation, the Secretary shall include
only those local educational agencies with an
enrollment of more than 200 students.
``(B) Special rule.--The equity factor for a State that
meets the disparity standard described in section 222.162 of
title 34, Code of Federal Regulations (as such section was in
effect on the day preceding the date of enactment of the No
Child Left Behind Act of 2001) or a State with only 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.
``(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 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 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 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
``(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;
``(II) the number of such children between 692 and
2,262, inclusive, in such population, multiplied by
2.0;
``(III) the number of such children between 2,263
and 7,851, inclusive, in such population, multiplied by
3.0;
``(IV) the number of such children between 7,852
and 35,514, inclusive, in such population, multiplied
by 4.5; and
``(V) the number of such children in excess of
35,514 in such population, multiplied by 6.0.
``(e) Maintenance of Effort.--
``(1) In general.--Except as provided in paragraph (2), a State
is entitled to receive its full allotment of funds under this
section for any fiscal year if the Secretary finds that either the
combined fiscal effort per student or the aggregate expenditures
within the State with respect to the provision of free public
education for the fiscal year preceding the fiscal year for which
the determination is made was not less than 90 percent of such
combined fiscal effort or aggregate expenditures for the second
fiscal year preceding the fiscal year for which the determination
is made.
``(2) Reduction of funds.--The Secretary shall reduce the
amount of funds awarded to any State under this section in any
fiscal year in the exact proportion to which the State fails to
meet the requirements of paragraph (1) by falling below 90 percent
of both the fiscal effort per student and aggregate expenditures
(using the measure most favorable to the State), and no such lesser
amount shall be used for computing the effort required under
paragraph (1) for subsequent years.
``(3) Waivers.--The Secretary may waive, for 1 fiscal year
only, the requirements of this subsection if the Secretary
determines that such a waiver would be equitable due to exceptional
or uncontrollable circumstances such as a natural disaster or a
precipitous and unforeseen decline in the financial resources of
the State.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary
for fiscal year 2002 and for each of the 5 succeeding fiscal years.
``(g) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this section for
any fiscal year are insufficient to pay the full amounts that all
local educational agencies in States are eligible to receive under
this section for such year, the Secretary shall ratably reduce the
allocations to such local educational agencies, subject to
paragraphs (2) and (3).
``(2) Additional funds.--If additional funds become available
for making payments under this section for such fiscal year,
allocations that were reduced under paragraph (1) shall be
increased on the same basis as they were reduced.
``(3) Hold-harmless amounts.--For each fiscal year, if
sufficient funds are available, the amount made available to each
local educational agency under this section shall be
``(A) not less than 95 percent of the amount made available
for the preceding fiscal year if the number of children counted
for grants under section 1124 is not less than 30 percent of
the total number of children aged 5 to 17 years, inclusive, in
the local educational agency;
``(B) not less than 90 percent of the amount made available
for the preceding fiscal year if the percentage described in
subparagraph (A) is between 15 percent and 30 percent; and
``(C) not less than 85 percent of the amount made available
for the preceding fiscal year if the percentage described in
subparagraph (A) is below 15 percent.
``(4) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the fiscal
year under any program administered by the Secretary other than a
program authorized under this part.
``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.
``(a) Allocations for Neglected Children.--
``(1) In general.--If a State educational agency determines
that a local educational agency in the State is unable or unwilling
to provide for the special educational needs of children who are
living in institutions for neglected children as described in
section 1124(c)(1)(B), the State educational agency shall, if such
agency assumes responsibility for the special educational needs of
such children, receive the portion of such local educational
agency's allocation under sections 1124, 1124A, 1125, and 1125A
that is attributable to such children.
``(2) Special rule.--If the State educational agency does not
assume such responsibility, any other State or local public agency
that does assume such responsibility shall receive that portion of
the local educational agency's allocation.
``(b) Allocations Among Local Educational Agencies.--The State
educational agency may allocate the amounts of grants under sections
1124, 1124A, 1125, and 1125A among the affected local educational
agencies--
``(1) if 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. 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.
``(b) Waiver.--A State educational agency may, once every 3 years,
waive the percentage limitation in subsection (a) if--
``(1) the agency determines that the request of a local
educational agency is reasonable and necessary; or
``(2) supplemental appropriations for this subpart become
available.
``(c) Exclusion.--The percentage limitation under subsection (a)
shall not apply to any local educational agency that receives less than
$50,000 under this subpart for any fiscal year.
``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS
``Subpart 1--Reading First
``SEC. 1201. PURPOSES.
``The purposes of this subpart are as follows:
``(1) To provide assistance to State educational agencies and
local educational agencies in establishing reading programs for
students in kindergarten through grade 3 that are based on
scientifically based reading research, to ensure that every student
can read at grade level or above not later than the end of grade 3.
``(2) To provide assistance to State educational agencies and
local educational agencies in preparing teachers, including special
education teachers, through professional development and other
support, so the teachers can identify specific reading barriers
facing their students and so the teachers have the tools to
effectively help their students learn to read.
``(3) To provide assistance to State educational agencies and
local educational agencies in selecting or administering screening,
diagnostic, and classroom-based instructional reading assessments.
``(4) To provide assistance to State educational agencies and
local educational agencies in selecting or developing effective
instructional materials (including classroom-based materials to
assist teachers in implementing the essential components of reading
instruction), programs, learning systems, and strategies to
implement methods that have been proven to prevent or remediate
reading failure within a State.
``(5) To strengthen coordination among schools, early literacy
programs, and family literacy programs to improve reading
achievement for all children.
``SEC. 1202. FORMULA GRANTS TO STATE EDUCATIONAL AGENCIES.
``(a) In General.--
``(1) Authorization to make grants.--In the case of each State
educational agency that in accordance with section 1203 submits to
the Secretary an application for a 6-year period, the Secretary,
from amounts appropriated under section 1002(b)(1) and subject to
the application's approval, shall make a grant to the State
educational agency for the uses specified in subsections (c) and
(d). For each fiscal year, the funds provided under the grant shall
equal the allotment determined for the State educational agency
under subsection (b).
``(2) Duration of grants.--Subject to subsection (e)(3), a
grant under this section shall be awarded for a period of not more
than 6 years.
``(b) Determination of Amount of Allotments.--
``(1) Reservations from appropriations.--From the total amount
made available to carry out this subpart for a fiscal year, the
Secretary--
``(A) shall reserve 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 educational
agency agrees to expend at least 80 percent of the amount of the
funds provided under the grant for the purpose of making, in
accordance with subsection (c), competitive subgrants to eligible
local educational agencies.
``(5) Reallotment.--If a State educational agency described in
paragraph (2) does not apply for an allotment under this section
for any fiscal year, or if the State educational agency's
application is not approved, the Secretary shall reallot such
amount to the remaining State educational agencies in accordance
with paragraph (3).
``(6) Definition of state.--For purposes of this subsection,
the term `State' means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
``(c) Subgrants to Local Educational Agencies.--
``(1) Authorization to make subgrants.--In accordance with
paragraph (2), a State educational agency that receives a grant
under this section shall make competitive subgrants to eligible
local educational agencies.
``(2) Allocation.--
``(A) Minimum subgrant amount.--In making subgrants under
paragraph (1), a State educational agency shall allocate to
each eligible local educational agency that receives such a
subgrant, at a minimum, an amount that bears the same relation
to the funds made available under subsection (b)(4) as the
amount the eligible local educational agency received under
part A for the preceding fiscal year bears to the amount all
the local educational agencies in the State received under part
A for the preceding fiscal year.
``(B) Priority.--In making subgrants under paragraph (1), a
State educational agency shall give priority to eligible local
educational agencies in which at least--
``(i) 15 percent of the children served by the eligible
local educational agency are from families with incomes
below the poverty line; or
``(ii) 6,500 children served by the eligible local
educational agency are from families with incomes below the
poverty line.
``(3) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all eligible local
educational agencies in the State of the availability of
competitive subgrants under this subsection and of the requirements
for applying for the subgrants.
``(4) Local application.--To be eligible to receive a subgrant
under this subsection, an eligible local educational agency shall
submit an application to the State educational agency at such time,
in such manner, and containing such information as the State
educational agency may reasonably require.
``(5) State requirement.--In distributing subgrant funds to
eligible local educational agencies under this subsection, a State
educational agency shall--
``(A) provide funds in sufficient size and scope to enable
the eligible local educational agencies to improve reading
instruction; and
``(B) provide the funds in amounts related to the number or
percentage of students in kindergarten through grade 3 who are
reading below grade level.
``(6) Limitation to certain schools.--In distributing subgrant
funds under this subsection, an eligible local educational agency
shall provide funds only to schools that both--
``(A) are among the schools served by that eligible local
educational agency with the highest percentages or numbers of
students in kindergarten through grade 3 reading below grade
level, based on the most currently available data; and
``(B)(i) are identified for school improvement under
section 1116(b); or
``(ii) have the highest percentages or numbers of children
counted under section 1124(c).
``(7) Local uses of funds.--
``(A) Required uses.--Subject to paragraph (8), an eligible
local educational agency that receives a subgrant under this
subsection shall use the funds provided under the subgrant to
carry out the following activities:
``(i) Selecting and administering screening,
diagnostic, and classroom-based instructional reading
assessments.
``(ii) Selecting and implementing a learning system or
program of reading instruction based on scientifically
based reading research that--
``(I) includes the essential components of reading
instruction; and
``(II) provides such instruction to the children in
kindergarten through grade 3 in the schools served by
the eligible local educational agency, including
children who--
``(aa) may have reading difficulties;
``(bb) are at risk of being referred to special
education based on these difficulties;
``(cc) have been evaluated under section 614 of
the Individuals with Disabilities Education Act
but, in accordance with section 614(b)(5) of that
Act, have not been identified as being a child with
a disability (as defined in section 602 of that
Act);
``(dd) are being served under such Act
primarily due to being identified as being a child
with a specific learning disability (as defined in
section 602 of that Act) related to reading;
``(ee) are deficient in the essential
components of reading skills, as listed in
subparagraphs (A) through (E) of section 1208(3);
or
``(ff) are identified as having limited English
proficiency.
``(iii) Procuring and implementing instructional
materials, including education technology such as software
and other digital curricula, that are based on
scientifically based reading research.
``(iv) Providing professional development for teachers
of kindergarten through grade 3, and special education
teachers of kindergarten through grade 12, that--
``(I) will prepare these teachers in all of the
essential components of reading instruction;
``(II) shall include--
``(aa) information on instructional materials,
programs, strategies, and approaches based on
scientifically based reading research, including
early intervention, classroom reading materials,
and remedial programs and approaches; and
``(bb) instruction in the use of screening,
diagnostic, and classroom-based instructional
reading assessments and other procedures that
effectively identify students who may be at risk
for reading failure or who are having difficulty
reading;
``(III) shall be provided by eligible professional
development providers; and
``(IV) will assist teachers in becoming 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.
``(8) Local planning and administration.--An eligible local
educational agency that receives a subgrant under this subsection
may use not more than 3.5 percent of the funds provided under the
subgrant for planning and administration.
``(d) State Uses of Funds.--
``(1) In general.--A State educational agency that receives a
grant under this section may expend not more than a total of 20
percent of the grant funds to carry out the activities described in
paragraphs (3), (4), and (5).
``(2) Priority.--A State educational agency shall give priority
to carrying out the activities described in paragraphs (3), (4),
and (5) for schools described in subsection (c)(6).
``(3) Professional inservice and preservice development and
review.--A State educational agency may expend not more than 65
percent of the amount of the funds made available under paragraph
(1)--
``(A) to develop and implement a program of professional
development for teachers, including special education teachers,
of kindergarten through grade 3 that--
``(i) will prepare these teachers in all the essential
components of reading instruction;
``(ii) shall include--
``(I) information on instructional materials,
programs, strategies, and approaches based on
scientifically based reading research, including early
intervention and reading remediation materials,
programs, and approaches; and
``(II) instruction in the use of screening,
diagnostic, and classroom-based instructional reading
assessments and other scientifically based procedures
that effectively identify students who may be at risk
for reading failure or who are having difficulty
reading; and
``(iii) shall be provided by eligible professional
development providers;
``(B) to strengthen and enhance preservice courses for
students preparing, at all public institutions of higher
education in the State, to teach kindergarten through grade 3
by--
``(i) reviewing such courses to determine whether the
courses' content is consistent with the findings of the
most current scientifically based reading research,
including findings on the essential components of reading
instruction;
``(ii) following up such reviews with recommendations
to ensure that such institutions offer courses that meet
the highest standards; and
``(iii) preparing a report on the results of such
reviews, submitting the report to the reading and literacy
partnership for the State established under section
1203(d), and making the report available for public review
by means of the Internet; and
``(C) to make recommendations on how the State licensure
and certification standards in the area of reading might be
improved.
``(4) Technical assistance for local educational agencies and
schools.--A State educational agency may expend not more than 25
percent of the amount of the funds made available under paragraph
(1) for 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.
``(II) Specific identification of those schools and
local educational agencies that report the largest
gains in reading achievement.
``(III) The progress the State educational agency
and local educational agencies within the State are
making in reducing the number of students served under
this subpart in grades 1, 2, and 3 who are reading
below grade level, as demonstrated by such information
as teacher reports and school evaluations of mastery of
the essential components of reading instruction.
``(IV) Evidence on whether the State educational
agency and local educational agencies within the State
have significantly increased the number of students
reading at grade level or above, significantly
increased the percentages of students described in
section 1111(b)(2)(C)(v)(II) who are reading at grade
level or above, and successfully implemented this
subpart.
``(iii) Privacy protection.--Data in the report shall
be reported in a manner that protects the privacy of
individuals.
``(iv) Contract.--To the extent practicable, a State
educational agency shall enter into a contract with an
entity that conducts scientifically based reading research,
under which contract the entity will assist the State
educational agency in producing the reports required to be
submitted under this subparagraph.
``(e) Review.--
``(1) Progress report.--
``(A) Submission.--Not later than 60 days after the
termination of the third year of the grant period, each State
educational agency receiving a grant under this section shall
submit a progress report to the Secretary.
``(B) Information included.--The progress report shall
include information on the progress the State educational
agency and local educational agencies within the State are
making in reducing the number of students served under this
subpart in grades 1, 2, and 3 who are reading below grade level
(as demonstrated by such information as teacher reports and
school evaluations of mastery of the essential components of
reading instruction). The report shall also include evidence
from the State educational agency and local educational
agencies within the State that the State educational agency and
the local educational agencies have significantly increased the
number of students reading at grade level or above,
significantly increased the percentages of students described
in section 1111(b)(2)(C)(v)(II) who are reading at grade level
or above, and successfully implemented this subpart.
``(2) Peer review.--The progress report described in paragraph
(1) shall be reviewed by the peer review panel convened under
section 1203(c)(2).
``(3) Consequences of insufficient progress.--After submission
of the progress report described in paragraph (1), if the Secretary
determines that the State educational agency is not making
significant progress in meeting the purposes of this subpart, the
Secretary may withhold from the State educational agency, in whole
or in part, further payments under this section in accordance with
section 455 of the General Education Provisions Act or take such
other action authorized by law as the Secretary determines
necessary, including providing technical assistance upon request of
the State educational agency.
``(f) Funds not Used for State Level Activities.--Any portion of
funds described in subsection (d)(1) that a State educational agency
does not expend in accordance with subsection (d)(1) shall be expended
for the purpose of making subgrants in accordance with subsection (c).
``SEC. 1203. STATE FORMULA GRANT APPLICATIONS.
``(a) Applications.--
``(1) In general.--A State educational agency that desires to
receive a grant under section 1202 shall submit an application to
the Secretary at such time and in such form as the Secretary may
require. The application shall contain the information described in
subsection (b).
``(2) Special application provisions.--For those State
educational agencies that have received a grant under part C of
title II (as such part was in effect on the day before the date of
enactment of the No Child Left Behind Act of 2001), the Secretary
shall establish a modified set of requirements for an application
under this section that takes into account the information already
submitted and approved under that program and minimizes the
duplication of effort on the part of such State educational
agencies.
``(b) Contents.--An application under this section shall contain
the following:
``(1) An assurance that the Governor of the State, in
consultation with the State educational agency, has established a
reading and literacy partnership described in subsection (d), and a
description of how such partnership--
``(A) coordinated the development of the application; and
``(B) will assist in the oversight and evaluation of the
State educational agency's activities under this subpart.
``(2) A description, if applicable, of the State's strategy to
expand, continue, or modify activities authorized under part C of
title II (as such part was in effect on the day before the date of
enactment of the No Child Left Behind Act of 2001).
``(3) An assurance that the State educational agency, and any
local educational agencies receiving a subgrant from that State
educational agency under section 1202, will, if requested,
participate in the external evaluation under section 1205.
``(4) A State educational agency plan containing a description
of the following:
``(A) How the State educational agency will assist local
educational agencies in identifying screening, diagnostic, and
classroom-based instructional reading assessments.
``(B) How the State educational agency will assist local
educational agencies in identifying instructional materials,
programs, strategies, and approaches, based on scientifically
based reading research, including early intervention and
reading remediation materials, programs, and approaches.
``(C) How the State educational agency will ensure that
professional development activities related to reading
instruction and provided under section 1202 are--
``(i) coordinated with other Federal, State, and local
level funds, and used effectively to improve instructional
practices for reading; and
``(ii) based on scientifically based reading research.
``(D) How the activities assisted under section 1202 will
address the needs of teachers and other instructional staff in
implementing the essential components of reading instruction.
``(E) How subgrants made by the State educational agency
under section 1202 will meet the requirements of section 1202,
including how the State educational agency will ensure that
eligible local educational agencies receiving subgrants under
section 1202 will use practices based on scientifically based
reading research.
``(F) How the State educational agency will, to the extent
practicable, make grants to eligible local educational agencies
in both rural and urban areas.
``(G) How the State educational agency will build on, and
promote coordination among literacy programs in the State
(including federally funded programs such as programs under the
Adult Education and Family Literacy Act, the Individuals with
Disabilities Education Act, and subpart 2), to increase the
effectiveness of the programs in improving reading for adults
and children and to avoid duplication of the efforts of the
program.
``(H) How the State educational agency will assess and
evaluate, on a regular basis, eligible local educational agency
activities assisted under section 1202, with respect to whether
the activities have been effective in achieving the purposes of
section 1202.
``(I) Any other information that the Secretary may
reasonably require.
``(c) Approval of Applications.--
``(1) In general.--The Secretary shall approve an application
of a State educational agency under this section only if such
application meets the requirements of this section.
``(2) Peer review.--
``(A) In general.--The Secretary, in consultation with the
National Institute for Literacy, shall convene a panel to
evaluate applications under this section. At a minimum, the
panel shall include--
``(i) 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--
``(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;
``(C) a private nonprofit or for-profit eligible
professional development provider providing instruction based
on scientifically based reading research;
``(D) an adult education provider;
``(E) a volunteer organization that is involved in reading
programs; or
``(F) a school library or a public library that offers
reading or literacy programs for children or families.
``(4) Preexisting partnership.--If, before the date of
enactment of the No Child Left Behind Act of 2001, a State
educational agency established a consortium, partnership, or any
other similar body that was considered a reading and literacy
partnership for purposes of part C of title II of this Act (as such
part was in effect on the day before the date of enactment of No
Child Left Behind Act of 2001), that consortium, partnership, or
body may be considered a reading and literacy partnership for
purposes of this subsection consistent with the provisions of this
subpart.
``SEC. 1204. TARGETED ASSISTANCE GRANTS.
``(a) Eligibility Criteria for Awarding Targeted Assistance Grants
to States.--Beginning with fiscal year 2004, from funds appropriated
under section 1202(b)(1)(E), the Secretary shall make grants, on a
competitive basis, to those State educational agencies that--
``(1) for each of 2 consecutive years, demonstrate that an
increasing percentage of third graders in each of the groups
described in section 1111(b)(2)(C)(v)(II) in the schools served by
the local educational agencies receiving funds under section 1202
are reaching the proficient level in reading; and
``(2) for each of the same such consecutive 2 years,
demonstrate that schools receiving funds under section 1202 are
improving the reading skills of students in grades 1, 2, and 3
based on screening, diagnostic, and classroom-based instructional
reading assessments.
``(b) Continuation of Performance Awards.--For any State
educational agency that receives a competitive grant under this
section, the Secretary shall make an award for each of the succeeding
years that the State educational agency demonstrates it is continuing
to meet the criteria described in subsection (a).
``(c) Distribution of Targeted Assistance Grants.--
``(1) In general.--The Secretary shall make a grant to each
State educational agency with an application approved under this
section in an amount that bears the same relation to the amount
made available to carry out this section for a fiscal year as the
number of children counted under section 1124(c) for the State
bears to the number of such children so counted for all States with
applications approved for that year.
``(2) Peer review.--The peer review panel convened under
section 1203(c)(2) shall review the applications submitted under
this subsection. The panel shall recommend such applications to the
Secretary for funding or for disapproval.
``(3) Application contents.--A State educational agency that
desires to receive a grant under this section shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may require. Each
such application shall include the following:
``(A) Evidence that the State educational agency has
carried out its obligations under section 1203.
``(B) Evidence that the State educational agency has met
the criteria described in subsection (a).
``(C) The amount of funds requested by the State
educational agency and a description of the criteria the State
educational agency intends to use in distributing subgrants to
eligible local educational agencies under this section to
continue or expand activities under subsection (d)(5).
``(D) Evidence that the State educational agency has
increased significantly the percentage of students reading at
grade level or above.
``(E) Any additional evidence that demonstrates success in
the implementation of this section.
``(d) Subgrants to Eligible Local Educational Agencies.--
``(1) In general.--The Secretary may make a grant to a State
educational agency under this section only if the State educational
agency agrees to expend 100 percent of the amount of the funds
provided under the grant for the purpose of making competitive
subgrants in accordance with this subsection to eligible local
educational agencies.
``(2) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all local educational
agencies in the State of the availability of competitive subgrants
under this subsection and of the requirements for applying for the
subgrants.
``(3) Application.--To be eligible to receive a subgrant under
this subsection, an eligible local educational agency shall submit
an application to the State educational agency at such time, in
such manner, and containing such information as the State
educational agency may reasonably require.
``(4) Distribution.--
``(A) In general.--A State educational agency shall
distribute subgrants under this section through a competitive
process based on relative need of eligible local educational
agencies and the evidence described in this paragraph.
``(B) Evidence used in all years.--For all fiscal years, a
State educational agency shall distribute subgrants under this
section based on evidence that an eligible local educational
agency--
``(i) satisfies the requirements of section 1202(c)(4);
``(ii) will carry out its obligations under this
subpart;
``(iii) will work with other local educational agencies
in the State that have not received a subgrant under this
subsection to assist such nonreceiving agencies in
increasing the reading achievement of students; and
``(iv) is meeting the criteria described in subsection
(a).
``(5) Local uses of funds.--An eligible local educational
agency that receives a subgrant under this subsection--
``(A) shall use the funds provided under the subgrant to
carry out the activities described in section 1202(c)(7)(A);
and
``(B) may use such funds to carry out the activities
described in section 1202(c)(7)(B).
``SEC. 1205. EXTERNAL EVALUATION.
``(a) In General.--From funds reserved under section 1202(b)(1)(C),
the Secretary shall contract with an independent organization outside
of the Department for a 5-year, rigorous, scientifically valid,
quantitative evaluation of this subpart.
``(b) Process.--The evaluation under subsection (a) shall be
conducted by an organization that is capable of designing and carrying
out an independent evaluation that identifies the effects of specific
activities carried out by State educational agencies and local
educational agencies under this subpart on improving reading
instruction. Such evaluation shall take into account factors
influencing student performance that are not controlled by teachers or
education administrators.
``(c) Analysis.--The evaluation under subsection (a) shall include
the following:
``(1) An analysis of the relationship between each of the
essential components of reading instruction and overall reading
proficiency.
``(2) An analysis of whether assessment tools used by State
educational agencies and local educational agencies measure the
essential components of reading.
``(3) An analysis of how State reading standards correlate with
the essential components of reading instruction.
``(4) An analysis of whether the receipt of a targeted
assistance grant under section 1204 results in an increase in the
number of children who read proficiently.
``(5) A measurement of the extent to which specific
instructional materials improve reading proficiency.
``(6) A measurement of the extent to which specific screening,
diagnostic, and classroom-based instructional reading assessments
assist teachers in identifying specific reading deficiencies.
``(7) A measurement of the extent to which professional
development programs implemented by State educational agencies
using funds received under this subpart improve reading
instruction.
``(8) A measurement of how well students preparing to enter the
teaching profession are prepared to teach the essential components
of reading instruction.
``(9) An analysis of changes in students' interest in reading
and time spent reading outside of school.
``(10) Any other analysis or measurement pertinent to this
subpart that is determined to be appropriate by the Secretary.
``(d) Program Improvement.--The findings of the evaluation
conducted under this section shall be provided to State educational
agencies and local educational agencies on a periodic basis for use in
program improvement.
``SEC. 1206. NATIONAL ACTIVITIES.
``From funds reserved under section 1202(b)(1)(C), the Secretary--
``(1) may provide technical assistance in achieving the
purposes of this subpart to State educational agencies, local
educational agencies, and schools requesting such assistance;
``(2) shall, at a minimum, evaluate the impact of services
provided to children under this subpart with respect to their
referral to, and eligibility for, special education services under
the Individuals with Disabilities Education Act (based on their
difficulties learning to read); and
``(3) shall carry out the external evaluation as described in
section 1205.
``SEC. 1207. INFORMATION DISSEMINATION.
``(a) In General.--From funds reserved under section 1202(b)(1)(D),
the National Institute for Literacy, in collaboration with the
Secretary of Education, the Secretary of Health and Human Services, and
the Director of the National Institute for Child Health and Human
Development shall--
``(1) disseminate information on scientifically based reading
research pertaining to children, youth, and adults;
``(2) identify and disseminate information about schools, local
educational agencies, and State educational agencies that have
effectively developed and implemented classroom reading programs
that meet the requirements of this subpart, including those State
educational agencies, local educational agencies, and schools that
have been identified as effective through the evaluation and peer
review provisions of this subpart; and
``(3) support the continued identification and dissemination of
information on reading programs that contain the essential
components of reading instruction as supported by scientifically
based reading research, that can lead to improved reading outcomes
for children, youth, and adults.
``(b) Dissemination and Coordination.--At a minimum, the National
Institute for Literacy shall disseminate the information described in
subsection (a) to--
``(1) recipients of Federal financial assistance under this
title, title III, the Head Start Act, the Individuals with
Disabilities Education Act, and the Adult Education and Family
Literacy Act; and
``(2) each Bureau funded school (as defined in section 1141 of
the Education Amendments of 1978).
``(c) Use of Existing Networks.--In carrying out this section, the
National Institute for Literacy shall, to the extent practicable, use
existing information and dissemination networks developed and
maintained through other public and private entities including through
the Department and the National Center for Family Literacy.
``(d) National Institute for Literacy.--For purposes of funds
reserved under section 1202(b)(1)(D) to carry out this section, the
National Institute for Literacy shall administer such funds in
accordance with section 242(b) of Public Law 105-220 (relating to the
establishment and administration of the National Institute for
Literacy).
``SEC. 1208. DEFINITIONS.
``In this subpart:
``(1) Eligible local educational agency.--The term `eligible
local educational agency' means a local educational agency that--
``(A) is among the local educational agencies in the State
with the highest numbers or percentages of students in
kindergarten through grade 3 reading below grade level, based
on the most currently available data; and
``(B) has--
``(i) jurisdiction over a geographic area that includes
an area designated as an empowerment zone, or an enterprise
community, under part I of subchapter U of chapter 1 of the
Internal Revenue Code of 1986;
``(ii) jurisdiction over a significant number or
percentage of schools that are identified for school
improvement under section 1116(b); or
``(iii) the highest numbers or percentages of children
who are counted under section 1124(c), in comparison to
other local educational agencies in the State.
``(2) Eligible professional development provider.--The term
`eligible professional development provider' means a provider of
professional development in reading instruction to teachers,
including special education teachers, that is based on
scientifically based reading research.
``(3) Essential components of reading instruction.--The term
`essential components of reading instruction' means explicit and
systematic instruction in--
``(A) phonemic awareness;
``(B) phonics;
``(C) vocabulary development;
``(D) reading fluency, including oral reading skills; and
``(E) reading comprehension strategies.
``(4) Instructional staff.--The term `instructional staff'--
``(A) means individuals who have responsibility for
teaching children to read; and
``(B) includes principals, teachers, supervisors of
instruction, librarians, library school media specialists,
teachers of academic subjects other than reading, and other
individuals who have responsibility for assisting children to
learn to read.
``(5) Reading.--The term `reading' means a complex system of
deriving meaning from print that requires all of the following:
``(A) The skills and knowledge to understand how phonemes,
or speech sounds, are connected to print.
``(B) The ability to decode unfamiliar words.
``(C) The ability to read fluently.
``(D) Sufficient background information and vocabulary to
foster reading comprehension.
``(E) The development of appropriate active strategies to
construct meaning from print.
``(F) The development and maintenance of a motivation to
read.
``(6) Scientifically based reading research.--The term
`scientifically based reading research' means research that--
``(A) applies rigorous, systematic, and objective
procedures to obtain valid knowledge relevant to reading
development, reading instruction, and reading difficulties; and
``(B) includes research that--
``(i) employs systematic, empirical methods that draw
on observation or experiment;
``(ii) involves rigorous data analyses that are
adequate to test the stated hypotheses and justify the
general conclusions drawn;
``(iii) relies on measurements or observational methods
that provide valid data across evaluators and observers and
across multiple measurements and observations; and
``(iv) has been accepted by a peer-reviewed journal or
approved by a panel of independent experts through a
comparably rigorous, objective, and scientific review.
``(7) Screening, diagnostic, and classroom-based instructional
reading assessments.--
``(A) In general.--The term `screening, diagnostic, and
classroom-based instructional reading assessments' means--
``(i) screening reading assessments;
``(ii) diagnostic reading assessments; and
``(iii) classroom-based instructional reading
assessments.
``(B) Screening reading assessment.--The term `screening
reading assessment' means an assessment that is--
``(i) valid, reliable, and based on scientifically
based reading research; and
``(ii) a brief procedure designed as a first step in
identifying children who may be at high risk for delayed
development or academic failure and in need of further
diagnosis of their need for special services or additional
reading instruction.
``(C) Diagnostic reading assessment.--The term `diagnostic
reading assessment' means an assessment that is--
``(i) valid, reliable, and based on scientifically
based reading research; and
``(ii) used for the purpose of--
``(I) identifying a child's specific areas of
strengths and weaknesses so that the child has learned
to read by the end of grade 3;
``(II) determining any difficulties that a child
may have in learning to read and the potential cause of
such difficulties; and
``(III) helping to determine possible reading
intervention strategies and related special needs.
``(D) Classroom-based instructional reading assessment.--
The term `classroom-based instructional reading assessment'
means an assessment that--
``(i) evaluates children's learning based on systematic
observations by teachers of children performing academic
tasks that are part of their daily classroom experience;
and
``(ii) is used to improve instruction in reading,
including classroom instruction.
``Subpart 2--Early Reading First
``SEC. 1221. PURPOSES; DEFINITIONS.
``(a) Purposes.--The purposes of this subpart are as follows:
``(1) To support local efforts to enhance the early language,
literacy, and prereading development of preschool age children,
particularly those from low-income families, through strategies and
professional development that are based on scientifically based
reading research.
``(2) To provide preschool age children with cognitive learning
opportunities in high-quality language and literature-rich
environments, so that the children can attain the fundamental
knowledge and skills necessary for optimal reading development in
kindergarten and beyond.
``(3) To demonstrate language and literacy activities based on
scientifically based reading research that supports the age-
appropriate development of--
``(A) recognition, leading to automatic recognition, of
letters of the alphabet;
``(B) knowledge of letter sounds, the blending of sounds,
and the use of increasingly complex vocabulary;
``(C) an understanding that written language is composed of
phonemes and letters each representing 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.
``SEC. 1222. LOCAL EARLY READING FIRST GRANTS.
``(a) Program Authorized.--From amounts appropriated under section
1002(b)(2), the Secretary shall award grants, on a competitive basis,
for periods of not more than 6 years, to eligible applicants to enable
the eligible applicants to carry out the authorized activities
described in subsection (d).
``(b) Applications.--An eligible applicant that desires to receive
a grant under this section shall submit an application to the
Secretary, which shall include a description of--
``(1) the programs to be served by the proposed project,
including demographic and socioeconomic information on the
preschool age children enrolled in the programs;
``(2) how the proposed project will enhance the school
readiness of preschool age children in high-quality oral language
and literature-rich environments;
``(3) how the proposed project will prepare and provide ongoing
assistance to staff in the programs, through professional
development and other support, to provide high-quality language,
literacy, and prereading activities using scientifically based
reading research, for preschool age children;
``(4) how the proposed project will provide services and use
instructional materials that are based on scientifically based
reading research on early language acquisition, prereading
activities, and the development of spoken vocabulary skills;
``(5) how the proposed project will help staff in the programs
to meet more effectively the diverse needs of preschool age
children in the community, including such children with limited
English proficiency, disabilities, or other special needs;
``(6) how the proposed project will integrate such
instructional materials and literacy activities with existing
preschool programs and family literacy services;
``(7) how the proposed project will help children, particularly
children experiencing difficulty with spoken language, prereading,
and early reading skills, to make the transition from preschool to
formal classroom instruction in school;
``(8) if the eligible applicant has received a subgrant under
subpart 1, how the activities conducted under this subpart will be
coordinated with the eligible applicant's activities under subpart
1 at the kindergarten through grade 3 level;
``(9) how the proposed project will evaluate the success of the
activities supported under this subpart in enhancing the early
language, literacy, and prereading development of preschool age
children served by the project; and
``(10) such other information as the Secretary may require.
``(c) Approval of Local Applications.--The Secretary shall select
applicants for funding under this subpart based on the quality of the
applications and the recommendations of a peer review panel convened
under section 1203(c)(2), that includes, at a minimum, 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:
``(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. 1223. FEDERAL ADMINISTRATION.
``The Secretary shall consult with the Secretary of Health and
Human Services to coordinate the activities under this subpart with
preschool age programs administered by the Department of Health and
Human Services.
``SEC. 1224. INFORMATION DISSEMINATION.
``From the funds the National Institute for Literacy receives under
section 1202(b)(1)(D), the National Institute for Literacy, in
consultation with the Secretary, shall disseminate information
regarding projects assisted under this subpart that have proven
effective.
``SEC. 1225. REPORTING REQUIREMENTS.
``Each eligible applicant receiving a grant under this subpart
shall report annually to the Secretary regarding the eligible
applicant's progress in addressing the purposes of this subpart. Such
report shall include, at a minimum, a description of--
``(1) the research-based instruction, materials, and activities
being used in the programs funded under the grant;
``(2) the types of programs funded under the grant and the ages
of children served by such programs;
``(3) the qualifications of the program staff who provide early
literacy instruction under such programs and the type of ongoing
professional development provided to such staff; and
``(4) the results of the evaluation described in section
1222(b)(9).
``SEC. 1226. EVALUATION.
``(a) In General.--From the total amount made available under
section 1002(b)(2) for the period beginning October 1, 2002, and ending
September 30, 2006, the Secretary shall reserve not more than
$3,000,000 to conduct an independent evaluation of the effectiveness of
this subpart.
``(b) Reports.--
``(1) Interim report.--Not later than October 1, 2004, the
Secretary shall submit an interim report to the Committee on
Education and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the Senate.
``(2) Final report.--Not later than September 30, 2006, the
Secretary shall submit a final report to the committees described
in paragraph (1).
``(c) Contents.--The reports submitted under subsection (b) shall
include information on the following:
``(1) How the grant recipients under this subpart are improving
the prereading skills of preschool children.
``(2) The effectiveness of the professional development program
assisted under this subpart.
``(3) How early childhood teachers are being prepared with
scientifically based reading research on early reading development.
``(4) What activities and instructional practices are most
effective.
``(5) How prereading instructional materials and literacy
activities based on scientifically based reading research are being
integrated into preschools, child care agencies and programs,
programs carried out under the Head Start Act, and family literacy
programs.
``(6) Any recommendations on strengthening or modifying this
subpart.
``Subpart 3--William F. Goodling Even Start Family Literacy Programs
``SEC. 1231. STATEMENT OF PURPOSE.
``It is the purpose of this subpart to help break the cycle of
poverty and illiteracy by--
``(1) improving the educational opportunities of the Nation's
low-income families by integrating early childhood education, adult
literacy or adult basic education, and parenting education into a
unified family literacy program, to be referred to as `Even Start';
and
``(2) establishing a program that shall--
``(A) be implemented through cooperative projects that
build on high-quality existing community resources to create a
new range of services;
``(B) promote the academic achievement of children and
adults;
``(C) assist children and adults from low-income families
to achieve to challenging State content standards and
challenging State student achievement standards; and
``(D) use instructional programs based on scientifically
based reading research and addressing the prevention of reading
difficulties for children and adults, to the extent such
research is available.
``SEC. 1232. PROGRAM AUTHORIZED.
``(a) Reservation for Migrant Programs, Outlying Areas, and Indian
Tribes.--
``(1) In general.--For each fiscal year, the Secretary shall
reserve 5 percent of the amount appropriated under section
1002(b)(3) (or, if such appropriated amount exceeds $200,000,000, 6
percent of such amount) for programs, under such terms and
conditions as the Secretary shall establish, that are consistent
with the purpose of this subpart, and according to their relative
needs, for--
``(A) children of migratory workers;
``(B) the outlying areas; and
``(C) Indian tribes and tribal organizations.
``(2) Special rule.--After December 21, 2000, the Secretary
shall award a grant, on a competitive basis, of sufficient size and
for a period of sufficient duration to demonstrate the
effectiveness of a family literacy program in a prison that houses
women and their preschool age children and that has the capability
of developing a program of high quality.
``(3) Coordination of programs for american indians.--The
Secretary shall ensure that programs under paragraph (1)(C) are
coordinated with family literacy programs operated by the Bureau of
Indian Affairs in order to avoid duplication and to encourage the
dissemination of information on high-quality family literacy
programs serving American Indians.
``(b) Reservation for Federal Activities.--
``(1) Evaluation, technical assistance, program improvement,
and replication activities.--Subject to paragraph (2), from amounts
appropriated under section 1002(b)(3), the Secretary may reserve
not more than 3 percent of such amounts for purposes of--
``(A) carrying out the evaluation required by section 1239;
and
``(B) providing, through grants or contracts with eligible
organizations, technical assistance, program improvement, and
replication activities.
``(2) Research.--In any fiscal year, if the amount appropriated
under section 1002(b)(3) for such year--
``(A) is equal to or less than the amount appropriated for
the preceding fiscal year, the Secretary may reserve from such
amount only the amount necessary to continue multi-year
activities carried out pursuant to section 1241(b) that began
during or prior to the fiscal year preceding the fiscal year
for which the determination is made; or
``(B) exceeds the amount appropriated for the preceding
fiscal year, then the Secretary shall reserve from such excess
amount $2,000,000 or 50 percent, whichever is less, to carry
out section 1241(b).
``(c) Reservation for Grants.--
``(1) Grants authorized.--
``(A) In general.--For any fiscal year for which at least
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 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. 1233. STATE EDUCATIONAL AGENCY PROGRAMS.
``(a) State Educational Agency Level Activities.--Each State
educational agency that receives a grant under section 1232(d)(1) may
use not more than a total of 6 percent of the grant funds for the costs
of--
``(1) administration, which amount shall not exceed half of the
total;
``(2) providing, through 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. 1234. USES OF FUNDS.
``(a) In General.--In carrying out an Even Start program under this
subpart, a recipient of funds under this subpart shall use those funds
to pay the Federal share of the cost of providing intensive family
literacy services that involve parents and children, from birth through
age 7, in a cooperative effort to help parents become full partners in
the education of their children and to assist children in reaching
their full potential as learners.
``(b) Federal Share Limitation.--
``(1) In general.--
``(A) Federal share.--Except as provided in paragraph (2),
the Federal share under this subpart may not exceed--
``(i) 90 percent of the total cost of the program in
the first year that the program receives assistance under
this subpart or its predecessor authority;
``(ii) 80 percent in the second year;
``(iii) 70 percent in the third year;
``(iv) 60 percent in the fourth year;
``(v) 50 percent in the fifth, sixth, seventh, and
eighth such years; and
``(vi) 35 percent in any subsequent year.
``(B) Remaining cost.--The remaining cost of a program
assisted under this subpart may be provided in cash or in kind,
fairly evaluated, and may be obtained from any source,
including other Federal funds under this Act.
``(2) Waiver.--The State educational agency may waive, in whole
or in part, the Federal share described in paragraph (1) for an
eligible entity if the entity--
``(A) demonstrates that it otherwise would not be able to
participate in the program assisted under this subpart; and
``(B) negotiates an agreement with the State educational
agency with respect to the amount of the remaining cost to
which the waiver will be applicable.
``(3) Prohibition.--Federal funds provided under this subpart
may not be used for the indirect costs of a program assisted under
this subpart, except that the Secretary may waive this paragraph if
an eligible recipient of funds reserved under section 1232(a)(1)(C)
demonstrates to the Secretary's satisfaction that the recipient
otherwise would not be able to participate in the program assisted
under this subpart.
``(c) Use of Funds for Family Literacy Services.--
``(1) In general.--A State educational agency may use a portion
of funds reserved under section 1233(a), to assist eligible
entities receiving a subgrant under section 1233(b) in improving
the quality of family literacy services provided under Even Start
programs under this subpart, except that in no case may a State
educational agency's use of funds for this purpose for a fiscal
year result in a decrease from the level of activities and services
provided to program participants in the preceding year.
``(2) Priority.--In carrying out paragraph (1), a State
educational agency shall give priority to programs that were of low
quality, as evaluated based on the indicators of program quality
developed by the State educational agency under section 1240.
``(3) Technical assistance to help local programs raise
additional funds.--In carrying out paragraph (1), a State
educational agency may use the funds referred to in that paragraph
to provide technical assistance to help local programs of
demonstrated effectiveness to access and leverage additional funds
for the purpose of expanding services and reducing waiting lists,
including requesting and applying for non-Federal resources.
``(4) Technical assistance and training.--Assistance under
paragraph (1) shall be in the form of technical assistance and
training, provided by a State educational agency through a grant,
contract, or cooperative agreement with an entity that has
experience in offering high-quality training and technical
assistance to family literacy providers.
``SEC. 1235. PROGRAM ELEMENTS.
``Each program assisted under this subpart shall--
``(1) include the identification and recruitment of families
most in need of services provided under this subpart, as indicated
by a low level of income, a low level of adult literacy or English
language proficiency of the eligible parent or parents, and other
need-related indicators;
``(2) include screening and preparation of parents, including
teenage parents, and children to enable those parents and children
to participate fully in the activities and services provided under
this subpart, including testing, referral to necessary counselling,
other developmental and support services, and related services;
``(3) be designed to accommodate the participants' work
schedule and other responsibilities, including the provision of
support services, when those services are unavailable from other
sources, necessary for participation in the activities assisted
under this subpart, such as--
``(A) scheduling and locating of services to allow joint
participation by parents and children;
``(B) child care for the period that parents are involved
in the program provided under this subpart; and
``(C) transportation for the purpose of enabling parents
and their children to participate in programs authorized by
this subpart;
``(4) include high-quality, intensive instructional programs
that promote adult literacy and empower parents to support the
educational growth of their children, developmentally appropriate
early childhood educational services, and preparation of children
for success in regular school programs;
``(5) with respect to the qualifications of staff the cost of
whose salaries are paid, in whole or in part, with Federal funds
provided under this subpart, ensure that--
``(A) not later than December 21, 2004--
``(i) a majority of the individuals providing academic
instruction--
``(I) shall have obtained an associate's,
bachelor's, or graduate degree in a field related to
early childhood education, elementary school or
secondary school education, or adult education; and
``(II) if applicable, shall meet qualifications
established by the State for early childhood education,
elementary school or secondary school education, or
adult education provided as part of an Even Start
program or another family literacy program;
``(ii) the individual responsible for administration of
family literacy services under this subpart has received
training in the operation of a family literacy program; and
``(iii) paraprofessionals who provide support for
academic instruction have a secondary school diploma or its
recognized equivalent; and
``(B) all new personnel hired to provide academic
instruction--
``(i) have obtained an associate's, bachelor's, or
graduate degree in a field related to early childhood
education, elementary school or secondary school education,
or adult education; and
``(ii) if applicable, meet qualifications established
by the State for early childhood education, elementary
school or secondary school education, or adult education
provided as part of an Even Start program or another family
literacy program;
``(6) include special training of staff, including child-care
staff, to develop the skills necessary to work with parents and
young children in the full range of instructional services offered
through this subpart;
``(7) provide and monitor integrated instructional services to
participating parents and children through home-based programs;
``(8) operate on a year-round basis, including the provision of
some program services, including instructional and enrichment
services, during the summer months;
``(9) be coordinated with--
``(A) other programs assisted under this Act;
``(B) any relevant programs under the Adult Education and
Family Literacy Act, the Individuals with Disabilities
Education Act, and title I of the Workforce Investment Act of
1998; and
``(C) the Head Start program, volunteer literacy programs,
and other relevant programs;
``(10) use instructional programs based on scientifically based
reading research for children and adults, to the extent that
research is available;
``(11) encourage participating families to attend regularly and
to remain in the program a sufficient time to meet their program
goals;
``(12) include reading-readiness activities for preschool
children based on scientifically based reading research, to the
extent available, to ensure that children enter school ready to
learn to read;
``(13) if applicable, promote the continuity of family literacy
to ensure that individuals retain and improve their educational
outcomes;
``(14) ensure that the programs will serve those families most
in need of the activities and services provided by this subpart;
and
``(15) provide for an independent evaluation of the program, to
be used for program improvement.
``SEC. 1236. ELIGIBLE PARTICIPANTS.
``(a) In General.--Except as provided in subsection (b), eligible
participants in an Even Start program are--
``(1) a parent or parents--
``(A) who are eligible for participation in adult education
and literacy activities under the Adult Education and Family
Literacy Act; or
``(B) who are within the State's compulsory school
attendance age range, so long as a local educational agency
provides (or ensures the availability of) the basic education
component required under this subpart, or who are attending
secondary school; and
``(2) the child or children, from birth through age 7, of any
individual described in paragraph (1).
``(b) Eligibility for Certain Other Participants.--
``(1) In general.--Family members of eligible participants
described in subsection (a) may participate in activities and
services provided under this subpart, when appropriate to serve the
purpose of this subpart.
``(2) Special rule.--Any family participating in a program
assisted under this subpart that becomes ineligible to participate
as a result of 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. 1237. APPLICATIONS.
``(a) Submission.--To be eligible to receive a subgrant under this
subpart, an eligible entity shall submit an application to the State
educational agency in such form and containing or accompanied by such
information as the State educational agency shall require.
``(b) Required Documentation.--Each application shall include
documentation, satisfactory to the State educational agency, that the
eligible entity has the qualified personnel needed--
``(1) to develop, administer, and implement an Even Start
program under this subpart; and
``(2) to provide access to the special training necessary to
prepare staff for the program, which may be offered by an eligible
organization.
``(c) Plan.--
``(1) In general.--The application shall also include a plan of
operation and continuous improvement for the program, that
includes--
``(A) a description of the program objectives, strategies
to meet those objectives, and how those strategies and
objectives are consistent with the program indicators
established by the State;
``(B) a description of the activities and services that
will be provided under the program, including a description of
how the program will incorporate the program elements required
by section 1235;
``(C) a description of the population to be served and an
estimate of the number of participants to be served;
``(D) as appropriate, a description of the applicant's
collaborative efforts with institutions of higher education,
community-based organizations, the State educational agency,
private elementary schools, or other eligible organizations in
carrying out the program for which assistance is sought;
``(E) a statement of the methods that will be used--
``(i) to ensure that the programs will serve families
most in need of the activities and services provided by
this subpart;
``(ii) to provide services under this subpart to
individuals with special needs, such as individuals with
limited English proficiency and individuals with
disabilities; and
``(iii) to encourage participants to remain in the
program for a time sufficient to meet the program's
purpose;
``(F) a description of how the plan is integrated with
other programs under this Act or other Acts, as appropriate;
and
``(G) a description of how the plan provides for rigorous
and objective evaluation of progress toward the program
objectives described in subparagraph (A) and for continuing use
of evaluation data for program improvement.
``(2) Duration of the plan.--Each plan submitted under
paragraph (1) shall--
``(A) remain in effect for the duration of the eligible
entity's participation under this subpart; and
``(B) be periodically reviewed and revised by the eligible
entity as necessary.
``(d) Consolidated Application.--The plan described in subsection
(c)(1) may be submitted as part of a consolidated application under
section 9305.
``SEC. 1238. AWARD OF SUBGRANTS.
``(a) Selection Process.--
``(1) In general.--The State educational agency shall establish
a review panel in accordance with paragraph (3) that will approve
applications that--
``(A) are most likely to be successful in--
``(i) meeting the purpose of this subpart; and
``(ii) effectively implementing the program elements
required under section 1235;
``(B) demonstrate that the area to be served by the program
has a high percentage or a large number of children and
families who are in need of those services as indicated by high
levels of poverty, illiteracy, unemployment, limited English
proficiency, or other need-related indicators, such as a high
percentage of children to be served by the program who reside
in a school attendance area served by a local educational
agency eligible for participation in programs under part A, a
high number or percentage of parents who have been victims of
domestic violence, or a high number or percentage of parents
who are receiving assistance under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.);
``(C) provide services for at least a 3-year age range,
which may begin at birth;
``(D) demonstrate the greatest possible cooperation and
coordination between a variety of relevant service providers in
all phases of the program;
``(E) include cost-effective budgets, given the scope of
the application;
``(F) demonstrate the applicant's ability to provide the
non-Federal share required by section 1234(b);
``(G) are representative of urban and rural regions of the
State; and
``(H) show the greatest promise for providing models that
may be adopted by other family literacy projects and other
local educational agencies.
``(2) Priority for subgrants.--The State educational agency
shall give priority for subgrants under this subsection to
applications that--
``(A) target services primarily to families described in
paragraph (1)(B); or
``(B) are located in areas designated as empowerment zones
or enterprise communities.
``(3) Review panel.--A review panel shall consist of at least
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
``(B) affording the eligible entity notice and an
opportunity for a hearing.
``(5) Grant renewal.--(A) An eligible entity that has
previously received a subgrant under this subpart may reapply under
this subpart for additional subgrants.
``(B) The Federal share of any subgrant renewed under
subparagraph (A) shall be limited in accordance with section
1234(b).
``SEC. 1239. EVALUATION.
``From funds reserved under section 1232(b)(1), the Secretary shall
provide for an independent evaluation of programs assisted under this
subpart--
``(1) to determine the performance and effectiveness of
programs assisted under this subpart;
``(2) to identify effective Even Start programs assisted under
this subpart that can be duplicated and used in providing technical
assistance to Federal, State, and local programs; and
``(3) to provide State educational agencies and eligible
entities receiving a subgrant under this subpart, directly or
through a grant or contract with an organization with experience in
the development and operation of successful family literacy
services, technical assistance to ensure that local evaluations
undertaken under section 1235(15) provide accurate information on
the effectiveness of programs assisted under this subpart.
``SEC. 1240. INDICATORS OF PROGRAM QUALITY.
``Each State educational agency receiving funds under this subpart
shall develop, based on the best available research and evaluation
data, indicators of program quality for programs assisted under this
subpart. The indicators shall be used to monitor, evaluate, and improve
those programs within the State. The indicators shall include the
following:
``(1) With respect to eligible participants in a program who
are adults--
``(A) achievement in the areas of reading, writing,
English-language acquisition, problem solving, and numeracy;
``(B) receipt of a secondary school diploma or a general
equivalency diploma (GED);
``(C) entry into a postsecondary school, job retraining
program, or employment or career advancement, including the
military; and
``(D) such other indicators as the State may develop.
``(2) With respect to eligible participants in a program who
are children--
``(A) improvement in ability to read on grade level or
reading readiness;
``(B) school attendance;
``(C) grade retention and promotion; and
``(D) such other indicators as the State may develop.
``SEC. 1241. RESEARCH.
``(a) In General.--The Secretary shall carry out, through grant or
contract, research into the components of successful family literacy
services, in order to--
``(1) improve the quality of existing programs assisted under
this subpart or other family literacy programs carried out under
this Act or the Adult Education and Family Literacy Act; and
``(2) develop models for new programs to be carried out under
this Act or the Adult Education and Family Literacy Act.
``(b) Scientifically Based Research on Family Literacy.--
``(1) In general.--From amounts reserved under section
1232(b)(2), the National Institute for Literacy, in consultation
with the Secretary, shall carry out research that--
``(A) is scientifically based reading research; and
``(B) determines--
``(i) the most effective ways of improving the literacy
skills of adults with reading difficulties; and
``(ii) how family literacy services can best provide
parents with the knowledge and skills the parents need to
support their children's literacy development.
``(2) Use of expert entity.--The National Institute for
Literacy, in consultation with the Secretary, shall carry out the
research under paragraph (1) through an entity, including a Federal
agency, that has expertise in carrying out longitudinal studies of
the development of literacy skills in children and has developed
effective interventions to help children with reading difficulties.
``(c) Dissemination.--The National Institute for Literacy shall
disseminate, pursuant to section 1207, the results of the research
described in subsections (a) and (b) to State educational agencies and
recipients of subgrants under this subpart.
``SEC. 1242. CONSTRUCTION.
``Nothing in this subpart shall be construed to prohibit a
recipient of funds under this subpart from serving students
participating in Even Start simultaneously with students with similar
educational needs, in the same educational settings where appropriate.
``Subpart 4--Improving Literacy Through School Libraries
``SEC. 1251. IMPROVING LITERACY THROUGH SCHOOL LIBRARIES.
``(a) Purposes.--The purpose of this subpart is to improve literacy
skills and academic achievement of students by providing students with
increased access to up-to-date school library materials, a well-
equipped, technologically advanced school library media center, and
well-trained, professionally certified school library media
specialists.
``(b) Reservation.--From the funds appropriated under section
1002(b)(4) for a fiscal year, the Secretary shall reserve--
``(1) 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
1002(b)(4) for a fiscal year is less than $100,000,000, then the
Secretary shall award grants, on a competitive basis, to eligible
local educational agencies under subsection (e).
``(2) Formula grants to states.--If the amount of funds
appropriated under section 1002(b)(4) for a fiscal year equals or
exceeds $100,000,000, then the Secretary shall award grants to
State educational agencies from allotments under subsection (d).
``(3) Definition of eligible local educational agency.--In this
section the term `eligible local educational agency' means--
``(A) in the case of a local educational agency receiving
assistance made available under paragraph (1), a local
educational agency in which 20 percent of the students served
by the local educational agency are from families with incomes
below the poverty line; and
``(B) in the case of a local educational agency receiving
assistance from State allocations made available under
paragraph (2), a local educational agency in which--
``(i) 15 percent of the students who are served by the
local educational agency are from such families; or
``(ii) the percentage of students from such families
who are served by the local educational agency is greater
than the statewide percentage of children from such
families.
``(d) State Grants.--
``(1) Allotments.--From funds made available under subsection
(c)(2) and not reserved under subsections (b) and (j) for a fiscal
year, the Secretary shall allot to each State educational agency
having an application approved under subsection (f)(1) an amount
that bears the same relation to the funds as the amount the State
educational agency received under part A for the preceding fiscal
year bears to the amount all such State educational agencies
received under part A for the preceding fiscal year, to increase
literacy and reading skills by improving school libraries.
``(2) Competitive grants to eligible local educational
agencies.--Each State educational agency receiving an allotment
under paragraph (1) for a fiscal year--
``(A) may reserve not more than 3 percent of the allotted
funds to provide technical assistance, disseminate information
about school library media programs that are effective and
based on scientifically based research, and pay administrative
costs related to activities under this section; and
``(B) shall use the allotted funds that remain after making
the reservation under subparagraph (A) to award grants, for a
period of 1 year, on a competitive basis, to eligible local
educational agencies in the State that have an application
approved under subsection (f)(2) for activities described in
subsection (g).
``(3) Reallotment.--If a State educational agency does not
apply for an allotment under this section for any fiscal year, or
if the State educational agency's application is not approved, the
Secretary shall reallot the amount of the State educational
agency's allotment to the remaining State educational agencies in
accordance with paragraph (1).
``(e) Direct Competitive Grants to Eligible Local Educational
Agencies.--
``(1) In general.--From amounts made available under subsection
(c)(1) and not reserved under subsections (b) and (j) for a fiscal
year, the Secretary shall award grants, on a competitive basis, to
eligible local educational agencies that have applications approved
under subsection (f)(2) for activities described in subsection (g).
``(2) Duration.--The Secretary shall award grants under this
subsection for a period of 1 year.
``(3) Distribution.--The Secretary shall ensure that grants
under this subsection are equitably distributed among the different
geographic regions of the United States, and among local
educational agencies serving urban and rural areas.
``(f) Applications.--
``(1) State educational agency.--Each State educational agency
desiring assistance under this section shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary shall require. The
application shall contain a description of--
``(A) how the State educational agency will assist eligible
local educational agencies in meeting the requirements of this
section and in using scientifically based research to implement
effective school library media programs; and
``(B) the standards and techniques the State educational
agency will use to evaluate the quality and impact of
activities carried out under this section by eligible local
educational agencies to determine the need for technical
assistance and whether to continue to provide additional
funding to the agencies under this section.
``(2) Eligible local educational agency.--Each eligible local
educational agency desiring assistance under this section shall
submit to the Secretary or State educational agency, as
appropriate, an application at such time, in such manner, and
containing such information as the Secretary or State educational
agency, respectively, shall require. The application shall contain
a description of--
``(A) a needs assessment relating to the need for school
library media improvement, based on the age and condition of
school library media resources, including book collections,
access of school library media centers to advanced technology,
and the availability of well-trained, professionally certified
school library media specialists, in schools served by the
eligible local educational agency;
``(B) the manner in which the eligible local educational
agency will use the funds made available through the grant to
carry out the activities described in subsection (g);
``(C) how the eligible local educational agency will
extensively involve school library media specialists, teachers,
administrators, and parents in the activities assisted under
this section, and the manner in which the eligible local
educational agency will carry out the activities described in
subsection (g) using programs and materials that are grounded
in scientifically based research;
``(D) the manner in which the eligible local educational
agency will effectively coordinate the funds and activities
provided under this section with Federal, State, and local
funds and activities under this subpart and other literacy,
library, technology, and professional development funds and
activities; and
``(E) the manner in which the eligible local educational
agency will collect and analyze data on the quality and impact
of activities carried out under this section by schools served
by the eligible local educational agency.
``(g) Local Activities.--Funds under this section may be used to--
``(1) acquire up-to-date school library media resources,
including books;
``(2) acquire and use advanced technology, incorporated into
the curricula of the school, to develop and enhance the information
literacy, information retrieval, and critical thinking skills of
students;
``(3) facilitate Internet links and other resource-sharing
networks among schools and school library media centers, and public
and academic libraries, where possible;
``(4) provide professional development described in section
1222(d)(2) for school library media specialists, and activities
that foster increased collaboration between school library media
specialists, teachers, and administrators; and
``(5) provide students with access to school libraries during
nonschool hours, including the hours before and after school,
during weekends, and during summer vacation periods.
``(h) Accountability and Reporting.--
``(1) Local reports.--Each eligible local educational agency
that receives funds under this section for a fiscal year shall
report to the Secretary or State educational agency, as
appropriate, on how the funding was used and the extent to which
the availability of, the access to, and the use of, up-to-date
school library media resources in the elementary schools and
secondary schools served by the eligible local educational agency
was increased.
``(2) State report.--Each State educational agency that
receives funds under this section shall compile the reports
received under paragraph (1) and submit the compiled reports to the
Secretary.
``(i) Supplement, Not Supplant.--Funds made available under this
section shall be used to supplement, and not supplant, other Federal,
State, and local funds expended to carry out activities relating to
library, technology, or professional development activities.
``(j) National Activities.--
``(1) Evaluations.--From the funds appropriated under section
1002(b)(4) for each fiscal year, the Secretary shall reserve not
more than 1 percent for annual, independent, national evaluations
of the activities assisted under this section and their impact on
improving the reading skills of students. The evaluations shall be
conducted not later than 3 years after the date of enactment of the
No Child Left Behind Act of 2001, and biennially thereafter.
``(2) Report to congress.--The Secretary shall transmit the
State reports received under subsection (h)(2) and the evaluations
conducted under paragraph (1) to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee on
Education and the Workforce of the House of Representatives.
``PART C--EDUCATION OF MIGRATORY CHILDREN
``SEC. 1301. PROGRAM PURPOSE.
``It is the purpose of this part to assist States to--
``(1) support high-quality and comprehensive educational
programs for migratory children to help reduce the educational
disruptions and other problems that result from repeated moves;
``(2) ensure that migratory children who move among the States
are not penalized in any manner by disparities among the States in
curriculum, graduation requirements, and State academic content and
student academic achievement standards;
``(3) ensure that migratory children are provided with
appropriate educational services (including supportive services)
that address their special needs in a coordinated and efficient
manner;
``(4) ensure that migratory children receive full and
appropriate opportunities to meet the same challenging State
academic content and student academic achievement standards that
all children are expected to meet;
``(5) design programs to help migratory children overcome
educational disruption, cultural and language barriers, social
isolation, various health-related problems, and other factors that
inhibit the ability of such children to do well in school, and to
prepare such children to make a successful transition to
postsecondary education or employment; and
``(6) ensure that migratory children benefit from State and
local systemic reforms.
``SEC. 1302. PROGRAM AUTHORIZED.
``In order to carry out the purpose of this part, the Secretary
shall make grants to State educational agencies, or combinations of
such agencies, to establish or improve, directly or through local
operating agencies, programs of education for migratory children in
accordance with this part.
``SEC. 1303. STATE ALLOCATIONS.
``(a) State Allocations.--
``(1) Fiscal year 2002.--For fiscal year 2002, each State
(other than the Commonwealth of Puerto Rico) is entitled to receive
under this part an amount equal to--
``(A) the sum of the estimated number of migratory children
aged 3 through 21 who reside in the State full time and the
full-time equivalent of the estimated number of migratory
children aged 3 through 21 who reside in the State part time,
as determined in accordance with subsection (e); multiplied by
``(B) 40 percent of the average per-pupil expenditure in
the State, except that the amount determined under this
paragraph shall not be less than 32 percent, nor more than 48
percent, of the average per-pupil expenditure in the United
States.
``(2) Subsequent years.--
``(A) Base amount.--
``(i) In general.--Except as provided in subsection (b)
and clause (ii), each State (other than the Commonwealth of
Puerto Rico) is entitled to receive under this part, for
fiscal year 2003 and succeeding fiscal years, an amount
equal to--
``(I) the amount that such State received under
this part for fiscal year 2002; plus
``(II) the amount allocated to the State under
subparagraph (B).
``(ii) Nonparticipating states.--In the case of a State
(other than the Commonwealth of Puerto Rico) that did not
receive any funds for fiscal year 2002 under this part, the
State shall receive, for fiscal year 2003 and succeeding
fiscal years, an amount equal to--
``(I) the amount that such State would have
received under this part for fiscal year 2002 if its
application under section 1304 for the year had been
approved; plus
``(II) the amount allocated to the State under
subparagraph (B).
``(B) Allocation of additional amount.--For fiscal year
2003 and succeeding fiscal years, the amount (if any) by which
the funds appropriated to carry out this part for the year
exceed such funds for fiscal year 2002 shall be allocated to a
State (other than the Commonwealth of Puerto Rico) so that the
State receives an amount equal to--
``(i) the sum of--
``(I) the number of identified eligible migratory
children, aged 3 through 21, residing in the State
during the previous year; and
``(II) the number of identified eligible migratory
children, aged 3 through 21, who received services
under this part in summer or intersession programs
provided by the State during such year; multiplied by
``(ii) 40 percent of the average per-pupil expenditure
in the State, except that the amount determined under this
clause may not be less than 32 percent, or more than 48
percent, of the average per-pupil expenditure in the United
States.
``(b) Allocation to Puerto Rico.--
``(1) In general.--For each fiscal year, the grant which the
Commonwealth of Puerto Rico shall be eligible to receive under this
part shall be the amount determined by multiplying the number of
children who would be counted under subsection (a)(1)(A) if such
subsection applied to the Commonwealth of Puerto Rico by the
product of--
``(A) the percentage which the average per-pupil
expenditure in the Commonwealth of Puerto Rico is of the lowest
average per-pupil expenditure of any of the 50 States; and
``(B) 32 percent of the average per-pupil expenditure in
the United States.
``(2) Minimum percentage.--The percentage in paragraph (1)(A)
shall not be less than--
``(A) for fiscal year 2002, 77.5 percent;
``(B) for fiscal year 2003, 80.0 percent;
``(C) for fiscal year 2004, 82.5 percent; and
``(D) for fiscal year 2005 and succeeding fiscal years,
85.0 percent.
``(3) Limitation.--If the application of paragraph (2) for any
fiscal year would result in any of the 50 States or the District of
Columbia receiving less under this part than it received under this
part for the preceding fiscal year, then the percentage described
in paragraph (1)(A) that is used for the Commonwealth of Puerto
Rico for the fiscal year for which the determination is made shall
be the greater of the percentage in paragraph (1)(A) for such
fiscal year or the percentage used for the preceding fiscal year.
``(c) Ratable Reductions; Reallocations.--
``(1) In general.--(A) If, after the Secretary reserves funds
under section 1308(c), the amount appropriated to carry out this
part for any fiscal year is insufficient to pay in full the amounts
for which all States are eligible, the Secretary shall ratably
reduce each such amount.
``(B) If additional funds become available for making such
payments for any fiscal year, the Secretary shall allocate such
funds to States in amounts that the Secretary determines will best
carry out the purpose of this part.
``(2) Special rule.--(A) The Secretary shall further reduce the
amount of any grant to a State under this part for any fiscal year
if the Secretary determines, based on available information on the
numbers and needs of migratory children in the State and the
program proposed by the State to address such needs, that such
amount exceeds the amount required under section 1304.
``(B) The Secretary shall reallocate such excess funds to other
States whose grants under this part would otherwise be insufficient
to provide an appropriate level of services to migratory children,
in such amounts as the Secretary determines are appropriate.
``(d) Consortium Arrangements.--
``(1) In general.--In the case of a State that receives a grant
of $1,000,000 or less under this section, the Secretary shall
consult with the State educational agency to determine whether
consortium arrangements with another State or other appropriate
entity would result in delivery of services in a more effective and
efficient manner.
``(2) Proposals.--Any State, regardless of the amount of such
State's allocation, may submit a consortium arrangement to the
Secretary for approval.
``(3) Approval.--The Secretary shall approve a consortium
arrangement under paragraph (1) or (2) if the proposal demonstrates
that the arrangement will--
``(A) reduce administrative costs or program function costs
for State programs; and
``(B) make more funds available for direct services to add
substantially to the welfare or educational attainment of
children to be served under this part.
``(e) Determining Numbers of Eligible Children.--In order to
determine the estimated number of migratory children residing in each
State for purposes of this section, the Secretary shall--
``(1) use such information as the Secretary finds most
accurately reflects the actual number of migratory children;
``(2) develop and implement a procedure for more accurately
reflecting cost factors for different types of summer and
intersession program designs;
``(3) adjust the full-time equivalent number of migratory
children who reside in each State to take into account--
``(A) the special needs of those children participating in
special programs provided under this part that operate during
the summer and intersession periods; and
``(B) the additional costs of operating such programs; and
``(4) conduct an analysis of the options for adjusting the
formula so as to better direct services to the child whose
education has been interrupted.
``SEC. 1304. STATE APPLICATIONS; SERVICES.
``(a) Application Required.--Any State desiring to receive a grant
under this part for any fiscal year shall submit an application to the
Secretary at such time and in such manner as the Secretary may require.
``(b) Program Information.--Each such application shall include--
``(1) a description of how, in planning, implementing, and
evaluating programs and projects assisted under this part, the
State and its local operating agencies will ensure that the special
educational needs of migratory children, including preschool
migratory children, are identified and addressed through--
``(A) the full range of services that are available for
migratory children from appropriate local, State, and Federal
educational programs;
``(B) joint planning among local, State, and Federal
educational programs serving migrant children, including
language instruction educational programs under part A or B of
title III;
``(C) the integration of services available under this part
with services provided by those other programs; and
``(D) measurable program goals and outcomes;
``(2) a description of the steps the State is taking to provide
all migratory students with the opportunity to meet the same
challenging State academic content standards and challenging State
student academic achievement standards that all children are
expected to meet;
``(3) a description of how the State will use funds received
under this part to promote interstate and intrastate coordination
of services for migratory children, including how, consistent with
procedures the Secretary may require, the State will provide for
educational continuity through the timely transfer of pertinent
school records, including information on health, when children move
from one school to another, whether or not such move occurs during
the regular school year;
``(4) a description of the State's priorities for the use of
funds received under this part, and how such priorities relate to
the State's assessment of needs for services in the State;
``(5) a description of how the State will determine the amount
of any subgrants the State will award to local operating agencies,
taking into account the numbers and needs of migratory children,
the requirements of subsection (d), and the availability of funds
from other Federal, State, and local programs;
``(6) such budgetary and other information as the Secretary may
require; and
``(7) a description of how the State will encourage programs
and projects assisted under this part to offer family literacy
services if the program or project serves a substantial number of
migratory children who have parents who do not have a high school
diploma or its recognized equivalent or who have low levels of
literacy.
``(c) Assurances.--Each such application shall also include
assurances, satisfactory to the Secretary, that--
``(1) funds received under this part will be used only--
``(A) for programs and projects, including the acquisition
of equipment, in accordance with section 1306; and
``(B) to coordinate such programs and projects with similar
programs and projects within the State and in other States, as
well as with other Federal programs that can benefit migratory
children and their families;
``(2) such programs and projects will be carried out in a
manner consistent with the objectives of section 1114, subsections
(b) and (d) of section 1115, subsections (b) and (c) of section
1120A, and part I;
``(3) in the planning and operation of programs and projects at
both the State and local agency operating level, there is
consultation with parent advisory councils for programs of 1 school
year in duration, and that all such programs and projects are
carried out--
``(A) in a manner that provides for the same parental
involvement as is required for programs and projects under
section 1118, unless extraordinary circumstances make such
provision impractical; and
``(B) in a format and language understandable to the
parents;
``(4) in planning and carrying out such programs and projects,
there has been, and will be, adequate provision for addressing the
unmet education needs of preschool migratory children;
``(5) the effectiveness of such programs and projects will be
determined, where feasible, using the same approaches and standards
that will be used to assess the performance of students, schools,
and local educational agencies under part A;
``(6) to the extent feasible, such programs and projects will
provide for--
``(A) advocacy and outreach activities for migratory
children and their families, including informing such children
and families of, or helping such children and families gain
access to, other education, health, nutrition, and social
services;
``(B) professional development programs, including
mentoring, for teachers and other program personnel;
``(C) family literacy programs, including such programs
that use models developed under Even Start;
``(D) the integration of information technology into
educational and related programs; and
``(E) programs to facilitate the transition of secondary
school students to postsecondary education or employment; and
``(7) the State will assist the Secretary in determining the
number of migratory children under paragraphs (1)(A) and (2)(B)(i)
of section 1303(a), through such procedures as the Secretary may
require.
``(d) Priority for Services.--In providing services with funds
received under this part, each recipient of such funds shall give
priority to migratory children who are failing, or most at risk of
failing, to meet the State's challenging State academic content
standards and challenging State student academic achievement standards,
and whose education has been interrupted during the regular school
year.
``(e) Continuation of Services.--Notwithstanding any other
provision of this part--
``(1) a child who ceases to be a migratory child during a
school term shall be eligible for services until the end of such
term;
``(2) a child who is no longer a migratory child may continue
to receive services for 1 additional school year, but only if
comparable services are not available through other programs; and
``(3) secondary school students who were eligible for services
in secondary school may continue to be served through credit
accrual programs until graduation.
``SEC. 1305. SECRETARIAL APPROVAL; PEER REVIEW.
``(a) Secretarial Approval.--The Secretary shall approve each State
application that meets the requirements of this part.
``(b) Peer Review.--The Secretary may review any such application
with the assistance and advice of State officials and other individuals
with relevant expertise.
``SEC. 1306. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN;
AUTHORIZED ACTIVITIES.
``(a) Comprehensive Plan.--
``(1) In general.--Each State that receives assistance under
this part shall ensure that the State and its local operating
agencies identify and address the special educational needs of
migratory children in accordance with a comprehensive State plan
that--
``(A) is integrated with other programs under this Act or
other Acts, as appropriate;
``(B) may be submitted as a part of 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
``(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.
``SEC. 1307. BYPASS.
``The Secretary may use all or part of any State's allocation under
this part to make arrangements with any public or private nonprofit
agency to carry out the purpose of this part in such State if the
Secretary determines that--
``(1) the State is unable or unwilling to conduct educational
programs for migratory children;
``(2) such arrangements would result in more efficient and
economic administration of such programs; or
``(3) such arrangements would add substantially to the welfare
or educational attainment of such children.
``SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.
``(a) Improvement of Coordination.--
``(1) In general.--The Secretary, in consultation with the
States, may make grants to, or enter into contracts with, State
educational agencies, local educational agencies, institutions of
higher education, and other public and private nonprofit entities
to improve the interstate and intrastate coordination among such
agencies' educational programs, including the establishment or
improvement of programs for credit accrual and exchange, available
to migratory students.
``(2) Duration.--Grants under this subsection may be awarded
for not more than 5 years.
``(b) Student Records.--
``(1) Assistance.--The Secretary shall assist States in
developing effective methods for the electronic transfer of student
records and in determining the number of migratory children in each
State.
``(2) Information system.--
``(A) In general.--The Secretary, in consultation with the
States, shall ensure the linkage of migrant student record
systems for the purpose of electronically exchanging, among the
States, health and educational information regarding all
migratory students. The Secretary shall ensure such linkage
occurs in a cost-effective manner, utilizing systems used by
the States prior to, or developed after, the date of enactment
of the No Child Left Behind Act of 2001, and shall determine
the minimum data elements that each State receiving funds under
this part shall collect and maintain. Such elements may
include--
``(i) immunization records and other health
information;
``(ii) elementary and secondary academic history
(including partial credit), credit accrual, and results
from State assessments required under section 1111(b);
``(iii) other academic information essential to
ensuring that migratory children achieve to high standards;
and
``(iv) eligibility for services under the Individuals
with Disabilities Education Act.
``(B) Notice and comment.--After consulting with the States
under subparagraph (A), the Secretary shall publish a notice in
the Federal Register seeking public comment on the proposed
data elements that each State receiving funds under this part
shall be required to collect for purposes of electronic
transfer of migratory student information and the requirements
that States shall meet for immediate electronic access to such
information. Such publication shall occur not later than 120
days after the date of enactment of the No Child Left Behind
Act of 2001.
``(3) No cost for certain transfers.--A State educational
agency or local educational agency receiving assistance under this
part shall make student records available to another State
educational agency or local educational agency that requests the
records at no cost to the requesting agency, if the request is made
in order to meet the needs of a migratory child.
``(4) Report to congress.--
``(A) In general.--Not later than April 30, 2003, the
Secretary shall report to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Education and the Workforce of the House of Representatives the
Secretary's findings and recommendations regarding the
maintenance and transfer of health and educational information
for migratory students by the States.
``(B) Required contents.--The Secretary shall include in
such report--
``(i) a review of the progress of States in developing
and linking electronic records transfer systems;
``(ii) recommendations for the development and linkage
of such systems; and
``(iii) recommendations for measures that may be taken
to ensure the continuity of services provided for migratory
students.
``(c) Availability of Funds.--For the purpose of carrying out this
section in any fiscal year, the Secretary shall reserve not more than
$10,000,000 of the amount appropriated to carry out this part for such
year.
``(d) Incentive Grants.--From the amounts made available to carry
out this section for any fiscal year, the Secretary may reserve not
more than $3,000,000 to award grants of not more than $250,000 on a
competitive basis to State educational agencies that propose a
consortium arrangement with another State or other appropriate entity
that the Secretary determines, pursuant to criteria that the Secretary
shall establish, will improve the delivery of services to migratory
children whose education is interrupted.
``(e) Data Collection.--The Secretary shall direct the National
Center for Education Statistics to collect data on migratory children.
``SEC. 1309. DEFINITIONS.
``As used in this part:
``(1) Local operating agency.--The term `local operating
agency' means--
``(A) a local educational agency to which a State
educational agency makes a subgrant under this part;
``(B) a public or nonprofit private agency with which a
State educational agency or the Secretary makes an arrangement
to carry out a project under this part; or
``(C) a State educational agency, if the State educational
agency operates the State's migrant education program or
projects directly.
``(2) Migratory child.--The term `migratory child' means a
child who is, or whose parent or spouse is, a migratory
agricultural worker, including a migratory dairy worker, or a
migratory fisher, and who, in the preceding 36 months, in order to
obtain, or accompany such parent or spouse, in order to obtain,
temporary or seasonal employment in agricultural or fishing work--
``(A) has moved from one school district to another;
``(B) in a State that is comprised of a single school
district, has moved from one administrative area to another
within such district; or
``(C) resides in a school district of more than 15,000
square miles, and migrates a distance of 20 miles or more to a
temporary residence to engage in a fishing activity.
``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH
WHO ARE NEGLECTED, DELINQUENT, OR AT-RISK
``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.
``(a) Purpose.--It is the purpose of this part--
``(1) to improve educational services for children and youth in
local and State institutions for neglected or delinquent children
and youth so that such children and youth have the opportunity to
meet the same challenging State academic content standards and
challenging State student academic achievement standards that all
children in the State are expected to meet;
``(2) to provide such children and youth with the services
needed to make a successful transition from institutionalization to
further schooling or employment; and
``(3) to prevent at-risk youth from dropping out of school, and
to provide dropouts, and children and youth returning from
correctional facilities or institutions for neglected or delinquent
children and youth, with a support system to ensure their continued
education.
``(b) Program Authorized.--In order to carry out the purpose of
this part and from amounts appropriated under section 1002(d), the
Secretary shall make grants to State educational agencies to enable
such agencies to award subgrants to State agencies and local
educational agencies to establish or improve programs of education for
neglected, delinquent, or at-risk children and youth.
``SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS PART.
``(a) Agency Subgrants.--Based on the allocation amount computed
under section 1412, the Secretary shall allocate to each State
educational agency an amount necessary to make subgrants to State
agencies under subpart 1.
``(b) Local Subgrants.--Each State shall retain, for the purpose of
carrying out subpart 2, funds generated throughout the State under part
A of this title based on children and youth residing in local
correctional facilities, or attending community day programs for
delinquent children and youth.
``Subpart 1--State Agency Programs
``SEC. 1411. ELIGIBILITY.
``A State agency is eligible for assistance under this subpart if
such State agency is responsible for providing free public education
for children and youth--
``(1) in institutions for neglected or delinquent children and
youth;
``(2) attending community day programs for neglected or
delinquent children and youth; or
``(3) in adult correctional institutions.
``SEC. 1412. ALLOCATION OF FUNDS.
``(a) Subgrants to State Agencies.--
``(1) In general.--Each State agency described in section 1411
(other than an agency in the Commonwealth of Puerto Rico) is
eligible to receive a subgrant under this subpart, for each fiscal
year, in an amount equal to the product of--
``(A) the number of neglected or delinquent children and
youth described in section 1411 who--
``(i) are enrolled for at least 15 hours per week in
education programs in adult correctional institutions; and
``(ii) are enrolled for at least 20 hours per week--
``(I) in education programs in institutions for
neglected or delinquent children and youth; or
``(II) in community day programs for neglected or
delinquent children and youth; and
``(B) 40 percent of the average per-pupil expenditure in
the State, except that the amount determined under this
subparagraph shall not be less than 32 percent, nor more than
48 percent, of the average per-pupil expenditure in the United
States.
``(2) Special rule.--The number of neglected or delinquent
children and youth determined under paragraph (1) shall--
``(A) be determined by the State agency by a deadline set
by the Secretary, except that no State agency shall be required
to determine the number of such children and youth on a
specific date set by the Secretary; and
``(B) be adjusted, as the Secretary determines is
appropriate, to reflect the relative length of such agency's
annual programs.
``(b) Subgrants to State Agencies in Puerto Rico.--
``(1) In general.--For each fiscal year, the amount of the
subgrant which a State agency in the Commonwealth of Puerto Rico
shall be eligible to receive under this subpart shall be the amount
determined by multiplying the number of children counted under
subsection (a)(1)(A) for the Commonwealth of Puerto Rico by the
product of--
``(A) the percentage which the average per-pupil
expenditure in the Commonwealth of Puerto Rico is of the lowest
average per-pupil expenditure of any of the 50 States; and
``(B) 32 percent of the average per-pupil expenditure in
the United States.
``(2) Minimum percentage.--The percentage in paragraph (1)(A)
shall not be less than--
``(A) for fiscal year 2002, 77.5 percent;
``(B) for fiscal year 2003, 80.0 percent;
``(C) for fiscal year 2004, 82.5 percent; and
``(D) for fiscal year 2005 and succeeding fiscal years,
85.0 percent.
``(3) Limitation.--If the application of paragraph (2) would
result in any of the 50 States or the District of Columbia
receiving less under this subpart than it received under this
subpart for the preceding fiscal year, then the percentage
described in paragraph (1)(A) that is used for the Commonwealth of
Puerto Rico for the fiscal year for which the determination is made
shall be the greater of--
``(A) the percentage in paragraph (1)(A) for such fiscal
year; or
``(B) the percentage used for the preceding fiscal year.
``(c) Ratable Reductions in Case of Insufficient Appropriations.--
If the amount appropriated for any fiscal year for subgrants under
subsections (a) and (b) is insufficient to pay the full amount for
which all State agencies are eligible under such subsections, the
Secretary shall ratably reduce each such amount.
``SEC. 1413. STATE REALLOCATION OF FUNDS.
``If a State educational agency determines that a State agency does
not need the full amount of the subgrant for which such State agency is
eligible under this subpart for any fiscal year, the State educational
agency may reallocate the amount that will not be needed to other
eligible State agencies that need additional funds to carry out the
purpose of this part, in such amounts as the State educational agency
shall determine.
``SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.
``(a) State Plan.--
``(1) In general.--Each State educational agency that desires
to receive a grant under this subpart shall submit, for approval by
the Secretary, a plan--
``(A) for meeting the educational needs of neglected,
delinquent, and at-risk children and youth;
``(B) for assisting in the transition of children and youth
from correctional facilities to locally operated programs; and
``(C) that is integrated with other programs under this Act
or other Acts, as appropriate.
``(2) Contents.--Each such State plan shall--
``(A) describe the program goals, objectives, and
performance measures established by the State that will be used
to assess the effectiveness of the program in improving the
academic, vocational, and technical skills of children in the
program;
``(B) provide that, to the extent feasible, such children
will have the same opportunities to achieve as such children
would have if such children were in the schools of local
educational agencies in the State; and
``(C) contain an assurance that the State educational
agency will--
``(i) ensure that programs assisted under this subpart
will be carried out in accordance with the State plan
described in this subsection;
``(ii) carry out the evaluation requirements of section
1431;
``(iii) ensure that the State agencies receiving
subgrants under this subpart comply with all applicable
statutory and regulatory requirements; and
``(iv) provide such other information as the Secretary
may reasonably require.
``(3) Duration of the plan.--Each such State plan shall--
``(A) remain in effect for the duration of the State's
participation under this part; and
``(B) be periodically reviewed and revised by the State, as
necessary, to reflect changes in the State's strategies and
programs under this part.
``(b) Secretarial Approval and Peer Review.--
``(1) Secretarial approval.--The Secretary shall approve each
State plan that meets the requirements of this subpart.
``(2) Peer review.--The Secretary may review any State plan
with the assistance and advice of individuals with relevant
expertise.
``(c) State Agency Applications.--Any State agency that desires to
receive funds to carry out a program under this subpart shall submit an
application to the State educational agency that--
``(1) describes the procedures to be used, consistent with the
State plan under section 1111, to assess the educational needs of
the children to be served under this subpart;
``(2) provide an assurance that in making services available to
children and youth in adult correctional institutions, priority
will be given to such children and youth who are likely to complete
incarceration within a 2-year period;
``(3) describes the program, including a budget for the first
year of the program, with annual updates to be provided to the
State educational agency;
``(4) describes how the program will meet the goals and
objectives of the State plan;
``(5) describes how the State agency will consult with experts
and provide the necessary training for appropriate staff, to ensure
that the planning and operation of institution-wide projects under
section 1416 are of high quality;
``(6) describes how the State agency will carry out the
evaluation requirements of section 9601 and how the results of the
most recent evaluation will be used to plan and improve the
program;
``(7) includes data showing that the State agency has
maintained the fiscal effort required of a local educational
agency, in accordance with section 9521;
``(8) describes how the programs will be coordinated with other
appropriate State and Federal programs, such as programs under
title I of Public Law 105-220, vocational and technical education
programs, State and local dropout prevention programs, and special
education programs;
``(9) describes how the State agency will encourage
correctional facilities receiving funds under this subpart to
coordinate with local educational agencies or alternative education
programs attended by incarcerated children and youth prior to their
incarceration to ensure that student assessments and appropriate
academic records are shared jointly between the correctional
facility and the local educational agency or alternative education
program;
``(10) describes how appropriate professional development will
be provided to teachers and other staff;
``(11) designates an individual in each affected correctional
facility or institution for neglected or delinquent children and
youth to be responsible for issues relating to the transition of
children and youth from such facility or institution to locally
operated programs;
``(12) describes how the State agency will endeavor to
coordinate with businesses for training and mentoring for
participating children and youth;
``(13) provides an assurance that the State agency will assist
in locating alternative programs through which students can
continue their education if the students are not returning to
school after leaving the correctional facility or institution for
neglected or delinquent children and youth;
``(14) provides assurances that the State agency will work with
parents to secure parents' assistance in improving the educational
achievement of their children and youth, and preventing their
children's and youth's further involvement in delinquent
activities;
``(15) provides an assurance that the State agency will work
with children and youth with disabilities in order to meet an
existing individualized education program and an assurance that the
agency will notify the child's or youth's local school if the child
or youth--
``(A) is identified as in need of special education
services while the child or youth is in the correctional
facility or institution for neglected or delinquent children
and youth; and
``(B) intends to return to the local school;
``(16) provides an assurance that the State agency will work
with children and youth who dropped out of school before entering
the correctional facility or institution for neglected or
delinquent children and youth to encourage the children and youth
to reenter school once the term of the incarceration is completed
or provide the child or youth with the skills necessary to gain
employment, continue the education of the child or youth, or
achieve a secondary school diploma or its recognized equivalent if
the child or youth does not intend to return to school;
``(17) provides an assurance that teachers and other qualified
staff are trained to work with children and youth with disabilities
and other students with special needs taking into consideration the
unique needs of such students;
``(18) describes any additional services to be provided to
children and youth, such as career counseling, distance learning,
and assistance in securing student loans and grants; and
``(19) provides an assurance that the program under this
subpart will be coordinated with any programs operated under the
Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C.
5601 et seq.) or other comparable programs, if applicable.
``SEC. 1415. USE OF FUNDS.
``(a) Uses.--
``(1) In general.--A State agency shall use funds received
under this subpart only for programs and projects that--
``(A) are consistent with the State plan under section
1414(a); and
``(B) concentrate on providing participants with the
knowledge and skills needed to make a successful transition to
secondary school completion, vocational or technical training,
further education, or employment.
``(2) Programs and projects.--Such programs and projects--
``(A) may include the acquisition of equipment;
``(B) shall be designed to support educational services
that--
``(i) except for institution-wide projects under
section 1416, are provided to children and youth identified
by the State agency as failing, or most at-risk of failing,
to meet the State's challenging academic content standards
and student academic achievement standards;
``(ii) supplement and improve the quality of the
educational services provided to such children and youth by
the State agency; and
``(iii) afford such children and youth an opportunity
to meet challenging State academic achievement standards;
``(C) shall be carried out in a manner consistent with
section 1120A and part I (as applied to programs and projects
under this part); and
``(D) may include the costs of meeting the evaluation
requirements of section 9601.
``(b) Supplement, Not Supplant.--A program under this subpart that
supplements the number of hours of instruction students receive from
State and local sources shall be considered to comply with the
supplement, not supplant requirement of section 1120A (as applied to
this part) without regard to the subject areas in which instruction is
given during those hours.
``SEC. 1416. INSTITUTION-WIDE PROJECTS.
``A State agency that provides free public education for children
and youth in an institution for neglected or delinquent children and
youth (other than an adult correctional institution) or attending a
community-day program for such children and youth may use funds
received under this subpart to serve all children in, and upgrade the
entire educational effort of, that institution or program if the State
agency has developed, and the State educational agency has approved, a
comprehensive plan for that institution or program that--
``(1) provides for a comprehensive assessment of the
educational needs of all children and youth in the institution or
program serving juveniles;
``(2) provides for a comprehensive assessment of the
educational needs of youth aged 20 and younger in adult facilities
who are expected to complete incarceration within a 2-year period;
``(3) describes the steps the State agency has taken, or will
take, to provide all children and youth under age 21 with the
opportunity to meet challenging State academic content standards
and student academic achievement standards in order to improve the
likelihood that the children and youth will complete secondary
school, attain a secondary diploma or its recognized equivalent, or
find employment after leaving the institution;
``(4) describes the instructional program, pupil services, and
procedures that will be used to meet the needs described in
paragraph (1), including, to the extent feasible, the provision of
mentors for the children and youth described in paragraph (1);
``(5) specifically describes how such funds will be used;
``(6) describes the measures and procedures that will be used
to assess student progress;
``(7) describes how the agency has planned, and will implement
and evaluate, the institution-wide or program-wide project in
consultation with personnel providing direct instructional services
and support services in institutions or community-day programs for
neglected or delinquent children and youth, and with personnel from
the State educational agency; and
``(8) includes an assurance that the State agency has provided
for appropriate training for teachers and other instructional and
administrative personnel to enable such teachers and personnel to
carry out the project effectively.
``SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.
``If a State agency operates a program or project under this
subpart in which individual children or youth are likely to participate
for more than 1 year, the State educational agency may approve the
State agency's application for a subgrant under this subpart for a
period of not more than 3 years.
``SEC. 1418. TRANSITION SERVICES.
``(a) Transition Services.--Each State agency shall reserve not
less than 15 percent and not more than 30 percent of the amount such
agency receives under this subpart for any fiscal year to support--
``(1) projects that facilitate the transition of children and
youth from State-operated institutions to schools served by local
educational agencies; or
``(2) the successful reentry of youth offenders, who are age 20
or younger and have received a secondary school diploma or its
recognized equivalent, into postsecondary education, or vocational
and technical training programs, through strategies designed to
expose the youth to, and prepare the youth for, postsecondary
education, or vocational and technical training programs, such as--
``(A) preplacement programs that allow adjudicated or
incarcerated youth to audit or attend courses on college,
university, or community college campuses, or through programs
provided in institutional settings;
``(B) worksite schools, in which institutions of higher
education and private or public employers partner to create
programs to help students make a successful transition to
postsecondary education and employment; and
``(C) essential support services to ensure the success of
the youth, such as--
``(i) personal, vocational and technical, and academic,
counseling;
``(ii) placement services designed to place the youth
in a university, college, or junior college program;
``(iii) information concerning, and assistance in
obtaining, available student financial aid;
``(iv) counseling services; and
``(v) job placement services.
``(b) Conduct of Projects.--A project supported under this section
may be conducted directly by the State agency, or through a contract or
other arrangement with one or more local educational agencies, other
public agencies, or private nonprofit organizations.
``(c) Rule of Construction.--Nothing in this section shall be
construed to prohibit a school that receives funds under subsection (a)
from serving neglected and delinquent children and youth simultaneously
with students with similar educational needs, in the same educational
settings where appropriate.
``SEC. 1419. EVALUATION; TECHNICAL ASSISTANCE; ANNUAL MODEL PROGRAM.
``The Secretary may reserve not more than 2.5 percent of the amount
made available to carry out this subpart for a fiscal year--
``(1) to develop a uniform model to evaluate the effectiveness
of programs assisted under this subpart; and
``(2) to provide technical assistance to and support the
capacity building of State agency programs assisted under this
subpart.
``Subpart 2--Local Agency Programs
``SEC. 1421. PURPOSE.
``The purpose of this subpart is to support the operation of local
educational agency programs that involve collaboration with locally
operated correctional facilities--
``(1) to carry out high quality education programs to prepare
children and youth for secondary school completion, training,
employment, or further education;
``(2) to provide activities to facilitate the transition of
such children and youth from the correctional program to further
education or employment; and
``(3) to operate programs in local schools for children and
youth returning from correctional facilities, and programs which
may serve at-risk children and youth.
``SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.
``(a) Local Subgrants.--With funds made available under section
1402(b), the State educational agency shall award subgrants to local
educational agencies with high numbers or percentages of children and
youth residing in locally operated (including county operated)
correctional facilities for children and youth (including facilities
involved in community day programs).
``(b) Special Rule.--A local educational agency that serves a
school operated by a correctional facility is not required to operate a
program of support for children and youth returning from such school to
a school that is not operated by a correctional agency but served by
such local educational agency, if more than 30 percent of the children
and youth attending the school operated by the correctional facility
will reside outside the boundaries served by the local educational
agency after leaving such facility.
``(c) Notification.--A State educational agency shall notify local
educational agencies within the State of the eligibility of such
agencies to receive a subgrant under this subpart.
``(d) Transitional and Academic Services.--Transitional and
supportive programs operated in local educational agencies under this
subpart shall be designed primarily to meet the transitional and
academic needs of students returning to local educational agencies or
alternative education programs from correctional facilities. Services
to students at-risk of dropping out of school shall not have a negative
impact on meeting the transitional and academic needs of the students
returning from correctional facilities.
``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.
``Each local educational agency desiring assistance under this
subpart shall submit an application to the State educational agency
that contains such information as the State educational agency may
require. Each such application shall include--
``(1) a description of the program to be assisted;
``(2) a description of formal agreements, regarding the program
to be assisted, between--
``(A) the local educational agency; and
``(B) correctional facilities and alternative school
programs serving children and youth involved with the juvenile
justice system;
``(3) as appropriate, a description of how participating
schools will coordinate with facilities working with delinquent
children and youth to ensure that such children and youth are
participating in an education program comparable to one operating
in the local school such youth would attend;
``(4) a description of the program operated by participating
schools for children and youth returning from correctional
facilities and, as appropriate, the types of services that such
schools will provide such children and youth and other at-risk
children and youth;
``(5) a description of the characteristics (including learning
difficulties, substance abuse problems, and other special needs) of
the children and youth who will be returning from correctional
facilities and, as appropriate, other at-risk children and youth
expected to be served by the program, and a description of how the
school will coordinate existing educational programs to meet the
unique educational needs of such children and youth;
``(6) as appropriate, a description of how schools will
coordinate with existing social, health, and other services to meet
the needs of students returning from correctional facilities, at-
risk children or youth, and other participating children or youth,
including prenatal health care and nutrition services related to
the health of the parent and the child or youth, parenting and
child development classes, child care, targeted reentry and
outreach programs, referrals to community resources, and scheduling
flexibility;
``(7) as appropriate, a description of any partnerships with
local businesses to develop training, curriculum-based youth
entrepreneurship education, and mentoring services for
participating students;
``(8) as appropriate, a description of how the program will
involve parents in efforts to improve the educational achievement
of their children, assist in dropout prevention activities, and
prevent the involvement of their children in delinquent activities;
``(9) a description of how the program under this subpart will
be coordinated with other Federal, State, and local programs, such
as programs under title I of Public Law 105-220 and vocational and
technical education programs serving at-risk children and youth;
``(10) a description of how the program will be coordinated
with programs operated under the Juvenile Justice and Delinquency
Prevention Act of 1974 and other comparable programs, if
applicable;
``(11) as appropriate, a description of how schools will work
with probation officers to assist in meeting the needs of children
and youth returning from correctional facilities;
``(12) a description of the efforts participating schools will
make to ensure correctional facilities working with children and
youth are aware of a child's or youth's existing individualized
education program; and
``(13) as appropriate, a description of the steps participating
schools will take to find alternative placements for children and
youth interested in continuing their education but unable to
participate in a regular public school program.
``SEC. 1424. USES OF FUNDS.
``Funds provided to local educational agencies under this subpart
may be used, as appropriate, for--
``(1) programs that serve children and youth returning to local
schools from correctional facilities, to assist in the transition
of such children and youth to the school environment and help them
remain in school in order to complete their education;
``(2) dropout prevention programs which serve at-risk children
and youth, including pregnant and parenting teens, children and
youth who have come in contact with the juvenile justice system,
children and youth at least 1 year behind their expected grade
level, migrant youth, immigrant youth, students with limited
English proficiency, and gang members;
``(3) the coordination of health and social services for such
individuals if there is a likelihood that the provision of such
services, including day care, drug and alcohol counseling, and
mental health services, will improve the likelihood such
individuals will complete their education;
``(4) special programs to meet the unique academic needs of
participating children and youth, including vocational and
technical education, special education, career counseling,
curriculum-based youth entrepreneurship education, and assistance
in securing student loans or grants for postsecondary education;
and
``(5) programs providing mentoring and peer mediation.
``SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING
FUNDS UNDER THIS SECTION.
``Each correctional facility entering into an agreement with a
local educational agency under section 1423(2) to provide services to
children and youth under this subpart shall--
``(1) where feasible, ensure that educational programs in the
correctional facility are coordinated with the student's home
school, particularly with respect to a student with an
individualized education program under part B of the Individuals
with Disabilities Education Act;
``(2) if the child or youth is identified as in need of special
education services while in the correctional facility, notify the
local school of the child or youth of such need;
``(3) where feasible, provide transition assistance to help the
child or youth stay in school, including coordination of services
for the family, counseling, assistance in accessing drug and
alcohol abuse prevention programs, tutoring, and family counseling;
``(4) provide support programs that encourage children and
youth who have dropped out of school to reenter school once their
term at the correctional facility has been completed, or provide
such children and youth with the skills necessary to gain
employment or seek a secondary school diploma or its recognized
equivalent;
``(5) work to ensure that the correctional facility is staffed
with teachers and other qualified staff who are trained to work
with children and youth with disabilities taking into consideration
the unique needs of such children and youth;
``(6) ensure that educational programs in the correctional
facility are related to assisting students to meet high academic
achievement standards;
``(7) to the extent possible, use technology to assist in
coordinating educational programs between the correctional facility
and the community school;
``(8) where feasible, involve parents in efforts to improve the
educational achievement of their children and prevent the further
involvement of such children in delinquent activities;
``(9) coordinate funds received under this subpart with other
local, State, and Federal funds available to provide services to
participating children and youth, such as funds made available
under title I of Public Law 105-220, and vocational and technical
education funds;
``(10) coordinate programs operated under this subpart with
activities funded under the Juvenile Justice and Delinquency
Prevention Act of 1974 and other comparable programs, if
applicable; and
``(11) if appropriate, work with local businesses to develop
training, curriculum-based youth entrepreneurship education, and
mentoring programs for children and youth.
``SEC. 1426. ACCOUNTABILITY.
``The State educational agency may--
``(1) reduce or terminate funding for projects under this
subpart if a local educational agency does not show progress in
reducing dropout rates for male students and for female students
over a 3-year period; and
``(2) require correctional facilities or institutions for
neglected or delinquent children and youth to demonstrate, after
receiving assistance under this subpart for 3 years, that there has
been an increase in the number of children and youth returning to
school, obtaining a secondary school diploma or its recognized
equivalent, or obtaining employment after such children and youth
are released.
``Subpart 3--General Provisions
``SEC. 1431. PROGRAM EVALUATIONS.
``(a) Scope of Evaluation.--Each State agency or local educational
agency that conducts a program under subpart 1 or 2 shall evaluate the
program, disaggregating data on participation by gender, race,
ethnicity, and age, not less than once every 3 years, to determine the
program's impact on the ability of participants--
``(1) to maintain and improve educational achievement;
``(2) to accrue school credits that meet State requirements for
grade promotion and secondary school graduation;
``(3) to make the transition to a regular program or other
education program operated by a local educational agency;
``(4) to complete secondary school (or secondary school
equivalency requirements) and obtain employment after leaving the
correctional facility or institution for neglected or delinquent
children and youth; and
``(5) as appropriate, to participate in postsecondary education
and job training programs.
``(b) Exception.--The disaggregation required under subsection (a)
shall not be required in a case in which the number of students in a
category is insufficient to yield statistically reliable information or
the results would reveal personally identifiable information about an
individual student.
``(c) Evaluation Measures.--In conducting each evaluation under
subsection (a), a State agency or local educational agency shall use
multiple and appropriate measures of student progress.
``(d) Evaluation Results.--Each State agency and local educational
agency shall--
``(1) submit evaluation results to the State educational agency
and the Secretary; and
``(2) use the results of evaluations under this section to plan
and improve subsequent programs for participating children and
youth.
``SEC. 1432. DEFINITIONS.
``In this part:
``(1) Adult correctional institution.--The term `adult
correctional institution' means a facility in which persons
(including persons under 21 years of age) are confined as a result
of a conviction for a criminal offense.
``(2) At-risk.--The term `at-risk', when used with respect to a
child, youth, or student, means a school aged individual who is at-
risk of academic failure, has a drug or alcohol problem, is
pregnant or is a parent, has come into contact with the juvenile
justice system in the past, is at least 1 year behind the expected
grade level for the age of the individual, has limited English
proficiency, is a gang member, has dropped out of school in the
past, or has a high absenteeism rate at school.
``(3) Community day program.--The term `community day program'
means a regular program of instruction provided by a State agency
at a community day school operated specifically for neglected or
delinquent children and youth.
``(4) Institution for neglected or delinquent children and
youth.--The term `institution for neglected or delinquent children
and youth' means--
``(A) a public or private residential facility, other than
a foster home, that is operated for the care of children who
have been committed to the institution or voluntarily placed in
the institution under applicable State law, due to abandonment,
neglect, or death of their parents or guardians; or
``(B) a public or private residential facility for the care
of children who have been adjudicated to be delinquent or in
need of supervision.
``PART E--NATIONAL ASSESSMENT OF TITLE I
``SEC. 1501. EVALUATIONS.
``(a) National Assessment of Title I.--
``(1) In general.--The Secretary shall conduct a national
assessment of the programs assisted under this title and the impact
of this title on States, local educational agencies, schools, and
students.
``(2) Issues to be examined.--In conducting the assessment
under this subsection, the Secretary shall examine, at a minimum,
the following:
``(A) The implementation of programs assisted under this
title and the impact of such implementation on increasing
student academic achievement (particularly in schools with high
concentrations of children living in poverty), relative to the
goal of all students reaching the proficient level of
achievement based on State academic assessments, challenging
State academic content standards, and challenging State student
academic achievement standards under section 1111.
``(B) The types of programs and services that have
demonstrated the greatest likelihood of helping students reach
the proficient and advanced levels of achievement based on
State student academic achievement standards and State academic
content standards.
``(C) The implementation of State academic standards,
assessments, and accountability systems developed under this
title, including--
``(i) the time and cost required for the development of
academic assessments for students in grades 3 through 8;
``(ii) how well such State assessments meet the
requirements for assessments described in this title; and
``(iii) the impact of such standards, assessments, and
accountability systems on educational programs and
instruction at the local level.
``(D) Each State's definition of adequate yearly progress,
including--
``(i) the impact of applying this definition to
schools, local educational agencies, and the State;
``(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) used State educational agency and local
educational agency funds and resources to help schools in
which 50 percent or more of the students are from families
with incomes below the poverty line meet the requirement
described in section 1119 of having all teachers highly
qualified not later than the end of the 2005-2006 school
year.
``(F) The implementation of schoolwide programs and
targeted assistance programs under this title and the impact of
such programs on improving student academic achievement,
including the extent to which schools meet the requirements of
such programs.
``(G) The extent to which varying models of comprehensive
school reform are funded and implemented under this title, and
the effect of the implementation of such models on improving
achievement of disadvantaged students.
``(H) The costs as compared to the benefits of the
activities assisted under this title.
``(I) The extent to which actions authorized under section
1116 are implemented by State educational agencies and local
educational agencies to improve the academic achievement of
students in low-performing schools, and the effectiveness of
the implementation of such actions, including the following:
``(i) The number of schools identified for school
improvement and how many years the schools remain in this
status.
``(ii) The types of support provided by the State
educational agencies and local educational agencies to
schools and local educational agencies respectively
identified as in need of improvement, and the impact of
such support on student achievement.
``(iii) The number of parents who take advantage of the
public school choice provisions of this title, the costs
(including transportation costs) associated with
implementing these provisions, the implementation of these
provisions, and the impact of these provisions (including
the impact of attending another school) on student
achievement.
``(iv) The number of parents who choose to take
advantage of the supplemental 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) Interim report.--Not later than 3 years after the
date of enactment of the No Child Left Behind Act of 2001, the
Secretary shall transmit to the President, the Committee on
Education and the Workforce of the House of Representatives,
and the Committee on Health, Education, Labor, and Pensions of
the Senate an interim report on the national assessment
conducted under this subsection.
``(B) Final report.--Not later than 5 years after the date
of enactment of the No Child Left Behind Act of 2001, the
Secretary shall transmit to the President, the Committee on
Education and the Workforce of the House of Representatives,
and the Committee on Health, Education, Labor, and Pensions of
the Senate a final report on the national assessment conducted
under this subsection.
``(b) Studies and Data Collection.--
``(1) In general.--In addition to other activities described in
this section, the Secretary may, directly or through awarding
grants to or entering into contracts with appropriate entities--
``(A) assess the implementation and effectiveness of
programs under this title;
``(B) collect the data necessary to comply with the
Government Performance and Results Act of 1993; and
``(C) provide guidance and technical assistance to State
educational agencies and local educational agencies in
developing and maintaining management information systems
through which such agencies may develop program performance
indicators to improve services and performance.
``(2) Minimum information.--In carrying out this subsection,
the Secretary shall collect, at a minimum, trend information on the
effect of each program authorized under this title, which shall
complement the data collected and reported under subsections (a)
and (c).
``(c) National Longitudinal Study.--
``(1) In general.--The Secretary shall conduct a longitudinal
study of schools receiving assistance under part A.
``(2) Issues to be examined.--In carrying out this subsection,
the Secretary shall ensure that the study referred to in paragraph
(1) provides Congress and educators with each of the following:
``(A) An accurate description and analysis of the short-
and long-term effect of the assistance made available under
this title on academic achievement.
``(B) Information that can be used to improve the
effectiveness of the assistance made available under this title
in enabling students to meet challenging academic achievement
standards.
``(C) An analysis of educational practices or model
programs that are effective in improving the achievement of
disadvantaged children.
``(D) An analysis of the costs as compared to the benefits
of the assistance made available under this title in improving
the achievement of disadvantaged children.
``(E) An analysis of the effects of the availability of
school choice options under section 1116 on the academic
achievement of disadvantaged students, on schools in school
improvement, and on schools from which students have
transferred under such options.
``(F) Such other information as the Secretary considers
appropriate.
``(3) Scope.--In conducting the study referred to in paragraph
(1), the Secretary shall ensure that the study--
``(A) bases its analysis on a nationally representative
sample of schools participating in programs under this title;
``(B) to the extent practicable, includes in its analysis
students who transfer to different schools during the course of
the study; and
``(C) analyzes varying models or strategies for delivering
school services, including--
``(i) schoolwide and targeted services; and
``(ii) comprehensive school reform models.
``(d) Independent Review Panel.--
``(1) In general.--The Secretary shall establish an independent
review panel (in this subsection referred to as the `Review Panel')
to advise the Secretary on methodological and other issues that
arise in carrying out subsections (a) and (c).
``(2) Appointment of members.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall appoint members of the Review Panel from among
qualified individuals who are--
``(i) specialists in statistics, evaluation, research,
and assessment;
``(ii) education practitioners, including teachers,
principals, and local and State superintendents;
``(iii) parents and members of local school boards or
other organizations involved with the implementation and
operation of programs under this title; and
``(iv) other individuals with technical expertise who
will contribute to the overall rigor and quality of the
program evaluation.
``(B) Limitations.--In appointing members of the Review
Panel, the Secretary shall ensure that--
``(i) in order to ensure diversity, the Review Panel
includes individuals appointed under subparagraph (A)(i)
who represent disciplines or programs outside the field of
education; and
``(ii) the total number of the individuals appointed
under subparagraph (A)(ii) or (A)(iv) does not exceed 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--
``(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. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.
``(a) In General.--From the funds appropriated for any fiscal year
under section 1002(e)(1), the Secretary may award grants to State
educational agencies, local educational agencies, other public
agencies, nonprofit organizations, public or private partnerships
involving business and industry organizations, and consortia of such
entities to carry out demonstration projects that show the most promise
of enabling children served under this title to meet challenging State
academic content standards and challenging State student academic
achievement standards.
``(b) Evaluation.--The Secretary shall evaluate the demonstration
projects supported under this title, using rigorous methodological
designs and techniques, including control groups and random assignment,
to the extent feasible, to produce reliable evidence of effectiveness.
``(c) Partnerships.--From funds appropriated under section
1002(e)(1) for any fiscal year, the Secretary may, directly or through
grants or contracts, work in partnership with State educational
agencies, local educational agencies, other public agencies, and
nonprofit organizations to disseminate and use the highest quality
research and knowledge about effective practices to improve the quality
of teaching and learning in schools assisted under this title.
``SEC. 1503. ASSESSMENT EVALUATION.
``(a) In General.--The Secretary shall conduct an independent study
of assessments used for State accountability purposes and for making
decisions about the promotion and graduation of students. Such research
shall be conducted over a period not to exceed 5 years and shall
address the components described in subsection (d).
``(b) Contract Authorized.--The Secretary is authorized to award a
contract, through a peer review process, to an organization or entity
capable of conducting rigorous, independent research. The Assistant
Secretary of Educational Research and Improvement shall appoint peer
reviewers to evaluate the applications for this contract.
``(c) Study.--The study shall--
``(1) synthesize and analyze existing research that meets
standards of quality and scientific rigor; and
``(2) evaluate academic assessment and accountability systems
in State educational agencies, local educational agencies, and
schools; and
``(3) make recommendations to the Department and to the
Committee on Education and the Workforce of the United States House
of Representatives and the Committee on Health, Education, Labor,
and Pensions of the United States Senate, based on the findings of
the study.
``(d) Components of the Research Program.--The study described in
subsection (a) shall examine--
``(1) the effect of the assessment and accountability systems
described in section (c) on students, teachers, parents, families,
schools, school districts, and States, including correlations
between such systems and--
``(A) student academic achievement, progress to the State-
defined level of proficiency, and progress toward closing
achievement gaps, based on independent measures;
``(B) changes in course offerings, teaching practices,
course content, and instructional material;
``(C) changes in turnover rates among teachers, principals,
and pupil-services personnel;
``(D) changes in dropout, grade-retention, and graduation
rates for students; and
``(E) such other effects as may be appropriate;
``(2) the effect of the academic assessments on students with
disabilities;
``(3) the effect of the academic assessments on low, middle,
and high socioeconomic status students, limited and nonlimited
English proficient students, racial and ethnic minority students,
and nonracial or nonethnic minority students;
``(4) guidelines for assessing the validity, reliability, and
consistency of those systems using nationally recognized
professional and technical standards;
``(5) the relationship between accountability systems and the
inclusion or exclusion of students from the assessment system; and
``(6) such other factors as the Secretary finds appropriate.
``(e) Reporting.--Not later than 3 years after the contract
described in 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. 1504. CLOSE UP FELLOWSHIP PROGRAM.
``(a) Program for Middle School and Secondary School Students.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close Up
Foundation of Washington, District of Columbia, a nonpartisan,
nonprofit foundation, for the purpose of assisting the Close Up
Foundation in carrying out its programs of increasing civic
responsibility and understanding of the Federal Government
among middle school and secondary school students.
``(B) Use of funds.--Grants under this subsection shall be
used only to provide financial assistance to economically
disadvantaged students who participate in the programs
described in subparagraph (A).
``(C) Name of fellowships.--Financial assistance received
by students pursuant to this subsection shall be known as Close
Up fellowships.
``(2) Applications.--
``(A) Application required.--No grant under this subsection
may be made except upon an application at such time, in such
manner, and accompanied by such information as the Secretary
may reasonably require.
``(B) Contents of application.--Each application submitted
under this paragraph shall contain assurances that--
``(i) Close Up fellowships provided under this
subsection shall be made to economically disadvantaged
middle school and secondary school students;
``(ii) every effort shall be made to ensure the
participation of students from rural, small town, and urban
areas;
``(iii) in awarding the fellowships to economically
disadvantaged students, special consideration shall be
given to the participation of those students with special
educational needs, including students with disabilities,
ethnic minority students, and students with migrant
parents; and
``(iv) the funds received under this subsection shall
be properly disbursed.
``(b) Program for Middle School and Secondary School Teachers.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close Up
Foundation of Washington, District of Columbia, a nonpartisan,
nonprofit foundation, for the purpose of assisting the Close Up
Foundation in carrying out its programs of professional
development for middle school and secondary school teachers and
its programs to increase civic responsibility and understanding
of the Federal Government among the teachers' students.
``(B) Use of funds.--Grants under this subsection shall be
used only to provide financial assistance to teachers who
participate in the programs described in subparagraph (A).
``(C) Name of fellowships.--Financial assistance received
by teachers pursuant to this subsection shall be known as Close
Up fellowships.
``(2) Applications.--
``(A) Application required.--No grant under this subsection
may be made except upon an application at such time, in such
manner, and accompanied by such information as the Secretary
may reasonably require.
``(B) Contents of application.--Each application submitted
under this paragraph shall contain assurances that--
``(i) Close Up fellowships provided under this
subsection shall be made only to a teacher who has worked
with at least 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;
``(iv) fully describe the activities to be carried out
with the proceeds of the grant made under paragraph (1);
and
``(v) the funds received under this subsection shall be
properly disbursed.
``(d) General Provisions.--
``(1) Administrative provisions.--
``(A) Accountability.--In consultation with the Secretary,
the Close Up Foundation shall devise and implement procedures
to measure the efficacy of the programs authorized in
subsections (a), (b), and (c) in attaining objectives that
include the following:
``(i) Providing young people with an increased
understanding of the Federal Government.
``(ii) Heightening a sense of civic responsibility
among young people.
``(iii) Enhancing the skills of educators in teaching
young people about civic responsibility, the Federal
Government, and attaining citizenship competencies.
``(B) General rule.--Payments under this section may be
made in installments, in advance, or by way of reimbursement,
with necessary adjustments on account of underpayments or
overpayments.
``(C) Audit rule.--The Comptroller General of the United
States or any of the Comptroller General's duly authorized
representatives shall have access for the purpose of audit and
examination to any books, documents, papers, and records that
are pertinent to any grant under this section.
``(2) Continuation of awards.--Notwithstanding any other
provision of this Act, any person or entity that was awarded a
grant under part G of title X before the date of enactment of the
No Child Left Behind Act of 2001 shall continue to receive funds in
accordance with the terms of such award until the date on which the
award period terminates under such terms.
``PART F--COMPREHENSIVE SCHOOL REFORM
``SEC. 1601. PURPOSE.
``The purpose of this part is to provide financial incentives for
schools to develop comprehensive school reforms, based upon
scientifically based research and effective practices that include an
emphasis on basic academics and parental involvement so that all
children can meet challenging State academic content and academic
achievement standards.
``SEC. 1602. PROGRAM AUTHORIZATION.
``(a) Program Authorized.--
``(1) In general.--The Secretary is authorized to award grants
to State educational agencies, from allotments under paragraph (2),
to enable the State educational agencies to award subgrants to
local educational agencies to carry out the purpose described in
section 1601.
``(2) Allotments.--
``(A) Reservations.--Of the amount appropriated under
section 1002(f), the Secretary may reserve--
``(i) not more than 1 percent for each fiscal year to
provide assistance to schools supported by the Bureau of
Indian Affairs and in the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands according to their respective needs for
assistance under this part;
``(ii) not more than 1 percent for each fiscal year to
conduct national evaluation activities described in section
1607; and
``(iii) not more than 3 percent of the amount
appropriated in fiscal year 2002 to carry out this part,
for quality initiatives described in section 1608.
``(B) In general.--Of the amount appropriated under section
1002(f) that remains after making the reservation under
subparagraph (A) for a fiscal year, the Secretary shall allot
to each State for the fiscal year an amount that bears the same
ratio to the remainder for that fiscal year as the amount made
available under section 1124 to the State for the preceding
fiscal year bears to the total amount made available under
section 1124 to all States for that year.
``(C) Reallotment.--If a State does not apply for funds
under this section, the Secretary shall reallot such funds to
other States that do apply in proportion to the amount allotted
to such other States under subparagraph (B).
``SEC. 1603. STATE APPLICATIONS.
``(a) In General.--Each State educational agency that desires to
receive a grant under this 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
``(5) how the State educational agency will provide technical
assistance to the local educational agency or consortia of local
educational agencies, and to participating schools, in evaluating,
developing, and implementing comprehensive school reform.
``SEC. 1604. STATE USE OF FUNDS.
``(a) In General.--Except as provided in subsection (e), a State
educational agency that receives a grant under this part shall use the
grant funds to award subgrants, on a competitive basis, to local
educational agencies or consortia of local educational agencies in the
State that receive funds under part A, to support comprehensive school
reforms in schools that are eligible for funds under part A.
``(b) Subgrant Requirements.--A subgrant to a local educational
agency or consortium shall be--
``(1) of sufficient size and scope to support the initial costs
of comprehensive school reforms selected or designed by each school
identified in the application of the local educational agency or
consortium;
``(2) in an amount not less than $50,000--
``(A) for each participating school; or
``(B) for each participating consortium of small schools
(which for purposes of this subparagraph means a consortium of
small schools serving a total of not more than 500 students);
and
``(3) renewable for 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 part, the amount
of the assistance, a description of the comprehensive school reforms
selected and used, and a copy of the State's annual evaluation of the
implementation of comprehensive school reforms supported under this
part and the student achievement results.
``SEC. 1605. LOCAL APPLICATIONS.
``(a) In General.--Each local educational agency or consortium of
local educational agencies desiring a subgrant under this 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. 1606. LOCAL USE OF FUNDS.
``(a) Uses of Funds.--A local educational agency or consortium that
receives a subgrant under this part shall provide the subgrant funds to
schools that are eligible for assistance under part A and served by the
agency, to enable the schools to implement a comprehensive school
reform program that--
``(1) employs proven strategies and proven methods for student
learning, teaching, and school management that are based on
scientifically based research and effective practices and have been
replicated successfully in schools;
``(2) integrates a comprehensive design for effective school
functioning, including instruction, assessment, classroom
management, professional development, parental involvement, and
school management, that aligns the school's curriculum, technology,
and professional development into a comprehensive school reform
plan for schoolwide change designed to enable all students to meet
challenging State content and student academic achievement
standards and addresses needs identified through a school needs
assessment;
``(3) provides high quality and continuous teacher and staff
professional development;
``(4) includes measurable goals for student academic
achievement and benchmarks for meeting such goals;
``(5) is supported by teachers, principals, administrators,
school personnel staff, and other professional staff;
``(6) provides support for teachers, principals,
administrators, and other school staff;
``(7) provides for the meaningful involvement of parents and
the local community in planning, implementing, and evaluating
school improvement activities consistent with section 1118;
``(8) uses high quality external technical support and
assistance from an entity that has experience and expertise in
schoolwide reform and improvement, which may include an institution
of higher education;
``(9) includes a plan for the annual evaluation of the
implementation of school reforms and the student results achieved;
``(10) identifies other resources, including Federal, State,
local, and private resources, that shall be used to coordinate
services that will support and sustain the comprehensive school
reform effort; and
``(11)(A) has been found, through scientifically based research
to significantly improve the academic achievement of students
participating in such program as compared to students in schools
who have not participated in such program; or
``(B) has been found to have strong evidence that such program
will significantly improve the academic achievement of
participating children.
``(b) Special Rule.--A school that receives funds to develop a
comprehensive school reform program shall not be limited to using
nationally available approaches, but may develop the school's own
comprehensive school reform program for schoolwide change as described
in subsection (a).
``SEC. 1607. EVALUATION AND REPORTS.
``(a) In General.--The Secretary shall develop a plan for a
national evaluation of the programs assisted under this part.
``(b) Evaluation.--The national evaluation shall--
``(1) evaluate the implementation and results achieved by
schools after 3 years of implementing comprehensive school reforms;
and
``(2) assess the effectiveness of comprehensive school reforms
in schools with diverse characteristics.
``(c) Reports.--The Secretary shall submit a report describing the
results of the evaluation under subsection (b) for the Comprehensive
School Reform Program to the Committee on Education and the Workforce,
and the Committee on Appropriations of the House of Representatives,
and the Committee on Health, Education, Labor, and Pensions, and the
Committee on Appropriations of the Senate.
``SEC. 1608. QUALITY INITIATIVES.
``The Secretary, through grants or contracts, shall provide funds
for--
``(1) a public-private effort, in which funds are matched by
private organizations, to assist States, local educational
agencies, and schools, in making informed decisions regarding
approving or selecting providers of comprehensive school reform,
consistent with the requirements described in section 1606(a); and
``(2) activities to foster the development of comprehensive
school reform models and to provide effective capacity building for
comprehensive school reform providers to expand their work in more
schools, assure quality, and promote financial stability.
``PART G--ADVANCED PLACEMENT PROGRAMS
``SEC. 1701. SHORT TITLE.
``This part may be cited as the `Access to High Standards Act'.
``SEC. 1702. PURPOSES.
The purposes of this part are--
``(1) to support State and local efforts to raise academic
standards through advanced placement programs, and thus further
increase the number of students who participate and succeed in
advanced placement programs;
``(2) to encourage more of the 600,000 students who take
advanced placement courses each year but do not take advanced
placement exams each year, to demonstrate their achievements
through taking the exams;
``(3) to build on the many benefits of advanced placement
programs for students, which benefits may include the acquisition
of skills that are important to many employers, Scholastic Aptitude
Test (SAT) scores that are 100 points above the national averages,
and the achievement of better grades in secondary school and in
college than the grades of students who have not participated in
the programs;
``(4) to increase the availability and broaden the range of
schools, including middle schools, that have advanced placement and
pre-advanced placement programs;
``(5) to demonstrate that larger and more diverse groups of
students can participate and succeed in advanced placement
programs;
``(6) to provide greater access to advanced placement and pre-
advanced placement courses and highly trained teachers for low-
income and other disadvantaged students;
``(7) to provide access to advanced placement courses for
secondary school students at schools that do not offer advanced
placement programs, increase the rate at which secondary school
students participate in advanced placement courses, and increase
the numbers of students who receive advanced placement test scores
for which college academic credit is awarded;
``(8) to increase the participation of low-income individuals
in taking advanced placement tests through the payment or partial
payment of the costs of the advanced placement test fees; and
``(9) to increase the number of individuals that achieve a
baccalaureate or advanced degree, and to decrease the amount of
time such individuals require to attain such degrees.
``SEC. 1703. FUNDING DISTRIBUTION RULE.
``From amounts appropriated under section 1002(g) for a fiscal
year, the Secretary shall give priority to funding activities under
section 1704 and shall distribute any remaining funds under section
1705.
``SEC. 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.
``(a) Grants Authorized.--From amounts made available under section
1703 for a fiscal year, the Secretary shall award grants to State
educational agencies having applications approved under this section to
enable the State educational agencies to reimburse low-income
individuals to cover part or all of the costs of advanced placement
test fees, if the low-income individuals--
``(1) are enrolled in an advanced placement course; and
``(2) plan to take an advanced placement test.
``(b) Award Basis.--In determining the amount of the grant awarded
to a State educational agency under this section for a fiscal year, the
Secretary shall consider the number of children eligible to be counted
under section 1124(c) in the State in relation to the number of such
children so counted in all the States.
``(c) Information Dissemination.--A State educational agency
awarded a grant under this section shall disseminate information
regarding the availability of advanced placement test fee payments
under this section to eligible individuals through secondary school
teachers and guidance counselors.
``(d) Applications.--Each State educational agency desiring to
receive a grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require. At a minimum, each State
educational agency application shall--
``(1) describe the advanced placement test fees the State
educational agency will pay on behalf of low-income individuals in
the State from grant funds awarded under this section;
``(2) provide an assurance that any grant funds awarded under
this section shall be used only to pay for advanced placement test
fees; and
``(3) contain such information as the Secretary may require to
demonstrate that the State educational agency will ensure that a
student is eligible for payments authorized under this section,
including documentation required under chapter 1 of subpart 2 of
part A of title IV of the Higher Education Act of 1965.
``(e) Regulations.--The Secretary shall prescribe such regulations
as are necessary to carry out this section.
``(f) Report.--
``(1) In general.--Each State educational agency awarded a
grant under this section shall, with respect to each advanced
placement subject, annually report to the Secretary on--
``(A) the number of students in the State who are taking an
advanced placement course in that subject;
``(B) the number of advanced placement tests taken by
students in the State who have taken an advanced placement
course in that subject;
``(C) the number of students in the State scoring at
different levels on advanced placement tests in that subject;
and
``(D) demographic information regarding individuals in the
State taking advanced placement courses and tests in that
subject disaggregated by race, ethnicity, sex, English
proficiency status, and socioeconomic status.
``(2) Report to congress.--The Secretary shall annually compile
the information received from each State educational agency under
paragraph (1) and report to the appropriate committees of Congress
regarding the information.
``(g) BIA as SEA.--For purposes of this section the Bureau of
Indian Affairs shall be treated as a State educational agency.
``SEC. 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM GRANTS.
``(a) Grants Authorized.--
``(1) In general.--From amounts made available under section
1703 for a fiscal year, the Secretary shall award grants, on a
competitive basis, to eligible entities to enable those entities to
carry out the authorized activities described in subsection (d).
``(2) Duration and payments.--
``(A) Duration.--The Secretary shall award a grant under
this section for a period of not more than 3 years.
``(B) Payments.--The Secretary shall make grant payments
under this section on an annual basis.
``(3) Definition of eligible entity.--In this section, the term
`eligible entity' means a State educational agency, local
educational agency, or national nonprofit educational entity with
expertise in advanced placement services.
``(b) Application.--Each eligible entity desiring a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary
may require.
``(c) Priority.--In awarding grants under this section, the
Secretary shall give priority to an eligible entity that submits an
application under subsection (b) that--
``(1) demonstrates a pervasive need for access to advanced
placement incentive programs;
``(2) provides for the involvement of business and community
organizations in the activities to be assisted;
``(3) assures the availability of matching funds from State,
local, or other sources to pay for the cost of activities to be
assisted;
``(4) demonstrates a focus on developing or expanding advanced
placement programs and participation in the core academic areas of
English, mathematics, and science;
``(5) demonstrates an intent to carry out activities that
target--
``(A) local educational agencies serving schools with a
high concentration of low-income students; or
``(B) schools with a high concentration of low-income
students; and
``(6) in the case of a local educational agency, assures that
the local educational agency serves schools with a high
concentration of low-income students; or
``(7) demonstrates an intent to carry out activities to
increase the availability of, and participation in, on-line
advanced placement courses.
``(d) Authorized Activities.--
``(1) In general.--Subject to paragraph (2), an eligible entity
shall use grant funds made available under this section to expand
access for low-income individuals to advanced placement incentive
programs that involve--
``(A) teacher training;
``(B) pre-advanced placement course development;
``(C) coordination and articulation between grade levels to
prepare students for academic achievement in advanced placement
courses;
``(D) books and supplies; or
``(E) activities to increase the availability of, and
participation in, on-line advanced placement courses; or
``(F) any other activity directly related to expanding
access to and participation in advanced placement incentive
programs, particularly for low-income individuals.
``(2) State educational agency.--In the case of an eligible
entity that is a State educational agency, the entity may use grant
funds made available under this section to award subgrants to local
educational agencies to enable the local educational agencies to
carry out the activities under paragraph (1).
``(e) Contracts.--An eligible entity awarded a grant to provide
online advanced placement courses under this part may enter into a
contract with a nonprofit or for profit organization to provide the
online advanced placement courses, including contracting for necessary
support services.
``(f) Data Collection and Reporting.--
``(1) Data collection.--Each eligible entity awarded a grant
under this section shall, with respect to each advanced placement
subject, annually report to the Secretary on--
``(A) the number of students served by the eligible entity
who are taking an advanced placement course in that subject;
``(B) the number of advanced placement tests taken by
students served by the eligible entity in that subject;
``(C) the number of students served by the eligible entity
scoring at different levels on advanced placement tests in that
subject; and
``(D) demographic information regarding individuals served
by such agency who taking advanced placement courses and tests
in that subject disaggregated by race, ethnicity, sex, English
proficiency status, and socioeconomic status.
``(2) Report.--The Secretary shall annually compile the
information received from each eligible entity under paragraph (1)
and report to the appropriate committees of Congress regarding the
information.
``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.
Grant funds provided under this part shall supplement, and not
supplant, other non-Federal funds that are available to assist low-
income individuals to pay for the cost of advanced placement test fees
or to expand access to advanced placement and pre-advanced placement
courses.
``SEC. 1707. DEFINITIONS.
``In this part:
``(1) Advanced placement test.--The term `advanced placement
test' means an advanced placement test administered by the College
Board or approved by the Secretary.
``(2) High concentration of low-income students.--The term
`high concentration of low-income students', used with respect to a
school, means a school that serves a student population 40 percent
or more of whom are low-income individuals.
``(3) Low-income individual.--The term `low-income individual'
means an individual who is determined by a State educational agency
or local educational agency to be a child, ages 5 through 17, from
a low-income family, on the basis of data used by the Secretary to
determine allocations under section 1124 of this Act, data on
children eligible for free or reduced-price lunches under the
National School Lunch Act, data on children in families receiving
assistance under part A of title IV of the Social Security Act, or
data on children eligible to receive medical assistance under the
medicaid program under title XIX of the Social Security Act, or
through an alternate method that combines or extrapolates from
those data.
``PART H--SCHOOL DROPOUT PREVENTION
``SEC. 1801. SHORT TITLE.
``This part may be cited as the `Dropout Prevention Act'.
``SEC. 1802. PURPOSE.
``The purpose of this part is to provide for school dropout
prevention and reentry and to raise academic achievement levels by
providing grants that--
``(1) challenge all children to attain their highest academic
potential; and
``(2) ensure that all students have substantial and ongoing
opportunities to attain their highest academic potential through
schoolwide programs proven effective in school dropout prevention
and reentry.
``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this part, there are authorized
to be appropriated $125,000,000 for fiscal year 2002 and such sums as
may be necessary for each of the 5 succeeding fiscal years, of which--
``(1) 10 percent shall be available to carry out subpart 1 for
each fiscal year; and
``(2) 90 percent shall be available to carry out subpart 2 for
each fiscal year.
``Subpart 1--Coordinated National Strategy
``SEC. 1811. NATIONAL ACTIVITIES.
``(a) In General.--The Secretary is authorized--
``(1) to collect systematic data on the effectiveness of the
programs assisted under this part in reducing school dropout rates
and increasing school reentry and secondary school graduation
rates;
``(2) to establish a national clearinghouse of information on
effective school dropout prevention and reentry programs that shall
disseminate to State educational agencies, local educational
agencies, and schools--
``(A) the results of research on school dropout prevention
and reentry; and
``(B) information on effective programs, best practices,
and Federal resources to--
``(i) reduce annual school dropout rates;
``(ii) increase school reentry; and
``(iii) increase secondary school graduation rates;
``(3) to provide technical assistance to State educational
agencies, local educational agencies, and schools in designing and
implementing programs and securing resources to implement effective
school dropout prevention and reentry programs;
``(4) to establish and consult with an interagency working
group that shall--
``(A) address inter- and intra-agency program coordination
issues at the Federal level with respect to school dropout
prevention and reentry, and assess the targeting of existing
Federal services to students who are most at risk of dropping
out of school, and the cost-effectiveness of various programs
and approaches used to address school dropout prevention and
reentry;
``(B) describe the ways in which State educational agencies
and local educational agencies can implement effective school
dropout prevention and reentry programs using funds from a
variety of Federal programs, including the programs under this
part; and
``(C) examine Federal programs that may have a positive
impact on secondary school graduation or school reentry;
``(5) to carry out a national recognition program in accordance
with subsection (b) that recognizes schools that have made
extraordinary progress in lowering school dropout rates; and
``(6) to use funds made available for this subpart to carry out
the evaluation required under section 1830(c).
``(b) Recognition Program.--
``(1) Establishment.--The Secretary shall--
``(A) establish a national recognition program; and
``(B) develop uniform national guidelines for the
recognition program that shall be used to recognize eligible
schools from nominations submitted by State educational
agencies.
``(2) Recognition.--The Secretary shall recognize, under the
recognition program established under paragraph (1), eligible
schools.
``(3) Support.--The Secretary may make monetary awards to an
eligible school recognized under this subsection in amounts
determined appropriate by the Secretary that shall be used for
dissemination activities within the eligible school district or
nationally.
``(4) Definition of eligible school.--In this subsection, the
term `eligible school' means a public middle school or secondary
school, including a charter school, that has implemented
comprehensive reforms that have been effective in lowering school
dropout rates for all students--
``(A) in that secondary school or charter school; or
``(B) in the case of a middle school, in the secondary
school that the middle school feeds students into.
``(c) Capacity Building.--
``(1) In general.--The Secretary, through a contract with 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.--
``(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. 1821. DEFINITIONS.
``In this subpart:
``(1) Low-income student.--The term `low-income student' means
a student who is determined by a local educational agency to be
from a low-income family using the measures described in section
1113(c).
``(2) State.--The term `State' means each of the several States
of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, and the
Bureau of Indian Affairs for purposes of serving schools funded by
the Bureau.
``SEC. 1822. PROGRAM AUTHORIZED.
``(a) Grants to State Educational Agencies and Local Educational
Agencies.--
``(1) Amount less than $75,000,000.--
``(A) In general.--If the amount appropriated under section
1803 for a fiscal year equals or is less than $75,000,000, then
the Secretary shall use such amount to award grants, on a
competitive basis, to--
``(i) State educational agencies to support
activities--
``(I) in schools that--
``(aa) serve students in grades 6 through 12;
and
``(bb) have annual school dropout rates that
are above the State average annual school dropout
rate; or
``(II) in the middle schools that feed students
into the schools described in subclause (I); or
``(ii) local educational agencies that operate--
``(I) schools that--
``(aa) serve students in grades 6 through 12;
and
``(bb) have annual school dropout rates that
are above the State average annual school dropout
rate; or
``(II) middle schools that feed students into the
schools described in subclause (I).
``(B) Use of grant funds.--Grant funds awarded under this
paragraph shall be used to fund effective, sustainable, and
coordinated school dropout prevention and reentry programs that
may include the activities described in subsection (b)(2), in--
``(i) schools serving students in grades 6 through 12
that have annual school dropout rates that are above the
State average annual school dropout rate; or
``(ii) the middle schools that feed students into the
schools described in clause (i).
``(2) Amount less than $250,000,000 but more than
$75,000,000.--If the amount appropriated under section 1803 for a
fiscal year is less than $250,000,000 but more than $75,000,000,
then the Secretary shall use such amount to award grants, on a
competitive basis, to State educational agencies to enable the
State educational agencies to award subgrants under subsection (b).
``(3) Amount equal to or exceeds $250,000,000.--If the amount
appropriated under section 1803 for a fiscal year equals or exceeds
$250,000,000, then the Secretary shall use such amount to award a
grant to each State educational agency in an amount that bears the
same relation to such appropriated amount as the amount the State
educational agency received under part A for the preceding fiscal
year bears to the amount received by all State educational agencies
under such part for the preceding fiscal year, to enable the State
educational agency to award subgrants under subsection (b).
``(b) Subgrants to Local Educational Agencies.--
``(1) In general.--From amounts made available to a State
educational agency under paragraph (2) or (3) of subsection (a),
the State educational agency shall award subgrants, on a
competitive basis, to local educational agencies that operate
public schools that serve students in grades 6 through 12 and that
have annual school dropout rates that are above the State average
annual school dropout rate, to enable those schools, or the middle
schools that feed students into those schools, to implement
effective, sustainable, and coordinated school dropout prevention
and reentry programs that involve activities such as--
``(A) professional development;
``(B) obtaining curricular materials;
``(C) release time for professional staff to obtain
professional development;
``(D) planning and research;
``(E) remedial education;
``(F) reduction in pupil-to-teacher ratios;
``(G) efforts to meet State student academic achievement
standards;
``(H) counseling and mentoring for at-risk students;
``(I) implementing comprehensive school reform models, such
as creating smaller learning communities; and
``(J) school reentry activities.
``(2) Amount.--Subject to paragraph (3), a subgrant under this
subpart shall be awarded--
``(A) in the first year that a local educational agency
receives a subgrant payment under this subpart, in an amount
that is based on factors such as--
``(i) the size of schools operated by the local
educational agency;
``(ii) costs of the model or set of prevention and
reentry strategies being implemented; and
``(iii) local cost factors such as poverty rates;
``(B) in the second year, in an amount that is not less
than 75 percent of the amount the local educational agency
received under this subpart in the first such year;
``(C) in the third year, in an amount that is not less than
50 percent of the amount the local educational agency received
under this subpart in the first such year; and
``(D) in each succeeding year, in an amount that is not
less than 30 percent of the amount the local educational agency
received under this subpart in the first year.
``(3) Duration.--A subgrant under this subpart shall be awarded
for a period of 3 years, and may be continued for a period of 2
additional years if the State educational agency determines, based
on the annual reports described in section 1830(a), that
significant progress has been made in lowering the annual school
dropout rate for secondary schools participating in the program
assisted under this subpart.
``SEC. 1823. APPLICATIONS.
``(a) In General.--To receive--
``(1) a grant under this subpart, a State educational agency or
local educational agency shall submit an application and plan to
the Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require; and
``(2) a subgrant under this subpart, a local educational agency
shall submit an application and plan to the State educational
agency at such time, in such manner, and accompanied by such
information as the State educational agency may reasonably require.
``(b) Contents.--
``(1) State educational agency and local educational agency.--
Each application and plan submitted under subsection (a) shall--
``(A) include an outline--
``(i) of the State educational agency's or local
educational agency's strategy for reducing the State
educational agency or local educational agency's annual
school dropout rate;
``(ii) for targeting secondary schools, and the middle
schools that feed students into those secondary schools,
that have the highest annual school dropout rates; and
``(iii) for assessing the effectiveness of the efforts
described in the plan;
``(B) contain an identification of the schools in the State
or operated by the local educational agency that have annual
school dropout rates that are greater than the average annual
school dropout rate for the State;
``(C) describe the instructional strategies to be
implemented, how the strategies will serve all students, and
the effectiveness of the strategies;
``(D) describe a budget and timeline for implementing the
strategies;
``(E) contain evidence of coordination with existing
resources;
``(F) provide an assurance that funds provided under this
subpart will supplement, and not supplant, other State and
local funds available for school dropout prevention and reentry
programs; and
``(G) describe how the activities to be assisted conform
with research knowledge about school dropout prevention and
reentry.
``(2) Local educational agency.--Each application and plan
submitted under subsection (a) by a local educational agency shall
contain, in addition to the requirements of paragraph (1)--
``(A) an assurance that the local educational agency is
committed to providing ongoing operational support for such
schools to address the problem of school dropouts for a period
of 5 years; and
``(B) an assurance that the local educational agency will
support the plan, including--
``(i) provision of release time for teacher training;
``(ii) efforts to coordinate activities for secondary
schools and the middle schools that feed students into
those secondary schools; and
``(iii) encouraging other schools served by the local
educational agency to participate in the plan.
``SEC. 1824. STATE RESERVATION.
``A State educational agency that receives a grant under paragraph
(2) or (3) of section 1822(a) may reserve not more than 5 percent of
the grant funds for administrative costs and State activities related
to school dropout prevention and reentry activities, of which not more
than 2 percent of the grant funds may be used for administrative costs.
``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.
``Each local educational agency receiving a grant or subgrant under
this subpart and each State educational agency receiving a grant under
this subpart shall implement scientifically based, sustainable, and
widely replicated strategies for school dropout prevention and reentry.
The strategies may include--
``(1) specific strategies for targeted purposes, such as--
``(A) effective early intervention programs designed to
identify at-risk students;
``(B) effective programs serving at-risk students,
including racial and ethnic minorities and pregnant and
parenting teenagers, designed to prevent such students from
dropping out of school; and
``(C) effective programs to identify and encourage youth
who have already dropped out of school to reenter school and
complete their secondary education; and
``(2) approaches such as breaking larger schools down into
smaller learning communities and other comprehensive reform
approaches, creating alternative school programs, and developing
clear linkages to career skills and employment.
``SEC. 1826. SELECTION OF LOCAL EDUCATIONAL AGENCIES FOR SUBGRANTS.
``(a) State Educational Agency Review and Award.--The State
educational agency shall review applications submitted under section
1823(a)(2) and award subgrants to local educational agencies with the
assistance and advice of a panel of experts on school dropout
prevention and reentry.
``(b) Eligibility.--A local educational agency is eligible to
receive a subgrant under this subpart if the local educational agency
operates a public school (including a public alternative school)--
``(1) that is eligible to receive assistance under part A; and
``(2)(A) that serves students 50 percent or more of whom are
low-income students; or
``(B) in which a majority of the students come from feeder
schools that serve students 50 percent or more of whom are low-
income students.
``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.
``A local educational agency that receives a grant or subgrant
under this subpart and a State educational agency that receives a grant
under this subpart may use the funds to secure necessary services from
a community-based organization or other government agency if the funds
are used to provide school dropout prevention and reentry activities
related to schoolwide efforts.
``SEC. 1828. TECHNICAL ASSISTANCE.
``Notwithstanding any other provision of law, each local
educational agency that receives funds under this subpart shall use the
funds to provide technical assistance to secondary schools served by
the agency that have not made progress toward lowering annual school
dropout rates after receiving assistance under this subpart for 2
fiscal years.
``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.
``For purposes of calculating an annual school dropout rate under
this subpart, a school shall use the annual event school dropout rate
for students leaving a school in a single year determined in accordance
with the National Center for Education Statistics' Common Core of Data.
``SEC. 1830. REPORTING AND ACCOUNTABILITY.
``(a) Local Educational Agency Reports.--
``(1) In general.--To receive funds under this subpart for a
fiscal year after the first fiscal year that a local educational
agency receives funds under this subpart, the local educational
agency shall provide, on an annual basis, a report regarding the
status of the implementation of activities funded under this
subpart, and the dropout data for students at schools assisted
under this subpart, disaggregated by race and ethnicity, to the--
``(A) Secretary, if the local educational agency receives a
grant under section 1822(a)(1); or
``(B) State educational agency, if the local educational
agency receives a subgrant under paragraph (2) or (3) of
section 1822(a).
``(2) Dropout data.--The dropout data under paragraph (1) shall
include annual school dropout rates for each fiscal year, starting
with the 2 fiscal years before the local educational agency
received funds under this subpart.
``(b) State Report on Program Activities.--Each State educational
agency receiving funds under this subpart shall provide to the
Secretary, at such time and in such format as the Secretary may
require, information on the status of the implementation of activities
funded under this subpart and outcome data for students in schools
assisted under this subpart.
``(c) Accountability.--The Secretary shall evaluate the effect of
the activities assisted under this subpart on school dropout prevention
compared, if feasible, to a control group using control procedures. The
Secretary may use funds appropriated for subpart 1 to carry out this
evaluation.
``PART I--GENERAL PROVISIONS
``SEC. 1901. FEDERAL REGULATIONS.
``(a) In General.--The Secretary may issue such regulations as are
necessary to reasonably ensure that there is compliance with this
title.
``(b) Negotiated Rulemaking Process.--
``(1) In general.--Before publishing in the Federal Register
proposed regulations to carry out this title, the Secretary shall
obtain the advice and recommendations of representatives of
Federal, State, and local administrators, parents, teachers,
paraprofessionals, and members of local school boards and other
organizations involved with the implementation and operation of
programs under this title.
``(2) Meetings and electronic exchange.--Such advice and
recommendations may be obtained through such mechanisms as regional
meetings and electronic exchanges of information.
``(3) Proposed regulations.--After obtaining such advice and
recommendations, and before publishing proposed regulations, the
Secretary shall--
``(A) establish a negotiated rulemaking process on, at a
minimum, standards and assessments;
``(B) select individuals to participate in such process
from among individuals or groups that provided advice and
recommendations, including representation from all geographic
regions of the United States, in such numbers as will provide
an equitable balance between representatives of parents and
students and representatives of educators and education
officials; and
``(C) prepare a draft of proposed policy options that shall
be provided to the individuals selected by the Secretary under
subparagraph (B) not less than 15 days before the first meeting
under such process.
``(4) Process.--Such process--
``(A) shall be conducted in a timely manner to ensure that
final regulations are issued by the Secretary not later than 1
year after the date of enactment of the No Child Left Behind
Act of 2001; and
``(B) shall not be subject to the Federal Advisory
Committee Act, but shall otherwise follow the provisions of the
Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
``(5) Emergency situation.--In an emergency situation in which
regulations to carry out this title must be issued within a very
limited time to assist State educational agencies and local
educational agencies with the operation of a program under this
title, the Secretary may issue proposed regulations without
following such process but shall, immediately thereafter and before
issuing final regulations, conduct regional meetings to review such
proposed regulations.
``(c) Limitation.--Regulations to carry out this part may not
require local programs to follow a particular instructional model, such
as the provision of services outside the regular classroom or school
program.
``SEC. 1902. AGREEMENTS AND RECORDS.
``(a) Agreements.--All published proposed regulations shall conform
to agreements that result from negotiated rulemaking described in
section 1901 unless the Secretary reopens the negotiated rulemaking
process or provides a written explanation to the participants involved
in the process explaining why the Secretary decided to depart from, and
not adhere to, such agreements.
``(b) Records.--The Secretary shall ensure that an accurate and
reliable record of agreements reached during the negotiations process
is maintained.
``SEC. 1903. STATE ADMINISTRATION.
``(a) Rulemaking.--
``(1) In general.--Each State that receives funds under this
title shall--
``(A) ensure that any State rules, regulations, and
policies relating to this title conform to the purposes of this
title and provide any such proposed rules, regulations, and
policies to the committee of practitioners created under
subsection (b) for review and comment;
``(B) minimize such rules, regulations, and policies to
which the State's local educational agencies and schools are
subject;
``(C) eliminate or modify State and local fiscal accounting
requirements in order to facilitate the ability of schools to
consolidate funds under schoolwide programs; and
``(D) identify any such rule, regulation, or policy as a
State-imposed requirement.
``(2) Support and facilitation.--State rules, regulations, and
policies under this title shall support and facilitate local
educational agency and school-level systemic reform designed to
enable all children to meet the challenging State student academic
achievement standards.
``(b) Committee of Practitioners.--
``(1) In general.--Each State educational agency that receives
funds under this title shall create a State committee of
practitioners to advise the State in carrying out its
responsibilities under this title.
``(2) Membership.--Each such committee shall include--
``(A) as a majority of its members, representatives from
local educational agencies;
``(B) administrators, including the administrators of
programs described in other parts of this title;
``(C) teachers, including vocational educators;
``(D) parents;
``(E) members of local school boards;
``(F) representatives of private school children; and
``(G) pupil services personnel.
``(3) Duties.--The duties of such committee shall include a
review, before publication, of any proposed or final State rule or
regulation pursuant to this title. In an emergency situation where
such rule or regulation must be issued within a very limited time
to assist local educational agencies with the operation of the
program under this title, the State educational agency may issue a
regulation without prior consultation, but shall immediately
thereafter convene the State committee of practitioners to review
the emergency regulation before issuance in final form.
``SEC. 1904. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.
``(a) Audits.--The Comptroller General of the United States shall
conduct audits of not less than 6 local educational agencies that
receive funds under part A in each fiscal year to determine more
clearly and specifically how local educational agencies are expending
such funds. Such audits--
``(1) shall be conducted in 6 local educational agencies that
represent the size, ethnic, economic, and geographic diversity of
local educational agencies; and
``(2) shall examine the extent to which funds have been
expended for academic instruction in the core curriculum and
activities unrelated to academic instruction in the core
curriculum, such as the payment of janitorial, utility, and other
maintenance services, the purchase and lease of vehicles, and the
payment for travel and attendance costs at conferences.
``(b) Report.--Not later than 3 months after the completion of the
audits under subsection (a) each year, the Comptroller General of the
United States shall submit a report on each audit to the Committee on
Education and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor and Pensions of the Senate.
``SEC. 1905. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR
CONTROL.
``Nothing in this title shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or control a
State, local educational agency, or school's specific instructional
content, academic achievement standards and assessments, curriculum, or
program of instruction.
``SEC. 1906. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.
``Nothing in this title shall be construed to mandate equalized
spending per pupil for a State, local educational agency, or school.
``SEC. 1907. STATE REPORT ON DROPOUT DATA.
``Not later than 1 year after a State educational agency receives
funds under this title, the agency shall report to the Secretary and
statewide, all school district data regarding annual school dropout
rates in the State disaggregated by race and ethnicity according to
procedures that conform with the National Center for Education
Statistics' Common Core of Data.
``SEC. 1908. REGULATIONS FOR SECTIONS 1111 AND 1116.
``The Secretary shall issue regulations for sections 1111 and 1116
not later than 6 months after the date of enactment of the No Child
Left Behind Act of 2001.''.
TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND
PRINCIPALS
SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.
Title II (20 U.S.C. 6601 et seq.) is amended to read as follows:
``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS
AND PRINCIPALS
``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND
``SEC. 2101. PURPOSE.
``The purpose of this part is to provide grants to State
educational agencies, local educational agencies, State agencies for
higher education, and eligible partnerships in order to--
``(1) increase student academic achievement through strategies
such as improving teacher and principal quality and increasing the
number of highly qualified teachers in the classroom and highly
qualified principals and assistant principals in schools; and
``(2) hold local educational agencies and schools accountable
for improvements in student academic achievement.
``SEC. 2102. DEFINITIONS.
``In this part:
``(1) Arts and sciences.--The term `arts and sciences' means--
``(A) when referring to an organizational unit of an
institution of higher education, any academic unit that offers
one or more academic majors in disciplines or content areas
corresponding to the academic subjects in which teachers teach;
and
``(B) when referring to a specific academic subject, the
disciplines or content areas in which an academic major is
offered by an organizational unit described in subparagraph
(A).
``(2) Charter school.--The term `charter school' has the
meaning given the term in section 5210.
``(3) High-need local educational agency.--The term `high-need
local educational agency' means a local educational agency--
``(A)(i) that serves not fewer than 10,000 children from
families with incomes below the poverty line; or
``(ii) for which not less than 20 percent of the children
served by the agency are from families with incomes below the
poverty line; and
``(B)(i) for which there is a high percentage of teachers
not teaching in the academic subjects or grade levels that the
teachers were trained to teach; or
``(ii) for which there is a high percentage of teachers
with emergency, provisional, or temporary certification or
licensing.
``(4) Highly qualified paraprofessional.--The term `highly
qualified paraprofessional' means a paraprofessional who has not
less than 2 years of--
``(A) experience in a classroom; and
``(B) postsecondary education or demonstrated competence in
a field or academic subject for which there is a significant
shortage of qualified teachers.
``(5) Out-of-field teacher.--The term `out-of-field teacher'
means a teacher who is teaching an academic subject or a grade
level for which the teacher is not highly qualified.
``(6) Principal.--The term `principal' includes an assistant
principal.
``SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) Grants to States, Local Educational Agencies, and Eligible
Partnerships.--There are authorized to be appropriated to carry out
this part (other than subpart 5) $3,175,000,000 for fiscal year 2002
and such sums as may be necessary for each of the 5 succeeding fiscal
years.
``(b) National Programs.--There are authorized to be appropriated
to carry out subpart 5 such sums as may be necessary for fiscal year
2002 and each of the 5 succeeding fiscal years.
``Subpart 1--Grants to States
``SEC. 2111. ALLOTMENTS TO STATES.
``(a) In General.--The Secretary shall make grants to States with
applications approved under section 2112 to pay for the Federal share
of the cost of carrying out the activities specified in section 2113.
Each grant shall consist of the allotment determined for a State under
subsection (b).
``(b) Determination of Allotments.--
``(1) Reservation of funds.--
``(A) In general.--From the total amount appropriated under
section 2103(a) for a fiscal year, the Secretary shall
reserve--
``(i) 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
``(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.
``SEC. 2112. STATE APPLICATIONS.
``(a) In General.--For a State to be eligible to receive a grant
under this part, the State educational agency shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(b) Contents.--Each application submitted under this section
shall include the following:
``(1) A description of how the activities to be carried out by
the State educational agency under this subpart will be based on a
review of scientifically based research and an explanation of why
the activities are expected to improve student academic
achievement.
``(2) A description of how the State educational agency will
ensure that a local educational agency receiving a subgrant to
carry out subpart 2 will comply with the requirements of such
subpart.
``(3) A description of how the State educational agency will
ensure that activities assisted under this subpart are aligned with
challenging State academic content and student academic achievement
standards, State assessments, and State and local curricula.
``(4) A description of how the State educational agency will
use funds under this part to improve the quality of the State's
teachers and principals.
``(5)(A) A description of how the State educational agency will
coordinate professional development activities authorized under
this part with professional development activities provided under
other Federal, State, and local programs.
``(B) A description of the comprehensive strategy that the
State educational agency will use, as part of such coordination
effort, to ensure that teachers are trained in the use of
technology so that technology and applications of technology are
effectively used in the classroom to improve teaching and learning
in all curricula and academic subjects, as appropriate.
``(6) A description of how the State educational agency will
encourage the development of proven, innovative strategies to
deliver intensive professional development programs that are both
cost-effective and easily accessible, such as strategies that
involve delivery through the use of technology, peer networks, and
distance learning.
``(7)(A) A description of how the State educational agency will
ensure compliance with the requirements for professional
development activities described in section 9101 and how the
activities to be carried out under the grant will be developed
collaboratively and based on the input of teachers, principals,
parents, administrators, paraprofessionals, and other school
personnel.
``(B) In the case of a State in which the State educational
agency is not the entity responsible for teacher professional
standards, certification, and licensing, an assurance that the
State activities carried out under this subpart are carried out in
conjunction with the entity responsible for such standards,
certification, and licensing under State law.
``(8) A description of how the State educational agency will
ensure that the professional development (including teacher
mentoring) needs of teachers will be met using funds under this
subpart and subpart 2.
``(9) A description of the State educational agency's annual
measurable objectives under section 1119(a)(2).
``(10) A description of how the State educational agency will
use funds under this part to meet the teacher and paraprofessional
requirements of section 1119 and how the State educational agency
will hold local educational agencies accountable for meeting the
annual measurable objectives described in section 1119(a)(2).
``(11) In the case of a State that has a charter school law
that exempts teachers from State certification and licensing
requirements, the specific portion of the State law that provides
for the exemption.
``(12) An assurance that the State educational agency will
comply with section 9501 (regarding participation by private school
children and teachers).
``(c) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this subpart.
``(d) Disapproval.--The Secretary shall not finally disapprove the
application, except after giving the State educational agency notice
and an opportunity for a hearing.
``(e) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this subpart, the
Secretary shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance and, in such notification, shall--
``(A) cite the specific provisions in the application that
are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(f) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (e)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the date
on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (c).
``(g) Failure To Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (e)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
``SEC. 2113. STATE USE OF FUNDS.
``(a) In General.--A State that receives a grant under section 2111
shall--
``(1) reserve 95 percent of the funds made available through
the grant to make subgrants to local educational agencies as
described in subpart 2;
``(2) reserve 2.5 percent (or, for a fiscal year described in
subsection (b), the percentage determined under subsection (b)) of
the funds to make subgrants to local partnerships as described in
subpart 3; and
``(3) use the remainder of the funds for State activities
described in subsection (c).
``(b) Special Rule.--For any fiscal year for which the total amount
that would be reserved by all States under subsection (a)(2), if the
States applied a 2.5 percentage rate, exceeds $125,000,000, the
Secretary shall determine an alternative percentage that the States
shall apply for that fiscal year under subsection (a)(2) so that the
total amount reserved by all States under subsection (a)(2) equals
$125,000,000.
``(c) State Activities.--The State educational agency for a State
that receives a grant under section 2111 shall use the funds described
in subsection (a)(3) to carry out one or more of the following
activities, which may be carried out through a grant or contract with a
for-profit or nonprofit entity:
``(1) Reforming teacher and principal certification (including
recertification) or licensing requirements to ensure that--
``(A)(i) teachers have the necessary subject matter
knowledge and teaching skills in the academic subjects that the
teachers teach; and
``(ii) principals have the instructional leadership skills
to help teachers teach and students learn;
``(B) teacher certification (including recertification) or
licensing requirements are aligned with challenging State
academic content standards; and
``(C) teachers have the subject matter knowledge and
teaching skills, including technology literacy, and principals
have the instructional leadership skills, necessary to help
students meet challenging State student academic achievement
standards.
``(2) Carrying out programs that provide support to teachers or
principals, including support for teachers and principals new to
their profession, such as programs that--
``(A) provide teacher mentoring, team teaching, reduced
class schedules, and intensive professional development; and
``(B) use standards or assessments for guiding beginning
teachers that are consistent with challenging State student
academic achievement standards and with the requirements for
professional development activities described in section 9101.
``(3) Carrying out programs that establish, expand, or improve
alternative routes for State certification of teachers and
principals, especially in the areas of mathematics and science, for
highly qualified individuals with a baccalaureate or master's
degree, including mid-career professionals from other occupations,
paraprofessionals, former military personnel, and recent college or
university graduates with records of academic distinction who
demonstrate the potential to become highly effective teachers or
principals.
``(4) Developing and implementing mechanisms to assist local
educational agencies and schools in effectively recruiting and
retaining highly qualified teachers, including specialists in core
academic subjects, principals, and pupil services personnel, except
that funds made available under this paragraph may be used for
pupil services personnel only--
``(A) if the State educational agency is making progress
toward meeting the annual measurable objectives described in
section 1119(a)(2); and
``(B) in a manner consistent with mechanisms to assist
local educational agencies and schools in effectively
recruiting and retaining highly qualified teachers and
principals.
``(5) Reforming tenure systems, implementing teacher testing
for subject matter knowledge, and implementing teacher testing for
State certification or licensing, consistent with title II of the
Higher Education Act of 1965.
``(6) Providing professional development for teachers and
principals and, in cases in which a State educational agency
determines support to be appropriate, supporting the participation
of pupil services personnel in the same type of professional
development activities as are made available to teachers and
principals.
``(7) Developing systems to measure the effectiveness of
specific professional development programs and strategies to
document gains in student academic achievement or increases in
teacher mastery of the academic subjects the teachers teach.
``(8) Fulfilling the State educational agency's
responsibilities concerning proper and efficient administration of
the programs carried out under this part, including provision of
technical assistance to local educational agencies.
``(9) Funding projects to promote reciprocity of teacher and
principal certification or licensing between or among States,
except that no reciprocity agreement developed under this paragraph
or developed using funds provided under this part may lead to the
weakening of any State teaching certification or licensing
requirement.
``(10) Developing or assisting local educational agencies in
the development and use of proven, innovative strategies to deliver
intensive professional development programs that are both cost-
effective and easily accessible, such as strategies that involve
delivery through the use of technology, peer networks, and distance
learning.
``(11) Encouraging and supporting the training of teachers and
administrators to effectively integrate technology into curricula
and instruction, including training to improve the ability to
collect, manage, and analyze data to improve teaching,
decisionmaking, school improvement efforts, and accountability.
``(12) Developing, or assisting local educational agencies in
developing, merit-based performance systems, and strategies that
provide differential and bonus pay for teachers in high-need
academic subjects such as reading, mathematics, and science and
teachers in high-poverty schools and districts.
``(13) Providing assistance to local educational agencies for
the development and implementation of professional development
programs for principals that enable the principals to be effective
school leaders and prepare all students to meet challenging State
academic content and student academic achievement standards, and
the development and support of school leadership academies to help
exceptionally talented aspiring or current principals and
superintendents become outstanding managers and educational
leaders.
``(14) Developing, or assisting local educational agencies in
developing, teacher advancement initiatives that promote
professional growth and emphasize multiple career paths (such as
paths to becoming a career teacher, mentor teacher, or exemplary
teacher) and pay differentiation.
``(15) Providing assistance to teachers to enable them to meet
certification, licensing, or other requirements needed to become
highly qualified by the end of the fourth year for which the State
receives funds under this part (as amended by the No Child Left
Behind Act of 2001).
``(16) Supporting activities that ensure that teachers are able
to use challenging State academic content standards and student
academic achievement standards, and State assessments, to improve
instructional practices and improve student academic achievement.
``(17) Funding projects and carrying out programs to encourage
men to become elementary school teachers.
``(18) Establishing and operating a center that--
``(A) serves as a statewide clearinghouse for the
recruitment and placement of kindergarten, elementary school,
and secondary school teachers; and
``(B) establishes and carries out programs to improve
teacher recruitment and retention within the State.
``(d) Administrative Costs.--A State educational agency or State
agency for higher education receiving a grant under this part may use
not more than 1 percent of the grant funds for planning and
administration related to carrying out activities under subsection (c)
and subpart 3.
``(e) Coordination.--A State that receives a grant to carry out
this subpart and a grant under section 202 of the Higher Education Act
of 1965 shall coordinate the activities carried out under this subpart
and the activities carried out under that section.
``(f) Supplement, Not Supplant.--Funds received under this subpart
shall be used to supplement, and not supplant, non-Federal funds that
would otherwise be used for activities authorized under this subpart.
``Subpart 2--Subgrants to Local Educational Agencies
``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Subgrants to Local Educational Agencies.--
``(1) In general.--The Secretary may make a grant to a State
under subpart 1 only if the State educational agency agrees to
distribute the funds described in this subsection as subgrants to
local educational agencies under this subpart.
``(2) Hold harmless.--
``(A) In general.--From the funds reserved by a State under
section 2113(a)(1), the State educational agency shall allocate
to each local educational agency in the State an amount equal
to the total amount that such agency received for fiscal year
2001 under--
``(i) section 2203(1)(B) of this Act (as in effect on
the day before the date of enactment of the No Child Left
Behind Act of 2001); and
``(ii) section 306 of the Department of Education
Appropriations Act, 2001 (as enacted into law by section
1(a)(1) of Public Law 106-554).
``(B) Nonparticipating agencies.--In the case of a local
educational agency that did not receive any funds for fiscal
year 2001 under one or both of the provisions referred to in
clauses (i) and (ii) of subparagraph (A), the amount allocated
to the agency under such subparagraph shall be the total amount
that the agency would have received for fiscal year 2001 if the
agency had elected to participate in all of the programs for
which the agency was eligible under each of the provisions
referred to in those clauses.
``(C) Ratable reduction.--If the funds described in
subparagraph (A) are insufficient to pay the full amounts that
all local educational agencies in the State are eligible to
receive under subparagraph (A) for any fiscal year, the State
educational agency shall ratably reduce such amounts for the
fiscal year.
``(3) Allocation of additional funds.--For any fiscal year for
which the funds reserved by a State under section 2113(a)(1) exceed
the total amount required to make allocations under paragraph (2),
the State educational agency shall allocate to each of the eligible
local educational agencies in the State the sum of--
``(A) an amount that bears the same relationship to 20
percent of the excess amount as the number of individuals age 5
through 17 in the geographic area served by the agency, as
determined by the Secretary on the basis of the most recent
satisfactory data, bears to the number of those individuals in
the geographic areas served by all the local educational
agencies in the State, as so determined; and
``(B) an amount that bears the same relationship to 80
percent of the excess amount as the number of individuals age 5
through 17 from families with incomes below the poverty line in
the geographic area served by the agency, as determined by the
Secretary on the basis of the most recent satisfactory data,
bears to the number of those individuals in the geographic
areas served by all the local educational agencies in the
State, as so determined.
``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.
``(a) In General.--To be eligible to receive a subgrant under this
subpart, a local educational agency shall submit an application to the
State educational agency at such time, in such manner, and containing
such information as the State educational agency may reasonably
require.
``(b) Contents.--Each application submitted under this section
shall be based on the needs assessment required in subsection (c) and
shall include the following:
``(1)(A) A description of the activities to be carried out by
the local educational agency under this subpart and how these
activities will be aligned with--
``(i) challenging State academic content standards and
student academic achievement standards, and State assessments;
and
``(ii) the curricula and programs tied to the standards
described in clause (i).
``(B) A description of how the activities will be based on a
review of scientifically based research and an explanation of why
the activities are expected to improve student academic
achievement.
``(2) A description of how the activities will have a
substantial, measurable, and positive impact on student academic
achievement and how the activities will be used as part of a
broader strategy to eliminate the achievement gap that separates
low-income and minority students from other students.
``(3) An assurance that the local educational agency will
target funds to schools within the jurisdiction of the local
educational agency that--
``(A) have the lowest proportion of highly qualified
teachers;
``(B) have the largest average class size; or
``(C) are identified for school improvement under section
1116(b).
``(4) A description of how the local educational agency will
coordinate professional development activities authorized under
this subpart with professional development activities provided
through other Federal, State, and local programs.
``(5) A description of the professional development activities
that will be made available to teachers and principals under this
subpart and how the local educational agency will ensure that the
professional development (which may include teacher mentoring)
needs of teachers and principals will be met using funds under this
subpart.
``(6) A description of how the local educational agency will
integrate funds under this subpart with funds received under part D
that are used for professional development to train teachers to
integrate technology into curricula and instruction to improve
teaching, learning, and technology literacy.
``(7) A description of how the local educational agency,
teachers, paraprofessionals, principals, other relevant school
personnel, and parents have collaborated in the planning of
activities to be carried out under this subpart and in the
preparation of the application.
``(8) A description of the results of the needs assessment
described in subsection (c).
``(9) A description of how the local educational agency will
provide training to enable teachers to--
``(A) teach and address the needs of students with
different learning styles, particularly students with
disabilities, students with special learning needs (including
students who are gifted and talented), and students with
limited English proficiency;
``(B) improve student behavior in the classroom and
identify early and appropriate interventions to help students
described in subparagraph (A) learn;
``(C) involve parents in their child's education; and
``(D) understand and use data and assessments to improve
classroom practice and student learning.
``(10) A description of how the local educational agency will
use funds under this subpart to meet the requirements of section
1119.
``(11) An assurance that the local educational agency will
comply with section 9501 (regarding participation by private school
children and teachers).
``(c) Needs Assessment.--
``(1) In general.--To be eligible to receive a subgrant under
this subpart, a local educational agency shall conduct an
assessment of local needs for professional development and hiring,
as identified by the local educational agency and school staff.
``(2) Requirements.--Such needs assessment shall be conducted
with the involvement of teachers, including teachers participating
in programs under part A of title I, and shall take into account
the activities that need to be conducted in order to give teachers
the means, including subject matter knowledge and teaching skills,
and to give principals the instructional leadership skills to help
teachers, to provide students with the opportunity to meet
challenging State and local student academic achievement standards.
``SEC. 2123. LOCAL USE OF FUNDS.
``(a) In General.--A local educational agency that receives a
subgrant under section 2121 shall use the funds made available through
the subgrant to carry out one or more of the following activities,
including carrying out the activities through a grant or contract with
a for-profit or nonprofit entity:
``(1) Developing and implementing mechanisms to assist schools
in effectively recruiting and retaining highly qualified teachers,
including specialists in core academic subjects, principals, and
pupil services personnel, except that funds made available under
this paragraph may be used for pupil services personnel only--
``(A) if the local educational agency is making progress
toward meeting the annual measurable objectives described in
section 1119(a)(2); and
``(B) in a manner consistent with mechanisms to assist
schools in effectively recruiting and retaining highly
qualified teachers and principals.
``(2) Developing and implementing initiatives to assist in
recruiting highly qualified teachers (particularly initiatives that
have proven effective in retaining highly qualified teachers), and
hiring highly qualified teachers, who will be assigned teaching
positions within their fields, including--
``(A) providing scholarships, signing bonuses, or other
financial incentives, such as differential pay, for teachers to
teach--
``(i) in academic subjects in which there exists a
shortage of highly qualified teachers within a school or
within the local educational agency; and
``(ii) in schools in which there exists a shortage of
highly qualified teachers;
``(B) recruiting and hiring highly qualified teachers to
reduce class size, particularly in the early grades; and
``(C) establishing programs that--
``(i) train and hire regular and special education
teachers (which may include hiring special education
teachers to team-teach in classrooms that contain both
children with disabilities and nondisabled children);
``(ii) train and hire highly qualified teachers of
special needs children, as well as teaching specialists in
core academic subjects who will provide increased
individualized instruction to students;
``(iii) recruit qualified professionals from other
fields, including highly qualified paraprofessionals, and
provide such professionals with alternative routes to
teacher certification, including developing and
implementing hiring policies that ensure comprehensive
recruitment efforts as a way to expand the applicant pool,
such as through identifying teachers certified through
alternative routes, and using a system of intensive
screening designed to hire the most qualified applicants;
and
``(iv) provide increased opportunities for minorities,
individuals with disabilities, and other individuals
underrepresented in the teaching profession.
``(3) Providing professional development activities--
``(A) that improve the knowledge of teachers and principals
and, in appropriate cases, paraprofessionals, concerning--
``(i) one or more of the core academic subjects that
the teachers teach; and
``(ii) effective instructional strategies, methods, and
skills, and use of challenging State academic content
standards and student academic achievement standards, and
State assessments, to improve teaching practices and
student academic achievement; and
``(B) that improve the knowledge of teachers and principals
and, in appropriate cases, paraprofessionals, concerning
effective instructional practices and that--
``(i) involve collaborative groups of teachers and
administrators;
``(ii) provide training in how to teach and address the
needs of students with different learning styles,
particularly students with disabilities, students with
special learning needs (including students who are gifted
and talented), and students with limited English
proficiency;
``(iii) provide training in methods of--
``(I) improving student behavior in the classroom;
and
``(II) identifying early and appropriate
interventions to help students described in clause (ii)
learn;
``(iv) provide training to enable teachers and
principals to involve parents in their child's education,
especially parents of limited English proficient and
immigrant children; and
``(v) provide training on how to understand and use
data and assessments to improve classroom practice and
student learning.
``(4) Developing and implementing initiatives to promote
retention of highly qualified teachers and principals, particularly
within elementary schools and secondary schools with a high
percentage of low-achieving students, including programs that
provide--
``(A) teacher mentoring from exemplary teachers,
principals, or superintendents;
``(B) induction and support for teachers and principals
during their first 3 years of employment as teachers or
principals, respectively;
``(C) incentives, including financial incentives, to retain
teachers who have a record of success in helping low-achieving
students improve their academic achievement; or
``(D) incentives, including financial incentives, to
principals who have a record of improving the academic
achievement of all students, but particularly students from
economically disadvantaged families, students from racial and
ethnic minority groups, and students with disabilities.
``(5) Carrying out programs and activities that are designed to
improve the quality of the teacher force, such as--
``(A) innovative professional development programs (which
may be provided through partnerships including institutions of
higher education), including programs that train teachers and
principals to integrate technology into curricula and
instruction to improve teaching, learning, and technology
literacy, are consistent with the requirements of section 9101,
and are coordinated with activities carried out under part D;
``(B) development and use of proven, cost-effective
strategies for the implementation of professional development
activities, such as through the use of technology and distance
learning;
``(C) tenure reform;
``(D) merit pay programs; and
``(E) testing of elementary school and secondary school
teachers in the academic subjects that the teachers teach.
``(6) Carrying out professional development activities designed
to improve the quality of principals and superintendents, including
the development and support of academies to help talented aspiring
or current principals and superintendents become outstanding
managers and educational leaders.
``(7) Hiring highly qualified teachers, including teachers who
become highly qualified through State and local alternative routes
to certification, and special education teachers, in order to
reduce class size, particularly in the early grades.
``(8) Carrying out teacher advancement initiatives that promote
professional growth and emphasize multiple career paths (such as
paths to becoming a career teacher, mentor teacher, or exemplary
teacher) and pay differentiation.
``(10) Carrying out programs and activities related to
exemplary teachers.
``(b) Supplement, Not Supplant.--Funds received under this subpart
shall be used to supplement, and not supplant, non-Federal funds that
would otherwise be used for activities authorized under this subpart.
``Subpart 3--Subgrants to Eligible Partnerships
``SEC. 2131. DEFINITIONS.
``In this subpart:
``(1) Eligible partnership.--The term `eligible partnership'
means an entity that--
``(A) shall include--
``(i) a private or State institution of higher
education and the division of the institution that prepares
teachers and principals;
``(ii) a school of arts and sciences; and
``(iii) a high-need local educational agency; and
``(B) may include another local educational agency, a
public charter school, an elementary school or secondary
school, an educational service agency, a nonprofit educational
organization, another institution of higher education, a school
of arts and sciences within such an institution, the division
of such an institution that prepares teachers and principals, a
nonprofit cultural organization, an entity carrying out a
prekindergarten program, a teacher organization, a principal
organization, or a business.
``(2) Low-performing school.--The term `low-performing school'
means an elementary school or secondary school that is identified
under section 1116.
``SEC. 2132. SUBGRANTS.
``(a) In General.--The State agency for higher education for a
State that receives a grant under section 2111, working in conjunction
with the State educational agency (if such agencies are separate),
shall use the funds reserved under section 2113(a)(2) to make
subgrants, on a competitive basis, to eligible partnerships to enable
such partnerships to carry out the activities described in section
2134.
``(b) Distribution.--The State agency for higher education shall
ensure that--
``(1) such subgrants are equitably distributed by geographic
area within a State; or
``(2) eligible partnerships in all geographic areas within the
State are served through the subgrants.
``(c) Special Rule.--No single participant in an eligible
partnership may use more than 50 percent of the funds made available to
the partnership under this section.
``SEC. 2133. APPLICATIONS.
``To be eligible to receive a subgrant under this subpart, an
eligible partnership shall submit an application to the State agency
for higher education at such time, in such manner, and containing such
information as the agency may require.
``SEC. 2134. USE OF FUNDS.
``(a) In General.--An eligible partnership that receives a subgrant
under section 2132 shall use the subgrant funds for--
``(1) professional development activities in core academic
subjects to ensure that--
``(A) teachers and highly qualified paraprofessionals, and,
if appropriate, principals have subject matter knowledge in the
academic subjects that the teachers teach, including the use of
computer related technology to enhance student learning; and
``(B) principals have the instructional leadership skills
that will help such principals work most effectively with
teachers to help students master core academic subjects; and
``(2) developing and providing assistance to local educational
agencies and individuals who are teachers, highly qualified
paraprofessionals, or principals of schools served by such
agencies, for sustained, high-quality professional development
activities that--
``(A) ensure that the individuals are able to use
challenging State academic content standards and student
academic achievement standards, and State assessments, to
improve instructional practices and improve student academic
achievement;
``(B) may include intensive programs designed to prepare
such individuals who will return to a school to provide
instruction related to the professional development described
in subparagraph (A) to other such individuals within such
school; and
``(C) may include activities of partnerships between one or
more local educational agencies, one or more schools served by
such local educational agencies, and one or more institutions
of higher education for the purpose of improving teaching and
learning at low-performing schools.
``(b) Coordination.--An eligible partnership that receives a
subgrant to carry out this subpart and a grant under section 203 of the
Higher Education Act of 1965 shall coordinate the activities carried
out under this subpart and the activities carried out under that
section 203.
``Subpart 4--Accountability
``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.
``(a) Improvement Plan.--After the second year of the plan
described in section 1119(a)(2), if a State educational agency
determines, based on the reports described in section 1119(b)(1), that
a local educational agency in the State has failed to make progress
toward meeting the annual measurable objectives described in section
1119(a)(2), for 2 consecutive years, such local educational agency
shall develop an improvement plan that will enable the agency to meet
such annual measurable objectives and that specifically addresses
issues that prevented the agency from meeting such annual measurable
objectives.
``(b) Technical Assistance.--During the development of the
improvement plan described in subsection (a) and throughout
implementation of the plan, the State educational agency shall--
``(1) provide technical assistance to the local educational
agency; and
``(2) provide technical assistance, if applicable, to schools
served by the local educational agency that need assistance to
enable the local educational agency to meet the annual measurable
objectives described in section 1119(a)(2).
``(c) Accountability.--After the third year of the plan described
in section 1119(a)(2), if the State educational agency determines,
based on the reports described in section 1119(b)(1), that the local
educational agency has failed to make progress toward meeting the
annual measurable objectives described in section 1119(a)(2), and has
failed to make adequate yearly progress as described under section
1111(b)(2)(B), for 3 consecutive years, the State educational agency
shall enter into an agreement with such local educational agency on the
use of that agency's funds under this part. As part of this agreement,
the State educational agency--
``(1) shall develop, in conjunction with the local educational
agency, teachers, and principals, professional development
strategies and activities, based on scientifically based research,
that the local educational agency will use to meet the annual
measurable objectives described in section 1119(a)(2) and require
such agency to utilize such strategies and activities; and
``(2)(A) except as provided in subparagraphs (B) and (C), shall
prohibit the use of funds received under part A of title I to fund
any paraprofessional hired after the date such determination is
made;
``(B) shall allow the use of such funds to fund a
paraprofessional hired after that date if the local educational
agency can demonstrate that the hiring is to fill a vacancy created
by the departure of another paraprofessional funded under title I
and such new paraprofessional satisfies the requirements of section
1119(c); and
``(C) may allow the use of such funds to fund a
paraprofessional hired after that date if the local educational
agency can demonstrate--
``(i) that a significant influx of population has
substantially increased student enrollment; or
``(ii) that there is an increased need for translators or
assistance with parental involvement activities.
``(d) Special Rule.--During the development of the strategies and
activities described in subsection (c)(1), the State educational agency
shall, in conjunction with the local educational agency, provide from
funds allocated to such local educational agency under subpart 2
directly to one or more schools served by such local educational
agency, to enable teachers at the schools to choose, with continuing
consultation with the principal involved, professional development
activities that--
``(1) meet the requirements for professional development
activities described in section 9101; and
``(2) are coordinated with other reform efforts at the schools.
``Subpart 5--National Activities
``SEC. 2151. NATIONAL ACTIVITIES OF DEMONSTRATED EFFECTIVENESS.
``(a) National Teacher Recruitment Campaign.--The Secretary is
authorized to establish and carry out a national teacher recruitment
campaign, which may include activities carried out through the National
Teacher Recruitment Clearinghouse, to assist high-need local
educational agencies in recruiting teachers (particularly those
activities that are effective in retaining new teachers) and training
teachers and to conduct a national public service campaign concerning
the resources for, and the routes to, entering the field of teaching.
In carrying out the campaign, the Secretary may promote and link the
activities of the campaign to the information and referral activities
of the National Teacher Recruitment Clearinghouse. The Secretary shall
coordinate activities under this subsection with State and regional
recruitment activities.
``(b) School Leadership.--
``(1) In general.--The Secretary is authorized to establish and
carry out a national principal recruitment program to assist high-
need local educational agencies in recruiting and training
principals (including assistant principals) through such activities
as--
``(A) providing financial incentives to aspiring new
principals;
``(B) providing stipends to principals who mentor new
principals;
``(C) carrying out professional development programs in
instructional leadership and management; and
``(D) providing incentives that are appropriate for
teachers or individuals from other fields who want to become
principals and that are effective in retaining new principals.
``(2) Grants.--If the Secretary uses sums made available under
section 2103(b) to carry out paragraph (1), the Secretary shall
carry out such paragraph by making grants, on a competitive basis,
to--
``(A) high-need local educational agencies;
``(B) consortia of high-need local educational agencies;
and
``(C) partnerships of high-need local educational agencies,
nonprofit organizations, and institutions of higher education.
``(c) Advanced Certification or Advanced Credentialing.--
``(1) In general.--The Secretary is authorized to support
activities to encourage and support teachers seeking advanced
certification or advanced credentialing through high quality
professional teacher enhancement programs designed to improve
teaching and learning.
``(2) Implementation.--In carrying out paragraph (1), the
Secretary shall make grants to eligible entities to--
``(A) develop teacher standards that include measures tied
to increased student academic achievement; and
``(B) promote outreach, teacher recruitment, teacher
subsidy, or teacher support programs, related to teacher
certification or credentialing by the National Board for
Professional Teaching Standards, the National Council on
Teacher Quality, or other nationally recognized certification
or credentialing organizations.
``(3) Eligible entities.--In this subsection, the term
`eligible entity' includes--
``(A) a State educational agency;
``(B) a local educational agency;
``(C) the National Board for Professional Teaching
Standards, in partnership with a high-need local educational
agency or a State educational agency;
``(D) the National Council on Teacher Quality, in
partnership with a high-need local educational agency or a
State educational agency; or
``(E) another recognized entity, including another
recognized certification or credentialing organization, in
partnership with a high-need local educational agency or a
State educational agency.
``(d) Special Education Teacher Training.--The Secretary is
authorized to award a grant to the University of Northern Colorado to
enable such university to provide, to other institutions of higher
education, assistance in training special education teachers.
``(e) Early Childhood Educator Professional Development.--
``(1) Purpose.--The purpose of this subsection is to enhance
the school readiness of young children, particularly disadvantaged
young children, and to prevent young children from encountering
difficulties once the children enter school, by improving the
knowledge and skills of early childhood educators who work in
communities that have high concentrations of children living in
poverty.
``(2) Program authorized.--
``(A) Grants to partnerships.--The Secretary is authorized
to carry out the purpose of this subsection by awarding grants,
on a competitive basis, to partnerships consisting of--
``(i)(I) one or more institutions of higher education
that provide professional development for early childhood
educators who work with children from low-income families
in high-need communities; or
``(II) another public or private entity that provides
such professional development;
``(ii) one or more public agencies (including local
educational agencies, State educational agencies, State
human services agencies, and State and local agencies
administering programs under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), Head
Start agencies, or private organizations; and
``(iii) to the extent feasible, an entity with
demonstrated experience in providing training to educators
in early childhood education programs concerning
identifying and preventing behavior problems or working
with children identified as or suspected to be victims of
abuse.
``(B) Duration and number of grants.--
``(i) Duration.--The Secretary shall award grants under
this subsection for periods of not more than 4 years.
``(ii) Number.--No partnership may receive more than
one grant under this subsection.
``(3) Applications.--
``(A) Applications required.--Any partnership that desires
to receive a grant under this subsection shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(B) Contents.--Each such application shall include--
``(i) a description of the high-need community to be
served by the project proposed to be carried out through
the grant, including such demographic and socioeconomic
information as the Secretary may request;
``(ii) information on the quality of the early
childhood educator professional development program
currently conducted (as of the date of the submission of
the application) by the institution of higher education or
another provider in the partnership;
``(iii) the results of a needs assessment that the
entities in the partnership have undertaken to determine
the most critical professional development needs of the
early childhood educators to be served by the partnership
and in the broader community, and a description of how the
proposed project will address those needs;
``(iv) a description of how the proposed project will
be carried out, including a description of--
``(I) how individuals will be selected to
participate;
``(II) the types of professional development
activities, based on scientifically based research,
that will be carried out;
``(III) how research on effective professional
development and on adult learning will be used to
design and deliver project activities;
``(IV) how the project will be coordinated with and
build on, and will not supplant or duplicate, early
childhood education professional development activities
in the high-need community;
``(V) how the project will train early childhood
educators to provide developmentally appropriate
school-readiness services that are based on the best
available research on early childhood pedagogy and
child development and learning domains;
``(VI) how the project will train early childhood
educators to meet the diverse educational needs of
children in the community, including children who have
limited English proficiency, children with
disabilities, or children with other special needs; and
``(VII) how the project will train early childhood
educators in identifying and preventing behavioral
problems in children or working with children
identified as or suspected to be victims of abuse;
``(v) a description of--
``(I) the specific objectives that the partnership
will seek to attain through the project, and the
methods that the partnership will use to measure
progress toward attainment of those objectives; and
``(II) how the objectives and the measurement
methods align with the achievement indicators
established by the Secretary under paragraph (6)(A);
``(vi) a description of the partnership's plan for
continuing the activities carried out under the project
after Federal funding ceases;
``(vii) an assurance that, where applicable, the
project will provide appropriate professional development
to volunteers working directly with young children, as well
as to paid staff; and
``(viii) an assurance that, in developing the
application and in carrying out the project, the
partnership has consulted with, and will consult with,
relevant agencies, early childhood educator organizations,
and early childhood providers that are not members of the
partnership.
``(4) Selection of grant recipients.--
``(A) Criteria.--The Secretary shall select partnerships to
receive grants under this subsection on the basis of the degree
to which the communities proposed to be served require
assistance and the quality of the applications submitted under
paragraph (3).
``(B) Geographic distribution.--In selecting partnerships
to receive grants under this subsection, the Secretary shall
seek to ensure that communities in different regions of the
Nation, as well as both urban and rural communities, are
served.
``(5) Uses of funds.--
``(A) In general.--Each partnership receiving a grant under
this subsection shall use the grant funds to carry out
activities that will improve the knowledge and skills of early
childhood educators who are working in early childhood programs
that are located in high-need communities and serve
concentrations of children from low-income families.
``(B) Allowable activities.--Such activities may include--
``(i) professional development for early childhood
educators, particularly to familiarize those educators with
the application of recent research on child, language, and
literacy development and on early childhood pedagogy;
``(ii) professional development for early childhood
educators in working with parents, so that the educators
and parents can work together to provide and support
developmentally appropriate school-readiness services that
are based on scientifically based research on early
childhood pedagogy and child development and learning
domains;
``(iii) professional development for early childhood
educators to work with children who have limited English
proficiency, children with disabilities, and children with
other special needs;
``(iv) professional development to train early
childhood educators in identifying and preventing
behavioral problems in children or working with children
identified as or suspected to be victims of abuse;
``(v) activities that assist and support early
childhood educators during their first 3 years in the
field;
``(vi) development and implementation of early
childhood educator professional development programs that
make use of distance learning and other technologies;
``(vii) professional development activities related to
the selection and use of screening and diagnostic
assessments to improve teaching and learning; and
``(viii) data collection, evaluation, and reporting
needed to meet the requirements of paragraph (6) relating
to accountability.
``(6) Accountability.--
``(A) Achievement indicators.--On the date on which the
Secretary first issues a notice soliciting applications for
grants under this subsection, the Secretary shall announce
achievement indicators for this subsection, which shall be
designed--
``(i) to measure the quality and accessibility of the
professional development provided;
``(ii) to measure the impact of that professional
development on the early childhood education provided by
the individuals who receive the professional development;
and
``(iii) to provide such other measures of program
impact as the Secretary determines to be appropriate.
``(B) Annual reports; termination.--
``(i) Annual reports.--Each partnership receiving a
grant under this subsection shall report annually to the
Secretary on the partnership's progress toward attaining
the achievement indicators.
``(ii) Termination.--The Secretary may terminate a
grant under this subsection at any time if the Secretary
determines that the partnership receiving the grant is not
making satisfactory progress toward attaining the
achievement indicators.
``(7) Cost-sharing.--
``(A) In general.--Each partnership carrying out a project
through a grant awarded under this subsection shall provide,
from sources other than the program carried out under this
subsection, which may include Federal sources--
``(i) at least 50 percent of the total cost of the
project for the grant period; and
``(ii) at least 20 percent of the project cost for each
year.
``(B) Acceptable contributions.--A partnership may meet the
requirements of subparagraph (A) by providing contributions in
cash or in kind, fairly evaluated, including plant, equipment,
and services.
``(C) Waivers.--The Secretary may waive or modify the
requirements of subparagraph (A) for partnerships in cases of
demonstrated financial hardship.
``(8) Federal coordination.--The Secretary and the Secretary of
Health and Human Services shall coordinate activities carried out
through programs under this subsection with activities carried out
through other early childhood programs administered by the
Secretary or the Secretary of Health and Human Services.
``(9) Definitions.--In this subsection:
``(A) Early childhood educator.--The term `early childhood
educator' means a person providing, or employed by a provider
of, nonresidential child care services (including center-based,
family-based, and in-home child care services) that is legally
operating under State law, and that complies with applicable
State and local requirements for the provision of child care
services to children at any age from birth through the age at
which a child may start kindergarten in that State.
``(B) High-need community.--
``(i) In general.--The term `high-need community'
means--
``(I) a political subdivision of a State, or a
portion of a political subdivision of a State, in which
at least 50 percent of the children are from low-income
families; or
``(II) a political subdivision of a State that is
among the 10 percent of political subdivisions of the
State having the greatest numbers of such children.
``(ii) Determination.--In determining which communities
are described in clause (i), the Secretary shall use such
data as the Secretary determines are most accurate and
appropriate.
``(C) Low-income family.--The term `low-income family'
means a family with an income below the poverty line for the
most recent fiscal year for which satisfactory data are
available.
``(f) Teacher Mobility.--
``(1) Establishment.--The Secretary is authorized to establish
a panel to be known as the National Panel on Teacher Mobility
(referred to in this subsection as the `panel').
``(2) Membership.--The panel shall be composed of 12 members
appointed by the Secretary. The Secretary shall appoint the members
from among practitioners and experts with experience relating to
teacher mobility, such as teachers, members of teacher
certification or licensing bodies, faculty of institutions of
higher education that prepare teachers, and State policymakers with
such experience.
``(3) Period of appointment; vacancies.--Members shall be
appointed for the life of the panel. Any vacancy in the panel shall
not affect the powers of the panel, but shall be filled in the same
manner as the original appointment.
``(4) Duties.--
``(A) Study.--
``(i) In general.--The panel shall study strategies for
increasing mobility and employment opportunities for highly
qualified teachers, especially for States with teacher
shortages and States with school districts or schools that
are difficult to staff.
``(ii) Data and analysis.--As part of the study, the
panel shall evaluate the desirability and feasibility of
State initiatives that support teacher mobility by
collecting data and conducting effective analysis
concerning--
``(I) teacher supply and demand;
``(II) the development of recruitment and hiring
strategies that support teachers; and
``(III) increasing reciprocity of certification and
licensing across States.
``(B) Report.--Not later than 1 year after the date on
which all members of the panel have been appointed, the panel
shall submit to the Secretary and to the appropriate committees
of Congress a report containing the results of the study.
``(5) Powers.--
``(A) Hearings.--The panel may hold such hearings, sit and
act at such times and places, take such testimony, and receive
such evidence as the panel considers advisable to carry out the
objectives of this subsection.
``(B) Information from federal agencies.--The panel may
secure directly from any Federal department or agency such
information as the panel considers necessary to carry out the
provisions of this subsection. Upon request of a majority of
the members of the panel, the head of such department or agency
shall furnish such information to the panel.
``(C) Postal services.--The panel may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the Federal Government.
``(6) Personnel.--
``(A) Travel expenses.--The members of the panel shall not
receive compensation for the performance of services for the
panel, but shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places of
business in the performance of services for the panel.
Notwithstanding section 1342 of title 31, United States Code,
the Secretary may accept the voluntary and uncompensated
services of members of the panel.
``(B) Detail of government employees.--Any Federal
Government employee may be detailed to the panel without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
``(7) Permanent committee.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the panel.
``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS
``SEC. 2201. PURPOSE; DEFINITIONS.
``(a) Purpose.--The purpose of this part is to improve the academic
achievement of students in the areas of mathematics and science by
encouraging State educational agencies, institutions of higher
education, local educational agencies, elementary schools, and
secondary schools to participate in programs that--
``(1) improve and upgrade the status and stature of mathematics
and science teaching by encouraging institutions of higher
education to assume greater responsibility for improving
mathematics and science teacher education through the establishment
of a comprehensive, integrated system of recruiting, training, and
advising mathematics and science teachers;
``(2) focus on the education of mathematics and science
teachers as a career-long process that continuously stimulates
teachers' intellectual growth and upgrades teachers' knowledge and
skills;
``(3) bring mathematics and science teachers in elementary
schools and secondary schools together with scientists,
mathematicians, and engineers to increase the subject matter
knowledge of mathematics and science teachers and improve such
teachers' teaching skills through the use of sophisticated
laboratory equipment and work space, computing facilities,
libraries, and other resources that institutions of higher
education are better able to provide than the elementary schools
and secondary schools;
``(4) develop more rigorous mathematics and science curricula
that are aligned with challenging State and local academic content
standards and with the standards expected for postsecondary study
in engineering, mathematics, and science; and
``(5) improve and expand training of mathematics and science
teachers, including training such teachers in the effective
integration of technology into curricula and instruction.
``(b) Definitions.--In this part:
``(1) Eligible partnership.--The term `eligible partnership'
means a partnership that--
``(A) shall include--
``(i) if grants are awarded under section 2202(a)(1), a
State educational agency;
``(ii) an engineering, mathematics, or science
department of an institution of higher education; and
``(iii) a high-need local educational agency; and
``(B) may include--
``(i) another engineering, mathematics, science, or
teacher training department of an institution of higher
education;
``(ii) additional local educational agencies, public
charter schools, public or private elementary schools or
secondary schools, or a consortium of such schools;
``(iii) a business; or
``(iv) a nonprofit or for-profit organization of
demonstrated effectiveness in improving the quality of
mathematics and science teachers.
``(2) Summer workshop or institute.--The term `summer workshop
or institute' means a workshop or institute, conducted during the
summer, that--
``(A) is conducted for a period of not less than 2 weeks;
``(B) includes, as a component, a program that provides
direct interaction between students and faculty; and
``(C) provides for followup training during the academic
year that is conducted in the classroom for a period of not
less than 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.
``(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--
``(A) in the case of grants awarded pursuant to subsection
(a)(1), to the Secretary, at such time, in such manner, and
accompanied by such information as the Secretary may require;
or
``(B) in the case of subgrants awarded pursuant to
subsection (a)(2), to the State educational agency, at such
time, in such manner, and accompanied by such information as
the State educational agency may require.
``(2) Contents.--Each application submitted pursuant to
paragraph (1) shall include--
``(A) the results of a comprehensive assessment of the
teacher quality and professional development needs of any
schools, local educational agencies, and State educational
agencies that comprise the eligible partnership with respect to
the teaching and learning of mathematics and science;
``(B) a description of how the activities to be carried out
by the eligible partnership will be aligned with challenging
State academic content and student academic achievement
standards in mathematics and science and with other educational
reform activities that promote student academic achievement in
mathematics and science;
``(C) a description of how the activities to be carried out
by the eligible partnership will be based on a review of
scientifically based research, and an explanation of how the
activities are expected to improve student academic achievement
and strengthen the quality of mathematics and science
instruction;
``(D) a description of--
``(i) how the eligible partnership will carry out the
authorized activities described in subsection (c); and
``(ii) the eligible partnership's evaluation and
accountability plan described in subsection (e); and
``(E) a description of how the eligible partnership will
continue the activities funded under this part after the
original grant or subgrant period has expired.
``(c) Authorized Activities.--An eligible partnership shall use
funds provided under this part for one or more of the following
activities related to elementary schools or secondary schools:
``(1) Creating opportunities for enhanced and ongoing
professional development of mathematics and science teachers that
improves the subject matter knowledge of such teachers.
``(2) Promoting strong teaching skills for mathematics and
science teachers and teacher educators, including integrating
reliable scientifically based research teaching methods and
technology-based teaching methods into the curriculum.
``(3) Establishing and operating mathematics and science summer
workshops or institutes, including followup training, for
elementary school and secondary school mathematics and science
teachers that--
``(A) shall--
``(i) directly relate to the curriculum and academic
areas in which the teacher provides instruction, and focus
only secondarily on pedagogy;
``(ii) enhance the ability of the teacher to understand
and use the challenging State academic content standards
for mathematics and science and to select appropriate
curricula; and
``(iii) train teachers to use curricula that are--
``(I) based on scientific research;
``(II) aligned with challenging State academic
content standards; and
``(III) object-centered, experiment-oriented, and
concept- and content-based; and
``(B) may include--
``(i) programs that provide teachers and prospective
teachers with opportunities to work under the guidance of
experienced teachers and college faculty;
``(ii) instruction in the use of data and assessments
to inform and instruct classroom practice; and
``(iii) professional development activities, including
supplemental and followup activities, such as curriculum
alignment, distance learning, and activities that train
teachers to utilize technology in the classroom.
``(4) Recruiting mathematics, engineering, and science majors
to teaching through the use of--
``(A) signing and performance incentives that are linked to
activities proven effective in retaining teachers, for
individuals with demonstrated professional experience in
mathematics, engineering, or science;
``(B) stipends provided to mathematics and science teachers
for certification through alternative routes;
``(C) scholarships for teachers to pursue advanced course
work in mathematics, engineering, or science; and
``(D) other programs that the State educational agency
determines to be effective in recruiting and retaining
individuals with strong mathematics, engineering, or science
backgrounds.
``(5) Developing or redesigning more rigorous mathematics and
science curricula that are aligned with challenging State and local
academic content standards and with the standards expected for
postsecondary study in mathematics and science.
``(6) Establishing distance learning programs for mathematics
and science teachers using curricula that are innovative, content-
based, and based on scientifically based research that is current
as of the date of the program involved.
``(7) Designing programs to prepare a mathematics or science
teacher at a school to provide professional development to other
mathematics or science teachers at the school and to assist
beginning and other teachers at the school, including (if
applicable) a mechanism to integrate the teacher's experiences from
a summer workshop or institute into the provision of professional
development and assistance.
``(8) Establishing and operating programs to bring mathematics
and science teachers into contact with working scientists,
mathematicians, and engineers, to expand such teachers' subject
matter knowledge of and research in science and mathematics.
``(9) Designing programs to identify and develop exemplary
mathematics and science teachers in the kindergarten through grade
8 classrooms.
``(10) Training mathematics and science teachers and developing
programs to encourage young women and other underrepresented
individuals in mathematics and science careers (including
engineering and technology) to pursue postsecondary degrees in
majors leading to such careers.
``(d) Coordination and Consultation.--
``(1) Partnership grants.--An eligible partnership receiving a
grant under section 203 of the Higher Education Act of 1965 shall
coordinate the use of such funds with any related activities
carried out by such partnership with funds made available under
this part.
``(2) National science foundation.--In carrying out the
activities authorized by this part, the Secretary shall consult and
coordinate with the Director of the National Science Foundation,
particularly with respect to the appropriate roles for the
Department and the Foundation in the conduct of summer workshops,
institutes, or partnerships to improve mathematics and science
teaching in elementary schools and secondary schools.
``(e) Evaluation and Accountability Plan.--
``(1) In general.--Each eligible partnership receiving a grant
or subgrant under this part shall develop an evaluation and
accountability plan for activities assisted under this part that
includes rigorous objectives that measure the impact of activities
funded under this part.
``(2) Contents.--The plan developed pursuant to paragraph (1)--
``(A) shall include measurable objectives to increase the
number of mathematics and science teachers who participate in
content-based professional development activities;
``(B) shall include measurable objectives for improved
student academic achievement on State mathematics and science
assessments or, where applicable, an International Mathematics
and Science Study assessment; and
``(C) may include objectives and measures for--
``(i) increased participation by students in advanced
courses in mathematics and science;
``(ii) increased percentages of elementary school
teachers with academic majors or minors, or group majors or
minors, in mathematics, engineering, or the sciences; and
``(iii) increased percentages of secondary school
classes in mathematics and science taught by teachers with
academic majors in mathematics, engineering, and science.
``(f) Report.--Each eligible partnership receiving a grant or
subgrant under this part shall report annually to the Secretary
regarding the eligible partnership's progress in meeting the objectives
described in the accountability plan of the partnership under
subsection (e).
``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$450,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 5 succeeding fiscal years.
``PART C--INNOVATION FOR TEACHER QUALITY
``Subpart 1--Transitions to Teaching
``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM
``SEC. 2301. DEFINITIONS.
``In this chapter:
``(1) Armed forces.--The term `Armed Forces' means the Army,
Navy, Air Force, Marine Corps, and Coast Guard.
``(2) Member of the armed forces.--The term `member of the
Armed Forces' includes a former member of the Armed Forces.
``(3) Program.--The term `Program' means the Troops-to-Teachers
Program authorized by this chapter.
``(4) Reserve component.--The term `reserve component' means--
``(A) the Army National Guard of the United States;
``(B) the Army Reserve;
``(C) the Naval Reserve;
``(D) the Marine Corps Reserve;
``(E) the Air National Guard of the United States;
``(F) the Air Force Reserve; and
``(G) the Coast Guard Reserve.
``(5) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of the Army, with respect to matters
concerning a reserve component of the Army;
``(B) the Secretary of the Navy, with respect to matters
concerning reserve components named in subparagraphs (C) and
(D) of paragraph (4);
``(C) the Secretary of the Air Force, with respect to
matters concerning a reserve component of the Air Force; and
``(D) the Secretary of Transportation, with respect to
matters concerning the Coast Guard Reserve.
``SEC. 2302. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.
``(a) Purpose.--The purpose of this section is to authorize a
mechanism for the funding and administration of the Troops-to-Teachers
Program, which was originally established by the Troops-to-Teachers
Program Act of 1999 (title XVII of the National Defense Authorization
Act for Fiscal Year 2000) (20 U.S.C. 9301 et seq.).
``(b) Program Authorized.--The Secretary may carry out a program
(to be known as the `Troops-to-Teachers Program')--
``(1) to assist eligible members of the Armed Forces described
in section 2303 to obtain certification or licensing as elementary
school teachers, secondary school teachers, or vocational or
technical teachers, and to become highly qualified teachers; and
``(2) to facilitate the employment of such members--
``(A) by local educational agencies or public charter
schools that the Secretary identifies as--
``(i) receiving grants under part A of title I as a
result of having within their jurisdictions concentrations
of children from low-income families; or
``(ii) experiencing a shortage of highly qualified
teachers, in particular a shortage of science, mathematics,
special education, or vocational or technical teachers; and
``(B) in elementary schools or secondary schools, or as
vocational or technical teachers.
``(c) Administration of Program.--The Secretary shall enter into a
memorandum of agreement with the Secretary of Defense under which the
Secretary of Defense, acting through the Defense Activity for Non-
Traditional Education Support of the Department of Defense, will
perform the actual administration of the Program, other than section
2306. Using funds appropriated to the Secretary to carry out this
chapter, the Secretary shall transfer to the Secretary of Defense such
amounts as may be necessary to administer the Program pursuant to the
memorandum of agreement.
``(d) Information Regarding Program.--The Secretary shall provide
to the Secretary of Defense information regarding the Program and
applications to participate in the Program, for distribution as part of
preseparation counseling provided under section 1142 of title 10,
United States Code, to members of the Armed Forces described in section
2303.
``(e) Placement Assistance and Referral Services.--The Secretary
may, with the agreement of the Secretary of Defense, provide placement
assistance and referral services to members of the Armed Forces who
meet the criteria described in section 2303, including meeting
education qualification requirements under subsection 2303(c)(2). Such
members shall not be eligible for financial assistance under
subsections (c) and (d) of section 2304.
``SEC. 2303. RECRUITMENT AND SELECTION OF PROGRAM PARTICIPANTS.
``(a) Eligible Members.--The following members of the Armed Forces
are eligible for selection to participate in the Program:
``(1) Any member who--
``(A) on or after October 1, 1999, becomes entitled to
retired or retainer pay in the manner provided in title 10 or
title 14, United States Code;
``(B) has an approved date of retirement that is within 1
year after the date on which the member submits an application
to participate in the Program; or
``(C) has been transferred to the Retired Reserve.
``(2) Any member who, on or after the date of enactment of the
No Child Left Behind Act of 2001--
``(A)(i) is separated or released from active duty after 6
or more years of continuous active duty immediately before the
separation or release; or
``(ii) has completed a total of at least 10 years of active
duty service, 10 years of service computed under section 12732
of title 10, United States Code, or 10 years of any combination
of such service; and
``(B) executes a reserve commitment agreement for a period
of not less than 3 years under subsection (e)(2).
``(3) Any member who, on or after the date of enactment of the
No Child Left Behind Act of 2001, is retired or separated for
physical disability under chapter 61 of title 10, United States
Code.
``(4) Any member who--
``(A) during the period beginning on October 1, 1990, and
ending on September 30, 1999, was involuntarily discharged or
released from active duty for purposes of a reduction of force
after 6 or more years of continuous active duty immediately
before the discharge or release; or
``(B) applied for the teacher placement program
administered under section 1151 of title 10, United States
Code, before the repeal of that section, and satisfied the
eligibility criteria specified in subsection (c) of such
section 1151.
``(b) Submission of Applications.--
``(1) Form and submission.--Selection of eligible members of
the Armed Forces to participate in the Program shall be made on the
basis of applications submitted to the Secretary within the time
periods specified in paragraph (2). An application shall be in such
form and contain such information as the Secretary may require.
``(2) Time for submission.--An application shall be considered
to be submitted on a timely basis under paragraph (1) if--
``(A) in the case of a member described in paragraph
(1)(A), (2), or (3) of subsection (a), the application is
submitted not later than 4 years after the date on which the
member is retired or separated or released from active duty,
whichever applies to the member; or
``(B) in the case of a member described in subsection
(a)(4), the application is submitted not later than September
30, 2003.
``(c) Selection Criteria.--
``(1) Establishment.--Subject to paragraphs (2) and (3), the
Secretary shall prescribe the criteria to be used to select
eligible members of the Armed Forces to participate in the Program.
``(2) Educational background.--
``(A) Elementary or secondary school teacher.--If a member
of the Armed Forces described in paragraph (1), (2), or (3) of
subsection (a) is applying for assistance for placement as an
elementary school or secondary school teacher, the Secretary
shall require the member to have received a baccalaureate or
advanced degree from an accredited institution of higher
education.
``(B) Vocational or technical teacher.--If a member of the
Armed Forces described in paragraph (1), (2), or (3) of
subsection (a) is applying for assistance for placement as a
vocational or technical teacher, the Secretary shall require
the member--
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 last
period of service in the Armed Forces was honorable, as
characterized by the Secretary concerned (as defined in section
101(a)(9) of title 10, United States Code). A member selected to
participate in the Program before the retirement of the member or
the separation or release of the member from active duty may
continue to participate in the Program after the retirement,
separation, or release only if the member's last period of service
is characterized as honorable by the Secretary concerned (as so
defined).
``(d) Selection Priorities.--In selecting eligible members of the
Armed Forces to receive assistance under the Program, the Secretary
shall give priority to members who have educational or military
experience in science, mathematics, special education, or vocational or
technical subjects and agree to seek employment as science,
mathematics, or special education teachers in elementary schools or
secondary schools or in other schools under the jurisdiction of a local
educational agency.
``(e) Other Conditions on Selection.--
``(1) Selection subject to funding.--The Secretary may not
select an eligible member of the Armed Forces to participate in the
Program under this section and receive financial assistance under
section 2304 unless the Secretary has sufficient appropriations for
the Program available at the time of the selection to satisfy the
obligations to be incurred by the United States under section 2304
with respect to the member.
``(2) Reserve commitment agreement.--The Secretary may not
select an eligible member of the Armed Forces described in
subsection (a)(2)(A) to participate in the Program under this
section and receive financial assistance under section 2304
unless--
``(A) the Secretary notifies the Secretary concerned and
the member that the Secretary has reserved a full stipend or
bonus under section 2304 for the member; and
``(B) the member executes a written agreement with the
Secretary concerned to serve as a member of the Selected
Reserve of a reserve component of the Armed Forces for a period
of not less than 3 years (in addition to any other reserve
commitment the member may have).
``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL ASSISTANCE.
``(a) Participation Agreement.--
``(1) In general.--An eligible member of the Armed Forces
selected to participate in the Program under section 2303 and
receive financial assistance under this section shall be required
to enter into an agreement with the Secretary in which the member
agrees--
``(A) within such time as the Secretary may require, to
obtain certification or licensing as an elementary school
teacher, secondary school teacher, or vocational or technical
teacher, and to become a highly qualified teacher; and
``(B) to accept an offer of full-time employment as an
elementary school teacher, secondary school teacher, or
vocational or technical teacher for not less than 3 school
years with a high-need local educational agency or public
charter school, as such terms are defined in section 2101, to
begin the school year after obtaining that certification or
licensing.
``(2) Waiver.--The Secretary may waive the 3-year commitment
described in paragraph (1)(B) for a participant if the Secretary
determines such waiver to be appropriate. If the Secretary provides
the waiver, the participant shall not be considered to be in
violation of the agreement and shall not be required to provide
reimbursement under subsection (f), for failure to meet the 3-year
commitment.
``(b) Violation of Participation Agreement; Exceptions.--A
participant in the Program shall not be considered to be in violation
of the participation agreement entered into under subsection (a) during
any period in which the participant--
``(1) is pursuing a full-time course of study related to the
field of teaching at an institution of higher education;
``(2) is serving on active duty as a member of the Armed
Forces;
``(3) is temporarily totally disabled for a period of time not
to exceed 3 years as established by sworn affidavit of a qualified
physician;
``(4) is unable to secure employment for a period not to exceed
12 months by reason of the care required by a spouse who is
disabled;
``(5) is a highly qualified teacher who is seeking and unable
to find full-time employment as a teacher in an elementary school
or secondary school or as a vocational or technical teacher for a
single period not to exceed 27 months; or
``(6) satisfies the provisions of additional reimbursement
exceptions that may be prescribed by the Secretary.
``(c) Stipend for Participants.--
``(1) Stipend authorized.--Subject to paragraph (2), the
Secretary may pay to a participant in the Program selected under
section 2303 a stipend in an amount of not more than $5,000.
``(2) Limitation.--The total number of stipends that may be
paid under paragraph (1) in any fiscal year may not exceed 5,000.
``(d) Bonus for Participants.--
``(1) Bonus authorized.--Subject to paragraph (2), the
Secretary may, in lieu of paying a stipend under subsection (c),
pay a bonus of $10,000 to a participant in the Program selected
under section 2303 who agrees in the participation agreement under
subsection (a) to become a highly qualified teacher and to accept
full-time employment as an elementary school teacher, secondary
school teacher, or vocational or technical teacher for not less
than 3 school years in a high-need school.
``(2) Limitation.--The total number of bonuses that may be paid
under paragraph (1) in any fiscal year may not exceed 3,000.
``(3) High-need school defined.--In this subsection, the term
`high-need school' means a public elementary school, public
secondary school, or public charter school that meets one or more
of the following criteria:
``(A) Low-income children.--At least 50 percent of the
students enrolled in the school were from low-income families
(as described in section 2302(b)(2)(A)(i)).
``(B) Children with disabilities.--The school has a large
percentage of students who qualify for assistance under part B
of the Individuals with Disabilities Education Act.
``(e) Treatment of Stipend and Bonus.--A stipend or bonus paid
under this section to a participant in the Program shall be taken into
account in determining the eligibility of the participant for Federal
student financial assistance provided under title IV of the Higher
Education Act of 1965.
``(f) Reimbursement Under Certain Circumstances.--
``(1) Reimbursement required.--A participant in the Program who
is paid a stipend or bonus under this section shall be required to
repay the stipend or bonus under the following circumstances:
``(A) Failure to obtain qualifications or employment.--The
participant fails to obtain teacher certification or licensing,
to become a highly qualified teacher, or to obtain employment
as an elementary school teacher, secondary school teacher, or
vocational or technical teacher as required by the
participation agreement under subsection (a).
``(B) Termination of employment.--The participant
voluntarily leaves, or is terminated for cause from, employment
as an elementary school teacher, secondary school teacher, or
vocational or technical teacher during the 3 years of required
service in violation of the participation agreement.
``(C) Failure to complete service under reserve commitment
agreement.--The participant executed a written agreement with
the Secretary concerned under section 2303(e)(2) to serve as a
member of a reserve component of the Armed Forces for a period
of 3 years and fails to complete the required term of service.
``(2) Amount of reimbursement.--A participant required to
reimburse the Secretary for a stipend or bonus paid to the
participant under this section shall pay an amount that bears the
same ratio to the amount of the stipend or bonus as the unserved
portion of required service bears to the 3 years of required
service. Any amount owed by the participant shall bear interest at
the rate equal to the highest rate being paid by the United States
on the day on which the reimbursement is determined to be due for
securities having maturities of 90 days or less and shall accrue
from the day on which the participant is first notified of the
amount due.
``(3) Treatment of obligation.--The obligation to reimburse the
Secretary under this subsection is, for all purposes, a debt owing
the United States. A discharge in bankruptcy under title 11, United
States Code, shall not release a participant from the obligation to
reimburse the Secretary under this subsection.
``(4) Exceptions to reimbursement requirement.--A participant
shall be excused from reimbursement under this subsection if the
participant becomes permanently totally disabled as established by
sworn affidavit of a qualified physician. The Secretary may also
waive the reimbursement in cases of extreme hardship to the
participant, as determined by the Secretary.
``(g) Relationship to Educational Assistance Under Montgomery GI
Bill.--The receipt by a participant in the Program of a stipend or
bonus under this section shall not reduce or otherwise affect the
entitlement of the participant to any benefits under chapter 30 of
title 38, United States Code, or chapter 1606 of title 10, United
States Code.
``SEC. 2305. PARTICIPATION BY STATES.
``(a) Discharge of State Activities Through Consortia of States.--
The Secretary may permit States participating in the Program to carry
out activities authorized for such States under the Program through one
or more consortia of such States.
``(b) Assistance to States.--
``(1) Grants authorized.--Subject to paragraph (2), the
Secretary may make grants to States participating in the Program,
or to consortia of such States, in order to permit such States or
consortia of States to operate offices for purposes of recruiting
eligible members of the Armed Forces for participation in the
Program and facilitating the employment of participants in the
Program as elementary school teachers, secondary school teachers,
and vocational or technical teachers.
``(2) Limitation.--The total amount of grants made under
paragraph (1) in any fiscal year may not exceed $5,000,000.
``SEC. 2306. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER CERTIFICATION
PROGRAMS.
``(a) Purpose.--The purpose of this section is to provide funding
to develop, implement, and demonstrate teacher certification programs.
``(b) Development, Implementation and Demonstration.--The Secretary
may enter into a memorandum of agreement with a State educational
agency, an institution of higher education, or a consortia of State
educational agencies or institutions of higher education, to develop,
implement, and demonstrate teacher certification programs for members
of the Armed Forces described in section 2303(a)(1)(B) for the purpose
of assisting such members to consider and prepare for a career as a
highly qualified elementary school teacher, secondary school teacher,
or vocational or technical teacher upon retirement from the Armed
Forces.
``(c) Program Elements.--A teacher certification program under
subsection (b) shall--
``(1) provide recognition of military experience and training
as related to certification or licensing requirements;
``(2) provide courses of instruction that may be conducted on
or near a military installation;
``(3) incorporate alternative approaches to achieve teacher
certification, such as innovative methods to gaining field-based
teaching experiences, and assessment of background and experience
as related to skills, knowledge, and abilities required of
elementary school teachers, secondary school teachers, or
vocational or technical teachers;
``(4) provide for courses to be delivered via distance
education methods; and
``(5) address any additional requirements or specifications
established by the Secretary.
``(d) Application Procedures.--
``(1) In general.--A State educational 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 submit to the
Secretary a proposal, at such time, in such manner, and containing
such information as the Secretary may require, including an
assurance that the State educational agency, institution, or
consortium is operating a program leading to State approved teacher
certification.
``(2) Preference.--The Secretary shall give preference to State
educational agencies, institutions, and consortia that submit
proposals that provide for cost sharing with respect to the program
involved.
``(e) Continuation of Programs.--Upon successful completion of the
demonstration phase of teacher certification programs funded under this
section, the continued operation of the teacher certification programs
shall not be the responsibility of the Secretary. A State educational
agency, institution, or consortium that desires to continue a program
that is funded under this section after such funding is terminated
shall use amounts derived from tuition charges to continue such
program.
``(f) Funding Limitation.--The total amount obligated by the
Secretary under this section for any fiscal year may not exceed
$10,000,000.
``SEC. 2307. REPORTING REQUIREMENTS.
``(a) Report Required.--Not later than March 31, 2006, the
Secretary (in consultation with the Secretary of Defense and the
Secretary of Transportation) and the Comptroller General of the United
States shall submit to Congress a report on the effectiveness of the
Program in the recruitment and retention of qualified personnel by
local educational agencies and public charter schools.
``(b) Elements of Report.--The report submitted under subsection
(a) shall include information on the following:
``(1) The number of participants in the Program.
``(2) The schools in which the participants are employed.
``(3) The grade levels at which the participants teach.
``(4) The academic subjects taught by the participants.
``(5) The rates of retention of the participants by the local
educational agencies and public charter schools employing the
participants.
``(6) Such other matters as the Secretary or the Comptroller
General of the United States, as the case may be, considers to be
appropriate.
``CHAPTER B--TRANSITION TO TEACHING PROGRAM
``SEC. 2311. PURPOSES.
``The purposes of this chapter are--
``(1) to establish a program to recruit and retain highly
qualified mid-career professionals (including highly qualified
paraprofessionals), and recent graduates of an institution of
higher education, as teachers in high-need schools, including
recruiting teachers through alternative routes to certification;
and
``(2) to encourage the development and expansion of alternative
routes to certification under State-approved programs that enable
individuals to be eligible for teacher certification within a
reduced period of time, relying on the experience, expertise, and
academic qualifications of an individual, or other factors in lieu
of traditional course work in the field of education.
``SEC. 2312. DEFINITIONS.
``In this chapter:
``(1) Eligible participant.--The term `eligible participant'
means--
``(A) an individual with substantial, demonstrable career
experience, including a highly qualified paraprofessional; or
``(B) an individual who is a graduate of an institution of
higher education who--
``(i) has graduated not more than 3 years before
applying to an eligible entity to teach under this chapter;
and
``(ii) in the case of an individual wishing to teach in
a secondary school, has completed an academic major (or
courses totaling an equivalent number of credit hours) in
the academic subject that the individual will teach.
``(2) High-need local educational agency.--The term `high-need
local educational agency' has the meaning given the term in section
2102.
``(3) High-need school.--The term `high-need school' means a
school that--
``(A) is located in an area in which the percentage of
students from families with incomes below the poverty line is
30 percent or more; or
``(B)(i) is located in an area with a high percentage of
out-of-field teachers, as defined in section 2102;
``(ii) is within the top quartile of elementary schools and
secondary schools statewide, as ranked by the number of
unfilled, available teacher positions at the schools;
``(iii) is located in an area in which there is a high
teacher turnover rate; or
``(iv) is located in an area in which there is a high
percentage of teachers who are not certified or licensed.
``SEC. 2313. GRANT PROGRAM.
``(a) In General.--The Secretary may establish a program to make
grants on a competitive basis to eligible entities to develop State and
local teacher corps or other programs to establish, expand, or enhance
teacher recruitment and retention efforts.
``(b) Eligible Entity.--To be eligible to receive a grant under
this section, an entity shall be--
``(1) a State educational agency;
``(2) a high-need local educational agency;
``(3) a for-profit or nonprofit organization that has a proven
record of effectively recruiting and retaining highly qualified
teachers, in a partnership with a high-need local educational
agency or with a State educational agency;
``(4) an institution of higher education, in a partnership with
a high-need local educational agency or with a State educational
agency;
``(5) a regional consortium of State educational agencies; or
``(6) a consortium of high-need local educational agencies.
``(c) Priority.--In making such a grant, the Secretary shall give
priority to a partnership or consortium that includes a high-need State
educational agency or local educational agency.
``(d) Application.--
``(1) In general.--To be eligible to receive a grant under this
section, an entity described in subsection (b) shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(2) Contents.--The application shall describe--
``(A) one or more target recruitment groups on which the
applicant will focus its recruitment efforts;
``(B) the characteristics of each such target group that--
``(i) show the knowledge and experience of the group's
members; and
``(ii) demonstrate that the members are eligible to
achieve the objectives of this section;
``(C) describe how the applicant will use funds received
under this section to develop a teacher corps or other program
to recruit and retain highly qualified midcareer professionals
(which may include highly qualified paraprofessionals), recent
college graduates, and recent graduate school graduates, as
highly qualified teachers in high-need schools operated by
high-need local educational agencies;
``(D) explain how the program carried out under the grant
will meet the relevant State laws (including regulations)
related to teacher certification or licensing and facilitate
the certification or licensing of such teachers;
``(E) describe how the grant will increase the number of
highly qualified teachers, in high-need schools operated by
high-need local educational agencies (in urban or rural school
districts), and in high-need academic subjects, in the
jurisdiction served by the applicant; and
``(F) describe how the applicant will collaborate, as
needed, with other institutions, agencies, or organizations to
recruit (particularly through activities that have proven
effective in retaining highly qualified teachers), train,
place, support, and provide teacher induction programs to
program participants under this chapter, including providing
evidence of the commitment of the institutions, agencies, or
organizations to the applicant's programs.
``(e) Duration of Grants.--The Secretary may make grants under this
section for periods of 5 years. At the end of the 5-year period for
such a grant, the grant recipient may apply for an additional grant
under this section.
``(f) Equitable Distribution.--To the extent practicable, the
Secretary shall ensure an equitable geographic distribution of grants
under this section among the regions of the United States.
``(g) Uses of Funds.--
``(1) In general.--An entity that receives a grant under this
section shall use the funds made available through the grant to
develop a teacher corps or other program in order to establish,
expand, or enhance a teacher recruitment and retention program for
highly qualified mid-career professionals (including highly
qualified paraprofessionals), and recent graduates of an
institution of higher education, who are eligible participants,
including activities that provide alternative routes to teacher
certification.
``(2) Authorized activities.--The entity shall use the funds to
carry out a program that includes two or more of the following
activities:
``(A) Providing scholarships, stipends, bonuses, and other
financial incentives, that are linked to participation in
activities that have proven effective in retaining teachers in
high-need schools operated by high-need local educational
agencies, to all eligible participants, in an amount not to
exceed $5,000 per participant.
``(B) Carrying out pre- and post-placement induction or
support activities that have proven effective in recruiting and
retaining teachers, such as--
``(i) teacher mentoring;
``(ii) providing internships;
``(iii) providing high-quality, preservice coursework;
and
``(iv) providing high-quality, sustained inservice
professional development.
``(C) Carrying out placement and ongoing activities to
ensure that teachers are placed in fields in which the teachers
are highly qualified to teach and are placed in high-need
schools.
``(D) Making payments to pay for costs associated with
accepting teachers recruited under this section from among
eligible participants or provide financial incentives to
prospective teachers who are eligible participants.
``(E) Collaborating with institutions of higher education
in developing and implementing programs to facilitate teacher
recruitment (including teacher credentialing) and teacher
retention programs.
``(F) Carrying out other programs, projects, and activities
that are designed and have proven to be effective in recruiting
and retaining teachers, and that the Secretary determines to be
appropriate.
``(G) Developing long-term recruitment and retention
strategies including developing--
``(i) a statewide or regionwide clearinghouse for the
recruitment and placement of teachers;
``(ii) administrative structures to develop and
implement programs to provide alternative routes to
certification;
``(iii) reciprocity agreements between or among States
for the certification or licensing of teachers; or
``(iv) other long-term teacher recruitment and
retention strategies.
``(3) Effective programs.--The entity shall use the funds only
for programs that have proven to be effective in both recruiting
and retaining teachers.
``(h) Requirements.--
``(1) Targeting.--An entity that receives a grant under this
section to carry out a program shall ensure that participants in
the program recruited with funds made available under this section
are placed in high-need schools operated by high-need local
educational agencies. In placing the participants in the schools,
the entity shall give priority to the schools that are located in
areas with the highest percentages of students from families with
incomes below the poverty line.
``(2) Supplement, not supplant.--Funds made available under
this section shall be used to supplement, and not supplant, State
and local public funds expended for teacher recruitment and
retention programs, including programs to recruit the teachers
through alternative routes to certification.
``(3) Partnerships and consortia of local educational
agencies.--In the case of a partnership established by a local
educational agency to carry out a program under this chapter, or a
consortium of such agencies established to carry out a program
under this chapter, the local educational agency or consortium
shall not be eligible to receive funds through a State program
under this chapter.
``(i) Period of Service.--A program participant in a program under
this chapter who receives training through the program shall serve a
high-need school operated by a high-need local educational agency for
at least 3 years.
``(j) Repayment.--The Secretary shall establish such requirements
as the Secretary determines to be appropriate to ensure that program
participants who receive a stipend or other financial incentive under
subsection (g)(2)(A), but fail to complete their service obligation
under subsection (i), repay all or a portion of such stipend or other
incentive.
``(k) Administrative Funds.--No entity that receives a grant under
this section shall use more than 5 percent of the funds made available
through the grant for the administration of a program under this
chapter carried out under the grant.
``SEC. 2314. EVALUATION AND ACCOUNTABILITY FOR RECRUITING AND RETAINING
TEACHERS.
``(a) Evaluation.--Each entity that receives a grant under this
chapter shall conduct--
``(1) an interim evaluation of the program funded under the
grant at the end of the third year of the grant period; and
``(2) a final evaluation of the program at the end of the fifth
year of the grant period.
``(b) Contents.--In conducting the evaluation, the entity shall
describe the extent to which local educational agencies that received
funds through the grant have met the goals relating to teacher
recruitment and retention described in the application.
``(c) Reports.--The entity shall prepare and submit to the
Secretary and to Congress interim and final reports containing the
results of the interim and final evaluations, respectively.
``(d) Revocation.--If the Secretary determines that the recipient
of a grant under this chapter has not made substantial progress in
meeting such goals and the objectives of the grant by the end of the
third year of the grant period, the Secretary--
``(1) shall revoke the payment made for the fourth year of the
grant period; and
``(2) shall not make a payment for the fifth year of the grant
period.
``CHAPTER C--GENERAL PROVISIONS
``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subpart $150,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 5 succeeding fiscal years.
``(b) Reservation.--From the funds appropriated to carry out this
subpart for fiscal year 2002, the Secretary shall reserve not more than
$30,000,000 to carry out chapter A.
``Subpart 2--National Writing Project
``SEC. 2331. PURPOSES.
``The purposes of this subpart are--
``(1) to support and promote the expansion of the National
Writing Project network of sites so that teachers in every region
of the United States will have access to a National Writing Project
program;
``(2) to ensure the consistent high quality of the sites
through ongoing review, evaluation, and technical assistance;
``(3) to support and promote the establishment of programs to
disseminate effective practices and research findings about the
teaching of writing; and
``(4) to coordinate activities assisted under this subpart with
activities assisted under this Act.
``SEC. 2332. NATIONAL WRITING PROJECT.
``(a) Authorization.--The Secretary is authorized to award a grant
to the National Writing Project, a nonprofit educational organization
that has as its primary purpose the improvement of the quality of
student writing and learning (hereafter in this section referred to as
the `grantee') to improve the teaching of writing and the use of
writing as a part of the learning process in our Nation's classrooms.
``(b) Requirements of Grant.--The grant shall provide that--
``(1) the grantee will enter into contracts with institutions
of higher education or other nonprofit educational providers
(hereafter in this section referred to as `contractors') under
which the contractors will agree to establish, operate, and provide
the non-Federal share of the cost of teacher training programs in
effective approaches and processes for the teaching of writing;
``(2) funds made available by the Secretary to the grantee
pursuant to any contract entered into under this section will be
used to pay the Federal share of the cost of establishing and
operating teacher training programs as provided in paragraph (1);
and
``(3) the grantee will meet such other conditions and standards
as the Secretary determines to be necessary to assure compliance
with the provisions of this section and will provide such technical
assistance as may be necessary to carry out the provisions of this
section.
``(c) Teacher Training Programs.--The teacher training programs
authorized in subsection (a) shall--
``(1) be conducted during the school year and during the summer
months;
``(2) train teachers who teach grades kindergarten through
college;
``(3) select teachers to become members of a National Writing
Project teacher network whose members will conduct writing
workshops for other teachers in the area served by each National
Writing Project site; and
``(4) encourage teachers from all disciplines to participate in
such teacher training programs.
``(d) Federal Share.--
``(1) In general.--Except as provided in paragraph (2) or (3)
and for purposes of subsection (a), the term `Federal share' means,
with respect to the costs of teacher training programs authorized
in subsection (a), 50 percent of such costs to the contractor.
``(2) Waiver.--The Secretary may waive the provisions of
paragraph (1) on a case-by-case basis if the National Advisory
Board described in subsection (e) determines, on the basis of
financial need, that such waiver is necessary.
``(3) Maximum.--The Federal share of the costs of teacher
training programs conducted pursuant to subsection (a) may not
exceed $100,000 for any one contractor, or $200,000 for a statewide
program administered by any one contractor in at least five sites
throughout the State.
``(e) National Advisory Board.--
``(1) Establishment.--The National Writing Project shall
establish and operate a National Advisory Board.
``(2) Composition.--The National Advisory Board established
pursuant to paragraph (1) shall consist of--
``(A) national educational leaders;
``(B) leaders in the field of writing; and
``(C) such other individuals as the National Writing
Project determines necessary.
``(3) Duties.--The National Advisory Board established pursuant
to paragraph (1) shall--
``(A) advise the National Writing Project on national
issues related to student writing and the teaching of writing;
``(B) review the activities and programs of the National
Writing Project; and
``(C) support the continued development of the National
Writing Project.
``(f) Evaluation.--
``(1) In general.--The Secretary shall conduct an independent
evaluation by grant or contract of the teacher training programs
administered pursuant to this subpart. Such evaluation shall
specify the amount of funds expended by the National Writing
Project and each contractor receiving assistance under this section
for administrative costs. The results of such evaluation shall be
made available to the appropriate committees of Congress.
``(2) Funding limitation.--The Secretary shall reserve not more
than $150,000 from the total amount appropriated pursuant to the
authority of subsection (h) for fiscal year 2002 and each of the 5
succeeding fiscal years to conduct the evaluation described in
paragraph (1).
``(g) Application Review.--
``(1) Review board.--The National Writing Project shall
establish and operate a National Review Board that shall consist
of--
``(A) leaders in the field of research in writing; and
``(B) such other individuals as the National Writing
Project deems necessary.
``(2) Duties.--The National Review Board shall--
``(A) review all applications for assistance under this
subsection; and
``(B) recommend applications for assistance under this
subsection for funding by the National Writing Project.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this subpart $15,000,000 as may be necessary
for fiscal year 2002 and each of the 5 succeeding fiscal years.
``Subpart 3--Civic Education
``SEC. 2341. SHORT TITLE.
``This subpart may be cited as the `Education for Democracy Act'.
``SEC. 2342. PURPOSE.
``It is the purpose of this subpart--
``(1) to improve the quality of civics and government education
by educating students about the history and principles of the
Constitution of the United States, including the Bill of Rights;
``(2) to foster civic competence and responsibility; and
``(3) to improve the quality of civic education and economic
education through cooperative civic education and economic
education exchange programs with emerging democracies.
``SEC. 2343. GENERAL AUTHORITY.
``(a) Authority.--The Secretary is authorized to award grants to,
or enter into contracts with--
``(1) the Center for Civic Education, to carry out civic
education activities under sections 2344 and 2345;
``(2) the National Council on Economic Education, to carry out
economic education activities under section 2345; and
``(3) organizations experienced in the development of curricula
and programs in civics and government education and economic
education for students in elementary schools and secondary schools
in countries other than the United States, to carry out civic
education activities under section 2345.
``(b) Distribution for Cooperative Civic Education and Economic
Education Exchange Programs.--
``(1) Limitation.--Not more than 40 percent of the amount
appropriated under section 2346 for a fiscal year shall be used to
carry out section 2345.
``(2) Distribution.--Of the amount used to carry out section
2345 for a fiscal year (consistent with paragraph (1)), the
Secretary shall use--
``(A) 37.5 percent for a grant or contract for the Center
for Civic Education;
``(B) 37.5 percent for a grant or contract for the National
Council on Economic Education; and
``(C) 25 percent for not less than 1, but not more than 3,
grants or contracts for organizations described in subsection
(a)(3).
``SEC. 2344. WE THE PEOPLE PROGRAM.
``(a) The Citizen and the Constitution.--
``(1) Educational activities.--The Center for Civic Education--
``(A) shall use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to continue and expand the educational activities
of the program entitled the `We the People... The Citizen
and the Constitution' program administered by such center;
``(ii) to carry out activities to enhance student
attainment of challenging academic content standards in
civics and government;
``(iii) to provide a course of instruction on the basic
principles of the Nation's constitutional democracy and the
history of the Constitution of the United States, including
the Bill of Rights;
``(iv) to provide, at the request of a participating
school, school and community simulated congressional
hearings following the course of instruction described in
clause (iii); and
``(v) to provide an annual national competition of
simulated congressional hearings for secondary school
students who wish to participate in such a program; and
``(B) may use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to provide advanced, sustained, and ongoing
training of teachers about the Constitution of the United
States and the political system of the United States;
``(ii) to provide materials and methods of instruction,
including teacher training, that utilize the latest
advancements in educational technology; and
``(iii) to provide civic education materials and
services to address specific problems such as the
prevention of school violence and the abuse of drugs and
alcohol.
``(2) Availability of program.--The education program
authorized under this subsection shall be made available to public
and private elementary schools and secondary schools, including
Bureau funded schools, in the 435 congressional districts, and in
the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(b) Project Citizen.--
``(1) Educational activities.--The Center for Civic Education--
``(A) shall use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to continue and expand the educational activities
of the program entitled the `We the People... Project
Citizen' program administered by the Center;
``(ii) to carry out activities to enhance student
attainment of challenging academic content standards in
civics and government;
``(iii) to provide a course of instruction at the
middle school level on the roles of State and local
governments in the Federal system established by the
Constitution of the United States; and
``(iv) to provide an annual national showcase or
competition; and
``(B) may use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to provide optional school and community
simulated State legislative hearings;
``(ii) to provide advanced, sustained, and ongoing
training of teachers on the roles of State and local
governments in the Federal system established by the
Constitution of the United States;
``(iii) to provide materials and methods of
instruction, including teacher training, that utilize the
latest advancements in educational technology; and
``(iv) to provide civic education materials and
services to address specific problems such as the
prevention of school violence and the abuse of drugs and
alcohol.
``(2) Availability of program.--The education program
authorized under this subsection shall be made available to public
and private middle schools, including Bureau funded schools, in the
50 States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern Mariana
Islands.
``(c) Bureau-Funded School Defined.--In this section, the term
`Bureau-funded school' has the meaning given such term in section 1146
of the Education Amendments of 1978 (25 U.S.C. 2026).
``SEC. 2345. COOPERATIVE CIVIC EDUCATION AND ECONOMIC EDUCATION
EXCHANGE PROGRAMS.
``(a) Cooperative Education Exchange Programs.--The Center for
Civic Education, the National Council on Economic Education, and
organizations described in section 2343(a)(3) shall use funds made
available under grants or contracts under section 2343 to carry out
cooperative education exchange programs in accordance with this
section.
``(b) Purpose.--The purpose of the cooperative education exchange
programs carried out under this section shall be--
``(1) to make available to educators from eligible countries
exemplary curriculum and teacher training programs in civics and
government education, and economics education, developed in the
United States;
``(2) to assist eligible countries in the adaptation,
implementation, and institutionalization of such programs;
``(3) to create and implement civics and government education,
and economic education, programs for students that draw upon the
experiences of the participating eligible countries;
``(4) to provide a means for the exchange of ideas and
experiences in civics and government education, and economic
education, among political, educational, governmental, and private
sector leaders of participating eligible countries; and
``(5) to provide support for--
``(A) independent research and evaluation to determine the
effects of educational programs on students' development of the
knowledge, skills, and traits of character essential for the
preservation and improvement of constitutional democracy; and
``(B) effective participation in, and the preservation and
improvement of, an efficient market economy.
``(c) Activities.--In carrying out the cooperative education
exchange programs assisted under this section, the Center for Civic
Education, the National Council on Economic Education, and
organizations described in section 2343(a)(3) shall--
``(1) provide to the participants from eligible countries--
``(A) seminars on the basic principles of United States
constitutional democracy and economic system, including
seminars on the major governmental and economic institutions
and systems in the United States, and visits to such
institutions;
``(B) visits to school systems, institutions of higher
education, and nonprofit organizations conducting exemplary
programs in civics and government education, and economic
education, in the United States;
``(C) translations and adaptations with respect to United
States civics and government education, and economic education,
curricular programs for students and teachers, and in the case
of training programs for teachers, translations and adaptations
into forms useful in schools in eligible countries, and joint
research projects in such areas; and
``(D) independent research and evaluation assistance--
``(i) to determine the effects of the cooperative
education exchange programs on students' development of the
knowledge, skills, and traits of character essential for
the preservation and improvement of constitutional
democracy; and
``(ii) to identify effective participation in, and the
preservation and improvement of, an efficient market
economy;
``(2) provide to the participants from the United States--
``(A) seminars on the histories, economies, and systems of
government of eligible countries;
``(B) visits to school systems, institutions of higher
education, and organizations conducting exemplary programs in
civics and government education, and economic education,
located in eligible countries;
``(C) assistance from educators and scholars in eligible
countries in the development of curricular materials on the
history, government, and economy of such countries that are
useful in United States classrooms;
``(D) opportunities to provide onsite demonstrations of
United States curricula and pedagogy for educational leaders in
eligible countries; and
``(E) independent research and evaluation assistance to
determine--
``(i) the effects of the cooperative education exchange
programs assisted under this section on students'
development of the knowledge, skills, and traits of
character essential for the preservation and improvement of
constitutional democracy; and
``(ii) effective participation in, and improvement of,
an efficient market economy; and
``(3) assist participants from eligible countries and the
United States to participate in international conferences on civics
and government education, and economic education, for educational
leaders, teacher trainers, scholars in related disciplines, and
educational policymakers.
``(d) Participants.--The primary participants in the cooperative
education exchange programs assisted under this section shall be
educational leaders in the areas of civics and government education,
and economic education, including teachers, curriculum and teacher
training specialists, scholars in relevant disciplines, and educational
policymakers, and government and private sector leaders from the United
States and eligible countries.
``(e) Consultation.--The Secretary may award a grant to, or enter
into a contract with, the entities described in section 2343 to carry
out programs assisted under this section only if the Secretary of State
concurs with the Secretary that such grant, or contract, respectively,
is consistent with the foreign policy of the United States.
``(f) Avoidance of Duplication.--With the concurrence of the
Secretary of State, the Secretary shall ensure that--
``(1) the activities carried out under the programs assisted
under this section are not duplicative of other activities
conducted in eligible countries; and
``(2) any institutions in eligible countries, with which the
Center for Civic Education, the National Council on Economic
Education, or organizations described in section 2343(a)(3) may
work in conducting such activities, are creditable.
``(g) Eligible Country Defined.--In this section, the term
`eligible country' means a Central European country, an Eastern
European country, Lithuania, Latvia, Estonia, the independent states of
the former Soviet Union as defined in section 3 of the FREEDOM Support
Act (22 U.S.C. 5801), the Republic of Ireland, the province of Northern
Ireland in the United Kingdom, and any developing country (as such term
is defined in section 209(d) of the Education for the Deaf Act) if the
Secretary, with the concurrence of the Secretary of State, determines
that such developing country has a democratic form of government.
``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
$30,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 5 succeeding fiscal years.
``Subpart 4--Teaching of Traditional American History
``SEC. 2351. ESTABLISHMENT OF PROGRAM.
``(a) In General.--The Secretary may establish and implement a
program to be known as the `Teaching American History Grant Program',
under which the Secretary shall award grants on a competitive basis to
local educational agencies--
``(1) to carry out activities to promote the teaching of
traditional American history in elementary schools and secondary
schools as a separate academic subject (not as a component of
social studies); and
``(2) for the development, implementation, and strengthening of
programs to teach traditional American history as a separate
academic subject (not as a component of social studies) within
elementary school and secondary school curricula, including the
implementation of activities--
``(A) to improve the quality of instruction; and
``(B) to provide professional development and teacher
education activities with respect to American history.
``(b) Required Partnership.--A local educational agency that
receives a grant under subsection (a) shall carry out activities under
the grant in partnership with one or more of the following:
``(1) An institution of higher education.
``(2) A nonprofit history or humanities organization.
``(3) A library or museum.
``(c) Application.--To be eligible to receive an grant under this
section, a local educational agency shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require.
``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
such sums as may be necessary for fiscal year 2002 and each of the 5
succeeding fiscal years.
``Subpart 5--Teacher Liability Protection
``SEC. 2361. SHORT TITLE.
``This subpart may be cited as the `Paul D. Coverdell Teacher
Protection Act of 2001'.
``SEC. 2362. PURPOSE.
``The purpose of this subpart is to provide teachers, principals,
and other school professionals the tools they need to undertake
reasonable actions to maintain order, discipline, and an appropriate
educational environment.
``SEC. 2363. DEFINITIONS.
``For purposes of this subpart:
``(1) Economic loss.--The term `economic loss' means any
pecuniary loss resulting from harm (including the loss of earnings
or other benefits related to employment, medical expense loss,
replacement services loss, loss due to death, burial costs, and
loss of business or employment opportunities) to the extent
recovery for such loss is allowed under applicable State law.
``(2) Harm.--The term `harm' includes physical, nonphysical,
economic, and noneconomic losses.
``(3) Noneconomic loss.--The term `noneconomic loss' means loss
for physical or emotional pain, suffering, inconvenience, physical
impairment, mental anguish, disfigurement, loss of enjoyment of
life, loss of society or companionship, loss of consortium (other
than loss of domestic service), hedonic damages, injury to
reputation, or any other nonpecuniary loss of any kind or nature.
``(4) School.--The term `school' means a public or private
kindergarten, a public or private elementary school or secondary
school, or a home school.
``(5) State.--The term `State' means each of the several States
of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, any other
territory or possession of the United States, or any political
subdivision of any such State, territory, or possession.
``(6) Teacher.--The term `teacher' means--
``(A) a teacher, instructor, principal, or administrator;
``(B) another educational professional who works in a
school;
``(C) a professional or nonprofessional employee who--
``(i) works in a school; and
``(ii)(I) in the employee's job, maintains discipline
or ensures safety; or
``(II) in an emergency, is called on to maintain
discipline or ensure safety; or
``(D) an individual member of a school board (as distinct
from the board).
``SEC. 2364. APPLICABILITY.
``This subpart shall only apply to States that receive funds under
this Act, and shall apply to such a State as a condition of receiving
such funds.
``SEC. 2365. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.
``(a) Preemption.--This subpart preempts the laws of any State to
the extent that such laws are inconsistent with this subpart, except
that this subpart shall not preempt any State law that provides
additional protection from liability relating to teachers.
``(b) Election of State Regarding Nonapplicability.--This subpart
shall not apply to any civil action in a State court against a teacher
with respect to claims arising within that State if such State enacts a
statute in accordance with State requirements for enacting
legislation--
``(1) citing the authority of this subsection;
``(2) declaring the election of such State that this subpart
shall not apply, as of a date certain, to such civil action in the
State; and
``(3) containing no other provisions.
``SEC. 2366. LIMITATION ON LIABILITY FOR TEACHERS.
``(a) Liability Protection for Teachers.--Except as provided in
subsection (b), no teacher in a school shall be liable for harm caused
by an act or omission of the teacher on behalf of the school if--
``(1) the teacher was acting within the scope of the teacher's
employment or responsibilities to a school or governmental entity;
``(2) the actions of the teacher were carried out in conformity
with Federal, State, and local laws (including rules and
regulations) in furtherance of efforts to control, discipline,
expel, or suspend a student or maintain order or control in the
classroom or school;
``(3) if appropriate or required, the teacher was properly
licensed, certified, or authorized by the appropriate authorities
for the activities or practice involved in the State in which the
harm occurred, where the activities were or practice was undertaken
within the scope of the teacher's responsibilities;
``(4) the harm was not caused by willful or criminal
misconduct, gross negligence, reckless misconduct, or a conscious,
flagrant indifference to the rights or safety of the individual
harmed by the teacher; and
``(5) the harm was not caused by the teacher operating a motor
vehicle, vessel, aircraft, or other vehicle for which the State
requires the operator or the owner of the vehicle, craft, or vessel
to--
``(A) possess an operator's license; or
``(B) maintain insurance.
``(b) Exceptions to Teacher Liability Protection.--If the laws of a
State limit teacher liability subject to one or more of the following
conditions, such conditions shall not be construed as inconsistent with
this section:
``(1) A State law that requires a school or governmental entity
to adhere to risk management procedures, including mandatory
training of teachers.
``(2) A State law that makes the school or governmental entity
liable for the acts or omissions of its teachers to the same extent
as an employer is liable for the acts or omissions of its
employees.
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 entity
unless the claimant establishes by clear and convincing evidence
that the harm was proximately caused by an act or omission of such
teacher that constitutes willful or criminal misconduct, or a
conscious, flagrant indifference to the rights or safety of the
individual harmed.
``(2) Construction.--Paragraph (1) does not create a cause of
action for punitive damages and does not preempt or supersede any
Federal or State law to the extent that such law would further
limit the award of punitive damages.
``(d) Exceptions to Limitations on Liability.--
``(1) In general.--The limitations on the liability of a
teacher under this subpart shall not apply to any misconduct that--
``(A) constitutes a crime of violence (as that term is
defined in section 16 of title 18, United States Code) or act
of international terrorism (as that term is defined in section
2331 of title 18, United States Code) for which the defendant
has been convicted in any court;
``(B) involves a sexual offense, as defined by applicable
State law, for which the defendant has been convicted in any
court;
``(C) involves misconduct for which the defendant has been
found to have violated a Federal or State civil rights law; or
``(D) where the defendant was under the influence (as
determined pursuant to applicable State law) of intoxicating
alcohol or any drug at the time of the misconduct.
``(2) Hiring.--The limitations on the liability of a teacher
under this subpart shall not apply to misconduct during background
investigations, or during other actions, involved in the hiring of
a teacher.
``(e) Rules of Construction.--
``(1) Concerning responsibility of teachers to schools and
governmental entities.--Nothing in this section shall be construed
to affect any civil action brought by any school or any
governmental entity against any teacher of such school.
``(2) Concerning corporal punishment.--Nothing in this subpart
shall be construed to affect any State or local law (including a
rule or regulation) or policy pertaining to the use of corporal
punishment.
``SEC. 2367. ALLOCATION OF RESPONSIBILITY FOR NONECONOMIC LOSS.
``(a) General Rule.--In any civil action against a teacher, based
on an act or omission of a teacher acting within the scope of the
teacher's employment or responsibilities to a school or governmental
entity, the liability of the teacher for noneconomic loss shall be
determined in accordance with subsection (b).
``(b) Amount of Liability.--
``(1) In general.--
``(A) Liability.--Each defendant who is a teacher shall be
liable only for the amount of noneconomic loss allocated to
that defendant in direct proportion to the percentage of
responsibility of that defendant (determined in accordance with
paragraph (2)) for the harm to the claimant with respect to
which that defendant is liable.
``(B) Separate judgment.--The court shall render a separate
judgment against each defendant in an amount determined
pursuant to subparagraph (A).
``(2) Percentage of responsibility.--For purposes of
determining the amount of noneconomic loss allocated to a defendant
who is a teacher under this section, the trier of fact shall
determine the percentage of responsibility of each person
responsible for the claimant's harm, whether or not such person is
a party to the action.
``(c) Rule of Construction.--Nothing in this section shall be
construed to preempt or supersede any Federal or State law that further
limits the application of joint liability in a civil action described
in subsection (a), beyond the limitations established in this section.
``SEC. 2368. EFFECTIVE DATE.
``(a) In General.--This subpart shall take effect 90 days after the
date of enactment of the No Child Left Behind Act of 2001.
``(b) Application.--This subpart applies to any claim for harm
caused by an act or omission of a teacher if that claim is filed on or
after the effective date of the No Child Left Behind Act of 2001
without regard to whether the harm that is the subject of the claim or
the conduct that caused the harm occurred before such effective date.
``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY
``SEC. 2401. SHORT TITLE.
``This part may be cited as the `Enhancing Education Through
Technology Act of 2001'.
``SEC. 2402. PURPOSES AND GOALS.
``(a) Purposes.--The purposes of this part are the following:
``(1) To provide assistance to States and localities for the
implementation and support of a comprehensive system that
effectively uses technology in elementary schools and secondary
schools to improve student academic achievement.
``(2) To encourage the establishment or expansion of
initiatives, including initiatives involving public-private
partnerships, designed to increase access to technology,
particularly in schools served by high-need local educational
agencies.
``(3) To assist States and localities in the acquisition,
development, interconnection, implementation, improvement, and
maintenance of an effective educational technology infrastructure
in a manner that expands access to technology for students
(particularly for disadvantaged students) and teachers.
``(4) To promote initiatives that provide school teachers,
principals, and administrators with the capacity to integrate
technology effectively into curricula and instruction that are
aligned with challenging State academic content and student
academic achievement standards, through such means as high-quality
professional development programs.
``(5) To enhance the ongoing professional development of
teachers, principals, and administrators by providing constant
access to training and updated research in teaching and learning
through electronic means.
``(6) To support the development and utilization of electronic
networks and other innovative methods, such as distance learning,
of delivering specialized or rigorous academic courses and
curricula for students in areas that would not otherwise have
access to such courses and curricula, particularly in
geographically isolated regions.
``(7) To support the rigorous evaluation of programs funded
under this part, particularly regarding the impact of such programs
on student academic achievement, and ensure that timely information
on the results of such evaluations is widely accessible through
electronic means.
``(8) To support local efforts using technology to promote
parent and family involvement in education and communication among
students, parents, teachers, principals, and administrators.
``(b) Goals.--
``(1) Primary goal.--The primary goal of this part is to
improve student academic achievement through the use of technology
in elementary schools and secondary schools.
``(2) Additional goals.--The additional goals of this part are
the following:
``(A) To assist every student in crossing the digital
divide by ensuring that every student is technologically
literate by the time the student finishes the eighth grade,
regardless of the student's race, ethnicity, gender, family
income, geographic location, or disability.
``(B) To encourage the effective integration of technology
resources and systems with teacher training and curriculum
development to establish research-based instructional methods
that can be widely implemented as best practices by State
educational agencies and local educational agencies.
``SEC. 2403. DEFINITIONS.
``In this part:
``(1) Eligible local entity.--The term `eligible local entity'
means--
``(A) a high-need local educational agency; or
``(B) an eligible local partnership.
``(2) Eligible local partnership.--The term `eligible local
partnership' means a partnership that--
``(A) shall include at least one high-need local
educational agency and at least one--
``(i) local educational agency that can demonstrate
that teachers in schools served by the agency are
effectively integrating technology and proven teaching
practices into instruction, based on a review of relevant
research, and that the integration results in improvement
in--
``(I) classroom instruction in the core academic
subjects; and
``(II) the preparation of students to meet
challenging State academic content and student academic
achievement standards;
``(ii) institution of higher education that is in full
compliance with the reporting requirements of section
207(f) of the Higher Education Act of 1965 and that has not
been identified by its State as low-performing under
section 208 of such Act;
``(iii) for-profit business or organization that
develops, designs, manufactures, or produces technology
products or services, or has substantial expertise in the
application of technology in instruction; or
``(iv) public or private nonprofit organization with
demonstrated experience in the application of educational
technology to instruction; and
``(B) may include other local educational agencies,
educational service agencies, libraries, or other educational
entities appropriate to provide local programs.
``(3) High-need local educational agency.--The term `high-need
local educational agency' means a local educational agency that--
``(A) is among the local educational agencies in a State
with the highest numbers or percentages of children from
families with incomes below the poverty line; and
``(B)(i) operates one or more schools identified under
section 1116; or
``(ii) has a substantial need for assistance in acquiring
and using technology.
``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out subparts 1 and 2, $1,000,000,000 for fiscal year 2002, and such
sums as may be necessary for each of the 5 succeeding fiscal years.
``(b) Allocation of Funds Between State and Local and National
Initiatives.--The amount of funds made available under subsection (a)
for a fiscal year shall be allocated so that--
``(1) not less than 98 percent is made available to carry out
subpart 1; and
``(2) not more than 2 percent is made available to carry out
subpart 2.
``(c) Allocation of Funds for Study.--Of the total amount of funds
allocated under subsection (b)(2) for fiscal years 2002 through 2007,
not more than $15,000,000 may be used to carry out section 2421(a).
``(d) Limitation.--Of the amount of funds made available to a
recipient of funds under this part for a fiscal year, not more than 5
percent may be used by the recipient for administrative costs or
technical assistance, of which not more than 60 percent may be used by
the recipient for administrative costs.
``Subpart 1--State and Local Technology Grants
``SEC. 2411. ALLOTMENT AND REALLOTMENT.
``(a) Reservations and Allotment.--From the amount made available
to carry out this subpart under section 2404(b)(1) for a fiscal year--
``(1) the Secretary shall reserve--
``(A) 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.
``(c) Reallotment of Unused Funds.--If any State educational agency
does not apply for an allotment under this subpart for a fiscal year,
or does not use its entire allotment under this subpart for that fiscal
year, the Secretary shall reallot the amount of the State educational
agency's allotment, or the unused portion of the allotment, to the
remaining State educational agencies that use their entire allotments
under this subpart in accordance with this section.
``(d) State Educational Agency Defined.--In this section, the term
`State educational agency' does not include an agency of an outlying
area or the Bureau of Indian Affairs.
``SEC. 2412. USE OF ALLOTMENT BY STATE.
``(a) In General.--Of the amount provided to a State educational
agency (from the agency's allotment under section 2411(a)(2)) for a
fiscal year--
``(1) the State educational agency may use not more than 5
percent to carry out activities under section 2415; and
``(2) the State educational agency shall distribute the
remainder as follows:
``(A) From 50 percent of the remainder, the State
educational agency shall award subgrants by allocating to each
eligible local educational agency that has submitted an
application to the State educational agency under section 2414,
for the activities described in section 2416, an amount that
bears the same relationship to 50 percent of the remainder for
such year as the amount received under part A of title I for
such year by such local educational agency bears to the amount
received under such part for such year by all local educational
agencies within the State.
``(B) From 50 percent of the remainder and subject to
subsection (b), the State educational agency shall award
subgrants, through a State-determined competitive process, to
eligible local entities that have submitted applications to the
State educational agency under section 2414, for the activities
described in section 2416.
``(b) Sufficient Amounts.--
``(1) Special rule.--In awarding a subgrant under subsection
(a)(2)(B), the State educational agency shall--
``(A) determine the local educational agencies that--
``(i) received allocations under subsection (a)(2)(A)
that are not of sufficient size to be effective, consistent
with the purposes of this part; and
``(ii) are eligible local entities;
``(B) give priority to applications submitted by eligible
local educational agencies described in subparagraph (A); and
``(C) determine the minimum amount for awards under
subsection (a)(2)(B) to ensure that subgrants awarded under
that subsection are of sufficient size to be effective.
``(2) Sufficiency.--In awarding subgrants under subsection
(a)(2)(B), each State educational agency shall ensure that each
subgrant is of sufficient size and duration, and that the program
funded by the subgrant is of sufficient scope and quality, to carry
out the purposes of this part effectively.
``(3) Distribution.--In awarding subgrants under subsection
(a)(2)(B), each State educational agency shall ensure an equitable
distribution of assistance under this subpart among urban and rural
areas of the State, according to the demonstrated need of those
local educational agencies serving the areas.
``(c) Fiscal Agent.--If an eligible local partnership receives a
subgrant under subsection (a)(2)(B), a local educational agency in the
partnership shall serve as the fiscal agent for the partnership.
``(d) Technical Assistance.--Each State educational agency
receiving a grant under section 2411(a) shall--
``(1) identify the local educational agencies served by the
State educational agency that--
``(A) have the highest numbers or percentages of children
from families with incomes below the poverty line; and
``(B) demonstrate to such State educational agency the
greatest need for technical assistance in developing an
application under section 2414; and
``(2) offer the technical assistance described in paragraph
(1)(B) to those local educational agencies.
``SEC. 2413. STATE APPLICATIONS.
``(a) In General.--To be eligible to receive a grant under this
subpart, a State educational agency shall submit to the Secretary, at
such time and in such manner as the Secretary may specify, an
application containing a new or updated statewide long-range strategic
educational technology plan (which shall address the educational
technology needs of local educational agencies) and such other
information as the Secretary may reasonably require.
``(b) Contents.--Each State application submitted under subsection
(a) shall include each of the following:
``(1) An outline of the State educational agency's long-term
strategies for improving student academic achievement, including
technology literacy, through the effective use of technology in
classrooms throughout the State, including through improving the
capacity of teachers to integrate technology effectively into
curricula and instruction.
``(2) A description of the State educational agency's goals for
using advanced technology to improve student academic achievement,
and how those goals are aligned with challenging State academic
content and student academic achievement standards.
``(3) A description of how the State educational agency will
take steps to ensure that all students and teachers in the State,
particularly students and teachers in districts served by high-need
local educational agencies, have increased access to technology.
``(4) A description of the process and accountability measures
that the State educational agency will use to evaluate the extent
to which activities funded under this subpart are effective in
integrating technology into curricula and instruction.
``(5) A description of how the State educational agency will
encourage the development and utilization of innovative strategies
for the delivery of specialized or rigorous academic courses and
curricula through the use of technology, including distance
learning technologies, particularly for those areas of the State
that would not otherwise have access to such courses and curricula
due to geographical isolation or insufficient resources.
``(6) An assurance that financial assistance provided under
this subpart will supplement, and not supplant, State and local
funds.
``(7) A description of how the plan incorporates teacher
education, professional development, and curriculum development,
and how the State educational agency will work to ensure that
teachers and principals in a State receiving funds under this part
are technologically literate.
``(8) A description of--
``(A) how the State educational agency will provide
technical assistance to applicants under section 2414,
especially to those applicants serving the highest numbers or
percentages of children in poverty or with the greatest need
for technical assistance; and
``(B) the capacity of the State educational agency to
provide such assistance.
``(9) A description of technology resources and systems that
the State will provide for the purpose of establishing best
practices that can be widely replicated by State educational
agencies and local educational agencies in the State and in other
States.
``(10) A description of the State's long-term strategies for
financing technology to ensure that all students, teachers, and
classrooms have access to technology.
``(11) A description of the State's strategies for using
technology to increase parental involvement.
``(12) A description of how the State educational agency will
ensure that each subgrant awarded under section 2412(a)(2)(B) is of
sufficient size and duration, and that the program funded by the
subgrant is of sufficient scope and quality, to carry out the
purposes of this part effectively.
``(13) A description of how the State educational agency will
ensure ongoing integration of technology into school curricula and
instructional strategies in all schools in the State, so that
technology will be fully integrated into the curricula and
instruction of the schools by December 31, 2006.
``(14) A description of how the local educational agencies in
the State will provide incentives to teachers who are
technologically literate and teaching in rural or urban areas, to
encourage such teachers to remain in those areas.
``(15) A description of how public and private entities will
participate in the implementation and support of the plan.
``(c) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this part.
``(d) Disapproval.--The Secretary shall not finally disapprove the
application, except after giving the State educational agency notice
and an opportunity for a hearing.
``(e) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this part, the Secretary
shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance and, in such notification, shall--
``(A) cite the specific provisions in the application that
are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(f) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (e)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the date
on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (c).
``(g) Failure to Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (e)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
``SEC. 2414. LOCAL APPLICATIONS.
``(a) In General.--To be eligible to receive a subgrant from a
State educational agency under this subpart, a local educational agency
or eligible local entity shall submit to the State educational agency
an application containing a new or updated local long-range strategic
educational technology plan that is consistent with the objectives of
the statewide educational technology plan described in section 2413(a),
and such other information as the State educational agency may
reasonably require, at such time and in such manner as the State
educational agency may require.
``(b) Contents.--The application shall include each of the
following:
``(1) A description of how the applicant will use Federal funds
under this subpart to improve the student academic achievement,
including technology literacy, of all students attending schools
served by the local educational agency and to improve the capacity
of all teachers teaching in schools served by the local educational
agency to integrate technology effectively into curricula and
instruction.
``(2) A description of the applicant's specific goals for using
advanced technology to improve student academic achievement,
aligned with challenging State academic content and student
academic achievement standards.
``(3) A description of the steps the applicant will take to
ensure that all students and teachers in schools served by the
local educational agency involved have increased access to
educational technology, including how the agency would use funds
under this subpart (such as combining the funds with funds from
other sources), to help ensure that--
``(A) students in high-poverty and high-needs schools, or
schools identified under section 1116, have access to
technology; and
``(B) teachers are prepared to integrate technology
effectively into curricula and instruction.
``(4) A description of how the applicant will--
``(A) identify and promote curricula and teaching
strategies that integrate technology effectively into curricula
and instruction, based on a review of relevant research,
leading to improvements in student academic achievement, as
measured by challenging State academic content and student
academic achievement standards; and
``(B) provide ongoing, sustained professional development
for teachers, principals, administrators, and school library
media personnel serving the local educational agency, to
further the effective use of technology in the classroom or
library media center, including, if applicable, a list of the
entities that will be partners with the local educational
agency involved in providing the ongoing, sustained
professional development.
``(5) A description of the type and costs of technologies to be
acquired under this subpart, including services, software, and
digital curricula, and including specific provisions for
interoperability among components of such technologies.
``(6) A description of how the applicant will coordinate
activities carried out with funds provided under this subpart with
technology-related activities carried out with funds available from
other Federal, State, and local sources.
``(7) A description of how the applicant will integrate
technology (including software and other electronically delivered
learning materials) into curricula and instruction, and a timeline
for such integration.
``(8) A description of how the applicant will encourage the
development and utilization of innovative strategies for the
delivery of specialized or rigorous academic courses and curricula
through the use of technology, including distance learning
technologies, particularly for those areas that would not otherwise
have access to such courses and curricula due to geographical
isolation or insufficient resources.
``(9) A description of how the applicant will ensure the
effective use of technology to promote parental involvement and
increase communication with parents, including a description of how
parents will be informed of the technology being applied in their
child's education so that the parents are able to reinforce at home
the instruction their child receives at school.
``(10) A description of how programs will be developed, where
applicable, in collaboration with adult literacy service providers,
to maximize the use of technology.
``(11) A description of the process and accountability measures
that the applicant will use to evaluate the extent to which
activities funded under this subpart are effective in integrating
technology into curricula and instruction, increasing the ability
of teachers to teach, and enabling students to meet challenging
State academic content and student academic achievement standards.
``(12) A description of the supporting resources (such as
services, software, other electronically delivered learning
materials, and print resources) that will be acquired to ensure
successful and effective uses of technology.
``(c) Combined Applications.--A local educational agency that is an
eligible local entity and submits an application to the State
educational agency under this section for funds awarded under section
2412(a)(2)(A) may combine the agency's application for funds awarded
under that section with an application for funds awarded under section
2412(a)(2)(B).
``(d) Special Rule.--
``(1) Consortium applications.--
``(A) In general.--For any fiscal year, a local educational
agency applying for financial assistance described in section
2412(a)(2)(A) may apply as part of a consortium that includes
other local educational agencies, institutions of higher
education, educational service agencies, libraries, or other
educational entities appropriate to provide local programs.
``(B) Fiscal agent.--If a local educational agency applies
for and receives financial assistance described in section
2412(a)(2)(A) as part of a consortium, the local educational
agency shall serve as the fiscal agent for the consortium.
``(2) State educational agency assistance.--At the request of a
local educational agency, a State educational agency may assist the
local educational agency in the formation of a consortium described
in paragraph (1) to provide services for the teachers and students
served by the local educational agency.
``SEC. 2415. STATE ACTIVITIES.
``From funds made available under section 2412(a)(1), a State
educational agency shall carry out activities and assist local efforts
to carry out the purposes of this part, which may include the following
activities:
``(1) Developing, or assisting applicants or recipients of
funds under this subpart in the development and utilization of,
innovative strategies for the delivery of specialized or rigorous
academic courses and curricula through the use of technology,
including distance learning technologies, and providing other
technical assistance to such applicants or recipients throughout
the State, with priority given to high-need local educational
agencies.
``(2) Establishing or supporting public-private initiatives
(such as interest-free or reduced-cost loans) for the acquisition
of educational technology for high-need local educational agencies
and students attending schools served by such agencies.
``(3) Assisting recipients of funds under this subpart in
providing sustained and intensive, high-quality professional
development based on a review of relevant research in the
integration of advanced technologies, including emerging
technologies, into curricula and instruction and in using those
technologies to create new learning environments, including
training in the use of technology to--
``(A) access data and resources to develop curricula and
instructional materials;
``(B) enable teachers--
``(i) to use the Internet and other technology to
communicate with parents, other teachers, principals, and
administrators; and
``(ii) to retrieve Internet-based learning resources;
and
``(C) lead to improvements in classroom instruction in the
core academic subjects, that effectively prepare students to
meet challenging State academic content standards and student
academic achievement standards.
``(4) Assisting recipients of funds under this subpart in
providing all students (including students with disabilities and
students with limited English proficiency) and teachers with access
to educational technology.
``(5) Developing performance measurement systems to determine
the effectiveness of educational technology programs funded under
this subpart, particularly in determining the extent to which
activities funded under this subpart are effective in integrating
technology into curricula and instruction, increasing the ability
of teachers to teach, and enabling students to meet challenging
State academic content and student academic achievement standards.
``(6) Collaborating with other State educational agencies on
distance learning, including making specialized or rigorous
academic courses and curricula available to students in areas that
would not otherwise have access to such courses and curricula.
``SEC. 2416. LOCAL ACTIVITIES.
``(a) Professional Development.--
``(1) In general.--A recipient of funds made available under
section 2412(a)(2) shall use not less than 25 percent of such funds
to provide ongoing, sustained, and intensive, high-quality
professional development. The recipient shall provide professional
development in the integration of advanced technologies, including
emerging technologies, into curricula and instruction and in using
those technologies to create new learning environments, such as
professional development in the use of technology--
``(A) to access data and resources to develop curricula and
instructional materials;
``(B) to enable teachers--
``(i) to use the Internet and other technology to
communicate with parents, other teachers, principals, and
administrators; and
``(ii) to retrieve Internet-based learning resources;
and
``(C) to lead to improvements in classroom instruction in
the core academic subjects, that effectively prepare students
to meet challenging State academic content standards, including
increasing student technology literacy, and student academic
achievement standards.
``(2) Waivers.--Paragraph (1) shall not apply to a recipient of
funds made available under section 2412(a)(2) that demonstrates, to
the satisfaction of the State educational agency involved, that the
recipient already provides ongoing, sustained, and intensive, high-
quality professional development that is based on a review of
relevant research, to all teachers in core academic subjects in the
integration of advanced technologies, including emerging
technologies, into curricula and instruction.
``(b) Other Activities.--In addition to the activities described in
subsection (a), a recipient of funds made available by a State
educational agency under section 2412(a)(2) shall use such funds to
carry out other activities consistent with this subpart, which may
include the following:
``(1) Establishing or expanding initiatives, particularly
initiatives involving public-private partnerships, designed to
increase access to technology for students and teachers, with
special emphasis on the access of high-need schools to technology.
``(2) Adapting or expanding existing and new applications of
technology to enable teachers to increase student academic
achievement, including technology literacy--
``(A) through the use of teaching practices that are based
on a review of relevant research and are designed to prepare
students to meet challenging State academic content and student
academic achievement standards; and
``(B) by the development and utilization of innovative
distance learning strategies to deliver specialized or rigorous
academic courses and curricula to areas that would not
otherwise have access to such courses and curricula.
``(3) Acquiring proven and effective courses and curricula that
include integrated technology and are designed to help students
meet challenging State academic content and student academic
achievement standards.
``(4) Utilizing technology to develop or expand efforts to
connect schools and teachers with parents and students to promote
meaningful parental involvement, to foster increased communication
about curricula, assignments, and assessments between students,
parents, and teachers, and to assist parents to understand the
technology being applied in their child's education, so that
parents are able to reinforce at home the instruction their child
receives at school.
``(5) Preparing one or more teachers in elementary schools and
secondary schools as technology leaders who are provided with the
means to serve as experts and train other teachers in the effective
use of technology, and providing bonus payments to the technology
leaders.
``(6) Acquiring, adapting, expanding, implementing, repairing,
and maintaining existing and new applications of technology, to
support the school reform effort and to improve student academic
achievement, including technology literacy.
``(7) Acquiring connectivity linkages, resources, and services
(including the acquisition of hardware and software and other
electronically delivered learning materials) for use by teachers,
students, academic counselors, and school library media personnel
in the classroom, in academic and college counseling centers, or in
school library media centers, in order to improve student academic
achievement.
``(8) Using technology to collect, manage, and analyze data to
inform and enhance teaching and school improvement efforts.
``(9) Implementing performance measurement systems to determine
the effectiveness of education technology programs funded under
this subpart, particularly in determining the extent to which
activities funded under this subpart are effective in integrating
technology into curricula and instruction, increasing the ability
of teachers to teach, and enabling students to meet challenging
State academic content and student academic achievement standards.
``(10) Developing, enhancing, or implementing information
technology courses.
``Subpart 2--National Technology Activities
``SEC. 2421. NATIONAL ACTIVITIES.
``(a) Study.--Using funds made available under section 2404(b)(2),
the Secretary--
``(1) shall conduct an independent, long-term study, utilizing
scientifically based research methods and control groups or control
conditions--
``(A) on the conditions and practices under which
educational technology is effective in increasing student
academic achievement; and
``(B) on the conditions and practices that increase the
ability of teachers to integrate technology effectively into
curricula and instruction, that enhance the learning
environment and opportunities, and that increase student
academic achievement, including technology literacy;
``(2) shall establish an independent review panel to advise the
Secretary on methodological and other issues that arise in
conducting the long-term study;
``(3) shall consult with other interested Federal departments
or agencies, State and local educational practitioners and
policymakers (including teachers, principals, and superintendents),
and experts in technology, regarding the study; and
``(4) shall submit to Congress interim reports, when
appropriate, and a final report, to be submitted not later than
April 1, 2006, on the findings of the study.
``(b) Dissemination.--Using funds made available under section
2404(b)(2), the Secretary shall make widely available, including
through dissemination on the Internet and to all State educational
agencies and other recipients of funds under this part, findings
identified through activities carried out under this section regarding
the conditions and practices under which educational technology is
effective in increasing student academic achievement.
``(c) Technical Assistance.--Using funds made available under
section 2404(b)(2), the Secretary may provide technical assistance
(directly or through the competitive award of grants or contracts) to
State educational agencies, local educational agencies, and other
recipients of funds, particularly in rural areas, under this part, in
order to assist such State educational agencies, local educational
agencies, and other recipients to achieve the purposes of this part.
``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN.
``(a) In General.--Based on the Nation's progress and an assessment
by the Secretary of the continuing and future needs of the Nation's
schools in effectively using technology to provide all students the
opportunity to meet challenging State academic content and student
academic achievement standards, the Secretary shall update and publish,
in a form readily accessible to the public, a national long-range
technology plan, by not later than 12 months after the date of
enactment of the No Child Left Behind Act of 2001.
``(b) Contents.--The plan referred to in subsection (a) shall
include each of the following:
``(1) A description of the manner in which the Secretary will
promote--
``(A) higher student academic achievement through the
integration of advanced technologies, including emerging
technologies, into curricula and instruction;
``(B) increased access to technology for teaching and
learning for schools with a high number or percentage of
children from families with incomes below the poverty line; and
``(C) the use of technology to assist in the implementation
of State systemic reform strategies.
``(2) A description of joint activities of the Department of
Education and other Federal departments or agencies that will
promote the use of technology in education.
``Subpart 3--Ready-to-Learn Television
``SEC. 2431. READY-TO-LEARN TELEVISION.
``(a) Program Authorized.--
``(1) In general.--The Secretary is authorized to award grants
to, or enter into contracts or cooperative agreements with,
eligible entities described in paragraph (3) to enable such
entities--
``(A) to develop, produce, and distribute educational and
instructional video programming for preschool and elementary
school children and their parents in order to facilitate
student academic achievement;
``(B) to facilitate the development, directly or through
contracts with producers of children and family educational
television programming, of educational programming for
preschool and elementary school children, and the accompanying
support materials and services that promote the effective use
of such programming;
``(C) to facilitate the development of programming and
digital content containing Ready-to-Learn-based children's
programming and resources for parents and caregivers that is
specially designed for nationwide distribution over public
television stations' digital broadcasting channels and the
Internet;
``(D) to contract with entities (such as public
telecommunications entities) so that programs developed under
this section are disseminated and distributed to the widest
possible audience appropriate to be served by the programming,
and through the use of the most appropriate distribution
technologies; and
``(E) to develop and disseminate education and training
materials, including interactive programs and programs
adaptable to distance learning technologies, that are
designed--
``(i) to promote school readiness; and
``(ii) to promote the effective use of materials
developed under subparagraphs (B) and (C) among parents,
teachers, Head Start providers, Even Start providers,
providers of family literacy services, child care
providers, early childhood development personnel,
elementary school teachers, public libraries, and after-
school program personnel caring for preschool and
elementary school children.
``(2) Availability.--In awarding grants, contracts, or
cooperative agreements under this section, the Secretary shall
ensure that eligible entities make programming widely available,
with support materials as appropriate, to young children, parents,
child care workers, Head Start providers, Even Start providers, and
providers of family literacy services to increase the effective use
of such programming.
``(3) Eligible entities.--To be eligible to receive a grant,
contract, or cooperative agreements under this section, an entity
shall be a public telecommunications entity that is able to
demonstrate each of the following:
``(A) A capacity for the development and national
distribution of educational and instructional television
programming of high quality that is accessible by a large
majority of disadvantaged preschool and elementary school
children.
``(B) A capacity to contract with the producers of
children's television programming for the purpose of developing
educational television programming of high quality.
``(C) A capacity, consistent with the entity's mission and
nonprofit nature, to negotiate such contracts in a manner that
returns to the entity an appropriate share of any ancillary
income from sales of any program-related products.
``(D) A capacity to localize programming and materials to
meet specific State and local needs and to provide educational
outreach at the local level.
``(4) Coordination of activities.--An entity receiving a grant,
contract, or cooperative agreement under this section shall consult
with the Secretary and the Secretary of Health and Human Services--
``(A) to maximize the utilization of quality educational
programming by preschool and elementary school children, and
make such programming widely available to federally funded
programs serving such populations; and
``(B) to coordinate activities with Federal programs that
have major training components for early childhood development,
including programs under the Head Start Act (42 U.S.C. 9831 et
seq.) and Even Start, and State training activities funded
under the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858 et seq.), regarding the availability and
utilization of materials developed under paragraph (1)(E) to
enhance parent and child care provider skills in early
childhood development and education.
``(b) Applications.--To be eligible to receive a grant, contract,
or cooperative agreement under subsection (a), an entity shall submit
to the Secretary an application at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(c) Reports and Evaluations.--
``(1) Annual report to the secretary.--An entity receiving a
grant, contract, or cooperative agreement under this section shall
prepare and submit to the Secretary an annual report that contains
such information as the Secretary may require. At a minimum, the
report shall describe the program activities undertaken with funds
received under the grant, contract, or cooperative agreement,
including each of the following:
``(A) The programming that has been developed, directly or
indirectly, by the eligible entity, and the target population
of the programs developed.
``(B) The support and training materials that have been
developed to accompany the programming, and the method by which
the materials are distributed to consumers and users of the
programming.
``(C) The means by which programming developed under this
section has been distributed, including the distance learning
technologies that have been utilized to make programming
available, and the geographic distribution achieved through
such technologies.
``(D) The initiatives undertaken by the entity to develop
public-private partnerships to secure non-Federal support for
the development, distribution, and broadcast of educational and
instructional programming.
``(2) Report to congress.--The Secretary shall prepare and
submit to the relevant committees of Congress a biannual report
that includes the following:
``(A) A summary of the activities assisted under subsection
(a).
``(B) A description of the education and training materials
made available under subsection (a)(1)(E), the manner in which
outreach has been conducted to inform parents and child care
providers of the availability of such materials, and the manner
in which such materials have been distributed in accordance
with such subsection.
``(d) Administrative Costs.--An entity that receives a grant,
contract, or cooperative agreement under this section may use up to 5
percent of the amount received under the grant, contract, or agreement
for the normal and customary expenses of administering the grant,
contract, or agreement.
``(e) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
carry out this section such sums as may be necessary for fiscal
year 2002, and for each of the 5 succeeding fiscal years.
``(2) Funding rule.--Not less than 60 percent of the amount
appropriated under paragraph (1) for each fiscal year shall be used
to carry out activities under subparagraphs (B) through (D) of
subsection (a)(1).
``Subpart 4--Limitation on Availability of Certain Funds for Schools
``SEC. 2441. INTERNET SAFETY.
``(a) In General.--No funds made available under this part to a
local educational agency for an elementary school or secondary school
that does not receive services at discount rates under section
254(h)(5) of the Communications Act of 1934 (47 U.S.C. 254(h)(5)) may
be used to purchase computers used to access the Internet, or to pay
for direct costs associated with accessing the Internet, for such
school unless the school, school board, local educational agency, or
other authority with responsibility for administration of such school
both--
``(1)(A) has in place a policy of Internet safety for minors
that includes the operation of a technology protection measure with
respect to any of its computers with Internet access that protects
against access through such computers to visual depictions that
are--
``(i) obscene;
``(ii) child pornography; or
``(iii) harmful to minors; and
``(B) is enforcing the operation of such technology protection
measure during any use of such computers by minors; and
``(2)(A) has in place a policy of Internet safety that includes
the operation of a technology protection measure with respect to
any of its computers with Internet access that protects against
access through such computers to visual depictions that are--
``(i) obscene; or
``(ii) child pornography; and
``(B) is enforcing the operation of such technology protection
measure during any use of such computers.
``(b) Timing and Applicability of Implementation.--
``(1) In general.--The local educational agency with
responsibility for a school covered by subsection (a) shall certify
the compliance of such school with the requirements of subsection
(a) as part of the application process for the next program funding
year under this Act following December 21, 2000, and for each
subsequent program funding year thereafter.
``(2) Process.--
``(A) Schools with internet safety policies and technology
protection measures in place.--A local educational agency with
responsibility for a school covered by subsection (a) that has
in place an Internet safety policy meeting the requirements of
subsection (a) shall certify its compliance with subsection (a)
during each annual program application cycle under this Act.
``(B) Schools without internet safety policies and
technology protection measures in place.--
``(i) Certification.--A local educational agency with
responsibility for a school covered by subsection (a) that
does not have in place an Internet safety policy meeting
the requirements of subsection (a)--
``(I) for the first program year after December 21,
2000, in which the local educational agency is applying
for funds for such school under this Act, shall certify
that it is undertaking such actions, including any
necessary procurement procedures, to put in place an
Internet safety policy that meets such requirements;
and
``(II) for the second program year after December
21, 2000, in which the local educational agency is
applying for funds for such school under this Act,
shall certify that such school is in compliance with
such requirements.
``(ii) Ineligibility.--Any school covered by subsection
(a) for which the local educational agency concerned is
unable to certify compliance with such requirements in such
second program year shall be ineligible for all funding
under this part for such second program year and all
subsequent program years until such time as such school
comes into compliance with such requirements.
``(C) Waivers.--Any school subject to a certification under
subparagraph (B)(i)(II) for which the local educational agency
concerned cannot make the certification otherwise required by
that subparagraph may seek a waiver of that subparagraph if
State or local procurement rules or regulations or competitive
bidding requirements prevent the making of the certification
otherwise required by that subparagraph. The local educational
agency concerned shall notify the Secretary of the
applicability of that subparagraph to the school. Such notice
shall certify that the school will be brought into compliance
with the requirements in subsection (a) before the start of the
third program year after December 21, 2000, in which the school
is applying for funds under this part.
``(c) Disabling During Certain Use.--An administrator, supervisor,
or person authorized by the responsible authority under subsection (a)
may disable the technology protection measure concerned to enable
access for bona fide research or other lawful purposes.
``(d) Noncompliance.--
``(1) Use of general education provisions act remedies.--
Whenever the Secretary has reason to believe that any recipient of
funds under this part is failing to comply substantially with the
requirements of this section, the Secretary may--
``(A) withhold further payments to the recipient under this
part;
``(B) issue a complaint to compel compliance of the
recipient through a cease and desist order; or
``(C) enter into a compliance agreement with a recipient to
bring it into compliance with such requirements,
in same manner as the Secretary is authorized to take such actions
under sections 455, 456, and 457, respectively, of the General
Education Provisions Act.
``(2) Recovery of funds prohibited.--The actions authorized by
paragraph (1) are the exclusive remedies available with respect to
the failure of a school to comply substantially with a provision of
this section, and the Secretary shall not seek a recovery of funds
from the recipient for such failure.
``(3) Recommencement of payments.--Whenever the Secretary
determines (whether by certification or other appropriate evidence)
that a recipient of funds who is subject to the withholding of
payments under paragraph (1)(A) has cured the failure providing the
basis for the withholding of payments, the Secretary shall cease
the withholding of payments to the recipient under that paragraph.
``(e) Definitions.--In this subpart:
``(1) Computer.--The term `computer' includes any hardware,
software, or other technology attached or connected to, installed
in, or otherwise used in connection with a computer.
``(2) Access to internet.--A computer shall be considered to
have access to the Internet if such computer is equipped with a
modem or is connected to a computer network that has access to the
Internet.
``(3) Acquisition or operation.--An elementary school or
secondary school shall be considered to have received funds under
this part for the acquisition or operation of any computer if such
funds are used in any manner, directly or indirectly--
``(A) to purchase, lease, or otherwise acquire or obtain
the use of such computer; or
``(B) to obtain services, supplies, software, or other
actions or materials to support, or in connection with, the
operation of such computer.
``(4) Minor.--The term `minor' means an individual who has not
attained the age of 17.
``(5) Child pornography.--The term `child pornography' has the
meaning given that term in section 2256 of title 18, United States
Code.
``(6) Harmful to minors.--The term `harmful to minors' means
any picture, image, graphic image file, or other visual depiction
that--
``(A) taken as a whole and with respect to minors, appeals
to a prurient interest in nudity, sex, or excretion;
``(B) depicts, describes, or represents, in a patently
offensive way with respect to what is suitable for minors, an
actual or simulated sexual act or sexual contact, actual or
simulated normal or perverted sexual acts, or a lewd exhibition
of the genitals; and
``(C) taken as a whole, lacks serious literary, artistic,
political, or scientific value as to minors.
``(7) Obscene.--The term `obscene' has the meaning applicable
to that term under section 1460 of title 18, United States Code.
``(8) Sexual act and sexual contact.--The terms `sexual act'
and `sexual contact' have the meanings given those terms in section
2246 of title 18, United States Code.
``(f) Severability.--If any provision of this section is held
invalid, the remainder of this section shall not be affected
thereby.''.
SEC. 202. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act or the Elementary
and Secondary Education Act of 1965, in the case of--
(1) a person or entity that, prior to the date of enactment of
this Act, was awarded funds appropriated under the Department of
Education Appropriations Act, 2001 for new teacher recruitment
initiatives; or
(2) a person or agency that, prior to the date of enactment of
this Act, was awarded a grant or contract under part K of title X
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8331 et seq.),
the Secretary of Education shall continue to provide funds in
accordance with the terms of such award until the date on which the
award period terminates.
TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
SEC. 301. LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT CHILDREN
AND IMMIGRANT CHILDREN AND YOUTH.
Title III (20 U.S.C. 6801 et seq.) is amended to read as follows:
``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
``SEC. 3001. AUTHORIZATIONS OF APPROPRIATIONS; CONDITION ON
EFFECTIVENESS OF PARTS.
``(a) Authorizations of Appropriations.--
``(1) In general.--Subject to subsection (b), there are
authorized to be appropriated to carry out this title, except for
subpart 4 of part B, $750,000,000 for fiscal year 2002 and such
sums as may be necessary for each of the 5 succeeding fiscal years.
``(2) Emergency immigrant education program.--There are
authorized to be appropriated to carry out subpart 4 of part B
(when such part is in effect) such sums as may be necessary for
fiscal year 2002 and each of the 5 succeeding fiscal years.
``(b) Conditions on Effectiveness of Parts A and B.--
``(1) Part a.--Part A shall be in effect for any fiscal year
for which the amount appropriated under paragraphs (1) and (2) of
subsection (a) equals or exceeds $650,000,000.
``(2) Part b.--Part B shall be in effect only for a fiscal year
for which part A is not in effect.
``(c) References.--In any fiscal year for which part A is in
effect, references in Federal law (other than this title) to part B
shall be considered to be references to part A. In any fiscal year for
which part B is in effect, references in Federal law (other than this
title) to part A shall be considered to be references to part B.
``PART A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND
ACADEMIC ACHIEVEMENT ACT
``SEC. 3101. SHORT TITLE.
``This part may be cited as the `English Language Acquisition,
Language Enhancement, and Academic Achievement Act'.
``SEC. 3102. PURPOSES.
``The purposes of this part are--
``(1) to help ensure that children who are limited English
proficient, including immigrant children and youth, attain English
proficiency, develop high levels of academic attainment in English,
and meet the same challenging State academic content and student
academic achievement standards as all children are expected to
meet;
``(2) to assist all limited English proficient children,
including immigrant children and youth, to achieve at high levels
in the core academic subjects so that those children can meet the
same challenging State academic content and student academic
achievement standards as all children are expected to meet,
consistent with section 1111(b)(1);
``(3) to develop high-quality language instruction educational
programs designed to assist State educational agencies, local
educational agencies, and schools in teaching limited English
proficient children and serving immigrant children and youth;
``(4) to assist State educational agencies and local
educational agencies to develop and enhance their capacity to
provide high-quality instructional programs designed to prepare
limited English proficient children, including immigrant children
and youth, to enter all-English instruction settings;
``(5) to assist State educational agencies, local educational
agencies, and schools to build their capacity to establish,
implement, and sustain language instruction educational programs
and programs of English language development for limited English
proficient children;
``(6) to promote parental and community participation in
language instruction educational programs for the parents and
communities of limited English proficient children;
``(7) to streamline language instruction educational programs
into a program carried out through formula grants to State
educational agencies and local educational agencies to help limited
English proficient children, including immigrant children and
youth, develop proficiency in English, while meeting challenging
State academic content and student academic achievement standards;
``(8) to hold State educational agencies, local educational
agencies, and schools accountable for increases in English
proficiency and core academic content knowledge of limited English
proficient children by requiring--
``(A) demonstrated improvements in the English proficiency
of limited English proficient children each fiscal year; and
``(B) adequate yearly progress for limited English
proficient children, including immigrant children and youth, as
described in section 1111(b)(2)(B); and
``(9) to provide State educational agencies and local
educational agencies with the flexibility to implement language
instruction educational programs, based on scientifically based
research on teaching limited English proficient children, that the
agencies believe to be the most effective for teaching English.
``Subpart 1--Grants and Subgrants for English Language Acquisition and
Language Enhancement
``SEC. 3111. FORMULA GRANTS TO STATES.
``(a) In General.--In the case of each State educational agency
having a plan approved by the Secretary for a fiscal year under section
3113, the Secretary shall make a grant for the year to the agency for
the purposes specified in subsection (b). The grant shall consist of
the allotment determined for the State educational agency under
subsection (c).
``(b) Use of Funds.--
``(1) Subgrants to eligible entities.--The Secretary may make a
grant under subsection (a) only if the State educational agency
involved agrees to expend at least 95 percent of the State
educational agency's allotment under subsection (c) for a fiscal
year--
``(A) to award subgrants, from allocations under section
3114, to eligible entities to carry out the activities
described in section 3115 (other than subsection (e)); and
``(B) to award subgrants under section 3114(d)(1) to
eligible entities that are described in that section to carry
out the activities described in section 3115(e).
``(2) State activities.--Subject to paragraph (3), each State
educational agency receiving a grant under subsection (a) may
reserve not more than 5 percent of the agency's allotment under
subsection (c) to carry out one or more of the following
activities:
``(A) Professional development activities, and other
activities, that assist personnel in meeting State and local
certification and licensing requirements for teaching limited
English proficient children.
``(B) Planning, evaluation, administration, and interagency
coordination related to the subgrants referred to in paragraph
(1).
``(C) Providing technical assistance and other forms of
assistance to eligible entities that are receiving subgrants
from a State educational agency under this subpart, including
assistance in--
``(i) identifying and implementing language instruction
educational programs and curricula that are based on
scientifically based research on teaching limited English
proficient children;
``(ii) helping limited English proficient children meet
the same challenging State academic content and student
academic achievement standards as all children are expected
to meet;
``(iii) identifying or developing, and implementing,
measures of English proficiency; and
``(iv) promoting parental and community participation
in programs that serve limited English proficient children.
``(D) Providing recognition, which may include providing
financial awards, to subgrantees that have exceeded their
annual measurable achievement objectives pursuant to section
3122.
``(3) Administrative expenses.--From the amount reserved under
paragraph (2), a State educational agency may use not more than 60
percent of such amount or $175,000, whichever is greater, for the
planning and administrative costs of carrying out paragraphs (1)
and (2).
``(c) Reservations and Allotments.--
``(1) Reservations.--From the amount appropriated under section
3001(a) for each fiscal year, the Secretary shall reserve--
``(A) 0.5 percent or $5,000,000 of such amount, whichever
is greater, for payments to eligible entities that are defined
under section 3112(a) for activities, approved by the
Secretary, consistent with this subpart;
``(B) 0.5 percent of such amount for payments to outlying
areas, to be allotted in accordance with their respective needs
for assistance under this subpart, as determined by the
Secretary, for activities, approved by the Secretary,
consistent with this subpart;
``(C) 6.5 percent of such amount for national activities
under sections 3131 and 3303, except that not more than 0.5
percent of such amount shall be reserved for evaluation
activities conducted by the Secretary and not more than
$2,000,000 of such amount may be reserved for the National
Clearinghouse for English Language Acquisition and Language
Instruction Educational Programs described in section 3303; and
``(D) such sums as may be necessary to make continuation
awards under paragraph (2).
``(2) Continuation awards.--
``(A) In general.--Before making allotments to State
educational agencies under paragraph (3) for any fiscal year,
the Secretary shall use the sums reserved under paragraph
(1)(D) to make continuation awards to recipients who received
grants or fellowships for the fiscal year preceding any fiscal
year described in section 3001(b)(1)(A) under--
``(i) subparts 1 and 3 of part A of title VII (as in
effect on the day before the date of enactment of the No
Child Left Behind Act of 2001); or
``(ii) subparts 1 and 3 of part B of this title.
``(B) Use of funds.--The Secretary shall make the awards in
order to allow such recipients to receive awards for the
complete period of their grants or fellowships under the
appropriate subparts.
``(3) State allotments.--
``(A) In general.--Except as provided in subparagraph (B),
from the amount appropriated under section 3001(a) for each
fiscal year that remains after making the reservations under
paragraph (1), the Secretary shall allot to each State
educational agency having a plan approved under section
3113(c)--
``(i) an amount that bears the same relationship to 80
percent of the remainder as the number of limited English
proficient children in the State bears to the number of
such children in all States; and
``(ii) an amount that bears the same relationship to 20
percent of the remainder as the number of immigrant
children and youth in the State bears to the number of such
children and youth in all States.
``(B) Minimum allotments.--No State educational agency
shall receive an allotment under this paragraph that is less
than $500,000.
``(C) Reallotment.--If any State educational agency
described in subparagraph (A) does not submit a plan to the
Secretary for a fiscal year, or submits a plan (or any
amendment to a plan) that the Secretary, after reasonable
notice and opportunity for a hearing, determines does not
satisfy the requirements of this subpart, the Secretary--
``(i) shall endeavor to make the State's allotment
available on a competitive basis to specially qualified
agencies within the State to satisfy the requirements of
section 3115 (and any additional requirements that the
Secretary may impose), consistent with the purposes of such
section, and to carry out required and authorized
activities under such section; and
``(ii) shall reallot any portion of such allotment
remaining after the application of clause (i) to the
remaining State educational agencies in accordance with
subparagraph (A).
``(D) Special rule for puerto rico.--The total amount
allotted to Puerto Rico for any fiscal year under subparagraph
(A) shall not exceed 0.5 percent of the total amount allotted
to all States for that fiscal year.
``(4) Use of data for determinations.--
``(A) In general.--In making State allotments under
paragraph (3), for the purpose of determining the number of
limited English proficient children in a State and in all
States, and the number of immigrant children and youth in a
State and in all States, for each fiscal year, the Secretary
shall use data that will yield the most accurate, up-to-date
numbers of such children and youth.
``(B) Special rule.--
``(i) First 2 years.--In making determinations under
subparagraph (A) for the 2 fiscal years following the date
of enactment of the No Child Left Behind Act of 2001, the
Secretary shall determine the number of limited English
proficient children in a State and in all States, and the
number of immigrant children and youth in a State and in
all States, using data available from the Bureau of Census
or submitted by the States to the Secretary.
``(ii) Subsequent years.--For subsequent fiscal years,
the Secretary shall determine the number of limited English
proficient children in a State and in all States, and the
number of immigrant children and youth in a State and in
all States, using the more accurate of--
``(I) the data available from the American
Community Survey available from the Department of
Commerce; or
``(II) the number of children being assessed for
English proficiency in a State as required under
section 1111(b)(7).
``SEC. 3112. NATIVE AMERICAN AND ALASKA NATIVE CHILDREN IN SCHOOL.
``(a) Eligible Entities.--For the purpose of carrying out programs
under this part for individuals served by elementary schools, secondary
schools, and postsecondary schools operated predominately for Native
American children (including Alaska Native children), the following
shall be considered to be an eligible entity:
``(1) An Indian tribe.
``(2) A tribally sanctioned educational authority.
``(3) A Native Hawaiian or Native American Pacific Islander
native language educational organization.
``(4) An elementary school or secondary school that is operated
or funded by the Bureau of Indian Affairs, or a consortium of such
schools.
``(5) An elementary school or secondary school operated under a
contract with or grant from the Bureau of Indian Affairs, in
consortium with another such school or a tribal or community
organization.
``(6) An elementary school or secondary school operated by the
Bureau of Indian Affairs and an institution of higher education, in
consortium with an elementary school or secondary school operated
under a contract with or grant from the Bureau of Indian Affairs or
a tribal or community organization.
``(b) Submission of Applications for Assistance.--Notwithstanding
any other provision of this part, an entity that is considered to be an
eligible entity under subsection (a), and that desires to receive
Federal financial assistance under this subpart, shall submit an
application to the Secretary.
``(c) Special Rule.--An eligible entity described in subsection (a)
that receives Federal financial assistance pursuant to this section
shall not be eligible to receive a subgrant under section 3114.
``SEC. 3113. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.
``(a) Plan Required.--Each State educational agency and specially
qualified agency desiring a grant under this subpart shall submit a
plan to the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(b) Contents.--Each plan submitted under subsection (a) shall--
``(1) describe the process that the agency will use in making
subgrants to eligible entities under section 3114(d)(1);
``(2) describe how the agency will establish standards and
objectives for raising the level of English proficiency that are
derived from the four recognized domains of speaking, listening,
reading, and writing, and that are aligned with achievement of the
challenging State academic content and student academic achievement
standards described in section 1111(b)(1);
``(3) contain an assurance that--
``(A) in the case of a State educational agency, the agency
consulted with local educational agencies, education-related
community groups and nonprofit organizations, parents,
teachers, school administrators, and researchers, in developing
the annual measurable achievement objectives described in
section 3122;
``(B) in the case of a specially qualified agency, the
agency consulted with education-related community groups and
nonprofit organizations, parents, teachers, and researchers, in
developing the annual measurable achievement objectives
described in section 3122;
``(C) the agency will ensure that eligible entities
receiving a subgrant under this subpart comply with the
requirement in section 1111(b)(7) to annually assess in English
children who have been in the United States for 3 or more
consecutive years;
``(D) the agency will ensure that eligible entities
receiving a subgrant under this subpart annually assess the
English proficiency of all limited English proficient children
participating in a program funded under this subpart,
consistent with section 1111(b)(7);
``(E) in awarding subgrants under section 3114, the agency
will address the needs of school systems of all sizes and in
all geographic areas, including school systems with rural and
urban schools;
``(F) subgrants to eligible entities under section
3114(d)(1) will be of sufficient size and scope to allow such
entities to carry out high-quality language instruction
educational programs for limited English proficient children;
and
``(G) the agency will require an eligible entity receiving
a subgrant under this subpart to use the subgrant in ways that
will build such recipient's capacity to continue to offer high-
quality language instruction educational programs that assist
limited English proficient children in meeting challenging
State academic content and student academic achievement
standards once assistance under this subpart is no longer
available;
``(4) describe how the agency will coordinate its programs and
activities under this subpart with its other programs and
activities under this Act and other Acts, as appropriate;
``(5) describe how the agency will hold local educational
agencies, eligible entities, elementary schools, and secondary
schools accountable for--
``(A) meeting all annual measurable achievement objectives
described in section 3122;
``(B) making adequate yearly progress for limited English
proficient children, as described in section 1111(b)(2)(B); and
``(C) achieving the purposes of this part; and
``(6) describe how eligible entities in the State will be given
the flexibility to teach limited English proficient children--
``(A) using a language instruction curriculum that is tied
to scientifically based research on teaching limited English
proficient children and that has been demonstrated to be
effective; and
``(B) in the manner the eligible entities determine to be
the most effective.
``(c) Approval.--The Secretary, after using a peer review process,
shall approve a plan submitted under subsection (a) if the plan meets
the requirements of this section.
``(d) Duration of Plan.--
``(1) In general.--Each plan submitted by a State educational
agency or specially qualified agency and approved under subsection
(c) shall--
``(A) remain in effect for the duration of the agency's
participation under this part; and
``(B) be periodically reviewed and revised by the agency,
as necessary, to reflect changes to the agency's strategies and
programs carried out under this part.
``(2) Additional information.--
``(A) Amendments.--If the State educational agency or
specially qualified agency amends the plan, the agency shall
submit such amendment to the Secretary.
``(B) Approval.--The Secretary shall approve such amendment
to an approved plan, unless the Secretary determines that the
amendment will result in the agency not meeting the
requirements, or fulfilling the purposes, of this part.
``(e) Consolidated Plan.--A plan submitted under subsection (a) may
be submitted as part of a consolidated plan under section 9302.
``(f) Secretary Assistance.--The Secretary shall provide technical
assistance, if requested, in the development of English proficiency
standards, objectives, and assessments.
``SEC. 3114. WITHIN-STATE ALLOCATIONS.
``(a) In General.--After making the reservation required under
subsection (d)(1), each State educational agency receiving a grant
under section 3111(c)(3) shall award subgrants for a fiscal year by
allocating to each eligible entity in the State having a plan approved
under section 3116 an amount that bears the same relationship to the
amount received under the grant and remaining after making such
reservation as the population of limited English proficient children in
schools served by the eligible entity bears to the population of
limited English proficient children in schools served by all eligible
entities in the State.
``(b) Limitation.--A State educational agency shall not award a
subgrant from an allocation made under subsection (a) if the amount of
such subgrant would be less than $10,000.
``(c) Reallocation.--Whenever a State educational agency determines
that an amount from an allocation made to an eligible entity under
subsection (a) for a fiscal year will not be used by the entity for the
purpose for which the allocation was made, the agency shall, in
accordance with such rules as it determines to be appropriate,
reallocate such amount, consistent with such subsection, to other
eligible entities in the State that the agency determines will use the
amount to carry out that purpose.
``(d) Required Reservation.--A State educational agency receiving a
grant under this subpart for a fiscal year--
``(1) shall reserve not more than 15 percent of the agency's
allotment under section 3111(c)(3) to award subgrants to eligible
entities in the State that have experienced a significant increase,
as compared to the average of the 2 preceding fiscal years, in the
percentage or number of immigrant children and youth, who have
enrolled, during the fiscal year preceding the fiscal year for
which the subgrant is made, in public and nonpublic elementary
schools and secondary schools in the geographic areas under the
jurisdiction of, or served by, such entities; and
``(2) in awarding subgrants under paragraph (1)--
``(A) shall equally consider eligible entities that satisfy
the requirement of such paragraph but have limited or no
experience in serving immigrant children and youth; and
``(B) shall consider the quality of each local plan under
section 3116 and ensure that each subgrant is of sufficient
size and scope to meet the purposes of this part.
``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES.
``(a) Purposes of Subgrants.--A State educational agency may make a
subgrant to an eligible entity from funds received by the agency under
this subpart only if the entity agrees to expend the funds to improve
the education of limited English proficient children, by assisting the
children to learn English and meet challenging State academic content
and student academic achievement standards. In carrying out activities
with such funds, the entity shall use approaches and methodologies
based on scientifically based research on teaching limited English
proficient children and immigrant children and youth for the following
purposes:
``(1) Developing and implementing new language instruction
educational programs and academic content instruction programs for
such children, and such children and youth, including programs of
early childhood education, elementary school programs, and
secondary school programs.
``(2) Carrying out highly focused, innovative, locally designed
activities to expand or enhance existing language instruction
educational programs and academic content instruction programs for
such children, and such children and youth.
``(3) Implementing, within an individual school, schoolwide
programs for restructuring, reforming, and upgrading all relevant
programs, activities, and operations relating to language
instruction educational programs and academic content instruction
for such children, and such children and youth.
``(4) Implementing, within the entire jurisdiction of a local
educational agency, agencywide programs for restructuring,
reforming, and upgrading all relevant programs, activities, and
operations relating to language instruction educational programs
and academic content instruction for such children, and such
children and youth.
``(b) Administrative Expenses.--Each eligible entity receiving
funds under section 3114(a) for a fiscal year may use not more than 2
percent of such funds for the cost of administering this subpart.
``(c) Required Subgrantee Activities.--An eligible entity receiving
funds under section 3114(a) shall use the funds--
``(1) to increase the English proficiency of limited English
proficient children by providing high-quality language instruction
educational programs that are based on scientifically based
research demonstrating the effectiveness of the programs in
increasing--
``(A) English proficiency; and
``(B) student academic achievement in the core academic
subjects; and
``(2) to provide high-quality professional development to
classroom teachers (including teachers in classroom settings that
are not the settings of language instruction educational programs),
principals, administrators, and other school or community-based
organizational personnel, that is--
``(A) designed to improve the instruction and assessment of
limited English proficient children;
``(B) designed to enhance the ability of such teachers to
understand and use curricula, assessment measures, and
instruction strategies for limited English proficient children;
``(C) based on scientifically based research demonstrating
the effectiveness of the professional development in increasing
children's English proficiency or substantially increasing the
subject matter knowledge, teaching knowledge, and teaching
skills of such teachers; and
``(D) of sufficient intensity and duration (which shall not
include activities such as one-day or short-term workshops and
conferences) to have a positive and lasting impact on the
teachers' performance in the classroom, except that this
subparagraph shall not apply to an activity that is one
component of a long-term, comprehensive professional
development plan established by a teacher and the teacher's
supervisor based on an assessment of the needs of the teacher,
the supervisor, the students of the teacher, and any local
educational agency employing the teacher.
``(d) Authorized Subgrantee Activities.--Subject to subsection (c),
an eligible entity receiving funds under section 3114(a) may use the
funds to achieve one of the purposes described in subsection (a) by
undertaking one or more of the following activities:
``(1) Upgrading program objectives and effective instruction
strategies.
``(2) Improving the instruction program for limited English
proficient children by identifying, acquiring, and upgrading
curricula, instruction materials, educational software, and
assessment procedures.
``(3) Providing--
``(A) tutorials and academic or vocational education for
limited English proficient children; and
``(B) intensified instruction.
``(4) Developing and implementing elementary school or
secondary school language instruction educational programs that are
coordinated with other relevant programs and services.
``(5) Improving the English proficiency and academic
achievement of limited English proficient children.
``(6) Providing community participation programs, family
literacy services, and parent outreach and training activities to
limited English proficient children and their families--
``(A) to improve the English language skills of limited
English proficient children; and
``(B) to assist parents in helping their children to
improve their academic achievement and becoming active
participants in the education of their children.
``(7) Improving the instruction of limited English proficient
children by providing for--
``(A) the acquisition or development of educational
technology or instructional materials;
``(B) access to, and participation in, electronic networks
for materials, training, and communication; and
``(C) incorporation of the resources described in
subparagraphs (A) and (B) into curricula and programs, such as
those funded under this subpart.
``(8) Carrying out other activities that are consistent with
the purposes of this section.
``(e) Activities by Agencies Experiencing Substantial Increases in
Immigrant Children and Youth.--
``(1) In general.--An eligible entity receiving funds under
section 3114(d)(1) shall use the funds to pay for activities that
provide enhanced instructional opportunities for immigrant children
and youth, which may include--
``(A) family literacy, parent outreach, and training
activities designed to assist parents to become active
participants in the education of their children;
``(B) support for personnel, including teacher aides who
have been specifically trained, or are being trained, to
provide services to immigrant children and youth;
``(C) provision of tutorials, mentoring, and academic or
career counseling for immigrant children and youth;
``(D) identification and acquisition of curricular
materials, educational software, and technologies to be used in
the program carried out with funds;
``(E) basic instruction services that are directly
attributable to the presence in the school district involved of
immigrant children and youth, including the payment of costs of
providing additional classroom supplies, costs of
transportation, or such other costs as are directly
attributable to such additional basic instruction services;
``(F) other instruction services that are designed to
assist immigrant children and youth to achieve in elementary
schools and secondary schools in the United States, such as
programs of introduction to the educational system and civics
education; and
``(G) activities, coordinated with community-based
organizations, institutions of higher education, private sector
entities, or other entities with expertise in working with
immigrants, to assist parents of immigrant children and youth
by offering comprehensive community services.
``(2) Duration of subgrants.--The duration of a subgrant made
by a State educational agency under section 3114(d)(1) shall be
determined by the agency in its discretion.
``(f) Selection of Method of Instruction.--
``(1) In general.--To receive a subgrant from a State
educational agency under this subpart, an eligible entity shall
select one or more methods or forms of instruction to be used in
the programs and activities undertaken by the entity to assist
limited English proficient children to attain English proficiency
and meet challenging State academic content and student academic
achievement standards.
``(2) Consistency.--Such selection shall be consistent with
sections 3125 through 3127.
``(g) Supplement, Not Supplant.--Federal funds made available under
this subpart shall be used so as to supplement the level of Federal,
State, and local public funds that, in the absence of such
availability, would have been expended for programs for limited English
proficient children and immigrant children and youth and in no case to
supplant such Federal, State, and local public funds.
``SEC. 3116. LOCAL PLANS.
``(a) Plan Required.--Each eligible entity desiring a subgrant from
the State educational agency under section 3114 shall submit a plan to
the State educational agency at such time, in such manner, and
containing such information as the State educational agency may
require.
``(b) Contents.--Each plan submitted under subsection (a) shall--
``(1) describe the programs and activities proposed to be
developed, implemented, and administered under the subgrant;
``(2) describe how the eligible entity will use the subgrant
funds to meet all annual measurable achievement objectives
described in section 3122;
``(3) describe how the eligible entity will hold elementary
schools and secondary schools receiving funds under this subpart
accountable for--
``(A) meeting the annual measurable achievement objectives
described in section 3122;
``(B) making adequate yearly progress for limited English
proficient children, as described in section 1111(b)(2)(B); and
``(C) annually measuring the English proficiency of limited
English proficient children, so that such children served by
the programs carried out under this part develop proficiency in
English while meeting State academic content and student
academic achievement standards as required by section
1111(b)(1);
``(4) describe how the eligible entity will promote parental
and community participation in programs for limited English
proficient children;
``(5) contain an assurance that the eligible entity consulted
with teachers, researchers, school administrators, and parents,
and, if appropriate, with education-related community groups and
nonprofit organizations, and institutions of higher education, in
developing such plan; and
``(6) describe how language instruction educational programs
carried out under the subgrant will ensure that limited English
proficient children being served by the programs develop English
proficiency.
``(c) Teacher English Fluency.--Each eligible entity receiving a
subgrant under section 3114 shall include in its plan a certification
that all teachers in any language instruction educational program for
limited English proficient children that is, or will be, funded under
this part are fluent in English and any other language used for
instruction, including having written and oral communications skills.
``(d) Other Requirements for Approval.--Each local plan shall also
contain assurances that--
``(1) each local educational agency that is included in the
eligible entity is complying with section 3302 prior to, and
throughout, each school year;
``(2) the eligible entity annually will assess the English
proficiency of all children with limited English proficiency
participating in programs funded under this part;
``(3) the eligible entity has based its proposed plan on
scientifically based research on teaching limited English
proficient children;
``(4) the eligible entity will ensure that the programs will
enable children to speak, read, write, and comprehend the English
language and meet challenging State academic content and student
academic achievement standards; and
``(5) the eligible entity is not in violation of any State law,
including State constitutional law, regarding the education of
limited English proficient children, consistent with sections 3126
and 3127.
``Subpart 2--Accountability and Administration
``SEC. 3121. EVALUATIONS.
``(a) In General.--Each eligible entity that receives a subgrant
from a State educational agency under subpart 1 shall provide such
agency, at the conclusion of every second fiscal year during which the
subgrant is received, with an evaluation, in a form prescribed by the
agency, that includes--
``(1) a description of the programs and activities conducted by
the entity with funds received under subpart 1 during the 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 to attain
English proficiency (as measured consistent with subsection (d))
and meet challenging State academic content and student academic
achievement standards; and
``(3) in determining whether or not to continue funding for
specific programs or activities.
``(c) Evaluation Components.--An evaluation provided by an eligible
entity under subsection (a) shall--
``(1) provide an evaluation of children enrolled in a program
or activity conducted by the entity using funds under subpart 1
(including the percentage of children) who--
``(A) are making progress in attaining English proficiency,
including the percentage of children who have achieved English
proficiency;
``(B) have transitioned into classrooms not tailored to
limited English proficient children, and have a sufficient
level of English proficiency to permit them to achieve in
English and transition into classrooms not tailored to limited
English proficient children;
``(C) are meeting the same challenging State academic
content and student academic achievement standards as all
children are expected to meet; and
``(D) are not receiving waivers for the reading or language
arts assessments under section 1111(b)(3)(C); and
``(2) include such other information as the State educational
agency may require.
``(d) Evaluation Measures.--A State shall approve evaluation
measures for use under subsection (c) that are designed to assess--
``(1) the progress of children in attaining English
proficiency, including a child's level of comprehension, speaking,
listening, reading, and writing skills in English;
``(2) student attainment of challenging State student academic
achievement standards on assessments described in section
1111(b)(3); and
``(3) progress in meeting the annual measurable achievement
objectives described in section 3122.
``(e) Special Rule for Specially Qualified Agencies.--Each
specially qualified agency receiving a grant under this part shall
provide the evaluations described in subsection (a) to the Secretary
subject to the same requirements as apply to eligible entities
providing such evaluations to State educational agencies under such
subsection.
``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY.
``(a) Achievement Objectives.--
``(1) In general.--Each State educational agency or specially
qualified agency receiving a grant under subpart 1 shall develop
annual measurable achievement objectives for limited English
proficient children served under this part that relate to such
children's development and attainment of English proficiency while
meeting challenging State academic content and student academic
achievement standards as required by section 1111(b)(1).
``(2) Development of objectives.--Such annual measurable
achievement objectives shall be developed in a manner that--
``(A) reflects the amount of time an individual child has
been enrolled in a language instruction educational program;
and
``(B) uses consistent methods and measurements to reflect
the increases described in subparagraphs (A)(i), (A)(ii), and
(B) of paragraph (3).
``(3) Contents.--Such annual measurable achievement
objectives--
``(A) shall include--
``(i) at a minimum, annual increases in the number or
percentage of children making progress in learning English;
``(ii) at a minimum, annual increases in the number or
percentage of children attaining English proficiency by the
end of each school year, as determined by a valid and
reliable assessment of English proficiency consistent with
section 1111(b)(7); and
``(iii) making adequate yearly progress for limited
English proficient children as described in section
1111(b)(2)(B); and
``(B) at the discretion of the agency, may include the
number or percentage of children not receiving waivers for
reading or language arts assessments under section
1111(b)(3)(C), but this achievement objective shall not be
applied to an eligible entity that, in a given school year--
``(i) has experienced a large increase in limited
English proficient children or immigrant children and
youth;
``(ii) enrolls a statistically significant number of
immigrant children and youth from countries where such
children and youth had little or no access to formal
education; or
``(iii) has a statistically significant number of
immigrant children and youth who have fled from war or
natural disaster.
``(b) Accountability.--
``(1) For states.--Each State educational agency receiving a
grant under subpart 1 shall hold eligible entities receiving a
subgrant under such subpart accountable for meeting the annual
measurable achievement objectives under subsection (a), including
making adequate yearly progress for limited English proficient
children.
``(2) Improvement plan.--If a State educational agency
determines, based on the annual measurable achievement objectives
described in subsection (a), that an eligible entity has failed to
make progress toward meeting such objectives for 2 consecutive
years, the agency shall require the entity to develop an
improvement plan that will ensure that the entity meets such
objectives. The improvement plan shall specifically address the
factors that prevented the entity from achieving such objectives.
``(3) Technical assistance.--During the development of the
improvement plan described in paragraph (2), and throughout its
implementation, the State educational agency shall--
``(A) provide technical assistance to the eligible entity;
``(B) provide technical assistance, if applicable, to
schools served by such entity under subpart 1 that need
assistance to enable the schools to meet the annual measurable
achievement objectives described in subsection (a);
``(C) develop, in consultation with the entity,
professional development strategies and activities, based on
scientifically based research, that the agency will use to meet
such objectives;
``(D) require such entity to utilize such strategies and
activities; and
``(E) develop, in consultation with the entity, a plan to
incorporate strategies and methodologies, based on
scientifically based research, to improve the specific program
or method of instruction provided to limited English proficient
children.
``(4) Accountability.--If a State educational agency determines
that an eligible entity has failed to meet the annual measurable
achievement objectives described in subsection (a) for 4
consecutive years, the agency shall--
``(A) require such entity to modify the entity's
curriculum, program, and method of instruction; or
``(B)(i) make a determination whether the entity shall
continue to receive funds related to the entity's failure to
meet such objectives; and
``(ii) require such entity to replace educational personnel
relevant to the entity's failure to meet such objectives.
``(c) Special Rule for Specially Qualified Agencies.--The Secretary
shall hold specially qualified agencies receiving a grant under this
subpart accountable for meeting the annual measurable achievement
objectives described in subsection (a) in the same manner as State
educational agencies hold eligible entities accountable under
subsection (b).
``SEC. 3123. REPORTING REQUIREMENTS.
``(a) States.--Based upon the evaluations provided to a State
educational agency under section 3121, each such agency that receives a
grant under this part shall prepare and submit every second year to the
Secretary a report on programs and activities carried out by the State
educational agency under this part and the effectiveness of such
programs and activities in improving the education provided to children
who are limited English proficient.
``(b) Secretary.--Every second year, the Secretary shall prepare
and submit to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a report--
``(1) on programs and activities carried out to serve limited
English proficient children under this part, and the effectiveness
of such programs and activities in improving the academic
achievement and English proficiency of children who are limited
English proficient;
``(2) on the types of language instruction educational programs
used by local educational agencies or eligible entities receiving
funding under this part to teach limited English proficient
children;
``(3) containing a critical synthesis of data reported by
eligible entities to States under section 3121(a);
``(4) containing a description of technical assistance and
other assistance provided by State educational agencies under
section 3111(b)(2)(C);
``(5) containing an estimate of the number of certified or
licensed teachers working in language instruction educational
programs and educating limited English proficient children, and an
estimate of the number of such teachers that will be needed for the
succeeding 5 fiscal years;
``(6) containing the major findings of scientifically based
research carried out under this part;
``(7) containing the number of programs or activities, if any,
that were terminated because the entities carrying out the programs
or activities were not able to reach program goals;
``(8) containing the number of limited English proficient
children served by eligible entities receiving funding under this
part who were transitioned out of language instruction educational
programs funded under this part into classrooms where instruction
is not tailored for limited English proficient children; and
``(9) containing other information gathered from the
evaluations from specially qualified agencies and other reports
submitted to the Secretary under this title when applicable.
``SEC. 3124. COORDINATION WITH RELATED PROGRAMS.
``In order to maximize Federal efforts aimed at serving the
educational needs of children of limited English proficiency, the
Secretary shall coordinate and ensure close cooperation with other
entities carrying out programs serving language-minority and limited
English proficient children that are administered by the Department and
other agencies.
``SEC. 3125. RULES OF CONSTRUCTION.
``Nothing in this part shall be construed--
``(1) to prohibit a local educational agency from serving
limited English proficient children simultaneously with children
with similar educational needs, in the same educational settings
where appropriate;
``(2) to require a State or a local educational agency to
establish, continue, or eliminate any particular type of
instructional program for limited English proficient children; or
``(3) to limit the preservation or use of Native American
languages.
``SEC. 3126. LEGAL AUTHORITY UNDER STATE LAW.
``Nothing in this part shall be construed to negate or supersede
State law, or the legal authority under State law of any State agency,
State entity, or State public official, over programs that are under
the jurisdiction of the State agency, entity, or official.
``SEC. 3127. CIVIL RIGHTS.
``Nothing in this part shall be construed in a manner inconsistent
with any Federal law guaranteeing a civil right.
``SEC. 3128. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.
``Notwithstanding any other provision of this part, programs
authorized under this part that serve Native American (including Native
American Pacific Islander) children and children in the Commonwealth of
Puerto Rico may include programs of instruction, teacher training,
curriculum development, evaluation, and assessment designed for Native
American children learning and studying Native American languages and
children of limited Spanish proficiency, except that an outcome of
programs serving such children shall be increased English proficiency
among such children.
``SEC. 3129. PROHIBITION.
``In carrying out this part, the Secretary shall neither mandate
nor preclude the use of a particular curricular or pedagogical approach
to educating limited English proficient children.
``Subpart 3--National Activities
``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT.
``The Secretary shall use funds made available under section
3111(c)(1)(C) to award grants on a competitive basis, for a period of
not more than 5 years, to institutions of higher education (in
consortia with State educational agencies or local educational
agencies) to provide for professional development activities that will
improve classroom instruction for limited English proficient children
and assist educational personnel working with such children to meet
high professional standards, including standards for certification and
licensure as teachers who work in language instruction educational
programs or serve limited English proficient children. Grants awarded
under this subsection may be used--
``(1) for preservice professional development programs that
will assist local schools and institutions of higher education to
upgrade the qualifications and skills of educational personnel who
are not certified or licensed, especially educational
paraprofessionals;
``(2) for the development of curricula appropriate to the needs
of the consortia participants involved; and
``(3) in conjunction with other Federal need-based student
financial assistance programs, for financial assistance, and costs
related to tuition, fees, and books for enrolling in courses
required to complete the degree involved, to meet certification or
licensing requirements for teachers who work in language
instruction educational programs or serve limited English
proficient children.
``Subpart 4--Definitions
``SEC. 3141. ELIGIBLE ENTITY.
``In this part, the term `eligible entity' means--
``(1) one or more local educational agencies; or
``(2) one or more local educational agencies, in collaboration
with an institution of higher education, community-based
organization, or State educational agency.
``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS
``SEC. 3201. SHORT TITLE.
``This part may be cited as the `Improving Language Instruction
Educational Programs For Academic Achievement Act'.
``SEC. 3202. PURPOSE.
``The purpose of this part is to help ensure that limited English
proficient children master English and meet the same rigorous standards
for academic achievement as all children are expected to meet,
including meeting challenging State academic content and student
academic achievement standards by--
``(1) promoting systemic improvement and reform of, and
developing accountability systems for, educational programs serving
limited English proficient children;
``(2) developing language skills and multicultural
understanding;
``(3) developing the English proficiency of limited English
proficient children and, to the extent possible, the native
language skills of such children;
``(4) providing similar assistance to Native Americans with
certain modifications relative to the unique status of Native
American languages under Federal law;
``(5) developing data collection and dissemination, research,
materials, and technical assistance that are focused on school
improvement for limited English proficient children; and
``(6) developing programs that strengthen and improve the
professional training of educational personnel who work with
limited English proficient children.
``SEC. 3203. NATIVE AMERICAN CHILDREN IN SCHOOL.
``(a) Eligible Entities.--For the purpose of carrying out programs
under this part for individuals served by elementary schools, secondary
schools, and postsecondary schools operated predominately for Native
American (including Alaska Native) children and youth, an Indian tribe,
a tribally sanctioned educational authority, a Native Hawaiian or
Native American Pacific Islander native language education
organization, or an elementary school or secondary school that is
operated or funded by the Bureau of Indian Affairs shall be considered
to be a local educational agency.
``(b) Application.--Notwithstanding any other provision of this
part, each tribe, authority, organization, or school described in
subsection (a) shall submit any application for assistance under this
part directly to the Secretary along with timely comments on the need
for the program proposed in the application.
``SEC. 3204. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED STATES.
``For the purpose of carrying out programs under this part in the
outlying areas, the term `local educational agency' includes public
institutions or agencies whose mission is the preservation and
maintenance of native languages.
``Subpart 1--Program Development and Enhancement
``SEC. 3211. FINANCIAL ASSISTANCE FOR LANGUAGE INSTRUCTION EDUCATIONAL
PROGRAMS.
``The purpose of this subpart is to assist local educational
agencies, institutions of higher education, and community-based
organizations, through the grants authorized under sections 3212 and
3213--
``(1) to develop and enhance their capacity to provide high-
quality instruction through language instruction educational
programs or special alternative instruction programs to limited
English proficient children; and
``(2) to help such children--
``(A) develop English proficiency and, to the extent
possible, proficiency in their native language; and
``(B) meet the same challenging State academic content and
student academic achievement standards as all children are
expected to meet under section 1111(b)(1).
``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES.
``(a) Program Authorized.--
``(1) Authority.--
``(A) In general.--The Secretary is authorized to award
grants to eligible entities having applications approved under
section 3214 to enable such entities to provide innovative,
locally designed, high-quality instruction to limited English
proficient children, by expanding, developing, or strengthening
language instruction educational programs or special
alternative instruction programs.
``(B) Period.--Each grant awarded under this section shall
be awarded for a period of 3 years.
``(2) Authorized activities.--
``(A) Mandatory activities.--Grants awarded under this
section shall be used for--
``(i) developing, implementing, expanding, or enhancing
comprehensive preschool, elementary, or secondary education
programs for limited English proficient children, that
are--
``(I) aligned with State and local academic content
and student academic achievement standards, and local
school reform efforts; and
``(II) coordinated with related academic services
for children;
``(ii) providing high-quality professional development
to classroom teachers, administrators, and other school or
community-based organization personnel to improve the
instruction and assessment of limited English proficient
children; and
``(iii) annually assessing the English proficiency of
all limited English proficient children served by
activities carried out under this section.
``(B) Permissible activities.--Grants awarded under this
section may be used for--
``(i) implementing programs to upgrade the reading and
other academic skills of limited English proficient
children;
``(ii) developing accountability systems to monitor the
academic progress of limited English proficient and
formerly limited English proficient children;
``(iii) implementing family education programs and
parent outreach and training activities designed to assist
parents to become active participants in the education of
their children;
``(iv) improving the instruction programs for limited
English proficient children by identifying, acquiring, and
applying effective curricula, instruction materials
(including materials provided through technology), and
assessments that are all aligned with State and local
standards;
``(v) providing intensified instruction, including
tutorials and academic, or vocational and technical,
training, for limited English proficient children;
``(vi) adapting best practice models for meeting the
needs of limited English proficient children;
``(vii) assisting limited English proficient children
with disabilities;
``(viii) implementing applied learning activities such
as service learning to enhance and support comprehensive
elementary and secondary language instruction educational
programs;
``(ix) acquiring or developing education technology or
instruction materials for limited English proficient
children, including materials in languages other than
English;
``(x) participating in electronic networks for
materials, training, and communication, and incorporating
information derived from such participation in curricula
and programs; and
``(xi) carrying out such other activities related to
the purpose of this part as the Secretary may approve.
``(b) Priority.--In awarding grants under this section, the
Secretary may give priority to an entity that--
``(1) serves a school district--
``(A) that has a total district enrollment that is less
than 10,000 students; or
``(B) with a large percentage or number of limited English
proficient children; and
``(2) has limited or no experience in serving limited English
proficient children.
``(c) Eligible Entity.--In this section, the term `eligible entity'
means--
``(1) one or more local educational agencies;
``(2) one or more local educational agencies in collaboration
with an institution of higher education, community-based
organization, or State educational agency; or
``(3) a community-based organization or an institution of
higher education that has an application approved by the local
educational agency to participate in programs carried out under
this subpart by enhancing early childhood education or family
education programs or conducting instruction programs that
supplement the educational services provided by a local educational
agency.
``SEC. 3213. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT
ACTIVITIES.
``(a) Program Authorized.--
``(1) Authority.--The Secretary is authorized to award grants
to eligible entities having applications approved under section
3214 to enable such entities to develop and implement language
instruction educational programs, and improve, reform, or upgrade
programs or operations that serve significant percentages or
numbers of limited English proficient children.
``(2) Mandatory activities.--Grants awarded under this section
shall be used for--
``(A) improving instruction programs for limited English
proficient children by acquiring and upgrading curricula and
related instruction materials;
``(B) aligning the activities carried out under this
section with State and local school reform efforts;
``(C) providing training, aligned with State and local
standards, to school personnel and participating community-
based organization personnel to improve the instruction and
assessment of limited English proficient children;
``(D) developing and implementing plans, coordinated with
plans for programs carried out under title II of the Higher
Education Act of 1965 (where applicable), and title II of this
Act (where applicable), to recruit teachers trained to serve
limited English proficient children;
``(E) implementing culturally and linguistically
appropriate family education programs, or parent outreach and
training activities, that are designed to assist parents of
limited English proficient children to become active
participants in the education of their children;
``(F) coordinating the activities carried out under this
section with other programs, such as programs carried out under
this title;
``(G) providing services to meet the full range of the
educational needs of limited English proficient children;
``(H) annually assessing the English proficiency of all
limited English proficient children served by the activities
carried out under this section; and
``(I) developing or improving accountability systems to
monitor the academic progress of limited English proficient
children.
``(3) Permissible activities.--Grants awarded under this
section may be used for--
``(A) implementing programs to upgrade reading and other
academic skills of limited English proficient children;
``(B) developing and using educational technology to
improve learning, assessments, and accountability to meet the
needs of limited English proficient children;
``(C) implementing scientifically based research programs
to meet the needs of limited English proficient children;
``(D) providing tutorials and academic, or vocational and
technical, training for limited English proficient children;
``(E) developing and implementing State and local academic
content and student academic achievement standards for learning
English as a second language, as well as for learning other
languages;
``(F) developing and implementing programs for limited
English proficient children to meet the needs of changing
populations of such children;
``(G) implementing policies to ensure that limited English
proficient children have access to other education programs
(other than programs designed to address limited English
proficiency);
``(H) assisting limited English proficient children with
disabilities;
``(I) developing and implementing programs to help children
become proficient in English and other languages;
``(J) acquiring or developing education technology or
instruction materials for limited English proficient children,
including materials in languages other than English;
``(K) participating in electronic networks for materials,
training, and communication and incorporating information
derived from such participation in curricula and programs; and
``(L) carrying out such other activities related to the
purpose of this part as the Secretary may approve.
``(4) Special rule.--
``(A) Planning.--A recipient of a grant under this section,
before carrying out activities under this section, shall plan,
train personnel, develop curricula, and acquire or develop
materials, but shall not use funds made available under this
section for planning purposes for more than 45 days.
``(B) Commencement of activities.--The recipient shall
commence carrying out activities under this section not later
than the later of--
``(i) the beginning of the first school year that
begins after the grant is received; or
``(ii) 30 days after the date of receipt of the grant.
``(b) Availability of Appropriations.--
``(1) Reservation of funds for continued payments.--
``(A) Covered grant.--In this paragraph, the term `covered
grant' means a grant--
``(i) that was awarded under section 7112, 7113, 7114,
or 7115 (as such sections were in effect on the day before
the date of enactment of the No Child Left Behind Act of
2001); and
``(ii) for which the grant period has not ended.
``(B) Reservation.--For any fiscal year that is part of the
grant period of a covered grant, the Secretary shall reserve
funds for the payments described in subparagraph (C) from the
amount appropriated for the fiscal year under section 3001(a)
and made available for carrying out this section.
``(C) Payments.--The Secretary shall continue to make grant
payments to each entity that received a covered grant, in
accordance with the terms of that grant, for the duration of
the grant period of the grant, to carry out activities in
accordance with the appropriate section described in
subparagraph (A)(i).
``(2) Availability.--Of the amount appropriated for a fiscal
year under section 3001(a) that is made available to carry out this
section, and that remains after the Secretary reserves funds for
payments under paragraph (1)--
``(A) not less than one-third of the remainder shall be
used to award grants to eligible entities for activities
carried out within an entire school district; and
``(B) not less than 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.
``(a) In General.--
``(1) Secretary.--To receive a grant under this subpart, an
eligible entity described in section 3212 or 3213 shall submit an
application to the Secretary at such time, in such form, and
containing such information as the Secretary may require.
``(2) State educational agency.--The eligible entity, with the
exception of schools funded by the Bureau of Indian Affairs, shall
submit a copy of the application submitted by the entity under this
section to the State educational agency.
``(b) State Review and Comments.--
``(1) Deadline.--The State educational agency, not later than
45 days after receipt of an application under this section, shall
review the application and submit the written comments of the
agency regarding the application to the Secretary.
``(2) Comments.--
``(A) Submission of comments.--Regarding applications
submitted under this subpart, the State educational agency
shall--
``(i) submit to the Secretary written comments
regarding all such applications; and
``(ii) submit to each eligible entity the comments that
pertain to such entity.
``(B) Subject.--For purposes of this subpart, such comments
shall address--
``(i) how the activities to be carried out under the
grant will further the academic achievement and English
proficiency of limited English proficient children served
under the grant; and
``(ii) how the grant application is consistent with the
State plan required under section 1111.
``(c) Eligible Entity Comments.--An eligible entity may submit to
the Secretary comments that address the comments submitted by the State
educational agency.
``(d) Comment Consideration.--In making grants under this subpart,
the Secretary shall take into consideration comments made by State
educational agencies.
``(e) Waiver.--Notwithstanding subsection (b), the Secretary is
authorized to waive the review requirement specified in subsection (b)
if a State educational agency can demonstrate that such review
requirement may impede such agency's ability to fulfill the
requirements of participation in the program authorized in section
3224, particularly such agency's ability to carry out data collection
efforts and such agency's ability to provide technical assistance to
local educational agencies not receiving funds under this subpart.
``(f) Required Documentation.--Such application shall include
documentation that--
``(1) the applicant has the qualified personnel required to
develop, administer, and implement the program proposed in the
application; and
``(2) the leadership personnel of each school participating in
the program have been involved in the development and planning of
the program in the school.
``(g) Contents.--
``(1) In general.--An application for a grant under this
subpart shall contain the following:
``(A) A description of the need for the proposed program,
including--
``(i) data on the number of limited English proficient
children in the school or school district to be served;
``(ii) information on the characteristics of the
children, including--
``(I) the native languages of the children;
``(II) the proficiency of the children in English
and their native language;
``(III) achievement data (current as of the date of
submission of the application) for the limited English
proficient children in--
``(aa) reading or language arts (in English and
in the native language, if applicable); and
``(bb) mathematics;
``(IV) a comparison of that data for the children
with that data for the English proficient peers of the
children; and
``(V) the previous schooling experiences of the
children;
``(iii) the professional development needs of the
instruction personnel who will provide services for the
limited English proficient children under the proposed
program; and
``(iv) how the services provided through the grant will
supplement the basic services provided to limited English
proficient children.
``(B) A description of the program to be implemented and
how such program's design--
``(i) relates to the linguistic and academic needs of
the limited English proficient children to be served;
``(ii) will ensure that the services provided through
the program will supplement the basic services the
applicant provides to limited English proficient children;
``(iii) will ensure that the program is coordinated
with other programs under this Act and other Acts;
``(iv) involves the parents of the limited English
proficient children to be served;
``(v) ensures accountability in achieving high academic
standards; and
``(vi) promotes coordination of services for the
limited English proficient children to be served and their
families.
``(C) A description, if appropriate, of the applicant's
collaborative activities with institutions of higher education,
community-based organizations, local educational agencies or
State educational agencies, private schools, nonprofit
organizations, or businesses in carrying out the proposed
program.
``(D) An assurance that the applicant will not reduce the
level of State and local funds that the applicant expends for
language instruction educational programs or special
alternative instruction programs if the applicant receives an
award under this subpart.
``(E) An assurance that the applicant will employ teachers
in the proposed program who, individually or in combination,
are proficient in--
``(i) English, with respect to written, as well as
oral, communication skills; and
``(ii) the native language of the majority of the
children who the teachers teach, if instruction in the
program is in the native language as well as English.
``(F) A budget for the grant funds.
``(2) Additional information.--Each application for a grant
under section 3213 shall--
``(A) describe--
``(i) current services (as of the date of submission of
the application) the applicant provides to limited English
proficient children;
``(ii) what services limited English proficient
children will receive under the grant that such children
will not otherwise receive;
``(iii) how funds received under this subpart will be
integrated with all other Federal, State, local, and
private resources that may be used to serve limited English
proficient children;
``(iv) specific achievement and school retention goals
for the children to be served by the proposed program and
how progress toward achieving such goals will be measured;
and
``(v) the current family education programs (as of the
date of submission of the application) of the eligible
entity, if applicable; and
``(B) provide assurances that--
``(i) the program funded with the grant will be
integrated with the overall educational program of the
children served through the proposed program; and
``(ii) the application has been developed in
consultation with parents and other representatives of the
children to be served in such program.
``(h) Approval of Applications.--An application for a grant under
this subpart may be approved only if the Secretary determines that--
``(1) the program proposed in the application will use
qualified personnel, including personnel who are proficient in the
language or languages used for instruction;
``(2) in designing the program, the eligible entity has, after
consultation with appropriate private school officials--
``(A) taken into account the needs of children in nonprofit
private elementary schools and secondary schools; and
``(B) in a manner consistent with the number of such
children enrolled in such schools in the area to be served,
whose educational needs are of the type and whose language, and
grade levels are of a similar type to the needs, language, and
grade levels that the program is intended to address, provided
for the participation of such children on a basis comparable to
the basis on which public school children participate;
``(3)(A) student evaluation and assessment procedures in the
program are valid and reliable for limited English proficient
children; and
``(B) limited English proficient children with disabilities
will be identified and served through the program in accordance
with the requirements of the Individuals with Disabilities
Education Act;
``(4) Federal funds made available for the program will be used
to supplement the State and local funds that, in the absence of
such Federal funds, would be expended for special programs for
children of limited English proficient individuals, and in no case
to supplant such State and local funds, except that nothing in this
paragraph shall be construed to preclude a local educational agency
from using funds made available under this subpart--
``(A) for activities carried out under an order of a
Federal or State court respecting services to be provided to
such children; or
``(B) to carry out a plan approved by the Secretary as
adequate under title VI of the Civil Rights Act of 1964 with
respect to services to be provided to such children;
``(5)(A) the assistance provided through the grant will
contribute toward building the capacity of the eligible entity to
provide a program on a regular basis, similar to the proposed
program, that will be of sufficient size, scope, and quality to
promise significant improvement in the education of limited English
proficient children; and
``(B) the eligible entity will have the resources and
commitment to continue the program of sufficient size, scope, and
quality when assistance under this subpart is reduced or no longer
available; and
``(6) the eligible entity will use State and national
dissemination sources for program design and dissemination of
results and products.
``(i) Consideration.--In determining whether to approve an
application under this subpart, the Secretary shall give consideration
to--
``(1) the degree to which the program for which assistance is
sought involves the collaborative efforts of institutions of higher
education, community-based organizations, the appropriate local
educational agency and State educational agency, or businesses; and
``(2) whether the application provides for training for
personnel participating in, or preparing to participate in, a
program that will assist such personnel in meeting State and local
certification requirements.
``SEC. 3215. CAPACITY BUILDING.
``Each recipient of a grant under this subpart shall use the grant
in ways that will build such recipient's capacity to continue to offer
high-quality language instruction educational programs and special
alternative instruction programs to limited English proficient children
after Federal assistance is reduced or eliminated.
``SEC. 3216. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.
``Notwithstanding any other provision of this part, programs
authorized under this subpart that serve Native American (including
Native American Pacific Islander) children and children in the
Commonwealth of Puerto Rico may include programs of instruction,
teacher training, curriculum development, evaluation, and assessment
designed for Native American children learning and studying Native
American languages and children of limited Spanish proficiency, except
that an outcome of programs serving such children shall be increased
English proficiency among such children.
``SEC. 3217. EVALUATIONS.
``(a) Evaluation.--Each recipient of funds under this subpart for a
program shall annually conduct an evaluation of the program and submit
to the Secretary a report concerning the evaluation, in the form
prescribed by the Secretary.
``(b) Use of Evaluation.--Such evaluation shall be used by the
grant recipient--
``(1) for program improvement;
``(2) to further define the program's goals and objectives; and
``(3) to determine program effectiveness.
``(c) Evaluation Report Components.--In preparing the evaluation
reports, the recipient shall--
``(1) use the data provided in the application submitted by the
recipient under section 3214 as baseline data against which to
report academic achievement and gains in English proficiency for
children in the program;
``(2) disaggregate the results of the evaluation by gender,
native languages spoken by children, socioeconomic status, and
whether the children have disabilities;
``(3) include data on the progress of the recipient in
achieving the objectives of the program, including data
demonstrating the extent to which children served by the program
are meeting the challenging State academic content and student
academic achievement standards, and including data comparing
limited English proficient children with English proficient
children with regard to school retention and academic achievement
concerning--
``(A) reading and language arts;
``(B) English proficiency;
``(C) mathematics; and
``(D) the native language of the children, if the program
develops native language proficiency;
``(4) include information on the extent that professional
development activities carried out through the program have
resulted in improved classroom practices and improved student
academic achievement;
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.
``Nothing in this subpart shall be construed to prohibit a local
educational agency from serving limited English proficient children
simultaneously with children with similar educational needs, in the
same educational settings where appropriate.
``Subpart 2--Research, Evaluation, and Dissemination
``SEC. 3221. AUTHORITY.
``(a) In General.--The Secretary is authorized to conduct data
collection, dissemination, research, and ongoing program evaluation
activities in accordance with the provisions of this subpart for the
purpose of improving language instruction educational programs and
special alternative instruction programs for limited English proficient
children.
``(b) Competitive Awards.--Research and program evaluation
activities carried out under this subpart shall be supported through
competitive grants, contracts, and cooperative agreements awarded to
institutions of higher education, nonprofit organizations, State
educational agencies, and local educational agencies.
``(c) Administration.--The Secretary shall conduct data collection,
dissemination, and ongoing program evaluation activities authorized by
this subpart through the Office of English Language Acquisition,
Language Enhancement, and Academic Achievement for Limited English
Proficient Students.
``SEC. 3222. RESEARCH.
``(a) Administration.--The Secretary shall conduct research
activities authorized by this subpart through the Office of Educational
Research and Improvement in coordination and collaboration with the
Office of English Language Acquisition, Language Enhancement, and
Academic Achievement for Limited English Proficient Students.
``(b) Requirements.--Such research activities--
``(1) shall have a practical application to teachers,
counselors, paraprofessionals, school administrators, parents, and
others involved in improving the education of limited English
proficient children and their families;
``(2) may include research on effective instruction practices
for multilingual classes, and on effective instruction strategies
to be used by a teacher or other staff member who does not know the
native language of a limited English proficient child in the
teacher's or staff member's classroom;
``(3) may include establishing (through the National Center for
Education Statistics in consultation with experts in second
language acquisition and scientifically based research on teaching
limited English proficient children) a common definition of
`limited English proficient child' for purposes of national data
collection; and
``(4) shall be administered by individuals with expertise in
second language acquisition, scientifically based research on
teaching limited English proficient children, and the needs of
limited English proficient children and their families.
``(c) Field-Initiated Research.--
``(1) In general.--The Secretary shall reserve not less than 5
percent of the funds made available to carry out this section for
field-initiated research conducted by recipients of grants under
subpart 1 or this subpart who have received such grants within the
previous 5 years. Such research may provide for longitudinal
studies of limited English proficient children or teachers who
serve such children, monitoring the education of such children from
entry into language instruction educational programs through
secondary school completion.
``(2) Applications.--An applicant for assistance under this
subsection may submit an application for such assistance to the
Secretary at the same time as the applicant submits another
application under subpart 1 or this subpart. The Secretary shall
complete a review of such applications on a timely basis to allow
the activities carried out under research and program grants to be
coordinated when recipients are awarded 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.
``(a) Authority.--The Secretary may make grants to State
educational agencies to assist the agencies in recognizing local
educational agencies and other public and nonprofit entities whose
programs have--
``(1) demonstrated significant progress in assisting limited
English proficient children to learn English according to age
appropriate and developmentally appropriate standards; and
``(2) demonstrated significant progress in assisting limited
English proficient children to meet, according to age appropriate
and developmentally appropriate standards, the same challenging
State academic content and student academic achievement standards
as all children are expected to meet.
``(b) Applications.--A State educational agency desiring a grant
under this section shall include an application for such grant in the
application submitted by the agency under section 3224(e).
``SEC. 3224. STATE GRANT PROGRAM.
``(a) State Grant Program.--The Secretary is authorized to make an
award to a State educational agency that demonstrates, to the
satisfaction of the Secretary, that such agency, through such agency's
programs and other Federal education programs, effectively provides for
the education of limited English proficient children within the State.
``(b) Payments.--The amount paid to a State educational agency
under subsection (a) shall not exceed 5 percent of the total amount
awarded to local educational agencies and entities within the State
under subpart 1 for the previous fiscal year, except that in no case
shall the amount paid by the Secretary to any State educational agency
under this subsection for any fiscal year be less than $100,000.
``(c) Use of Funds.--
``(1) In general.--A State educational agency shall use funds
awarded under this section--
``(A) to assist local educational agencies in the State
with activities that--
``(i) consist of program design, capacity building,
assessment of student academic achievement, program
evaluation, and development of data collection and
accountability systems for limited English proficient
children; and
``(ii) are aligned with State reform efforts; and
``(B) to collect data on the State's limited English
proficient populations and document the services available to
all such populations.
``(2) Training.--The State educational agency may also use
funds provided under this section for the training of State
educational agency personnel in educational issues affecting
limited English proficient children.
``(3) Special rule.--Recipients of funds under this section
shall not restrict the provision of services under this section to
federally funded programs.
``(d) State Consultation.--A State educational agency receiving
funds under this section shall consult with recipients of grants under
this subpart and other individuals or organizations involved in the
development or operation of programs serving limited English proficient
children to ensure that such funds are used in a manner consistent with
the requirements of this subpart.
``(e) Applications.--A State educational agency desiring to receive
funds under this section shall submit an application to the Secretary
at such time, in such form, and containing such information and
assurances as the Secretary may require.
``(f) Supplement, Not Supplant.--Federal funds made available under
this section for any fiscal year shall be used by the State educational
agency to supplement and, to the extent practical, to increase the
State funds that, in the absence of such Federal funds, would be made
available for the purposes described in this section, and in no case to
supplant such State funds.
``(g) Report to the Secretary.--A State educational agency
receiving an award under this section shall provide for the annual
submission of a summary report to the Secretary describing such State's
use of the funds made available through the award.
``SEC. 3225. INSTRUCTION MATERIALS DEVELOPMENT.
``(a) In General.--The Secretary may make grants for the
development, publication, and dissemination of high-quality instruction
materials--
``(1) in Native American languages (including Native Hawaiian
languages and the language of Native American Pacific Islanders),
and the language of natives of the outlying areas, for which
instruction materials are not readily available; and
``(2) in other low-incidence languages in the United States for
which instruction materials are not readily available.
``(b) Priority.--In making the grants, the Secretary shall give
priority to applicants for the grants who propose--
``(1) to develop instruction materials in languages indigenous
to the United States or the outlying areas; and
``(2) to develop and evaluate materials, in collaboration with
entities carrying out activities assisted under subpart 1 and this
subpart, that are consistent with challenging State academic
content and student academic achievement standards.
``Subpart 3--Professional Development
``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS.
``(a) Purpose.--The purpose of this section is to provide
assistance to prepare educators to improve educational services for
limited English proficient children by--
``(1) supporting professional development programs and
activities to prepare teachers, pupil service personnel,
administrators, and other educational personnel working in language
instruction educational programs to provide effective services to
limited English proficient children;
``(2) incorporating curricula and resources concerning
appropriate and effective instruction and assessment methodologies
specific to limited English proficient children into preservice and
inservice professional development programs;
``(3) upgrading the qualifications and skills of non-certified
educational personnel, including paraprofessionals, to enable such
personnel to meet high professional standards for educating limited
English proficient children;
``(4) improving the quality of professional development
programs in schools or departments of education at institutions of
higher education, for educational personnel serving, or preparing
to serve, limited English proficient children; and
``(5) supporting the recruitment and training of prospective
educational personnel to serve limited English proficient children
by providing fellowships for undergraduate, graduate, doctoral, and
post-doctoral study related to the instruction of such children.
``(b) Authorization.--
``(1) In general.--The Secretary is authorized to award grants
under this section to--
``(A) State educational agencies;
``(B) local educational agencies;
``(C) institutions of higher education; or
``(D) consortia of one or more local educational agencies,
State educational agencies, institutions of higher education,
for-profit organizations, or nonprofit organizations.
``(2) Duration.--Each grant awarded under this section shall be
awarded for a period of not more than 4 years.
``(c) Authorized Activities.--Grants awarded under this section
shall be used to conduct high-quality professional development programs
and effective activities to improve the quality of instruction and
services provided to limited English proficient children, including--
``(1) implementing preservice and inservice professional
development programs for teachers who serve limited English
proficient children, administrators, and other educational
personnel who are preparing to provide educational services for
limited English proficient children, including professional
development programs that assist limited English proficient
children to attain English proficiency;
``(2) implementing school-based collaborative efforts among
teachers to improve instruction in core academic subjects,
especially reading, for limited English proficient children;
``(3) developing and implementing programs to assist beginning
teachers who serve limited English proficient children with
transitioning to the teaching profession, including programs that
provide mentoring and team teaching with trained and experienced
teachers;
``(4) implementing programs that support effective teacher use
of education technologies to improve instruction and assessment;
``(5) developing curricular materials and assessments for
teachers that are appropriate to the needs of limited English
proficient children, and that are aligned with challenging State
academic content and student academic achievement standards,
including materials and assessments that ensure limited English
proficient children attain English proficiency;
``(6) integrating and coordinating activities with entities
carrying out other programs consistent with the purpose of this
section and supported under this Act, or other Acts as appropriate;
``(7) developing and implementing career ladder programs to
upgrade the qualifications and skills of non-certified educational
personnel working in, or preparing to work in, language instruction
educational programs to enable such personnel to meet high
professional standards, including standards for certification and
licensure as teachers;
``(8) developing and implementing activities to help recruit
and train secondary school students as teachers who serve limited
English proficient children;
``(9) providing fellowships and assistance for costs related to
enrollment in a course of study at an institution of higher
education that addresses the instruction of limited English
proficient children in such areas as teacher training, program
administration, research, evaluation, and curriculum development,
and for the support of dissertation research related to such study,
except that any person receiving such a fellowship or assistance
shall agree to--
``(A) work in an activity related to improving the
educational services for limited English proficient children
authorized under this subpart, including work as a teacher that
serves limited English proficient children, for a period of
time equivalent to the period of time during which such person
receives assistance under this paragraph; or
``(B) repay such assistance; and
``(10) carrying out such other activities as are consistent
with the purpose of this section.
``(d) Application.--
``(1) In general.--Each eligible entity desiring a grant under
this section shall submit an application to the Secretary at such
time, in such form, and containing such information as the
Secretary may require.
``(2) Contents.--Each application shall--
``(A) describe the programs and activities proposed to be
developed, implemented, and administered under the award;
``(B) describe how the applicant has consulted with, and
assessed the needs of, public and private schools serving
limited English proficient children to determine such schools'
need for, and the design of, the program for which funds are
sought; and
``(C) describe how the programs and activities to be
carried out under the award will be used to ensure that limited
English proficient children meet challenging State academic
content and student academic achievement standards and attain
English proficiency.
``(3) Special rule.--An eligible entity that proposes to
conduct a master's-level or doctoral-level program with funds
received under this section shall include in the entity's
application an assurance that such program will include a training
practicum in a local elementary school or secondary school program
serving limited English proficient children.
``(4) Outreach and technical assistance.--The Secretary shall
provide for outreach and technical assistance to institutions of
higher education eligible for assistance under title III of the
Higher Education Act of 1965, and institutions of higher education
that are operated or funded by the Bureau of Indian Affairs, to
facilitate the participation of such institutions in programs and
activities under this section.
``(5) Distribution rule.--In making awards under this section,
the Secretary shall ensure adequate representation of Hispanic-
serving institutions that demonstrate competence and experience in
carrying out the programs and activities authorized under this
section and that are otherwise qualified.
``(e) Priorities in Awarding Grants.--
``(1) Grants to agencies.--In awarding grants to State
educational agencies and local educational agencies under this
section, the Secretary shall give priority to agencies that propose
programs and activities designed to implement professional
development programs for teachers and educational personnel who are
providing or preparing to provide educational services for limited
English proficient children, including services provided through
language instruction educational programs, that ensure such
children attain English proficiency and meet challenging State
academic content and student academic achievement standards.
``(2) Grants to institutions of higher education.--In awarding
grants to institutions of higher education under this section, the
Secretary shall give priority to institutions that propose programs
and activities to recruit and upgrade the qualifications and skills
of certified and non-certified educational personnel by offering
degree programs that prepare beginning teachers to serve limited
English proficient children.
``(f) Program Evaluations.--Each recipient of an award under this
section for a program or activity shall annually conduct an independent
evaluation of the program or activity and submit to the Secretary a
report containing such evaluation. Such report shall include
information on--
``(1) the program or activity conducted by the recipient to
provide high-quality professional development to participants in
such program or activity;
``(2) the number of participants served through the program or
activity, the number of participants who completed the requirements
of the program or activity, and the number of participants who took
positions in an instruction setting with limited English proficient
children;
``(3) the effectiveness of the program or activity in imparting
the professional skills necessary for participants to achieve the
objectives of the program or activity; and
``(4) the teaching effectiveness of graduates of the program or
activity or other participants who have completed the program or
activity.
``Subpart 4--Emergency Immigrant Education Program
``SEC. 3241. PURPOSE.
``The purpose of this subpart is to assist eligible local
educational agencies that experience unexpectedly large increases in
their student population due to immigration--
``(1) to provide high-quality instruction to immigrant children
and youth; and
``(2) to help such children and youth--
``(A) with their transition into American society; and
``(B) meet the same challenging State academic content and
student academic achievement standards as all children are
expected to meet.
``SEC. 3242. STATE ADMINISTRATIVE COSTS.
``For any fiscal year, a State educational agency may reserve not
more than 1.5 percent (2 percent if the State educational agency
distributes funds received under this subpart to local educational
agencies on a competitive basis) of the amount allotted to such agency
under section 3244 to pay the costs of performing such agency's
administrative functions under this subpart.
``SEC. 3243. WITHHOLDING.
``Whenever the Secretary, after providing reasonable notice and
opportunity for a hearing to any State educational agency, finds that
there is a failure to comply with a requirement of any provision of
this subpart, the Secretary shall notify that agency that further
payments will not be made to the agency under this subpart or, in the
discretion of the Secretary, that the State educational agency shall
not make further payments under this subpart to specified local
educational agencies whose actions cause or are involved in such
failure until the Secretary is satisfied that there is no longer any
such failure to comply. Until the Secretary is so satisfied, no further
payments shall be made to the State educational agency under this
subpart, or payments by the State educational agency under this subpart
shall be limited to local educational agencies whose actions did not
cause or were not involved in the failure, as the case may be.
``SEC. 3244. STATE ALLOTMENTS.
``(a) Payments.--The Secretary shall, in accordance with the
provisions of this section, make payments to State educational agencies
for each of the fiscal years 2002 through 2008 for the purpose set
forth in section 3241.
``(b) Allotments.--
``(1) In general.--Except as provided in subsections (c) and
(d), of the amount appropriated for each fiscal year for this
subpart, each State participating in the program assisted under
this subpart shall receive an allotment equal to the proportion of
the number of immigrant children and youth who are enrolled in
public elementary schools or secondary schools under the
jurisdiction of each local educational agency described in
paragraph (2), and in nonpublic elementary schools or secondary
schools within the district served by each such local educational
agency within such State, relative to the total number of immigrant
children and youth so enrolled in all the States participating in
the program assisted under this subpart.
``(2) Eligible local educational agencies.--A local educational
agency referred to in paragraph (1) is a local educational agency
for which the sum of the number of immigrant children and youth who
are enrolled in public elementary schools or secondary schools
under the jurisdiction of such agency, and in nonpublic elementary
schools or secondary schools within the district served by such
agency, during the fiscal year for which the payments are to be
made under this subpart, is equal to at least--
``(A) 500; or
``(B) 3 percent of the total number of children enrolled in
such public or nonpublic schools during such fiscal year,
whichever is less.
``(c) Determinations of Number of Children and Youth.--
``(1) In general.--Determinations by the Secretary under this
section for any period with respect to the number of immigrant
children and youth shall be made on the basis of data or estimates
provided to the Secretary by each State educational agency in
accordance with criteria established by the Secretary, unless the
Secretary determines, after notice and opportunity for a hearing to
the affected State educational agency, that such data or estimates
are clearly erroneous.
``(2) Special rule.--No such determination with respect to the
number of immigrant children and youth shall operate because of an
underestimate or overestimate to deprive any State educational
agency of the allotment under this section that such State would
otherwise have received had such determination been made on the
basis of accurate data.
``(d) Reallotment.--
``(1) In general.--Whenever the Secretary determines that any
amount of a payment made to a State under this subpart for a fiscal
year will not be used by such State for carrying out the purpose
for which the payment was made, the Secretary shall make such
amount available for carrying out such purpose to one or more other
States to the extent the Secretary determines that such other
States will be able to use such additional amount for carrying out
such purpose.
``(2) Fiscal year.--Any amount made available to a State from
any appropriation for a fiscal year in accordance with paragraph
(1) shall, for purposes of this subpart, be regarded as part of
such State's payment (as determined under subsection (b)) for such
year, but shall remain available until the end of the succeeding
fiscal year.
``(e) Reservation of Funds.--
``(1) In general.--Notwithstanding any other provision of this
subpart, if the amount appropriated to carry out this subpart
exceeds $50,000,000 for a fiscal year, a State educational agency
may reserve not more than 20 percent of such agency's payment under
this subpart for such year to award grants, on a competitive basis,
to local educational agencies within the State as follows:
``(A) Agencies with immigrant children and youth.--At least
\1/2\ of the funds reserved under this paragraph shall be made
available to eligible local educational agencies (as described
in subsection (b)(2)) within the State with the highest numbers
and percentages of immigrant children and youth.
``(B) Agencies with a sudden influx of children and
youth.--Funds reserved under this paragraph and not made
available under subparagraph (A) may be distributed to local
educational agencies within the State that are experiencing a
sudden influx of immigrant children and youth and that are
otherwise not eligible for assistance under this subpart.
``(2) Use of grant funds.--Each local educational agency
receiving a grant under paragraph (1) shall use such grant funds to
carry out the activities described in section 3247.
``(3) Information.--Local educational agencies receiving funds
under paragraph (1) with the highest number of immigrant children
and youth may make information available on serving immigrant
children and youth to local educational agencies in the State with
sparse numbers of such children and youth.
``SEC. 3245. STATE APPLICATIONS.
``(a) Submission.--No State educational agency shall receive any
payment under this subpart for any fiscal year unless such agency
submits an application to the Secretary at such time, in such manner,
and containing or accompanied by such information, as the Secretary may
reasonably require. Each such application shall--
``(1) provide that the educational programs, services, and
activities for which payments under this subpart are made will be
administered by or under the supervision of the agency;
``(2) provide assurances that payments under this subpart will
be used for purposes set forth in sections 3241 and 3247, including
a description of how local educational agencies receiving funds
under this subpart will use such funds to meet such purposes and
will coordinate with entities carrying out other programs and
activities assisted under this Act, and other Acts as appropriate;
``(3) provide an assurance that local educational agencies
receiving funds under this subpart will coordinate the use of such
funds with entities carrying out programs and activities assisted
under part A of title I;
``(4) provide assurances that such payments, with the exception
of payments reserved under section 3244(e), will be distributed
among local educational agencies within that State on the basis of
the number of immigrant children and youth counted with respect to
each such local educational agency under section 3244(b)(1);
``(5) provide assurances that the State educational agency will
not finally disapprove in whole or in part any application for
funds received under this subpart without first affording the local
educational agency submitting an application for such funds
reasonable notice and opportunity for a hearing;
``(6) provide for making such reports as the Secretary may
reasonably require to perform the Secretary's functions under this
subpart;
``(7) provide assurances--
``(A) that to the extent consistent with the number of
immigrant children and youth enrolled in the nonpublic
elementary schools or secondary schools within the district
served by a local educational agency, such agency, after
consultation with appropriate officials of such schools, shall
provide for the benefit of such children and youth secular,
neutral, and nonideological services, materials, and equipment
necessary for the education of such children and youth;
``(B) that the control of funds provided under this subpart
for any materials or equipment, or property repaired,
remodeled, or constructed with those funds shall be in a public
agency for the uses and purpose provided in this subpart, and a
public agency shall administer such funds and property; and
``(C) that the provision of services pursuant to this
paragraph shall be provided by employees of a public agency or
through contract by such public agency with a person,
association, agency, or corporation who or which, in the
provision of such services, is independent of such nonpublic
elementary school or secondary school and of any religious
organization, and such employment or contract shall be under
the control and supervision of such public agency, and the
funds provided under this paragraph shall not be commingled
with State or local funds;
``(8) provide that funds reserved under section 3244(e) be
awarded on a competitive basis based on merit and need in
accordance with such section; and
``(9) provide an assurance that the State educational agency
and local educational agencies in the State receiving funds under
this subpart will comply with the requirements of section 1120(b).
``(b) Application Review.--
``(1) In general.--The Secretary shall review all applications
submitted pursuant to this section by State educational agencies.
``(2) Approval.--The Secretary shall approve any application
submitted by a State educational agency that meets the requirements
of this section.
``(3) Disapproval.--The Secretary shall disapprove any
application submitted by a State educational agency that does not
meet the requirements of this section, but shall not finally
disapprove an application except after providing reasonable notice,
technical assistance, and an opportunity for a hearing to the State
educational agency.
``SEC. 3246. ADMINISTRATIVE PROVISIONS.
``(a) Notification of Amount.--The Secretary, not later than June 1
of each year, shall notify each State educational agency that has an
application approved under section 3245 of the amount of such agency's
allotment under section 3244 for the succeeding year.
``(b) Services to Immigrant Children and Youth Enrolled in
Nonpublic Schools.--If by reason of any provision of law a local
educational agency is prohibited from providing educational services
for immigrant children and youth enrolled in nonpublic elementary
schools and secondary schools, as required by section 3245(a)(7), or if
the Secretary determines that a local educational agency has
substantially failed or is unwilling to provide for the participation
on an equitable basis of such children and youth enrolled in such
schools, the Secretary may waive such requirement and shall arrange for
the provision of services, subject to the requirements of this subpart,
to such children and youth. Such waivers shall be subject to
consultation, withholding, notice, and judicial review requirements in
accordance with the provisions of title I.
``SEC. 3247. USES OF FUNDS.
``(a) Use of Funds.--Funds awarded under this subpart shall be used
to pay for enhanced instructional opportunities for immigrant children
and youth, which may include--
``(1) family literacy, parent outreach, and training activities
designed to assist parents to become active participants in the
education of their children;
``(2) support of personnel, including teacher aides who have
been specifically trained, or are being trained, to provide
services to immigrant children and youth;
``(3) tutorials, mentoring, and academic or career counseling
for immigrant children and youth;
``(4) identification and acquisition of curricular materials,
educational software, and technologies;
``(5) the provision of basic instruction services that are
directly attributable to the presence in the school district of
immigrant children and youth, including payment of costs of
providing additional classroom supplies, costs of transportation,
or such other costs as are directly attributable to such additional
basic instruction services; and
``(6) such other activities, related to the purpose of this
subpart, as the Secretary may authorize.
``(b) Consortia.--A local educational agency that receives a grant
under this subpart may collaborate or form a consortium with one or
more local educational agencies, institutions of higher education, and
nonprofit organizations to carry out a program described in an
application approved under this subpart.
``(c) Subgrants.--A local educational agency that receives a grant
under this subpart may, with the approval of the Secretary, make a
subgrant to, or enter into a contract with, an institution of higher
education, a nonprofit organization, or a consortium of such
institutions or organizations to carry out a program described in an
application approved under this subpart, including a program to serve
out-of-school youth.
``(d) Construction.--Nothing in this subpart shall be construed to
prohibit a local educational agency from serving immigrant children and
youth simultaneously with children and youth with similar educational
needs, in the same educational settings where appropriate.
``SEC. 3248. REPORTS.
``(a) Biennial Report.--Each State educational agency receiving
funds under this subpart shall submit, once every 2 years, a report to
the Secretary concerning the expenditure of funds by local educational
agencies under this subpart. Each local educational agency receiving
funds under this subpart shall submit to the State educational agency
such information as may be necessary for such report.
``(b) Report to Congress.--The Secretary shall submit, once every 2
years, a report to the appropriate committees of Congress concerning
programs assisted under this subpart.
``Subpart 5--Administration
``SEC. 3251. RELEASE TIME.
``The Secretary shall allow entities carrying out professional
development programs funded under this part to use funds provided under
this part for professional release time to enable individuals to
participate in programs assisted under this part.
``SEC. 3252. NOTIFICATION.
``A State educational agency, and when applicable, the State board
for postsecondary education, shall be notified within 3 working days
after the date an award under this part is made to an eligible entity
within the State.
``SEC. 3253. COORDINATION AND REPORTING REQUIREMENTS.
``(a) Coordination With Related Programs.--In order to maximize
Federal efforts aimed at serving the educational needs of children and
youth of limited English proficiency, the Secretary shall coordinate
and ensure close cooperation with other programs serving language-
minority and limited English proficient children that are administered
by the Department and other agencies. The Secretary shall consult with
the Secretary of Labor, the Secretary of Health and Human Services, the
Secretary of Agriculture, the Attorney General, and the heads of other
relevant agencies to identify and eliminate barriers to appropriate
coordination of programs that affect language-minority and limited
English proficient children and their families. The Secretary shall
provide for continuing consultation and collaboration, between the
Office of English Language Acquisition, Language Enhancement, and
Academic Achievement for Limited English Proficient Students and
relevant programs operated by the Department, including programs under
this part and other programs under this Act, in planning, contracts,
providing joint technical assistance, providing joint field monitoring
activities and in other relevant activities to ensure effective program
coordination to provide high-quality educational opportunities to all
language-minority and limited English proficient children.
``(b) Data.--The Secretary shall, to the extent feasible, ensure
that all data collected by the Department shall include the collection
and reporting of data on limited English proficient children.
``(c) Publication of Proposals.--The Secretary shall publish and
disseminate all requests for proposals for programs funded under this
part.
``(d) Report.--The Director shall prepare and, not later than
February 1 of every other year, shall submit to the Secretary, the
Committee on Education and the Workforce of the House of
Representatives, and the Committee on Health, Education, Labor, and
Pensions of the Senate a report--
``(1) on programs and activities carried out to serve limited
English proficient children under this part, and the effectiveness
of such programs and activities in improving the academic
achievement and English proficiency of children who are limited
English proficient;
``(2) containing a critical synthesis of data reported by
States under section 3224, when applicable;
``(3) containing an estimate of the number of certified or
licensed teachers working in language instruction educational
programs and educating limited English proficient children, and an
estimate of the number of such teachers that will be needed for the
succeeding 5 fiscal years;
``(4) containing the major findings of scientifically based
research carried out under this part; and
``(5) containing other information gathered from the reports
submitted to the Secretary under this title when applicable.
``PART C--GENERAL PROVISIONS
``SEC. 3301. DEFINITIONS.
``Except as otherwise provided, in this title:
``(1) Child.--The term `child' means any individual aged 3
through 21.
``(2) Community-based organization.--The term `community-based
organization' means a private nonprofit organization of
demonstrated effectiveness, Indian tribe, or tribally sanctioned
educational authority, that is representative of a community or
significant segments of a community and that provides educational
or related services to individuals in the community. Such term
includes a Native Hawaiian or Native American Pacific Islander
native language educational organization.
``(3) Community college.--The term `community college' means an
institution of higher education as defined in section 101 of the
Higher Education Act of 1965 that provides not less than a 2-year
program that is acceptable for full credit toward a bachelor's
degree, including institutions receiving assistance under the
Tribally Controlled College or University Assistance Act of 1978.
``(4) Director.--The term `Director' means the Director of the
Office of English Language Acquisition, Language Enhancement, and
Academic Achievement for Limited English Proficient Students
established under section 209 of the Department of Education
Organization Act.
``(5) Family education program.--The term `family education
program' means a language instruction educational program or
special alternative instruction program that--
``(A) is designed--
``(i) to help limited English proficient adults and
out-of-school youths achieve English proficiency; and
``(ii) to provide instruction on how parents and family
members can facilitate the educational achievement of their
children;
``(B) when feasible, uses instructional programs based on
models developed under the Even Start Family Literacy Programs,
which promote adult literacy and train parents to support the
educational growth of their children, the Parents as Teachers
Program, and the Home Instruction Program for Preschool
Youngsters; and
``(C) gives preference to participation by parents and
immediate family members of children attending school.
``(6) Immigrant children and youth.--The term `immigrant
children and youth' means individuals who--
``(A) are aged 3 through 21;
``(B) were not born in any State; and
``(C) have not been attending one or more schools in any
one or more States for more than 3 full academic years.
``(7) Indian tribe.--The term `Indian tribe' means any Indian
tribe, band, nation, or other organized group or community,
including any Native village or Regional Corporation or Village
Corporation as defined in or established pursuant to the Alaska
Native Claims Settlement Act, that is recognized as eligible for
the special programs and services provided by the United States to
Indians because of their status as Indians.
``(8) Language instruction educational program.--The term
`language instruction educational program' means an instruction
course--
``(A) in which a limited English proficient child is placed
for the purpose of developing and attaining English
proficiency, while meeting challenging State academic content
and student academic achievement standards, as required by
section 1111(b)(1); and
``(B) that may make instructional use of both English and a
child's native language to enable the child to develop and
attain English proficiency, and may include the participation
of English proficient children if such course is designed to
enable all participating children to become proficient in
English and a second language.
``(9) Native american and native american language.--The terms
`Native American' and `Native American language' shall have the
meanings given such terms in section 103 of the Native American
Languages Act.
``(10) Native hawaiian or native american pacific islander
native language educational organization.--The term `Native
Hawaiian or Native American Pacific Islander native language
educational organization' means a nonprofit organization with--
``(A) a majority of its governing board and employees
consisting of fluent speakers of the traditional Native
American languages used in the organization's educational
programs; and
``(B) not less than 5 years successful experience in
providing educational services in traditional Native American
languages.
``(11) Native language.--The term `native language', when used
with reference to an individual of limited English proficiency,
means--
``(A) the language normally used by such individual; or
``(B) in the case of a child or youth, the language
normally used by the parents of the child or youth.
``(12) Paraprofessional.--The term `paraprofessional' means an
individual who is employed in a preschool, elementary school, or
secondary school under the supervision of a certified or licensed
teacher, including individuals employed in language instruction
educational programs, special education, and migrant education.
``(13) Specially qualified agency.--The term `specially
qualified agency' means an eligible entity, as defined in section
3141, in a State whose State educational agency--
``(A) does not participate in a program under subpart 1 of
part A for a fiscal year; or
``(B) submits a plan (or any amendment to a plan) that the
Secretary, after reasonable notice and opportunity for a
hearing, determines does not satisfy the requirements of such
subpart.
``(14) State.--The term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico.
``(15) Tribally sanctioned educational authority.--The term
`tribally sanctioned educational authority' means--
``(A) any department or division of education operating
within the administrative structure of the duly constituted
governing body of an Indian tribe; and
``(B) any nonprofit institution or organization that is--
``(i) chartered by the governing body of an Indian
tribe to operate a school described in section 3112(a) or
otherwise to oversee the delivery of educational services
to members of the tribe; and
``(ii) approved by the Secretary for the purpose of
carrying out programs under subpart 1 of part A for
individuals served by a school described in section
3112(a).
``SEC. 3302. PARENTAL NOTIFICATION.
``(a) In General.--Each eligible entity using funds provided under
this title to provide a language instruction educational program shall,
not later than 30 days after the beginning of the school year, inform a
parent or the parents of a limited English proficient child identified
for participation in, or participating in, such program of--
``(1) the reasons for the identification of their child as
limited English proficient and in need of placement in a language
instruction educational program;
``(2) the child's level of English proficiency, how such level
was assessed, and the status of the child's academic achievement;
``(3) the method of instruction used in the program in which
their child is, or will be, participating, and the methods of
instruction used in other available programs, including how such
programs differ in content, instruction goals, and use of English
and a native language in instruction;
``(4) how the program in which their child is, or will be
participating will meet the educational strengths and needs of the
child;
``(5) how such program will specifically help their child learn
English, and meet age appropriate academic achievement standards
for grade promotion and graduation;
``(6) the specific exit requirements for such program, the
expected rate of transition from such program into classrooms that
are not tailored for limited English proficient children, and the
expected rate of graduation from secondary school for such program
if funds under this title are used for children in secondary
schools;
``(7) in the case of a child with a disability, how such
program meets the objectives of the individualized education
program of the child; and
``(8) information pertaining to parental rights that includes
written guidance--
``(A) detailing--
``(i) the right that parents have to have their child
immediately removed from such program upon their request;
and
``(ii) the options that parents have to decline to
enroll their child in such program or to choose another
program or method of instruction, if available; and
``(B) assisting parents in selecting among various programs
and methods of instruction, if more than one program or method
is offered by the eligible entity.
``(b) Separate Notification.--In addition to providing the
information required to be provided under subsection (a), each eligible
entity that is using funds provided under this title to provide a
language instruction educational program, and that has failed to make
progress on the annual measurable achievement objectives described in
section 3122 for any fiscal year for which part A is in effect, shall
separately inform a parent or the parents of a child identified for
participation in such program, or participating in such program, of
such failure not later than 30 days after such failure occurs.
``(c) Receipt of Information.--The information required to be
provided under subsections (a) and (b) to a parent shall be provided in
an understandable and uniform format and, to the extent practicable, in
a language that the parent can understand.
``(d) Special Rule Applicable During School Year.--For a child who
has not been identified for participation in a language instruction
educational program prior to the beginning of the school year, the
eligible entity shall carry out subsections (a) through (c) with
respect to the parents of the child within 2 weeks of the child being
placed in such a program.
``(e) Parental Participation.--
``(1) In General.--Each eligible entity using funds provided
under this title to provide a language instruction educational
program shall implement an effective means of outreach to parents
of limited English proficient children to inform such parents of
how they can--
``(A) be involved in the education of their children; and
``(B) be active participants in assisting their children--
``(i) to learn English;
``(ii) to achieve at high levels in core academic
subjects; and
``(iii) to meet the same challenging State academic
content and student academic achievement standards as all
children are expected to meet.
``(2) Receipt of recommendations.--The outreach described in
paragraph (1) shall include holding, and sending notice of
opportunities for, regular meetings for the purpose of formulating
and responding to recommendations from parents described in such
paragraph.
``(f) Basis for Admission or Exclusion.--A child shall not be
admitted to, or excluded from, any federally assisted education program
on the basis of a surname or language-minority status.
``SEC. 3303. NATIONAL CLEARINGHOUSE.
``The Secretary shall establish and support the operation of a
National Clearinghouse for English Language Acquisition and Language
Instruction Educational Programs, which shall collect, analyze,
synthesize, and disseminate information about language instruction
educational programs for limited English proficient children, and
related programs. The National Clearinghouse shall--
``(1) be administered as an adjunct clearinghouse of the
Educational Resources Information Center Clearinghouses system
supported by the Office of Educational Research and Improvement;
``(2) coordinate activities with Federal data and information
clearinghouses and entities operating Federal dissemination
networks and systems;
``(3) develop a system for improving the operation and
effectiveness of federally funded language instruction educational
programs;
``(4) collect and disseminate information on--
``(A) educational research and processes related to the
education of limited English proficient children; and
``(B) accountability systems that monitor the academic
progress of limited English proficient children in language
instruction educational programs, including information on
academic content and English proficiency assessments for
language instruction educational programs; and
``(5) publish, on an annual basis, a list of grant recipients
under this title.
``SEC. 3304. REGULATIONS.
``In developing regulations under this title, the Secretary shall
consult with State educational agencies and local educational agencies,
organizations representing limited English proficient individuals, and
organizations representing teachers and other personnel involved in the
education of limited English proficient children.''.
TITLE IV--21ST CENTURY SCHOOLS
SEC. 401. 21ST CENTURY SCHOOLS.
Title IV (20 U.S.C. 7101 et seq.) is amended to read as follows:
``TITLE IV--21ST CENTURY SCHOOLS
``PART A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES
``SEC. 4001. SHORT TITLE.
``This part may be cited as the `Safe and Drug-Free Schools and
Communities Act'.
``SEC. 4002. PURPOSE.
``The purpose of this part is to support programs that prevent
violence in and around schools; that prevent the illegal use of
alcohol, tobacco, and drugs; that involve parents and communities; and
that are coordinated with related Federal, State, school, and community
efforts and resources to foster a safe and drug-free learning
environment that supports student academic achievement, through the
provision of Federal assistance to--
``(1) States for grants to local educational agencies and
consortia of such agencies to establish, operate, and improve local
programs of school drug and violence prevention and early
intervention;
``(2) States for grants to, and contracts with, community-based
organizations and public and private entities for programs of drug
and violence prevention and early intervention, including
community-wide drug and violence prevention planning and organizing
activities;
``(3) States for development, training, technical assistance,
and coordination activities; and
``(4) public and private entities to provide technical
assistance; conduct training, demonstrations, and evaluation; and
to provide supplementary services and community-wide drug and
violence prevention planning and organizing activities for the
prevention of drug use and violence among students and youth.
``SEC. 4003. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated--
``(1) $650,000,000 for fiscal year 2002, and such sums as may
be necessary for each of the 5 succeeding fiscal years, for State
grants under subpart 1; and
``(2) such sums for fiscal year 2002, and for each of the 5
succeeding fiscal years, for national programs under subpart 2.
``Subpart 1--State Grants
``SEC. 4111. RESERVATIONS AND ALLOTMENTS.
``(a) Reservations.--
``(1) In general.--From the amount made available under section
4003(1) to carry out this subpart for each fiscal year, the
Secretary--
``(A) shall reserve 1 percent or $4,750,000 (whichever is
greater) of such amount for grants to Guam, American Samoa, the
United States Virgin Islands, and the Commonwealth of the
Northern Mariana Islands, to be allotted in accordance with the
Secretary's determination of their respective needs and to
carry out programs described in this subpart;
``(B) shall reserve 1 percent or $4,750,000 (whichever is
greater) of such amount for the Secretary of the Interior to
carry out programs described in this subpart for Indian youth;
and
``(C) shall reserve 0.2 percent of such amount for Native
Hawaiians to be used under section 4117 to carry out programs
described in this subpart.
``(2) Other reservations.--From the amount made available under
section 4003(2) to carry out subpart 2 for each fiscal year, the
Secretary--
``(A) may reserve not more than $2,000,000 for the national
impact evaluation required by section 4122(a);
``(B) notwithstanding section 3 of the No Child Left Behind
Act of 2001, shall reserve an amount necessary to make
continuation grants to grantees under the Safe Schools/Healthy
Students initiative (under the same terms and conditions as
provided for in the grants involved).
``(b) State Allotments.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall, for each fiscal year, allot among the States--
``(A) 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.--
``(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. RESERVATION OF STATE FUNDS FOR SAFE AND DRUG-FREE SCHOOLS.
``(a) State Reservation for the Chief Executive Officer of a
State.--
``(1) In general.--The chief executive officer of a State may
reserve not more than 20 percent of the total amount allocated to a
State under section 4111(b) for each fiscal year to award
competitive grants and contracts to local educational agencies,
community-based organizations (including community anti-drug
coalitions) other public entities and private organizations, and
consortia thereof. Such grants and contracts shall be used to carry
out the comprehensive State plan described in section 4113(a)
through programs or activities that complement and support
activities of local educational agencies described in section
4115(b). Such officer shall award grants based on--
``(A) the quality of the program or activity proposed; and
``(B) how the program or activity meets the principles of
effectiveness described in section 4115(a).
``(2) Priority.--In making such grants and contracts under this
section, a chief executive officer shall give priority to programs
and activities that prevent illegal drug use and violence for--
``(A) children and youth who are not normally served by
State educational agencies or local educational agencies; or
``(B) populations that need special services or additional
resources (such as youth in juvenile detention facilities,
runaway or homeless children and youth, pregnant and parenting
teenagers, and school dropouts).
``(3) Special consideration.--In awarding funds under paragraph
(1), a chief executive officer shall give special consideration to
grantees that pursue a comprehensive approach to drug and violence
prevention that includes providing and incorporating mental health
services related to drug and violence prevention in their program.
``(4) Peer review.--Grants or contracts awarded under this
section shall be subject to a peer review process.
``(5) Use of funds.--Grants and contracts under this section
shall be used to implement drug and violence prevention activities,
including--
``(A) activities that complement and support local
educational agency activities under section 4115, including
developing and implementing activities to prevent and reduce
violence associated with prejudice and intolerance;
``(B) dissemination of information about drug and violence
prevention; and
``(C) development and implementation of community-wide drug
and violence prevention planning and organizing.
``(6) Administrative costs.--The chief executive officer of a
State may use not more than 3 percent of the amount described in
paragraph (1) for the administrative costs incurred in carrying out
the duties of such officer under this section.
``(b) In State Distribution.--
``(1) In general.--A State educational agency shall distribute
not less than 93 percent of the amount made available to the State
under section 4111(b), less the amount reserved under subsection
(a) of this section, to its local educational agencies.
``(2) State administration costs.--
``(A) In general.--A State educational agency may use not
more than 3 percent of the amount made available to the State
under section 4111(b) for each fiscal year less the amount
reserved under subsection (a) of this section, for State
educational agency administrative costs, including the
implementation of the uniform management information and
reporting system as provided for under subsection (c)(3).
``(B) Additional amounts for the uniform management
information system.--In the case of fiscal year 2002, a State
educational agency may, in addition to amounts provided for in
subparagraph (A), use 1 percent of the amount made available to
the State educational agency under section 4111(b) for each
fiscal year less the amount reserved under subsection (a) of
this section, for implementation of the uniform management
information and reporting system as provided for under
subsection (c)(3).
``(c) State Activities.--
``(1) In general.--A State educational agency may use not more
than 5 percent of the amount made available to the State under
section 4111(b) for each fiscal year less the amount reserved under
subsection (a) of this section, for activities described in this
subsection.
``(2) Activities.--A State educational agency shall use the
amounts described in paragraph (1), either directly, or through
grants and contracts, to plan, develop, and implement capacity
building, technical assistance and training, evaluation, program
improvement services, and coordination activities for local
educational agencies, community-based organizations, and other
public and private entities. Such uses--
``(A) shall meet the principles of effectiveness described
in section 4115(a);
``(B) shall complement and support local uses of funds
under section 4115(b);
``(C) shall be in accordance with the purposes of this
part; and
``(D) may include, among others activities--
``(i) identification, development, evaluation, and
dissemination of drug and violence prevention strategies,
programs, activities, and other information;
``(ii) training, technical assistance, and
demonstration projects to address violence that is
associated with prejudice and intolerance; and
``(iii) financial assistance to enhance drug and
violence prevention resources available in areas that serve
large numbers of low-income children, are sparsely
populated, or have other special needs.
``(3) Uniform management information and reporting system.--
``(A) Information and statistics.--A State shall establish
a uniform management information and reporting system.
``(B) Uses of funds.--A State may use funds described in
subparagraphs (A) and (B) of subsection (b)(2), either directly
or through grants and contracts, to implement the uniform
management information and reporting system described in
subparagraph (A), for the collection of information on--
``(i) truancy rates;
``(ii) the frequency, seriousness, and incidence of
violence and drug-related offenses resulting in suspensions
and expulsions in elementary schools and secondary schools
in the State;
``(iii) the types of curricula, programs, and services
provided by the chief executive officer, the State
educational agency, local educational agencies, and other
recipients of funds under this subpart; and
``(iv) the incidence and prevalence, age of onset,
perception of health risk, and perception of social
disapproval of drug use and violence by youth in schools
and communities.
``(C) Compilation of statistics.--In compiling the
statistics required for the uniform management information and
reporting system, the offenses described in subparagraph
(B)(ii) shall be defined pursuant to the State's criminal code,
but shall not identify victims of crimes or persons accused of
crimes. The collected data shall include incident reports by
school officials, anonymous student surveys, and anonymous
teacher surveys.
``(D) Reporting.--The information described under
subparagraph (B) shall be reported to the public and the data
referenced in clauses (i) and (ii) of such subparagraph shall
be reported to the State on a school-by-school basis.
``(E) Limitation.--Nothing in this subsection shall be
construed to authorize the Secretary to require particular
policies, procedures, or practices with respect to crimes
committed on school property or school security.
``SEC. 4113. STATE APPLICATION.
``(a) In General.--In order to receive an allotment under section
4111(b) for any fiscal year, a State shall submit to the Secretary, at
such time as the Secretary may require, an application that--
``(1) contains a comprehensive plan for the use of funds by the
State educational agency and the chief executive officer of the
State to provide safe, orderly, and drug-free schools and
communities through programs and activities that complement and
support activities of local educational agencies under section
4115(b), that comply with the principles of effectiveness under
section 4115(a), and that otherwise are in accordance with the
purpose of this part;
``(2) describes how activities funded under this subpart will
foster a safe and drug-free learning environment that supports
academic achievement;
``(3) provides an assurance that the application was developed
in consultation and coordination with appropriate State officials
and others, including the chief executive officer, the chief State
school officer, the head of the State alcohol and drug abuse
agency, the heads of the State health and mental health agencies,
the head of the State criminal justice planning agency, the head of
the State child welfare agency, the head of the State board of
education, or their designees, and representatives of parents,
students, and community-based organizations;
``(4) describes how the State educational agency will
coordinate such agency's activities under this subpart with the
chief executive officer's drug and violence prevention programs
under this subpart and with the prevention efforts of other State
agencies and other programs, as appropriate, in accordance with the
provisions in section 9306;
``(5) provides an assurance that funds reserved under section
4112(a) will not duplicate the efforts of the State educational
agency and local educational agencies with regard to the provision
of school-based drug and violence prevention activities and that
those funds will be used to serve populations not normally served
by the State educational agencies and local educational agencies
and populations that need special services, such as school
dropouts, suspended and expelled students, youth in detention
centers, runaway or homeless children and youth, and pregnant and
parenting youth;
``(6) provides an assurance that the State will cooperate with,
and assist, the Secretary in conducting data collection as required
by section 4122;
``(7) provides an assurance that the local educational agencies
in the State will comply with the provisions of section 9501
pertaining to the participation of private school children and
teachers in the programs and activities under this subpart;
``(8) provides an assurance that funds under this subpart will
be used to increase the level of State, local, and other non-
Federal funds that would, in the absence of funds under this
subpart, be made available for programs and activities authorized
under this subpart, and in no case supplant such State, local, and
other non-Federal funds;
``(9) contains the results of a needs assessment conducted by
the State for drug and violence prevention programs, which shall be
based on ongoing State evaluation activities, including data on--
``(A) the incidence and prevalence of illegal drug use and
violence among youth in schools and communities, including the
age of onset, the perception of health risks, and the
perception of social disapproval among such youth;
``(B) the prevalence of risk factors, including high or
increasing rates of reported cases of child abuse or domestic
violence;
``(C) the prevalence of protective factors, buffers, or
assets; and
``(D) other variables in the school and community
identified through scientifically based research;
``(10) provides a statement of the State's performance measures
for drug and violence prevention programs and activities to be
funded under this subpart that will be focused on student behavior
and attitudes, derived from the needs assessment described in
paragraph (9), and be developed in consultation between the State
and local officials, and that consist of--
``(A) performance indicators for drug and violence
prevention programs and activities; and
``(B) levels of performance for each performance indicator;
``(11) describes the procedures the State will use for
assessing and publicly reporting progress toward meeting the
performance measures described in paragraph (10);
``(12) provides an assurance that the State application will be
available for public review after submission of the application;
``(13) describes the special outreach activities that will be
carried out by the State educational agency and the chief executive
officer of the State to maximize the participation of community-
based organizations of demonstrated effectiveness that provide
services such as mentoring programs in low-income communities;
``(14) describes how funds will be used by the State
educational agency and the chief executive officer of the State to
support, develop, and implement community-wide comprehensive drug
and violence prevention planning and organizing activities;
``(15) describes how input from parents will be sought
regarding the use of funds by the State educational agency and the
chief executive officer of the State;
``(16) describes how the State educational agency will review
applications from local educational agencies, including how the
agency will receive input from parents in such review;
``(17) describes how the State educational agency will monitor
the implementation of activities under this subpart, and provide
technical assistance for local educational agencies, community-
based organizations, other public entities, and private
organizations;
``(18) describes how the chief executive officer of the State
will award funds under section 4112(a) and implement a plan for
monitoring the performance of, and providing technical assistance
to, recipients of such funds; and
``(19) includes any other information the Secretary may
require.
``(b) Interim Application.--
``(1) Authority.--Notwithstanding any other provision of this
section, a State may submit for fiscal year 2002 a 1-year interim
application and plan for the use of funds under this subpart that
is consistent with the requirements of this section and contains
such information as the Secretary may specify in regulations.
``(2) Purpose.--The purpose of such interim application and
plan shall be to afford the State the opportunity to fully develop
and review such State's application and comprehensive plan
otherwise required by this section.
``(3) Exception.--A State may not receive a grant under this
subpart for a fiscal year after fiscal year 2002 unless the
Secretary has approved such State's application and comprehensive
plan as described in subsection (a).
``(c) Approval Process.--
``(1) Deemed approval.--An application submitted by a State
pursuant to this section shall undergo peer review by the Secretary
and shall be deemed to be approved by the Secretary unless the
Secretary makes a written determination, prior to the expiration of
the 120-day period beginning on the date on which the Secretary
received the application, that the application is not in compliance
with this subpart.
``(2) Disapproval.--The Secretary shall not finally disapprove
the application, except after giving the State educational agency
and the chief executive officer of the State notice and an
opportunity for a hearing.
``(3) Notification.--If the Secretary finds that the
application is not in compliance, in whole or in part, with this
subpart, the Secretary shall--
``(A) give the State educational agency and the chief
executive officer of the State notice and an opportunity for a
hearing; and
``(B) notify the State educational agency and the chief
executive officer of the State of the finding of noncompliance,
and in such notification, shall--
``(i) cite the specific provisions in the application
that are not in compliance; and
``(ii) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(4) Response.--If the State educational agency and the chief
executive officer of the State respond to the Secretary's
notification described in paragraph (3)(B) during the 45-day period
beginning on the date on which the agency received the
notification, and resubmit the application with the requested
information described in paragraph (3)(B)(ii), the Secretary shall
approve or disapprove such application prior to the later of--
``(A) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
``(B) the expiration of the 120-day period described in
paragraph (1).
``(5) Failure to respond.--If the State educational agency and
the chief executive officer of the State do not respond to the
Secretary's notification described in paragraph (3)(B) during the
45-day period beginning on the date on which the agency received
the notification, such application shall be deemed to be
disapproved.
``SEC. 4114. LOCAL EDUCATIONAL AGENCY PROGRAM.
``(a) In General.--
``(1) Funds to local educational agencies.--A State shall
provide the amount made available to the State under this subpart,
less the amounts reserved under section 4112 to local educational
agencies for drug and violence prevention and education programs
and activities as follows:
``(A) 60 percent of such amount based on the relative
amount such agencies received under part A of title I for the
preceding fiscal year.
``(B) 40 percent of such amount based on the relative
enrollments in public and private nonprofit elementary schools
and secondary schools within the boundaries of such agencies.
``(2) Administrative costs.--Of the amount received under
paragraph (1), a local educational agency may use not more than 2
percent for the administrative costs of carrying out its
responsibilities under this subpart.
``(3) Return of funds to state; reallocation.--
``(A) Return.--Except as provided in subparagraph (B), upon
the expiration of the 1-year period beginning on the date on
which a local educational agency receives its allocation under
this subpart--
``(i) such agency shall return to the State educational
agency any funds from such allocation that remain
unobligated; and
``(ii) the State educational agency shall reallocate
any such amount to local educational agencies that have
submitted plans for using such amount for programs or
activities on a timely basis.
``(B) Carryover.--In any fiscal year, a local educational
agency, may retain for obligation in the succeeding fiscal
year--
``(i) an amount equal to not more than 25 percent of
the allocation it received under this subpart for such
fiscal year; or
``(ii) upon a demonstration of good cause by such
agency and approval by the State educational agency, an
amount that exceeds 25 percent of such allocation.
``(C) Reallocation.--If a local educational agency chooses
not to apply to receive the amount allocated to such agency
under 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 submit an
application to the State educational agency in accordance with
subsection (d). Such an application shall be amended, as necessary, to
reflect changes in the activities and programs of the local educational
agency.
``(c) Development.--
``(1) Consultation.--
``(A) In general.--A local educational agency shall develop
its application through timely and meaningful consultation with
State and local government representatives, representatives of
schools to be served (including private schools), teachers and
other staff, parents, students, community-based organizations,
and others with relevant and demonstrated expertise in drug and
violence prevention activities (such as medical, mental health,
and law enforcement professionals).
``(B) Continued consultation.--On an ongoing basis, the
local educational agency shall consult with such
representatives and organizations in order to seek advice
regarding how best to coordinate such agency's activities under
this subpart with other related strategies, programs, and
activities being conducted in the community.
``(2) Design and development.--To ensure timely and meaningful
consultation under paragraph (1), a local educational agency at the
initial stages of design and development of a program or activity
shall consult, in accordance with this subsection, with appropriate
entities and persons on issues regarding the design and development
of the program or activity, including efforts to meet the
principles of effectiveness described in section 4115(a).
``(d) Contents of Applications.--An application submitted by a
local educational agency under this section shall contain--
``(1) an assurance that the activities or programs to be funded
comply with the principles of effectiveness described in section
4115(a) and foster a safe and drug-free learning environment that
supports academic achievement;
``(2) a detailed explanation of the local educational agency's
comprehensive plan for drug and violence prevention, including a
description of--
``(A) how the plan will be coordinated with programs under
this Act, and other Federal, State, and local programs for drug
and violence prevention, in accordance with section 9306;
``(B) the local educational agency's performance measures
for drug and violence prevention programs and activities, that
shall consist of--
``(i) performance indicators for drug and violence
prevention programs and activities; including--
``(I) specific reductions in the prevalence of
identified risk factors; and
``(II) specific increases in the prevalence of
protective factors, buffers, or assets if any have been
identified; and
``(ii) levels of performance for each performance
indicator;
``(C) how such agency will assess and publicly report
progress toward attaining its performance measures;
``(D) the drug and violence prevention activity or program
to be funded, including how the activity or program will meet
the principles of effectiveness described in section 4115(a),
and the means of evaluating such activity or program; and
``(E) how the services will be targeted to schools and
students with the greatest need;
``(3) a description for how the results of the evaluations of
the effectiveness of the program will be used to refine, improve,
and strengthen the program;
``(4) an assurance that funds under this subpart will be used
to increase the level of State, local, and other non-Federal funds
that would, in the absence of funds under this subpart, be made
available for programs and activities authorized under this
subpart, and in no case supplant such State, local, and other non-
Federal funds;
``(5) a description of the mechanisms used to provide effective
notice to the community of an intention to submit an application
under this subpart;
``(6) an assurance that drug and violence prevention programs
supported under this subpart convey a clear and consistent message
that acts of violence and the illegal use of drugs are wrong and
harmful;
``(7) an assurance that the applicant has, or the schools to be
served have, a plan for keeping schools safe and drug-free that
includes--
``(A) appropriate and effective school discipline policies
that prohibit disorderly conduct, the illegal possession of
weapons, and the illegal use, possession, distribution, and
sale of tobacco, alcohol, and other drugs by students;
``(B) security procedures at school and while students are
on the way to and from school;
``(C) prevention activities that are designed to create and
maintain safe, disciplined, and drug-free environments;
``(D) a crisis management plan for responding to violent or
traumatic incidents on school grounds; and
``(E) a code of conduct policy for all students that
clearly states the responsibilities of students, teachers, and
administrators in maintaining a classroom environment that--
``(i) allows a teacher to communicate effectively with
all students in the class;
``(ii) allows all students in the class to learn;
``(iii) has consequences that are fair, and
developmentally appropriate;
``(iv) considers the student and the circumstances of
the situation; and
``(v) is enforced accordingly;
``(8) an assurance that the application and any waiver request
under section 4115(a)(3) will be available for public review after
submission of the application; and
``(9) such other assurances, goals, and objectives identified
through scientifically based research that the State may reasonably
require in accordance with the purpose of this part.
``(e) Review of Application.--
``(1) In general.--In reviewing local applications under this
section, a State educational agency shall use a peer review process
or other methods of assuring the quality of such applications.
``(2) Considerations.--In determining whether to approve the
application of a local educational agency under this section, a
State educational agency shall consider the quality of application
and the extent to which the application meets the principles of
effectiveness described in section 4115(a).
``(f) Approval Process.--
``(1) Deemed approval.--An application submitted by a local
educational agency pursuant to this section shall be deemed to be
approved by the State educational agency unless the State
educational agency makes a written determination, prior to the
expiration of the 120-day period beginning on the date on which the
State educational agency received the application, that the
application is not in compliance with this subpart.
``(2) Disapproval.--The State educational agency shall not
finally disapprove the application, except after giving the local
educational agency notice and opportunity for a hearing.
``(3) Notification.--If the State educational agency finds that
the application is not in compliance, in whole or in part, with
this subpart, the State educational agency shall--
``(A) give the local educational agency notice and an
opportunity for a hearing; and
``(B) notify the local educational agency of the finding of
noncompliance, and in such notification, shall--
``(i) cite the specific provisions in the application
that are not in compliance; and
``(ii) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(4) Response.--If the local educational agency responds to
the State educational agency's notification described in paragraph
(3)(B) during the 45-day period beginning on the date on which the
agency received the notification, and resubmits the application
with the requested information described in paragraph (3)(B)(ii),
the State educational agency shall approve or disapprove such
application prior to the later of--
``(A) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
``(B) the expiration of the 120-day period described in
paragraph (1).
``(5) Failure to respond.--If the local educational agency does
not respond to the State educational agency's notification
described in paragraph (3)(B) during the 45-day period beginning on
the date on which the agency received the notification, such
application shall be deemed to be disapproved.
``SEC. 4115. AUTHORIZED ACTIVITIES.
``(a) Principles of Effectiveness.--
``(1) In general.--For a program or activity developed pursuant
to this subpart to meet the principles of effectiveness, such
program or activity shall--
``(A) be based on an assessment of objective data regarding
the incidence of violence and illegal drug use in the
elementary schools and secondary schools and communities to be
served, including an objective analysis of the current
conditions and consequences regarding violence and illegal drug
use, including delinquency and serious discipline problems,
among students who attend such schools (including private
school students who participate in the drug and violence
prevention program) that is based on ongoing local assessment
or evaluation activities;
``(B) be based on an established set of performance
measures aimed at ensuring that the elementary schools and
secondary schools and communities to be served by the program
have a safe, orderly, and drug-free learning environment;
``(C) be based on scientifically based research that
provides evidence that the program to be used will reduce
violence and illegal drug use;
``(D) be based on an analysis of the data reasonably
available at the time, of the prevalence of risk factors,
including high or increasing rates of reported cases of child
abuse and domestic violence; protective factors, buffers,
assets; or other variables in schools and communities in the
State identified through scientifically based research; and
``(E) include meaningful and ongoing consultation with and
input from parents in the development of the application and
administration of the program or activity.
``(2) Periodic evaluation.--
``(A) Requirement.--The program or activity shall undergo a
periodic evaluation to assess its progress toward reducing
violence and illegal drug use in schools to be served based on
performance measures described in section 4114(d)(2)(B).
``(B) Use of results.--The results shall be used to refine,
improve, and strengthen the program, and to refine the
performance measures, and shall also be made available to the
public upon request, with public notice of such availability
provided.
``(3) Waiver.--A local educational agency may apply to the
State for a waiver of the requirement of subsection (a)(1)(C) to
allow innovative activities or programs that demonstrate
substantial likelihood of success.
``(b) Local Educational Agency Activities.--
``(1) Program requirements.--A local educational agency shall
use funds made available under section 4114 to develop, implement,
and evaluate comprehensive programs and activities, which are
coordinated with other school and community-based services and
programs, that shall--
``(A) foster a safe and drug-free learning environment that
supports academic achievement;
``(B) be consistent with the principles of effectiveness
described in subsection (a)(1);
``(C) be designed to--
``(i) prevent or reduce violence; the use, possession
and distribution of illegal drugs; and delinquency; and
``(ii) create a well disciplined environment conducive
to learning, which includes consultation between teachers,
principals, and other school personnel to identify early
warning signs of drug use and violence and to provide
behavioral interventions as part of classroom management
efforts; and
``(D) include activities to--
``(i) promote the involvement of parents in the
activity or program;
``(ii) promote coordination with community groups and
coalitions, and government agencies; and
``(iii) distribute information about the local
educational agency's needs, goals, and programs under this
subpart.
``(2) Authorized activities.--Each local educational agency, or
consortium of such agencies, that receives a subgrant under this
subpart may use such funds to carry out activities that comply with
the principles of effectiveness described in subsection (a), such
as the following:
``(A) Age appropriate and developmentally based activities
that--
``(i) address the consequences of violence and the
illegal use of drugs, as appropriate;
``(ii) promote a sense of individual responsibility;
``(iii) teach students that most people do not
illegally use drugs;
``(iv) teach students to recognize social and peer
pressure to use drugs illegally and the skills for
resisting illegal drug use;
``(v) teach students about the dangers of emerging
drugs;
``(vi) engage students in the learning process; and
``(vii) incorporate activities in secondary schools
that reinforce prevention activities implemented in
elementary schools.
``(B) Activities that involve families, community sectors
(which may include appropriately trained seniors), and a
variety of drug and violence prevention providers in setting
clear expectations against violence and illegal use of drugs
and appropriate consequences for violence and illegal use of
drugs.
``(C) Dissemination of drug and violence prevention
information to schools and the community.
``(D) Professional development and training for, and
involvement of, school personnel, pupil services personnel,
parents, and interested community members in prevention,
education, early identification and intervention, mentoring, or
rehabilitation referral, as related to drug and violence
prevention.
``(E) Drug and violence prevention activities that may
include the following:
``(i) Community-wide planning and organizing activities
to reduce violence and illegal drug use, which may include
gang activity prevention.
``(ii) Acquiring and installing metal detectors,
electronic locks, surveillance cameras, or other related
equipment and technologies.
``(iii) Reporting criminal offenses committed on school
property.
``(iv) Developing and implementing comprehensive school
security plans or obtaining technical assistance concerning
such plans, which may include obtaining a security
assessment or assistance from the School Security and
Technology Resource Center at the Sandia National
Laboratory located in Albuquerque, New Mexico.
``(v) Supporting safe zones of passage activities that
ensure that students travel safely to and from school,
which may include bicycle and pedestrian safety programs.
``(vi) The hiring and mandatory training, based on
scientific research, of school security personnel
(including school resource officers) who interact with
students in support of youth drug and violence prevention
activities under this part that are implemented in the
school.
``(vii) Expanded and improved school-based mental
health services related to illegal drug use and violence,
including early identification of violence and illegal drug
use, assessment, and direct or group counseling services
provided to students, parents, families, and school
personnel by qualified school-based mental health service
providers.
``(viii) Conflict resolution programs, including peer
mediation programs that educate and train peer mediators
and a designated faculty supervisor, and youth anti-crime
and anti-drug councils and activities.
``(ix) Alternative education programs or services for
violent or drug abusing students that reduce the need for
suspension or expulsion or that serve students who have
been suspended or expelled from the regular educational
settings, including programs or services to assist students
to make continued progress toward meeting the State
academic achievement standards and to reenter the regular
education setting.
``(x) Counseling, mentoring, referral services, and
other student assistance practices and programs, including
assistance provided by qualified school-based mental health
services providers and the training of teachers by school-
based mental health services providers in appropriate
identification and intervention techniques for students at
risk of violent behavior and illegal use of drugs.
``(xi) Programs that encourage students to seek advice
from, and to confide in, a trusted adult regarding concerns
about violence and illegal drug use.
``(xii) Drug and violence prevention activities
designed to reduce truancy.
``(xiii) Age-appropriate, developmentally-based
violence prevention and education programs that address
victimization associated with prejudice and intolerance,
and that include activities designed to help students
develop a sense of individual responsibility and respect
for the rights of others, and to resolve conflicts without
violence.
``(xiv) Consistent with the fourth amendment to the
Constitution of the United States, the testing of a student
for illegal drug use or the inspecting of a student's
locker for weapons or illegal drugs or drug paraphernalia,
including at the request of or with the consent of a parent
or legal guardian of the student, if the local educational
agency elects to so test or inspect.
``(xv) Emergency intervention services following
traumatic crisis events, such as a shooting, major
accident, or a drug-related incident that have disrupted
the learning environment.
``(xvi) Establishing or implementing a system for
transferring suspension and expulsion records, consistent
with section 444 of the General Education Provisions Act
(20 U.S.C. 1232g), by a local educational agency to any
public or private elementary school or secondary school.
``(xvii) Developing and implementing character
education programs, as a component of drug and violence
prevention programs, that take into account the views of
parents of the students for whom the program is intended
and such students, such as a program described in subpart 3
of part D of title V.
``(xviii) Establishing and maintaining a school safety
hotline.
``(xix) Community service, including community service
performed by expelled students, and service-learning
projects.
``(xx) Conducting a nationwide background check of each
local educational agency employee, regardless of when
hired, and prospective employees for the purpose of
determining whether the employee or prospective employee
has been convicted of a crime that bears upon the
employee's fitness--
``(I) to be responsible for the safety or well-
being of children;
``(II) to serve in the particular capacity in which
the employee or prospective employee is or will be
employed; or
``(III) to otherwise be employed by the local
educational agency.
``(xxi) Programs to train school personnel to identify
warning signs of youth suicide and to create an action plan
to help youth at risk of suicide.
``(xxii) Programs that respond to the needs of students
who are faced with domestic violence or child abuse.
``(F) The evaluation of any of the activities authorized
under this subsection and the collection of objective data used
to assess program needs, program implementation, or program
success in achieving program goals and objectives.
``(c) Limitation.--
``(1) In general.--Except as provided in paragraph (2), not
more than 40 percent of the funds available to a local educational
agency under this subpart may be used to carry out the activities
described in clauses (ii) through (vi) of subsection (b)(2)(E), of
which not more than 50 percent of such amount may be used to carry
out the activities described in clauses (ii) through (v) of such
subsection.
``(2) Exception.--A local educational agency may use funds
under this subpart for activities described in clauses (ii) through
(v) of subsection (b)(2)(E) only if funding for these activities is
not received from other Federal agencies.
``(d) Rule of Construction.--Nothing in this section shall be
construed to prohibit the use of funds under this subpart by any local
educational agency or school for the establishment or implementation of
a school uniform policy if such policy is part of the overall
comprehensive drug and violence prevention plan of the State involved
and is supported by the State's needs assessment and other
scientifically based research information.
``SEC. 4116. REPORTING.
``(a) State Report.--
``(1) In general.--By December 1, 2003, and every 2 years
thereafter, the chief executive officer of the State, in
cooperation with the State educational agency, shall submit to the
Secretary a report--
``(A) on the implementation and outcomes of State programs
under section 4112(a)(1) and section 4112(c) and local
educational agency programs under section 4115(b), as well as
an assessment of their effectiveness;
``(B) on the State's progress toward attaining its
performance measures for drug and violence prevention under
section 4113(a)(10); and
``(C) on the State's efforts to inform parents of, and
include parents in, violence and drug prevention efforts.
``(2) Special rule.--The report required by this subsection
shall be--
``(A) in the form specified by the Secretary;
``(B) based on the State's ongoing evaluation activities,
and shall include data on the incidence and prevalence, age of
onset, perception of health risk, and perception of social
disapproval of drug use and violence by youth in schools and
communities; and
``(C) made readily available to the public.
``(b) Local Educational Agency Report.--
``(1) In general.--Each local educational agency receiving
funds under this subpart shall submit to the State educational
agency such information that the State requires to complete the
State report required by subsection (a), including a description of
how parents were informed of, and participated in, violence and
drug prevention efforts.
``(2) Availability.--Information under paragraph (1) shall be
made readily available to the public.
``(3) Provision of documentation.--Not later than January 1 of
each year that a State is required to report under subsection (a),
the Secretary shall provide to the State educational agency all of
the necessary documentation required for compliance with this
section.
``SEC. 4117. PROGRAMS FOR NATIVE HAWAIIANS.
``(a) General Authority.--From the funds made available pursuant to
section 4111(a)(1)(C) to carry out this section, the Secretary shall
make grants to or enter into cooperative agreements or contracts with
organizations primarily serving and representing Native Hawaiians for
the benefit of Native Hawaiians to plan, conduct, and administer
programs, or portions thereof, that are authorized by and consistent
with the provisions of this subpart.
``(b) Definition of Native Hawaiian.--For the purposes of this
section, the term `Native Hawaiian' means any individual any of whose
ancestors were natives, prior to 1778, of the area which now comprises
the State of Hawaii.
``Subpart 2--National Programs
``SEC. 4121. FEDERAL ACTIVITIES.
``(a) Program Authorized.--From funds made available to carry out
this subpart under section 4003(2), the Secretary, in consultation with
the Secretary of Health and Human Services, the Director of the Office
of National Drug Control Policy, and the Attorney General, shall carry
out programs to prevent the illegal use of drugs and violence among,
and promote safety and discipline for, students. The Secretary shall
carry out such programs directly, or through grants, contracts, or
cooperative agreements with public and private entities and
individuals, or through agreements with other Federal agencies, and
shall coordinate such programs with other appropriate Federal
activities. Such programs may include--
``(1) the development and demonstration of innovative
strategies for the training of school personnel, parents, and
members of the community for drug and violence prevention
activities based on State and local needs;
``(2) the development, demonstration, scientifically based
evaluation, and dissemination of innovative and high quality drug
and violence prevention programs and activities, based on State and
local needs, which may include--
``(A) alternative education models, either established
within a school or separate and apart from an existing school,
that are designed to promote drug and violence prevention,
reduce disruptive behavior, reduce the need for repeat
suspensions and expulsions, enable students to meet challenging
State academic standards, and enable students to return to the
regular classroom as soon as possible;
``(B) community service and service-learning projects,
designed to rebuild safe and healthy neighborhoods and increase
students' sense of individual responsibility;
``(C) video-based projects developed by noncommercial
telecommunications entities that provide young people with
models for conflict resolution and responsible decisionmaking;
and
``(D) child abuse education and prevention programs for
elementary and secondary students;
``(3) the provision of information on drug abuse education and
prevention to the Secretary of Health and Human Services for
dissemination;
``(4) the provision of information on violence prevention and
education and school safety to the Department of Justice for
dissemination;
``(5) technical assistance to chief executive officers, State
agencies, local educational agencies, and other recipients of
funding under this part to build capacity to develop and implement
high-quality, effective drug and violence prevention programs
consistent with the principles of effectiveness in section 4115(a);
``(6) assistance to school systems that have particularly
severe drug and violence problems, including hiring drug prevention
and school safety coordinators, or assistance to support
appropriate response efforts to crisis situations;
``(7) the development of education and training programs,
curricula, instructional materials, and professional training and
development for preventing and reducing the incidence of crimes and
conflicts motivated by hate in localities most directly affected by
hate crimes;
``(8) activities in communities designated as empowerment zones
or enterprise communities that will connect schools to community-
wide efforts to reduce drug and violence problems; and
``(9) other activities in accordance with the purpose of this
part, based on State and local needs.
``(b) Peer Review.--The Secretary shall use a peer review process
in reviewing applications for funds under this section.
``SEC. 4122. IMPACT EVALUATION.
``(a) Biennial Evaluation.--The Secretary, in consultation with the
Safe and Drug-Free Schools and Communities Advisory Committee described
in section 4124, shall conduct an independent biennial evaluation of
the impact of programs assisted under this subpart and of other recent
and new initiatives to combat violence and illegal drug use in schools.
The evaluation shall report on whether community and local educational
agency programs funded under this subpart--
``(1) comply with the principles of effectiveness described in
section 4115(a);
``(2) have appreciably reduced the level of illegal drug,
alcohol, and tobacco use, and school violence and the illegal
presence of weapons at schools; and
``(3) have conducted effective parent involvement and training
programs.
``(b) Data Collection.--The National Center for Education
Statistics shall collect data, that is subject to independent review,
to determine the incidence and prevalence of illegal drug use and
violence in elementary schools and secondary schools in the States. The
collected data shall include incident reports by schools officials,
anonymous student surveys, and anonymous teacher surveys.
``(c) Biennial Report.--Not later than January 1, 2003, and every 2
years thereafter, the Secretary shall submit to the President and
Congress a report on the findings of the evaluation conducted under
subsection (a) together with the data collected under subsection (b)
and data available from other sources on the incidence and prevalence,
age of onset, perception of health risk, and perception of social
disapproval of drug use and violence in elementary schools and
secondary schools in the States. The Secretary shall include data
submitted by the States pursuant to subsection 4116(a).
``SEC. 4123. HATE CRIME PREVENTION.
``(a) Grant Authorization.--From funds made available to carry out
this subpart under section 4003(2) the Secretary may make grants to
local educational agencies and community-based organizations for the
purpose of providing assistance to localities most directly affected by
hate crimes.
``(b) Use of Funds.--
``(1) Program development.--Grants under this section may be
used to improve elementary and secondary educational efforts,
including--
``(A) development of education and training programs
designed to prevent and to reduce the incidence of crimes and
conflicts motivated by hate;
``(B) development of curricula for the purpose of improving
conflict or dispute resolution skills of students, teachers,
and administrators;
``(C) development and acquisition of equipment and
instructional materials to meet the needs of, or otherwise be
part of, hate crime or conflict programs; and
``(D) professional training and development for teachers
and administrators on the causes, effects, and resolutions of
hate crimes or hate-based conflicts.
``(2) Application.--In order to be eligible to receive a grant
under this section for any fiscal year, a local educational agency,
or a local educational agency in conjunction with a community-based
organization, shall submit an application to the Secretary in such
form and containing such information as the Secretary may
reasonably require.
``(3) Requirements.--Each application under paragraph (2) shall
include--
``(A) a request for funds for the purpose described in this
section;
``(B) a description of the schools and communities to be
served by the grants; and
``(C) assurances that Federal funds received under this
section shall be used to supplement, and not supplant, non-
Federal funds.
``(4) Comprehensive plan.--Each application shall include a
comprehensive plan that contains--
``(A) a description of the hate crime or conflict problems
within the schools or the community targeted for assistance;
``(B) a description of the program to be developed or
augmented by such Federal and matching funds;
``(C) assurances that such program or activity shall be
administered by or under the supervision of the applicant;
``(D) procedures for the proper and efficient
administration of such program; and
``(E) fiscal control and fund accounting procedures as may
be necessary to ensure prudent use, proper disbursement, and
accurate accounting of funds received under this section.
``(c) Award of Grants.--
``(1) Selection of recipients.--The Secretary shall consider
the incidence of crimes and conflicts motivated by bias in the
targeted schools and communities in awarding grants under this
section.
``(2) Geographic distribution.--The Secretary shall attempt, to
the extent practicable, to achieve an equitable geographic
distribution of grant awards.
``(3) Dissemination of information.--The Secretary shall
attempt, to the extent practicable, to make available information
regarding successful hate crime prevention programs, including
programs established or expanded with grants under this section.
``(d) Reports.--The Secretary shall submit to Congress a report
every 2 years that shall contain a detailed statement regarding grants
and awards, activities of grant recipients, and an evaluation of
programs established under this section.
``SEC. 4124. SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES ADVISORY
COMMITTEE.
``(a) Establishment.--
``(1) In general.--There is hereby established an advisory
committee to be known as the `Safe and Drug Free Schools and
Communities Advisory Committee' (referred to in this section as the
`Advisory Committee') to--
``(A) consult with the Secretary under subsection (b);
``(B) coordinate Federal school- and community-based
substance abuse and violence prevention programs and reduce
duplicative research or services;
``(C) develop core data sets and evaluation protocols for
safe and drug-free school- and community-based programs;
``(D) provide technical assistance and training for safe
and drug-free school- and community-based programs;
``(E) provide for the diffusion of scientifically based
research to safe and drug-free school- and community-based
programs; and
``(F) review other regulations and standards developed
under this title.
``(2) Composition.--The Advisory Committee shall be composed of
representatives from--
``(A) the Department of Education;
``(B) the Centers for Disease Control and Prevention;
``(C) the National Institute on Drug Abuse;
``(D) the National Institute on Alcoholism and Alcohol
Abuse;
``(E) the Center for Substance Abuse Prevention;
``(F) the Center for Mental Health Services;
``(G) the Office of Juvenile Justice and Delinquency
Prevention;
``(H) the Office of National Drug Control Policy;
``(I) State and local governments, including education
agencies; and
``(J) researchers and expert practitioners.
``(3) Consultation.--In carrying out its duties under this
section, the Advisory Committee shall annually consult with
interested State and local coordinators of school- and community-
based substance abuse and violence prevention programs and other
interested groups.
``(b) Programs.--
``(1) In general.--From amounts made available under section
4003(2) to carry out this subpart, the Secretary, in consultation
with the Advisory Committee, shall carry out scientifically based
research programs to strengthen the accountability and
effectiveness of the State, chief executive officer's, and national
programs under this part.
``(2) Grants, contracts or cooperative agreements.--The
Secretary shall carry out paragraph (1) directly or through grants,
contracts, or cooperative agreements with public and private
entities and individuals or through agreements with other Federal
agencies.
``(3) Coordination.--The Secretary shall coordinate programs
under this section with other appropriate Federal activities.
``(4) Activities.--Activities that may be carried out under
programs funded under this section may include--
``(A) the provision of technical assistance and training,
in collaboration with other Federal agencies utilizing their
expertise and national and regional training systems, for
Governors, State educational agencies and local educational
agencies to support high quality, effective programs that--
``(i) provide a thorough assessment of the substance
abuse and violence problem;
``(ii) utilize objective data and the knowledge of a
wide range of community members;
``(iii) develop measurable goals and objectives; and
``(iv) implement scientifically based research
activities that have been shown to be effective and that
meet identified needs;
``(B) the provision of technical assistance and training to
foster program accountability;
``(C) the diffusion and dissemination of best practices and
programs;
``(D) the development of core data sets and evaluation
tools;
``(E) program evaluations;
``(F) the provision of information on drug abuse education
and prevention to the Secretary of Health and Human Services
for dissemination by the clearinghouse for alcohol and drug
abuse information established under section 501(d)(16) of the
Public Health Service Act; and
``(G) other activities that meet unmet needs related to the
purpose of this part and that are undertaken in consultation
with the Advisory Committee.
``SEC. 4125. NATIONAL COORDINATOR PROGRAM.
``(a) In General.--From funds made available to carry out this
subpart under section 4003(2), the Secretary may provide for the
establishment of a National Coordinator Program under which the
Secretary shall award grants to local educational agencies for the
hiring of drug prevention and school safety program coordinators.
``(b) Use of Funds.--Amounts received under a grant under
subsection (a) shall be used by local educational agencies to recruit,
hire, and train individuals to serve as drug prevention and school
safety program coordinators in schools with significant drug and school
safety problems. Such coordinators shall be responsible for developing,
conducting, and analyzing assessments of drug and crime problems at
their schools, and administering the safe and drug-free grant program
at such schools.
``SEC. 4126. COMMUNITY SERVICE GRANT PROGRAM.
``(a) In General.--From funds made available to carry out this
subpart under section 4003(2), the Secretary may make grants to States
to carry out programs under which students expelled or suspended from
school are required to perform community service.
``(b) Allocation.--From the amount described in subsection (a), the
Secretary shall allocate among the States--
``(1) 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. 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. The Center will also conduct and publish school violence
research, coalesce data from victim communities, and monitor and report
on schools that implement school security strategies.
``SEC. 4128. NATIONAL CENTER FOR SCHOOL AND YOUTH SAFETY.
``(a) Establishment.--From funds made available to carry out this
subpart under section 4003(2), the Secretary of Education and the
Attorney General may jointly establish a National Center for School and
Youth Safety (in this section referred to as the `Center'). The
Secretary of Education and the Attorney General may establish the
Center at an existing facility, if the facility has a history of
performing two or more of the duties described in subsection (b). The
Secretary of Education and the Attorney General shall jointly appoint a
Director of the Center to oversee the operation of the Center.
``(b) Duties.--The Center shall carry out emergency response,
anonymous student hotline, consultation, and information and outreach
activities with respect to elementary and secondary school safety,
including the following:
``(1) Emergency response.--The staff of the Center, and such
temporary contract employees as the Director of the Center shall
determine necessary, shall offer emergency assistance to local
communities to respond to school safety crises. Such assistance
shall include counseling for victims and the community, assistance
to law enforcement to address short-term security concerns, and
advice on how to enhance school safety, prevent future incidents,
and respond to future incidents.
``(2) Anonymous student hotline.--The Center shall establish a
toll-free telephone number for students to report criminal
activity, threats of criminal activity, and other high-risk
behaviors such as substance abuse, gang or cult affiliation,
depression, or other warning signs of potentially violent behavior.
The Center shall relay the reports, without attribution, to local
law enforcement or appropriate school hotlines. The Director of the
Center shall work with the Attorney General to establish guidelines
for Center staff to work with law enforcement around the Nation to
relay information reported through the hotline.
``(3) Consultation.--The Center shall establish a toll-free
number for the public to contact staff of the Center for
consultation regarding school safety. The Director of the Center
shall hire administrative staff and individuals with expertise in
enhancing school safety, including individuals with backgrounds in
counseling and psychology, education, law enforcement and criminal
justice, and community development to assist in the consultation.
``(4) Information and outreach.--The Center shall compile
information about the best practices in school violence prevention,
intervention, and crisis management, and shall serve as a
clearinghouse for model school safety program information. The
staff of the Center shall work to ensure local governments, school
officials, parents, students, and law enforcement officials and
agencies are aware of the resources, grants, and expertise
available to enhance school safety and prevent school crime. The
staff of the Center shall give special attention to providing
outreach to rural and impoverished communities.
``SEC. 4129. GRANTS TO REDUCE ALCOHOL ABUSE.
``(a) In General.--The Secretary, in consultation with the
Administrator of the Substance Abuse and Mental Health Services
Administration, may award grants from funds made available to carry out
this subpart under section 4003(2), on a competitive basis, to local
educational agencies to enable such agencies to develop and implement
innovative and effective programs to reduce alcohol abuse in secondary
schools.
``(b) Eligibility.--To be eligible to receive a grant under
subsection (a), a local educational agency shall prepare and submit to
the Secretary an application at such time, in such manner, and
containing such information as the Secretary may require, including--
``(1) a description of the activities to be carried out under
the grant;
``(2) an assurance that such activities will include 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) Streamlining of Process for Low-Income and Rural LEAs.--The
Secretary, in consultation with the Administrator of the Substance
Abuse and Mental Health Services Administration, shall develop
procedures to make the application process for grants under this
section more user-friendly, particularly for low-income and rural local
educational agencies.
``(d) Reservations.--
``(1) SAMHSA.--The Secretary may reserve 20 percent of any
amount used to carry out this section to enable the Administrator
of the Substance Abuse and Mental Health Services Administration to
provide alcohol abuse resources and start-up assistance to local
educational agencies receiving grants under this section.
``(2) Low-income and rural areas.--The Secretary may reserve 25
percent of any amount used to carry out this section to award
grants to low-income and rural local educational agencies.
``SEC. 4130. MENTORING PROGRAMS.
``(a) Purpose; Definitions.--
``(1) Purpose.--The purpose of this section is to make
assistance available to promote mentoring programs for children
with greatest need--
``(A) to assist such children in receiving support and
guidance from a mentor;
``(B) to improve the academic achievement of such children;
``(C) to improve interpersonal relationships between such
children and their peers, teachers, other adults, and family
members;
``(D) to reduce the dropout rate of such children; and
``(E) to reduce juvenile delinquency and involvement in
gangs by such children.
``(2) Definitions.--In this part:
``(A) Child with greatest need.--The term `child with
greatest need' means a child who is at risk of educational
failure, dropping out of school, or involvement in criminal or
delinquent activities, or who lacks strong positive role
models.
``(B) Eligible entity.--The term `eligible entity' means--
``(i) a local educational agency;
``(ii) a nonprofit, community-based organization; or
``(iii) a partnership between a local educational
agency and a nonprofit, community-based organization.
``(C) Mentor.--The term `mentor' means a responsible adult,
a postsecondary school student, or a secondary school student
who works with a child--
``(i) to provide a positive role model for the child;
``(ii) to establish a supportive relationship with the
child; and
``(iii) to provide the child with academic assistance
and exposure to new experiences and examples of opportunity
that enhance the ability of the child to become a
responsible adult.
``(D) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana Islands.
``(b) Grant Program.--
``(1) In general.--The Secretary may award grants from funds
made available to carry out this subpart under section 4003(2) to
eligible entities to assist such entities in establishing and
supporting mentoring programs and activities for children with
greatest need that--
``(A) are designed to link such children (particularly
children living in rural areas, high-crime areas, or troubled
home environments, or children experiencing educational
failure) with mentors who--
``(i) have received training and support in mentoring;
``(ii) have been screened using appropriate reference
checks, child and domestic abuse record checks, and
criminal background checks; and
``(iii) are interested in working with children with
greatest need; and
``(B) are intended to achieve 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.--
``(A) In general.--Each eligible entity awarded a grant
under this subsection shall use the grant funds for activities
that establish or implement a mentoring program, that may
include--
``(i) hiring of mentoring coordinators and support
staff;
``(ii) providing for the professional development of
mentoring coordinators and support staff;
``(iii) recruitment, screening, and training of
mentors;
``(iv) reimbursement to schools, if appropriate, for
the use of school materials or supplies in carrying out the
mentoring program;
``(v) dissemination of outreach materials;
``(vi) evaluation of the mentoring program using
scientifically based methods; and
``(vii) such other activities as the Secretary may
reasonably prescribe by rule.
``(B) Prohibited uses.--Notwithstanding subparagraph (A),
an eligible entity awarded a grant under this section may not
use the grant funds--
``(i) to directly compensate mentors;
``(ii) to obtain educational or other materials or
equipment that would otherwise be used in the ordinary
course of the eligible entity's operations;
``(iii) to support litigation of any kind; or
``(iv) for any other purpose reasonably prohibited by
the Secretary by rule.
``(3) Availability of funds.--Funds made available through a
grant under this section shall be available for obligation for a
period not to exceed 3 years.
``(4) Application.--Each eligible entity seeking a grant under
this section shall submit to the Secretary an application that
includes--
``(A) a description of the plan for the mentoring program
the eligible entity proposes to carry out with such grant;
``(B) information on the children expected to be served by
the mentoring program for which such grant is sought;
``(C) a description of the mechanism the eligible entity
will use to match children with mentors based on the needs of
the children;
``(D) an assurance that no mentor will be assigned to
mentor so many children that the assignment will undermine the
mentor's ability to be an effective mentor or the mentor's
ability to establish a close relationship (a one-to-one
relationship, where practicable) with each mentored child;
``(E) an assurance that the mentoring program will provide
children with a variety of experiences and support, including--
``(i) emotional support;
``(ii) academic assistance; and
``(iii) exposure to experiences that the children might
not otherwise encounter on their own;
``(F) an assurance that the mentoring program will be
monitored to ensure that each child assigned a mentor benefits
from that assignment and that the child will be assigned a new
mentor if the relationship between the original mentor and the
child is not beneficial to the child;
``(G) information regarding how mentors and children will
be recruited to the mentoring program;
``(H) information regarding how prospective mentors will be
screened;
``(I) information on the training that will be provided to
mentors; and
``(J) information on the system that the eligible entity
will use to manage and monitor information relating to the
mentoring program's--
``(i) reference checks;
``(ii) child and domestic abuse record checks;
``(iii) criminal background checks; and
``(iv) procedure for matching children with mentors.
``(5) Selection.--
``(A) Competitive basis.--In accordance with this
subsection, the Secretary shall award grants to eligible
entities on a competitive basis.
``(B) Priority.--In awarding grants under subparagraph (A),
the Secretary shall give priority to each eligible entity
that--
``(i) serves children with greatest need living in
rural areas, high-crime areas, or troubled home
environments, or who attend schools with violence problems;
``(ii) provides high quality background screening of
mentors, training of mentors, and technical assistance in
carrying out mentoring programs; or
``(iii) proposes a school-based mentoring program.
``(C) Other considerations.--In awarding grants under
subparagraph (A), the Secretary shall also consider--
``(i) the degree to which the location of the mentoring
program proposed by each eligible entity contributes to a
fair distribution of mentoring programs with respect to
urban and rural locations;
``(ii) the quality of the mentoring program proposed by
each eligible entity, including--
``(I) the resources, if any, the eligible entity
will dedicate to providing children with opportunities
for job training or postsecondary education;
``(II) the degree to which parents, teachers,
community-based organizations, and the local community
have participated, or will participate, in the design
and implementation of the proposed mentoring program;
``(III) the degree to which the eligible entity can
ensure that mentors will develop longstanding
relationships with the children they mentor;
``(IV) the degree to which the mentoring program
will serve children with greatest need in the 4th
through 8th grades; and
``(V) the degree to which the mentoring program
will continue to serve children from the 9th grade
through graduation from secondary school, as needed;
and
``(iii) the capability of each eligible entity to
effectively implement its mentoring program.
``(D) Grant to each state.--Notwithstanding any other
provision of this subsection, in awarding grants under
subparagraph (A), the Secretary shall select not less than 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 Possession
``SEC. 4141. GUN-FREE REQUIREMENTS.
``(a) Short Title.--This subpart may be cited as the `Gun-Free
Schools Act'.
``(b) Requirements.--
``(1) In general.--Each State receiving Federal funds under 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
``(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. DEFINITIONS.
``In this part:
``(1) Controlled substance.--The term `controlled substance'
means a drug or other substance identified under Schedule I, II,
III, IV, or V in section 202(c) of the Controlled Substances Act
(21 U.S.C. 812(c)).
``(2) Drug.--The term `drug' includes controlled substances;
the illegal use of alcohol and tobacco; and the harmful, abusive,
or addictive use of substances, including inhalants and anabolic
steroids.
``(3) Drug and violence prevention.--The term `drug and
violence prevention' means--
``(A) with respect to drugs, prevention, early
intervention, rehabilitation referral, or education related to
the illegal use of drugs;
``(B) with respect to violence, the promotion of school
safety, such that students and school personnel are free from
violent and disruptive acts, including sexual harassment and
abuse, and victimization associated with prejudice and
intolerance, on school premises, going to and from school, and
at school-sponsored activities, through the creation and
maintenance of a school environment that is free of weapons and
fosters individual responsibility and respect for the rights of
others.
``(4) Hate crime.--The term `hate crime' means a crime as
described in section 1(b) of the Hate Crime Statistics Act of 1990.
``(5) Nonprofit.--The term `nonprofit', as applied to a school,
agency, organization, or institution means a school, agency,
organization, or institution owned and operated by one or more
nonprofit corporations or associations, no part of the net earnings
of which inures, or may lawfully inure, to the benefit of any
private shareholder or individual.
``(6) Protective factor, buffer, or asset.--The terms
`protective factor', `buffer', and `asset' mean any one of a number
of the community, school, family, or peer-individual domains that
are known, through prospective, longitudinal research efforts, or
which are grounded in a well-established theoretical model of
prevention, and have been shown to prevent alcohol, tobacco, or
illegal drug use, as well as violent behavior, by youth in the
community, and which promote positive youth development.
``(7) Risk factor.--The term `risk factor' means any one of a
number of characteristics of the community, school, family, or
peer-individual domains that are known, through prospective,
longitudinal research efforts, to be predictive of alcohol,
tobacco, and illegal drug use, as well as violent behavior, by
youth in the school and community.
``(8) School-aged population.--The term `school-aged
population' means the population aged five through 17, as
determined by the Secretary on the basis of the most recent
satisfactory data available from the Department of Commerce.
``(9) School based mental health services provider.--The term
`school based mental health services provider' includes a State
licensed or State certified school counselor, school psychologist,
school social worker, or other State licensed or certified mental
health professional qualified under State law to provide such
services to children and adolescents.
``(10) School personnel.--The term `school personnel' includes
teachers, principals, administrators, counselors, social workers,
psychologists, nurses, librarians, and other support staff who are
employed by a school or who perform services for the school on a
contractual basis.
``(11) School resource officer.--The term `school resource
officer' means a career law enforcement officer, with sworn
authority, deployed in community oriented policing, and assigned by
the employing police department to a local educational agency to
work in collaboration with schools and community based
organizations to--
``(A) educate students in crime and illegal drug use
prevention and safety;
``(B) develop or expand community justice initiatives for
students; and
``(C) train students in conflict resolution, restorative
justice, and crime and illegal drug use awareness.
``SEC. 4152. MESSAGE AND MATERIALS.
``(a) `Wrong and Harmful' Message.--Drug and violence prevention
programs supported under this part shall convey a clear and consistent
message that the illegal use of drugs and acts of violence are wrong
and harmful.
``(b) Curriculum.--The Secretary shall not prescribe the use of
specific curricula for programs supported under this part.
``SEC. 4153. PARENTAL CONSENT.
``Upon receipt of written notification from the parents or legal
guardians of a student, the local educational agency shall withdraw
such student from any program or activity funded under this part. The
local educational agency shall make reasonable efforts to inform
parents or legal guardians of the content of such programs or
activities funded under this part, other than classroom instruction.
``SEC. 4154. PROHIBITED USES OF FUNDS.
``No funds under this part may be used for--
``(1) construction (except for minor remodeling needed to
accomplish the purposes of this part); or
``(2) medical services, drug treatment or rehabilitation,
except for pupil services or referral to treatment for students who
are victims of, or witnesses to, crime or who illegally use drugs.
``SEC. 4155. TRANSFER OF SCHOOL DISCIPLINARY RECORDS.
``(a) Nonapplication of Provisions.--This section shall not apply
to any disciplinary records with respect to a suspension or expulsion
that are transferred from a private, parochial or other nonpublic
school, person, institution, or other entity, that provides education
below the college level.
``(b) Disciplinary Records.--In accordance with the Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g), not later
than 2 years after the date of enactment of this part, each State
receiving Federal funds under this Act shall provide an assurance to
the Secretary that the State has a procedure in place to facilitate the
transfer of disciplinary records, with respect to a suspension or
expulsion, by local educational agencies to any private or public
elementary school or secondary school for any student who is enrolled
or seeks, intends, or is instructed to enroll, on a full- or part-time
basis, in the school.
``PART B--21ST CENTURY COMMUNITY LEARNING CENTERS
``SEC. 4201. PURPOSE; DEFINITIONS.
``(a) Purpose.--The purpose of this part is to provide
opportunities for communities to establish or expand activities in
community learning centers that--
``(1) provide opportunities for academic enrichment, including
providing tutorial services to help students, particularly students
who attend low-performing schools, to meet State and local student
academic achievement standards in core academic subjects, such as
reading and mathematics;
``(2) offer students a broad array of additional services,
programs, and activities, such as youth development activities,
drug and violence prevention programs, counseling programs, art,
music, and recreation programs, technology education programs, and
character education programs, that are designed to reinforce and
complement the regular academic program of participating students;
and
``(3) offer families of students served by community learning
centers opportunities for literacy and related educational
development.
``(b) Definitions.--In this part:
``(1) Community learning center.--The term `community learning
center' means an entity that--
``(A) assists students in meeting State and local academic
achievement standards in core academic subjects, such as
reading and mathematics, by providing the students with
opportunities for academic enrichment activities and a broad
array of other activities (such as drug and violence
prevention, counseling, art, music, recreation, technology, and
character education programs) during nonschool hours or periods
when school is not in session (such as before and after school
or during summer recess) that reinforce and complement the
regular academic programs of the schools attended by the
students served; and
``(B) offers families of students served by such center
opportunities for literacy and related educational development.
``(2) Covered program.--The term `covered program' means a
program for which--
``(A) the Secretary made a grant under part I of title X
(as such part was in effect on the day before the date of
enactment of the No Child Left Behind Act of 2001); and
``(B) the grant period had not ended on that date of
enactment.
``(3) Eligible entity.--The term `eligible entity' means a
local educational agency, community-based organization, another
public or private entity, or a consortium of 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. ALLOTMENTS TO STATES.
``(a) Reservation.--From the funds appropriated under section 4206
for any fiscal year, the Secretary shall reserve--
``(1) such amount as may be necessary to make continuation
awards to grant recipients under covered programs (under the terms
of those grants);
``(2) not more than 1 percent for national activities, which
the Secretary may carry out directly or through grants and
contracts, such as providing technical assistance to eligible
entities carrying out programs under this part or conducting a
national evaluation; and
``(3) not more than 1 percent for payments to the outlying
areas and the Bureau of Indian Affairs, to be allotted in
accordance with their respective needs for assistance under this
part, as determined by the Secretary, to enable the outlying areas
and the Bureau to carry out the purpose of this part.
``(b) State Allotments.--
``(1) Determination.--From the funds appropriated under section
4206 for any fiscal year and remaining after the Secretary makes
reservations under subsection (a), the Secretary shall allot to
each State for the fiscal year an amount that bears the same
relationship to the remainder as the amount the State received
under subpart 2 of part A of title I for the preceding fiscal year
bears to the amount all States received under that subpart for the
preceding fiscal year, except that no State shall receive less than
an amount equal to 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. STATE APPLICATION.
``(a) In General.--In order to receive an allotment under section
4202 for any fiscal year, a State shall submit to the Secretary, at
such time as the Secretary may require, an application that--
``(1) designates the State educational agency as the agency
responsible for the administration and supervision of programs
assisted under this part;
``(2) describes how the State educational agency will use funds
received under this part, including funds reserved for State-level
activities;
``(3) contains an assurance that the State educational agency
will make awards under this part only to eligible entities that
propose to serve--
``(A) students who primarily attend--
``(i) schools eligible for schoolwide programs under
section 1114; or
``(ii) schools that serve a high percentage of students
from low-income families; and
``(B) the families of students described in subparagraph
(A);
``(4) describes the procedures and criteria the State
educational agency will use for reviewing applications and awarding
funds to eligible entities on a competitive basis, which shall
include procedures and criteria that take into consideration the
likelihood that a proposed community learning center will help
participating students meet local content and student academic
achievement standards;
``(5) describes how the State educational agency will ensure
that awards made under this part are--
``(A) of sufficient size and scope to support high-quality,
effective programs that are consistent with the purpose of this
part; and
``(B) in amounts that are consistent with section 4204(h);
``(6) describes the steps the State educational agency will
take to ensure that programs implement effective strategies,
including providing ongoing technical assistance and training,
evaluation, and dissemination of promising practices;
``(7) describes how programs under this part will be
coordinated with programs under this Act, and other programs as
appropriate;
``(8) contains an assurance that the State educational agency--
``(A) will make awards for programs for a period of not
less than 3 years and not more than 5 years; and
``(B) will require each eligible entity seeking such an
award to submit a plan describing how the community learning
center to be funded through the award will continue after
funding under this part ends;
``(9) contains an assurance that funds appropriated to carry
out this part will be used to supplement, and not supplant, other
Federal, State, and local public funds expended to provide programs
and activities authorized under this part and other similar
programs;
``(10) contains an assurance that the State educational agency
will require eligible entities to describe in their applications
under section 4204(b) how the transportation needs of participating
students will be addressed;
``(11) provides an assurance that the application was developed
in consultation and coordination with appropriate State officials,
including the chief State school officer, and other State agencies
administering before and after school (or summer school) programs,
the heads of the State health and mental health agencies or their
designees, and representatives of teachers, parents, students, the
business community, and community-based organizations;
``(12) describes the results of the State's needs and resources
assessment for before and after school activities, which shall be
based on the results of on-going State evaluation activities;
``(13) describes how the State educational agency will evaluate
the effectiveness of programs and activities carried out under this
part, which shall include, at a minimum--
``(A) a description of the performance indicators and
performance measures that will be used to evaluate programs and
activities; and
``(B) public dissemination of the evaluations of programs
and activities carried out under this part; and
``(14) provides for timely public notice of intent to file an
application and an assurance that the application will be available
for public review after submission.
``(b) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this part.
``(c) Disapproval.--The Secretary shall not finally disapprove the
application, except after giving the State educational agency notice
and opportunity for a hearing.
``(d) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this part, the Secretary
shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance, and, in such notification, shall--
``(A) cite the specific provisions in the application that
are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(e) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (d)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (d)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the date
on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (b).
``(f) Failure To Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (d)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
``SEC. 4204. LOCAL COMPETITIVE GRANT PROGRAM.
``(a) In General.--A State that receives funds under this part for
a fiscal year shall provide the amount made available under section
4202(c)(1) to eligible entities for community learning centers in
accordance with this part.
``(b) Application.--
``(1) In general.--To be eligible to receive an award under
this part, an eligible entity shall submit an application to the
State educational agency at such time, in such manner, and
including such information as the State educational agency may
reasonably require.
``(2) Contents.--Each application submitted under paragraph (1)
shall include--
``(A) a description of the before and after school or
summer recess activities to be funded, including--
``(i) an assurance that the program will take place in
a safe and easily accessible facility;
``(ii) a description of how students participating in
the program carried out by the community learning center
will travel safely to and from the center and home; and
``(iii) a description of how the eligible entity will
disseminate information about the community learning center
(including its location) to the community in a manner that
is understandable and accessible;
``(B) a description of how the activity is expected to
improve student academic achievement;
``(C) an identification of Federal, State, and local
programs that will be combined or coordinated with the proposed
program to make the most effective use of public resources;
``(D) an assurance that the proposed program was developed,
and will be carried out, in active collaboration with the
schools the students attend;
``(E) a description of how the activities will meet the
principles of effectiveness described in section 4205(b);
``(F) an assurance that the program will primarily target
students who attend schools eligible for schoolwide programs
under section 1114 and the families of such students;
``(G) an assurance that funds under this part will be used
to increase the level of State, local, and other non-Federal
funds that would, in the absence of funds under this part, be
made available for programs and activities authorized under
this part, and in no case supplant Federal, State, local, or
non-Federal funds;
``(H) a description of the partnership between a local
educational agency, a community-based organization, and another
public entity or private entity, if appropriate;
``(I) an evaluation of the community needs and available
resources for the community learning center and a description
of how the program proposed to be carried out in the center
will address those needs (including the needs of working
families);
``(J) a demonstration that the eligible entity has
experience, or promise of success, in providing educational and
related activities that will complement and enhance the
academic performance, achievement, and positive youth
development of the students;
``(K) a description of a preliminary plan for how the
community learning center will continue after funding under
this part ends;
``(L) an assurance that the community will be given notice
of an intent to submit an application and that the application
and any waiver request will be available for public review
after submission of the application;
``(M) if the eligible entity plans to use senior volunteers
in activities carried out through the community learning
center, a description of how the eligible entity will encourage
and use appropriately qualified seniors to serve as the
volunteers; and
``(N) such other information and assurances as the State
educational agency may reasonably require.
``(c) Approval of Certain Applications.--The State educational
agency may approve an application under this part for a program to be
located in a facility other than an elementary school or secondary
school only if the program will be at least as available and accessible
to the students to be served as if the program were located in an
elementary school or secondary school.
``(d) Permissive Local Match.--
``(1) In general.--A State educational agency may require an
eligible entity to match funds awarded under this part, except that
such match may not exceed the amount of the grant award and may not
be derived from other Federal or State funds.
``(2) Sliding scale.--The amount of a match under paragraph (1)
shall be established based on a sliding fee scale that takes into
account--
``(A) the relative poverty of the population to be targeted
by the eligible entity; and
``(B) the ability of the eligible entity to obtain such
matching funds.
``(3) In-kind contributions.--Each State educational agency
that requires an eligible entity to match funds under this
subsection shall permit the eligible entity to provide all or any
portion of such match in the form of in-kind contributions.
``(4) Consideration.--Notwithstanding this subsection, a State
educational agency shall not consider an eligible entity's ability
to match funds when determining which eligible entities will
receive awards under this part.
``(e) Peer Review.--In reviewing local applications under this
section, a State educational agency shall use a peer review process or
other methods of assuring the quality of such applications.
``(f) Geographic Diversity.--To the extent practicable, a State
educational agency shall distribute funds under this part equitably
among geographic areas within the State, including urban and rural
communities.
``(g) Duration of Awards.--Grants under this part may be awarded
for a period of not less than 3 years and not more than 5 years.
``(h) Amount of Awards.--A grant awarded under this part may not be
made in an amount that is less than $50,000.
``(i) Priority.--
``(1) In general.--In awarding grants under this part, a State
educational agency shall give priority to applications--
``(A) proposing to target services to students who attend
schools that have been identified as in need of improvement
under section 1116; and
``(B) submitted jointly by eligible entities consisting of
not less than 1--
``(i) local educational agency receiving funds under
part A of title I; and
``(ii) community-based organization or other public or
private entity.
``(2) Special rule.--The State educational agency shall provide
the same priority under paragraph (1) to an application submitted
by a local educational agency if the local educational agency
demonstrates that it is unable to partner with a community-based
organization in reasonable geographic proximity and of sufficient
quality to meet the requirements of this part.
``SEC. 4205. LOCAL ACTIVITIES.
``(a) Authorized Activities.--Each eligible entity that receives an
award under this part may use the award funds to carry out a broad
array of before and after school activities (including during summer
recess periods) that advance student academic achievement, including--
``(1) remedial education activities and academic enrichment
learning programs, including providing additional assistance to
students to allow the students to improve their academic
achievement;
``(2) mathematics and science education activities;
``(3) arts and music education activities;
``(4) entrepreneurial education programs;
``(5) tutoring services (including those provided by senior
citizen volunteers) and mentoring programs;
``(6) programs that provide after school activities for limited
English proficient students that emphasize language skills and
academic achievement;
``(7) recreational activities;
``(8) telecommunications and technology education programs;
``(9) expanded library service hours;
``(10) programs that promote parental involvement and family
literacy;
``(11) programs that provide assistance to students who have
been truant, suspended, or expelled to allow the students to
improve their academic achievement; and
``(12) drug and violence prevention programs, counseling
programs, and character education programs.
``(b) Principles of Effectiveness.--
``(1) In general.--For a program or activity developed pursuant
to this part to meet the principles of effectiveness, such program
or activity shall--
``(A) be based upon an assessment of objective data
regarding the need for before and after school programs
(including during summer recess periods) and activities in the
schools and communities;
``(B) be based upon an established set of performance
measures aimed at ensuring the availability of high quality
academic enrichment opportunities; and
``(C) if appropriate, be based upon scientifically based
research that provides evidence that the program or activity
will help students meet the State and local student academic
achievement standards.
``(2) Periodic evaluation.--
``(A) In general.--The program or activity shall undergo a
periodic evaluation to assess its progress toward achieving its
goal of providing high quality opportunities for academic
enrichment.
``(B) Use of results.--The results of evaluations under
subparagraph (A) shall be--
``(i) used to refine, improve, and strengthen the
program or activity, and to refine the performance
measures; and
``(ii) made available to the public upon request, with
public notice of such availability provided.
``SEC. 4206. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated--
``(1) $1,250,000,000 for fiscal year 2002;
``(2) $1,500,000,000 for fiscal year 2003;
``(3) $1,750,000,000 for fiscal year 2004;
``(4) $2,000,000,000 for fiscal year 2005;
``(5) $2,250,000,000 for fiscal year 2006; and
``(6) $2,500,000,000 for fiscal year 2007.
``PART C--ENVIRONMENTAL TOBACCO SMOKE
``SEC. 4301. SHORT TITLE.
``This part may be cited as the `Pro-Children Act of 2001'.
``SEC. 4302. DEFINITIONS.
``As used in this part:
``(1) Children.--The term `children' means individuals who have
not attained the age of 18.
``(2) Children's services.--The term `children's services'
means the provision on a routine or regular basis of health, day
care, education, or library services--
``(A) that are funded, after the date of enactment of the
No Child Left Behind Act of 2001, directly by the Federal
Government or through State or local governments, by Federal
grant, loan, loan guarantee, or contract programs--
``(i) administered by either the Secretary of Health
and Human Services or the Secretary of Education (other
than services provided and funded solely under titles XVIII
and XIX of the Social Security Act); or
``(ii) administered by the Secretary of Agriculture in
the case of a clinic (as defined in part 246.2 of title 7,
Code of Federal Regulations (or any corresponding similar
regulation or ruling)) under section 17(b)(6) of the Child
Nutrition Act of 1966; or
``(B) that are provided in indoor facilities that are
constructed, operated, or maintained with such Federal funds,
as determined by the appropriate head of a Federal agency in
any enforcement action carried out under this part,
except that nothing in clause (ii) of subparagraph (A) is intended
to include facilities (other than clinics) where coupons are
redeemed under the Child Nutrition Act of 1966.
``(3) Indoor facility.--The term `indoor facility' means a
building that is enclosed.
``(4) Person.--The term `person' means any State or local
subdivision of a State, agency of such State or subdivision,
corporation, or partnership that owns or operates or otherwise
controls and provides children's services or any individual who
owns or operates or otherwise controls and provides such services.
``(5) Secretary.--The term `Secretary' means the Secretary of
Health and Human Services.
``SEC. 4303. NONSMOKING POLICY FOR CHILDREN'S SERVICES.
``(a) Prohibition.--After the date of enactment of the No Child
Left Behind Act of 2001, no person shall permit smoking within any
indoor facility owned or leased or contracted for, and utilized, by
such person for provision of routine or regular kindergarten,
elementary, or secondary education or library services to children.
``(b) Additional Prohibition.--
``(1) In general.--After the date of enactment of the No Child
Left Behind Act of 2001, no person shall permit smoking within any
indoor facility (or portion of such a facility) owned or leased or
contracted for, and utilized by, such person for the provision of
regular or routine health care or day care or early childhood
development (Head Start) services.
``(2) Exception.--Paragraph (1) shall not apply to--
``(A) any portion of such facility that is used for
inpatient hospital treatment of individuals dependent on, or
addicted to, drugs or alcohol; and
``(B) any private residence.
``(c) Federal Agencies.--
``(1) Kindergarten, elementary, or secondary education or
library services.--After the date of enactment of the No Child Left
Behind Act of 2001, no Federal agency shall permit smoking within
any indoor facility in the United States operated by such agency,
directly or by contract, to provide routine or regular
kindergarten, elementary, or secondary education or library
services to children.
``(2) Health or day care or early childhood development
services.--
``(A) In general.--After the date of enactment of the No
Child Left Behind Act of 2001, no Federal agency shall permit
smoking within any indoor facility (or portion of such
facility) operated by such agency, directly or by contract, to
provide routine or regular health or day care or early
childhood development (Head Start) services to children.
``(B) Exception.--Subparagraph (A) shall not apply to--
``(i) any portion of such facility that is used for
inpatient hospital treatment of individuals dependent on,
or addicted to, drugs or alcohol; and
``(ii) any private residence.
``(3) Application of provisions.--The provisions of paragraph
(2) shall also apply to the provision of such routine or regular
kindergarten, elementary or secondary education or library services
in the facilities described in paragraph (2) not subject to
paragraph (1).
``(d) Notice.--The prohibitions in subsections (a) through (c)
shall be published in a notice in the Federal Register by the Secretary
(in consultation with the heads of other affected agencies) and by such
agency heads in funding arrangements involving the provision of
children's services administered by such heads. Such prohibitions shall
be effective 90 days after such notice is published, or 270 days after
the date of enactment of the No Child Left Behind Act of 2001,
whichever occurs first.
``(e) Civil Penalties.--
``(1) In general.--Any failure to comply with a prohibition in
this section shall be considered to be a violation of this section
and any person subject to such prohibition who commits such
violation may be liable to the United States for a civil penalty in
an amount not to exceed $1,000 for each violation, or may be
subject to an administrative compliance order, or both, as
determined by the Secretary. Each day a violation continues shall
constitute a separate violation. In the case of any civil penalty
assessed under this section, the total amount shall not exceed 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. Before making such assessment or issuing
such order, or both, the Secretary shall give written notice of the
assessment or order to such person by certified mail with return
receipt and provide information in the notice of an opportunity to
request in writing, not later than 30 days after the date of
receipt of such notice, such hearing. The notice shall reasonably
describe the violation and be accompanied with the procedures for
such hearing and a simple form that may be used to request such
hearing if such person desires to use such form. If a hearing is
requested, the Secretary shall establish by such certified notice
the time and place for such hearing, which shall be located, to the
greatest extent possible, at a location convenient to such person.
The Secretary (or the Secretary's designee) and such person may
consult to arrange a suitable date and location where appropriate.
``(3) Circumstances affecting penalty or order.--In determining
the amount of the civil penalty or the nature of the administrative
compliance order, the Secretary shall take into account, as
appropriate--
``(A) the nature, circumstances, extent, and gravity of the
violation;
``(B) with respect to the violator, any good faith efforts
to comply, the importance of achieving early and permanent
compliance, the ability to pay or comply, the effect of the
penalty or order on the ability to continue operation, any
prior history of the same kind of violation, the degree of
culpability, and any demonstration of willingness to comply
with the prohibitions of this section in a timely manner; and
C) such other matters as justice may require.
``(4) Modification.--The Secretary may, as appropriate,
compromise, modify, or remit, with or without conditions, any civil
penalty or administrative compliance order. In the case of a civil
penalty, the amount, as finally determined by the Secretary or
agreed upon in compromise, may be deducted from any sums that the
United States or the agencies or instrumentalities of the United
States owe to the person against whom the penalty is assessed.
``(5) Petition for review.--Any person aggrieved by a penalty
assessed or an order issued, or both, by the Secretary under this
section may file a petition for judicial review of the order with
the United States Court of Appeals for the District of Columbia
Circuit or for any other circuit in which the person resides or
transacts business. Such person shall provide a copy of the
petition to the Secretary or the Secretary's designee. The petition
shall be filed within 30 days after the Secretary's assessment or
order, or both, are final and have been provided to such person by
certified mail. The Secretary shall promptly provide to the court a
certified copy of the transcript of any hearing held under this
section and a copy of the notice or order.
``(6) Failure to comply.--If a person fails to pay an
assessment of a civil penalty or comply with an order, after the
assessment or order, or both, are final under this section, or
after a court has entered a final judgment under paragraph (5) in
favor of the Secretary, the Attorney General, at the request of the
Secretary, shall recover the amount of the civil penalty (plus
interest at prevailing rates from the day the assessment or order,
or both, are final) or enforce the order in an action brought in
the appropriate district court of the United States. In such
action, the validity and appropriateness of the penalty or order or
the amount of the penalty shall not be subject to review.
``SEC. 4304. PREEMPTION.
``Nothing in this part is intended to preempt any provision of law
of a State or political subdivision of a State that is more restrictive
than a provision of this part.''.
TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.
Title V (20 U.S.C. 7201 et seq.) is amended to read as follows:
``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
``PART A--INNOVATIVE PROGRAMS
``SEC. 5101. PURPOSES, STATE AND LOCAL RESPONSIBILITY.
``(a) Purposes.--The purposes of this part are the following:
``(1) To support local education reform efforts that are
consistent with and support statewide education reform efforts.
``(2) To provide funding to enable State educational agencies
and local educational agencies to implement promising educational
reform programs and school improvement programs based on
scientifically based research.
``(3) To provide a continuing source of innovation and
educational improvement, including support programs to provide
library services and instructional and media materials.
``(4) To meet the educational needs of all students, including
at-risk youth.
``(5) To develop and implement education programs to improve
school, student, and teacher performance, including professional
development activities and class size reduction programs.
``(b) State and Local Responsibility.--The State educational agency
shall bear the basic responsibility for the administration of funds
made available under this part, but it is the intent of Congress that
the responsibility be carried out with a minimum of paperwork and that
the responsibility for the design and implementation of programs
assisted under this part be mainly that of local educational agencies,
school superintendents and principals, and classroom teachers and
supporting personnel, because local educational agencies and
individuals have the most direct contact with students and are most
likely to be able to design programs to meet the educational needs of
students in their own school districts.
``Subpart 1--State and Local Programs
``SEC. 5111. ALLOTMENT TO STATES.
``(a) In General.--From the sums appropriated to carry out this
part for each fiscal year and not reserved under subsection (b), the
Secretary shall allot, and make available in accordance with this part,
to each State educational agency an amount that bears the same ratio to
such sums as the school-age population of the State bears to the
school-age population of all States, except that no State shall receive
less than an amount equal to 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. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.
``(a) Distribution Rule.--
``(1) Allocation of base amounts.--From the amount made
available to a State educational agency under this part for a
fiscal year, the State educational agency shall distribute, to
local educational agencies within the State, an amount that is not
less than 85 percent of the amount made available to the State
educational agency under this part for fiscal year 2002, according
to the relative enrollments in public and in private nonprofit
schools within the jurisdictions of such local educational
agencies, adjusted, in accordance with criteria approved by the
Secretary, to provide higher per-pupil allocations to local
educational agencies that have the greatest numbers or percentages
of children whose education imposes a higher-than-average cost per
child, such as--
``(A) children living in areas with high concentrations of
economically disadvantaged families;
``(B) children from economically disadvantaged families;
and
``(C) children living in sparsely populated areas.
``(2) Allocation of increased amounts.--From the amount made
available to a State educational agency under this part for a
fiscal year that exceeds the amount made available to the agency
under this part for fiscal year 2002, the State educational agency
shall distribute 100 percent (or, in the case of a State
educational agency receiving a minimum allotment under section
5111(a), not less than 50 percent, notwithstanding subsection (b))
to local educational agencies within the State, on the same basis
as the State educational agency distributes amounts under paragraph
(1).
``(b) Limitations and Requirements.--Not more than 15 percent of
funds made available under section 5111 for State programs under this
part for any fiscal year may be used for State administration under
section 5121.
``(c) Calculation of Enrollments.--
``(1) In general.--The calculation of relative enrollments
under subsection (a)(1) shall be on the basis of the total of--
``(A) the number of children enrolled in public schools;
and
``(B) the number of children enrolled in private nonprofit
schools that participated in programs assisted under this part,
for the fiscal year preceding the fiscal year for which the
determination is made.
``(2) Rule of construction.--Nothing in this subsection shall
diminish the responsibility of each local educational agency to
contact, on an annual basis, appropriate officials from private
nonprofit schools within the areas served by such agencies in order
to determine whether such schools desire that their children
participate in programs assisted under this part.
``(3) Adjustments.--
``(A) State criteria.--Relative enrollments calculated
under subsection (a)(1) shall be adjusted, in accordance with
criteria approved by the Secretary under subparagraph (B), to
provide higher per-pupil allocations only to local educational
agencies that serve the greatest numbers or percentages of--
``(i) children living in areas with high concentrations
of economically disadvantaged families;
``(ii) children from economically disadvantaged
families; or
``(iii) children living in sparsely populated areas.
``(B) Review of criteria.--The Secretary shall review
criteria submitted by a State educational agency for adjusting
allocations under paragraph (1) and shall approve such criteria
only if the Secretary determines that such criteria are
reasonably calculated to produce an adjusted allocation that
reflects the relative needs of the State's local educational
agencies based on the factors set forth in subparagraph (A).
``(d) Payment of Allocations.--
``(1) Distribution.--From the funds paid to a State educational
agency under this subpart for a fiscal year, the State educational
agency shall distribute to each eligible local educational agency
that has submitted an application as required by section 5133 the
amount of such local educational agency's allocation, as determined
under subsection (a).
``(2) Additional funds.--
``(A) Use.--Additional funds resulting from higher per-
pupil allocations provided to a local educational agency on the
basis of adjusted enrollments of children described in
subsection (a)(1) may, in the discretion of the local
educational agency, be allocated for expenditures to provide
services for children enrolled in public schools and private
nonprofit schools in direct proportion to the number of
children described in subsection (a)(1) and enrolled in such
schools within the area served by the local educational agency.
``(B) Allocation.--In any fiscal year, any local
educational agency that elects to allocate such additional
funds in the manner described in subparagraph (A) shall
allocate all additional funds to schools within the area served
by the local educational agency in such manner.
``(C) Rule of construction.--Subparagraphs (A) and (B) may
not be construed to require any school to limit the use of the
additional funds described in subparagraph (A) to the provision
of services to specific students or categories of students.
``Subpart 2--State Programs
``SEC. 5121. STATE USES OF FUNDS.
``A State educational agency may use funds made available for State
use under section 5112(b) only for one or more of the following:
``(1) State administration of programs under this part,
including--
``(A) allocating funds to local educational agencies;
``(B) planning, supervising, and processing State
educational agency funds; and
``(C) monitoring and evaluating programs under this part.
``(2) Support for the planning, design, and initial
implementation of charter schools as described in part B.
``(3) Statewide education reform, school improvement programs
and technical assistance and direct grants to local educational
agencies, which assist such agencies under section 5131.
``(4) Support for the design and implementation of high-quality
yearly student assessments.
``(5) Support for implementation of challenging State and local
academic achievement standards.
``(6) Support for arrangements that provide for independent
analysis to measure and report on school district achievement.
``(7) Support for the program described in section 321 of the
Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2001 (as enacted into law by
section 1(a)(1) of Public Law 106-554).
``(8) Support for programs to assist in the implementation of
the policy described in section 9507 which may include payment of
reasonable transportation costs and tuition costs for such
students.
``SEC. 5122. STATE APPLICATIONS.
``(a) Application Requirements.--Any State that desires to receive
assistance under this part shall submit to the Secretary an application
that includes each of the following:
``(1) Designation of the State educational agency as the State
agency responsible for administration and supervision of programs
assisted under this part.
``(2) Provision for an annual statewide summary of how
assistance under this part is contributing toward improving student
academic achievement or improving the quality of education for
students.
``(3) Information setting forth the allocation of funds
required to implement section 5142.
``(4) A provision that the State educational agency will keep
such records, and provide such information to the Secretary, as may
be required for fiscal audit and program evaluation (consistent
with the responsibilities of the Secretary under this section).
``(5) An assurance that, apart from providing technical and
advisory assistance and monitoring compliance with this part, the
State educational agency has not exercised, and will not exercise,
any influence in the decisionmaking processes of local educational
agencies as to the expenditure made pursuant to an application
submitted under section 5133.
``(6) An assurance that there is compliance with the specific
requirements of this part.
``(7) Provision for timely public notice and public
dissemination of the information provided under paragraph (3).
``(b) Statewide Summary.--The statewide summary referred to in
subsection (a)(2) shall be submitted annually to the Secretary and
shall be derived from the evaluation information submitted by local
educational agencies to the State educational agency under section
5133(b)(8). The State educational agency shall determine the format and
content of such summary and may include in the summary statistical
measures, such as the number of students served by each type of
innovative assistance program described in section 5131 and the number
of teachers trained.
``(c) Period of Application.--An application submitted by the State
educational agency under subsection (a) shall be for a period not to
exceed 3 years. The agency may amend the application annually, as may
be necessary to reflect changes, without filing a new application.
``(d) Audit Rule.--A local educational agency that receives less
than an average of $10,000 under this part for any 3 consecutive fiscal
years shall not be audited more frequently than once every 5 years.
``Subpart 3--Local Innovative Education Programs
``SEC. 5131. LOCAL USES OF FUNDS.
``(a) Innovative Assistance Programs.--Funds made available to
local educational agencies under section 5112 shall be used for
innovative assistance programs, which may include any of the following:
``(1) Programs to recruit, train, and hire highly qualified
teachers to reduce class size, especially in the early grades, and
professional development activities carried out in accordance with
title II, that give teachers, principals, and administrators the
knowledge and skills to provide students with the opportunity to
meet challenging State or local academic content standards and
student academic achievement standards.
``(2) Technology activities related to the implementation of
school-based reform efforts, including professional development to
assist teachers and other school personnel (including school
library media personnel) regarding how to use technology
effectively in the classrooms and the school library media centers
involved.
``(3) Programs for the development or acquisition and use of
instructional and educational materials, including library services
and materials (including media materials), academic assessments,
reference materials, computer software and hardware for
instructional use, and other curricular materials that are tied to
high academic standards, that will be used to improve student
academic achievement, and that are part of an overall education
reform program.
``(4) Promising education reform projects, including magnet
schools.
``(5) Programs to improve the academic achievement of
educationally disadvantaged elementary school and secondary school
students, including activities to prevent students from dropping
out of school.
``(6) Programs to improve the literacy skills of adults,
especially the parents of children served by the local educational
agency, including adult education and family literacy programs.
``(7) Programs to provide for the educational needs of gifted
and talented children.
``(8) The planning, design, and initial implementation of
charter schools as described in part B.
``(9) School improvement programs or activities under sections
1116 and 1117.
``(10) Community service programs that use qualified school
personnel to train and mobilize young people to measurably
strengthen their communities through nonviolence, responsibility,
compassion, respect, and moral courage.
``(11) Activities to promote consumer, economic, and personal
finance education, such as disseminating information on and
encouraging use of the best practices for teaching the basic
principles of economics and promoting the concept of achieving
financial literacy through the teaching of personal financial
management skills (including the basic principles involved with
earning, spending, saving, and investing).
``(12) Activities to promote, implement, or expand public
school choice.
``(13) Programs to hire and support school nurses.
``(14) Expansion and improvement of school-based mental health
services, including early identification of drug use and violence,
assessment, and direct individual or group counseling services
provided to students, parents, and school personnel by qualified
school-based mental health services personnel.
``(15) Alternative educational programs for those students who
have been expelled or suspended from their regular educational
setting, including programs to assist students to reenter the
regular educational setting upon return from treatment or
alternative educational programs.
``(16) Programs to establish or enhance prekindergarten
programs for children.
``(17) Academic intervention programs that are operated jointly
with community-based organizations and that support academic
enrichment, and counseling programs conducted during the school day
(including during extended school day or extended school year
programs), for students most at risk of not meeting challenging
State academic achievement standards or not completing secondary
school.
``(18) Programs for cardiopulmonary resuscitation (CPR)
training in schools.
``(19) Programs to establish smaller learning communities.
``(20) Activities that encourage and expand improvements
throughout the area served by the local educational agency that are
designed to advance student academic achievement.
``(21) Initiatives to generate, maintain, and strengthen
parental and community involvement.
``(22) Programs and activities that expand learning
opportunities through best-practice models designed to improve
classroom learning and teaching.
``(23) Programs to provide same-gender schools and classrooms
(consistent with applicable law).
``(24) Service learning activities.
``(25) School safety programs, including programs to implement
the policy described in section 9507 and which may include payment
of reasonable transportation costs and tuition costs for such
students.
``(26) Programs that employ research-based cognitive and
perceptual development approaches and rely on a diagnostic-
prescriptive model to improve students' learning of academic
content at the preschool, elementary, and secondary levels.
``(27) Supplemental educational services, as defined in section
1116(e).
``(b) Requirements.--The innovative assistance programs described
in subsection (a) shall be--
``(1) tied to promoting challenging academic achievement
standards;
``(2) used to improve student academic achievement; and
``(3) part of an overall education reform strategy.
``(c) Guidelines.--Not later than 120 days after the date of
enactment of the No Child Left Behind Act of 2001, the Secretary shall
issue guidelines for local educational agencies seeking funding for
programs described in subsection (a)(23).
``SEC. 5132. ADMINISTRATIVE AUTHORITY.
``In order to conduct the programs authorized by this part, each
State educational agency or local educational agency may use funds made
available under this part to make grants to, and to enter into
contracts with, local educational agencies, institutions of higher
education, libraries, museums, and other public and private nonprofit
agencies, organizations, and institutions.
``SEC. 5133. LOCAL APPLICATIONS.
``(a) Submission of Application.--A local educational agency may
receive an allocation of funds under this part for any year for which
the agency submits an application under this section that the State
educational agency certifies under subsection (b).
``(b) Certification and Contents of Application.--The State
educational agency shall certify each application submitted under
subsection (a) that includes each of the following:
``(1) A description of locally identified needs relative to the
purposes of this part and to the innovative assistance programs
described in section 5131.
``(2) A statement that sets forth the planned allocation of
funds, based on the needs identified in subparagraph (A), among
innovative assistance programs described in section 5131, a
description of the programs that the local educational agency
intends to support, and a description of the reasons for the
selection of such programs.
``(3) Information setting forth the allocation of such funds
required to implement section 5142.
``(4) A description of how assistance under this part will
contribute to improving student academic achievement or improving
the quality of education for students.
``(5) An assurance that the local educational agency will
comply with this part, including the provisions of section 5142
concerning the participation of children enrolled in private
nonprofit schools.
``(6) An assurance that the local educational agency will keep
such records, and provide such information to the State educational
agency, as may be reasonably required for fiscal audit and program
evaluation (consistent with the responsibilities of the State
educational agency under this part).
``(7) Provision, in the allocation of funds for the assistance
authorized by this part and in the planning, design, and
implementation of such innovative assistance programs, for
systematic consultation with parents of children attending
elementary schools and secondary schools in the area served by the
local educational agency, with teachers and administrative
personnel in such schools, and with such other groups involved in
the implementation of this part (such as librarians, school
counselors, and other pupil services personnel) as may be
considered appropriate by the local educational agency.
``(8) An assurance that--
``(A) programs carried out under this part will be
evaluated annually;
``(B) the evaluation will be used to make decisions about
appropriate changes in programs for the subsequent year;
``(C) the evaluation will describe how assistance under
this part affected student academic achievement and will
include, at a minimum, information and data on the use of
funds, the types of services furnished, and the students served
under this part; and
``(D) the evaluation will be submitted to the State
educational agency at the time and in the manner requested by
the State educational agency.
``(9) If the local educational agency seeks funds under section
5131(a)(23), a description of how the agency will comply with the
guidelines issued by the Secretary regarding same-gender schools
and classrooms under section 5131(c).
``(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. MAINTENANCE OF EFFORT.
``(a) In general.--Except as provided in subsection (b), a State
educational agency is entitled to receive its full allotment of funds
under this part for any fiscal year only if the Secretary determines
that either the combined fiscal effort per student or the aggregate
expenditures within the State, with respect to the provision of free
public education for the fiscal year preceding the fiscal year for
which the determination is made, was not less than 90 percent of such
combined fiscal effort or aggregate expenditures for the second fiscal
year preceding the fiscal year for which the determination is made.
``(b) Reduction of Funds.--The Secretary shall reduce the amount of
the allotment of funds under this part in any fiscal year in the exact
proportion by which the State educational agency fails to meet the
requirements of subsection (a) by falling below 90 percent of the
fiscal effort per student or aggregate expenditures (using the measure
most favorable to the State educational agency), and no such lesser
amount shall be used for computing the effort or expenditures required
under paragraph (1) for subsequent years.
``(c) Waiver.--The Secretary may waive, for 1 fiscal year only, the
requirements of this section, if the Secretary determines that such a
waiver would be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the State educational
agency.
``SEC. 5142. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.
``(a) Participation on Equitable Basis.--
``(1) In general.--To the extent consistent with the number of
children in the school district of a local educational agency that
is eligible to receive funds under this part, or that serves the
area in which a program assisted under this part is located, who
are enrolled in private nonprofit elementary schools and secondary
schools, or, with respect to instructional or personnel training
programs funded by the State educational agency from funds made
available for State educational agency use, the local educational
agency, after consultation with appropriate private school
officials--
``(A) shall provide, as may be necessary, for the benefit
of such children in such schools--
``(i) secular, neutral, and nonideological services,
materials, and equipment, including the participation of
the teachers of such children (and other educational
personnel serving such children) in training programs; and
``(ii) the repair, minor remodeling, or construction of
public facilities (consistent with subsection (c)); or
``(B) if such services, materials, and equipment are not
feasible or necessary in one or more such private schools, as
determined by the local educational agency after consultation
with the appropriate private school officials, shall provide
such other arrangements as will assure equitable participation
of such children in the purposes and benefits of this part.
``(2) Other provisions for services.--If no program is carried
out under paragraph (1) in the school district of a local
educational agency, the State educational agency shall make
arrangements, such as through contracts with nonprofit agencies or
organizations, under which children in private schools in the
district are provided with services and materials to the same
extent as would have occurred if the local educational agency had
received funds under this part.
``(3) Application of requirements.--The requirements of this
section relating to the participation of children, teachers, and
other personnel serving such children shall apply to programs
carried out under this part by a State educational agency or local
educational agency, whether directly or through grants to, or
contracts with, other public or private agencies, institutions, or
organizations.
``(b) Equal Expenditures.--
``(1) In general.--Expenditures for programs under subsection
(a) shall be equal (consistent with the number of children to be
served) to expenditures for programs under this part for children
enrolled in the public schools of the local educational agency.
``(2) Concentrated programs.--Taking into account the needs of
the individual children and other factors that relate to the
expenditures referred to in paragraph (1), and when funds available
to a local educational agency under this part are used to
concentrate programs on a particular group, attendance area, or
grade or age level, children enrolled in private schools who are
included within the group, attendance area, or grade or age level
selected for such concentration shall, after consultation with the
appropriate private school officials, be assured equitable
participation in the purposes and benefits of such programs.
``(c) Administrative Requirements.--
``(1) Funds and property.--The control of funds provided under
this part, and title to materials, equipment, and property
repaired, remodeled, or constructed with such funds, shall be in a
public agency for the uses and purposes provided in this part, and
a public agency shall administer such funds and property.
``(2) Provision of services.--Services provided under this part
shall be provided by employees of a public agency or through
contract by such a public agency with a person, association,
agency, or corporation that, in the provision of such services, is
independent of the private school and of any religious
organizations, and such employment or contract shall be under the
control and supervision of such a public agency. The funds provided
under this part shall not be commingled with State or local funds.
``(d) Waiver.--
``(1) State prohibition.--If a State educational agency or
local educational agency is prohibited, by reason of any provision
of law, from providing for the participation in programs of
children enrolled in private elementary schools and secondary
schools as required by subsections (a) through (c), the Secretary
shall waive such requirements for the agency involved and shall
arrange for the provision of services to such children through
arrangements that shall be subject to the requirements of this
section.
``(2) Failure to comply.--If the Secretary determines that a
State educational agency or a local educational agency has
substantially failed, or is unwilling, to provide for the
participation on an equitable basis of children enrolled in private
elementary schools and secondary schools as required by subsections
(a) through (c), the Secretary may waive such requirements and
shall arrange for the provision of services to such children
through arrangements that shall be subject to the requirements of
this section.
``(e) Withholding of Allotment or Allocation.--Pending final
resolution of any investigation or complaint that could result in a
waiver under subsection (d)(1) or (d)(2), the Secretary may withhold
from the allotment or allocation of the affected State educational
agency or local educational agency the amount estimated by the
Secretary to be necessary to pay the cost of services to be provided by
the Secretary under such subsection.
``(f) Duration of Determination.--Any determination by the
Secretary under this section shall continue in effect until the
Secretary determines that there will no longer be any failure or
inability on the part of the State educational agency or local
educational agency to meet the requirements of subsections (a) through
(c).
``(g) Payment From State Allotment.--When the Secretary arranges
for services under subsection (d), the Secretary shall, after
consultation with the appropriate public school and private school
officials, pay the cost of such services, including the administrative
costs of arranging for those services, from the appropriate allotment
of the State educational agency under this part.
``(h) Review of Determination.--
``(1) Written objections.--The Secretary shall not take any
final action under this section until the State educational agency
and the local educational agency affected by such action have had
an opportunity, for not less than 45 days after receiving written
notice thereof, to submit written objections and to appear before
the Secretary or the Secretary's designee to show cause why that
action should not be taken.
``(2) Court action.--If a State educational agency or local
educational agency is dissatisfied with the Secretary's final
action after a proceeding under paragraph (1), such agency may, not
later than 60 days after notice of such action, file with the
United States court of appeals for the circuit in which such State
is located a petition for review of that action. A copy of the
petition shall be transmitted by the clerk of the court to the
Secretary. The Secretary thereupon shall file in the court the
record of the proceedings on which the Secretary based the action,
as provided in section 2112 of title 28, United States Code.
``(3) Remand to secretary.--The findings of fact by the
Secretary with respect to a proceeding under paragraph (1), if
supported by substantial evidence, shall be conclusive. The court,
for good cause shown, may remand the case to the Secretary to take
further evidence and the Secretary may make new or modified
findings of fact and may modify the Secretary's previous action,
and shall file in the court the record of the further proceedings.
Such new or modified findings of fact shall likewise be conclusive,
if supported by substantial evidence.
``(4) Court review.--Upon the filing of a petition under
paragraph (2), the court shall have jurisdiction to affirm the
action of the Secretary or to set such action aside, in whole or in
part. The judgment of the court shall be subject to review by the
Supreme Court upon certiorari or certification, as provided in
section 1254 of title 28, United States Code.
``(i) Prior Determination.--Any bypass determination by the
Secretary under title VI (as such title was in effect on the day
preceding the date of enactment of the No Child Left Behind Act of
2001) shall, to the extent consistent with the purposes of this part,
apply to programs under this part.
``SEC. 5143. FEDERAL ADMINISTRATION.
``(a) Technical Assistance.--The Secretary, upon request, shall
provide technical assistance to State educational agencies and local
educational agencies under this part.
``(b) Rulemaking.--The Secretary shall issue regulations under this
part only to the extent that such regulations are necessary to ensure
that there is compliance with the specific requirements and assurances
required by this part.
``(c) Availability of Appropriations.--Notwithstanding any other
provision of law, unless expressly in limitation of this subsection,
funds appropriated in any fiscal year to carry out programs under this
part shall become available for obligation on July 1 of such fiscal
year and shall remain available for obligation until the end of the
subsequent fiscal year.
``SEC. 5144. SUPPLEMENT, NOT SUPPLANT.
``Funds made available under this part shall be used to supplement,
and not supplant, any other Federal, State, or local education funds.
``SEC. 5145. DEFINITIONS.
``In this part:
``(1) Local educational agency.--The term `local educational
agency' means a local educational agency or a consortium of such
agencies.
``(2) Public school.--The term `public school' means a public
elementary school or a public secondary school.
``(3) School-age population.--The term `school-age population'
means the population aged 5 through 17.
``(4) State.--The term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. 5146. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part--
``(1) $450,000,000 for fiscal year 2002;
``(2) $475,000,000 for fiscal year 2003;
``(3) $500,000,000 for fiscal year 2004;
``(4) $525,000,000 for fiscal year 2005;
``(5) $550,000,000 for fiscal year 2006; and
``(6) $600,000,000 for fiscal year 2007.
``PART B--PUBLIC CHARTER SCHOOLS
``Subpart 1--Charter School Programs
``SEC. 5201. PURPOSE.
``It is the purpose of this subpart to increase national
understanding of the charter schools model by--
``(1) providing financial assistance for the planning, program
design, and initial implementation of charter schools;
``(2) evaluating the effects of such schools, including the
effects on students, student academic achievement, staff, and
parents;
``(3) expanding the number of high-quality charter schools
available to students across the Nation; and
``(4) encouraging the States to provide support to charter
schools for facilities financing in an amount more nearly
commensurate to the amount the States have typically provided for
traditional public schools.
``SEC. 5202. PROGRAM AUTHORIZED.
``(a) In General.--The Secretary may award grants to State
educational agencies having applications approved pursuant to section
5203 to enable such agencies to conduct a charter school grant program
in accordance with this subpart.
``(b) Special Rule.--If a State educational agency elects not to
participate in the program authorized by this subpart or does not have
an application approved under section 5203, the Secretary may award a
grant to an eligible applicant that serves such State and has an
application approved pursuant to section 5203(c).
``(c) Program Periods.--
``(1) Grants to states.--Grants awarded to State educational
agencies under this subpart shall be for a period of not more than
3 years.
``(2) Grants to eligible applicants.--Grants awarded by the
Secretary to eligible applicants or subgrants awarded by State
educational agencies to eligible applicants under this subpart
shall be for a period of not more than 3 years, of which the
eligible applicant may use--
``(A) not more than 18 months for planning and program
design;
``(B) not more than 2 years for the initial implementation
of a charter school; and
``(C) not more than 2 years to carry out dissemination
activities described in section 5204(f)(6)(B).
``(d) Limitation.--A charter school may not receive--
``(1) more than 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.
``(C) The State ensures that each charter school has a high
degree of autonomy over the charter school's budgets and
expenditures.
``(f) Amount Criteria.--In determining the amount of a grant to be
awarded under this subpart to a State educational agency, the Secretary
shall take into consideration the number of charter schools that are
operating, or are approved to open, in the State.
``SEC. 5203. APPLICATIONS.
``(a) Applications From State Agencies.--Each State educational
agency desiring a grant from the Secretary under this subpart shall
submit to the Secretary an application at such time, in such manner,
and containing or accompanied by such information as the Secretary may
require.
``(b) Contents of a State Educational Agency Application.--Each
application submitted pursuant to subsection (a) shall--
``(1) describe the objectives of the State educational agency's
charter school grant program and a description of how such
objectives will be fulfilled, including steps taken by the State
educational agency to inform teachers, parents, and communities of
the State educational agency's charter school grant program; and
``(2) describe how the State educational agency--
``(A) will inform each charter school in the State
regarding--
``(i) Federal funds that the charter school is eligible
to receive; and
``(ii) Federal programs in which the charter school may
participate;
``(B) will ensure that each charter school in the State
receives the charter school's commensurate share of Federal
education funds that are allocated by formula each year,
including during the first year of operation of the charter
school; and
``(C) will disseminate best or promising practices of
charter schools to each local educational agency in the State;
and
``(3) contain assurances that the State educational agency will
require each eligible applicant desiring to receive a subgrant to
submit an application to the State educational agency containing--
``(A) a description of the educational program to be
implemented by the proposed charter school, including--
``(i) how the program will enable all students to meet
challenging State student academic achievement standards;
``(ii) the grade levels or ages of children to be
served; and
``(iii) the curriculum and instructional practices to
be used;
``(B) a description of how the charter school will be
managed;
``(C) a description of--
``(i) the objectives of the charter school; and
``(ii) the methods by which the charter school will
determine its progress toward achieving those objectives;
``(D) a description of the administrative relationship
between the charter school and the authorized public chartering
agency;
``(E) a description of how parents and other members of the
community will be involved in the planning, program design, and
implementation of the charter school;
``(F) a description of how the authorized public chartering
agency will provide for continued operation of the school once
the Federal grant has expired, if such agency determines that
the school has met the objectives described in subparagraph
(C)(i);
``(G) a request and justification for waivers of any
Federal statutory or regulatory provisions that the eligible
applicant believes are necessary for the successful operation
of the charter school, and a description of any State or local
rules, generally applicable to public schools, that will be
waived for, or otherwise not apply to, the school;
``(H) a description of how the subgrant funds or grant
funds, as appropriate, will be used, including a description of
how such funds will be used in conjunction with other Federal
programs administered by the Secretary;
``(I) a description of how students in the community will
be--
``(i) informed about the charter school; and
``(ii) given an equal opportunity to attend the charter
school;
``(J) an assurance that the eligible applicant will
annually provide the Secretary and the State educational agency
such information as may be required to determine if the charter
school is making satisfactory progress toward achieving the
objectives described in subparagraph (C)(i);
``(K) an assurance that the eligible applicant will
cooperate with the Secretary and the State educational agency
in evaluating the program assisted under this subpart;
``(L) a description of how a charter school that is
considered a local educational agency under State law, or a
local educational agency in which a charter school is located,
will comply with sections 613(a)(5) and 613(e)(1)(B) of the
Individuals with Disabilities Education Act;
``(M) if the eligible applicant desires to use subgrant
funds for dissemination activities under section 5202(c)(2)(C),
a description of those activities and how those activities will
involve charter schools and other public schools, local
educational agencies, developers, and potential developers; and
``(N) such other information and assurances as the
Secretary and the State educational agency may require.
``(c) Eligible Applicant Application.--Each eligible applicant
desiring a grant pursuant to section 5202(b) shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may reasonably
require.
``(d) Contents of Eligible Applicant Application.--Each application
submitted pursuant to subsection (c) shall contain--
``(1) the information and assurances described in subparagraphs
(A) through (N) of subsection (b)(3), except that for purposes of
this subsection subparagraphs (J), (K), and (N) of such subsection
shall be applied by striking `and the State educational agency'
each place such term appears;
``(2) assurances that the State educational agency--
``(A) will grant, or will obtain, waivers of State
statutory or regulatory requirements; and
``(B) will assist each subgrantee in the State in receiving
a waiver under section 5204(e); and
``(3) assurances that the eligible applicant has provided its
authorized public chartering authority timely notice, and a copy,
of the application, except that the State educational agency (or
the Secretary, in the case of an application submitted to the
Secretary) may waive the requirement of this paragraph in the case
of an application for a precharter planning grant or subgrant if
the authorized public chartering authority to which a charter
school proposal will be submitted has not been determined at the
time the grant or subgrant application is submitted.
``SEC. 5204. ADMINISTRATION.
``(a) Selection Criteria for State Educational Agencies.--The
Secretary shall award grants to State educational agencies under this
subpart on the basis of the quality of the applications submitted under
section 5203(b), after taking into consideration such factors as--
``(1) the contribution that the charter schools grant program
will make to assisting educationally disadvantaged and other
students in meeting State academic content standards and State
student academic achievement standards;
``(2) the degree of flexibility afforded by the State
educational agency to charter schools under the State's charter
schools law;
``(3) the ambitiousness of the objectives for the State charter
school grant program;
``(4) the quality of the strategy for assessing achievement of
those objectives;
``(5) the likelihood that the charter school grant program will
meet those objectives and improve educational results for students;
``(6) the number of high-quality charter schools created under
this subpart in the State; and
``(7) in the case of State educational agencies that propose to
use grant funds to support dissemination activities under
subsection (f)(6)(B), the quality of those activities and the
likelihood that those activities will improve student academic
achievement.
``(b) Selection Criteria for Eligible Applicants.--The Secretary
shall award grants to eligible applicants under this subpart on the
basis of the quality of the applications submitted under section
5203(c), after taking into consideration such factors as--
``(1) the quality of the proposed curriculum and instructional
practices;
``(2) the degree of flexibility afforded by the State
educational agency and, if applicable, the local educational agency
to the charter school;
``(3) the extent of community support for the application;
``(4) the ambitiousness of the objectives for the charter
school;
``(5) the quality of the strategy for assessing achievement of
those objectives;
``(6) the likelihood that the charter school will meet those
objectives and improve educational results for students; and
``(7) in the case of an eligible applicant that proposes to use
grant funds to support dissemination activities under subsection
(f)(6)(B), the quality of those activities and the likelihood that
those activities will improve student achievement.
``(c) Peer Review.--The Secretary, and each State educational
agency receiving a grant under this subpart, shall use a peer review
process to review applications for assistance under this subpart.
``(d) Diversity of Projects.--The Secretary and each State
educational agency receiving a grant under this subpart, shall award
grants and subgrants under this subpart in a manner that, to the extent
possible, ensures that such grants and subgrants--
``(1) are distributed throughout different areas of the Nation
and each State, including urban and rural areas; and
``(2) will assist charter schools representing a variety of
educational approaches, such as approaches designed to reduce
school size.
``(e) Waivers.--The Secretary may waive any statutory or regulatory
requirement over which the Secretary exercises administrative authority
except any such requirement relating to the elements of a charter
school described in section 5210(1), if--
``(1) the waiver is requested in an approved application under
this subpart; and
``(2) the Secretary determines that granting such a waiver will
promote the purpose of this subpart.
``(f) Use of Funds.--
``(1) State educational agencies.--Each State educational
agency receiving a grant under this subpart shall use such grant
funds to award subgrants to 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
``(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, including
charter schools, that are independent of the assisting
charter school and the assisting charter school's
developers, and that agree to be held to at least as high a
level of accountability as the assisting charter school;
``(ii) developing partnerships with other public
schools, including charter schools, designed to improve
student academic achievement in each of the schools
participating in the partnership;
``(iii) developing curriculum materials, assessments,
and other materials that promote increased student
achievement and are based on successful practices within
the assisting charter school; and
``(iv) conducting evaluations and developing materials
that document the successful practices of the assisting
charter school and that are designed to improve student
performance in other schools.
``(g) Tribally Controlled Schools.--Each State that receives a
grant under this subpart and designates a tribally controlled school as
a charter school shall not consider payments to a school under the
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in
determining--
``(1) the eligibility of the school to receive any other
Federal, State, or local aid; or
``(2) the amount of such aid.
``SEC. 5205. NATIONAL ACTIVITIES.
``(a) In General.--The Secretary shall reserve for each fiscal year
the greater of 5 percent or $5,000,000 of the amount appropriated to
carry out this subpart, except that in no fiscal year shall the total
amount so reserved exceed $8,000,000, to carry out the following
activities:
``(1) To provide charter schools, either directly or through
State educational agencies, with--
``(A) information regarding--
``(i) Federal funds that charter schools are eligible
to receive; and
``(ii) other Federal programs in which charter schools
may participate; and
``(B) assistance in applying for Federal education funds
that are allocated by formula, including assistance with filing
deadlines and submission of applications.
``(2) To provide for other evaluations or studies that include
the evaluation of the impact of charter schools on student academic
achievement, including information regarding--
``(A) students attending charter schools reported on the
basis of race, age, disability, gender, limited English
proficiency, and previous enrollment in public school; and
``(B) the professional qualifications of teachers within a
charter school and the turnover of the teaching force.
``(3) To provide--
``(A) information to applicants for assistance under this
subpart;
``(B) assistance to applicants for assistance under this
subpart with the preparation of applications under section
5203;
``(C) assistance in the planning and startup of charter
schools;
``(D) training and technical assistance to existing charter
schools; and
``(E) for the dissemination to other public schools of best
or promising practices in charter schools.
``(4) To provide (including through the use of 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 the grant
to establish or enhance, and administer, a per-pupil facilities
aid program for charter schools in the State.
``(B) Evaluations; technical assistance; dissemination.--
From the amount made available to a State through a grant under
this subsection for a fiscal year, the State may reserve not
more than 5 percent to carry out evaluations, to provide
technical assistance, and to disseminate information.
``(C) Supplement, not supplant.--Funds made available under
this subsection shall be used to supplement, and not supplant,
State and local public funds expended to provide per pupil
facilities aid programs, operations financing programs, or
other programs, for charter schools.
``(4) Requirements.--
``(A) Voluntary participation.--No State may be required to
participate in a program carried out under this subsection.
``(B) State law.--To be eligible to receive a grant under
this subsection, a State shall establish or enhance, and
administer, a per-pupil facilities aid program for charter
schools in the State, that--
``(i) is specified in State law; and
``(ii) provides annual financing, on a per-pupil basis,
for charter school facilities.
``(5) Applications.--To be eligible to receive a grant under
this subsection, a State shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(6) Priorities.--In making grants under this subsection, the
Secretary shall give priority to States that meet the criteria
described in paragraph (2), and subparagraphs (A), (B), and (C) of
paragraph (3), of section 5202(e).
``(c) Rule of Construction.--Nothing in this section shall be
construed to require charter schools to collect any data described in
subsection (a).
``SEC. 5206. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND FOR
SUCCESSIVE ENROLLMENT EXPANSIONS.
``(a) In General.--For purposes of the allocation to schools by the
States or their agencies of funds under part A of title I, and any
other Federal funds which the Secretary allocates to States on a
formula basis, the Secretary and each State educational agency shall
take such measures as are necessary to ensure that every charter school
receives the Federal funding for which the charter school is eligible
not later than 5 months after the charter school first opens,
notwithstanding the fact that the identity and characteristics of the
students enrolling in that charter school are not fully and completely
determined until that charter school actually opens. The measures
similarly shall ensure that every charter school expanding its
enrollment in any subsequent year of operation receives the Federal
funding for which the charter school is eligible not later than 5
months after such expansion.
``(b) Adjustment and Late Openings.--
``(1) In general.--The measures described in subsection (a)
shall include provision for appropriate adjustments, through
recovery of funds or reduction of payments for the succeeding year,
in cases where payments made to a charter school on the basis of
estimated or projected enrollment data exceed the amounts that the
school is eligible to receive on the basis of actual or final
enrollment data.
``(2) Rule.--For charter schools that first open after November
1 of any academic year, the State, in accordance with guidance
provided by the Secretary and applicable Federal statutes and
regulations, shall ensure that such charter schools that are
eligible for the funds described in subsection (a) for such
academic year have a full and fair opportunity to receive those
funds during the charter schools' first year of operation.
``SEC. 5207. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.
``To the extent practicable, the Secretary shall ensure that
administrators, teachers, and other individuals directly involved in
the operation of charter schools are consulted in the development of
any rules or regulations required to implement this subpart, as well as
in the development of any rules or regulations relevant to charter
schools that are required to implement part A of title I, the
Individuals with Disabilities Education Act, or any other program
administered by the Secretary that provides education funds to charter
schools or regulates the activities of charter schools.
``SEC. 5208. RECORDS TRANSFER.
``State educational agencies and local educational agencies, to the
extent practicable, shall ensure that a student's records and, if
applicable, a student's individualized education program as defined in
section 602(11) of the Individuals with Disabilities Education Act, are
transferred to a charter school upon the transfer of the student to the
charter school, and to another public school upon the transfer of the
student from a charter school to another public school, in accordance
with applicable State law.
``SEC. 5209. PAPERWORK REDUCTION.
``To the extent practicable, the Secretary and each authorized
public chartering agency shall ensure that implementation of this
subpart results in a minimum of paperwork for any eligible applicant or
charter school.
``SEC. 5210. DEFINITIONS.
``In this subpart:
``(1) Charter school.--The term `charter school' means a public
school that--
``(A) in accordance with a specific State statute
authorizing the granting of charters to schools, is exempt from
significant State or local rules that inhibit the flexible
operation and management of public schools, but not from any
rules relating to the other requirements of this paragraph;
``(B) is created by a developer as a public school, or is
adapted by a developer from an existing public school, and is
operated under public supervision and direction;
``(C) operates in pursuit of a specific set of educational
objectives determined by the school's developer and agreed to
by the authorized public chartering agency;
``(D) provides a program of elementary or secondary
education, or both;
``(E) is nonsectarian in its programs, admissions policies,
employment practices, and all other operations, and is not
affiliated with a sectarian school or religious institution;
``(F) does not charge tuition;
``(G) complies with the Age Discrimination Act of 1975,
title VI of the Civil Rights Act of 1964, title IX of the
Education Amendments of 1972, section 504 of the Rehabilitation
Act of 1973, and part B of the Individuals with Disabilities
Education Act;
``(H) is a school to which parents choose to send their
children, and that admits students on the basis of a lottery,
if more students apply for admission than can be accommodated;
``(I) agrees to comply with the same Federal and State
audit requirements as do other elementary schools and secondary
schools in the State, unless such requirements are specifically
waived for the purpose of this program;
``(J) meets all applicable Federal, State, and local health
and safety requirements;
``(K) operates in accordance with State law; and
``(L) has a written performance contract with the
authorized public chartering agency in the State that includes
a description of how student performance will be measured in
charter schools pursuant to State assessments that are required
of other schools and pursuant to any other assessments mutually
agreeable to the authorized public chartering agency and the
charter school.
``(2) Developer.--The term `developer' means an individual or
group of individuals (including a public or private nonprofit
organization), which may include teachers, administrators and other
school staff, parents, or other members of the local community in
which a charter school project will be carried out.
``(3) Eligible applicant.--The term `eligible applicant' means
a developer that has--
``(A) applied to an authorized public chartering authority
to operate a charter school; and
``(B) provided adequate and timely notice to that authority
under section 5203(d)(3).
``(4) Authorized public chartering agency.--The term
`authorized public chartering agency' means a State educational
agency, local educational agency, or other public entity that has
the authority pursuant to State law and approved by the Secretary
to authorize or approve a charter school.
``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subpart $300,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 5 succeeding fiscal years.
``(b) Reservation.--From the amount appropriated under subsection
(a) for each fiscal year, the Secretary shall reserve--
``(1) $200,000,000 to carry out this subpart, other than
section 5205(b); and
``(2) any funds in excess of $200,000,000, that do not exceed
$300,000,000, to carry out section 5205(b); and
``(3)(A) 50 percent of any funds in excess of $300,000,000 to
carry out this subpart, other than section 5205(b); and
``(B) 50 percent of any funds in excess of $300,000,000 to
carry out section 5205(b).
``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
Facility Acquisition, Construction, and Renovation
``SEC. 5221. PURPOSE.
``The purpose of this subpart is to provide grants to eligible
entities to permit the eligible entities to demonstrate innovative
credit enhancement initiatives that assist charter schools to address
the cost of acquiring, constructing, and renovating facilities.
``SEC. 5222. GRANTS TO ELIGIBLE ENTITIES.
``(a) Grants.--The Secretary shall use 100 percent of the amount
available to carry out this subpart to award not less than 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. APPLICATIONS.
``(a) In General.--To receive a grant under this subpart, an
eligible entity shall submit to the Secretary an application in such
form as the Secretary may reasonably require.
``(b) Contents.--An application submitted under subsection (a)
shall contain--
``(1) a statement identifying the activities proposed to be
undertaken with funds received under this subpart, including how
the eligible entity will determine which charter schools will
receive assistance, and how much and what types of assistance
charter schools will receive;
``(2) a description of the involvement of charter schools in
the application's development and the design of the proposed
activities;
``(3) a description of the eligible entity's expertise in
capital market financing;
``(4) a description of how the proposed activities will
leverage the maximum amount of private-sector financing capital
relative to the amount of government funding used and otherwise
enhance credit available to charter schools;
``(5) a description of how the eligible entity possesses
sufficient expertise in education to evaluate the likelihood of
success of a charter school program for which facilities financing
is sought;
``(6) in the case of an application submitted by a State
governmental entity, a description of the actions that the entity
has taken, or will take, to ensure that charter schools within the
State receive the funding the charter schools need to have adequate
facilities; and
``(7) such other information as the Secretary may reasonably
require.
``SEC. 5224. CHARTER SCHOOL OBJECTIVES.
``An eligible entity receiving a grant under this subpart shall use
the funds deposited in the reserve account established under section
5225(a) to assist 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. 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.
``(4) Facilitating the issuance of bonds by charter schools, or
by other public entities for the benefit of charter schools, by
providing technical, administrative, and other appropriate
assistance (including the recruitment of bond counsel,
underwriters, and potential investors and the consolidation of
multiple charter school projects within a single bond issue).
``(b) Investment.--Funds received under this subpart and deposited
in the reserve account established under subsection (a) shall be
invested in obligations issued or guaranteed by the United States or a
State, or in other similarly low-risk securities.
``(c) Reinvestment of Earnings.--Any earnings on funds received
under this subpart shall be deposited in the reserve account
established under subsection (a) and used in accordance with such
subsection.
``SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS.
``An eligible entity may use not more than 0.25 percent of the
funds received under this subpart for the administrative costs of
carrying out its responsibilities under this subpart.
``SEC. 5227. AUDITS AND REPORTS.
``(a) Financial Record Maintenance and Audit.--The financial
records of each eligible entity receiving a grant under this subpart
shall be maintained in accordance with generally accepted accounting
principles and shall be subject to an annual audit by an independent
public accountant.
``(b) Reports.--
``(1) Grantee annual reports.--Each eligible entity receiving a
grant under this subpart annually shall submit to the Secretary a
report of its operations and activities under this subpart.
``(2) Contents.--Each annual report submitted under paragraph
(1) shall include--
``(A) a copy of the most recent financial statements, and
any accompanying opinion on such statements, prepared by the
independent public accountant reviewing the financial records
of the eligible entity;
``(B) a copy of any report made on an audit of the
financial records of the eligible entity that was conducted
under subsection (a) during the reporting period;
``(C) an evaluation by the eligible entity of the
effectiveness of its use of the Federal funds provided under
this subpart in leveraging private funds;
``(D) a listing and description of the charter schools
served during the reporting period;
``(E) a description of the activities carried out by the
eligible entity to assist charter schools in meeting the
objectives set forth in section 5224; and
``(F) a description of the characteristics of lenders and
other financial institutions participating in the activities
undertaken by the eligible entity under this subpart during the
reporting period.
``(3) Secretarial report.--The Secretary shall review the
reports submitted under paragraph (1) and shall provide a
comprehensive annual report to Congress on the activities conducted
under this subpart.
``SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.
``No financial obligation of an eligible entity entered into
pursuant to this subpart (such as an obligation under a guarantee,
bond, note, evidence of debt, or loan) shall be an obligation of, or
guaranteed in any respect by, the United States. The full faith and
credit of the United States is not pledged to the payment of funds
which may be required to be paid under any obligation made by an
eligible entity pursuant to any provision of this subpart.
``SEC. 5229. RECOVERY OF FUNDS.
``(a) In General.--The Secretary, in accordance with chapter 37 of
title 31, United States Code, shall collect--
``(1) all of the funds in a reserve account established by an
eligible entity under section 5225(a) if the Secretary determines,
not earlier than 2 years after the date on which the eligible
entity first received funds under this subpart, that the eligible
entity has failed to make substantial progress in carrying out the
purposes described in section 5225(a); or
``(2) all or a portion of the funds in a reserve account
established by an eligible entity under section 5225(a) if the
Secretary determines that the eligible entity has permanently
ceased to use all or a portion of the funds in such account to
accomplish any purpose described in section 5225(a).
``(b) Exercise of Authority.--The Secretary shall not exercise the
authority provided in subsection (a) to collect from any eligible
entity any funds that are being properly used to achieve one or more of
the purposes described in section 5225(a).
``(c) Procedures.--The provisions of sections 451, 452, and 458 of
the General Education Provisions Act shall apply to the recovery of
funds under subsection (a).
``(d) Construction.--This section shall not be construed to impair
or affect the authority of the Secretary to recover funds under part D
of the General Education Provisions Act.
``SEC. 5230. DEFINITIONS.
``In this subpart:
``(1) Charter school.--The term `charter school' has the
meaning given such term in section 5210.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a public entity, such as a State or local
governmental entity;
``(B) a private nonprofit entity; or
``(C) a consortium of entities described in subparagraphs
(A) and (B).
``SEC. 5231. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this subpart, there are
authorized to be appropriated $150,000,000 for fiscal year 2002 and
such sums as may be necessary for fiscal year 2003.
``Subpart 3--Voluntary Public School Choice Programs
``SEC. 5241. GRANTS.
``(a) Authorization.--From funds made available under section 5248
to carry out this subpart, the Secretary shall award grants, on a
competitive basis, to eligible entities to enable the entities to
establish or expand a program of public school choice (referred to in
this subpart as a `program') in accordance with this subpart.
``(b) Duration.--Grants awarded under subsection (a) may be awarded
for a period of not more than 5 years.
``SEC. 5242. USES OF FUNDS.
``(a) Required Use of Funds.--An eligible entity that receives a
grant under this subpart shall use the grant funds to provide students
selected to participate in the program with transportation services or
the cost of transportation to and from the public elementary schools
and secondary schools, including charter schools, that the students
choose to attend under the program.
``(b) Permissible Uses of Funds.--An eligible entity that receives
a grant under this subpart may use the grant funds for--
``(1) planning or designing a program (for not more than 1
year);
``(2) the cost of making tuition transfer payments to public
elementary schools or secondary schools to which students transfer
under the program;
``(3) the cost of capacity-enhancing activities that enable
high-demand public elementary schools or secondary schools to
accommodate transfer requests under the program;
``(4) the cost of carrying out public education campaigns to
inform students and parents about the program; and
``(5) other costs reasonably necessary to implement the
program.
``(c) Nonpermissible Uses of Funds.--An eligible entity that
receives a grant under this subpart may not use the grant funds for
school construction.
``(d) Administrative Expenses.--The eligible entity may use not
more than 5 percent of the funds made available through the grant for
any fiscal year for administrative expenses.
``SEC. 5243. APPLICATIONS.
``(a) Submission.--An eligible entity that desires a grant under
this subpart shall submit an application to the Secretary at such time,
in such manner, and containing such information as the Secretary may
require.
``(b) Contents.--An application submitted under subsection (a)
shall include--
``(1) a description of the program for which the eligible
entity seeks funds and the goals for such program;
``(2) a description of how and when parents of students will be
given the notice required under section 5245(a)(2);
``(3) a description of how students will be selected for the
program;
``(4) a description of how the program will be coordinated
with, and will complement and enhance, other related Federal and
non-Federal projects;
``(5) if the program is to be carried out by a partnership, the
name of each partner and a description of the partner's
responsibilities; and
``(6) such other information as the Secretary may require.
``SEC. 5244. PRIORITIES.
``In awarding grants under this subpart, the Secretary shall give
priority to an eligible entity--
``(1) whose program would provide the widest variety of choices
to all students in participating schools;
``(2) whose program would, through various choice options, have
the most impact in allowing students in low-performing schools to
attend higher-performing schools; and
``(3) that is a partnership that seeks to implement an
interdistrict approach to carrying out a program.
``SEC. 5245. REQUIREMENTS AND VOLUNTARY PARTICIPATION.
``(a) Parent and Community Involvement and Notice.--In carrying out
a program under this subpart, an eligible entity shall--
``(1) develop the program with--
``(A) the involvement of parents and others in the
community to be served; and
``(B) individuals who will carry out the program, including
administrators, teachers, principals, and other staff; and
``(2) provide to parents of students in the area to be served
by the program with prompt notice of--
``(A) the existence of the program;
``(B) the program's availability; and
``(C) a clear explanation of how the program will operate.
``(b) Selection of Students.--An eligible entity that receives a
grant under this subpart shall select students to participate in a
program on the basis of a lottery, if more students apply for admission
to the program than can be accommodated.
``(c) Voluntary Participation.--Student participation in a program
funded under this subpart shall be voluntary.
``SEC. 5246. EVALUATIONS.
``(a) In General.--From the amount made available to carry out this
subpart for any fiscal year, the Secretary may reserve not more than 5
percent--
``(1) to carry out evaluations;
``(2) to provide technical assistance; and
``(3) to disseminate information.
``(b) Evaluations.--In carrying out the evaluations under
subsection (a), the Secretary shall, at a minimum, address--
``(1) how, and the extent to which, the programs promote
educational equity and excellence;
``(2) the characteristics of the students participating in the
programs; and
``(3) the effect of the programs on the academic achievement of
students participating in the programs, particularly students who
move from schools identified under section 1116 to schools not so
identified, and on the overall quality of participating schools and
districts.
``SEC. 5247. DEFINITIONS.
``In this subpart:
``(1) Charter school.--The term `charter school' has the
meaning given such term in section 5210.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) one or more State educational agencies;
``(B) one or more local educational agencies; or
``(C) a partnership of--
``(i) one or more--
``(I) State educational agencies; and
``(II) local educational agencies or other public,
for-profit, or nonprofit entities; or
``(ii) one or more--
``(I) local educational agencies; and
``(II) public, for-profit, or nonprofit entities.
``(3) Low-performing school.--The term `low-performing school'
means a public elementary school or secondary school that has
failed to make adequate yearly progress, as described in section
1111(b), for two or more consecutive years.
``SEC. 5248. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
$100,000,000 for fiscal year 2002 and each of the 5 succeeding fiscal
years.
``PART C--MAGNET SCHOOLS ASSISTANCE
``SEC. 5301. FINDINGS AND PURPOSE.
``(a) Findings.--Congress makes the following findings:
``(1) Magnet schools are a significant part of the Nation's
effort to achieve voluntary desegregation in our Nation's schools.
``(2) The use of magnet schools has increased dramatically
since the inception of the magnet schools assistance program under
this Act, with approximately 2,000,000 students nationwide
attending such schools, of whom more than 65 percent are non-white.
``(3) Magnet schools offer a wide range of distinctive programs
that have served as models for school improvement efforts.
``(4) It is in the best interests of the United States--
``(A) to continue the Federal Government's support of local
educational agencies that are implementing court-ordered
desegregation plans and local educational agencies that are
voluntarily seeking to foster meaningful interaction among
students of different racial and ethnic backgrounds, beginning
at the earliest stage of such students' education;
``(B) to ensure that all students have equitable access to
a high quality education that will prepare all students to
function well in a technologically oriented and a highly
competitive economy comprised of people from many different
racial and ethnic backgrounds; and
``(C) to continue to desegregate and diversify schools by
supporting magnet schools, recognizing that segregation exists
between minority and nonminority students as well as among
students of different minority groups.
``(5) Desegregation efforts through magnet school programs are
a significant part of our Nation's effort to achieve voluntary
desegregation in schools and help to ensure equal educational
opportunities for all students.
``(b) Purpose.--The purpose of this part is to assist in the
desegregation of schools served by local educational agencies by
providing financial assistance to eligible local educational agencies
for--
``(1) the elimination, reduction, or prevention of minority
group isolation in elementary schools and secondary schools with
substantial proportions of minority students, which shall include
assisting in the efforts of the United States to achieve voluntary
desegregation in public schools;
``(2) the development and implementation of magnet school
programs that will assist local educational agencies in achieving
systemic reforms and providing all students the opportunity to meet
challenging State academic content standards and student academic
achievement standards;
``(3) the development and design of innovative educational
methods and practices that promote diversity and increase choices
in public elementary schools and public secondary schools and
public educational programs;
``(4) courses of instruction within magnet schools that will
substantially strengthen the knowledge of academic subjects and the
attainment of tangible and marketable vocational, technological,
and professional skills of students attending such schools;
``(5) improving the capacity of local educational agencies,
including through professional development, to continue operating
magnet schools at a high performance level after Federal funding
for the magnet schools is terminated; and
``(6) ensuring that all students enrolled in the magnet school
programs have equitable access to high quality education that will
enable the students to succeed academically and continue with
postsecondary education or productive employment.
``SEC. 5302. DEFINITION.
``For the purpose of this part, the term `magnet school' means a
public elementary school, public secondary school, public elementary
education center, or public secondary education center that offers a
special curriculum capable of attracting substantial numbers of
students of different racial backgrounds.
``SEC. 5303. PROGRAM AUTHORIZED.
``The Secretary, in accordance with this part, is authorized to
award grants to eligible local educational agencies, and consortia of
such agencies where appropriate, to carry out the purpose of this part
for magnet schools that are--
``(1) part of an approved desegregation plan; and
``(2) designed to bring students from different social,
economic, ethnic, and racial backgrounds together.
``SEC. 5304. ELIGIBILITY.
``A local educational agency, or consortium of such agencies where
appropriate, is eligible to receive a grant under this part to carry
out the purpose of this part if such agency or consortium--
``(1) is implementing a plan undertaken pursuant to a final
order issued by a court of the United States, or a court of any
State, or any other State agency or official of competent
jurisdiction, that requires the desegregation of minority-group-
segregated children or faculty in the elementary schools and
secondary schools of such agency; or
``(2) without having been required to do so, has adopted and is
implementing, or will, if a grant is awarded to such local
educational agency, or consortium of such agencies, under this
part, adopt and implement a plan that has been approved by the
Secretary as adequate under title VI of the Civil Rights Act of
1964 for the desegregation of minority-group-segregated children or
faculty in such schools.
``SEC. 5305. APPLICATIONS AND REQUIREMENTS.
``(a) Applications.--An eligible local educational agency, or
consortium of such agencies, desiring to receive a grant under this
part shall submit an application to the Secretary at such time, in such
manner, and containing such information and assurances as the Secretary
may reasonably require.
``(b) Information and Assurances.--Each application submitted under
subsection (a) shall include--
``(1) a description of--
``(A) how a grant awarded under this part will be used to
promote desegregation, including how the proposed magnet school
programs will increase interaction among students of different
social, economic, ethnic, and racial backgrounds;
``(B) the manner and extent to which the magnet school
program will increase student academic achievement in the
instructional area or areas offered by the school;
``(C) how the applicant will continue the magnet school
program after assistance under this part is no longer
available, and, if applicable, an explanation of why magnet
schools established or supported by the applicant with grant
funds under this part cannot be continued without the use of
grant funds under this part;
``(D) how grant funds under this part will be used--
``(i) to improve student academic achievement for all
students attending the magnet school programs; and
``(ii) to implement services and activities that are
consistent with other programs under this Act, and other
Acts, as appropriate; and
``(E) the criteria to be used in selecting students to
attend the proposed magnet school program; and
``(2) assurances that the applicant will--
``(A) use grant funds under this part for the purposes
specified in section 5301(b);
``(B) employ highly qualified teachers in the courses of
instruction assisted under this part;
``(C) not engage in discrimination based on race, religion,
color, national origin, sex, or disability in--
``(i) the hiring, promotion, or assignment of employees
of the applicant or other personnel for whom the applicant
has any administrative responsibility;
``(ii) the assignment of students to schools, or to
courses of instruction within the schools, of such
applicant, except to carry out the approved plan; and
``(iii) designing or operating extracurricular
activities for students;
``(D) carry out a high-quality education program that will
encourage greater parental decisionmaking and involvement; and
``(E) give students residing in the local attendance area
of the proposed magnet school program equitable consideration
for placement in the program, consistent with desegregation
guidelines and the capacity of the applicant to accommodate the
students.
``(c) Special Rule.--No grant shall be awarded under this part
unless the Assistant Secretary of Education for Civil Rights determines
that the assurances described in subsection (b)(2)(C) will be met.
``SEC. 5306. PRIORITY.
``In awarding grants under this part, the Secretary shall give
priority to applicants that--
``(1) demonstrate the greatest need for assistance, based on
the expense or difficulty of effectively carrying out approved
desegregation plans and the magnet school program for which the
grant is sought;
``(2) propose to carry out new magnet school programs, or
significantly revise existing magnet school programs; and
``(3) propose to select students to attend magnet school
programs by methods such as lottery, rather than through academic
examination.
``SEC. 5307. USE OF FUNDS.
``(a) In General.--Grant funds made available under this part may
be used by an eligible local educational agency, or consortium of such
agencies--
``(1) for planning and promotional activities directly related
to the development, expansion, continuation, or enhancement of
academic programs and services offered at magnet schools;
``(2) for the acquisition of books, materials, and equipment,
including computers and the maintenance and operation of materials,
equipment, and computers, necessary to conduct programs in magnet
schools;
``(3) for the compensation, or subsidization of the
compensation, of elementary school and secondary school teachers
who are highly qualified, and instructional staff where applicable,
who are necessary to conduct programs in magnet schools;
``(4) with respect to a magnet school program offered to less
than the entire student population of a school, for instructional
activities that--
``(A) are designed to make available the special curriculum
that is offered by the magnet school program to students who
are enrolled in the school but who are not enrolled in the
magnet school program; and
``(B) further the purpose of this part;
``(5) for activities, which may include professional
development, that will build the recipient's capacity to operate
magnet school programs once the grant period has ended;
``(6) to enable the local educational agency, or consortium of
such agencies, to have more flexibility in the administration of a
magnet school program in order to serve students attending a school
who are not enrolled in a magnet school program; and
``(7) to enable the local educational agency, or consortium of
such agencies, to have flexibility in designing magnet schools for
students in all grades.
``(b) Special Rule.--Grant funds under this part may be used for
activities described in paragraphs (2) and (3) of subsection (a) only
if the activities are directly related to improving student academic
achievement based on the State's challenging academic content standards
and student academic achievement standards or directly related to
improving student reading skills or knowledge of mathematics, science,
history, geography, English, foreign languages, art, or music, or to
improving vocational, technological, and professional skills.
``SEC. 5308. PROHIBITION.
``Grants under this part may not be used for transportation or any
activity that does not augment academic improvement.
``SEC. 5309. LIMITATIONS.
``(a) Duration of Awards.--A grant under this part shall be awarded
for a period that shall not exceed 3 fiscal years.
``(b) Limitation on Planning Funds.--A local educational agency, or
consortium of such agencies, may expend for planning (professional
development shall not be considered to be planning for purposes of this
subsection) not more than 50 percent of the grant funds received under
this part for the first year of the program and not more than 15
percent of such funds for each of the second and third such years.
``(c) Amount.--No local educational agency, or consortium of such
agencies, awarded a grant under this part shall receive more than
$4,000,000 under this part for any 1 fiscal year.
``(d) Timing.--To the extent practicable, the Secretary shall award
grants for any fiscal year under this part not later than July 1 of the
applicable fiscal year.
``SEC. 5310. EVALUATIONS.
``(a) Reservation.--The Secretary may reserve not more than 2
percent of the funds appropriated under section 5311(a) for any fiscal
year to carry out evaluations, provide technical assistance, and carry
out dissemination projects with respect to magnet school programs
assisted under this part.
``(b) Contents.--Each evaluation described in subsection (a), at a
minimum, shall address--
``(1) how and the extent to which magnet school programs lead
to educational quality and improvement;
``(2) the extent to which magnet school programs enhance
student access to a high quality education;
``(3) the extent to which magnet school programs lead to the
elimination, reduction, or prevention of minority group isolation
in elementary schools and secondary schools with substantial
proportions of minority students; and
``(4) the extent to which magnet school programs differ from
other school programs in terms of the organizational
characteristics and resource allocations of such magnet school
programs.
``(c) Dissemination.--The Secretary shall collect and disseminate
to the general public information on successful magnet school programs.
``SEC. 5311. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.
``(a) Authorization.--For the purpose of carrying out this part,
there are authorized to be appropriated $125,000,000 for fiscal year
2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(b) Availability of Funds for Grants to Agencies Not Previously
Assisted.--In any fiscal year for which the amount appropriated
pursuant to subsection (a) exceeds $75,000,000, the Secretary shall
give priority in using such amounts in excess of $75,000,000 to
awarding grants to local educational agencies or consortia of such
agencies that did not receive a grant under this part in the preceding
fiscal year.
``PART D--FUND FOR THE IMPROVEMENT OF EDUCATION
``SEC. 5401. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
the following amounts:
``(1) $550,000,000 for fiscal year 2002.
``(2) $575,000,000 for fiscal year 2003.
``(3) $600,000,000 for fiscal year 2004.
``(4) $625,000,000 for fiscal year 2005.
``(5) $650,000,000 for fiscal year 2006.
``(6) $675,000,000 for fiscal year 2007.
``Subpart 1--Fund for the Improvement of Education
``SEC. 5411. PROGRAMS AUTHORIZED.
``(a) Authorization.--The Secretary is authorized to support
nationally significant programs to improve the quality of elementary
and secondary education at the State and local levels and help all
children meet challenging State academic content and student academic
achievement standards. The Secretary may carry out such programs
directly, or through grants to, or contracts with--
``(1) States or local educational agencies;
``(2) institutions of higher education; and
``(3) other public and private agencies, organizations, and
institutions.
``(b) Uses of Funds.--Funds made available under section 5401 to
carry out this subpart may be used for any of the following programs:
``(1) Activities to promote systemic education reform at the
State and local levels, including scientifically based research,
development, and evaluation designed to improve--
``(A) student academic achievement at the State and local
level; and
``(B) strategies for effective parent and community
involvement.
``(2) Programs at the State and local levels that are designed
to yield significant results, including programs to explore
approaches to public school choice and school-based decisionmaking.
``(3) Recognition programs, which may include financial awards
to States, local educational agencies, and schools that have made
the greatest progress, based on the Secretary's determination or on
a nomination by the State in which the school is located (or in the
case of a Bureau funded school, by the Secretary of the Interior)
in--
``(A) improving the academic achievement of economically
disadvantaged students and students from major racial and
ethnic minority groups; and
``(B) closing the academic achievement gap for those groups
of students farthest away from the proficient level on the
academic assessments administered by the State under section
1111.
``(4) Scientifically based studies and evaluations of education
reform strategies and innovations, and the dissemination of
information on the effectiveness of such strategies and
innovations.
``(5) Identification and recognition of exemplary schools and
programs, such as Blue Ribbon Schools, including programs to
evaluate the effectiveness of using the best practices of exemplary
or Blue Ribbon Schools to improve academic achievement.
``(6) Activities to support Scholar-Athlete Games programs,
including the World Scholar-Athlete Games and the U.S. Scholar-
Athlete Games.
``(7) Programs to promote voter participation in American
elections through programs, such as the National Student/Parent
Mock Election and Kids Voting USA.
``(8) Demonstrations relating to the planning and evaluation of
the effectiveness of programs under which local educational
agencies or schools contract with private management organizations
to reform a school or schools.
``(9) Other programs that meet the purposes of this Act.
``(c) Basis of Awards.--The Secretary is authorized to--
``(1) make awards under this subpart on the basis of
competitions announced by the Secretary; and
``(2) support meritorious unsolicited proposals for awards
under this subpart.
``(d) Effectiveness of Programs.--The Secretary shall ensure that
programs supported under this subpart are designed so that their
effectiveness is readily ascertainable, and shall ensure that such
effectiveness is assessed using rigorous, scientifically based research
and evaluations.
``SEC. 5412. APPLICATIONS.
``(a) Submission.--To be eligible for an award under this subpart,
an entity shall submit an application to the Secretary, at such time,
in such manner, and containing such information as the Secretary may
require.
``(b) Contents.--Each application submitted under subsection (a)
shall--
``(1) establish clear objectives, which are based on
scientifically based research, for the proposed program; and
``(2) describe the activities the applicant will carry out in
order to meet the objectives described in paragraph (1).
``(c) Peer Review.--The Secretary shall use a peer review process
in reviewing applications for awards under this subpart and in
recognizing States, local educational agencies, and schools under
section 5411(b)(3), only if funds are used for such recognition
programs. The Secretary may use funds appropriated under this subpart
for the cost of such peer review.
``SEC. 5413. PROGRAM REQUIREMENTS.
``(a) Evaluations.--A recipient of an award under this subpart
shall--
``(1) evaluate the effectiveness of the program funded under
the award in achieving the objectives stated in 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) Dissemination of Evaluation Results.--The Secretary shall
provide for the dissemination of the evaluations of programs funded
under this subpart by making the evaluations publicly available upon
request, and shall provide public notice that the evaluations are so
available.
``(c) Matching Funds.--The Secretary may require recipients of
awards under this subpart to provide matching funds from non-Federal
sources, and shall permit the recipients to match funds in whole or in
part with in-kind contributions.
``(d) Special Rule for Recognition Programs.--The application
requirements of section 5412(b), and the evaluation requirements of
subsections (a) and (b) of this section, do not apply to recognition
programs under section 5411(b)(3).
``SEC. 5414. STUDIES OF NATIONAL SIGNIFICANCE.
``(a) Studies.--The Secretary shall conduct the following studies
of national significance:
``(1) Unhealthy public school buildings.--A study regarding the
health and learning impacts of environmentally unhealthy public
school buildings on students and teachers. The study shall include
the following information:
``(A) The characteristics of those public elementary school
and secondary school buildings that contribute to unhealthy
school environments.
``(B) The health and learning impacts of environmental
unhealthy public school buildings on students that are
attending or that have attended such schools.
``(C) Recommendations to Congress on how to assist schools
that are out of compliance with Federal or State health and
safety codes, and a cost estimate of bringing up
environmentally unhealthy public school buildings to minimum
Federal health and safety building standards.
``(2) Exposure to violent entertainment.--A study regarding how
exposure to violent entertainment (such as in movies, music,
television, Internet content, video games, and arcade games)
affects children's cognitive development and educational
achievement.
``(3) Sexual abuse in schools.--A study regarding the
prevalence of sexual abuse in schools, including recommendations
and legislative remedies for addressing the problem of sexual abuse
in schools.
``(b) Completion Date.--The studies under subsection (a) shall be
completed not later than 18 months after the date of enactment of the
No Child Left Behind Act of 2001.
``(c) Public Dissemination.--The Secretary shall make the study
conducted under subsection (a)(1) available to the public through the
Educational Resources Information Center National Clearinghouse for
Educational Facilities of the Department.
``Subpart 2--Elementary and Secondary School Counseling Programs
``SEC. 5421. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.
``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award grants
to local educational agencies to enable such agencies to establish
or expand elementary school and secondary school counseling
programs that comply with the requirements of subsection (c)(2).
``(2) Special consideration.--In awarding grants under this
section, the Secretary shall give special consideration to
applications describing programs that--
``(A) demonstrate the greatest need for new or additional
counseling services among children in the schools served by the
local educational agency, in part by providing information on
current ratios of students to school counselors, students to
school social workers, and students to school psychologists;
``(B) propose the most promising and innovative approaches
for initiating or expanding school counseling; and
``(C) show the greatest potential for replication and
dissemination.
``(3) Equitable distribution.--In awarding grants under this
section, the Secretary shall ensure an equitable geographic
distribution among the regions of the United States and among local
educational agencies located in urban, rural, and suburban areas.
``(4) Duration.--A grant under this section shall be awarded
for a period not to exceed 3 years.
``(5) Maximum grant.--A grant awarded under this section shall
not exceed $400,000 for any fiscal year.
``(6) Supplement, not supplant.--Funds made available under
this section shall be used to supplement, and not supplant, other
Federal, State, or local funds used for providing school-based
counseling and mental health services to students.
``(b) Applications.--
``(1) In general.--Each local educational agency desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(2) Contents.--Each application for a grant under this
section shall--
``(A) describe the school population to be targeted by the
program, the particular counseling needs of such population,
and the current school counseling resources available for
meeting such needs;
``(B) describe the activities, services, and training to be
provided by the program and the specific approaches to be used
to meet the needs described in subparagraph (A);
``(C) describe the methods to be used to evaluate the
outcomes and effectiveness of the program;
``(D) describe how the local educational agency will
involve community groups, social service agencies, and other
public and private entities in collaborative efforts to enhance
the program and promote school-linked services integration;
``(E) document that the local educational agency has the
personnel qualified to develop, implement, and administer the
program;
``(F) describe how diverse cultural populations, if
applicable, will be served through the program;
``(G) assure that the funds made available under this
subpart for any fiscal year will be used to supplement, and not
supplant, any other Federal, State, or local funds used for
providing school-based counseling and mental health services to
students; and
``(H) assure that the applicant will appoint an advisory
board composed of interested parties, including parents,
teachers, school administrators, counseling services providers
described in subsection (c)(2)(D), and community leaders, to
advise the local educational agency on the design and
implementation of the program.
``(c) Use of Funds.--
``(1) In general.--The Secretary is authorized to award grants
to local educational agencies to enable the local educational
agencies to initiate or expand elementary school or secondary
school counseling programs that comply with the requirements of
paragraph (2).
``(2) Requirements.--Each program funded under this section
shall--
``(A) be comprehensive in addressing the counseling and
educational needs of all students;
``(B) use a developmental, preventive approach to
counseling;
``(C) increase the range, availability, quantity, and
quality of counseling services in the elementary schools and
secondary schools of the local educational agency;
``(D) expand counseling services through qualified school
counselors, school social workers, school psychologists, other
qualified psychologists, or child and adolescent psychiatrists;
``(E) use innovative approaches to increase children's
understanding of peer and family relationships, work and self,
decisionmaking, or academic and career planning, or to improve
peer interaction;
``(F) provide counseling services in settings that meet the
range of student needs;
``(G) include in-service training appropriate to the
activities funded under this Act for teachers, instructional
staff, and appropriate school personnel, including in-service
training in appropriate identification and early intervention
techniques by school counselors, school social workers, school
psychologists, other qualified psychologists, and child and
adolescent psychiatrists;
``(H) involve parents of participating students in the
design, implementation, and evaluation of the counseling
program;
``(I) involve community groups, social service agencies, or
other public or private entities in collaborative efforts to
enhance the program and promote school-linked integration of
services;
``(J) evaluate annually the effectiveness and outcomes of
the counseling services and activities assisted under this
section;
``(K) ensure a team approach to school counseling in the
schools served by the local educational agency by working
toward ratios recommended by the American School Health
Association of 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;
``(B) is licensed or certified in school psychology by the
State in which the individual works; or
``(C) in the absence of such State licensure or
certification, possesses national certification by the National
School Psychology Certification Board; and
``(5) the term `school social worker' means an individual who--
``(A) holds a master's degree in social work from a program
accredited by the Council on Social Work Education; and
``(B)(i) is licensed or certified by the State in which
services are provided; or
``(ii) in the absence of such State licensure or
certification, possesses a national credential or certification
as a school social work specialist granted by an independent
professional organization.
``(f) Report.--Not later than 2 years after assistance is made
available to local educational agencies under subsection (c), the
Secretary shall make publicly available a report--
``(1) evaluating the programs assisted pursuant to each grant
under this subpart; and
``(2) outlining the information from local educational agencies
regarding the ratios of students to--
``(A) school counselors;
``(B) school social workers; and
``(C) school psychologists.
``(g) Special Rule.--
``(1) Amount equals or exceeds $40,000,000.--If the amount of
funds made available by the Secretary for this subpart equals or
exceeds $40,000,000, the Secretary shall award not less than
$40,000,000 in grants to local educational agencies to enable the
agencies to establish or expand counseling programs in elementary
schools.
``(2) Amount less than $40,000,000.--If the amount of funds
made available by the Secretary for this subpart is less than
$40,000,000, the Secretary shall award grants to local educational
agencies only to establish or expand counseling programs in
elementary schools.
``Subpart 3--Partnerships in Character Education
``SEC. 5431. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.
``(a) Program Authorized.--
``(1) In general.--The Secretary is authorized to award grants
to eligible entities for the design and implementation of character
education programs that--
``(A) are able to be integrated into classroom instruction
and to be consistent with State academic content standards; and
``(B) are able to be carried out in conjunction with other
educational reform efforts.
``(2) Eligible entity.--In this section, the term `eligible
entity' means--
``(A) a State educational agency in partnership with--
``(i) one or more local educational agencies; or
``(ii) one or more--
``(I) local educational agencies; and
``(II) nonprofit organizations or entities,
including an institution of higher education;
``(B) a local educational agency or consortium of local
educational agencies; or
``(C) a local educational agency in partnership with one or
more nonprofit organizations or entities, including an
institution of higher education.
``(3) Duration.--Each grant under this section shall be awarded
for a period not to exceed 5 years, of which the eligible entity
may not use more than 1 year for planning and program design.
``(4) Amount of grants for state educational agencies.--Subject
to the availability of appropriations, the amount of a grant made
by the Secretary to a State educational agency under this section
shall not be less than $500,000 if the State educational agency--
``(A) is in a partnership described in paragraph (2)(A);
and
``(B) meets such requirements as the Secretary may
establish under this section.
``(b) Contracts Under Program.--
``(1) Evaluation.--Each eligible entity awarded a grant under
this section may contract with outside sources, including
institutions of higher education and private and nonprofit
organizations, for the purposes of--
``(A) evaluating the program for which the assistance is
made available;
``(B) measuring the integration of such program into the
curriculum and teaching methods of schools where the program is
carried out; and
``(C) measuring the success of such program in fostering
the elements of character selected by the recipient under
subsection (c).
``(2) Materials and program development.--Each eligible entity
awarded a grant under this section may contract with outside
sources, including institutions of higher education and private and
nonprofit organizations, for assistance in--
``(A) developing secular curricula, materials, teacher
training, and other activities related to character education;
and
``(B) integrating secular character education into the
curricula and teaching methods of schools where the program is
carried out.
``(c) Elements of Character.--
``(1) Selection.--
``(A) In general.--Each eligible entity awarded a grant
under this section may select the elements of character that
will be taught under the program for which the grant was
awarded.
``(B) Consideration of views.--In selecting elements of
character under subparagraph (A), the eligible entity shall
consider the views of the parents of the students to be taught
under the program and the views of the students.
``(2) Example elements.--Elements of character selected under
this subsection may include any of the following:
``(A) Caring.
``(B) Civic virtue and citizenship.
``(C) Justice and fairness.
``(D) Respect.
``(E) Responsibility.
``(F) Trustworthiness.
``(G) Giving.
``(H) Any other elements deemed appropriate by the eligible
entity.
``(d) Use of Funds by State Educational Agency Recipients.--Of the
total funds received in any fiscal year under this section by an
eligible entity that is a State educational agency--
``(1) not more than 3 percent of such funds may be used for
administrative purposes; and
``(2) the remainder of such funds may be used for--
``(A) collaborative initiatives with and between local
educational agencies and schools;
``(B) the preparation or purchase of materials, and teacher
training;
``(C) providing assistance to local educational agencies,
schools, or institutions of higher education; and
``(D) technical assistance and evaluation.
``(e) Application.--
``(1) In general.--Each eligible entity desiring a grant under
this section shall submit an application to the Secretary at such
time and in such manner as the Secretary may require.
``(2) Required information.--Each application for a grant under
this section shall include (together with any other information
that the Secretary may require) information that--
``(A) demonstrates that the program for which the grant is
sought has clear objectives that are based on scientifically
based research;
``(B) describes any partnerships or collaborative efforts
among the organizations and entities of the eligible entity;
``(C) describes the activities that will be carried out
with the grant funds and how such activities will meet the
objectives described in subparagraph (A), including--
``(i) how parents, students, students with disabilities
(including those with mental or physical disabilities), and
other members of the community, including members of
private and nonprofit organizations, will be involved in
the design and implementation of the program and how the
eligible entity will work with the larger community to
increase the reach and promise of the program;
``(ii) curriculum and instructional practices that will
be used or developed; and
``(iii) methods of teacher training and parent
education that will be used or developed;
``(D) describes how the program for which the grant is
sought will be linked to other efforts to improve academic
achievement, including--
``(i) broader educational reforms that are being
instituted by the eligible entity or its partners; and
``(ii) State academic content standards;
``(E) in the case of an eligible entity that is a State
educational agency, describes how the State educational
agency--
``(i) will provide technical and professional
assistance to its local educational agency partners in the
development and implementation of character education
programs; and
``(ii) will assist other interested local educational
agencies that are not members of the original partnership
in designing and establishing character education programs;
``(F) describes how the eligible entity will evaluate the
success of its program--
``(i) based on the objectives described in subparagraph
(A); and
``(ii) in cooperation with any national evaluation
conducted pursuant to subsection (h)(2)(B)(iii); and
``(G) assures that the eligible entity annually will
provide to the Secretary such information as may be required to
determine the effectiveness of the program.
``(f) Selection of Recipients.--
``(1) Peer review.--
``(A) In general.--In selecting eligible entities to
receive grants under this section from among the applicants for
such grants, the Secretary shall use a peer review process that
includes the participation of experts in the field of character
education and development.
``(B) Use of funds.--The Secretary may use funds
appropriated under this section for the cost of carrying out
peer reviews under this paragraph.
``(2) Selection criteria.--Each selection under paragraph (1)
shall be made on the basis of the quality of the application
submitted, taking into consideration such factors as--
``(A) the extent to which the program fosters character in
students and the potential for improved student academic
achievement;
``(B) the extent and ongoing nature of parental, student,
and community involvement;
``(C) the quality of the plan for measuring and assessing
success; and
``(D) the likelihood that the objectives of the program
will be achieved.
``(3) Equitable distribution.--In making selections under this
subsection, the Secretary shall ensure, to the extent practicable
under paragraph (2), that the programs assisted under this section
are equitably distributed among the geographic regions of the
United States, and among urban, suburban, and rural areas.
``(g) Participation by Private School Children and Teachers.--Each
eligible entity that receives a grant under this section shall provide,
to the extent feasible and appropriate, for the participation in
programs and activities under this section of students and teachers in
private elementary schools and secondary schools.
``(h) Evaluation and Program Development.--
``(1) State and local reporting and evaluation.--Each eligible
entity receiving a grant under this section shall submit to the
Secretary a comprehensive evaluation of the program assisted under
this section, including its impact on students, students with
disabilities (including those with mental or physical
disabilities), teachers, administrators, parents, and others--
``(A) by the end of the second year of the program; and
``(B) not later than 1 year after completion of the grant
period.
``(2) National research, dissemination, and evaluation.--
``(A) In general.--
``(i) Authorization.--The Secretary is authorized to
award grants to, or enter into contracts or cooperative
agreements with, State educational agencies or local
educational agencies, institutions of higher education,
tribal organizations, or other public or private agencies
or organizations to carry out research, development,
dissemination, technical assistance, and evaluation
activities that support or inform State and local character
education programs.
``(ii) Reservation of funds.--The Secretary shall
reserve not more than 5 percent of the funds made available
under this section to carry out this paragraph.
``(B) Uses.--Funds made available under subparagraph (A)
may be used for the following:
``(i) Conducting research and development activities
that focus on matters such as--
``(I) the extent to which schools are undertaking
character education initiatives;
``(II) the effectiveness of instructional models
for all students, including students with disabilities
(including those with mental or physical disabilities);
``(III) materials and curricula for use by programs
in character education;
``(IV) models of professional development in
character education;
``(V) the development of measures of effectiveness
for character education programs (which may include the
factors described in paragraph (3)); and
``(VI) the effectiveness of State and local
programs receiving funds under this section.
``(ii) Providing technical assistance to State and
local programs, particularly on matters of program
evaluation.
``(iii) Conducting evaluations of State and local
programs receiving funding under this section, that may be
conducted through a national clearinghouse under clause
(iv).
``(iv) Compiling and disseminating, through a national
clearinghouse or other means--
``(I) information on model character education
programs;
``(II) information about high quality character
education materials and curricula;
``(III) research findings in the area of character
education and character development; and
``(IV) any other information that will be useful to
character education program participants nationwide,
including educators, parents, and administrators.
``(C) Partnerships.--In carrying out national activities
under this paragraph, the Secretary may enter into partnerships
with national nonprofit character education organizations and
institutions of higher education with expertise and successful
experience in implementing--
``(i) character education programs that had an
effective impact on schools, students, students with
disabilities (including those with mental or physical
disabilities), and teachers; or
``(ii) character education program evaluation and
research.
``(D) Partnership for activities under subparagraph
(B)(iv).--In carrying out national activities under
subparagraph (B)(iv), the Secretary may enter into a
partnership with a national nonprofit character education
organization that will disseminate information to educators,
parents, administrators, and others nationwide, including
information about the range of model character education
programs, materials, and curricula.
``(E) Report.--Each entity awarded a grant or entering into
a contract or cooperative agreement under this paragraph shall
submit an annual report to the Secretary that--
``(i) describes the entity's progress in carrying out
research, development, dissemination, evaluation, and
technical assistance under this paragraph;
``(ii) identifies unmet and future information needs in
the field of character education; and
``(iii) if applicable, describes the progress of the
entity in carrying out the requirements of subparagraph
(B)(iv), including a listing of--
``(I) the number of requests for information
received by the entity in the course of carrying out
such requirements;
``(II) the types of organizations making such
requests; and
``(III) the types of information requested.
``(3) Factors.--Factors that may be considered in evaluating
the success of programs funded under this section include the
following:
``(A) Discipline issues.
``(B) Student academic achievement.
``(C) Participation in extracurricular activities.
``(D) Parental and community involvement.
``(E) Faculty and administration involvement.
``(F) Student and staff morale.
``(G) Overall improvements in school climate for all
students, including students with disabilities (including those
with mental or physical disabilities).
``(i) Permissive Match.--
``(1) In general.--The Secretary may require eligible entities
to match funds awarded under this section with non-Federal funds,
except that the amount of the match may not exceed the amount of
the grant award.
``(2) Sliding scale.--The amount of a match under paragraph (1)
shall be established based on a sliding scale that takes into
account--
``(A) the poverty of the population to be targeted by the
eligible entity; and
``(B) the ability of the eligible entity to obtain funding
for the match.
``(3) In-kind contributions.--The Secretary shall permit
eligible entities to match funds in whole or in part with in-kind
contributions.
``(4) Consideration.--Notwithstanding this subsection, the
Secretary in making awards under this section shall not consider
the ability of an eligible entity to match funds.
``Subpart 4--Smaller Learning Communities
``SEC. 5441. SMALLER LEARNING COMMUNITIES.
``(a) Grant Authority.--The Secretary is authorized to award grants
to local educational agencies to enable the agencies to create a
smaller learning community or communities.
``(b) Application.--Each local educational agency desiring a grant
under this subpart shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information as the
Secretary may require. The application shall include descriptions of
the following:
``(1) Strategies and methods the local educational agency will
use to create the smaller learning community or communities.
``(2) Curriculum and instructional practices, including any
particular themes or emphases, to be used in the smaller learning
environment.
``(3) The extent of involvement of teachers and other school
personnel in investigating, designing, implementing, and sustaining
the smaller learning community or communities.
``(4) The process to be used for involving students, parents,
and other stakeholders in the development and implementation of the
smaller learning community or communities.
``(5) Any cooperation or collaboration among community
agencies, organizations, businesses, and others to develop or
implement a plan to create the smaller learning community or
communities.
``(6) The training and professional development activities that
will be offered to teachers and others involved in the activities
assisted under this subpart.
``(7) The objectives of the activities assisted under this
subpart, including a description of how such activities will better
enable all students to reach challenging State academic content
standards and State student academic achievement standards.
``(8) The methods by which the local educational agency will
assess progress in meeting the objectives described in paragraph
(7).
``(9) If the smaller learning community or communities exist as
a school-within-a-school, the relationship, including governance
and administration, of the smaller learning community to the
remainder of the school.
``(10) The administrative and managerial relationship between
the local educational agency and the smaller learning community or
communities, including how such agency will demonstrate a
commitment to the continuity of the smaller learning community or
communities (including the continuity of student and teacher
assignment to a particular learning community).
``(11) How the local educational agency will coordinate or use
funds provided under this subpart with other funds provided under
this Act or other Federal laws.
``(12) The grade levels or ages of students who will
participate in the smaller learning community or communities.
``(13) The method of placing students in the smaller learning
community or communities, such that students are not placed
according to ability or any other measure, but are placed at random
or by their own choice, and not pursuant to testing or other
judgments.
``(c) Authorized Activities.--Funds under this section may be used
for one or more of the following:
``(1) To study--
``(A) the feasibility of creating the smaller learning
community or communities; and
``(B) effective and innovative organizational and
instructional strategies that will be used in the smaller
learning community or communities.
``(2) To research, develop, and implement--
``(A) strategies for creating the smaller learning
community or communities; and
``(B) strategies for effective and innovative changes in
curriculum and instruction, geared to challenging State
academic content standards and State student academic
achievement standards.
``(3) To provide professional development for school staff in
innovative teaching methods that--
``(A) challenge and engage students; and
``(B) will be used in the smaller learning community or
communities.
``(4) To develop and implement strategies to include parents,
business representatives, local institutions of higher education,
community-based organizations, and other community members in the
smaller learning communities as facilitators of activities that
enable teachers to participate in professional development
activities and provide links between students and their community.
``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution
Program
``SEC. 5451. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING
MOTIVATION.
``(a) Purpose.--The purpose of this subpart is to establish and
implement a model partnership between a governmental entity and a
private entity, to help prepare young children for reading and to
motivate older children to read, through the distribution of
inexpensive books. Local reading motivation programs assisted under
this section shall use such assistance to provide books, training for
volunteers, motivational activities, and other essential literacy
resources and shall assign the highest priority to serving the youngest
and neediest children in the United States.
``(b) Authorization.--The Secretary is authorized to enter into a
contract with Reading Is Fundamental (RIF) (hereafter in this section
referred to as the `contractor') to support and promote programs, which
include the distribution of inexpensive books to young and school-age
children, that motivate children to read.
``(c) Requirements of Contract.--Any contract entered into under
subsection (b) shall contain each of the following:
``(1) A provision that the contractor will enter into
subcontracts with local private nonprofit groups or organizations,
or with public agencies, under which each subcontractor will agree
to establish, operate, and provide the non-Federal share of the
cost of reading motivation programs that include the distribution
of books, by gift (to the extent feasible) or by loan, to children
from birth through secondary school age, including children in
family literacy programs.
``(2) A provision that funds made available to subcontractors
will be used only to pay the Federal share of the cost of such
programs.
``(3) A provision that, in selecting subcontractors for initial
funding, the contractor will give priority to programs that will
serve a substantial number or percentage of children with special
needs, such as the following:
``(A) Low-income children, particularly in high-poverty
areas.
``(B) Children at risk of school failure.
``(C) Children with disabilities.
``(D) Foster children.
``(E) Homeless children.
``(F) Migrant children.
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 communities
with a substantial number or percentage of children with special
needs, as described in subsection (c)(3), may use funds from other
Federal sources to pay the non-Federal share of the cost of the
program, if those funds do not comprise more than 50 percent of the
non-Federal share of the funds used for the cost of acquiring and
distributing books.
``(2) Waiver authority.--Notwithstanding subsection (c), the
contractor may waive, in whole or in part, the requirement in
subsection (c)(1) for a subcontractor, if the subcontractor
demonstrates that it would otherwise not be able to participate in
the program, and enters into an agreement with the contractor with
respect to the amount of the non-Federal share to which the waiver
will apply. In a case in which such a waiver is granted, the
requirement in subsection (c)(2) shall not apply.
``(f) Multi-Year Contracts.--The contractor may enter into a multi-
year subcontract under this section, if--
``(1) the contractor believes that such subcontract will
provide the subcontractor with additional leverage in seeking local
commitments; and
``(2) the subcontract does not undermine the finances of the
national program.
``(g) Federal Share Defined.--In this section, the term `Federal
share' means, with respect to the cost to a subcontractor of purchasing
books to be paid for under this section, 75 percent of such costs to
the subcontractor, except that the Federal share for programs serving
children of migrant or seasonal farmworkers shall be 100 percent of
such costs to the subcontractor.
``Subpart 6--Gifted and Talented Students
``SEC. 5461. SHORT TITLE.
``This subpart may be cited as the `Jacob K. Javits Gifted and
Talented Students Education Act of 2001'.
``SEC. 5462. PURPOSE.
``The purpose of this subpart is to initiate a coordinated program
of scientifically based research, demonstration projects, innovative
strategies, and similar activities designed to build and enhance the
ability of elementary schools and secondary schools nationwide to meet
the special educational needs of gifted and talented students.
``SEC. 5463. RULE OF CONSTRUCTION.
Nothing in this subpart shall be construed to prohibit a recipient
of funds under this subpart from serving gifted and talented students
simultaneously with students with similar educational needs, in the
same educational settings, where appropriate.
``SEC. 5464. AUTHORIZED PROGRAMS.
``(a) Establishment of Program.--
``(1) In general.--The Secretary (after consultation with
experts in the field of the education of gifted and talented
students) is authorized to make grants to, or enter into contracts
with, State educational agencies, local educational agencies,
institutions of higher education, other public agencies, and other
private agencies and organizations (including Indian tribes and
Indian organizations (as such terms are defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b)) and Native Hawaiian organizations) to assist such agencies,
institutions, and organizations in carrying out programs or
projects authorized by this subpart that are designed to meet the
educational needs of gifted and talented students, including the
training of personnel in the education of gifted and talented
students and in the use, where appropriate, of gifted and talented
services, materials, and methods for all students.
``(2) Application.--Each entity seeking assistance under this
subpart shall submit an application to the Secretary at such time,
in such manner, and containing such information as the Secretary
may reasonably require. Each such application shall describe how--
``(A) the proposed gifted and talented services, materials,
and methods can be adapted, if appropriate, for use by all
students; and
``(B) the proposed programs can be evaluated.
``(b) Use of Funds.--Programs and projects assisted under this
section may include each of the following:
``(1) Conducting--
``(A) scientifically based research on methods and
techniques for identifying and teaching gifted and talented
students and for using gifted and talented programs and methods
to serve all students; and
``(B) program evaluations, surveys, and the collection,
analysis, and development of information needed to accomplish
the purpose of this subpart.
``(2) Carrying out professional development (including
fellowships) for personnel (including leadership personnel)
involved in the education of gifted and talented students.
``(3) Establishing and operating model projects and exemplary
programs for serving gifted and talented students, including
innovative methods for identifying and educating students who may
not be served by traditional gifted and talented programs (such as
summer programs, mentoring programs, service learning programs, and
cooperative programs involving business, industry, and education).
``(4) Implementing innovative strategies, such as cooperative
learning, peer tutoring, and service learning.
``(5) Carrying out programs of technical assistance and
information dissemination, including assistance and information
with respect to how gifted and talented programs and methods, where
appropriate, may be adapted for use by all students.
``(6) Making materials and services available through State
regional educational service centers, institutions of higher
education, or other entities.
``(7) Providing funds for challenging, high-level course work,
disseminated through technologies (including distance learning),
for individual students or groups of students in schools and local
educational agencies that would not otherwise have the resources to
provide such course work.
``(c) Special Rule.--To the extent that funds appropriated to carry
out this subpart for a fiscal year beginning with fiscal year 2002
exceed such funds appropriated for fiscal year 2001, the Secretary
shall use such excess funds to award grants, on a competitive basis, to
State educational agencies, local educational agencies, or both, to
implement activities described in subsection (b).
``(d) Center for Research and Development.--
``(1) In General.--The Secretary (after consultation with
experts in the field of the education of gifted and talented
students) shall establish a National Research Center for the
Education of Gifted and Talented Children and Youth through grants
to, or contracts with, one or more institutions of higher education
or State educational agencies, or a combination or consortium of
such institutions and agencies and other public or private agencies
and organizations, for the purpose of carrying out activities
described in subsection (b).
``(2) Director.--The National Center shall be headed by a
Director. The Secretary may authorize the Director to carry out
such functions of the National Center as may be agreed upon through
arrangements with institutions of higher education, State
educational agencies, local educational agencies, or other public
or private agencies and organizations.
``(3) Funding.--The Secretary may use not more than 30 percent
of the funds made available under this subpart for fiscal year 2001
to carry out this subsection.
``(e) Coordination.--Scientifically based research activities
supported under this subpart--
``(1) shall be carried out in consultation with the Office of
Educational Research and Improvement to ensure that such activities
are coordinated with and enhance the research and development
activities supported by such Office; and
``(2) may include collaborative scientifically based research
activities which are jointly funded and carried out with such
Office.
``SEC. 5465. PROGRAM PRIORITIES.
``(a) General Priority.--In carrying out this subpart, the
Secretary shall give highest priority to programs and projects designed
to develop new information that--
``(1) improves the capability of schools to plan, conduct, and
improve programs to identify and serve gifted and talented
students; and
``(2) assists schools in the identification of, and provision
of services to, gifted and talented students (including
economically disadvantaged individuals, individuals with limited
English proficiency, and individuals with disabilities) who may not
be identified and served through traditional assessment methods.
``(b) Service Priority.--The Secretary shall ensure that not less
than 50 percent of the applications approved under section 5464(a)(2)
in a fiscal year address the priority described in subsection (a)(2).
``SEC. 5466. GENERAL PROVISIONS.
``(a) Participation of Private School Children and Teachers.--In
making grants and entering into contracts under this subpart, the
Secretary shall ensure, where appropriate, that provision is made for
the equitable participation of students and teachers in private
nonprofit elementary schools and secondary schools, including the
participation of teachers and other personnel in professional
development programs serving such students.
``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
``(1) use a peer review process in reviewing applications under
this subpart;
``(2) ensure that information on the activities and results of
programs and projects funded under this subpart is disseminated to
appropriate State educational agencies, local educational agencies,
and other appropriate organizations, including nonprofit private
organizations; and
``(3) evaluate the effectiveness of programs under this subpart
in accordance with section 9601, in terms of the impact on students
traditionally served in separate gifted and talented programs and
on other students, and submit the results of such evaluation to
Congress not later than 2 years after the date of enactment of the
No Child Left Behind Act of 2001.
``(c) Program Operations.--The Secretary shall ensure that the
programs under this subpart are administered within the Department by a
person who has recognized professional qualifications and experience in
the field of the education of gifted and talented students and who
shall--
``(1) administer and coordinate the programs authorized under
this subpart;
``(2) serve as a focal point of national leadership and
information on the educational needs of gifted and talented
students and the availability of educational services and programs
designed to meet such needs;
``(3) assist the Assistant Secretary for Educational Research
and Improvement in identifying research priorities that reflect the
needs of gifted and talented students; and
``(4) shall disseminate, and consult on, the information
developed under this subpart with other offices within the
Department.
``Subpart 7--Star Schools Program
``SEC. 5471. SHORT TITLE.
``This subpart may be cited as the `Star Schools Act'.
``SEC. 5472. PURPOSES.
``The purposes of this subpart are the following:
``(1) To encourage improved instruction in mathematics,
science, and foreign languages as well as other subjects (such as
literacy skills and vocational education).
``(2) To serve underserved populations, including
disadvantaged, illiterate, limited English proficient populations,
and individuals with disabilities through a Star Schools program
under which grants are made to eligible telecommunication
partnerships to enable such partnerships--
``(A) to develop, construct, acquire, maintain, and operate
telecommunications audio and visual facilities and equipment;
``(B) to develop and acquire educational and instructional
programming; and
``(C) to obtain technical assistance for the use of such
facilities and instructional programming.
``SEC. 5473. GRANT PROGRAM AUTHORIZED.
``(a) Authorization.--The Secretary, in conjunction with the Office
of Educational Technology, is authorized to make grants, in accordance
with the provisions of this subpart, to eligible entities to pay the
Federal share of the cost of the following:
``(1) Development, construction, acquisition, maintenance, and
operation of telecommunications facilities and equipment.
``(2) Development and acquisition of live, interactive
instructional programming.
``(3) Development and acquisition of preservice and inservice
teacher training programs based on established research regarding
teacher-to-teacher mentoring, and ongoing, in-class instruction.
``(4) Establishment of teleconferencing facilities and
resources for making interactive training available to teachers.
``(5) Obtaining technical assistance.
``(6) Coordination of the design and connectivity of
telecommunications networks to reach the greatest number of
schools.
``(b) Duration and Amount.--
``(1) In general.--A grant under this section may not exceed--
``(A) 5 years in duration (subject to subsection (c)); and
``(B) $10,000,000 in any single fiscal year.
``(c) Renewal.--
``(1) In general.--Grants awarded under subsection (a) may be
renewed for a single additional period of 3 years.
``(2) Continuing Eligibility.--In order to be eligible to
receive a grant renewal under this subsection, a grant recipient
shall demonstrate, to the satisfaction of the Secretary, in an
addendum to its application submitted under section 5474, that the
grant recipient will--
``(A) continue to provide services in the subject areas and
geographic areas assisted with funds received under this
subpart for the previous grant period; and
``(B) use all grant funds received under this subpart for
the 3 year renewal period to provide expanded services by--
``(i) increasing the number of students, schools, or
school districts served by the courses of instruction
assisted under this part in the previous fiscal year;
``(ii) providing new courses of instruction; and
``(iii) serving new populations of underserved
individuals, such as children or adults who are
disadvantaged, have limited English proficiency, are
individuals with disabilities, are illiterate, or lack
secondary school diplomas or their recognized equivalent.
``(3) Supplement, not supplant.--Grant funds received under
this subsection shall be used to supplement, and not supplant,
services provided by the grant recipient under this subpart in the
previous fiscal year.
``(d) Reservations.--
``(1) Instructional programming.--At least 25 percent of the
funds made available to the Secretary for any fiscal year under
this subpart shall be used for the cost of instructional
programming.
``(2) Local educational agency assistance.--At least 50 percent
of the funds available in any fiscal year under this subpart shall
be used for the cost of facilities, equipment, teacher training or
retraining, technical assistance, or programming, for local
educational agencies that are eligible to receive assistance under
part A of title I.
``(e) Federal Share.--
``(1) Amount.--The Federal share of the cost of projects funded
under this section shall not exceed the following amounts:
``(A) 75 percent for the first and second years for which
an eligible telecommunications partnership receives a grant
under this subpart.
``(B) 60 percent for the third and fourth such years.
``(C) 50 percent for the fifth such year.
``(2) Reduction or waiver.--The Secretary may reduce or waive
the corresponding non-Federal share under paragraph (1) upon a
showing of financial hardship.
``(f) Required local educational agency participation.--The
Secretary is authorized to make a grant under this section to any
eligible entity, if at least one local educational agency is
participating in the proposed program.
``(g) Assistance Obtaining Satellite Time.--The Secretary may
assist recipients of grants made under this section in acquiring
satellite time, where appropriate, as economically as possible.
``SEC. 5474. APPLICATIONS.
``(a) Submission.--Each eligible entity that desires to receive a
grant under section 5473 shall submit an application to the Secretary,
at such time, in such manner, and containing or accompanied by such
information as the Secretary may reasonably require.
``(b) Contents.--An application submitted under subsection (a)
shall include each of the following:
``(1) A description of how the proposed program will assist all
students to have an opportunity to meet challenging State academic
achievement standards, how such program will assist State and local
educational reform efforts, and how such program will contribute to
creating a high-quality system of educational development.
``(2) A description of the telecommunications facilities and
equipment and technical assistance for which assistance is sought,
which may include--
``(A) the design, development, construction, acquisition,
maintenance, and operation of State or multistate educational
telecommunications networks and technology resource centers;
``(B) microwave, fiber optics, cable, and satellite
transmission equipment or any combination thereof;
``(C) reception facilities;
``(D) satellite time;
``(E) production facilities;
``(F) other telecommunications equipment capable of serving
a wide geographic area;
``(G) the provision of training services to instructors who
will be using the facilities and equipment for which assistance
is sought, including training in using such facilities and
equipment and training in integrating programs into the
classroom curriculum; and
``(H) the development of educational and related
programming for use on a telecommunications network.
``(3) In the case of an application for assistance for
instructional programming, a description of the types of
programming that will be developed to enhance instruction and
training and provide an assurance that such programming will be
designed in consultation with professionals (including classroom
teachers) who are experts in the applicable subject matter and
grade level.
``(4) A description of how the eligible entity has engaged in
sufficient survey and analysis of the area to be served to ensure
that the services offered by the eligible entity will increase the
availability of courses of instruction in English, mathematics,
science, foreign languages, arts, history, geography, or other
disciplines.
``(5) A description of the professional development policies
for teachers and other school personnel to be implemented to ensure
the effective use of the telecommunications facilities and
equipment for which assistance is sought.
``(6) A description of the manner in which historically
underserved students (such as students from low-income families,
limited English proficient students, students with disabilities, or
students who have low literacy skills) and their families, will
participate in the benefits of the telecommunications facilities,
equipment, technical assistance, and programming assisted under
this subpart.
``(7) A description of how existing telecommunications
equipment, facilities, and services, where available, will be used.
``(8) An assurance that the financial interest of the United
States in the telecommunications facilities and equipment will be
protected for the useful life of such facilities and equipment.
``(9) An assurance that a significant portion of any facilities
and equipment, technical assistance, and programming for which
assistance is sought for elementary schools and secondary schools
will be made available to schools or local educational agencies
that have a high number or percentage of children eligible to be
counted under part A of title I.
``(10) An assurance that the applicant will use the funds
provided under this subpart to supplement, and not supplant, funds
available for the purposes of this subpart.
``(11) A description of how funds received under this subpart
will be coordinated with funds received for educational technology
in the classroom.
``(12) A description of the activities or services for which
assistance is sought, such as--
``(A) providing facilities, equipment, training services,
and technical assistance;
``(B) making programs accessible to students with
disabilities through mechanisms such as closed captioning and
descriptive video services;
``(C) linking networks around issues of national importance
(such as elections) or to provide information about employment
opportunities, job training, or student and other social
service programs;
``(D) sharing curriculum resources between networks and
development of program guides which demonstrate cooperative,
cross-network listing of programs for specific curriculum
areas;
``(E) providing teacher and student support services,
including classroom and training support materials which permit
student and teacher involvement in the live interactive
distance learning telecasts;
``(F) incorporating community resources, such as libraries
and museums, into instructional programs;
``(G) providing professional development for teachers,
including, as appropriate, training to early childhood
development and Head Start teachers and staff and vocational
education teachers and staff, and adult and family educators;
``(H) providing programs for adults to maximize the use of
telecommunications facilities and equipment;
``(I) providing teacher training on proposed or established
models of exemplary academic content standards in mathematics
and science and other disciplines as such standards are
developed; and
``(J) providing parent education programs during and after
the regular school day which reinforce a student's course of
study and actively involve parents in the learning process.
``(13) A description of how the proposed program as a whole
will be financed and how arrangements for future financing will be
developed before the program expires.
``(14) An assurance that a significant portion of any
facilities, equipment, technical assistance, and programming for
which assistance is sought for elementary schools and secondary
schools will be made available to schools in local educational
agencies that have a high percentage of children counted for the
purpose of part A of title I.
``(15) An assurance that the applicant will provide such
information and cooperate in any evaluation that the Secretary may
conduct under this subpart.
``(16) Such additional assurances as the Secretary may
reasonably require.
``(c) Approval.--In approving applications submitted under
subsection (a) for grants under section 5473, the Secretary shall--
``(1) to the extent feasible, ensure an equitable geographic
distribution of services provided under this subpart.
``(2) give priority to applications describing programs that--
``(A) propose high-quality plans, will provide instruction
consistent with State academic content standards, or will
otherwise provide significant and specific assistance to States
and local educational agencies undertaking systemic education
reform;
``(B) will provide services to programs serving adults,
especially parents, with low levels of literacy;
``(C) will serve schools with significant numbers of
children counted for the purposes of part A of title I;
``(D) ensure that the eligible entity will--
``(i) serve the broadest range of institutions,
programs providing instruction outside of the school
setting, programs serving adults, especially parents, with
low levels of literacy, institutions of higher education,
teacher training centers, research institutes, and private
industry;
``(ii) have substantial academic and teaching
capabilities, including the capability of training,
retraining, and inservice upgrading of teaching skills and
the capability to provide professional development;
``(iii) provide a comprehensive range of courses for
educators to teach instructional strategies for students
with different skill levels;
``(iv) provide training to participating educators in
ways to integrate telecommunications courses into existing
school curriculum;
``(v) provide instruction for students, teachers, and
parents;
``(vi) serve a multistate area; and
``(vii) give priority to the provision of equipment and
linkages to isolated areas; and
``(E) involve a telecommunications entity (such as a
satellite, cable, telephone, computer, or public or private
television stations) participating in the eligible entity and
donating equipment or in-kind services for telecommunications
linkages.
``SEC. 5475. OTHER GRANT ASSISTANCE.
``(a) Special Statewide Network.--
``(1) In general.--The Secretary, in conjunction with the
Office of Educational Technology, may provide assistance to a
statewide telecommunications network if such network--
``(A) provides 2-way full-motion interactive video and
audio communications;
``(B) links together public colleges and universities and
secondary schools throughout the State; and
``(C) meets any other requirements determined appropriate
by the Secretary.
``(2) Matching contribution.--A statewide telecommunications
network assisted under paragraph (1) shall contribute, either
directly or through private contributions, non-Federal funds equal
to not less than 50 percent of the cost of such network.
``(b) Special Local Network.--
``(1) In general.--The Secretary is authorized to provide
assistance, on a competitive basis, to a local educational agency,
or a consortium of such agencies, to enable such agency or
consortium to establish a high-technology demonstration program.
``(2) Program requirements.--A high-technology demonstration
program assisted under paragraph (1) shall--
``(A) include 2-way full-motion interactive video, audio,
and text communications;
``(B) link together elementary schools and secondary
schools, colleges, and universities;
``(C) provide parent participation and family programs;
``(D) include a staff development program; and
``(E) have a significant contribution and participation
from business and industry.
``(3) Matching requirement.--A local educational agency or
consortium receiving a grant under paragraph (1) shall provide,
either directly or through private contributions, non-Federal
matching funds equal to not less than 50 percent of the amount of
the grant.
``(c) Telecommunications Programs for Continuing Education.--
``(1) Authority.--The Secretary is authorized to award grants,
on a competitive basis, to eligible entities to develop and operate
one or more programs that provide online access to educational
resources in support of continuing education and curriculum
requirements relevant to achieving a secondary school diploma or
its recognized equivalent. The program authorized by this
subsection shall be designed to advance adult literacy, secondary
school completion, and the acquisition of specified competency by
the end of the 12th grade.
``(2) Applications.--Each eligible entity desiring a grant
under this subsection shall submit an application to the Secretary.
The application shall include each of the following:
``(A) A demonstration that the applicant will use publicly
funded or free public telecommunications infrastructure to
deliver video, voice, and data in an integrated service to
support and assist in the acquisition of a secondary school
diploma or its recognized equivalent.
``(B) An assurance that the content of the materials to be
delivered is consistent with the accreditation requirements of
the State for which such materials are used.
``(C) To the extent feasible, materials developed in the
Federal departments and agencies and under appropriate
federally funded programs.
``(D) An assurance that the applicant has the technological
and substantive experience to carry out the program.
``(E) Such additional assurances as the Secretary may
reasonably require.
``SEC. 5476. ADMINISTRATIVE PROVISIONS.
``(a) Leadership, Evaluation, and Peer Review.--
``(1) Reservation of funds.--The Secretary may reserve not more
than 5 percent of the amount made available to carry out this
subpart for a fiscal year for national leadership, evaluation, and
peer review activities, which the Secretary may carry out directly
or through grants, contracts, and cooperative agreements.
``(2) Leadership.--Funds reserved for leadership activities
under paragraph (1) may be used for--
``(A) disseminating information, including lists and
descriptions of services available from grant recipients under
this subpart; and
``(B) other activities designed to enhance the quality of
distance learning activities nationwide.
``(3) Evaluation.--Funds reserved for evaluation activities
under paragraph (1) may be used to conduct independent evaluations
of the activities assisted under this subpart and of distance
learning in general, including--
``(A) analyses of distance learning efforts (including such
efforts that are, or are not, assisted under this subpart); and
``(B) comparisons of the effects (including student
outcomes) of different technologies in distance learning
efforts.
``(4) Peer review.--Funds reserved for peer review activities
under paragraph (1) may be used for peer review of--
``(A) applications for grants under this subpart; and
``(B) activities assisted under this subpart.
``(b) Coordination.--The Department, the National Science
Foundation, the Department of Agriculture, the Department of Commerce,
and any other Federal department or agency operating a
telecommunications network for educational purposes, shall coordinate
the activities assisted under this subpart with the activities of such
department or agency relating to a telecommunications network for
educational purposes.
``(c) Funds From Other Agencies.--The Secretary may accept funds
from other Federal departments or agencies to carry out the purposes of
this subpart, including funds for the purchase of equipment.
``(d) Availability of Funds.--Funds made available to carry out
this subpart shall remain available until expended.
``(e) Closed Captioning and Descriptive Video.--The Secretary shall
encourage each entity receiving funds under this subpart to provide--
``(1) closed captioning of the verbal content of the entity's
programming, as appropriate; and
``(2) descriptive video of the visual content of the entity's
programming, as appropriate.
``SEC. 5477. DEFINITIONS.
``In this subpart:
``(1) Educational institution.--The term `educational
institution' means an institution of higher education, a local
educational agency, or a State educational agency.
``(2) Eligible entity.--The term `eligible entity' includes any
of the following that is organized on a Statewide or multistate
basis:
``(A) A public agency or corporation established for the
purpose of developing and operating telecommunications networks
to enhance educational opportunities provided by educational
institutions, teacher training centers, and other entities,
except that any such agency or corporation shall represent the
interests of elementary schools and secondary schools that are
eligible to participate in the program under part A of title I.
``(B) A partnership that will provide telecommunications
services and that includes three or more of the following
entities, at least one of which shall be an agency described in
clause (i) or (ii):
``(i) A local educational agency that serves a
significant number of elementary schools and secondary
schools that are eligible for assistance under part A of
title I, or elementary schools and secondary schools
operated or funded for Indian children by the Department of
the Interior eligible under section 1121(d)(1)(A).
``(ii) A State educational agency.
``(iii) An adult and family education program.
``(iv) An institution of higher education or a State
higher education agency (as that term is defined in section
103 of the Higher Education Act of 1965 (20 U.S.C. 1003)).
``(v) A teacher training center or academy that--
``(I) provides teacher preservice and inservice
training; and
``(II) receives Federal financial assistance or has
been approved by a State agency;
``(vi)(I) A public or private entity with experience
and expertise in the planning and operation of a
telecommunications network, including entities involved in
telecommunications through satellite, cable, telephone, or
computer; or
``(II) a public broadcasting entity with such
experience.
``(vii) A public or private elementary school or
secondary school.
``(3) Instructional programming.--The term `instructional
programming' means courses of instruction and training courses for
elementary and secondary students, teachers, and others, and
materials for use in such instruction and training that have been
prepared in audio and visual form on tape, disc, film, or live, and
presented by means of telecommunications devices.
``(4) Public broadcasting entity.--The term `public
broadcasting entity' has the same meaning given such term in
section 397 of the Communications Act of 1934 (47 U.S.C. 397).
``Subpart 8--Ready to Teach
``SEC. 5481. GRANTS.
``(a) In General.--The Secretary is authorized to award grants to a
nonprofit telecommunications entity, or partnership of such entities,
for the purpose of carrying out a national telecommunications-based
program to improve teaching in core curriculum areas. The program shall
be designed to assist elementary school and secondary school teachers
in preparing all students to achieve challenging State academic content
and student academic achievement standards in core curriculum areas.
``(b) Digital Educational Programming.--The Secretary is authorized
to award grants, as provided for in section 5484, to eligible entities
described in subsection (b) of such section, to enable such entities to
develop, produce, and distribute innovative educational and
instructional video programming that is designed for use by elementary
schools and secondary schools and based on challenging State academic
content and student academic achievement standards. In awarding such
grants, the Secretary shall ensure that eligible entities enter into
multiyear content development collaborative arrangements with State
educational agencies, local educational agencies, institutions of
higher education, businesses, or other agencies or organizations.
``SEC. 5482. APPLICATION REQUIRED.
``(a) General Application.--
``(1) In general.--To be eligible to receive a grant under
section 5481(a), a nonprofit telecommunications entity, or
partnership of such entities shall submit an application to the
Secretary. Each such application shall--
``(A) demonstrate that the applicant will use the public
broadcasting infrastructure, the Internet, and school digital
networks, where available, to deliver video and data in an
integrated service to train teachers in the use of materials
and learning technologies for achieving challenging State
academic content and student academic achievement standards;
``(B) ensure that the project for which assistance is
sought will be conducted in cooperation with appropriate State
educational agencies, local educational agencies, and State or
local nonprofit public telecommunications entities;
``(C) ensure that a significant portion of the benefits
available for elementary schools and secondary schools from the
project for which assistance is sought will be available to
schools of local educational agencies that have a high
percentage of children counted for the purpose of part A of
title I; and
``(D) contain such additional assurances as the Secretary
may reasonably require.
``(2) Sites.--In approving applications under paragraph (1),
the Secretary shall ensure that the program authorized by section
5481(a) is conducted at elementary school and secondary school
sites throughout the United States.
``(b) Programming Application.--To be eligible to receive a grant
under section 5481(b), an entity shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``SEC. 5483. REPORTS AND EVALUATION.
``An entity receiving a grant under section 5481(a) shall prepare
and submit to the Secretary an annual report that contains such
information as the Secretary may require. At a minimum, such report
shall describe the program activities undertaken with funds received
under the grant, including--
``(1) the core curriculum areas for which program activities
have been undertaken and the number of teachers using the program
in each core curriculum area; and
``(2) the States in which teachers using the program are
located.
``SEC. 5484. DIGITAL EDUCATIONAL PROGRAMMING GRANTS.
``(a) Grants.--The Secretary is authorized to award grants under
section 5481(b) to eligible entities to facilitate the development of
educational programming that shall--
``(1) include student assessment tools to provide feedback on
student academic achievement;
``(2) include built-in teacher utilization and support
components to ensure that teachers understand and can easily use
the content of the programming with group instruction or for
individual student use;
``(3) be created for, or adaptable to, challenging State
academic content standards and student academic achievement
standards; and
``(4) be capable of distribution through digital broadcasting
and school digital networks.
``(b) Eligible Entities.--To be eligible to receive a grant under
section 5481(b), an entity shall be a local public telecommunications
entity, as defined in section 397(12) of the Communications Act of
1934, that is able to demonstrate a capacity for the development and
distribution of educational and instructional television programming of
high quality.
``(c) Competitive Basis.--Grants under section 5481(b) shall be
awarded on a competitive basis as determined by the Secretary.
``(d) Matching Requirement.--To be eligible to receive a grant
under section 5481(b), an entity shall contribute to the activities
assisted under such grant non-Federal matching funds in an amount equal
to not less than 100 percent of the amount of the grant. Such matching
funds may include funds provided for the transition to digital
broadcasting, as well as in-kind contributions.
``(e) Duration.--A grant under section 5481(b) shall be awarded for
a period of 3 years in order to provide a sufficient period of time for
the creation of a substantial body of significant content.
``SEC. 5485. ADMINISTRATIVE COSTS.
``An entity that receives a grant under this subpart may not use
more than 5 percent of the amount received under the grant for
administrative costs.
``Subpart 9--Foreign Language Assistance Program
``SEC. 5491. SHORT TITLE.
``This subpart may be cited as the `Foreign Language Assistance Act
of 2001'.
``SEC. 5492. PROGRAM AUTHORIZED.
``(a) Program Authority.--
``(1) In general.--The Secretary is authorized to make grants,
on a competitive basis, to State educational agencies or local
educational agencies to pay the Federal share of the cost of
innovative model programs providing for the establishment,
improvement, or expansion of foreign language study for elementary
school and secondary school students.
``(2) Duration.--Each grant under paragraph (1) shall be
awarded for a period of 3 years.
``(b) Requirements.--
``(1) Grants to state educational agencies.--In awarding a
grant under subsection (a) to a State educational agency, the
Secretary shall support programs that promote systemic approaches
to improving foreign language learning in the State.
``(2) Grants to local educational agencies.--In awarding a
grant under subsection (a) to a local educational agency, the
Secretary shall support programs that--
``(A) show the promise of being continued beyond the grant
period;
``(B) demonstrate approaches that can be disseminated and
duplicated in other local educational agencies; and
``(C) may include a professional development component.
``(c) Federal Share.--
``(1) In general.--The Federal share for each fiscal year shall
be 50 percent.
``(2) Waiver.--Notwithstanding paragraph (1), the Secretary may
determine the Federal share for any local educational agency which
the Secretary determines does not have adequate resources to pay
the non-Federal share of the cost of the activities assisted under
this subpart.
``(d) Special rule.--Not less than \3/4\ of the funds made
available under section 5401 to carry out this subpart shall be used
for the expansion of foreign language learning in the elementary
grades.
``(e) Reservation.--The Secretary may reserve not more than 5
percent of funds made available under section 5401 to carry out this
subpart for a fiscal year to evaluate the efficacy of programs assisted
under this subpart.
``SEC. 5493. APPLICATIONS.
``(a) In General.--Any State educational agency or local
educational agency desiring a grant under this subpart shall submit an
application to the Secretary at such time, in such manner, and
containing such information and assurances as the Secretary may
require.
``(b) Special Consideration.--The Secretary shall give special
consideration to applications describing programs that--
``(1) include intensive summer foreign language programs for
professional development;
``(2) link nonnative English speakers in the community with the
schools in order to promote two-way language learning;
``(3) promote the sequential study of a foreign language for
students, beginning in elementary schools;
``(4) make effective use of technology, such as computer-
assisted instruction, language laboratories, or distance learning,
to promote foreign language study;
``(5) promote innovative activities, such as foreign language
immersion, partial foreign language immersion, or content-based
instruction; and
``(6) are carried out through a consortium comprised of the
agency receiving the grant and an elementary school or secondary
school.
``SEC. 5494. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.
``(a) Incentive Payments.--From amounts made available under
section 5401 to carry out this subpart, the Secretary shall make an
incentive payment for each fiscal year to each public elementary school
that provides to students attending such school a program designed to
lead to communicative competency in a foreign language.
``(b) Amount.--The Secretary shall determine the amount of the
incentive payment under subsection (a) for each public elementary
school for each fiscal year on the basis of the number of students
participating in a program described in such subsection at such school
for such year compared to the total number of such students at all such
schools in the United States for such year.
``(c) Requirement.--The Secretary shall consider a program to be
designed to lead to communicative competency in a foreign language if
such program is comparable to a program that provides not less than 45
minutes of instruction in a foreign language for not fewer than 4 days
per week throughout an academic year.
``Subpart 10--Physical Education
``SEC. 5501. SHORT TITLE.
``This subpart may be cited as the `Carol M. White Physical
Education Program'.
``SEC. 5502. PURPOSE.
``The purpose of this subpart is to award grants and contracts to
initiate, expand, and improve physical education programs for all
kindergarten through 12th-grade students.
``SEC. 5503. PROGRAM AUTHORIZED.
``(a) Authorization.--The Secretary is authorized to award grants
to local educational agencies and community-based organizations (such
as Boys and Girls Clubs, Boy Scouts and Girl Scouts, and the Young
Men's Christian Organization (YMCA) and Young Women's Christian
Organization (YWCA)) to pay the Federal share of the costs of
initiating, expanding, and improving physical education programs
(including after-school programs) for kindergarten through 12th-grade
students by--
``(1) providing equipment and support to enable students to
participate actively in physical education activities; and
``(2) providing funds for staff and teacher training and
education.
``(b) Program Elements.--A physical education program funded under
this subpart may provide for one or more of the following:
``(1) Fitness education and assessment to help students
understand, improve, or maintain their physical well-being.
``(2) Instruction in a variety of motor skills and physical
activities designed to enhance the physical, mental, and social or
emotional development of every student.
``(3) Development of, and instruction in, cognitive concepts
about motor skill and physical fitness that support a lifelong
healthy lifestyle.
``(4) Opportunities to develop positive social and cooperative
skills through physical activity participation.
``(5) Instruction in healthy eating habits and good nutrition.
``(6) Opportunities for professional development for teachers
of physical education to stay abreast of the latest research,
issues, and trends in the field of physical education.
``(c) Special Rule.--For the purpose of this subpart,
extracurricular activities, such as team sports and Reserve Officers'
Training Corps (ROTC) program activities, shall not be considered as
part of the curriculum of a physical education program assisted under
this subpart.
``SEC. 5504. APPLICATIONS.
``(a) Submission.--Each local educational agency or community-based
organization desiring a grant or contract under this subpart shall
submit to the Secretary an application that contains a plan to
initiate, expand, or improve physical education programs in order to
make progress toward meeting State standards for physical education.
``(b) Private School and Home-Schooled Students.--An application
for funds under this subpart may provide for the participation, in the
activities funded under this subpart, of--
``(1) students enrolled in private nonprofit elementary schools
or secondary schools, and their parents and teachers; or
``(2) home-schooled students, and their parents and teachers.
``SEC. 5505. REQUIREMENTS.
``(a) Annual Report to the Secretary.--In order to continue
receiving funding after the first year of a multiyear grant or contract
under this subpart, the administrator of the grant or contract for the
local educational agency or community-based organization shall submit
to the Secretary an annual report that--
``(1) describes the activities conducted during the preceding
year; and
``(2) demonstrates that progress has been made toward meeting
State standards for physical education.
``(b) Administrative Expenses.--Not more than 5 percent of the
grant funds made available to a local educational agency or community-
based organization under this subpart for any fiscal year may be used
for administrative expenses.
``SEC. 5506. ADMINISTRATIVE PROVISIONS.
``(a) Federal Share.--The Federal share under this subpart may not
exceed--
``(1) 90 percent of the total cost of a program for the first
year for which the program receives assistance under this subpart;
and
``(2) 75 percent of such cost for the second and each
subsequent such year.
``(b) Proportionality.--To the extent practicable, the Secretary
shall ensure that grants awarded under this subpart shall be equitably
distributed among local educational agencies and community-based
organizations serving urban and rural areas.
``(c) Report to Congress.--Not later than June 1, 2003, the
Secretary shall submit a report to Congress that--
``(1) describes the programs assisted under this subpart;
``(2) documents the success of such programs in improving
physical fitness; and
``(3) makes such recommendations as the Secretary determines
appropriate for the continuation and improvement of the programs
assisted under this subpart.
``(d) Availability of Funds.--Amounts made available to the
Secretary to carry out this subpart shall remain available until
expended.
``SEC. 5507. SUPPLEMENT, NOT SUPPLANT.
``Funds made available under this subpart shall be used to
supplement, and not supplant, any other Federal, State, or local funds
available for physical education activities.
``Subpart 11--Community Technology Centers
``SEC. 5511. PURPOSE AND PROGRAM AUTHORIZATION.
``(a) Purpose.--It is the purpose of this subpart to assist
eligible applicants--
``(1) to create or expand community technology centers that
will provide disadvantaged residents of economically distressed
urban and rural communities with access to information technology
and related training; and
``(2) to provide technical assistance and support to community
technology centers.
``(b) Program Authorization.--The Secretary is authorized, in
conjunction with the Office of Educational Technology, to award grants,
contracts, or cooperative agreements, on a competitive basis, for a
period of not more than 3 years, to eligible applicants in order to
assist such applicants in--
``(1) creating or expanding community technology centers; or
``(2) providing technical assistance and support to community
technology centers.
``(3) Service of americorps participants.--The Secretary may
collaborate with the Chief Executive Officer of the Corporation for
National and Community Service on the use in community technology
centers of participants in National Service programs carried out
under subtitle C of title I of the National and Community Service
Act of 1990 (42 U.S.C. 12571 et seq.).
``SEC. 5512. ELIGIBILITY AND APPLICATION REQUIREMENTS.
``(a) Eligible Applicants.--In order to be eligible to receive an
award under this subpart, an applicant shall--
``(1) be an entity (such as a foundation, museum, library, for-
profit business, public or private nonprofit organization, or
community-based organization), an institution of higher education,
a State educational agency, a local education agency, or a
consortium of such entities, institutions, or agencies; and
``(2) have the capacity to significantly expand access to
computers and related services for disadvantaged residents of
economically distressed urban and rural communities (who would
otherwise be denied such access).
``(b) Application Requirements.--In order to receive an award under
this subpart, an eligible applicant shall submit an application to the
Secretary at such time, and containing such information, as the
Secretary may require. The application shall include each of the
following:
``(1) A description of the proposed project, including a
description of the magnitude of the need for the services and how
the project would expand access to information technology and
related services to disadvantaged residents of an economically
distressed urban or rural community.
``(2) A demonstration of--
``(A) the commitment, including the financial commitment,
of entities (such as institutions, organizations, business and
other groups in the community) that will provide support for
the creation, expansion, and continuation of the proposed
project; and
``(B) the extent to which the proposed project coordinates
with other appropriate agencies, efforts, and organizations
providing services to disadvantaged residents of an
economically distressed urban or rural community.
``(3) A description of how the proposed project would be
sustained once the Federal funds awarded under this subpart end.
``(4) A plan for the evaluation of the program, which shall
include benchmarks to monitor progress toward specific project
objectives.
``(c) Matching Requirements.--The Federal share of the cost of any
project funded under this subpart shall not exceed 50 percent. The non-
Federal share of such project may be in cash or in kind, fairly
evaluated, including services.
``SEC. 5513. USES OF FUNDS.
``(a) Required Uses.--A recipient shall use funds under this
subpart for--
``(1) creating or expanding community technology centers that
expand access to information technology and related training for
disadvantaged residents of distressed urban or rural communities;
and
``(2) evaluating the effectiveness of the project.
``(b) Permissible Uses.--A recipient may use funds under this
subpart for activities, described in its application, that carry out
the purposes of this subpart, such as--
``(1) supporting a center coordinator, and staff, to supervise
instruction and build community partnerships;
``(2) acquiring equipment, networking capabilities, and
infrastructure to carry out the project; and
``(3) developing and providing services and activities for
community residents that provide access to computers, information
technology, and the use of such technology in support of preschool
preparation, academic achievement, educational development, and
workforce development, such as the following:
``(A) After-school activities in which children and youths
use software that provides academic enrichment and assistance
with homework, develop their technical skills, explore the
Internet, and participate in multimedia activities, including
web page design and creation.
``(B) Adult education and family literacy activities
through technology and the Internet, including--
``(i) General Education Development, Language
Instruction Educational Programs, and adult basic education
classes or programs;
``(ii) introduction to computers;
``(iii) intergenerational activities; and
``(iv) educational development opportunities.
``(C) Career development and job preparation activities,
such as--
``(i) training in basic and advanced computer skills;
``(ii) resume writing workshops; and
``(iii) access to databases of employment
opportunities, career information, and other online
materials.
``(D) Small business activities, such as--
``(i) computer-based training for basic entrepreneurial
skills and electronic commerce; and
``(ii) access to information on business start-up
programs that is available online, or from other sources.
``(E) Activities that provide home access to computers and
technology, such as assistance and services to promote the
acquisition, installation, and use of information technology in
the home through low-cost solutions such as networked
computers, web-based television devices, and other technology.
``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange
Programs for Alaska Natives, Native Hawaiians, and Their Historical
Whaling and Trading Partners in Massachusetts
``SEC. 5521. SHORT TITLE.
``This subpart may be cited as the `Alaska Native and Native
Hawaiian Education Through Cultural and Historical Organizations Act'.
``SEC. 5522. FINDINGS AND PURPOSES.
``(a) Findings.--Congress finds the following:
``(1) Alaska Natives and Native Hawaiians have been linked for
over 200 years to the coastal towns of Salem, Massachusetts, and
New Bedford, Massachusetts, through the China trade from Salem and
whaling voyages from New Bedford.
``(2) Nineteenth-century trading ships sailed from Salem,
Massachusetts, around Cape Horn of South America, and up the
Northwest coast of the United States to Alaska, where their crews
traded with Alaska Native people for furs, and then went on to
Hawaii to trade for sandalwood with Native Hawaiians before going
on to China.
``(3) During the 19th century, over 2,000 whaling voyages
sailed out of New Bedford, Massachusetts to the Arctic region of
Alaska, and joined Alaska Natives from Barrow, Alaska and other
areas in the Arctic region in subsistence whaling activities.
``(4) Many New Bedford whaling voyages continued on to Hawaii,
where they joined Native Hawaiians from the neighboring islands.
``(5) From those commercial and whaling voyages, a rich
cultural exchange and strong trading relationships developed among
the three peoples involved.
``(6) In the past decades, awareness of the historical trading,
cultural, and whaling links has faded among Alaska Natives, Native
Hawaiians, and the people of the continental United States.
``(7) In 2000, the Alaska Native Heritage Center in Alaska, the
Bishop Museum in Hawaii, and the Peabody-Essex Museum in
Massachusetts initiated the New Trade Winds project to use 21st-
century technology, including the Internet, to educate students and
their parents about historic and contemporary cultural and trading
ties that continue to link the diverse cultures of the peoples
involved.
``(8) The New Bedford Whaling Museum, in partnership with the
New Bedford Whaling National Historical Park, has developed a
cultural exchange and educational program with the Inupiat Heritage
Center in Barrow, Alaska to bring together the children, parents,
and elders from the Arctic region of Alaska with children and
families of Massachusetts to learn about their historical ties and
about each other's contemporary cultures.
``(9) Within the fast-growing cultural sector, meaningful
educational and career opportunities based on traditional
relationships exist for Alaska Natives, Native Hawaiians, and low-
income youth in Massachusetts.
``(10) Cultural institutions can provide practical, culturally
relevant, education-related internship and apprentice programs,
such as the Museum Action Corps at the Peabody-Essex Museum and
similar programs at the New Bedford Oceanarium and other
institutions, to prepare youths and their families for careers in
the cultural sector.
``(11) The resources of the institutions described in
paragraphs (7) and (8) provide unique opportunities for
illustrating and interpreting the contributions of Alaska Natives,
Native Hawaiians, the whaling industry, and the China trade to the
economic, social, and environmental history of the United States,
for educating students and their parents, and for providing
opportunities for internships and apprenticeships leading to
careers with cultural institutions.
``(b) Purposes.--The purposes of this subpart are the following:
``(1) To authorize and develop innovative culturally-based
educational programs and cultural exchanges to assist Alaska
Natives, Native Hawaiians, and children and families of
Massachusetts linked by history and tradition to Alaska and Hawaii
to learn about shared culture and traditions.
``(2) To authorize and develop internship and apprentice
programs to assist Alaska Natives, Native Hawaiians, and children
and families of Massachusetts linked by history and tradition with
Alaska and Hawaii to prepare for careers with cultural
institutions.
``(3) To supplement programs and authorities in the area of
education to further the objectives of this subpart.
``SEC. 5523. PROGRAM AUTHORIZATION.
``(a) Grants and Contracts.--In order to carry out programs that
fulfill the purposes of this subpart, the Secretary is authorized to
make grants to, or enter into contracts with, the following:
``(1) The Alaska Native Heritage Center in Anchorage, Alaska.
``(2) The Inupiat Heritage Center in Barrow, Alaska.
``(3) The Bishop Museum in Hawaii.
``(4) The Peabody-Essex Museum in Salem, Massachusetts.
``(5) The New Bedford Whaling Museum and the New Bedford
Oceanarium in New Bedford, Massachusetts.
``(6) Other Alaska Native and Native Hawaiian cultural and
educational organizations.
``(7) Cultural and educational organizations with experience in
developing or operating programs that illustrate and interpret the
contributions of Alaska Natives, Native Hawaiians, the whaling
industry, and the China trade to the economic, social, and
environmental history of the United States.
``(8) Consortia of the organizations and entities described in
this subsection.
``(b) Uses of Funds.--Activities provided through programs carried
out under this subpart may include one or more of the following:
``(1) Development and implementation of educational programs to
increase understanding of cultural diversity and multicultural
communication among Alaska Natives, Native Hawaiians, and the
people of the continental United States, based on historic patterns
of trading and commerce.
``(2) Development and implementation of programs using modern
technology, including the Internet, to educate students, their
parents, and teachers about historic and contemporary cultural and
trading ties that continue to link the diverse cultures of Alaska
Natives, Native Hawaiians, and the people of Massachusetts.
``(3) Cultural exchanges of elders, students, parents, and
teachers among Alaska Natives, Native Hawaiians, and the people of
Massachusetts to increase awareness of diverse cultures among each
group.
``(4) Sharing of collections among cultural institutions
designed to increase awareness of diverse cultures and links among
them.
``(5) Development and implementation of internship and
apprentice programs in cultural institutions to train Alaska
Natives, Native Hawaiians, and low-income students in Massachusetts
for careers with cultural institutions.
``(6) Other activities, consistent with the purposes of this
subpart, to meet the educational needs of Alaska Natives, Native
Hawaiians, and students and their parents in Massachusetts.
``SEC. 5524. ADMINISTRATIVE PROVISIONS.
``(a) Application Required.--No grant may be made under this
subpart, and no contract may be entered into under this subpart, unless
the entity seeking the grant or contract submits an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may determine to be necessary to carry out the
provisions of this subpart.
``(b) Local Educational Agency Coordination.--Each applicant for a
grant or contract under this subpart shall inform each local
educational agency serving students who will participate in the program
to be carried out under the grant or contract about the application.
``SEC. 5525. AVAILABILITY OF FUNDS.
``If sufficient funds are made available under section 5401 to
carry out this subpart for a fiscal year, the Secretary shall make
available, to support activities described in section 5523(b), the
following amounts:
``(1) Not less than $2,000,000 each to--
``(A) the New Bedford Whaling Museum, in partnership with
the New Bedford Oceanarium, in Massachusetts; and
``(B) the Inupiat Heritage Center in Alaska.
``(2) For the New Trade Winds project, not less than $1,000,000
each to--
``(A) the Alaska Native Heritage Center in Alaska;
``(B) the Bishop Museum in Hawaii; and
``(C) the Peabody-Essex Museum in Massachusetts.
``(3) For internship and apprenticeship programs (including the
Museum Action Corps of the Peabody-Essex Museum), not less than
$1,000,000 each to--
``(A) the Alaska Native Heritage Center in Alaska;
``(B) the Bishop Museum in Hawaii; and
``(C) the Peabody-Essex Museum in Massachusetts.
``SEC. 5526. DEFINITIONS.
``In this subpart:
``(1) Alaska native.--The term `Alaska Native' has the meaning
given that term in section 7306.
``(2) Native hawaiian.--The term `Native Hawaiian' has the
meaning given that term in section 7207.
``Subpart 13--Excellence in Economic Education
``SEC. 5531. SHORT TITLE.
``This subpart may be cited as the `Excellence in Economic
Education Act of 2001'.
``SEC. 5532. PURPOSE AND GOALS.
``(a) Purpose.--The purpose of this subpart is to promote economic
and financial literacy among all students in kindergarten through grade
12 by awarding a competitive grant to a national nonprofit educational
organization that has as its primary purpose the improvement of the
quality of student understanding of personal finance and economics.
``(b) Objectives.--The objectives of this subpart are the
following:
``(1) To increase students' knowledge of, and achievement in,
economics to enable the students to become more productive and
informed citizens.
``(2) To strengthen teachers' understanding of, and competency
in, economics to enable the teachers to increase student mastery of
economic principles and the practical application of those
principles.
``(3) To encourage economic education research and development,
to disseminate effective instructional materials, and to promote
replication of best practices and exemplary programs that foster
economic literacy.
``(4) To assist States in measuring the impact of education in
economics.
``(5) To leverage and expand private and public support for
economic education partnerships at national, State, and local
levels.
``SEC. 5533. GRANT PROGRAM AUTHORIZED.
``(a) Authorization.--The Secretary is authorized to award a
competitive grant to a national nonprofit educational organization that
has as its primary purpose the improvement of the quality of student
understanding of personal finance and economics through effective
teaching of economics in the Nation's classrooms (referred to in this
subpart as the `grantee').
``(b) Uses of Funds.--
``(1) Direct activities.--The grantee shall use 25 percent of
the funds made available through the grant for a fiscal year--
``(A) to strengthen and expand the grantee's relationships
with State and local personal finance, entrepreneurial, and
economic education organizations;
``(B) to support and promote training of teachers who teach
a grade from kindergarten through grade 12 regarding economics,
including the dissemination of information on effective
practices and research findings regarding the teaching of
economics;
``(C) to support research on effective teaching practices
and the development of assessment instruments to document
student understanding of personal finance and economics; and
``(D) to develop and disseminate appropriate materials to
foster economic literacy.
``(2) Subgrants.--The grantee shall use 75 percent of the funds
made available through the grant for a fiscal year to award
subgrants to State educational agencies or local educational
agencies, and State or local economic, personal finance, or
entrepreneurial education organizations (referred to in this
section as the `recipient'). The grantee shall award such a
subgrant to pay for the Federal share of the cost of enabling the
recipient to work in partnership with one or more of the entities
described in paragraph (3) for one or more of the following
purposes:
``(A) Collaboratively establishing and conducting teacher
training programs that use effective and innovative approaches
to the teaching of economics, personal finance, and
entrepreneurship.
``(B) Providing resources to school districts that desire
to incorporate economics and personal finance into the
curricula of the schools in the districts.
``(C) Conducting evaluations of the impact of economic and
financial literacy education on students.
``(D) Conducting economic and financial literacy education
research.
``(E) Creating and conducting school-based student
activities to promote consumer, economic, and personal finance
education (such as saving, investing, and entrepreneurial
education) and to encourage awareness and student academic
achievement in economics.
``(F) Encouraging replication of best practices to promote
economic and financial literacy.
``(3) Partnership entities.--The entities described in this
paragraph are the following:
``(A) A private sector entity.
``(B) A State educational agency.
``(C) A local educational agency.
``(D) An institution of higher education.
``(E) An organization promoting economic development.
``(F) An organization promoting educational excellence.
``(G) An organization promoting personal finance or
entrepreneurial education.
``SEC. 5534. APPLICATIONS.
``(a) Grantee Applications.--To be eligible to receive a grant
under this subpart, the grantee shall submit to the Secretary an
application at such time, in such manner, and accompanied by such
information as the Secretary may require.
``(b) Recipient Applications.--
``(1) Submission.--To be eligible to receive a subgrant under
this section, a recipient shall submit an application to the
grantee at such time, in such manner, and accompanied by such
information as the grantee may require.
``(2) Review.--The grantee shall invite the individuals
described in paragraph (3) to review all applications from
recipients for a subgrant under this section and to make
recommendations to the grantee regarding the approval of the
applications.
``(3) Reviewers.--The individuals described in this paragraph
are the following:
``(i) Leaders in the fields of economics and education.
``(ii) Such other individuals as the grantee determines
to be necessary, especially members of the State and local
business, banking, and finance communities.
``SEC. 5535. REQUIREMENTS.
``(a) Administrative Costs.--The grantee and each recipient
receiving a subgrant under this subpart for a fiscal year may use not
more than 5 percent of the funds made available through the grant or
subgrant for administrative costs.
``(b) Teacher Training Programs.--In carrying out the teacher
training programs described in section 5533(b)(2)(A), a recipient
shall--
``(1) train teachers who teach a grade from kindergarten
through grade 12; and
``(2) encourage teachers from disciplines other than economics
and financial literacy to participate in such teacher training
programs, if the training will promote the economic and financial
literacy of those teachers' students.
``(c) Involvement of Business Community.--In carrying out the
activities assisted under this subpart, the grantee and recipients are
strongly encouraged to--
``(1) include interactions with the local business community to
the fullest extent possible to reinforce the connection between
economic and financial literacy and economic development; and
``(2) work with private businesses to obtain matching
contributions for Federal funds and assist recipients in working
toward self-sufficiency.
``(d) Additional Requirements and Technical Assistance.--The
grantee shall--
``(1) meet such other requirements as the Secretary determines
to be necessary to assure compliance with this section; and
``(2) receive from the Secretary such technical assistance as
may be necessary to carry out this section.
``SEC. 5536. ADMINISTRATIVE PROVISIONS.
``(a) Federal Share.--The Federal share of the cost described in
section 5533(b)(2) shall be 50 percent.
``(b) Payment of Non-Federal Share.--The non-Federal share may be
paid in cash or in kind (fairly evaluated, including plant, equipment,
or services).
``(c) Reports to Congress.--Not later than 2 years after the date
funds are first made available to carry out this subpart, and every 2
years thereafter, the Secretary shall submit to the appropriate
committees of Congress a report regarding activities assisted under
this subpart.
``SEC. 5537. SUPPLEMENT, NOT SUPPLANT.
``Funds made available to carry out this subpart shall be used to
supplement, and not supplant, other Federal, State, and local funds
expended for the purpose described in section 5532(a).
``Subpart 14--Grants to Improve the Mental Health of Children
``SEC. 5541. GRANTS FOR THE INTEGRATION OF SCHOOLS AND MENTAL HEALTH
SYSTEMS.
``(a) Authorization.--The Secretary is authorized to award grants
to, or enter into contracts or cooperative agreements with, State
educational agencies, local educational agencies, or Indian tribes, for
the purpose of increasing student access to quality mental health care
by developing innovative programs to link local school systems with the
local mental health system.
``(b) Duration.--With respect to a grant, contract, or cooperative
agreement awarded or entered into under this section, the period during
which payments under such grant, contract or agreement are made to the
recipient may not exceed 5 years.
``(c) Use of Funds.--A State educational agency, local educational
agency, or Indian tribe that receives a grant, contract, or cooperative
agreement under this section shall use amounts made available through
such grant, contract, or cooperative agreement for the following:
``(1) To enhance, improve, or develop collaborative efforts
between school-based service systems and mental health service
systems to provide, enhance, or improve prevention, diagnosis, and
treatment services to students.
``(2) To enhance the availability of crisis intervention
services, appropriate referrals for students potentially in need of
mental health services, and ongoing mental health services.
``(3) To provide training for the school personnel and mental
health professionals who will participate in the program carried
out under this section.
``(4) To provide technical assistance and consultation to
school systems and mental health agencies and families
participating in the program carried out under this section.
``(5) To provide linguistically appropriate and culturally
competent services.
``(6) To evaluate the effectiveness of the program carried out
under this section in increasing student access to quality mental
health services, and make recommendations to the Secretary about
sustainability of the program.
``(d) Applications.--To be eligible to receive a grant, contract,
or cooperative agreement under this section, a State educational
agency, local educational agency, or Indian tribe shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may reasonably require.
The application shall include each of the following:
``(1) A description of the program to be funded under the
grant, contract, or cooperative agreement.
``(2) A description of how such program will increase access to
quality mental health services for students.
``(3) A description of how the applicant will establish a
crisis intervention program to provide immediate mental health
services to the school community when necessary.
``(4) An assurance that--
``(A) persons providing services under the grant, contract,
or cooperative agreement are adequately trained to provide such
services;
``(B) the services will be provided in accordance with
subsection (c);
``(C) teachers, principal administrators, and other school
personnel are aware of the program; and
``(D) parents of students participating in services under
this section will be involved in the design and implementation
of the services.
``(5) An explanation of how the applicant will support and
integrate existing school-based services with the program to
provide appropriate mental health services for students.
``(6) An explanation of how the applicant will establish a
program that will support students and the school in maintaining an
environment conducive to learning.
``(e) Interagency Agreements.--
``(1) Designation of lead agency.--The recipient of each grant,
contract, or cooperative agreement shall designate a lead agency to
direct the establishment of an interagency agreement among local
educational agencies, juvenile justice authorities, mental health
agencies, and other relevant entities in the State, in
collaboration with local entities and parents and guardians of
students.
``(2) Contents.--The interagency agreement shall ensure the
provision of the services described in subsection (c), specifying
with respect to each agency, authority, or entity--
``(A) the financial responsibility for the services;
``(B) the conditions and terms of responsibility for the
services, including quality, accountability, and coordination
of the services; and
``(C) the conditions and terms of reimbursement among the
agencies, authorities, or entities that are parties to the
interagency agreement, including procedures for dispute
resolution.
``(f) Evaluation.--The Secretary shall evaluate each program
carried out by a State educational agency, local educational agency, or
Indian tribe under this section and shall disseminate the findings with
respect to each such evaluation to appropriate public and private
entities.
``(g) Distribution of Awards.--The Secretary shall ensure that
grants, contracts, and cooperative agreements awarded or entered into
under this section are equitably distributed among the geographical
regions of the United States and among urban, suburban, and rural
populations.
``(h) Rule of Construction.--Nothing in Federal law shall be
construed--
``(1) to prohibit an entity involved with a program carried out
under this section from reporting a crime that is committed by a
student to appropriate authorities; or
``(2) to prevent State law enforcement and judicial authorities
from exercising their responsibilities with regard to the
application of Federal and State law to crimes committed by a
student.
``(i) Supplement, Not Supplant.--Any services provided through
programs carried out under this section must supplement, and not
supplant, existing mental health services, including any services
required to be provided under the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.).
``SEC. 5542. PROMOTION OF SCHOOL READINESS THROUGH EARLY CHILDHOOD
EMOTIONAL AND SOCIAL DEVELOPMENT.
``(a) Authorization.--The Secretary, in consultation with the
Secretary of Health and Human Services, may award grants (to be known
as `Foundations for Learning Grants') to local educational agencies,
local councils, community-based organizations, and other public or
nonprofit private entities to assist eligible children to become ready
for school.
``(b) Applications.--To be eligible to receive a grant under this
section, a local educational agency, local council, community-based
organization, or other public or nonprofit private entity, or a
combination of such entities, shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require. The application
shall include each of the following:
``(1) A description of the population that the applicant
intends to serve and the types of services to be provided under the
grant.
``(2) A description of the manner in which services under the
grant will be coordinated with existing similar services provided
by public and nonprofit private entities within the State.
``(3) An assurance that--
``(A) services under the grant shall be provided by or
under the supervision of qualified professionals with expertise
in early childhood development;
``(B) such services shall be culturally competent;
``(C) such services shall be provided in accordance with
subsection (c);
``(D) funds received under this section shall be used to
supplement, and not supplant, non-Federal funds; and
``(E) parents of students participating in services under
this section will be involved in the design and implementation
of the services.
``(c) Uses of Funds.--A local educational agency, local council,
community-based organization, or other public or nonprofit private
entity that receives funds under this section may use such funds to
benefit eligible children, for one or more of the following:
``(1) To deliver services to eligible children and their
families that foster eligible children's emotional, behavioral, and
social development and take into consideration the characteristics
described in subsection (f)(1).
``(2) To coordinate and facilitate access by eligible children
and their families to the services available through community
resources, including mental health, physical health, substance
abuse, educational, domestic violence prevention, child welfare,
and social services.
``(3) To provide ancillary services such as transportation or
child care in order to facilitate the delivery of any other
services or activities authorized by this section.
``(4) To develop or enhance early childhood community
partnerships and build toward a community system of care that
brings together child-serving agencies or organizations to provide
individualized supports for eligible children and their families.
``(5) To evaluate the success of strategies and services
provided pursuant to this section in promoting young children's
successful entry to school and to maintain data systems required
for effective evaluations.
``(6) To pay for the expenses of administering the activities
authorized under this section, including assessment of children's
eligibility for services.
``(d) Limitations.--
``(1) Services not otherwise funded.--A local educational
agency, local council, community-based organization, or other
public or nonprofit private entity may use funds under this section
only to pay for services that cannot be paid for using other
Federal, State, or local public resources or through private
insurance.
``(2) Administrative expenses.--A grantee may not use more than
3 percent of the amount of the grant to pay the administrative
expenses described in subsection (c)(6).
``(e) Evaluations.--The Secretary shall directly evaluate, or enter
into a contract for an outside evaluation of, each program carried out
under this section and shall disseminate the findings with respect to
such evaluation to appropriate public and private entities.
``(f) Definitions.--In this section:
``(1) Eligible child.--The term `eligible child' means a child
who has not attained the age of 7 years, and to whom two or more of
the following characteristics apply:
``(A) The child has been abused, maltreated, or neglected.
``(B) The child has been exposed to violence.
``(C) The child has been homeless.
``(D) The child has been removed from child care, Head
Start, or preschool for behavioral reasons or is at risk of
being so removed.
``(E) The child has been exposed to parental depression or
other mental illness.
``(F) The family income with respect to the child is below
200 percent of the poverty line.
``(G) The child has been exposed to parental substance
abuse.
``(H) The child has had early behavioral and peer
relationship problems.
``(I) The child had a low birth weight.
``(J) The child has a cognitive deficit or developmental
disability.
``(2) Local council.--The term `local council' means a council
that is established or designated by a local government entity,
Indian tribe, regional corporation, or native Hawaiian entity, as
appropriate, which is composed of representatives of local agencies
directly affected by early learning programs, parents, key
community leaders, and other individuals concerned with early
learning issues in the locality, such as elementary education,
child care resource and referral services, early learning
opportunities, child care, and health services.
``(3) Provider of early childhood services.--The term `provider
of early childhood services' means a public or private entity that
has regular contact with young children, including child welfare
agencies, child care providers, Head Start and Early Head Start
providers, preschools, kindergartens, libraries, mental health
professionals, family courts, homeless shelters, and primary care
providers.
``Subpart 15--Arts in Education
``SEC. 5551. ASSISTANCE FOR ARTS EDUCATION.
``(a) Purposes.--The purposes of this subpart are the following:
``(1) To support systemic education reform by strengthening
arts education as an integral part of the elementary school and
secondary school curriculum.
``(2) To help ensure that all students meet challenging State
academic content standards and challenging State student academic
achievement standards in the arts.
``(3) To support the national effort to enable all students to
demonstrate competence in the arts.
``(b) Authority.--The Secretary is authorized to make grants to, or
enter into contracts or cooperative agreements with, eligible entities
described in subsection (c).
``(c) Eligible Entities.--The Secretary may make assistance
available under subsection (b) to each of the following eligible
entities:
``(1) State educational agencies.
``(2) Local educational agencies.
``(3) Institutions of higher education.
``(4) Museums or other cultural institutions.
``(5) Any other public or private agencies, institutions, or
organizations.
``(d) Use of Funds.--Assistance made available under this subpart
may be used for any of the following:
``(1) Research on arts education.
``(2) Planning, developing, acquiring, expanding, improving, or
disseminating information about model school-based arts education
programs.
``(3) The development of model State arts education assessments
based on State academic achievement standards.
``(4) The development and implementation of curriculum
frameworks for arts education.
``(5) The development of model inservice professional
development programs for arts educators and other instructional
staff.
``(6) Supporting collaborative activities with Federal agencies
or institutions involved in arts education, arts educators, and
organizations representing the arts, including State and local arts
agencies involved in arts education.
``(7) Supporting model projects and programs in the performing
arts for children and youth through arrangements made with the John
F. Kennedy Center for the Performing Arts.
``(8) Supporting model projects and programs by Very Special
Arts which assure the participation in mainstream settings in arts
and education programs of individuals with disabilities.
``(9) Supporting model projects and programs to integrate arts
education into the regular elementary school and secondary school
curriculum.
``(10) Other activities that further the purposes of this
subpart.
``(e) Special Rule.--If the amount made available to the Secretary
to carry out this subpart for any fiscal year is $15,000,000 or less,
then such amount shall only be available to carry out the activities
described in paragraphs (7) and (8) of subsection (d).
``(f) Conditions.--As conditions of receiving assistance made
available under this subpart, the Secretary shall require each entity
receiving such assistance--
``(1) to coordinate, to the extent practicable, each project or
program carried out with such assistance with appropriate
activities of public or private cultural agencies, institutions,
and organizations, including museums, arts education associations,
libraries, and theaters; and
``(2) to use such assistance only to supplement, and not to
supplant, any other assistance or funds made available from non-
Federal sources for the activities assisted under this subpart.
``(g) Consultation.--In carrying out this subpart, the Secretary
shall consult with Federal agencies or institutions, arts educators
(including professional arts education associations), and organizations
representing the arts (including State and local arts agencies involved
in arts education).
``Subpart 16--Parental Assistance and Local Family Information Centers
``SEC. 5561. PURPOSES.
``The purposes of this subpart are the following:
``(1) To provide leadership, technical assistance, and
financial support to nonprofit organizations (including statewide
nonprofit organizations) and local educational agencies to help the
organizations and agencies implement successful and effective
parental involvement policies, programs, and activities that lead
to improvements in student academic achievement.
``(2) To strengthen partnerships among parents (including
parents of children from birth through age 5), teachers,
principals, administrators, and other school personnel in meeting
the educational needs of children.
``(3) To develop and strengthen the relationship between
parents and their children's school.
``(4) To further the developmental progress of children
assisted under this subpart.
``(5) To coordinate activities funded under this subpart with
parental involvement initiatives funded under section 1118 and
other provisions of this Act.
``(6) To provide a comprehensive approach to improving student
learning, through coordination and integration of Federal, State,
and local services and programs.
``SEC. 5562. GRANTS AUTHORIZED.
``(a) Parental Information and Resource Centers.--The Secretary is
authorized to award grants in each fiscal year to nonprofit
organizations (including statewide nonprofit organizations), and
consortia of such organizations and local educational agencies, to
establish school-linked or school-based parental information and
resource centers that provide comprehensive training, information, and
support to--
``(1) parents of children enrolled in elementary schools and
secondary schools;
``(2) individuals who work with the parents of children
enrolled in elementary schools and secondary schools;
``(3) State educational agencies, local educational agencies,
schools, organizations that support family-school partnerships
(such as parent-teacher associations and Parents as Teachers
organizations), and other organizations that carry out parent
education and family involvement programs; and
``(4) parents of children from birth through age 5.
``(b) Geographic Distribution.--In awarding grants under this
subpart, the Secretary shall, to the extent practicable, ensure that
such grants are distributed in all geographic regions of the United
States.
``SEC. 5563. APPLICATIONS.
``(a) Submission.--Each nonprofit organization (including a
statewide nonprofit organization), or a consortia of such an
organization and a local educational agency, that desires a grant under
this subpart shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary
may require.
``(b) Contents.--Each application submitted under subsection (a),
at a minimum, shall include assurances that the organization or
consortium will--
``(1)(A) be governed by a board of directors the membership of
which includes parents; or
``(B) be an organization or consortium that represents the
interests of parents;
``(2) establish a special advisory committee the membership of
which includes--
``(A) parents of children enrolled in elementary schools
and secondary schools, who shall constitute a majority of the
members of the special advisory committee;
``(B) representatives of education professionals with
expertise in improving services for disadvantaged children; and
``(C) representatives of local elementary schools and
secondary schools, including students and representatives from
local youth organizations;
``(3) use at least 50 percent of the funds received under this
subpart in each fiscal year to serve areas with high concentrations
of low-income families, in order to serve parents who are severely
educationally or economically disadvantaged;
``(4) operate a center of sufficient size, scope, and quality
to ensure that the center is adequate to serve the parents in the
area;
``(5) serve both urban and rural areas;
``(6) design a center that meets the unique training,
information, and support needs of parents of children enrolled in
elementary schools and secondary schools, particularly such parents
who are educationally or economically disadvantaged;
``(7) demonstrate the capacity and expertise to conduct the
effective training, information, and support activities for which
assistance is sought;
``(8) network with--
``(A) local educational agencies and schools;
``(B) parents of children enrolled in elementary schools
and secondary schools;
``(C) parent training and information centers assisted
under section 682 of the Individuals with Disabilities
Education Act;
``(D) clearinghouses; and
``(E) other organizations and agencies;
``(9) focus on serving parents of children enrolled in
elementary schools and secondary schools who are parents of low-
income, minority, and limited English proficient children;
``(10) use at least 30 percent of the funds received under this
subpart in each fiscal year to establish, expand, or operate
Parents as Teachers programs, Home Instruction for Preschool
Youngsters programs, or other early childhood parent education
programs;
``(11) provide assistance to parents in areas such as
understanding State and local standards and measures of student and
school academic achievement;
``(12) work with State educational agencies and local
educational agencies to determine parental needs and the best means
for delivery of services;
``(13) identify and coordinate Federal, State, and local
services and programs that support improved student learning,
including programs supported under this Act, violence prevention
programs, nutrition programs, housing programs, Head Start
programs, adult education, and job training; and
``(14) work with and foster partnerships with other agencies
that provide programs and deliver services described in paragraph
(13) to make such programs and services more accessible to children
and families.
``SEC. 5564. USES OF FUNDS.
``(a) In General.--Grant funds received under this subpart shall be
used for one or more of the following:
``(1) To assist parents in participating effectively in their
children's education and to help their children meet State and
local standards, such as assisting parents--
``(A) to engage in activities that will improve student
academic achievement, including understanding the
accountability systems in place within their State educational
agency and local educational agency and understanding their
children's educational academic achievement in comparison to
State and local standards;
``(B) to provide follow-up support for their children's
educational achievement;
``(C) to communicate effectively with teachers, principals,
counselors, administrators, and other school personnel;
``(D) to become active participants in the development,
implementation, and review of school-parent compacts, parent
involvement policies, and school planning and improvement;
``(E) to participate in the design and provision of
assistance to students who are not making adequate academic
progress;
``(F) to participate in State and local decisionmaking; and
``(G) to train other parents (such as training related to
Parents as Teachers activities).
``(2) To obtain information about the range of options,
programs, services, and resources available at the national, State,
and local levels to assist parents and school personnel who work
with parents.
``(3) To help the parents learn and use the technology applied
in their children's education.
``(4) To plan, implement, and fund activities for parents that
coordinate the education of their children with other Federal,
State, and local services and programs that serve their children or
their families.
``(5) To provide support for State or local educational
personnel, if the participation of such personnel will further the
activities assisted under the grant.
``(6) To coordinate and integrate early childhood programs with
school-age programs.
``(b) Permissive Activities.--Grant funds received under this
subpart may be used to assist schools with activities including one or
more of the following:
``(1) Developing and implementing the schools' plans or
activities under sections 1118 and 1119.
``(2) Developing and implementing school improvement plans,
including addressing problems that develop in the implementation of
the schools' plans or activities under sections 1118 and 1119.
``(3) Providing information about assessment and individual
results to parents in a manner and a language the family can
understand.
``(4) Coordinating the efforts of Federal, State, and local
parent education and family involvement initiatives.
``(5) Providing training, information, and support to--
``(A) State educational agencies;
``(B) local educational agencies and schools, especially
low-performing local educational agencies and schools; and
``(C) organizations that support family-school
partnerships.
``SEC. 5565. ADMINISTRATIVE PROVISIONS.
``(a) Matching Funds for Grant Renewal.--For each fiscal year after
the first fiscal year in which an organization or consortium receives
assistance under this subpart, the organization or consortium shall
demonstrate in the application submitted for such fiscal year, that a
portion of the services provided by the organization or consortium is
supported through non-Federal contributions, which contributions may be
in cash or in kind.
``(b) Submission of Information.--
``(1) In general.--Each organization or consortium receiving
assistance under this subpart shall submit to the Secretary, on an
annual basis, information concerning the parental information and
resource centers assisted under this subpart, including the
following information:
``(A) The number of parents (including the number of
minority and limited English proficient parents) who receive
information and training.
``(B) The types and modes of training, information, and
support provided under this subpart.
``(C) The strategies used to reach and serve parents of
minority and limited English proficient children, parents with
limited literacy skills, and other parents in need of the
services provided under this subpart.
``(D) The parental involvement policies and practices used
by the center and an evaluation of whether such policies and
practices are effective in improving home-school communication,
student academic achievement, student and school academic
achievement, and parental involvement in school planning,
review, and improvement.
``(E) The effectiveness of the activities that local
educational agencies and schools are carrying out, with regard
to parental involvement and other activities assisted under
this Act, that lead to improved student academic achievement
and improved student and school academic achievement.
``(2) Dissemination.--The Secretary shall disseminate annually
to Congress and the public the information that each organization
or consortium submits under paragraph (1).
``(c) Technical Assistance.--The Secretary shall provide technical
assistance, by grant or contract, for the establishment, development,
and coordination of parent training, information, and support programs
and parental information and resource centers.
``(d) Rule of Construction.--Nothing in this subpart shall be
construed to prohibit a parental information and resource center from--
``(1) having its employees or agents meet with a parent at a
site that is not on school grounds; or
``(2) working with another agency that serves children.
``(e) Parental Rights.--Notwithstanding any other provision of this
subpart--
``(1) no person (including a parent who educates a child at
home, a public school parent, or a private school parent) shall be
required to participate in any program of parent education or
developmental screening under this subpart; and
``(2) no program or center assisted under this subpart shall
take any action that infringes in any manner on the right of a
parent to direct the education of their children.
``(f) Continuation of Awards.--The Secretary shall use funds made
available under this subpart to continue to make grant or contract
payments to each entity that was awarded a multiyear grant or contract
under title IV of the Goals 2000: Educate America Act (as such title
was in effect on the day before the date of enactment of the No Child
Left Behind Act of 2001) for the duration of the grant or contract
award.
``SEC. 5566. LOCAL FAMILY INFORMATION CENTERS.
``(a) In General.--If the amount made available to carry out this
subpart for a fiscal year is more than $50,000,000, the Secretary is
authorized to award 50 percent of the amount that exceeds $50,000,000
as grants to, and enter into contracts and cooperative agreements with,
local nonprofit parent organizations to enable the organizations to
support local family information centers that help ensure that parents
of students in elementary schools and secondary schools assisted under
this subpart have the training, information, and support the parents
need to enable the parents to participate effectively in their
children's early childhood education, in their children's elementary
and secondary education, and in helping their children to meet
challenging State academic content and student academic achievement
standards.
``(b) Local Nonprofit Parent Organization Defined.--In this
section, the term `local nonprofit parent organization' means a private
nonprofit organization (other than an institution of higher education)
that--
``(1) has a demonstrated record of working with low-income
individuals and parents;
``(2)(A) has a board of directors, the majority of whom are
parents of students in elementary schools and secondary schools
assisted under part A of title I and located in the geographic area
to be served by a local family information center; or
``(B) has a special governing committee to direct and implement
a local family information center, a majority of the members of
whom are parents of students in schools assisted under part A of
title I; and
``(3) is located in a community with elementary schools and
secondary schools that receive funds under part A of title I, and
is accessible to the families of students in those schools.
``Subpart 17--Combatting Domestic Violence
``SEC. 5571. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING
DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY SCHOOL
CHILDREN.
``(a) Definitions.--In this section:
``(1) Domestic violence.--The term `domestic violence' has the
meaning given that term in section 2003 of the Omnibus Crime
Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-2).
``(2) Expert.--The term `expert' means--
``(A) an expert on domestic violence, sexual assault, and
child abuse from the educational, legal, youth, mental health,
substance abuse, or victim advocacy field; and
``(B) a State or local domestic violence coalition or
community-based youth organization.
``(3) Witness domestic violence.--
``(A) In general.--The term `witness domestic violence'
means to witness--
``(i) an act of domestic violence that constitutes
actual or attempted physical assault; or
``(ii) a threat or other action that places the victim
in fear of domestic violence.
``(B) Witness.--In subparagraph (A), the term `witness'
means--
``(i) to directly observe an act, threat, or action
described in subparagraph (A), or the aftermath of that
act, threat, or action; or
``(ii) to be within earshot of an act, threat, or
action described in subparagraph (A), or the aftermath of
that act, threat, or action.
``(b) Grants Authorized.--
``(1) Authority.--The Secretary is authorized to award grants
to local educational agencies that work with experts to enable the
elementary schools and secondary schools served by the local
educational agency--
``(A) to provide training to school administrators,
faculty, and staff, with respect to issues concerning children
who experience domestic violence in dating relationships or who
witness domestic violence, and the impact of the violence on
the children;
``(B) to provide educational programming for students
regarding domestic violence and the impact of experiencing or
witnessing domestic violence on children;
``(C) to provide support services for students and school
personnel to develop and strengthen effective prevention and
intervention strategies with respect to issues concerning
children who experience domestic violence in dating
relationships or who witness domestic violence, and the impact
of the violence on the children; and
``(D) to develop and implement school system policies
regarding appropriate and safe responses to, identification of,
and referral procedures for, students who are experiencing or
witnessing domestic violence.
``(2) Award basis.--The Secretary is authorized to award grants
under this section--
``(A) on a competitive basis; and
``(B) in a manner that ensures that such grants are
equitably distributed among local educational agencies located
in rural, urban, and suburban areas.
``(3) Policy dissemination.--The Secretary shall disseminate to
local educational agencies any Department policy guidance regarding
the prevention of domestic violence and the impact on children of
experiencing or witnessing domestic violence.
``(c) Uses of Funds.--Funds made available to carry out this
subpart may be used for one or more of the following purposes:
``(1) To provide training for elementary school and secondary
school administrators, faculty, and staff that addresses issues
concerning elementary school and secondary school students who
experience domestic violence in dating relationships or who witness
domestic violence, and the impact of such violence on those
students.
``(2) To provide education programs for elementary school and
secondary school students that are developmentally appropriate for
the students' grade levels and are designed to meet any unique
cultural and language needs of the particular student populations.
``(3) To develop and implement elementary school and secondary
school system policies regarding--
``(A) appropriate and safe responses to, identification of,
and referral procedures for, students who are experiencing or
witnessing domestic violence; and
``(B) to develop and implement policies on reporting and
referral procedures for those students.
``(4) To provide the necessary human resources to respond to
the needs of elementary school and secondary school students and
personnel who are faced with the issue of domestic violence, such
as a resource person who is either on-site or on-call and who is an
expert.
``(5) To provide media center materials and educational
materials to elementary schools and secondary schools that address
issues concerning children who experience domestic violence in
dating relationships or who witness domestic violence, and the
impact of the violence on those children.
``(6) To conduct evaluations to assess the impact of programs
and policies assisted under this subpart in order to enhance the
development of the programs.
``(d) Confidentiality.--Policies, programs, training materials, and
evaluations developed and implemented under subsection (c) shall
address issues of safety and confidentiality for the victim and the
victim's family in a manner consistent with applicable Federal and
State laws.
``(e) Application.--To be eligible for a grant under this section
for a fiscal year, a local educational agency, in consultation with an
expert, shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require. The application shall include each of the following:
``(1) A description of the need for funds provided under the
grant and the plan for implementation of any of the activities
described in subsection (c).
``(2) A description of how the experts will work in
consultation and collaboration with the local educational agency.
``(3) Measurable objectives for, and expected results from, the
use of the funds provided under the grant.
``(4) Provisions for appropriate remuneration for collaborating
partners.
``Subpart 18--Healthy, High-Performance Schools
``SEC. 5581. GRANT PROGRAM AUTHORIZED.
``The Secretary, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency, is authorized
to award grants to State educational agencies to permit such State
educational agencies to carry out section 5582.
``SEC. 5582. STATE USES OF FUNDS.
``(a) Subgrants.--
``(1) In general.--A State educational agency receiving a grant
under this subpart shall use funds made available under the grant
to award subgrants to local educational agencies to permit such
local educational agencies to carry out the activities described in
section 5583.
``(2) Limitation.--A State educational agency shall award
subgrants under this subsection to local educational agencies that
are the neediest, as determined by the State, and that have made a
commitment to develop healthy, high-performance school buildings in
accordance with the plan developed and approved under paragraph
(3)(A).
``(3) Implementation.--
``(A) Plans.--A State educational agency shall award
subgrants under this subsection only to local educational
agencies that, in consultation with the State educational
agency and State agencies with responsibilities relating to
energy and health, have developed plans that the State
educational agency determines to be feasible and appropriate in
order to achieve the purposes for which the subgrants are made.
``(B) Supplementing grant funds.--The State educational
agency shall encourage local educational agencies that receive
subgrants under this subsection to supplement their subgrant
funds with funds from other sources in order to implement their
plans.
``(b) Administration.--A State educational agency receiving a grant
under this subpart shall use the grant funds made available under this
subpart for one or more of the following:
``(1) To evaluate compliance by local educational agencies with
the requirements of this subpart.
``(2) To distribute information and materials on healthy, high-
performance school buildings for both new and existing facilities.
``(3) To organize and conduct programs for school board
members, school district personnel, and others to disseminate
information on healthy, high-performance school buildings.
``(4) To provide technical services and assistance in planning
and designing healthy, high-performance school buildings.
``(5) To collect and monitor information pertaining to healthy,
high-performance school building projects.
``SEC. 5583. LOCAL USES OF FUNDS.
``(a) In General.--A local educational agency that receives a
subgrant under section 5582(a) shall use the subgrant funds to plan and
prepare for healthy, high-performance school building projects that--
``(1) reduce energy use to at least 30 percent below that of a
school constructed in compliance with standards prescribed in
chapter 8 of the 2000 International Energy Conservation Code, or a
similar State code intended to achieve substantially equivalent
results;
``(2) meet Federal and State health and safety codes; and
``(3) support healthful, energy efficient, and environmentally
sound practices.
``(b) Use of Funds.--A local educational agency that receives a
subgrant under section 5582(a) shall use funds for one or more of the
following:
``(1) To develop a comprehensive energy audit of the energy
consumption characteristics of a building and the need for
additional energy conservation measures necessary to allow schools
to meet the guidelines set out in subsection (a).
``(2) To produce a comprehensive analysis of building
strategies, designs, materials, and equipment that--
``(A) are cost effective, produce greater energy
efficiency, and enhance indoor air quality; and
``(B) can be used when conducting school construction and
renovation or purchasing materials and equipment.
``(3) To obtain research and provide technical services and
assistance in planning and designing healthy, high-performance
school buildings, including developing a timeline for
implementation of such plans.
``SEC. 5584. REPORT TO CONGRESS.
``The Secretary shall conduct a biennial review of State actions
implementing this subpart and carrying out the plans developed under
this subpart through State and local funding, and shall submit a report
to Congress on the results of such reviews.
``SEC. 5585. LIMITATIONS.
``No funds received under this subpart may be used for any of the
following:
``(1) Payment of maintenance of costs in connection with any
projects constructed in whole or in part with Federal funds
provided under this subpart.
``(2) Construction, renovation, or repair of school facilities.
``(3) Construction, renovation, repair, or acquisition of a
stadium or other facility primarily used for athletic contests or
exhibitions, or other events for which admission is charged to the
general public.
``SEC. 5586. HEALTHY, HIGH-PERFORMANCE SCHOOL BUILDING DEFINED.
``In this subpart, the term `healthy, high-performance school
building' means a school building in which the design, construction,
operation, and maintenance--
``(1) use energy-efficient and affordable practices and
materials;
``(2) are cost-effective;
``(3) enhance indoor air quality; and
``(4) protect and conserve water.
``Subpart 19--Grants for Capital Expenses of Providing Equitable
Services for Private School Students
``SEC. 5591. GRANT PROGRAM AUTHORIZED.
``The Secretary is authorized to award grants to State educational
agencies, from allotments made under section 5593, to enable the State
educational agencies to award subgrants to local educational agencies
to pay for capital expenses in accordance with this subpart.
``SEC. 5592. USES OF FUNDS.
``A local educational agency that receives a subgrant under this
subpart shall use the subgrant funds only to pay for capital expenses
incurred in providing equitable services for private school students
under section 1120.
``SEC. 5593. ALLOTMENTS TO STATES.
``From the funds made available to carry out this subpart for a
fiscal year, the Secretary shall allot to each State an amount that
bears the same ratio to the funds made available as the number of
private school students who received services under part A of title I
in the State in the most recent year for which data, satisfactory to
the Secretary, are available bears to the number of such students in
all States in such year.
``SEC. 5594. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Applications.--A local educational agency that desires to
receive a subgrant under this subpart shall submit an application to
the State educational agency involved at such time, in such manner, and
containing such information as the State educational agency may
require.
``(b) Distribution.--A State educational agency shall award
subgrants to local educational agencies within the State based on the
degree of need set forth in their respective applications submitted
under subsection (a).
``SEC. 5595. CAPITAL EXPENSES DEFINED.
``In this subpart, the term `capital expenses' means--
``(1) expenditures for noninstructional goods and services,
such as the purchase, lease, or renovation of real and personal
property, including mobile educational units and leasing of neutral
sites or spaces;
``(2) insurance and maintenance costs;
``(3) transportation; and
``(4) other comparable goods and services.
``SEC. 5596. TERMINATION.
``The authority provided by this subpart terminates effective
October 1, 2003.
``Subpart 20--Additional Assistance for Certain Local Educational
Agencies Impacted by Federal Property Acquisition
``SEC. 5601. RESERVATION.
``The Secretary is authorized to provide additional assistance to
meet special circumstances relating to the provision of education in
local educational agencies eligible to receive assistance under section
8002.
``SEC. 5602. ELIGIBILITY.
``A local educational agency is eligible to receive additional
assistance under this subpart only if such agency--
``(1) received a payment under both section 8002 and section
8003(b) for fiscal year 1996 and is eligible to receive payments
under those sections for the year of application;
``(2) provided a free public education to children described
under 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 this subpart, the agency
does not have a military installation located within its geographic
boundaries;
``(4) remains responsible for the free public education of
children residing in housing located on Federal property within the
boundaries of the closed military installation but whose parents
are on active duty in the uniformed services and assigned to a
military activity located within the boundaries of an adjoining
local educational agency; and
``(5) demonstrates to the satisfaction of the Secretary that
such agency's per-pupil revenue derived from local sources for
current expenditures is not less than that revenue for the
preceding fiscal year.
``SEC. 5603. MAXIMUM AMOUNT.
``(a) Maximum Amount.--The maximum amount that a local educational
agency is eligible to receive under this subpart for any fiscal year,
when combined with its payment under section 8002(b), shall not be more
than 50 percent of the maximum amount determined under section 8002(b).
``(b) Insufficient Funds.--If funds appropriated under section 5401
are insufficient to pay the amount determined under subsection (a), the
Secretary shall ratably reduce the payment to each local 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 21--Women's Educational Equity Act
``SEC. 5611. SHORT TITLE AND FINDINGS.
``(a) Short Title.--This subpart may be cited as the `Women's
Educational Equity Act of 2001'.
``(b) Findings.--Congress finds that--
``(1) since the enactment of title IX of the Education
Amendments of 1972, women and girls have made strides in
educational achievement and in their ability to avail themselves of
educational opportunities;
``(2) because of funding provided under the Women's Educational
Equity Act 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
``(D) pregnant and parenting teenagers are at high risk for
dropping out of school and existing dropout prevention programs
do not adequately address the needs of such teenagers;
``(4) efforts to improve the quality of public education also
must include efforts to ensure equal access to quality education
programs for all women and girls;
``(5) Federal support should address not only research and
development of innovative model curricula and teaching and learning
strategies to promote gender equity, but should also assist schools
and local communities implement gender equitable practices;
``(6) Federal assistance for gender equity must be tied to
systemic reform, involve collaborative efforts to implement
effective gender practices at the local level, and encourage
parental participation; and
``(7) excellence in education, high educational achievements
and standards, and the full participation of women and girls in
American society, cannot be achieved without educational equity for
women and girls.
``SEC. 5612. STATEMENT OF 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. PROGRAMS AUTHORIZED.
``(a) In General.--The Secretary is authorized--
``(1) to promote, coordinate, and evaluate gender equity
policies, programs, activities, and initiatives in all Federal
education programs and offices;
``(2) to develop, maintain, and disseminate materials,
resources, analyses, and research relating to education equity for
women and girls;
``(3) to provide information and technical assistance to assure
the effective implementation of gender equity programs;
``(4) to coordinate gender equity programs and activities with
other Federal agencies with jurisdiction over education and related
programs;
``(5) to assist the Assistant Secretary of the Office of
Educational Research and Improvement in identifying research
priorities related to education equity for women and girls; and
``(6) to perform any other activities consistent with achieving
the purposes of this subpart.
``(b) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award grants
to, and enter into contracts and cooperative agreements with,
public agencies, private nonprofit agencies, organizations,
institutions, student groups, community groups, and individuals,
for a period not to exceed 4 years, to--
``(A) provide grants to develop model equity programs; and
``(B) provide funds for the implementation of equity
programs in schools throughout the Nation.
``(2) Support and technical assistance.--To achieve the
purposes of this subpart, the Secretary is authorized to provide
support and technical assistance--
``(A) to implement effective gender-equity policies and
programs at all educational levels, including--
``(i) assisting educational agencies and institutions
to implement policies and practices to comply with title IX
of the Education Amendments of 1972;
``(ii) training for teachers, counselors,
administrators, and other school personnel, especially
preschool and elementary school personnel, in gender
equitable teaching and learning practices;
``(iii) leadership training for women and girls to
develop professional and marketable skills to compete in
the global marketplace, improve self-esteem, and benefit
from exposure to positive role models;
``(iv) school-to-work transition programs, guidance and
counseling activities, and other programs to increase
opportunities for women and girls to enter a
technologically demanding workplace and, in particular, to
enter highly skilled, high paying careers in which women
and girls have been underrepresented;
``(v) enhancing educational and career opportunities
for those women and girls who suffer multiple forms of
discrimination, based on sex, and on race, ethnic origin,
limited English proficiency, disability, socioeconomic
status, or age;
``(vi) assisting pregnant students and students rearing
children to remain in or to return to secondary school,
graduate, and prepare their preschool children to start
school;
``(vii) evaluating exemplary model programs to assess
the ability of such programs to advance educational equity
for women and girls;
``(viii) introduction into the classroom of textbooks,
curricula, and other materials designed to achieve equity
for women and girls;
``(ix) programs and policies to address sexual
harassment and violence against women and girls and to
ensure that educational institutions are free from threats
to the safety of students and personnel;
``(x) nondiscriminatory tests of aptitude and
achievement and of alternative assessments that eliminate
biased assessment instruments from use;
``(xi) programs to increase educational opportunities,
including higher education, vocational training, and other
educational programs for low-income women, including
underemployed and unemployed women, and women receiving
assistance under a State program funded under part A of
title IV of the Social Security Act;
``(xii) programs to improve representation of women in
educational administration at all levels; and
``(xiii) planning, development, and initial
implementation of--
``(I) comprehensive institutionwide or districtwide
evaluation to assess the presence or absence of gender
equity in educational settings;
``(II) comprehensive plans for implementation of
equity programs in State educational agencies and local
educational agencies and institutions of higher
education, including community colleges; and
``(III) innovative approaches to school-community
partnerships for educational equity; 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.
``SEC. 5614. APPLICATIONS.
``An application under this subpart shall--
``(1) set forth policies and procedures that will ensure a
comprehensive evaluation of the activities assisted under this
subpart, including an evaluation of the practices, policies, and
materials used by the applicant and an evaluation or estimate of
the continued significance of the work of the project following
completion of the award period;
``(2) demonstrate how the applicant will address perceptions of
gender roles based on cultural differences or stereotypes;
``(3) for applications for assistance under section 5613(b)(1),
demonstrate how the applicant will foster partnerships and, where
applicable, share resources with State educational agencies, local
educational agencies, institutions of higher education, community-
based organizations (including organizations serving women),
parent, teacher, and student groups, businesses, or other
recipients of Federal educational funding which may include State
literacy resource centers;
``(4) for applications for assistance under section 5613(b)(1),
demonstrate how parental involvement in the project will be
encouraged; and
``(5) for applications for assistance under section 5613(b)(1),
describe plans for continuation of the activities assisted under
this subpart with local support following completion of the grant
period and termination of Federal support under this subpart.
``SEC. 5615. CRITERIA AND PRIORITIES.
``(a) Criteria and Priorities.--
``(1) In general.--The Secretary shall establish separate
criteria and priorities for awards under paragraphs (1) and (2) of
section 5613(b) to ensure that funds under this subpart are used
for programs that most effectively will achieve the purposes of
this subpart.
``(2) Criteria.--The criteria described in paragraph (1) may
include the extent to which the activities assisted under this
subpart--
``(A) address the needs of women and girls of color and
women and girls with disabilities;
``(B) meet locally defined and documented educational
equity needs and priorities, including compliance with title IX
of the Education Amendments of 1972;
``(C) are a significant component of a comprehensive plan
for educational equity and compliance with title IX of the
Education Amendments of 1972 in the particular school district,
institution of higher education, vocational-technical
institution, or other educational agency or institution; and
``(D) implement an institutional change strategy with long-
term impact that will continue as a central activity of the
applicant after the grant under this subpart has terminated.
``(b) Priorities.--In awarding grants under this subpart, the
Secretary may give special consideration to applications--
``(1) submitted by applicants that have not received assistance
under this subpart or this subpart's predecessor authorities;
``(2) for projects that will contribute significantly to
directly improving teaching and learning practices in the local
community; and
``(3) for projects that will--
``(A) provide for a comprehensive approach to enhancing
gender equity in educational institutions and agencies;
``(B) draw on a variety of resources, including the
resources of local educational agencies, community-based
organizations, institutions of higher education, and private
organizations;
``(C) implement a strategy with long-term impact that will
continue as a central activity of the applicant after the grant
under this subpart has terminated;
``(D) address issues of national significance that can be
duplicated; and
``(E) address the educational needs of women and girls who
suffer multiple or compound discrimination based on sex and on
race, ethnic origin, disability, or age.
``(c) Special Rule.--To the extent feasible, the Secretary shall
ensure that grants awarded under this subpart for each fiscal year
address--
``(1) all levels of education, including preschool, elementary
and secondary education, higher education, vocational education,
and adult education;
``(2) all regions of the United States; and
``(3) urban, rural, and suburban educational institutions.
``(d) Coordination.--Research activities supported under this
subpart--
``(1) shall be carried out in consultation with the Office of
Educational Research and Improvement to ensure that such activities
are coordinated with and enhance the research and development
activities supported by the Office; and
``(2) may include collaborative research activities which are
jointly funded and carried out with the Office of Educational
Research and Improvement.
``(e) Limitation.--Nothing in this subpart shall be construed as
prohibiting men and boys from participating in any programs or
activities assisted with funds under this subpart.
``SEC. 5616. REPORT.
``Not later than January 1, 2006, the Secretary shall submit to the
President and Congress a report on the status of educational equity for
girls and women in the Nation.
``SEC. 5617. ADMINISTRATION.
``(a) Evaluation and Dissemination.--Not later than January 1,
2005, the Secretary shall evaluate and disseminate materials and
programs developed under this subpart and shall report to Congress
regarding such evaluation materials and programs.
``(b) Program Operations.--The Secretary shall ensure that the
activities assisted under this subpart are administered within the
Department by a person who has recognized professional qualifications
and experience in the field of gender equity education.
``SEC. 5618. AMOUNT.
``From amounts made available to carry out this subpart for a
fiscal year, not less than two-thirds of such amount shall be used to
carry out the activities described in section 5613(b)(1).''.
SEC. 502. CONTINUATION OF AWARDS.
(a) In General.--Notwithstanding any other provision of this Act or
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et
seq.), in the case of any agency or consortium that was awarded a grant
under section 5111 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7211) or any person or agency that was awarded a
contract or grant under part B, D, or E of title X of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 et
seq., 8131 et seq.), prior to the date of enactment of this Act, the
Secretary of Education shall continue to provide funds in accordance
with the terms of such award until the date on which the award period
terminates under such terms.
(b) Special Rule.--Notwithstanding any other provision of this Act,
any person or agency that was awarded or entered into a grant,
contract, or cooperative agreement under part B of title V of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7231 et
seq.), prior to the date of enactment of this Act shall continue to
receive funds in accordance with the terms of such grant, contract, or
agreement until the date on which the grant, contract, or agreement
period terminates under such terms.
TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
SEC. 601. FLEXIBILITY AND ACCOUNTABILITY.
Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:
``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
``PART A--IMPROVING ACADEMIC ACHIEVEMENT
``Subpart 1--Accountability
``SEC. 6111. GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES.
``The Secretary shall make grants to States to enable the States--
``(1) to pay the costs of the development of the additional
State assessments and standards required by section 1111(b), which
may include the costs of working in voluntary partnerships with
other States, at the sole discretion of each such State; and
``(2) if a State has developed the assessments and standards
required by section 1111(b), to administer those assessments or to
carry out other activities described in this subpart and other
activities related to ensuring that the State's schools and local
educational agencies are held accountable for results, such as the
following:
``(A) Developing challenging State academic content and
student academic achievement standards and aligned assessments
in academic subjects for which standards and assessments are
not required by section 1111(b).
``(B) Developing or improving assessments of English
language proficiency necessary to comply with section
1111(b)(7).
``(C) Ensuring the continued validity and reliability of
State assessments.
``(D) Refining State assessments to ensure their continued
alignment with the State's academic content standards and to
improve the alignment of curricula and instructional materials.
``(E) Developing multiple measures to increase the
reliability and validity of State assessment systems.
``(F) Strengthening the capacity of local educational
agencies and schools to provide all students the opportunity to
increase educational achievement, including carrying out
professional development activities aligned with State student
academic achievement standards and assessments.
``(G) Expanding the range of accommodations available to
students with limited English proficiency and students with
disabilities to improve the rates of inclusion of such
students, including professional development activities aligned
with State academic achievement standards and assessments.
``(H) Improving the dissemination of information on student
achievement and school performance to parents and the
community, including the development of information and
reporting systems designed to identify best educational
practices based on scientifically based research or to assist
in linking records of student achievement, length of
enrollment, and graduation over time.
``SEC. 6112. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.
``(a) Grant Program Authorized.--From funds made available to carry
out this subpart, the Secretary shall award, on a competitive basis,
grants to State educational agencies that have submitted an application
at such time, in such manner, and containing such information as the
Secretary may require, which demonstrate to the satisfaction of the
Secretary, that the requirements of this section will be met, for the
following:
``(1) To enable States (or consortia of States) to collaborate
with institutions of higher education, other research institutions,
or other organizations to improve the quality, validity, and
reliability of State academic assessments beyond the requirements
for such assessments described in section 1111(b)(3).
``(2) To measure student academic achievement using multiple
measures of student academic achievement from multiple sources.
``(3) To chart student progress over time.
``(4) To evaluate student academic achievement through the
development of comprehensive academic assessment instruments, such
as performance and technology-based academic assessments.
``(b) Application.--Each State wishing to apply for funds under
this section shall include in its State plan under part A of title I
such information as the Secretary may require.
``(c) Annual Report.--Each State educational agency receiving a
grant under this section shall submit an annual report to the Secretary
describing its activities, and the result of those activities, under
the grant.
``SEC. 6113. FUNDING.
``(a) Authorization of Appropriations.--
``(1) National assessment of educational progress.--For the
purpose of administering the State assessments under the National
Assessment of Educational Progress, there are authorized to be
appropriated $72,000,000 for fiscal year 2002, and such sums as may
be necessary for each of the 5 succeeding fiscal years.
``(2) State assessments and related activities.--For the
purpose of carrying out this subpart, there are authorized to be
appropriated $490,000,000 for fiscal year 2002, and such sums as
may be necessary for each of the 5 succeeding fiscal years.
``(b) Allotment of Appropriated Funds.--
``(1) In general.--From amounts made available for each fiscal
year under subsection (a)(2) that are equal to or less than the
amount described in section 1111(b)(3)(D) (hereinafter in this
subsection referred to as the `trigger amount'), the Secretary
shall--
``(A) reserve 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 of the most recent
satisfactory data) bears to the total number of such students
in all States.
``(B) Any amounts remaining after the Secretary awards
funds under subparagraph (A) shall be allocated to each State
that did not receive a grant under such subparagraph, in an
amount that bears the same relationship to the total funds
available under this subparagraph as the number of students
ages 5 through 17 in the State (as determined by the Secretary
on the basis of the most recent satisfactory data) bears to the
total number of such students in all States.
``(c) State Defined.--In this section, the term `State' means each
of the 50 States, the District of Columbia, and the Commonwealth of
Puerto Rico.
``Subpart 2--Funding Transferability for State and Local Educational
Agencies
``SEC. 6121. SHORT TITLE.
``This subpart may be cited as the `State and Local Transferability
Act'.
``SEC. 6122. PURPOSE.
``The purpose of this subpart is to allow States and local
educational agencies the flexibility--
``(1) to target Federal funds to Federal programs that most
effectively address the unique needs of States and localities; and
``(2) to transfer Federal funds allocated to other activities
to allocations for certain activities authorized under title I.
``SEC. 6123. TRANSFERABILITY OF FUNDS.
``(a) Transfers by States.--
``(1) In general.--In accordance with this subpart, a State may
transfer not more than 50 percent of the nonadministrative State
funds (including funds transferred under paragraph (2)) allotted to
the State for use for State-level activities under the following
provisions for a fiscal year to one or more of the State's
allotments for such fiscal year under any other of such provisions:
``(A) Section 2113(a)(3).
``(B) Section 2412(a)(1).
``(C) Subsections (a)(1) (with the agreement of the
Governor) and (c)(1) of section 4112 and section 4202(c)(3).
``(D) Section 5112(b).
``(2) Additional funds for title i.--In accordance with this
subpart and subject to the 50 percent limitation described in
paragraph (1), a State may transfer any funds allotted to the State
under a provision listed in paragraph (1) to its allotment under
title I.
``(b) Transfers by Local Educational Agencies.--
``(1) Authority to transfer funds.--
``(A) In general.--In accordance with this subpart, a local
educational agency (except a local educational agency
identified for improvement under section 1116(c) or subject to
corrective action under section 1116(c)(9)) may transfer not
more than 50 percent of the funds allocated to it (including
funds transferred under subparagraph (C)) under each of the
provisions listed in paragraph (2) for a fiscal year to one or
more of its allocations for such fiscal year under any other
provision listed in paragraph (2).
``(B) Agencies identified for improvement.--In accordance
with this subpart, a local educational agency identified for
improvement under section 1116(c) may transfer not more than 30
percent of the funds allocated to it (including funds
transferred under subparagraph (C)) under each of the
provisions listed in paragraph (2) for a fiscal year--
``(i) to its allocation for school improvement for such
fiscal year under section 1003; or
``(ii) to any other allocation for such fiscal year if
such transferred funds are used only for local educational
agency improvement activities consistent with section
1116(c).
``(C) Additional funds for title i.--In accordance with
this subpart and subject to the percentage limitation described
in subparagraph (A) or (B), as applicable, a local educational
agency may transfer funds allocated to such agency under any of
the provisions listed in paragraph (2) for a fiscal year to its
allocation for part A of title I for that fiscal year.
``(2) Applicable provisions.--A local educational agency may
transfer funds under subparagraph (A), (B), or (C) of paragraph (1)
from allocations made under each of the following provisions:
``(A) Section 2121.
``(B) Section 2412(a)(2)(A).
``(C) Section 4112(b)(1).
``(D) Section 5112(a).
``(c) No Transfer of Title I Funds.--A State or a local educational
agency may not transfer under this subpart to any other program any
funds allotted or allocated to it for part A of title I.
``(d) Modification of Plans and Applications; Notification.--
``(1) State transfers.--Each State that makes a transfer of
funds under this section shall--
``(A) modify, to account for such transfer, each State
plan, or application submitted by the State, to which such
funds relate;
``(B) not later than 30 days after the date of such
transfer, submit a copy of such modified plan or application to
the Secretary; and
``(C) not later than 30 days before the effective date of
such transfer, notify the Secretary of such transfer.
``(2) Local transfers.--Each local educational agency that
makes a transfer of funds under this section shall--
``(A) modify, to account for such transfer, each local
plan, or application submitted by the agency, to which such
funds relate;
``(B) not later than 30 days after the date of such
transfer, submit a copy of such modified plan or application to
the State; and
``(C) not later than 30 days before the effective date of
such transfer, notify the State of such transfer.
``(e) Applicable Rules.--
``(1) In general.--Except as otherwise provided in this
subpart, funds transferred under this section are subject to each
of the rules and requirements applicable to the funds under the
provision to which the transferred funds are transferred.
``(2) Consultation.--Each State educational agency or local
educational agency that transfers funds under this section shall
conduct consultations in accordance with section 9501, if such
transfer transfers funds from a program that provides for the
participation of students, teachers, or other educational
personnel, from private schools.
``Subpart 3--State and Local Flexibility Demonstration
``SEC. 6131. SHORT TITLE.
``This subpart may be cited as the `State and Local Flexibility
Demonstration Act'.
``SEC. 6132. PURPOSE.
``The purpose of this subpart is to create options for selected
State educational agencies and local educational agencies--
``(1) to improve the academic achievement of all students, and
to focus the resources of the Federal Government upon such
achievement;
``(2) to improve teacher quality and subject matter mastery,
especially in mathematics, reading, and science;
``(3) to better empower parents, educators, administrators, and
schools to effectively address the needs of their children and
students;
``(4) to give participating State educational agencies and
local educational agencies greater flexibility in determining how
to increase their students' academic achievement and implement
education reforms in their schools;
``(5) to eliminate barriers to implementing effective State and
local education reform, while preserving the goals of opportunity
for all students and accountability for student progress;
``(6) to hold participating State educational agencies and
local educational agencies accountable for increasing the academic
achievement of all students, especially disadvantaged students; and
``(7) to narrow achievement gaps between the lowest and highest
achieving groups of students so that no child is left behind.
``SEC. 6133. GENERAL PROVISION.
``For purposes of this subpart, any State that is one local
educational agency shall be considered a State educational agency and
not a local educational agency.
``CHAPTER A--STATE FLEXIBILITY AUTHORITY
``SEC. 6141. STATE FLEXIBILITY.
``(a) Flexibility Authority.--Except as otherwise provided in this
chapter, the Secretary shall, on a competitive basis, grant flexibility
authority to not more than 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;
``(F) a provision specifying that no requirements of any
program described in section 6142(b) and included by a State
educational agency in the scope of the grant of authority shall
apply to that agency, except as otherwise provided in this
chapter;
``(G) a 5-year plan describing how the State educational
agency intends to consolidate and use the funds from programs
included in the scope of the grant of authority, for any
educational purpose authorized under this Act, in order to make
adequate yearly progress and advance the education priorities
of the State and the local educational agencies with which the
State educational agency enters into performance agreements;
``(H) an assurance that the State educational agency will
provide parents, teachers, and representatives of local
educational agencies and schools with notice and an opportunity
to comment on the proposed terms of the grant of authority;
``(I) an assurance that the State educational agency, and
the local educational agencies with which the State educational
agency enters into performance agreements, will use fiscal
control and fund accounting procedures that will ensure proper
disbursement of, and accounting for, Federal funds consolidated
and used under the grant of authority;
``(J) an assurance that the State educational agency, and
the local educational agencies with which the State educational
agency enters into performance agreements, will meet the
requirements of all applicable Federal civil rights laws in
carrying out the grant of authority, including consolidating
and using funds under the grant of authority;
``(K) an assurance that, in consolidating and using funds
under the grant of authority--
``(i) the State educational agency, and the local
educational agencies with which the State educational
agency enters into performance agreements, will provide for
the equitable participation of students and professional
staff in private schools consistent with section 9501; and
``(ii) that sections 9502, 9503, and 9504 shall apply
to all services and assistance provided with such funds in
the same manner as such sections apply to services and
assistance provided in accordance with section 9501;
``(L) an assurance that the State educational agency will,
for the duration of the grant of authority, use funds
consolidated under section 6142 only to supplement the amount
of funds that would, in the absence of those Federal funds, be
made available from non-Federal sources for the education of
students participating in programs assisted with the
consolidated funds, and not to supplant those funds; and
``(M) an assurance that the State educational agency shall,
not later than 1 year after the date on which the Secretary
makes the grant of authority, and annually thereafter during
the term of the grant of authority, disseminate widely to
parents and the general public, transmit to the Secretary,
distribute to print and broadcast media, and post on the
Internet, a report, which shall include a detailed description
of how the State educational agency, and the local educational
agencies with which the State educational agency enters into
performance agreements, used the funds consolidated under the
grant of authority to make adequate yearly progress and advance
the education priorities of the State and local educational
agencies in the State.
``(2) Proposed performance agreements with local educational
agencies.--
``(A) In general.--A State educational agency that wishes
to receive flexibility authority under this subpart shall
propose performance agreements that meet the requirements of
clauses (i) and (ii) of subsection (b)(1)(B) (subject to
approval of the application or amendment involved under
subsection (d) or (e)).
``(B) Performance agreements.--Each proposed performance
agreement with a local educational agency shall--
``(i) contain plans for the local educational agency to
consolidate and use funds in accordance with section 6152,
for activities that are aligned with the State educational
agency's plan described in paragraph (1)(G);
``(ii) be subject to the requirements of chapter B
relating to agreements between the Secretary and a local
educational agency, except--
``(I) that, as appropriate, references in that
chapter to the Secretary shall be deemed to be
references to the State educational agency; and
``(II) as otherwise provided in this chapter; and
``(iii) contain an assurance that the local educational
agency will, for the duration of the grant of authority,
use funds consolidated under section 6152 only to
supplement the amount of funds that would, in the absence
of those Federal funds, be made available from non-Federal
sources for the education of students participating in
programs assisted with the consolidated funds, and not to
supplant those funds.
``(d) Approval and Selection.--The Secretary shall--
``(1) establish a peer review process to assist in the review
of proposed State applications under this section; and
``(2) appoint individuals to participate in the peer review
process who are--
``(A) representative of parents, teachers, State
educational agencies, and local educational agencies; and
``(B) familiar with educational standards, assessments,
accountability, curricula, instruction, and staff development,
and other diverse educational needs of students.
``(e) Amendment to Grant of Authority.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall amend the grant of flexibility authority made to a State
educational agency under this chapter, in each of the following
circumstances:
``(A) Reduction in scope of the grant of authority.--Not
later than 1 year after receiving a grant of flexibility
authority, the State educational agency seeks to amend the
grant of authority to remove from the scope of the grant of
authority any program described in section 6142(b).
``(B) Expansion of scope of the grant of authority.--Not
later than 1 year after receiving a grant of flexibility
authority, the State educational agency seeks to amend the
grant of authority to include in the scope of the grant of
authority any additional program described in section 6142(b)
or any additional achievement indicators for which the State
will be held accountable.
``(C) Changes with respect to number of performance
agreements.--The State educational agency seeks to amend the
grant of authority to include or remove performance agreements
that the State educational agency proposes to enter into with
eligible local educational agencies, except that in no case may
the State educational agency enter into performance agreements
that do not meet the requirements of clauses (i) and (ii) of
subsection (b)(1)(B).
``(2) Approval and disapproval.--
``(A) Deemed approval.--A proposed amendment to a grant of
flexibility authority submitted by a State educational agency
pursuant to paragraph (1) shall be deemed to be approved by the
Secretary unless the Secretary makes a written determination,
prior to the expiration of the 120-day period beginning on the
date on which the Secretary received the proposed amendment,
that the proposed amendment is not in compliance with this
chapter.
``(B) Disapproval.--The Secretary shall not finally
disapprove the proposed amendment, except after giving the
State educational agency notice and an opportunity for a
hearing.
``(C) Notification.--If the Secretary finds that the
proposed amendment is not in compliance, in whole or in part,
with this chapter, the Secretary shall--
``(i) give the State educational agency notice and an
opportunity for a hearing; and
``(ii) notify the State educational agency of the
finding of noncompliance and, in such notification, shall--
``(I) cite the specific provisions in the proposed
amendment that are not in compliance; and
``(II) request additional information, only as to
the noncompliant provisions, needed to make the
proposed amendment compliant.
``(D) Response.--If the State educational agency responds
to the Secretary's notification described in subparagraph
(C)(ii) during the 45-day period beginning on the date on which
the agency received the notification, and resubmits the
proposed amendment with the requested information described in
subparagraph (C)(ii)(II), the Secretary shall approve or
disapprove such proposed amendment prior to the later of--
``(i) the expiration of the 45-day period beginning on
the date on which the proposed amendment is resubmitted; or
``(ii) the expiration of the 120-day period described
in subparagraph (A).
``(E) Failure to respond.--If the State educational agency
does not respond to the Secretary's notification described in
subparagraph (C)(ii) during the 45-day period beginning on the
date on which the agency received the notification, such
proposed amendment shall be deemed to be disapproved.
``(3) Treatment of program funds withdrawn from grant of
authority.--Beginning on the effective date of an amendment
executed under paragraph (1)(A), each program requirement of each
program removed from the scope of a grant of authority shall apply
to the use of funds made available under the program by the State
educational agency and each local educational agency with which the
State educational agency has a performance agreement.
``SEC. 6142. CONSOLIDATION AND USE OF FUNDS.
``(a) In General.--
``(1) Authority.--Under a grant of flexibility authority made
under this chapter, a State educational agency may consolidate
Federal funds described in subsection (b) and made available to the
agency, and use such funds for any educational purpose authorized
under this Act.
``(2) Program requirements.--Except as otherwise provided in
this chapter, a State educational agency may use funds under
paragraph (1) notwithstanding the program requirements of the
program under which the funds were made available to the State.
``(b) Eligible Funds and Programs.--
``(1) Funds.--The funds described in this subsection are funds,
for State-level activities and State administration, that are
described in the following provisions:
``(A) Section 1004.
``(B) Paragraphs (4) and (5) of section 1202(d).
``(C) Section 2113(a)(3).
``(D) Section 2412(a)(1).
``(E) Subsections (a) (with the agreement of the Governor),
(b)(2), and (c)(1) of section 4112.
``(F) Paragraphs (2) and (3) of section 4202(c).
``(G) Section 5112(b).
``(2) Programs.--The programs described in this subsection are
the programs authorized to be carried out with funds described in
paragraph (1).
``(c) Special Rule.--A State educational agency that receives a
grant of flexibility authority under this chapter--
``(1) shall ensure that the funds described in section 5112(a)
are allocated to local educational agencies in the State in
accordance with section 5112(a); but
``(2) may specify how the local educational agencies shall use
the allocated funds.
``SEC. 6143. PERFORMANCE REVIEW AND PENALTIES.
``(a) Midterm Review.--
``(1) Failure to make adequate yearly progress.--If, during the
term of a grant of flexibility authority under this chapter, a
State educational agency fails to make adequate yearly progress for
2 consecutive years, the Secretary shall, after providing notice
and an opportunity for a hearing, terminate the grant of authority
promptly.
``(2) Noncompliance.--The Secretary may, after providing notice
and an opportunity for a hearing (including the opportunity to
provide evidence as described in paragraph (3)), terminate a grant
of flexibility authority for a State if there is evidence that the
State educational agency involved has failed to comply with the
terms of the grant of authority.
``(3) Evidence.--If a State educational agency believes that a
determination of the Secretary under this subsection is in error
for statistical or other substantive reasons, the State educational
agency may provide supporting evidence to the Secretary, and the
Secretary shall consider that evidence before making a final
termination determination under this subsection.
``(b) Final Review.--
``(1) In general.--If, at the end of the 5-year term of a grant
of flexibility authority made under this chapter, the State
educational agency has not met the requirements described in
section 6141(c), the Secretary may not renew the grant of
flexibility authority under section 6144.
``(2) Compliance.--Beginning on the date on which such term
ends, the State educational agency, and the local educational
agencies with which the State educational agency has entered into
performance agreements, shall be required to comply with each of
the program requirements in effect on such date for each program
that was included in the grant of authority.
``SEC. 6144. RENEWAL OF GRANT OF FLEXIBILITY AUTHORITY.
``(a) In General.--Except as provided in section 6143 and in
accordance with this section, if a State educational agency has met, by
the end of the original 5-year term of a grant of flexibility authority
under this chapter, the requirements described in section 6141(c), the
Secretary shall renew a grant of flexibility authority for one
additional 5-year term.
``(b) Renewal.--The Secretary may not renew a grant of flexibility
authority under this chapter unless, not later than 6 months before the
end of the original term of the grant of authority, the State
educational agency seeking the renewal notifies the Secretary, and the
local educational agencies with which the State educational agency has
entered into performance agreements, of the agency's intention to renew
the grant of authority.
``(c) Effective Date.--A renewal under this section shall be
effective on the later of--
``(1) the expiration of the original term of the grant of
authority; or
``(2) the date on which the State educational agency seeking
the renewal provides to the Secretary all data required for the
application described in section 6141(c).
``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION
``SEC. 6151. LOCAL FLEXIBILITY DEMONSTRATION AGREEMENTS.
``(a) Authority.--Except as otherwise provided in this chapter, the
Secretary shall, on a competitive basis, enter into local flexibility
demonstration agreements--
``(1) with local educational agencies that submit approvable
proposed agreements under subsection (c) and that are selected
under subsection (b); and
``(2) under which those agencies may consolidate and use funds
in accordance with section 6152.
``(b) Selection of Local Educational Agencies.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall enter into local flexibility demonstration agreements under
this chapter with not more than 80 local educational agencies. Each
local educational agency shall be selected on a competitive basis
from among those local educational agencies that--
``(A) submit a proposed local flexibility demonstration
agreement under subsection (c) to the Secretary and
demonstrate, to the satisfaction of the Secretary, that the
agreement--
``(i) has a substantial promise of assisting the local
educational agency in meeting the State's definition of
adequate yearly progress, advancing the education
priorities of the local educational agency, meeting the
general purposes of the programs included under this
chapter and the purposes of this part, improving student
achievement, and narrowing achievement gaps in accordance
with section 1111(b);
``(ii) meets the requirements of this chapter; and
``(iii) contains a plan to consolidate and use funds in
accordance with section 6152 in order to meet the State's
definition of adequate yearly progress and the local
educational agency's specific, measurable goals for
improving student achievement and narrowing achievement
gaps; and
``(B) have consulted and involved parents and other
educators in the development of the proposed local flexibility
demonstration agreement.
``(2) Geographic distribution.--
``(A) Initial agreements.--The Secretary may enter into not
more than 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 such
period of time as the Secretary may establish, is provided
with such authority by the Secretary; or
``(ii) has, at any time after such period, been granted
flexibility authority under chapter A.
``(c) Required Terms of Local Flexibility Demonstration
Agreement.--Each local flexibility demonstration agreement entered into
with the Secretary under this chapter shall contain each of the
following terms:
``(1) Duration.--The local flexibility demonstration agreement
shall be for a term of 5 years.
``(2) Application of program requirements.--The local
flexibility demonstration agreement shall provide that no
requirements of any program described in section 6152 and included
by a local educational agency in the scope of its agreement shall
apply to that agency, except as otherwise provided in this chapter.
``(3) List of programs.--The local flexibility demonstration
agreement shall list which of the programs described in section
6152 are included in the scope of the agreement.
``(4) Use of funds to improve student achievement.--The local
flexibility demonstration agreement shall contain a 5-year plan
describing how the local educational agency intends to consolidate
and use the funds from programs included in the scope of the
agreement for any educational purpose authorized under this Act to
advance the education priorities of the local educational agency,
meet the general purposes of the included programs, improve student
achievement, and narrow achievement gaps in accordance with section
1111(b).
``(5) Local input.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will provide parents, teachers, and representatives of
schools with notice and an opportunity to comment on the proposed
terms of the local flexibility demonstration agreement.
``(6) Fiscal responsibilities.--The local flexibility
demonstration agreement shall contain an assurance that the local
educational agency will use fiscal control and fund accounting
procedures that will ensure proper disbursement of, and accounting
for, Federal funds consolidated and used under the agreement.
``(7) Civil rights.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will meet the requirements of all applicable Federal civil
rights laws in carrying out the agreement and in consolidating and
using the funds under the agreement.
``(8) Private school participation.--The local flexibility
demonstration agreement shall contain an assurance that the local
educational agency agrees that in consolidating and using funds
under the agreement--
``(A) the local educational agency, will provide for the
equitable participation of students and professional staff in
private schools consistent with section 9501; and
``(B) that sections 9502, 9503, and 9504 shall apply to all
services and assistance provided with such funds in the same
manner as such sections apply to services and assistance
provided in accordance with section 9501.
``(9) Supplanting.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will, for the duration of the grant of authority, use funds
consolidated under section 6152 only to supplement the amount of
funds that would, in the absence of those Federal funds, be made
available from non-Federal sources for the education of students
participating in programs assisted with the consolidated funds, and
not to supplant those funds.
``(10) Annual reports.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency shall, not later than 1 year after the date on which the
Secretary enters into the agreement, and annually thereafter during
the term of the agreement, disseminate widely to parents and the
general public, transmit to the Secretary, and the State
educational agency for the State in which the local educational
agency is located, distribute to print and broadcast media, and
post on the Internet, a report that includes a detailed description
of how the local educational agency used the funds consolidated
under the agreement to improve student academic achievement and
reduce achievement gaps.
``(d) Peer Review.--The Secretary shall--
``(1) establish a peer review process to assist in the review
of proposed local flexibility demonstration agreements under this
chapter; and
``(2) appoint individuals to the peer review process who are
representative of parents, teachers, State educational agencies,
and local educational agencies, and who are familiar with
educational standards, assessments, accountability, curriculum,
instruction and staff development, and other diverse educational
needs of students.
``(e) Amendment to Performance Agreement.--
``(1) In general.--In each of the following circumstances, the
Secretary shall amend a local flexibility demonstration agreement
entered into with a local educational agency under this chapter:
``(A) Reduction in scope of local flexibility demonstration
agreement.--Not later than 1 year after entering into a local
flexibility demonstration agreement, the local educational
agency seeks to amend the agreement to remove from the scope
any program described in section 6152.
``(B) Expansion of scope of local flexibility demonstration
agreement.--Not later than 1 year after entering into the local
flexibility demonstration agreement, a local educational agency
seeks to amend the agreement to include in its scope any
additional program described in section 6251 or any additional
achievement indicators for which the local educational agency
will be held accountable.
``(2) Approval and disapproval.--
``(A) Deemed approval.--A proposed amendment to a local
flexibility demonstration agreement pursuant to paragraph (1)
shall be deemed to be approved by the Secretary unless the
Secretary makes a written determination, prior to the
expiration of the 120-day period beginning on the date on which
the Secretary received the proposed amendment, that the
proposed amendment is not in compliance with this chapter.
``(B) Disapproval.--The Secretary shall not finally
disapprove the proposed amendment, except after giving the
local educational agency notice and an opportunity for a
hearing.
``(C) Notification.--If the Secretary finds that the
proposed amendment is not in compliance, in whole or in part,
with this chapter, the Secretary shall--
``(i) give the local educational agency notice and an
opportunity for a hearing; and
``(ii) notify the local educational agency of the
finding of noncompliance and, in such notification, shall--
``(I) cite the specific provisions in the proposed
amendment that are not in compliance; and
``(II) request additional information, only as to
the noncompliant provisions, needed to make the
proposed amendment compliant.
``(D) Response.--If the local educational agency responds
to the Secretary's notification described in subparagraph
(C)(ii) during the 45-day period beginning on the date on which
the agency received the notification, and resubmits the
proposed amendment with the requested information described in
subparagraph (C)(ii)(II), the Secretary shall approve or
disapprove such proposed amendment prior to the later of--
``(i) the expiration of the 45-day period beginning on
the date on which the proposed amendment is resubmitted; or
``(ii) the expiration of the 120-day period described
in subparagraph (A).
``(E) Failure to respond.--If the local educational agency
does not respond to the Secretary's notification described in
subparagraph (C)(ii) during the 45-day period beginning on the
date on which the agency received the notification, such
proposed amendment shall be deemed to be disapproved.
``(3) Treatment of program funds withdrawn from agreement.--
Beginning on the effective date of an amendment executed under
paragraph (1)(A), each program requirement of each program removed
from the scope of a local flexibility demonstration agreement shall
apply to the use of funds made available under the program by the
local educational agency.
``SEC. 6152. CONSOLIDATION AND USE OF FUNDS.
``(a) In General.--
``(1) Authority.--Under a local flexibility demonstration
agreement entered into under this chapter, a local educational
agency may consolidate Federal funds made available to the agency
under the provisions listed in subsection (b) and use such funds
for any educational purpose permitted under this Act.
``(2) Program requirements.--Except as otherwise provided in
this chapter, a local educational agency may use funds under
paragraph (1) notwithstanding the program requirements of the
program under which the funds were made available to the agency.
``(b) Eligible Programs.--Program funds made available to local
educational agencies on the basis of a formula under the following
provisions may be consolidated and used under subsection (a):
``(1) Subpart 2 of part A of title II.
``(2) Subpart 1 of part D of title II.
``(3) Subpart 1 of part A of title IV.
``(4) Subpart 1 of part A of title V.
``SEC. 6153. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.
``Each local educational agency that has entered into a local
flexibility demonstration agreement with the Secretary under this
chapter may use for administrative purposes not more than 4 percent of
the total amount of funds allocated to the agency under the programs
included in the scope of the agreement.
``SEC. 6154. PERFORMANCE REVIEW AND PENALTIES.
``(a) Midterm Review.--
``(1) Failure to make adequate yearly progress.--If, during the
term of a local flexibility demonstration agreement, a local
educational agency fails to make adequate yearly progress for 2
consecutive years, the Secretary shall, after notice and
opportunity for a hearing, promptly terminate the agreement.
``(2) Noncompliance.--The Secretary may, after providing notice
and an opportunity for a hearing (including the opportunity to
provide information as provided for in paragraph (3)), terminate a
local flexibility demonstration agreement under this chapter if
there is evidence that the local educational agency has failed to
comply with the terms of the agreement.
``(3) Evidence.--If a local educational agency believes that
the Secretary's determination under this subsection is in error for
statistical or other substantive reasons, the local educational
agency may provide supporting evidence to the Secretary, and the
Secretary shall consider that evidence before making a final early
termination determination.
``(b) Final Review.--If, at the end of the 5-year term of a local
flexibility demonstration agreement entered into under this chapter,
the local educational agency has not met the requirements described in
section 6151(c), the Secretary may not renew the agreement under
section 6155 and, beginning on the date on which such term ends, the
local educational agency shall be required to comply with each of the
program requirements in effect on such date for each program included
in the local flexibility demonstration agreement.
``SEC. 6155. RENEWAL OF LOCAL FLEXIBILITY DEMONSTRATION AGREEMENT.
``(a) In General.--Except as provided in section 6154 and in
accordance with this section, the Secretary shall renew for 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, the
local educational agency seeking the renewal notifies the Secretary of
its intention to renew.
``(c) Effective Date.--A renewal under this section shall be
effective at the end of the original term of the agreement or on the
date on which the local educational agency seeking renewal provides to
the Secretary all data required under the agreement, whichever is
later.
``SEC. 6156. REPORTS.
``(a) Transmittal to Congress.--Not later than 60 days after the
Secretary receives a report described in section 6151(b)(10), the
Secretary shall make the report available to the Committee on Education
and the Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate.
``(b) Limitation.--A State in which a local educational agency that
has a local flexibility demonstration agreement is located may not
require such local educational agency to provide any application
information with respect to the programs included within the scope of
that agreement other than that information that is required to be
included in the report described in section 6151(b)(10).
``Subpart 4--State Accountability for Adequate Yearly Progress
``SEC. 6161. ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.
``In the case of a State educational agency that has a plan
approved under subpart 1 of part A of title I after the date of
enactment of the No Child Left Behind Act of 2001, and has a plan
approved under subpart 1 of part A of title III of such Act after such
date of enactment, the Secretary shall annually, starting with the
beginning of the first school year following the first 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. PEER REVIEW.
``The Secretary shall use a peer review process to review, based on
data from the State assessments administered under section 1111(b)(3)
and on data from the evaluations conducted under section 3121, whether
the State has failed to make adequate yearly progress for 2 consecutive
years or whether the State has met its annual measurable achievement
objectives.
``SEC. 6163. TECHNICAL ASSISTANCE.
``(a) Provision of Assistance.--
``(1) Adequate yearly progress.--Based on the review described
in section 6161(1), the Secretary shall provide technical
assistance to a State that has failed to make adequate yearly
progress, as defined in section 1111(b)(2), for 2 consecutive
years. The Secretary shall provide such assistance not later than
the beginning of the first school year that begins after such
determination is made.
``(2) Annual measurable achievement objectives.--Based on the
reviews described in section 6161(2), the Secretary may provide
technical assistance to a State that has failed to meet its annual
measurable achievement objectives under section 3122(a) for 2
consecutive years. The Secretary shall provide such assistance not
later than the beginning of the first school year that begins after
such determination is made.
``(b) Characteristics.--The technical assistance described in
subsection (a) shall--
``(1) be valid, reliable and rigorous; and
``(2) provide constructive feedback to help the State make
adequate yearly progress, as defined in section 1111(b)(2), or meet
the annual measurable achievement objectives under section 3122(a).
``SEC. 6164. REPORT TO CONGRESS.
``Beginning with the school year that begins in 2005, the Secretary
shall submit an annual report to the Committee on Education and the
Workforce of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate containing the following:
``(1) A list of each State that has not made adequate yearly
progress based on the review conducted under section 6161(1).
``(2) A list of each State that has not met its annual
measurable achievement objectives based on the review conducted
under section 6161(2).
``(3) The information reported by the State to the Secretary
pursuant to section 1119(a).
``(4) A description of any technical assistance provided
pursuant to section 6163.
``PART B--RURAL EDUCATION INITIATIVE
``SEC. 6201. SHORT TITLE.
``This part may be cited as the `Rural Education Achievement
Program'.
``SEC. 6202. PURPOSE.
``It is the purpose of this part to address the unique needs of
rural school districts that frequently--
``(1) lack the personnel and resources needed to compete
effectively for Federal competitive grants; and
``(2) receive formula grant allocations in amounts too small to
be effective in meeting their intended purposes.
``Subpart 1--Small, Rural School Achievement Program
``SEC. 6211. USE OF APPLICABLE FUNDING.
``(a) Alternative Uses.--
``(1) In general.--Notwithstanding any other provision of law,
an eligible local educational agency may use the applicable funding
that the agency is eligible to receive from the State educational
agency for a fiscal year to carry out local activities authorized
under any of the following provisions:
``(A) Part A of title I.
``(B) Part A or D of title II.
``(C) Title III.
``(D) Part A or B of title IV.
``(E) Part A of title V.
``(2) Notification.--An eligible local educational agency shall
notify the State educational agency of the local educational
agency's intention to use the applicable funding in accordance with
paragraph (1), by a date that is established by the State
educational agency for the notification.
``(b) Eligibility.--
``(1) In general.--A local educational agency shall be eligible
to use the applicable funding in accordance with subsection (a)
if--
``(A)(i)(I) the total number of students in average daily
attendance at all of the schools served by the local
educational agency is fewer than 600; or
``(II) each county in which a school served by the local
educational agency is located has a total population density of
fewer than 10 persons per square mile; and
``(ii) all of the schools served by the local educational
agency are designated with a school locale code of 7 or 8, as
determined by the Secretary; or
``(B) the agency meets the criteria established in
subparagraph (A)(i) and the Secretary, in accordance with
paragraph (2), grants the local educational agency's request to
waive the criteria described in subparagraph (A)(ii).
``(2) Certification.--The Secretary shall determine whether to
waive the criteria described in paragraph (1)(A)(ii) based on a
demonstration by the local educational agency, and concurrence by
the State educational agency, that the local educational agency is
located in an area defined as rural by a governmental agency of the
State.
``(c) Applicable Funding Defined.--In this section, the term
`applicable funding' means funds provided under any of the following
provisions:
``(1) Subpart 2 and section 2412(a)(2)(A) of title II.
``(2) Section 4114.
``(3) Part A of title V.
``(d) Disbursement.--Each State educational agency that receives
applicable funding for a fiscal year shall disburse the applicable
funding to local educational agencies for alternative uses under this
section for the fiscal year at the same time as the State educational
agency disburses the applicable funding to local educational agencies
that do not intend to use the applicable funding for such alternative
uses for the fiscal year.
``(e) Applicable Rules.--Applicable funding under this section
shall be available to carry out local activities authorized under
subsection (a).
``SEC. 6212. GRANT PROGRAM AUTHORIZED.
``(a) In General.--The Secretary is authorized to award grants to
eligible local educational agencies to enable the local educational
agencies to carry out activities authorized under any of the following
provisions:
``(1) Part A of title I.
``(2) Part A or D of title II.
``(3) Title III.
``(4) Part A or B of title IV.
``(5) Part A of title V.
``(b) Allocation.--
``(1) In general.--Except as provided in paragraph (3), the
Secretary shall award a grant under subsection (a) to a local
educational agency eligible under section 6211(b) for a fiscal year
in an amount equal to the initial amount determined under paragraph
(2) for the fiscal year minus the total amount received by the
agency under the provisions of law described in section 6211(c) for
the preceding fiscal year.
``(2) Determination of initial amount.--The initial amount
referred to in paragraph (1) is equal to $100 multiplied by the
total number of students in excess of 50 students, in average daily
attendance at the schools served by the local educational agency,
plus $20,000, except that the initial amount may not exceed
$60,000.
``(3) Ratable adjustment.--
``(A) In general.--If the amount made available to carry
out this section for any fiscal year is not sufficient to pay
in full the amounts that local educational agencies are
eligible to receive under paragraph (1) for such year, the
Secretary shall ratably reduce such amounts for such year.
``(B) Additional amounts.--If additional funds become
available for making payments under paragraph (1) for such
fiscal year, payments that were reduced under subparagraph (A)
shall be increased on the same basis as such payments were
reduced.
``(c) Disbursement.--The Secretary shall disburse the funds awarded
to a local educational agency under this section for a fiscal year not
later than July 1 of that fiscal year.
``(d) Special Eligibility Rule.--A local educational agency that is
eligible to receive a grant under this subpart for a fiscal year is not
eligible to receive funds for such fiscal year under subpart 2.
``SEC. 6213. ACCOUNTABILITY.
``(a) Academic Achievement Assessment.--Each local educational
agency that uses or receives funds under this subpart for a fiscal year
shall administer an assessment that is consistent with section
1111(b)(3).
``(b) Determination Regarding Continuing Participation.--Each State
educational agency that receives funding under the provisions of law
described in section 6211(c) shall--
``(1) after the third year that a local educational agency in
the State participates in a program under this subpart and on the
basis of the results of the assessments described in subsection
(a), determine whether the local educational agency participating
in the program made adequate yearly progress, as described in
section 1111(b)(2);
``(2) permit only those local educational agencies that
participated and made adequate yearly progress, as described in
section 1111(b)(2), to continue to participate; and
``(3) permit those local educational agencies that participated
and failed to make adequate yearly progress, as described in
section 1111(b)(2), to continue to participate only if such local
educational agencies use applicable funding under this subpart to
carry out the requirements of section 1116.
``Subpart 2--Rural and Low-Income School Program
``SEC. 6221. PROGRAM AUTHORIZED.
``(a) Grants to States.--
``(1) In general.--From amounts appropriated under section 6234
for this subpart for a fiscal year that are not reserved under
subsection (c), the Secretary shall award grants (from allotments
made under paragraph (2)) for the fiscal year to State educational
agencies that have applications submitted under section 6223
approved to enable the State educational agencies to award grants
to eligible local educational agencies for local authorized
activities described in section 6222(a).
``(2) Allotment.--From amounts described in paragraph (1) for a
fiscal year, the Secretary shall allot to each State educational
agency for that fiscal year an amount that bears the same ratio to
those amounts as the number of students in average daily attendance
served by eligible local educational agencies in the State for that
fiscal year bears to the number of all such students served by
eligible local educational agencies in all States for that fiscal
year.
``(3) Specially qualified agencies.--
``(A) Eligibility and application.--If a State educational
agency elects not to participate in the program under this
subpart or does not have an application submitted under section
6223 approved, a specially qualified agency in such State
desiring a grant under this subpart may submit an application
under such section directly to the Secretary to receive an
award under this subpart.
``(B) Direct awards.--The Secretary may award, on a
competitive basis or by formula, the amount the State
educational agency is eligible to receive under paragraph (2)
directly to a specially qualified agency in the State that has
submitted an application in accordance with subparagraph (A)
and obtained approval of the application.
``(C) Specially qualified agency defined.--In this subpart,
the term `specially qualified agency' means an eligible local
educational agency served by a State educational agency that
does not participate in a program under this subpart in a
fiscal year, that may apply directly to the Secretary for a
grant in such year under this subsection.
``(b) Local Awards.--
``(1) Eligibility.--A local educational agency shall be
eligible to receive a grant under this subpart if--
``(A) 20 percent or more of the children ages 5 through 17
years served by the local educational agency are from families
with incomes below the poverty line; and
``(B) all of the schools served by the agency are
designated with a school locale code of 6, 7, or 8, as
determined by the Secretary.
``(2) Award basis.--A State educational agency shall award
grants to eligible local educational agencies--
``(A) on a competitive basis;
``(B) according to a formula based on the number of
students in average daily attendance served by the eligible
local educational agencies or schools in the State; or
``(C) according to an alternative formula, if, prior to
awarding the grants, the State educational agency demonstrates,
to the satisfaction of the Secretary, that the alternative
formula enables the State educational agency to allot the grant
funds in a manner that serves equal or greater concentrations
of children from families with incomes below the poverty line,
relative to the concentrations that would be served if the
State educational agency used the formula described in
subparagraph (B).
``(c) Reservations.--From amounts appropriated under section 6234
for this subpart for a fiscal year, the Secretary shall reserve--
``(1) 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. USES OF FUNDS.
``(a) Local Awards.--Grant funds awarded to local educational
agencies under this subpart shall be used for any of the following:
``(1) Teacher recruitment and retention, including the use of
signing bonuses and other financial incentives.
``(2) Teacher professional development, including programs that
train teachers to utilize technology to improve teaching and to
train special needs teachers.
``(3) Educational technology, including software and hardware,
as described in part D of title II.
``(4) Parental involvement activities.
``(5) Activities authorized under the Safe and Drug-Free
Schools program under part A of title IV.
``(6) Activities authorized under part A of title I.
``(7) Activities authorized under title III.
``(b) Administrative Costs.--A State educational agency receiving a
grant under this subpart may not use more than 5 percent of the amount
of the grant for State administrative costs and to provide technical
assistance to eligible local educational agencies.
``SEC. 6223. APPLICATIONS.
``(a) In General.--Each State educational agency or specially
qualified agency desiring to receive a grant under this subpart shall
submit an application to the Secretary at such time, in such manner,
and accompanied by such information as the Secretary may require.
``(b) Contents.--At a minimum, each application submitted under
subsection (a) shall include information on specific measurable goals
and objectives to be achieved through the activities carried out
through the grant, which may include specific educational goals and
objectives relating to--
``(1) increased student academic achievement;
``(2) decreased student dropout rates; or
``(3) such other factors as the State educational agency or
specially qualified agency may choose to measure.
``SEC. 6224. ACCOUNTABILITY.
``(a) State Report.--Each State educational agency that receives a
grant under this subpart shall prepare and submit an annual report to
the Secretary. The report shall describe--
``(1) the method the State educational agency used to award
grants to eligible local educational agencies, and to provide
assistance to schools, under this subpart;
``(2) how local educational agencies and schools used funds
provided under this subpart; and
``(3) the degree to which progress has been made toward meeting
the goals and objectives described in the application submitted
under section 6223.
``(b) Specially Qualified Agency Report.--Each specially qualified
agency that receives a grant under this subpart shall provide an annual
report to the Secretary. Such report shall describe--
``(1) how such agency uses funds provided under this subpart;
and
``(2) the degree to which progress has been made toward meeting
the goals and objectives described in the application submitted
under section 6223.
``(c) Report to Congress.--The Secretary shall prepare and submit
to the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a biennial report. The report shall describe--
``(1) the methods the State educational agencies used to award
grants to eligible local educational agencies, and to provide
assistance to schools, under this subpart;
local educational agencies and schools used funds provided
under this subpart; and
``(3) the degree to which progress has been made toward meeting
the goals and objectives described in the applications submitted
under section 6223.
``(d) Academic Achievement Assessment.--Each local educational
agency or specially qualified agency that receives a grant under this
subpart for a fiscal year shall administer an assessment that is
consistent with section 1111(b)(3).
``(e) Determination Regarding Continuing Participation.--Each State
educational agency or specially qualified agency that receives a grant
under this subpart shall--
``(1) after the third year that a local educational agency or
specially qualified agency in the State receives funds under this
subpart, and on the basis of the results of the assessments
described in subsection (d)--
``(A) in the case of a local educational agency, determine
whether the local educational agency made adequate yearly
progress, as described in section 1111(b)(2); and
``(B) in the case of a specially qualified agency, submit
to the Secretary information that would allow the Secretary to
determine whether the specially qualified agency has made
adequate yearly progress, as described in section 1111(b)(2);
``(2) permit only those local educational agencies or specially
qualified agencies that made adequate yearly progress, as described
in section 1111(b)(2), to continue to receive grants under this
subpart; and
``(3) permit those local educational agencies or specially
qualified agencies that failed to make adequate yearly progress, as
described in section 1111(b)(2), to continue to receive such grants
only if the State educational agency disbursed such grants to the
local educational agencies or specially qualified agencies to carry
out the requirements of section 1116.
``Subpart 3--General Provisions
``SEC. 6231. ANNUAL AVERAGE DAILY ATTENDANCE DETERMINATION.
``(a) Census Determination.--Each local educational agency desiring
a grant under section 6212 and each local educational agency or
specially qualified agency desiring a grant under subpart 2 shall--
``(1) not later than December 1 of each year, conduct a census
to determine the number of students in average daily attendance in
kindergarten through grade 12 at the schools served by the agency;
and
``(2) not later than March 1 of each year, submit the number
described in paragraph (1) to the Secretary (and to the State
educational agency, in the case of a local educational agency
seeking a grant under subpart (2)).
``(b) Penalty.--If the Secretary determines that a local
educational agency or specially qualified agency has knowingly
submitted false information under subsection (a) for the purpose of
gaining additional funds under section 6212 or subpart 2, then the
agency shall be fined an amount equal to twice the difference between
the amount the agency received under this section and the correct
amount the agency would have received under section 6212 or subpart 2
if the agency had submitted accurate information under subsection (a).
``SEC. 6232. SUPPLEMENT, NOT SUPPLANT.
``Funds made available under subpart 1 or subpart 2 shall be used
to supplement, and not supplant, any other Federal, State, or local
education funds.
``SEC. 6233. RULE OF CONSTRUCTION.
``Nothing in this part shall be construed to prohibit a local
educational agency that enters into cooperative arrangements with other
local educational agencies for the provision of special, compensatory,
or other education services, pursuant to State law or a written
agreement, from entering into similar arrangements for the use, or the
coordination of the use, of the funds made available under this part.
``SEC. 6234. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$300,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 5 succeeding fiscal years, to be distributed equally
between subparts 1 and 2.
``PART C--GENERAL PROVISIONS
``SEC. 6301. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR
CONTROL.
``Nothing in this title shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or control a
State, local educational agency, or school's specific instructional
content, academic achievement standards and assessments, curriculum, or
program of instruction, as a condition of eligibility to receive funds
under this Act.
``SEC. 6302. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.
``Nothing in this title shall be construed to mandate equalized
spending per pupil for a State, local educational agency, or school.''.
SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS ACT OF 1994.
(a) National Assessment of Educational Progress.--Section 411 of
the National Education Statistics Act of 1994 (20 U.S.C. 9010) is
amended to read as follows:
``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.
``(a) Establishment.--The Commissioner shall, with the advice of
the National Assessment Governing Board established under section 412,
and with the technical assistance of the Advisory Council established
under section 407, carry out, through grants, contracts, or cooperative
agreements with one or more qualified organizations, or consortia
thereof, a National Assessment of Educational Progress, which
collectively refers to a national assessment, State assessments, and a
long-term trend assessment in reading and mathematics.
``(b) Purpose; State Assessments.--
``(1) Purpose.--The purpose of this section is to provide, in a
timely manner, a fair and accurate measurement of student academic
achievement and reporting trends in such achievement in reading,
mathematics, and other subject matter as specified in this section.
``(2) Measurement and reporting.--The Commissioner, in carrying
out the measurement and reporting described in paragraph (1),
shall--
``(A) use a random sampling process which is consistent
with relevant, widely accepted professional assessment
standards and that produces data that are representative on a
national and regional basis;
``(B) conduct a national assessment and collect and report
assessment data, including achievement data trends, in a valid
and reliable manner on student academic achievement in public
and private elementary schools and secondary schools at least
once every 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 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 students
administered as a part of a State assessment prior to the
release of such data. Refusal by a State to release its
data shall not restrict the release of data from other
States that have approved the release of such data.
``(ii) Special rule.--A State participating in the
biennial academic assessments of student achievement in
reading and mathematics in grades 4 and 8 shall be deemed
to have given its permission to release its data if the
State has an approved plan under section 1111 of the
Elementary and Secondary Education Act of 1965.
``(4) Prohibited activities.--
``(A) In general.--The use of assessment items and data on
any assessment authorized under this section by an agent or
agents of the Federal Government to rank, compare, or otherwise
evaluate individual students or teachers, or to provide rewards
or sanctions for individual students, teachers, schools or
local educational agencies is prohibited.
``(B) Special rule.--Any assessment authorized under this
section shall not be used by an agent or agents of the Federal
Government to establish, require, or influence the standards,
assessments, curriculum, including lesson plans, textbooks, or
classroom materials, or instructional practices of States or
local educational agencies.
``(C) Applicability to student educational decisions.--
Nothing in this section shall be construed to prescribe the use
of any assessment authorized under this section for student
promotion or graduation purposes.
``(D) Applicability to home schools.--Nothing in this
section shall be construed to affect home schools, whether or
not a home school is treated as a home school or a private
school under State law, nor shall any home schooled student be
required to participate in any assessment referenced or
authorized under this section.
``(5) Requirement.--In carrying out any assessment authorized
under this section, the Commissioner, in a manner consistent with
subsection (c)(2), shall--
``(A) use widely accepted professional testing standards,
objectively measure academic achievement, knowledge, and
skills, and ensure that any academic assessment authorized
under this section be tests that do not evaluate or assess
personal or family beliefs and attitudes or publicly disclose
personally identifiable information;
``(B) only collect information that is directly related to
the appraisal of academic achievement, and to the fair and
accurate presentation of such information; and
``(C) collect information on race, ethnicity, socioeconomic
status, disability, limited English proficiency, and gender.
``(6) Technical assistance.--In carrying out any assessment
authorized under this section, the Commissioner may provide
technical assistance to States, localities, and other parties.
``(c) Access.--
``(1) Public access.--
``(A) In general.--Except as provided in paragraph (3),
parents and members of the public shall have access to all
assessment data, questions, and complete and current assessment
instruments of any assessment authorized under this section.
The local educational agency shall make reasonable efforts to
inform parents and members of the public about the access
required under this paragraph.
``(B) Timeline.--The access described in this paragraph
shall be provided within 45 days of the date the request was
made, in writing, and be made available in a secure setting
that is convenient to both parties.
``(C) Prohibition.--To protect the integrity of the
assessment, no copy of the assessment items or assessment
instruments shall be duplicated or taken from the secure
setting.
``(2) Complaints.--
``(A) In general.--Parents and members of the public may
submit written complaints to the National Assessment Governing
Board.
``(B) Forwarding of complaints.--The National Assessment
Governing Board shall forward such complaints to the
Commissioner, the Secretary of Education, and the State and
local educational agency from within which the complaint
originated within 30 days of receipt of such complaint.
``(C) Review.--The National Assessment Governing Board, in
consultation with the Commissioner, shall review such complaint
and determine whether revisions are necessary and appropriate.
As determined by such review, the Board shall revise, as
necessary and appropriate, the procedures or assessment items
that have generated the complaint and respond to the individual
submitting the complaint, with a copy of such response provided
to the Secretary, describing any action taken, not later than
30 days after so acting.
``(D) Report.--The Secretary shall submit a summary report
of all complaints received pursuant to subparagraph (A) and
responses by the National Assessment Governing Board pursuant
to subparagraph (B) to the Chairman of the House Committee on
Education and the Workforce, and the Chairman of the Senate
Committee on Health, Education, Labor, and Pensions.
``(E) Cognitive questions.--
``(i) In general.--The Commissioner may decline to make
available through public means, such as posting on the
Internet, distribution to the media, distribution through
public agencies, or in response to a request under section
552 of title 5, United States Code, for a period, not to
exceed 10 years after initial use, cognitive questions that
the Commissioner intends to reuse in the future.
``(ii) Extension.--Notwithstanding clause (i), the
Commissioner may decline to make cognitive questions
available as described in clause (i) for a period longer
than 10 years if the Commissioner determines such
additional period is necessary to protect the security and
integrity of long-term trend data.
``(3) Personally identifiable information.--
``(A) In general.--The Commissioner shall ensure that all
personally identifiable information about students, their
academic achievement, and their families, and that information
with respect to individual schools, remains confidential, in
accordance with section 552a of title 5, United States Code.
``(B) Prohibition.--The National Board, the Commissioner,
and any contractor or subcontractor shall not maintain any
system of records containing a student's name, birth
information, Social Security number, or parents' name or names,
or any other personally identifiable information.
``(4) Penalties.--Any unauthorized person who knowingly
discloses, publishes, or uses assessment questions, or complete and
current assessment instruments of any assessment authorized under
this section may be fined as specified in section 3571 of title 18,
United States Code or charged with a class E felony.
``(d) Participation.--
``(1) Voluntary participation.--Participation in any assessment
authorized under this section shall be voluntary for students,
schools, and local educational agencies.
``(2) Student participation.--Parents of children selected to
participate in any assessment authorized under this section shall
be informed before the administration of any authorized assessment,
that their child may be excused from participation for any reason,
is not required to finish any authorized assessment, and is not
required to answer any test question.
``(3) State participation.--
``(A) Voluntary.--Participation in assessments authorized
under this section, other than reading and mathematics in
grades 4 and 8, shall be voluntary.
``(B) Agreement.--For reading and mathematics assessments
in grades 4 and 8, the Secretary shall enter into an agreement
with any State carrying out an assessment for the State under
this section. Each such agreement shall contain provisions
designed to ensure that the State will participate in the
assessment.
``(4) Review.--Representatives of State educational agencies
and local educational agencies or the chief State school officer
shall have the right to review any assessment item or procedure of
any authorized assessment upon request in a manner consistent with
subsection (c), except the review described in subparagraph (2)(C)
of subsection (c) shall take place in consultation with the
representatives described in this paragraph.
``(e) Student Achievement Levels.--
``(1) Achievement levels.--The National Assessment Governing
Board shall develop appropriate student achievement levels for each
grade or age in each subject area to be tested under assessments
authorized under this section, except the trend assessment
described in subsection (b)(2)(F).
``(2) Determination of levels.--
``(A) In general.--Such levels shall--
``(i) be determined by--
``(I) identifying the knowledge that can be
measured and verified objectively using widely accepted
professional assessment standards; and
``(II) developing achievement levels that are
consistent with relevant widely accepted professional
assessment standards and based on the appropriate level
of subject matter knowledge for grade levels to be
assessed, or the age of the students, as the case may
be.
``(B) National consensus approach.--After the
determinations described in subparagraph (A), devising a
national consensus approach.
``(C) Trial basis.--The achievement levels shall be used on
a trial basis until the Commissioner determines, as a result of
an evaluation under subsection (f), that such levels are
reasonable, valid, and informative to the public.
``(D) Status.--The Commissioner and the Board shall ensure
that reports using such levels on a trial basis do so in a
manner that makes clear the status of such levels.
``(E) Updates.--Such levels shall be updated as appropriate
by the National Assessment Governing Board in consultation with
the Commissioner.
``(3) Reporting.--After determining that such levels are
reasonable, valid, and informative to the public, as the result of
an evaluation under subsection (f), the Commissioner shall use such
levels or other methods or indicators for reporting results of the
National Assessment and State assessments.
``(4) Review.--The National Assessment Governing Board shall
provide for a review of any trial student achievement levels under
development by representatives of State educational agencies or the
chief State school officer in a manner consistent with subsection
(c), except the review described in subparagraph (2)(C) shall take
place in consultation with the representatives described in this
paragraph.
``(f) Review of National and State Assessments.--
``(1) Review.--
``(A) In general.--The Secretary shall provide for
continuing review of any assessment authorized under this
section, and student achievement levels, by 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;
``(iv) whether any of the test questions are biased, as
described in section 412(e)(4); and
``(v) whether the appropriate authorized assessments
are measuring, consistent with this section, reading
ability and mathematical knowledge.
``(2) Report.--The Secretary shall report to the Committee on
Education and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the Senate,
the President, and the Nation on the findings and recommendations
of such reviews.
``(3) Use of findings and recommendations.--The Commissioner
and the National Assessment Governing Board shall consider the
findings and recommendations of such reviews in designing the
competition to select the organization, or organizations, through
which the Commissioner carries out the National Assessment.
``(g) Coverage Agreements.--
``(1) Department of defense schools.--The Secretary and the
Secretary of Defense may enter into an agreement, including such
terms as are mutually satisfactory, to include in the National
Assessment elementary schools and secondary schools operated by the
Department of Defense.
``(2) Bureau of indian affairs schools.--The Secretary and the
Secretary of the Interior may enter into an agreement, including
such terms as are mutually satisfactory, to include in the National
Assessment schools for Indian children operated or supported by the
Bureau of Indian Affairs.''.
(b) National Assessment Governing Board.--Section 412 of the
National Education Statistics Act of 1994 (20 U.S.C. 9011) is amended
to read as follows:
``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.
``(a) Establishment.--There is established the National Assessment
Governing Board (hereafter in this title referred to as the `Board'),
which shall formulate policy guidelines for the National Assessment.
``(b) Membership.--
``(1) Appointment and composition.--The Board shall be
appointed by the Secretary and be composed as follows:
``(A) Two Governors, or former Governors, who shall not be
members of the same political party.
``(B) Two State legislators, who shall not be members of
the same political party.
``(C) Two chief State school officers.
``(D) One superintendent of a local educational agency.
``(E) One member of a State board of education.
``(F) One member of a local board of education.
``(G) Three classroom teachers representing the grade
levels at which the National Assessment is conducted.
``(H) One representative of business or industry.
``(I) Two curriculum specialists.
``(J) Three testing and measurement experts, who shall have
training and experience in the field of testing and
measurement.
``(K) One nonpublic school administrator or policymaker.
``(L) Two school principals, of whom one shall be an
elementary school principal and one shall be a secondary school
principal.
``(M) Two parents who are not employed by a local, State or
Federal educational agency.
``(N) Two additional members who are representatives of the
general public, and who may be parents, but who are not
employed by a local, State, or Federal educational agency.
``(2) Assistant secretary for educational research.--The
Assistant Secretary for Educational Research and Improvement shall
serve as an ex officio, nonvoting member of the Board.
``(3) Balance and diversity.--The Secretary and the Board shall
ensure at all times that the membership of the Board reflects
regional, racial, gender, and cultural balance and diversity and
that the Board exercises its independent judgment, free from
inappropriate influences and special interests.
``(c) Terms.--
``(1) In general.--Terms of service of members of the Board
shall be staggered and may not exceed a period of 4 years, as
determined by the Secretary.
``(2) Service limitation.--Members of the Board may serve not
more than two terms.
``(3) Change of status.--A member of the Board who changes
status under subsection (b) during the term of the appointment of
the member may continue to serve as a member until the expiration
of such term.
``(4) Conforming provision.--Members of the Board previously
granted 3 year terms, whose terms are in effect on the date of
enactment of the Department of Education Appropriations Act, 2001,
shall have their terms extended by 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));
``(B) develop appropriate student achievement levels as
provided in section 411(e);
``(C) develop assessment objectives consistent with the
requirements of this section and test specifications that
produce an assessment that is valid and reliable, and are based
on relevant widely accepted professional standards;
``(D) develop a process for review of the assessment which
includes the active participation of teachers, curriculum
specialists, local school administrators, parents, and
concerned members of the public;
``(E) design the methodology of the assessment to ensure
that assessment items are valid and reliable, in consultation
with appropriate technical experts in measurement and
assessment, content and subject matter, sampling, and other
technical experts who engage in large scale surveys, including
the Advisory Council established under section 407;
``(F) consistent with section 411, measure student academic
achievement in grades 4, 8, and 12 in the authorized academic
subjects;
``(G) develop guidelines for reporting and disseminating
results;
``(H) develop standards and procedures for regional and
national comparisons; and
``(I) take appropriate actions needed to improve the form,
content, use, and reporting of results of any assessment
authorized by section 411 consistent with the provisions of
this section and section 411.
``(2) Delegation.--The Board may delegate any of the Board's
procedural and administrative functions to its staff.
``(3) All cognitive and noncognitive assessment items.--The
Board shall have final authority on the appropriateness of all
assessment items.
``(4) Prohibition against bias.--The Board shall take steps to
ensure that all items selected for use in the National Assessment
are free from racial, cultural, gender, or regional bias and are
secular, neutral, and non-ideological.
``(5) Technical.--In carrying out the duties required by
paragraph (1), the Board may seek technical advice, as appropriate,
from the Commissioner and the Advisory Council on Education
Statistics and other experts.
``(6) Report.--Not later than 90 days after an evaluation of
the student achievement levels under section 411(e), the Board
shall make a report to the Secretary, the Committee on Education
and the Workforce of the House of Representatives, and the
Committee on Health, Education, Labor, and Pensions of the Senate
describing the steps the Board is taking to respond to each of the
recommendations contained in such evaluation.
``(f) Personnel.--
``(1) In general.--In the exercise of its responsibilities, the
Board shall be independent of the Secretary and the other offices
and officers of the Department.
``(2) Staff.--
``(A) In general.--The Secretary may appoint, at the
request of the Board, such staff as will enable the Board to
carry out its responsibilities.
``(B) Technical employees.--Such appointments may include,
for terms not to exceed 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. STATEMENT OF POLICY.
``It is the policy of the United States to fulfill the Federal
Government's unique and continuing trust relationship with and
responsibility to the Indian people for the education of Indian
children. The Federal Government will continue to work with local
educational agencies, Indian tribes and organizations, postsecondary
institutions, and other entities toward the goal of ensuring that
programs that serve Indian children are of the highest quality and
provide for not only the basic elementary and secondary educational
needs, but also the unique educational and culturally related academic
needs of these children.
``SEC. 7102. PURPOSE.
``(a) Purpose.--It is the purpose of this part to support the
efforts of local educational agencies, Indian tribes and organizations,
postsecondary institutions, and other entities to meet the unique
educational and culturally related academic needs of American Indian
and Alaska Native students, so that such students can meet the same
challenging State student academic achievement standards as all other
students are expected to meet.
``(b) Programs.--This part carries out the purpose described in
subsection (a) by authorizing programs of direct assistance for--
``(1) meeting the unique educational and culturally related
academic needs of American Indians and Alaska Natives;
``(2) the education of Indian children and adults;
``(3) the training of Indian persons as educators and
counselors, and in other professions serving Indian people; and
``(4) research, evaluation, data collection, and technical
assistance.
``Subpart 1--Formula Grants to Local Educational Agencies
``SEC. 7111. PURPOSE.
``It is the purpose of this subpart to support local educational
agencies in their efforts to reform elementary school and secondary
school programs that serve Indian students in order to ensure that such
programs--
``(1) are based on challenging State academic content and
student academic achievement standards that are used for all
students; and
``(2) are designed to assist Indian students in meeting those
standards.
``SEC. 7112. GRANTS TO LOCAL EDUCATIONAL AGENCIES AND TRIBES.
``(a) In General.--The Secretary may make grants, from allocations
made under section 7113, to local educational agencies and Indian
tribes, in accordance with this section and section 7113.
``(b) Local Educational Agencies.--
``(1) Enrollment requirements.--A local educational agency
shall be eligible for a grant under this subpart for any fiscal
year if the number of Indian children eligible under section 7117
who were enrolled in the schools of the agency, and to whom the
agency provided free public education, during the preceding fiscal
year--
``(A) was at least 10; or
``(B) constituted not less than 25 percent of the total
number of individuals enrolled in the schools of such agency.
``(2) Exclusion.--The requirement of paragraph (1) shall not
apply in Alaska, California, or Oklahoma, or with respect to any
local educational agency located on, or in proximity to, a
reservation.
``(c) Indian Tribes.--
``(1) In general.--If a local educational agency that is
otherwise eligible for a grant under this subpart does not
establish a committee under section 7114(c)(4) for such grant, an
Indian tribe that represents not less than \1/2\ of the eligible
Indian children who are served by such local educational agency may
apply for such grant.
``(2) Special rule.--The Secretary shall treat each Indian
tribe applying for a grant pursuant to paragraph (1) as if such
Indian tribe were a local educational agency for purposes of this
subpart, except that any such tribe is not subject to section
7114(c)(4), section 7118(c), or section 7119.
``SEC. 7113. AMOUNT OF GRANTS.
``(a) Amount of Grant Awards.--
``(1) In general.--Except as provided in subsection (b) and
paragraph (2), the Secretary shall allocate to each local
educational agency that has an approved application under this
subpart an amount equal to the product of--
``(A) the number of Indian children who are eligible under
section 7117 and served by such agency; and
``(B) the greater of--
``(i) the average per pupil expenditure of the State in
which such agency is located; or
``(ii) 80 percent of the average per pupil expenditure
of all the States.
``(2) Reduction.--The Secretary shall reduce the amount of each
allocation otherwise determined under this section in accordance
with subsection (e).
``(b) Minimum Grant.--
``(1) In general.--Notwithstanding subsection (e), an entity
that is eligible for a grant under section 7112, and a school that
is operated or supported by the Bureau of Indian Affairs that is
eligible for a grant under subsection (d), that submits an
application that is approved by the Secretary, shall, subject to
appropriations, receive a grant under this subpart in an amount
that is not less than $3,000.
``(2) Consortia.--Local educational agencies may form a
consortium for the purpose of obtaining grants under this subpart.
``(3) Increase.--The Secretary may increase the minimum grant
under paragraph (1) to not more than $4,000 for all grantees if the
Secretary determines such increase is necessary to ensure the
quality of the programs provided.
``(c) Definition.--For the purpose of this section, the term
`average per pupil expenditure', used with respect to a State, means an
amount equal to--
``(1) the sum of the aggregate current expenditures of all the
local educational agencies in the State, plus any direct current
expenditures by the State for the operation of such agencies,
without regard to the sources of funds from which such local or
State expenditures were made, during the second fiscal year
preceding the fiscal year for which the computation is made;
divided by
``(2) the aggregate number of children who were included in
average daily attendance for whom such agencies provided free
public education during such preceding fiscal year.
``(d) Schools Operated or Supported by the Bureau of Indian
Affairs.--
``(1) In general.--Subject to subsection (e), in addition to
the grants awarded under subsection (a), the Secretary shall
allocate to the Secretary of the Interior an amount equal to the
product of--
``(A) the total number of Indian children enrolled in
schools that are operated by--
``(i) the Bureau of Indian Affairs; or
``(ii) an Indian tribe, or an organization controlled
or sanctioned by an Indian tribal government, for the
children of that tribe under a contract with, or grant
from, the Department of the Interior under the Indian Self-
Determination Act or the Tribally Controlled Schools Act of
1988; and
``(B) the greater of--
``(i) the average per pupil expenditure of the State in
which the school is located; or
``(ii) 80 percent of the average per pupil expenditure
of all the States.
``(2) Special rule.--Any school described in paragraph (1)(A)
that wishes to receive an allocation under this subpart shall
submit an application in accordance with section 7114, and shall
otherwise be treated as a local educational agency for the purpose
of this subpart, except that such school shall not be subject to
section 7114(c)(4), section 7118(c), or section 7119.
``(e) Ratable Reductions.--If the sums appropriated for any fiscal
year under section 7152(a) are insufficient to pay in full the amounts
determined for local educational agencies under subsection (a)(1) and
for the Secretary of the Interior under subsection (d), each of those
amounts shall be ratably reduced.
``SEC. 7114. APPLICATIONS.
``(a) Application Required.--Each local educational agency that
desires to receive a grant under this subpart shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(b) Comprehensive Program Required.--Each application submitted
under subsection (a) shall include a description of a comprehensive
program for meeting the needs of Indian children served by the local
educational agency, including the language and cultural needs of the
children, that--
``(1) describes how the comprehensive program will offer
programs and activities to meet the culturally related academic
needs of American Indian and Alaska Native students;
``(2)(A) is consistent with the State and local plans submitted
under other provisions of this Act; and
``(B) includes academic content and student academic
achievement goals for such children, and benchmarks for attaining
such goals, that are based on the challenging State academic
content and student academic achievement standards adopted under
title I for all children;
``(3) explains how Federal, State, and local programs,
especially programs carried out under title I, will meet the needs
of such students;
``(4) demonstrates how funds made available under this subpart
will be used for activities described in section 7115;
``(5) describes the professional development opportunities that
will be provided, as needed, to ensure that--
``(A) teachers and other school professionals who are new
to the Indian community are prepared to work with Indian
children; and
``(B) all teachers who will be involved in programs
assisted under this subpart have been properly trained to carry
out such programs; and
``(6) describes how the local educational agency--
``(A) will periodically assess the progress of all Indian
children enrolled in the schools of the local educational
agency, including Indian children who do not participate in
programs assisted under this subpart, in meeting the goals
described in paragraph (2);
``(B) will provide the results of each assessment referred
to in subparagraph (A) to--
``(i) the committee described in subsection (c)(4); and
``(ii) the community served by the local educational
agency; and
``(C) is responding to findings of any previous assessments
that are similar to the assessments described in subparagraph
(A).
``(c) Assurances.--Each application submitted under subsection (a)
shall include assurances that--
``(1) the local educational agency will use funds received
under this subpart only to supplement the funds that, in the
absence of the Federal funds made available under this subpart,
such agency would make available for the education of Indian
children, and not to supplant such funds;
``(2) the local educational agency will prepare and submit to
the Secretary such reports, in such form and containing such
information, as the Secretary may require to--
``(A) carry out the functions of the Secretary under this
subpart; and
``(B) determine the extent to which activities carried out
with funds provided to the local educational agency under this
subpart are effective in improving the educational achievement
of Indian students served by such agency;
``(3) the program for which assistance is sought--
``(A) is based on a comprehensive local assessment and
prioritization of the unique educational and culturally related
academic needs of the American Indian and Alaska Native
students for whom the local educational agency is providing an
education;
``(B) will use the best available talents and resources,
including individuals from the Indian community; and
``(C) was developed by such agency in open consultation
with parents of Indian children and teachers, and, if
appropriate, Indian students from secondary schools, including
through public hearings held by such agency to provide to the
individuals described in this subparagraph a full opportunity
to understand the program and to offer recommendations
regarding the program; and
``(4) the local educational agency developed the program with
the participation and written approval of a committee--
``(A) that is composed of, and selected by--
``(i) parents of Indian children in the local
educational agency's schools;
``(ii) teachers in the schools; and
``(iii) if appropriate, Indian students attending
secondary schools of the agency;
``(B) a majority of whose members are parents of Indian
children;
``(C) that has set forth such policies and procedures,
including policies and procedures relating to the hiring of
personnel, as will ensure that the program for which assistance
is sought will be operated and evaluated in consultation with,
and with the involvement of, parents of the children, and
representatives of the area, to be served;
``(D) with respect to an application describing a
schoolwide program in accordance with section 7115(c), that
has--
``(i) reviewed in a timely fashion the program; and
``(ii) determined that the program will not diminish
the availability of culturally related activities for
American Indian and Alaska Native students; and
``(E) that has adopted reasonable bylaws for the conduct of
the activities of the committee and abides by such bylaws.
``SEC. 7115. AUTHORIZED SERVICES AND ACTIVITIES.
``(a) General Requirements.--Each local educational agency that
receives a grant under this subpart shall use the grant funds, in a
manner consistent with the purpose specified in section 7111, for
services and activities that--
(1) are designed to carry out the comprehensive program of the
local educational agency for Indian students, and described in the
application of the local educational agency submitted to the
Secretary under section 7114(a);
``(2) are designed with special regard for the language and
cultural needs of the Indian students; and
``(3) supplement and enrich the regular school program of such
agency.
``(b) Particular Activities.--The services and activities referred
to in subsection (a) may include--
``(1) culturally related activities that support the program
described in the application submitted by the local educational
agency;
``(2) early childhood and family programs that emphasize school
readiness;
``(3) enrichment programs that focus on problem solving and
cognitive skills development and directly support the attainment of
challenging State academic content and student academic achievement
standards;
``(4) integrated educational services in combination with other
programs that meet the needs of Indian children and their families;
``(5) career preparation activities to enable Indian students
to participate in programs such as the programs supported by the
Carl D. Perkins Vocational and Technical Education Act of 1998,
including programs for tech-prep education, mentoring, and
apprenticeship;
``(6) activities to educate individuals concerning substance
abuse and to prevent substance abuse;
``(7) the acquisition of equipment, but only if the acquisition
of the equipment is essential to achieve the purpose described in
section 7111;
``(8) activities that promote the incorporation of culturally
responsive teaching and learning strategies into the educational
program of the local educational agency;
``(9) activities that incorporate American Indian and Alaska
Native specific curriculum content, consistent with State
standards, into the curriculum used by the local educational
agency;
``(10) family literacy services; and
``(11) activities that recognize and support the unique
cultural and educational needs of Indian children, and incorporate
appropriately qualified tribal elders and seniors.
``(c) Schoolwide Programs.--Notwithstanding any other provision of
law, a local educational agency may use funds made available to such
agency under this subpart to support a schoolwide program under section
1114 if--
``(1) the committee established pursuant to section 7114(c)(4)
approves the use of the funds for the schoolwide program; and
``(2) the schoolwide program is consistent with the purpose
described in section 7111.
``(d) Limitation on Administrative Costs.--Not more than 5 percent
of the funds provided to a grantee under this subpart for any fiscal
year may be used for administrative purposes.
``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.
``(a) Plan.--An entity receiving funds under this subpart may
submit a plan to the Secretary for the integration of education and
related services provided to Indian students.
``(b) Consolidation of Programs.--Upon the receipt of an acceptable
plan under subsection (a), the Secretary, in cooperation with each
Federal agency providing grants for the provision of education and
related services to the entity, shall authorize the entity to
consolidate, in accordance with such plan, the federally funded
education and related services programs of the entity and the Federal
programs, or portions of the programs, serving Indian students in a
manner that integrates the program services involved into a single,
coordinated, comprehensive program and reduces administrative costs by
consolidating administrative functions.
``(c) Programs Affected.--The funds that may be consolidated in a
demonstration project under any such plan referred to in subsection (a)
shall include funds for any Federal program exclusively serving Indian
children, or the funds reserved under any Federal program to
exclusively serve Indian children, under which the entity is eligible
for receipt of funds under a statutory or administrative formula for
the purposes of providing education and related services that would be
used to serve Indian students.
``(d) Plan Requirements.--For a plan to be acceptable pursuant to
subsection (b), the plan shall--
``(1) identify the programs or funding sources to be
consolidated;
``(2) be consistent with the objectives of this section
concerning authorizing the services to be integrated in a
demonstration project;
``(3) describe a comprehensive strategy that identifies the
full range of potential educational opportunities and related
services to be provided to assist Indian students to achieve the
objectives set forth in this subpart;
``(4) describe the way in which services are to be integrated
and delivered and the results expected from the plan;
``(5) identify the projected expenditures under the plan in a
single budget;
``(6) identify the State, tribal, or local agency or agencies
to be involved in the delivery of the services integrated under the
plan;
``(7) identify any statutory provisions, regulations, policies,
or procedures that the entity believes need to be waived in order
to implement the plan;
``(8) set forth measures for academic content and student
academic achievement goals designed to be met within a specific
period of time; and
``(9) be approved by a committee formed in accordance with
section 7114(c)(4), if such a committee exists.
``(e) Plan Review.--Upon receipt of the plan from an eligible
entity, the Secretary shall consult with the Secretary of each Federal
department providing funds to be used to implement the plan, and with
the entity submitting the plan. The parties so consulting shall
identify any waivers of statutory requirements or of Federal
departmental regulations, policies, or procedures necessary to enable
the entity to implement the plan. Notwithstanding any other provision
of law, the Secretary of the affected department shall have the
authority to waive any regulation, policy, or procedure promulgated by
that department that has been so identified by the entity or
department, unless the Secretary of the affected department determines
that such a waiver is inconsistent with the objectives of this subpart
or those provisions of the statute from which the program involved
derives authority that are specifically applicable to Indian students.
``(f) Plan Approval.--Within 90 days after the receipt of an
entity's plan by the Secretary, the Secretary shall inform the entity,
in writing, of the Secretary's approval or disapproval of the plan. If
the plan is disapproved, the entity shall be informed, in writing, of
the reasons for the disapproval and shall be given an opportunity to
amend the plan or to petition the Secretary to reconsider such
disapproval.
``(g) Responsibilities of Department of Education.--Not later than
180 days after the date of enactment of the No Child Left Behind Act of
2001, the Secretary of Education, the Secretary of the Interior, and
the head of any other Federal department or agency identified by the
Secretary of Education, shall enter into an interdepartmental
memorandum of agreement providing for the implementation of the
demonstration projects authorized under this section. The lead agency
head for a demonstration project under this section shall be--
``(1) the Secretary of the Interior, in the case of an entity
meeting the definition of a contract or grant school under title XI
of the Education Amendments of 1978; or
``(2) the Secretary of Education, in the case of any other
entity.
``(h) Responsibilities of Lead Agency.--The responsibilities of the
lead agency shall include--
``(1) the use of a single report format related to the plan for
the individual project, which shall be used by an eligible entity
to report on the activities undertaken under the project;
``(2) the use of a single report format related to the
projected expenditures for the individual project which shall be
used by an eligible entity to report on all project expenditures;
``(3) the development of a single system of Federal oversight
for the project, which shall be implemented by the lead agency; and
``(4) the provision of technical assistance to an eligible
entity appropriate to the project, except that an eligible entity
shall have the authority to accept or reject the plan for providing
such technical assistance and the technical assistance provider.
``(i) Report Requirements.--A single report format shall be
developed by the Secretary, consistent with the requirements of this
section. Such report format shall require that reports described in
subsection (h), together with records maintained on the consolidated
program at the local level, shall contain such information as will
allow a determination that the eligible entity has complied with the
requirements incorporated in its approved plan, including making a
demonstration of student academic achievement, and will provide
assurances to each Secretary that the eligible entity has complied with
all directly applicable statutory requirements and with those directly
applicable regulatory requirements that have not been waived.
``(j) No Reduction in Amounts.--In no case shall the amount of
Federal funds available to an eligible entity involved in any
demonstration project be reduced as a result of the enactment of this
section.
``(k) Interagency Fund Transfers Authorized.--The Secretary is
authorized to take such action as may be necessary to provide for an
interagency transfer of funds otherwise available to an eligible entity
in order to further the objectives of this section.
``(l) Administration of Funds.--
``(1) In general.--Program funds for the consolidated programs
shall be administered in such a manner as to allow for a
determination that funds from a specific program are spent on
allowable activities authorized under such program, except that the
eligible entity shall determine the proportion of the funds granted
that shall be allocated to such program.
``(2) Separate records not required.--Nothing in this section
shall be construed as requiring the eligible entity to maintain
separate records tracing any services or activities conducted under
the approved plan to the individual programs under which funds were
authorized for the services or activities, nor shall the eligible
entity be required to allocate expenditures among such individual
programs.
``(m) Overage.--The eligible entity may commingle all
administrative funds from the consolidated programs and shall be
entitled to the full amount of such funds (under each program's or
agency's regulations). The overage (defined as the difference between
the amount of the commingled funds and the actual administrative cost
of the programs) shall be considered to be properly spent for Federal
audit purposes, if the overage is used for the purposes provided for
under this section.
``(n) Fiscal Accountability.--Nothing in this part shall be
construed so as to interfere with the ability of the Secretary or the
lead agency to fulfill the responsibilities for the safeguarding of
Federal funds pursuant to chapter 75 of title 31, United States Code.
``(o) Report on Statutory Obstacles to Program Integration.--
``(1) Preliminary report.--Not later than 2 years after the
date of enactment of the No Child Left Behind Act of 2001, the
Secretary of Education shall submit a preliminary report to the
Committee on Education and the Workforce and the Committee on
Resources of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions and the Committee on Indian
Affairs of the Senate on the status of the implementation of the
demonstration projects authorized under this section.
``(2) Final report.--Not later than 5 years after the date of
enactment of the No Child Left Behind Act of 2001, the Secretary of
Education shall submit a report to the Committee on Education and
the Workforce and the Committee on Resources of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions and the Committee on Indian Affairs of the Senate on the
results of the implementation of the demonstration projects
authorized under this section. Such report shall identify statutory
barriers to the ability of participants to integrate more
effectively their education and related services to Indian students
in a manner consistent with the objectives of this section.
``(p) Definitions.--For the purposes of this section, the term
`Secretary' means--
``(1) the Secretary of the Interior, in the case of an entity
meeting the definition of a contract or grant school under title XI
of the Education Amendments of 1978; or
``(2) the Secretary of Education, in the case of any other
entity.
``SEC. 7117. STUDENT ELIGIBILITY FORMS.
``(a) In General.--The Secretary shall require that, as part of an
application for a grant under this subpart, each applicant shall
maintain a file, with respect to each Indian child for whom the local
educational agency provides a free public education, that contains a
form that sets forth information establishing the status of the child
as an Indian child eligible for assistance under this subpart, and that
otherwise meets the requirements of subsection (b).
``(b) Forms.--The form described in subsection (a) shall include--
``(1) either--
``(A)(i) the name of the tribe or band of Indians (as
defined in section 7151) with respect to which the child claims
membership;
``(ii) the enrollment number establishing the membership of
the child (if readily available); and
``(iii) the name and address of the organization that
maintains updated and accurate membership data for such tribe
or band of Indians; or
``(B) the name, the enrollment number (if readily
available), and the name and address of the organization
responsible for maintaining updated and accurate membership
data, of any parent or grandparent of the child from whom the
child claims eligibility under this subpart, if the child is
not a member of the tribe or band of Indians (as so defined);
``(2) a statement of whether the tribe or band of Indians (as
so defined), with respect to which the child, or parent or
grandparent of the child, claims membership, is federally
recognized;
``(3) the name and address of the parent or legal guardian of
the child;
``(4) a signature of the parent or legal guardian of the child
that verifies the accuracy of the information supplied; and
``(5) any other information that the Secretary considers
necessary to provide an accurate program profile.
``(c) Statutory Construction.--Nothing in this section shall be
construed to affect a definition contained in section 7151.
``(d) Forms and Standards of Proof.--The forms and the standards of
proof (including the standard of good faith compliance) that were in
use during the 1985-86 academic year to establish the eligibility of a
child for entitlement under the Indian Elementary and Secondary School
Assistance Act shall be the forms and standards of proof used--
``(1) to establish eligibility under this subpart; and
``(2) to meet the requirements of subsection (a).
``(e) Documentation.--For purposes of determining whether a child
is eligible to be counted for the purpose of computing the amount of a
grant award under section 7113, the membership of the child, or any
parent or grandparent of the child, in a tribe or band of Indians (as
so defined) may be established by proof other than an enrollment
number, notwithstanding the availability of an enrollment number for a
member of such tribe or band. Nothing in subsection (b) shall be
construed to require the furnishing of an enrollment number.
``(f) Monitoring and Evaluation Review.--
``(1) In general.--
``(A) Review.--For each fiscal year, in order to provide
such information as is necessary to carry out the
responsibility of the Secretary to provide technical assistance
under this subpart, the Secretary shall conduct a monitoring
and evaluation review of a sampling of the recipients of grants
under this subpart. The sampling conducted under this
subparagraph shall take into account the size of and the
geographic location of each local educational agency.
``(B) Exception.--A local educational agency may not be
held liable to the United States or be subject to any penalty,
by reason of the findings of an audit that relates to the date
of completion, or the date of submission, of any forms used to
establish, before April 28, 1988, the eligibility of a child
for an entitlement under the Indian Elementary and Secondary
School Assistance Act.
``(2) False information.--Any local educational agency that
provides false information in an application for a grant under this
subpart shall--
``(A) be ineligible to apply for any other grant under this
subpart; and
``(B) be liable to the United States for any funds from the
grant that have not been expended.
``(3) Excluded children.--A student who provides false
information for the form required under subsection (a) shall not be
counted for the purpose of computing the amount of a grant under
section 7113.
``(g) Tribal Grant and Contract Schools.--Notwithstanding any other
provision of this section, in calculating the amount of a grant under
this subpart to a tribal school that receives a grant or contract from
the Bureau of Indian Affairs, the Secretary shall use only one of the
following, as selected by the school:
``(1) A count of the number of students in the schools
certified by the Bureau.
``(2) A count of the number of students for whom the school has
eligibility forms that comply with this section.
``(h) Timing of Child Counts.--For purposes of determining the
number of children to be counted in calculating the amount of a local
educational agency's grant under this subpart (other than in the case
described in subsection (g)(1)), the local educational agency shall--
``(1) establish a date on, or a period not longer than 31
consecutive days during, which the agency counts those children, if
that date or period occurs before the deadline established by the
Secretary for submitting an application under section 7114; and
``(2) determine that each such child was enrolled, and
receiving a free public education, in a school of the agency on
that date or during that period, as the case may be.
``SEC. 7118. PAYMENTS.
``(a) In General.--Subject to subsections (b) and (c), the
Secretary shall pay to each local educational agency that submits an
application that is approved by the Secretary under this subpart the
amount determined under section 7113. The Secretary shall notify the
local educational agency of the amount of the payment not later than
June 1 of the year for which the Secretary makes the payment.
``(b) Payments Taken Into Account by the State.--The Secretary may
not make a grant under this subpart to a local educational agency for a
fiscal year if, for such fiscal year, the State in which the local
educational agency is located takes into consideration payments made
under this chapter in determining the eligibility of the local
educational agency for State aid, or the amount of the State aid, with
respect to the free public education of children during such fiscal
year or the preceding fiscal year.
``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
``(1) In general.--The Secretary may not pay a local
educational agency the full amount of a grant award determined
under section 7113 for any fiscal year unless the State educational
agency notifies the Secretary, and the Secretary determines, that
with respect to the provision of free public education by the local
educational agency for the preceding fiscal year, the combined
fiscal effort of the local educational agency and the State,
computed on either a per student or aggregate expenditure basis,
was not less than 90 percent of the amount of the combined fiscal
effort, computed on the same basis, for the second preceding fiscal
year.
``(2) Failure to maintain effort.--If, for the preceding fiscal
year, the Secretary determines that a local educational agency and
State failed to maintain the combined fiscal effort for such agency
at the level specified in paragraph (1), the Secretary shall--
``(A) reduce the amount of the grant that would otherwise
be made to such agency under this subpart in the exact
proportion of the failure to maintain the fiscal effort at such
level; and
``(B) not use the reduced amount of the agency and State
expenditures for the preceding year to determine compliance
with paragraph (1) for any succeeding fiscal year, but shall
use the amount of expenditures that would have been required to
comply with paragraph (1).
``(3) Waiver.--
``(A) In general.--The Secretary may waive the requirement
of paragraph (1) for a local educational agency, for not more
than 1 year at a time, if the Secretary determines that the
failure to comply with such requirement is due to exceptional
or uncontrollable circumstances, such as a natural disaster or
a precipitous and unforeseen decline in the agency's financial
resources.
``(B) Future determinations.--The Secretary shall not use
the reduced amount of the agency's expenditures for the fiscal
year preceding the fiscal year for which a waiver is granted to
determine compliance with paragraph (1) for any succeeding
fiscal year, but shall use the amount of expenditures that
would have been required to comply with paragraph (1) in the
absence of the waiver.
``(d) Reallocations.--The Secretary may reallocate, in a manner
that the Secretary determines will best carry out the purpose of this
subpart, any amounts that--
``(1) based on estimates made by local educational agencies or
other information, the Secretary determines will not be needed by
such agencies to carry out approved programs under this subpart; or
``(2) otherwise become available for reallocation under this
subpart.
``SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.
``Before submitting an application to the Secretary under section
7114, a local educational agency shall submit the application to the
State educational agency, which may comment on such application. If the
State educational agency comments on the application, the agency shall
comment on all applications submitted by local educational agencies in
the State and shall provide those comments to the respective local
educational agencies, with an opportunity to respond.
``Subpart 2--Special Programs and Projects To Improve Educational
Opportunities for Indian Children
``SEC. 7121. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR INDIAN
CHILDREN.
``(a) Purpose.--
``(1) In general.--It is the purpose of this section to support
projects to develop, test, and demonstrate the effectiveness of
services and programs to improve educational opportunities and
achievement of Indian children.
``(2) Coordination.--The Secretary shall take the necessary
actions to achieve the coordination of activities assisted under
this subpart with--
``(A) other programs funded under this Act; and
``(B) other Federal programs operated for the benefit of
American Indian and Alaska Native children.
``(b) Eligible Entities.--In this section, the term `eligible
entity' means a State educational agency, local educational agency,
Indian tribe, Indian organization, federally supported elementary
school or secondary school for Indian students, Indian institution
(including an Indian institution of higher education), or a consortium
of such entities.
``(c) Grants Authorized.--
``(1) In general.--The Secretary shall award grants to eligible
entities to enable such entities to carry out activities that meet
the purpose of this section, including--
``(A) innovative programs related to the educational needs
of educationally disadvantaged children;
``(B) educational services that are not available to such
children in sufficient quantity or quality, including remedial
instruction, to raise the achievement of Indian children in 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.
``(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
``(v) such other assurances and information as the
Secretary may reasonably require.
``(e) Administrative Costs.--Not more than 5 percent of the funds
provided to a grantee under this subpart for any fiscal year may be
used for administrative purposes.
``SEC. 7122. PROFESSIONAL DEVELOPMENT FOR TEACHERS AND EDUCATION
PROFESSIONALS.
``(a) Purposes.--The purposes of this section are--
``(1) to increase the number of qualified Indian individuals in
teaching or other education professions that serve Indian people;
``(2) to provide training to qualified Indian individuals to
enable such individuals to become teachers, administrators, teacher
aides, social workers, and ancillary educational personnel; and
``(3) to improve the skills of qualified Indian individuals who
serve in the capacities described in paragraph (2).
``(b) Eligible Entities.--For the purpose of this section, the term
`eligible entity' means--
``(1) an institution of higher education, including an Indian
institution of higher education;
``(2) a State educational agency or local educational agency,
in consortium with an institution of higher education;
``(3) an Indian tribe or organization, in consortium with an
institution of higher education; and
``(4) a Bureau-funded school (as defined in section 1146 of the
Education Amendments of 1978).
``(c) Program Authorized.--The Secretary is authorized to award
grants to eligible entities having applications approved under this
section to enable those entities to carry out the activities described
in subsection (d).
``(d) Authorized Activities.--
``(1) In general.--Grant funds under this section shall be used
for activities to provide support and training for Indian
individuals in a manner consistent with the purposes of this
section. Such activities may include continuing programs, symposia,
workshops, conferences, and direct financial support, and may
include programs designed to train tribal elders and seniors.
``(2) Special rules.--
``(A) Type of training.--For education personnel, the
training received pursuant to a grant under this section may be
inservice or preservice training.
``(B) Program.--For individuals who are being trained to
enter any field other than teaching, the training received
pursuant to a grant under this section shall be in a program
that results in a graduate degree.
``(e) Application.--Each eligible entity desiring a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information, as the Secretary
may reasonably require.
``(f) Special Rule.--In awarding grants under this section, the
Secretary--
``(1) shall consider the prior performance of the eligible
entity; and
``(2) may not limit eligibility to receive a grant under this
section on the basis of--
``(A) the number of previous grants the Secretary has
awarded such entity; or
``(B) the length of any period during which such entity
received such grants.
``(g) Grant Period.--Each grant under this section shall be awarded
for a period of not more than 5 years.
``(h) Service Obligation.--
``(1) In general.--The Secretary shall require, by regulation,
that an individual who receives training pursuant to a grant made
under this section--
``(A) perform work--
``(i) related to the training received under this
section; and
``(ii) that benefits Indian people; or
``(B) repay all or a prorated part of the assistance
received.
``(2) Reporting.--The Secretary shall establish, by regulation,
a reporting procedure under which a grant recipient under this
section shall, not later than 12 months after the date of
completion of the training, and periodically thereafter, provide
information concerning compliance with the work requirement under
paragraph (1).
``Subpart 3--National Activities
``SEC. 7131. NATIONAL RESEARCH ACTIVITIES.
``(a) Authorized Activities.--The Secretary may use funds made
available under section 7152(b) for each fiscal year to--
``(1) conduct research related to effective approaches for the
education of Indian children and adults;
``(2) evaluate federally assisted education programs from which
Indian children and adults may benefit;
``(3) collect and analyze data on the educational status and
needs of Indians; and
``(4) carry out other activities that are consistent with the
purpose of this part.
``(b) Eligibility.--The Secretary may carry out any of the
activities described in subsection (a) directly or through grants to,
or contracts or cooperative agreements with, Indian tribes, Indian
organizations, State educational agencies, local educational agencies,
institutions of higher education, including Indian institutions of
higher education, and other public and private agencies and
institutions.
``(c) Coordination.--Research activities supported under this
section--
``(1) shall be carried out in consultation with the Office of
Educational Research and Improvement to ensure that such activities
are coordinated with and enhance the research and development
activities supported by the Office; and
``(2) may include collaborative research activities that are
jointly funded and carried out by the Office of Indian Education
Programs and the Office of Educational Research and Improvement.
``SEC. 7132. IN-SERVICE TRAINING FOR TEACHERS OF INDIAN CHILDREN.
``(a) Grants Authorized.--In addition to the grants authorized by
section 7122(c), the Secretary may make grants to eligible consortia
for the provision of high quality in-service training. The Secretary
may make such a grant to--
``(1) a consortium of a tribal college and an institution of
higher education that awards a degree in education; or
``(2) a consortium of--
``(A) a tribal college;
``(B) an institution of higher education that awards a
degree in education; and
``(C) 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. FELLOWSHIPS FOR INDIAN STUDENTS.
``(a) Fellowships.--
``(1) Authority.--The Secretary is authorized to award
fellowships to Indian students to enable such students to study in
graduate and professional programs at institutions of higher
education.
``(2) Requirements.--The fellowships described in paragraph (1)
shall be awarded to Indian students to enable such students to
pursue a course of study--
``(A) of not more than 4 academic years; and
``(B) that leads--
``(i) toward a postbaccalaureate degree in medicine,
clinical psychology, psychology, law, education, or a
related field; or
``(ii) to an undergraduate or graduate degree in
engineering, business administration, natural resources, or
a related field.
``(b) Stipends.--The Secretary shall pay to Indian students awarded
fellowships under subsection (a) such stipends (including allowances
for subsistence of such students and dependents of such students) as
the Secretary determines to be consistent with prevailing practices
under comparable federally supported programs.
``(c) Payments to Institutions in Lieu of Tuition.--The Secretary
shall pay to the institution of higher education at which such a
fellowship recipient is pursuing a course of study, in lieu of tuition
charged to such recipient, such amounts as the Secretary may determine
to be necessary to cover the cost of education provided to such
recipient.
``(d) Special Rules.--
``(1) In general.--If a fellowship awarded under subsection (a)
is vacated prior to the end of the period for which the fellowship
is awarded, the Secretary may award an additional fellowship for
the unexpired portion of the period of the first fellowship.
``(2) Written notice.--Not later than 45 days before the
commencement of an academic term, the Secretary shall provide to
each individual who is awarded a fellowship under subsection (a)
for such academic term written notice of--
``(A) the amount of the funding for the fellowship; and
``(B) any stipends or other payments that will be made
under this section to, or for the benefit of, the individual
for the academic term.
``(3) Priority.--Not more than 10 percent of the fellowships
awarded under subsection (a) shall be awarded, on a priority basis,
to persons receiving training in guidance counseling with a
specialty in the area of alcohol and substance abuse counseling and
education.
``(e) Service Obligation.--
``(1) In general.--The Secretary shall require, by regulation,
that an individual who receives financial assistance under this
section--
``(A) perform work--
``(i) related to the training for which the individual
receives the assistance under this section; and
``(ii) that benefits Indian people; or
``(B) repay all or a prorated portion of such assistance.
``(2) Reporting.--The Secretary shall establish, by regulation,
a reporting procedure under which a recipient of assistance under
this section shall, not later than 12 months after the date of
completion of the training, and periodically thereafter, provide
information concerning the compliance of such recipient with the
work requirement described in paragraph (1).
``(f) Administration of Fellowships.--The Secretary may administer
the fellowships authorized under this section through a grant to, or
contract or cooperative agreement with, an Indian organization with
demonstrated qualifications to administer all facets of the program
assisted under this section.
``SEC. 7134. GIFTED AND TALENTED INDIAN STUDENTS.
``(a) Program Authorized.--The Secretary is authorized to--
``(1) establish 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--
``(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, including
disseminating information derived from the demonstration
projects conducted under subsection (a); and
``(F) appropriate research, evaluation, and related
activities pertaining to the needs of such children and to the
provision of such support services to the families of such
children as are needed to enable such children to benefit from
the projects.
``(4) Application.--Each eligible entity desiring a grant or
contract under subsection (b) shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information, as the Secretary may reasonably require.
``(d) Additional Grants.--
``(1) In general.--The Secretary, in consultation with the
Secretary of the Interior, shall award 5 grants to schools funded
by the Bureau of Indian Affairs (hereafter referred to individually
in this section as a `Bureau school') for program research and
development and the development and dissemination of curriculum and
teacher training material, regarding--
``(A) gifted and talented students;
``(B) college preparatory studies (including programs for
Indian students with an interest in pursuing teaching careers);
``(C) students with special culturally related academic
needs, including students with social, lingual, and cultural
needs; or
``(D) mathematics and science education.
``(2) Applications.--Each Bureau school desiring a grant under
this subsection shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information, as
the Secretary may reasonably require.
``(3) Special rule.--Each application described in paragraph
(2) shall be developed, and each grant under this subsection shall
be administered, jointly by the supervisor of the Bureau school and
the local educational agency serving such school.
``(4) Requirements.--In awarding grants under paragraph (1),
the Secretary shall achieve a mixture of the programs described in
paragraph (1) that ensures that Indian students at all grade levels
and in all geographic areas of the United States are able to
participate in a program assisted under this subsection.
``(5) Grant period.--Subject to the availability of
appropriations, a grant awarded under paragraph (1) shall be
awarded for a 3-year period and may be renewed by the Secretary for
additional 3-year periods if the Secretary determines that the
performance of the grant recipient has been satisfactory.
``(6) Dissemination.--
``(A) Cooperative efforts.--The dissemination of any
materials developed from activities assisted under paragraph
(1) shall be carried out in cooperation with entities that
receive funds pursuant to subsection (b).
``(B) Report.--The Secretary shall prepare and submit to
the Secretary of the Interior and to Congress a report
concerning any results from activities described in this
subsection.
``(7) Evaluation costs.--
``(A) Division.--The costs of evaluating any activities
assisted under paragraph (1) shall be divided between the
Bureau schools conducting such activities and the recipients of
grants or contracts under subsection (b) who conduct
demonstration projects under subsection (a).
``(B) Grants and contracts.--If no funds are provided under
subsection (b) for--
``(i) the evaluation of activities assisted under
paragraph (1);
``(ii) technical assistance and coordination with
respect to such activities; or
``(iii) the dissemination of the evaluations referred
to in clause (i),
the Secretary shall make such grants, or enter into such
contracts, as are necessary to provide for the evaluations,
technical assistance, and coordination of such activities, and
the dissemination of the evaluations.
``(e) Information Network.--The Secretary shall encourage each
recipient of a grant or contract under this section to work
cooperatively as part of a national network to ensure that the
information developed by the grant or contract recipient is readily
available to the entire educational community.
``SEC. 7135. GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE PLANNING AND
DEVELOPMENT.
``(a) In General.--The Secretary may make grants to Indian tribes,
and tribal organizations approved by Indian tribes, to plan and develop
a centralized tribal administrative entity to--
``(1) coordinate all education programs operated by the tribe
or within the territorial jurisdiction of the tribe;
``(2) develop education codes for schools within the
territorial jurisdiction of the tribe;
``(3) provide support services and technical assistance to
schools serving children of the tribe; and
``(4) perform child-find screening services for the preschool-
aged children of the tribe to--
``(A) ensure placement in appropriate educational
facilities; and
``(B) coordinate the provision of any needed special
services for conditions such as disabilities and English
language skill deficiencies.
``(b) Period of Grant.--Each grant awarded under this section may
be awarded for a period of not more than 3 years. Such grant may be
renewed upon the termination of the initial period of the grant if the
grant recipient demonstrates to the satisfaction of the Secretary that
renewing the grant for an additional 3-year period is necessary to
carry out the objectives of the grant described in subsection
(c)(2)(A).
``(c) Application for Grant.--
``(1) In general.--Each Indian tribe and tribal organization
desiring a grant under this section shall submit an application to
the Secretary at such time, in such manner, containing such
information, and consistent with such criteria, as the Secretary
may prescribe in regulations.
``(2) Contents.--Each application described in paragraph (1)
shall contain--
``(A) a statement describing the activities to be
conducted, and the objectives to be achieved, under the grant;
and
``(B) a description of the method to be used for evaluating
the effectiveness of the activities for which assistance is
sought and for determining whether such objectives are
achieved.
``(3) Approval.--The Secretary may approve an application
submitted by a tribe or tribal organization pursuant to this
section only if the Secretary is satisfied that such application,
including any documentation submitted with the application--
``(A) demonstrates that the applicant has consulted with
other education entities, if any, within the territorial
jurisdiction of the applicant who will be affected by the
activities to be conducted under the grant;
``(B) provides for consultation with such other education
entities in the operation and evaluation of the activities
conducted under the grant; and
``(C) demonstrates that there will be adequate resources
provided under this section or from other sources to complete
the activities for which assistance is sought, except that the
availability of such other resources shall not be a basis for
disapproval of such application.
``(d) Restriction.--A tribe may not receive funds under this
section if such tribe receives funds under section 1144 of the
Education Amendments of 1978.
``SEC. 7136. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT
INDIANS.
``(a) In General.--The Secretary shall make grants to State
educational agencies, local educational agencies, and Indian tribes,
institutions, and organizations--
``(1) to support planning, pilot, and demonstration projects
that are designed to test and demonstrate the effectiveness of
programs for improving employment and educational opportunities for
adult Indians;
``(2) to assist in the establishment and operation of programs
that are designed to stimulate--
``(A) the provision of basic literacy opportunities for all
nonliterate Indian adults; and
``(B) the provision of opportunities to all Indian adults
to qualify for a secondary school diploma, or its recognized
equivalent, in the shortest period of time feasible;
``(3) to support a major research and development program to
develop more innovative and effective techniques for achieving
literacy and secondary school equivalency for Indians;
``(4) to provide for basic surveys and evaluations to define
accurately the extent of the problems of illiteracy and lack of
secondary school completion among Indians; and
``(5) to encourage the dissemination of information and
materials relating to, and the evaluation of, the effectiveness of
education programs that may offer educational opportunities to
Indian adults.
``(b) Educational Services.--The Secretary may make grants to
Indian tribes, institutions, and organizations to develop and establish
educational services and programs specifically designed to improve
educational opportunities for Indian adults.
``(c) Information and Evaluation.--The Secretary may make grants
to, and enter into contracts with, public agencies and institutions and
Indian tribes, institutions, and organizations, for--
``(1) the dissemination of information concerning educational
programs, services, and resources available to Indian adults,
including evaluations of the programs, services, and resources; and
``(2) the evaluation of federally assisted programs in which
Indian adults may participate to determine the effectiveness of the
programs in achieving the purposes of the programs with respect to
Indian adults.
``(d) Applications.--
``(1) In general.--Each entity desiring a grant or contract
under this section shall submit to the Secretary an application at
such time, in such manner, containing such information, and
consistent with such criteria, as the Secretary may prescribe in
regulations.
``(2) Contents.--Each application described in paragraph (1)
shall contain--
``(A) a statement describing the activities to be conducted
and the objectives to be achieved under the grant or contract;
and
``(B) a description of the method to be used for evaluating
the effectiveness of the activities for which assistance is
sought and determining whether the objectives of the grant or
contract are achieved.
``(3) Approval.--The Secretary shall not approve an application
described in paragraph (1) unless the Secretary determines that
such application, including any documentation submitted with the
application, indicates that--
``(A) there has been adequate participation, by the
individuals to be served and the appropriate tribal
communities, in the planning and development of the activities
to be assisted; and
``(B) the individuals and tribal communities referred to in
subparagraph (A) will participate in the operation and
evaluation of the activities to be assisted.
``(4) Priority.--In approving applications under paragraph (1),
the Secretary shall give priority to applications from Indian
educational agencies, organizations, and institutions.
``(e) Administrative Costs.--Not more than 5 percent of the funds
made available to an entity through a grant or contract made or entered
into under this section for a fiscal year may be used to pay for
administrative costs.
``Subpart 4--Federal Administration
``SEC. 7141. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.
``(a) Membership.--There is established a National Advisory Council
on Indian Education (hereafter in this section referred to as the
`Council'), which shall--
``(1) consist of 15 Indian members, who shall be appointed by
the President from lists of nominees furnished, from time to time,
by Indian tribes and organizations; and
``(2) represent different geographic areas of the United
States.
``(b) Duties.--The Council shall--
``(1) advise the Secretary concerning the funding and
administration (including the development of regulations and
administrative policies and practices) of any program, including
any program established under this part--
``(A) with respect to which the Secretary has jurisdiction;
and
``(B)(i) that includes Indian children or adults as
participants; or
``(ii) that may benefit Indian children or adults;
``(2) make recommendations to the Secretary for filling the
position of Director of Indian Education whenever a vacancy occurs;
and
``(3) submit to Congress, not later than June 30 of each year,
a report on the activities of the Council, including--
``(A) any recommendations that the Council considers
appropriate for the improvement of Federal education programs
that include Indian children or adults as participants, or that
may benefit Indian children or adults; and
``(B) recommendations concerning the funding of any program
described in subparagraph (A).
``SEC. 7142. PEER REVIEW.
``The Secretary may use a peer review process to review
applications submitted to the Secretary under subpart 2 or subpart 3.
``SEC. 7143. PREFERENCE FOR INDIAN APPLICANTS.
``In making grants and entering into contracts or cooperative
agreements under subpart 2 or subpart 3, the Secretary shall give a
preference to Indian tribes, organizations, and institutions of higher
education under any program with respect to which Indian tribes,
organizations, and institutions are eligible to apply for grants,
contracts, or cooperative agreements.
``SEC. 7144. MINIMUM GRANT CRITERIA.
``The Secretary may not approve an application for a grant,
contract, or cooperative agreement under subpart 2 or subpart 3 unless
the application is for a grant, contract, or cooperative agreement that
is--
``(1) of sufficient size, scope, and quality to achieve the
purpose or objectives of such grant, contract, or cooperative
agreement; and
``(2) based on relevant research findings.
``Subpart 5--Definitions; Authorizations of Appropriations
``SEC. 7151. DEFINITIONS.
``For the purposes of this part:
``(1) Adult.--The term `adult' means an individual who--
``(A) has attained the age of 16 years; or
``(B) has attained an age that is greater than the age of
compulsory school attendance under an applicable State law.
``(2) Free public education.--The term `free public education'
means education that is--
``(A) provided at public expense, under public supervision
and direction, and without tuition charge; and
``(B) provided as elementary or secondary education in the
applicable State or to preschool children.
``(3) Indian.--The term `Indian' means an individual who is--
``(A) a member of an Indian tribe or band, as membership is
defined by the tribe or band, including--
``(i) any tribe or band terminated since 1940; and
``(ii) any tribe or band recognized by the State in
which the tribe or band resides;
``(B) a descendant, in the first or second degree, of an
individual described in subparagraph (A);
``(C) considered by the Secretary of the Interior to be an
Indian for any purpose;
``(D) an Eskimo, Aleut, or other Alaska Native; or
``(E) a member of an organized Indian group that received a
grant under the Indian Education Act of 1988 as in effect the
day preceding the date of enactment of the Improving America's
Schools Act of 1994.
``SEC. 7152. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) Subpart 1.--For the purpose of carrying out subpart 1, there
are authorized to be appropriated $96,400,000 for fiscal year 2002 and
such sums as may be necessary for each of the 5 succeeding fiscal
years.
``(b) Subparts 2 and 3.--For the purpose of carrying out subparts 2
and 3, there are authorized to be appropriated $24,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``PART B--NATIVE HAWAIIAN EDUCATION
``SEC. 7201. SHORT TITLE.
``This part may be cited as the `Native Hawaiian Education Act'.
``SEC. 7202. FINDINGS.
``Congress finds the following:
``(1) Native Hawaiians are a distinct and unique indigenous
people with a historical continuity to the original inhabitants of
the Hawaiian archipelago, whose society was organized as a nation
and internationally recognized as a nation by the United States,
Britain, France, and Japan, as evidenced by treaties governing
friendship, commerce, and navigation.
``(2) At the time of the arrival of the first nonindigenous
people in 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.
``(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 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 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;
``(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.
``SEC. 7203. PURPOSES.
``The purposes of this part are to--
``(1) authorize and develop innovative educational programs to
assist Native Hawaiians;
``(2) provide direction and guidance to appropriate Federal,
State, and local agencies to focus resources, including resources
made available under this part, on Native Hawaiian education, and
to provide periodic assessment and data collection;
``(3) supplement and expand programs and authorities in the
area of education to further the purposes of this title; and
``(4) encourage the maximum participation of Native Hawaiians
in planning and management of Native Hawaiian education programs.
``SEC. 7204. NATIVE HAWAIIAN EDUCATION COUNCIL AND ISLAND COUNCILS.
``(a) Establishment of Native Hawaiian Education Council.--In order
to better effectuate the purposes of this part through the coordination
of educational and related services and programs available to Native
Hawaiians, including those programs receiving funding under this part,
the Secretary is authorized to establish a Native Hawaiian Education
Council (hereafter in this part referred to as the `Education
Council').
``(b) Composition of Education Council.--The Education Council
shall consist of not more than 21 members, unless otherwise determined
by a majority of the council.
``(c) Conditions and Terms.--
``(1) Conditions.--At least 10 members of the Education Council
shall be Native Hawaiian education service providers and 10 members
of the Education Council shall be Native Hawaiians or Native
Hawaiian education consumers. In addition, a representative of the
State of 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, 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) Report.--Not later than 4 years after the date of enactment
of the No Child Left Behind Act of 2001, the Secretary shall prepare
and submit to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Indian Affairs of the Senate a
report that summarizes the annual reports of the Education Council,
describes the allocation and use of funds under this part, and contains
recommendations for changes in Federal, State, and local policy to
advance the purposes of this part.
``SEC. 7205. PROGRAM AUTHORIZED.
``(a) General Authority.--
``(1) Grants and contracts.--The Secretary is authorized to
make direct grants to, or enter into contracts with--
``(A) Native Hawaiian educational organizations;
``(B) Native Hawaiian community-based organizations;
``(C) public and private nonprofit organizations, agencies,
and institutions with experience in developing or operating
Native Hawaiian programs or programs of instruction in the
Native Hawaiian language; and
``(D) consortia of the organizations, agencies, and
institutions described in subparagraphs (A) through (C),
to carry out programs that meet the purposes of this part.
``(2) Priorities.--In awarding grants or contracts to carry out
activities described in paragraph (3), the Secretary shall give
priority to entities proposing projects that are designed to
address--
``(A) beginning reading and literacy among students in
kindergarten through third grade;
``(B) the needs of at-risk children and youth;
``(C) needs in fields or disciplines in which Native
Hawaiians are underemployed; and
``(D) the use of the Hawaiian language in instruction.
``(3) Authorized activities.--Activities provided through
programs carried out under this part may include--
``(A) the development and maintenance of a statewide Native
Hawaiian early education and care system to provide a continuum
of services for Native Hawaiian children from the prenatal
period of the children through age 5;
``(B) the operation of family-based education centers that
provide such services as--
``(i) programs for Native Hawaiian parents and their
infants from the prenatal period of the infants through age
3;
``(ii) preschool programs for Native Hawaiians; and
``(iii) research on, and development and assessment of,
family-based, early childhood, and preschool programs for
Native Hawaiians;
``(C) activities that enhance beginning reading and
literacy in either the Hawaiian or the English language among
Native Hawaiian students in kindergarten through third grade
and assistance in addressing the distinct features of combined
English and Hawaiian literacy for Hawaiian speakers in fifth
and sixth grade;
``(D) activities to meet the special needs of Native
Hawaiian students with disabilities, including--
``(i) the identification of such students and their
needs;
``(ii) the provision of support services to the
families of those students; and
``(iii) other activities consistent with the
requirements of the Individuals with Disabilities Education
Act;
``(E) activities that address the special needs of Native
Hawaiian students who are gifted and talented, including--
``(i) educational, psychological, and developmental
activities designed to assist in the educational progress
of those students; and
``(ii) activities that involve the parents of those
students in a manner designed to assist in the students'
educational progress;
``(F) the development of academic and vocational curricula
to address the needs of Native Hawaiian children and adults,
including curriculum materials in the Hawaiian language and
mathematics and science curricula that incorporate Native
Hawaiian tradition and culture;
``(G) professional development activities for educators,
including--
``(i) the development of programs to prepare
prospective teachers to address the unique needs of Native
Hawaiian students within the context of Native Hawaiian
culture, language, and traditions;
``(ii) in-service programs to improve the ability of
teachers who teach in schools with concentrations of Native
Hawaiian students to meet those students' unique needs; and
``(iii) the recruitment and preparation of Native
Hawaiians, and other individuals who live in communities
with a high concentration of Native Hawaiians, to become
teachers;
``(H) the operation of community-based learning centers
that address the needs of Native Hawaiian families and
communities through the coordination of public and private
programs and services, including--
``(i) preschool programs;
``(ii) after-school programs;
``(iii) vocational and adult education programs; and
``(iv) programs that recognize and support the unique
cultural and educational needs of Native Hawaiian children,
and incorporate appropriately qualified Native Hawaiian
elders and seniors;
``(I) activities, including program co-location, to enable
Native Hawaiians to enter and complete programs of
postsecondary education, including--
``(i) provision of full or partial scholarships for
undergraduate or graduate study that are awarded to
students based on their academic promise and financial
need, with a priority, at the graduate level, given to
students entering professions in which Native Hawaiians are
underrepresented;
``(ii) family literacy services;
``(iii) counseling and support services for students
receiving scholarship assistance;
``(iv) counseling and guidance for Native Hawaiian
secondary students who have the potential to receive
scholarships; and
``(v) faculty development activities designed to
promote the matriculation of Native Hawaiian students;
``(J) research and data collection activities to determine
the educational status and needs of Native Hawaiian children
and adults;
``(K) other research and evaluation activities related to
programs carried out under this part; and
``(L) other activities, consistent with the purposes of
this part, to meet the educational needs of Native Hawaiian
children and adults.
``(4) Special rule and conditions.--
``(A) Institutions outside hawaii.--The Secretary shall not
establish a policy under this section that prevents a Native
Hawaiian student enrolled at a 2- or 4-year degree granting
institution of higher education outside of the State of 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. ADMINISTRATIVE PROVISIONS.
``(a) Application Required.--No grant may be made under this part,
and no contract may be entered into under this part, unless the entity
seeking the grant or contract submits an application to the Secretary
at such time, in such manner, and containing such information as the
Secretary may determine to be necessary to carry out the provisions of
this part.
``(b) Special Rule.--Each applicant for a grant or contract under
this part shall submit the application for comment to the local
educational agency serving students who will participate in the program
to be carried out under the grant or contract, and include those
comments, if any, with the application to the Secretary.
``SEC. 7207. DEFINITIONS.
``In this part:
``(1) Native hawaiian.--The term `Native Hawaiian' means any
individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people who, prior to
1778, occupied and exercised sovereignty in the area that now
comprises the State of 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 C--ALASKA NATIVE EDUCATION
``SEC. 7301. SHORT TITLE.
``This part may be cited as the `Alaska Native Educational Equity,
Support, and Assistance Act'.
``SEC. 7302. FINDINGS.
``Congress finds and declares the following:
``(1) The attainment of educational success is critical to the
betterment of the conditions, long-term well-being, and
preservation of the culture of Alaska Natives.
``(2) It is the policy of the Federal Government to encourage
the maximum participation by Alaska Natives in the planning and the
management of Alaska Native education programs.
``(3) Alaska Native children enter and exit school with serious
educational handicaps.
``(4) The educational achievement of Alaska Native children is
far below national norms. Native performance on standardized tests
is low, Native student dropout rates are high, and Natives are
significantly underrepresented among holders of baccalaureate
degrees in the State of Alaska. As a result, Native students are
being denied their opportunity to become full participants in
society by grade school and high school educations that are
condemning an entire generation to an underclass status and a life
of limited choices.
``(5) The programs authorized in this part, combined with
expanded Head Start, infant learning, and early childhood education
programs, and parent education programs, are essential if
educational handicaps are to be overcome.
``(6) The sheer magnitude of the geographic barriers to be
overcome in delivering educational services in rural Alaska and
Alaska villages should be addressed through the development and
implementation of innovative, model programs in a variety of areas.
``(7) Native children should be afforded the opportunity to
begin their formal education on a par with their non-Native peers.
The Federal Government should lend support to efforts developed by
and undertaken within the Alaska Native community to improve
educational opportunity for all students.
``SEC. 7303. PURPOSES.
``The purposes of this part are as follows:
``(1) To recognize the unique educational needs of Alaska
Natives.
``(2) To authorize the development of supplemental educational
programs to benefit Alaska Natives.
``(3) To supplement existing programs and authorities in the
area of education to further the purposes of this part.
``(4) To provide direction and guidance to appropriate Federal,
State and local agencies to focus resources, including resources
made available under this part, on meeting the educational needs of
Alaska Natives.
``SEC. 7304. PROGRAM AUTHORIZED.
``(a) General Authority.--
``(1) Grants and contracts.--The Secretary is authorized to
make grants to, or enter into contracts with, Alaska Native
organizations, educational entities with experience in developing
or operating Alaska Native programs or programs of instruction
conducted in Alaska Native languages, cultural and community-based
organizations with experience in developing or operating programs
to benefit Alaska Natives, and consortia of organizations and
entities described in this paragraph to carry out programs that
meet the purposes of this part.
``(2) Permissible activities.--Activities provided through
programs carried out under this part may include the following:
``(A) The development and implementation of plans, methods,
and strategies to improve the education of Alaska Natives.
``(B) The development of curricula and educational programs
that address the educational needs of Alaska Native students,
including the following:
``(i) Curriculum materials that reflect the cultural
diversity or the contributions of Alaska Natives.
``(ii) Instructional programs that make use of Native
Alaskan languages.
``(iii) Networks that introduce successful programs,
materials, and techniques to urban and rural schools.
``(C) Professional development activities for educators,
including the following:
``(i) Programs to prepare teachers to address the
cultural diversity and unique needs of Alaska Native
students.
``(ii) In-service programs to improve the ability of
teachers to meet the unique needs of Alaska Native
students.
``(iii) Recruitment and preparation of teachers who are
Alaska Native, reside in communities with high
concentrations of Alaska Native students, or are likely to
succeed as teachers in isolated, rural communities and
engage in cross-cultural instruction in Alaska.
``(D) The development and operation of home instruction
programs for Alaska Native preschool children, to ensure the
active involvement of parents in their children's education
from the earliest ages.
``(E) Family literacy services.
``(F) The development and operation of student enrichment
programs in science and mathematics that--
``(i) are designed to prepare Alaska Native students
from rural areas, who are preparing to enter secondary
school, to excel in science and math;
``(ii) provide appropriate support services to the
families of such students that are needed to enable such
students to benefit from the programs; and
``(iii) may include activities that recognize and
support the unique cultural and educational needs of Alaska
Native children, and incorporate appropriately qualified
Alaska Native elders and seniors.
``(G) Research and data collection activities to determine
the educational status and needs of Alaska Native children and
adults.
``(H) Other research and evaluation activities related to
programs carried out under this part.
``(I) Remedial and enrichment programs to assist Alaska
Native students in performing at a high level on standardized
tests.
``(J) Education and training of Alaska Native students
enrolled in a degree program that will lead to certification or
licensing as teachers.
``(K) Parenting education for parents and caregivers of
Alaska Native children to improve parenting and caregiving
skills (including skills relating to discipline and cognitive
development), including parenting education provided through
in-home visitation of new mothers.
``(L) Cultural education programs operated by the Alaska
Native Heritage Center and designed to share the Alaska Native
culture with students.
``(M) A cultural exchange program operated by the Alaska
Humanities Forum and designed to share Alaska Native culture
with urban students in a rural setting, which shall be known as
the Rose Cultural Exchange Program.
``(N) Activities carried out through Even Start programs
carried out under subpart 3 of part B of title I and Head Start
programs carried out under the Head Start Act, including the
training of teachers for programs described in this
subparagraph.
``(O) Other early learning and preschool programs.
``(P) Dropout prevention programs such as the Cook Inlet
Tribal Council's Partners for Success program.
``(Q) An Alaska Initiative for Community Engagement
program.
``(R) Career preparation activities to enable Alaska Native
children and adults to prepare for meaningful employment,
including programs providing tech-prep, mentoring, training,
and apprenticeship activities.
``(S) Provision of operational support and purchasing of
equipment, to develop regional vocational schools in rural
areas of Alaska, including boarding schools, for Alaska Native
students in grades 9 through 12, or at higher levels of
education, to provide the students with necessary resources to
prepare for skilled employment opportunities.
``(T) Other activities, consistent with the purposes of
this part, to meet the educational needs of Alaska Native
children and adults.
``(3) Home instruction programs.--Home instruction programs for
Alaska Native preschool children carried out under paragraph (2)(D)
may include the following:
``(A) Programs for parents and their infants, from the
prenatal period of the infant through age 3.
``(B) Preschool programs.
``(C) Training, education, and support for parents in such
areas as reading readiness, observation, story telling, and
critical thinking.
``(b) Limitation on Administrative Costs.--Not more than 5 percent
of funds provided to a grantee under this section for any fiscal year
may be used for administrative purposes.
``(c) Priorities.--In awarding grants or contracts to carry out
activities described in subsection (a)(2), except for activities listed
in subsection (d)(2), the Secretary shall give priority to applications
from Alaska Native regional nonprofit organizations, or consortia that
include at least 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.
``(2) Availability of funds.--Of the funds appropriated and
made available under this section for a fiscal year, the Secretary
shall make available--
``(A) not less than $1,000,000 to support activities
described in subsection (a)(2)(K);
``(B) not less than $1,000,000 to support activities
described in subsection (a)(2)(L);
``(C) not less than $1,000,000 to support activities
described in subsection (a)(2)(M);
``(D) not less than $2,000,000 to support activities
described in subsection (a)(2)(P); and
``(E) not less than $2,000,000 to support activities
described in subsection (a)(2)(Q).
``SEC. 7305. ADMINISTRATIVE PROVISIONS.
``(a) Application Required.--No grant may be made under this part,
and no contract may be entered into under this part, unless the entity
seeking the grant or contract submits an application to the Secretary
in such form, in such manner, and containing such information as the
Secretary may determine necessary to carry out the provisions of this
part.
``(b) Applications.--A State educational agency or local
educational agency may apply for an award under this part only as part
of a consortium involving an Alaska Native organization. The consortium
may include other eligible applicants.
``(c) Consultation Required.--Each applicant for an award under
this part shall provide for ongoing advice from and consultation with
representatives of the Alaska Native community.
``(d) Local Educational Agency Coordination.--Each applicant for an
award under this part shall inform each local educational agency
serving students who would participate in the program to be carried out
under the grant or contract about the application.
``SEC. 7306. DEFINITIONS.
``In this part:
``(1) Alaska native.--The term `Alaska Native' has the same
meaning as the term `Native' has in section 3(b) of the Alaska
Native Claims Settlement Act.
``(2) Alaska native organization.--The term `Alaska Native
organization' means a federally recognized tribe, consortium of
tribes, regional nonprofit Native association, and another
organization that--
``(A) has or commits to acquire expertise in the education
of Alaska Natives; and
``(B) has Alaska Natives in substantive and policymaking
positions within the organization.''.
SEC. 702. CONFORMING AMENDMENTS.
(a) Higher Education Act of 1965.--Section 317(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059d(b)) is amended--
(1) in paragraph (1), by striking ``section 9308'' and
inserting ``section 7306''; and
(2) in paragraph (3), by striking ``section 9212'' and
inserting ``section 7207''.
(b) Public Law 88-210.--Section 116 of Public Law 88-210 (as added
by section 1 of Public Law 105-332 (112 Stat. 3076)) is amended by
striking ``section 9212 of the Native Hawaiian Education Act (20 U.S.C.
7912)'' and inserting ``section 7207 of the Native Hawaiian Education
Act''.
(c) Carl D. Perkins Vocational and Technical Education Act of
1998.--Section 116(a)(5) of the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2326(a)(5)) is amended by
striking ``section 9212'' and all that follows and inserting ``section
7207 of the Native Hawaiian Education Act''.
(d) Museum and Library Services Act.--Section 261 of the Museum and
Library Services Act (20 U.S.C. 9161) is amended by striking ``section
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and
inserting ``section 7207 of the Native Hawaiian Education Act''.
(e) Act of April 16, 1934.--Section 5 of the Act of April 16, 1934
(commonly known as the ``Johnson-O'Malley Act'') (88 Stat. 2213; 25
U.S.C. 456) is amended by striking ``section 9104(c)(4)'' and inserting
``section 7114(c)(4)''.
(f) Native American Languages Act.--Section 103 of the Native
American Languages Act (25 U.S.C. 2902) is amended--
(1) in paragraph (2), by striking ``section 9161(4) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7881(4))'' and inserting ``section 7151(3) of the Elementary and
Secondary Education Act of 1965''; and
(2) in paragraph (3), by striking ``section 9212(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7912(1))'' and inserting ``section 7207 of the Elementary and
Secondary Education Act of 1965''.
(g) Workforce Investment Act of 1998.--Section 166(b)(3) of the
Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) is amended by
striking ``paragraphs (1) and (3), respectively, of section 9212 of the
Native Hawaiian Education Act (20 U.S.C. 7912)'' and inserting
``section 7207 of the Native Hawaiian Education Act''.
(h) Assets for Independence Act.--Section 404(11) of the Assets for
Independence Act (42 U.S.C. 604 note) is amended by striking ``section
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and
inserting ``section 7207 of the Native Hawaiian Education Act''.
SEC. 703. SAVINGS PROVISIONS.
Funds appropriated for parts A, B, and C of title IX of the
Elementary and Secondary Education Act of 1965 (as in effect on the day
before the date of enactment of this Act) shall be available for use
under parts A, B, and C, respectively, of title VII of such Act, as
added by this section.
TITLE VIII--IMPACT AID PROGRAM
SEC. 801. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
(a) Foundation Payments for Pre-1995 Recipients.--Section
8002(h)(1) (20 U.S.C. 7702(h)(1)) is amended--
(1) in subparagraph (A), by striking ``and was eligible to
receive a payment under section 2 of the Act of September 30,
1950'' and inserting ``and that filed, or has been determined
pursuant to statute to have filed a timely application, and met, or
has been determined pursuant to statute to meet, the eligibility
requirements of section 2(a)(1)(C) of the Act of September 30,
1950''; and
(2) in subparagraph (B), by striking ``(or if the local
educational agency was not eligible to receive a payment under such
section 2 for fiscal year 1994'' and inserting ``(or if the local
educational agency did not meet, or has not been determined
pursuant to statute to meet, the eligibility requirements of
section 2(a)(1)(C) of the Act of September 30, 1950 for fiscal year
1994''.
(b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 U.S.C.
7702(h)(2)) is amended--
(1) in subparagraph (A), by adding at the end before the period
``, or whose application under this section for fiscal year 1995
was determined pursuant to statute to be timely filed for purposes
of payments for subsequent fiscal years''; and
(2) in subparagraph (B)(ii), by striking ``for each local
educational agency that received a payment under this section for
fiscal year 1995'' and inserting ``for each local educational
agency described in subparagraph (A)''.
(c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C.
7702(h)(4)(B)) is amended--
(1) by striking ``(in the same manner as percentage shares are
determined for local educational agencies under paragraph
(2)(B)(ii))'' and inserting ``(by dividing the maximum amount that
the agency is eligible to receive under subsection (b) by the total
of the maximum amounts for all such agencies)''; and
(2) by striking ``, except that for the purpose of calculating
a local educational agency's assessed value of the Federal
property'' and inserting ``, except that, for the purpose of
calculating a local educational agency's maximum amount under
subsection (b)''.
(d) Additional Assistance for Certain Local Educational Agencies
Impacted by Federal Property Acquisition.--Section 8002 (20 U.S.C.
7702) is amended by striking subsection (j).
(e) Minimum Payment With Respect to Loss of Eligibility of Certain
Local Educational Agencies.--Section 8002 (20 U.S.C. 7702) is amended
by adding at the end the following:
``(n) Loss of Eligibility.--
``(1) In general.--Notwithstanding any other provision of this
section, the Secretary shall make a minimum payment to a local
educational agency described in paragraph (2), for the first fiscal
year that the agency loses eligibility for assistance under this
section as a result of property located within the school district
served by the agency failing to meet the definition of Federal
property under section 8013(5)(C)(iii), in an amount equal to 90
percent of the amount received by the agency under this section for
the preceding year.
``(2) Local educational agency described.--A local educational
agency described in this paragraph is an agency that--
``(A) was eligible for, and received, a payment under this
section for fiscal year 2002; and
``(B) beginning in fiscal year 2003 or a subsequent fiscal
year, is no longer eligible for payments under this section as
provided for in subsection (a)(1)(C) as a result of the
transfer of the Federal property involved to a non-Federal
entity.''.
(f) Application for Payment.--Notwithstanding any other provision
of law, the Secretary shall treat as timely filed an application under
section 8002 (20 U.S.C. 7702) from Academy School District 20,
Colorado, for a payment for fiscal year 1999, and shall process that
application from funds appropriated for that section for fiscal year
2001.
SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
(a) Eligibility for Certain Heavily Impacted Local Educational
Agencies.--
(1) In general.--Section 8003(b)(2)(C) (20 U.S.C.
7703(b)(2)(C)) is amended--
(A) in clauses (i) and (ii), by inserting after ``Federal
military installation'' each place it appears the following:
``(or if the agency is a qualified local educational agency as
described in clause (iv))''; and
(B) by adding at the end the following:
``(iv) Qualified local educational agency.--A qualified
local educational agency described in this clause is an
agency that meets the following requirements:
``(I) The boundaries of the agency are the same as
island property designated by the Secretary of the
Interior to be property that is held in trust by the
Federal Government.
``(II) The agency has no taxing authority.
``(III) The agency received a payment under
paragraph (1) for fiscal year 2001.''.
(2) Effective date.--The Secretary shall consider an
application for a payment under section 8003(b)(2) for fiscal year
2002 from a qualified local educational agency described in section
8003(b)(2)(C)(iv), as added by paragraph (1), as meeting the
requirements of section 8003(b)(2)(C)(iii), and shall provide a
payment under section 8003(b)(2) for fiscal year 2002, if the
agency submits to the Secretary an application for payment under
such section not later than 30 days after the date of enactment of
this Act.
(b) Applications for Payment.--
(1) Warner public schools, muskogee county, oklahoma.--
Notwithstanding any other provision of law, the Secretary of
Education shall treat as timely filed an application under section
8003 (20 U.S.C. 7703) from Warner Public Schools, Muskogee County,
Oklahoma, for a payment for fiscal year 2002, and shall process
that application for payment, if the Secretary has received the
fiscal year 2002 application not later than 30 days after the date
of enactment of this Act.
(2) Pine point school, school district 25, minnesota.--
Notwithstanding any other provision of law, the Secretary shall
treat as timely filed an application under section 8003 (20 U.S.C.
7703) from Pine Point School, School District 25, Minnesota, for a
payment for fiscal year 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.
SEC. 803. CONSTRUCTION.
Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as follows:
``(b) School Facility Emergency and Modernization Grants
Authorized.--
``(1) In general.--From 60 percent of the amount appropriated
for each fiscal year under section 8014(e), the Secretary--
``(A) shall award emergency grants in accordance with this
subsection to eligible local educational agencies to enable the
agencies to carry out emergency repairs of school facilities;
and
``(B) shall award modernization grants in accordance with
this subsection to eligible local educational agencies to
enable the agencies to carry out the modernization of school
facilities.
``(2) Priority.--In approving applications from local
educational agencies for emergency grants and modernization grants
under this subsection, the Secretary shall give priority to
applications in accordance with the following:
``(A) The Secretary shall first give priority to
applications for emergency grants from local educational
agencies that meet the requirements of paragraph (3)(A) and,
among such applications for emergency grants, shall give
priority to those applications of local educational agencies
based on the severity of the emergency, as determined by the
Secretary.
``(B) The Secretary shall next give priority to
applications for emergency grants from local educational
agencies that meet the requirements of subparagraph (C) or (D)
of paragraph (3) and, among such applications for emergency
grants, shall give priority to those applications of local
educational agencies based on the severity of the emergency, as
determined by the Secretary.
``(C) The Secretary shall next give priority to
applications for modernization grants from local educational
agencies that meet the requirements of paragraph (3)(B) and,
among such applications for modernization grants, shall give
priority to those applications of local educational agencies
based on the severity of the need for modernization, as
determined by the Secretary.
``(D) The Secretary shall next give priority to
applications for modernization grants from local educational
agencies that meet the requirements of subparagraph (C) or (D)
of paragraph (3) and, among such applications for modernization
grants, shall give priority to those applications of local
educational agencies based on the severity of the need for
modernization, as determined by the Secretary.
``(3) Eligibility requirements.--
``(A) Emergency grants.--A local educational agency is
eligible to receive an emergency grant under paragraph (2)(A)
if--
``(i) the agency (or in the case of a local educational
agency that does not have the authority to tax or issue
bonds, the agency's fiscal agent)--
``(I) has no practical capacity to issue bonds;
``(II) has minimal capacity to issue bonds and is
at not less than 75 percent of the agency's limit of
bonded indebtedness; or
``(III) does not meet the requirements of
subclauses (I) and (II) but is eligible to receive
funds under section 8003(b)(2) for the fiscal year; and
``(ii) the agency is eligible to receive assistance
under subsection (a) for the fiscal year and has a school
facility emergency, as determined by the Secretary, that
poses a health or safety hazard to the students and school
personnel assigned to the school facility.
``(B) Modernization grants.--A local educational agency is
eligible to receive a modernization grant under paragraph
(2)(C) if--
``(i) the agency is eligible to receive assistance
under this title for the fiscal year;
``(ii) the agency (or in the case of a local
educational agency that does not have the authority to tax
or issue bonds, the agency's fiscal agent) meets the
requirements of subclause (I), (II), or (III) of
subparagraph (A)(i); and
``(iii) the agency has facility needs resulting from
the presence of the Federal Government, such as the
enrollment of federally connected children, the presence of
tax-exempt Federal property, or an increase in enrollment
due to the expansion of Federal activities, housing
privatization, or the acquisition of Federal property.
``(C) Additional eligibility for emergency and
modernization grants.--(i) A local educational agency is
eligible to receive an emergency grant or a modernization grant
under subparagraph (B) or (D) of paragraph (2), respectively,
if the agency meets the following requirements:
``(I) The agency receives a basic support payment under
section 8003(b) for the fiscal year and the agency meets at
least one of the following requirements:
``(aa) The number of children determined under
section 8003(a)(1)(C) for the agency for the preceding
school year constituted at least 40 percent of the
total student enrollment in the schools of the agency
during the preceding school year.
``(bb) The number of children determined under
subparagraphs (B) and (D)(i) of section 8003(a)(1) for
the agency for the preceding school year constituted at
least 40 percent of the total student enrollment in the
schools of the agency during the preceding school year.
``(II) The agency (or in the case of a local
educational agency that does not have the authority to tax
or issue bonds, the agency's fiscal agent) is at not less
than 75 percent of the agency's limit of bonded
indebtedness.
``(III) The agency has an assessed value of real
property per student that may be taxed for school purposes
that is less than the average of the assessed value of real
property per student that may be taxed for school purposes
in the State in which the local educational agency is
located.
``(ii) A local educational agency is also eligible to
receive a modernization grant under this subparagraph if the
agency is eligible to receive assistance under section 8002 for
the fiscal year and meets the requirements of subclauses (II)
and (III) of clause (i).
``(D) Special rule.--
``(i) In general.--Any school described in clause (ii)
that desires to receive an emergency grant or a
modernization grant under subparagraph (B) or (D) of
paragraph (2), respectively, shall, except as provided in
the following sentence, submit an application in accordance
with paragraph (6), and shall otherwise be treated as a
local educational agency for the purpose of this
subsection. The school shall submit an application for the
grant to the local educational agency of such school and
the agency shall submit the application on behalf of the
school to the Secretary.
``(ii) School described.--A school described in this
clause is a school that meets the following requirements:
``(I) The school is located within the geographic
boundaries of a local educational agency that does not
meet the applicable eligibility requirements under
subparagraph (A), (B), or (C) for a grant under this
subsection.
``(II) The school meets at least one of the
following requirements:
``(aa) The number of children determined under
section 8003(a)(1)(C) for the school for the
preceding school year constituted at least 40
percent of the total student enrollment in the
school during the preceding school year.
``(bb) The number of children determined under
subparagraphs (B) and (D)(i) of section 8003(a)(1)
for the school for the preceding school year
constituted at least 40 percent of the total
student enrollment in the school during the
preceding school year.
``(III) The school is located within the geographic
boundaries of a local educational agency that meets the
requirements of subclauses (II) and (III) of
subparagraph (C)(i).
``(E) Rule of construction.--For purposes of subparagraph
(A)(i), a local educational agency--
``(i) has no practical capacity to issue bonds if the
total assessed value of real property that may be taxed for
school purposes is less than $25,000,000; and
``(ii) has minimal capacity to issue bonds if the total
assessed value of real property that may be taxed for
school purposes is at least $25,000,000 but not more than
$50,000,000.
``(4) Award criteria.--In awarding emergency grants and
modernization grants under this subsection, the Secretary shall
consider the following factors:
``(A) The ability of the local educational agency to
respond to the emergency, or to pay for the modernization
project, as the case may be, as measured by--
``(i) the agency's level of bonded indebtedness;
``(ii) the assessed value of real property per student
that may be taxed for school purposes compared to the
average of the assessed value of real property per student
that may be taxed for school purposes in the State in which
the agency is located;
``(iii) the agency's total tax rate for school purposes
(or, if applicable, for capital expenditures) compared to
the average total tax rate for school purposes (or the
average capital expenditure tax rate, if applicable) in the
State in which the agency is located; and
``(iv) funds that are available to the agency, from any
other source, including subsection (a), that may be used
for capital expenditures.
``(B) The percentage of property in the agency that is
nontaxable due to the presence of the Federal Government.
``(C) The number and percentages of children described in
subparagraphs (A), (B), (C), and (D) of section 8003(a)(1)
served in the school facility with the emergency or served in
the school facility proposed for modernization, as the case may
be.
``(D) In the case of an emergency grant, the severity of
the emergency, as measured by the threat that the condition of
the school facility poses to the health, safety, and well-being
of students.
``(E) In the case of a modernization grant--
``(i) the severity of the need for modernization, as
measured by such factors as--
``(I) overcrowding, as evidenced by the use of
portable classrooms, or the potential for future
overcrowding because of increased enrollment; or
``(II) the agency's inability to utilize technology
or offer a curriculum in accordance with contemporary
State standards due to the physical limitations of the
current school facility; and
``(ii) the age of the school facility proposed for
modernization.
``(5) Other award provisions.--
``(A) General provisions.--
``(i) Limitations on amount of funds.--
``(I) In general.--The amount of funds provided
under an emergency grant or a modernization grant
awarded under this subsection to a local educational
agency that meets the requirements of subclause (II) or
(III) of paragraph (3)(A)(i) for purposes of
eligibility under subparagraph (A) or (B) of paragraph
(3) or that meets the requirements of clause (i) or
(ii) of paragraph (3)(C) for purposes of eligibility
under such paragraph (3)(C), or to a school that is
eligible under paragraph (3)(D)--
``(aa) shall not exceed 50 percent of the total
cost of the project to be assisted under this
subsection; and
``(bb) shall not exceed $4,000,000 during any
4-year period.
``(II) In-kind contributions.--A local educational
agency may use in-kind contributions to meet the
matching requirement of subclause (I)(aa).
``(ii) Prohibitions on use of funds.--A local
educational agency may not use funds provided under an
emergency grant or modernization grant awarded under this
subsection for--
``(I) a project for a school facility for which the
agency does not have full title or other interest;
``(II) stadiums or other school facilities that are
primarily used for athletic contests, exhibitions, or
other events for which admission is charged to the
general public; or
``(III) the acquisition of real property.
``(iii) Supplement, not supplant.--A local educational
agency shall use funds provided under an emergency grant or
modernization grant awarded under this subsection only to
supplement the amount of funds that would, in the absence
of the Federal funds provided under the grant, be made
available from non-Federal sources to carry out emergency
repairs of school facilities or to carry out the
modernization of school facilities, as the case may be, and
not to supplant such funds.
``(iv) Maintenance costs.--Nothing in this subsection
shall be construed to authorize the payment of maintenance
costs in connection with any school facility modernized in
whole or in part with Federal funds provided under this
subsection.
``(v) Environmental safeguards.--All projects carried
out with Federal funds provided under this subsection shall
comply with all relevant Federal, State, and local
environmental laws and regulations.
``(vi) Carry-over of certain applications.--A local
educational agency that applies for an emergency grant or a
modernization grant under this subsection for a fiscal year
and does not receive the grant for the fiscal year shall
have the application for the grant considered for the
following fiscal year, subject to the priority requirements
of paragraph (2) and the award criteria requirements of
paragraph (4).
``(B) Emergency grants; prohibition on use of funds.--A
local educational agency that is awarded an emergency grant
under this subsection may not use amounts under the grant for
the complete or partial replacement of an existing school
facility unless such replacement is less expensive or more
cost-effective than correcting the identified emergency.
``(6) Application.--A local educational agency that desires to
receive an emergency grant or a modernization grant under this
subsection shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information as the
Secretary may require. Each application shall contain the
following:
``(A) A description of how the local educational agency
meets the award criteria under paragraph (4), including the
information described in clauses (i) through (iv) of paragraph
(4)(A) and subparagraphs (B) and (C) of paragraph (4).
``(B) In the case of an application for an emergency
grant--
``(i) a description of the school facility deficiency
that poses a health or safety hazard to the occupants of
the facility and a description of how the deficiency will
be repaired; and
``(ii) a signed statement from an appropriate local
official certifying that a deficiency in the school
facility threatens the health or safety of the occupants of
the facility or that prevents the use of all or a portion
of the building.
``(C) In the case of an application for a modernization
grant--
``(i) an explanation of the need for the school
facility modernization project;
``(ii) the date on which original construction of the
facility to be modernized was completed;
``(iii) a listing of the school facilities to be
modernized, including the number and percentage of children
determined under section 8003(a)(1) in average daily
attendance in each school facility; and
``(iv) a description of the ownership of the property
on which the current school facility is located or on which
the planned school facility will be located.
``(D) A description of the project for which a grant under
this subsection will be used, including a cost estimate for the
project.
``(E) A description of the interest in, or authority over,
the school facility involved, such as an ownership interest or
a lease arrangement.
``(F) Such other information and assurances as the
Secretary may reasonably require.
``(7) Report.--
``(A) In general.--Not later than January 1 of each year,
the Secretary shall prepare and submit to the appropriate
congressional committees a report that contains a justification
for each grant awarded under this subsection for the prior
fiscal year.
``(B) Definition.--In this paragraph, the term `appropriate
congressional committees' means--
``(i) the Committee on Appropriations and the Committee
on Education and the Workforce of the House of
Representatives; and
``(ii) the Committee on Appropriations and the
Committee on Health, Education, Labor, and Pensions of the
Senate.''.
SEC. 804. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.
Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amended by inserting
after ``section 8003(a)(2)(B)'' the following: ``and, with respect to a
local educational agency that receives a payment under section
8003(b)(2), the amount in excess of the amount that the agency would
receive if the agency were deemed to be an agency eligible to receive a
payment under section 8003(b)(1) and not section 8003(b)(2)''.
SEC. 805. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 8014 (20 U.S.C. 7714) is amended in
subsections (a), (b), (c), and (f) by striking ``three succeeding
fiscal years'' each place it appears and inserting ``seven succeeding
fiscal years''.
(b) Construction.--Section 8014(e) (20 U.S.C. 7714(e)) is amended
by striking ``for each of the three succeeding fiscal years'' and
inserting ``for fiscal year 2001, $150,000,000 for fiscal year 2002,
and such sums as may be necessary for each of the five succeeding
fiscal years''.
(c) Additional Assistance for Certain Local Educational Agencies
Impacted by Federal Property Acquisition.--Section 8014 (20 U.S.C.
7714) is amended by striking subsection (g).
TITLE IX--GENERAL PROVISIONS
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. DEFINITIONS.
``Except as otherwise provided, in this Act:
``(1) Average daily attendance.--
``(A) In general.--Except as provided otherwise by State
law or this paragraph, the term `average daily attendance'
means--
``(i) the aggregate number of days of attendance of all
students during a school year; divided by
``(ii) the number of days school is in session during
that year.
``(B) Conversion.--The Secretary shall permit the
conversion of average daily membership (or other similar data)
to average daily attendance for local educational agencies in
States that provide State aid to local educational agencies on
the basis of average daily membership (or other similar data).
``(C) Special rule.--If the local educational agency in
which a child resides makes a tuition or other payment for the
free public education of the child in a school located in
another school district, the Secretary shall, for the purpose
of this Act--
``(i) consider the child to be in attendance at a
school of the agency making the payment; and
``(ii) not consider the child to be in attendance at a
school of the agency receiving the payment.
``(D) Children with disabilities.--If a local educational
agency makes a tuition payment to a private school or to a
public school of another local educational agency for a child
with a disability, as defined in section 602 of the Individuals
with Disabilities Education Act, the Secretary shall, for the
purpose of this Act, consider the child to be in attendance at
a school of the agency making the payment.
``(2) Average per-pupil expenditure.--The term `average per-
pupil expenditure' means, in the case of a State or of the United
States--
``(A) without regard to the source of funds--
``(i) the aggregate current expenditures, during the
third fiscal year preceding the fiscal year for which the
determination is made (or, if satisfactory data for that
year are not available, during the most recent preceding
fiscal year for which satisfactory data are available) of
all local educational agencies in the State or, in the case
of the United States, for all States (which, for the
purpose of this paragraph, means the 50 States and the
District of Columbia); plus
``(ii) any direct current expenditures by the State for
the operation of those agencies; divided by
``(B) the aggregate number of children in average daily
attendance to whom those agencies provided free public
education during that preceding year.
``(3) Beginning teacher.--The term `beginning teacher' means a
teacher in a public school who has been teaching less than a total
of 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.
``(10) Consolidated state plan.--The term `consolidated State
plan' means a plan submitted by a State educational agency pursuant
to section 9302.
``(11) Core academic subjects.--The term `core academic
subjects' means English, reading or language arts, mathematics,
science, foreign languages, civics and government, economics, arts,
history, and geography.
``(12) County.--The term `county' means one of the divisions of
a State used by the Secretary of Commerce in compiling and
reporting data regarding counties.
``(13) Covered program.--The term `covered program' means each
of the programs authorized by--
``(A) part A of title I;
``(B) subpart 3 of part B of title I;
``(C) part C of title I;
``(D) part D of title I;
``(E) part F of title I;
``(F) part A of title II;
``(G) part D of title II;
``(H) part A of title III;
``(I) part A of title IV;
``(J) part B of title IV;
``(K) part A of title V; and
``(L) subpart 2 of part B of title VI.
``(14) Current expenditures.--The term `current expenditures'
means expenditures for free public education--
``(A) including expenditures for administration,
instruction, attendance and health services, pupil
transportation services, operation and maintenance of plant,
fixed charges, and net expenditures to cover deficits for food
services and student body activities; but
``(B) not including expenditures for community services,
capital outlay, and debt service, or any expenditures made from
funds received under title I and part A of title V.
``(15) Department.--The term `Department' means the Department
of Education.
``(16) Distance learning.--The term `distance learning' means
the transmission of educational or instructional programming to
geographically dispersed individuals and groups via
telecommunications.
``(17) Educational service agency.--The term `educational
service agency' means a regional public multiservice agency
authorized by State statute to develop, manage, and provide
services or programs to local educational agencies.
``(18) Elementary school.--The term `elementary school' means a
nonprofit institutional day or residential school, including a
public elementary charter school, that provides elementary
education, as determined under State law.
``(19) Exemplary teacher.--The term `exemplary teacher' means a
teacher who--
``(A) is a highly qualified teacher such as a master
teacher;
``(B) has been teaching for at least 5 years in a public or
private school or institution of higher education;
``(C) is recommended to be an exemplary teacher by
administrators and other teachers who are knowledgeable about
the individual's performance;
``(D) is currently teaching and based in a public school;
and
``(E) assists other teachers in improving instructional
strategies, improves the skills of other teachers, performs
teacher mentoring, develops curricula, and offers other
professional development.
``(20) Family literacy services.--The term `family literacy
services' means services provided to participants on a voluntary
basis that are of sufficient intensity in terms of hours, and of
sufficient duration, to make sustainable changes in a family, and
that integrate all of the following activities:
``(A) Interactive literacy activities between parents and
their children.
``(B) Training for parents regarding how to be the primary
teacher for their children and full partners in the education
of their children.
``(C) Parent literacy training that leads to economic self-
sufficiency.
``(D) An age-appropriate education to prepare children for
success in school and life experiences.
``(21) Free public education.--The term `free public education'
means education that is provided--
``(A) at public expense, under public supervision and
direction, and without tuition charge; and
``(B) as elementary school or secondary school education as
determined under applicable State law, except that the term
does not include any education provided beyond grade 12.
``(22) Gifted and talented.--The term `gifted and talented',
when used with respect to students, children, or youth, means
students, children, or youth who give evidence of high achievement
capability in areas such as intellectual, creative, artistic, or
leadership capacity, or in specific academic fields, and who need
services or activities not ordinarily provided by the school in
order to fully develop those capabilities.
``(23) Highly qualified.--The term `highly qualified'--
``(A) when used with respect to any public elementary
school or secondary school teacher teaching in a State, means
that--
``(i) the teacher has obtained full State certification
as a teacher (including certification obtained through
alternative routes to certification) or passed the State
teacher licensing examination, and holds a license to teach
in such State, except that when used with respect to any
teacher teaching in a public charter school, the term means
that the teacher meets the requirements set forth in the
State's public charter school law; and
``(ii) the teacher has not had certification or
licensure requirements waived on an emergency, temporary,
or provisional basis;
``(B) when used with respect to--
``(i) an elementary school teacher who is new to the
profession, means that the teacher--
``(I) holds at least a bachelor's degree; and
``(II) has demonstrated, by passing a rigorous
State test, subject knowledge and teaching skills in
reading, writing, mathematics, and other areas of the
basic elementary school curriculum (which may consist
of passing a State-required certification or licensing
test or tests in reading, writing, mathematics, and
other areas of the basic elementary school curriculum);
or
``(ii) a middle or secondary school teacher who is new
to the profession, means that the teacher holds at least a
bachelor's degree and has demonstrated a high level of
competency in each of the academic subjects in which the
teacher teaches by--
``(I) passing a rigorous State academic subject
test in each of the academic subjects in which the
teacher teaches (which may consist of a passing level
of performance on a State-required certification or
licensing test or tests in each of the academic
subjects in which the teacher teaches); or
``(II) successful completion, in each of the
academic subjects in which the teacher teaches, of an
academic major, a graduate degree, coursework
equivalent to an undergraduate academic major, or
advanced certification or credentialing; and
``(C) when used with respect to an elementary, middle, or
secondary school teacher who is not new to the profession,
means that the teacher holds at least a bachelor's degree and--
``(i) has met the applicable standard in clause (i) or
(ii) of subparagraph (B), which includes an option for a
test; or
``(ii) demonstrates competence in all the academic
subjects in which the teacher teaches based on a high
objective uniform State standard of evaluation that--
``(I) is set by the State for both grade
appropriate academic subject matter knowledge and
teaching skills;
``(II) is aligned with challenging State academic
content and student academic achievement standards and
developed in consultation with core content
specialists, teachers, principals, and school
administrators;
``(III) provides objective, coherent information
about the teacher's attainment of core content
knowledge in the academic subjects in which a teacher
teaches;
``(IV) is applied uniformly to all teachers in the
same academic subject and the same grade level
throughout the State;
``(V) takes into consideration, but not be based
primarily on, the time the teacher has been teaching in
the academic subject;
``(VI) is made available to the public upon
request; and
``(VII) may involve multiple, objective measures of
teacher competency.
``(24) Institution of higher education.--The term `institution
of higher education' has the meaning given that term in section
101(a) of the Higher Education Act of 1965.
``(25) Limited english proficient.--The term `limited English
proficient', when used with respect to an individual, means an
individual--
``(A) who is aged 3 through 21;
``(B) who is enrolled or preparing to enroll in an
elementary school or secondary school;
``(C)(i) who was not born in the United States or whose
native language is a language other than English;
``(ii)(I) who is a Native American or Alaska Native, or a
native resident of the outlying areas; and
``(II) who comes from an environment where a language other
than English has had a significant impact on the individual's
level of English language proficiency; or
``(iii) who is migratory, whose native language is a
language other than English, and who comes from an environment
where a language other than English is dominant; and
``(D) whose difficulties in speaking, reading, writing, or
understanding the English language may be sufficient to deny
the individual--
``(i) the ability to meet the State's proficient level
of achievement on State assessments described in section
1111(b)(3);
``(ii) the ability to successfully achieve in
classrooms where the language of instruction is English; or
``(iii) the opportunity to participate fully in
society.
``(26) Local educational agency.--
``(A) In general.--The term `local educational agency'
means a public board of education or other public authority
legally constituted within a State for either administrative
control or direction of, or to perform a service function for,
public elementary schools or secondary schools in a city,
county, township, school district, or other political
subdivision of a State, or of or for a combination of school
districts or counties that is recognized in a State as an
administrative agency for its public elementary schools or
secondary schools.
``(B) Administrative control and direction.--The term
includes any other public institution or agency having
administrative control and direction of a public elementary
school or secondary school.
``(C) BIA schools.--The term includes an elementary school
or secondary school funded by the Bureau of Indian Affairs but
only to the extent that including the school makes the school
eligible for programs for which specific eligibility is not
provided to the school in another provision of law and the
school does not have a student population that is smaller than
the student population of the local educational agency
receiving assistance under this Act with the smallest student
population, except that the school shall not be subject to the
jurisdiction of any State educational agency other than the
Bureau of Indian Affairs.
``(D) Educational service agencies.--The term includes
educational service agencies and consortia of those agencies.
``(E) State educational agency.--The term includes the
State educational agency in a State in which the State
educational agency is the sole educational agency for all
public schools.
``(27) Mentoring.--The term `mentoring', except when used to
refer to teacher mentoring, means a process by which a responsible
adult, postsecondary student, or secondary school student works
with a child to provide a positive role model for the child, to
establish a supportive relationship with the child, and to provide
the child with academic assistance and exposure to new experiences
and examples of opportunity that enhance the ability of the child
to become a responsible adult.
``(28) Native american and native american language.--The terms
`Native American' and `Native American language' have the same
meaning given those terms in section 103 of the Native American
Languages Act of 1990.
``(29) Other staff.--The term `other staff' means pupil
services personnel, librarians, career guidance and counseling
personnel, education aides, and other instructional and
administrative personnel.
``(30) Outlying area.--The term `outlying area' means the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, and for the purpose
of section 1121(b) and any other discretionary grant program under
this Act, includes the freely associated states of the Republic of
the Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau until an agreement for the extension of United
States education assistance under the Compact of Free Association
for each of the freely associated states becomes effective after
the date of enactment of the No Child Left Behind Act of 2001.
``(31) Parent.--The term `parent' includes a legal guardian or
other person standing in loco parentis (such as a grandparent or
stepparent with whom the child lives, or a person who is legally
responsible for the child's welfare).
``(32) Parental involvement.--The term `parental involvement'
means the participation of parents in regular, two-way, and
meaningful communication involving student academic learning and
other school activities, including ensuring--
``(A) that parents play an integral role in assisting their
child's learning;
``(B) that parents are encouraged to be actively involved
in their child's education at school;
``(C) that parents are full partners in their child's
education and are included, as appropriate, in decisionmaking
and on advisory committees to assist in the education of their
child;
``(D) the carrying out of other activities, such as those
described in section 1118.
``(33) Poverty line.--The term `poverty line' means the poverty
line (as defined by the Office of Management and Budget and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act) applicable to a family of the size
involved.
``(34) Professional development.--The term `professional
development'--
``(A) includes activities that--
``(i) improve and increase teachers' knowledge of the
academic subjects the teachers teach, and enable teachers
to become highly qualified;
``(ii) are an integral part of broad schoolwide and
districtwide educational improvement plans;
``(iii) give teachers, principals, and administrators
the knowledge and skills to provide students with the
opportunity to meet challenging State academic content
standards and student academic achievement standards;
``(iv) improve classroom management skills;
``(v)(I) are high quality, sustained, intensive, and
classroom-focused in order to have a positive and lasting
impact on classroom instruction and the teacher's
performance in the classroom; and
``(II) are not 1-day or short-term workshops or
conferences;
``(vi) support the recruiting, hiring, and training of
highly qualified teachers, including teachers who became
highly qualified through State and local alternative routes
to certification;
``(vii) advance teacher understanding of effective
instructional strategies that are--
``(I) based on scientifically based research
(except that this subclause shall not apply to
activities carried out under part D of title II); and
``(II) strategies for improving student academic
achievement or substantially increasing the knowledge
and teaching skills of teachers; and
``(viii) are aligned with and directly related to--
``(I) State academic content standards, student
academic achievement standards, and assessments; and
``(II) the curricula and programs tied to the
standards described in subclause (I) except that this
subclause shall not apply to activities described in
clauses (ii) and (iii) of section 2123(3)(B);
``(ix) are developed with extensive participation of
teachers, principals, parents, and administrators of
schools to be served under this Act;
``(x) are designed to give teachers of limited English
proficient children, and other teachers and instructional
staff, the knowledge and skills to provide instruction and
appropriate language and academic support services to those
children, including the appropriate use of curricula and
assessments;
``(xi) to the extent appropriate, provide training for
teachers and principals in the use of technology so that
technology and technology applications are effectively used
in the classroom to improve teaching and learning in the
curricula and core academic subjects in which the teachers
teach;
``(xii) as a whole, are regularly evaluated for their
impact on increased teacher effectiveness and improved
student academic achievement, with the findings of the
evaluations used to improve the quality of professional
development;
``(xiii) provide instruction in methods of teaching
children with special needs;
``(xiv) include instruction in the use of data and
assessments to inform and instruct classroom practice; and
``(xv) include instruction in ways that teachers,
principals, pupil services personnel, and school
administrators may work more effectively with parents; and
``(B) may include activities that--
``(i) involve the forming of partnerships with
institutions of higher education to establish school-based
teacher training programs that provide prospective teachers
and beginning teachers with an opportunity to work under
the guidance of experienced teachers and college faculty;
``(ii) create programs to enable paraprofessionals
(assisting teachers employed by a local educational agency
receiving assistance under part A of title I) to obtain the
education necessary for those paraprofessionals to become
certified and licensed teachers; and
``(iii) provide follow-up training to teachers who have
participated in activities described in subparagraph (A) or
another clause of this subparagraph that are designed to
ensure that the knowledge and skills learned by the
teachers are implemented in the classroom.
``(35) Public telecommunications entity.--The term `public
telecommunications entity' has the meaning given that term in
section 397(12) of the Communications Act of 1934.
``(36) Pupil services personnel; pupil services.--
``(A) Pupil services personnel.--The term `pupil services
personnel' means school counselors, school social workers,
school psychologists, and other qualified professional
personnel involved in providing assessment, diagnosis,
counseling, educational, therapeutic, and other necessary
services (including related services as that term is defined in
section 602 of the Individuals with Disabilities Education Act)
as part of a comprehensive program to meet student needs.
``(B) Pupil services.--The term `pupil services' means the
services provided by pupil services personnel.
``(37) Scientifically based research.--The term `scientifically
based research'--
``(A) means research that involves the application of
rigorous, systematic, and objective procedures to obtain
reliable and valid knowledge relevant to education activities
and programs; and
``(B) includes research that--
``(i) employs systematic, empirical methods that draw
on observation or experiment;
``(ii) involves rigorous data analyses that are
adequate to test the stated hypotheses and justify the
general conclusions drawn;
``(iii) relies on measurements or observational methods
that provide reliable and valid data across evaluators and
observers, across multiple measurements and observations,
and across studies by the same or different investigators;
``(iv) is evaluated using experimental or quasi-
experimental designs in which individuals, entities,
programs, or activities are assigned to different
conditions and with appropriate controls to evaluate the
effects of the condition of interest, with a preference for
random-assignment experiments, or other designs to the
extent that those designs contain within-condition or
across-condition controls;
``(v) ensures that experimental studies are presented
in sufficient detail and clarity to allow for replication
or, at a minimum, offer the opportunity to build
systematically on their findings; and
``(vi) has been accepted by a peer-reviewed journal or
approved by a panel of independent experts through a
comparably rigorous, objective, and scientific review.
``(38) Secondary school.--The term `secondary school' means a
nonprofit institutional day or residential school, including a
public secondary charter school, that provides secondary education,
as determined under State law, except that the term does not
include any education beyond grade 12.
``(39) Secretary.--The term `Secretary' means the Secretary of
Education.
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
education, another local educational agency, a teacher
organization, or another organization.
``(43) Technology.--The term `technology' means state-of-the-
art technology products and services.
``SEC. 9102. APPLICABILITY OF TITLE.
``Parts B, C, D, and E of this title do not apply to title VIII of
this Act.
``SEC. 9103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED
SCHOOLS.
``For the purpose of any competitive program under this Act--
``(1) a consortium of schools operated by the Bureau of Indian
Affairs;
``(2) a school operated under a contract or grant with the
Bureau of Indian Affairs in consortium with another contract or
grant school or a tribal or community organization; or
``(3) a Bureau of Indian Affairs school in consortium with an
institution of higher education, a contract or grant school, or a
tribal or community organization,
shall be given the same consideration as a local educational agency.
``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS
``SEC. 9201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR ELEMENTARY
AND SECONDARY EDUCATION PROGRAMS.
``(a) Consolidation of Administrative Funds.--
``(1) In general.--A State educational agency may consolidate
the amounts specifically made available to it for State
administration under one or more of the programs under paragraph
(2) if the State educational agency can demonstrate that the
majority of its resources are derived from non-Federal sources.
``(2) Applicability.--This section applies to any program under
this Act under which funds are authorized to be used for
administration, and such other programs as the Secretary may
designate.
``(b) Use of funds.--
``(1) In general.--A State educational agency shall use the
amount available under this section for the administration of the
programs included in the consolidation under subsection (a).
``(2) Additional uses.--A State educational agency may also use
funds available under this section for administrative activities
designed to enhance the effective and coordinated use of funds
under programs included in the consolidation under subsection (a),
such as--
``(A) the coordination of those programs with other Federal
and non-Federal programs;
``(B) the establishment and operation of peer-review
mechanisms under this Act;
``(C) the administration of this title;
``(D) the dissemination of information regarding model
programs and practices;
``(E) technical assistance under any program under this
Act;
``(F) State-level activities designed to carry out this
title;
``(G) training personnel engaged in audit and other
monitoring activities; and
``(H) implementation of the Cooperative Audit Resolution
and Oversight Initiative of the Department.
``(c) Records.--A State educational agency that consolidates
administrative funds under this section shall not be required to keep
separate records, by individual program, to account for costs relating
to the administration of programs included in the consolidation under
subsection (a).
``(d) Review.--To determine the effectiveness of State
administration under this section, the Secretary may periodically
review the performance of State educational agencies in using
consolidated administrative funds under this section and take such
steps as the Secretary finds appropriate to ensure the effectiveness of
that administration.
``(e) Unused Administrative Funds.--If a State educational agency
does not use all of the funds available to the agency under this
section for administration, the agency may use those funds during the
applicable period of availability as funds available under one or more
programs included in the consolidation under subsection (a).
``(f) Consolidation of Funds for Standards and Assessment
Development.--In order to develop challenging State academic standards
and assessments, a State educational agency may consolidate the amounts
described in subsection (a) for those purposes under title I.
``SEC. 9202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.
``A State educational agency that also serves as a local
educational agency shall, in its applications or plans under this Act,
describe how the agency will eliminate duplication in conducting
administrative functions.
``SEC. 9203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.
``(a) General Authority.--In accordance with regulations of the
Secretary and for any fiscal year, a local educational agency, with the
approval of its State educational agency, may consolidate and use for
the administration of one or more programs under this Act (or such
other programs as the Secretary shall designate) not more than the
percentage, established in each program, of the total available for the
local educational agency under those programs.
``(b) State Procedures.--Within 1 year after the date of enactment
of the No Child Left Behind Act of 2001, a State educational agency
shall, in collaboration with local educational agencies in the State,
establish procedures for responding to requests from local educational
agencies to consolidate administrative funds under subsection (a) and
for establishing limitations on the amount of funds under those
programs that may be used for administration on a consolidated basis.
``(c) Conditions.--A local educational agency that consolidates
administrative funds under this section for any fiscal year shall not
use any other funds under the programs included in the consolidation
for administration for that fiscal year.
``(d) Uses of Administrative Funds.--A local educational agency
that consolidates administrative funds under this section may use the
consolidated funds for the administration of the programs and for uses,
at the school district and school levels, comparable to those described
in section 9201(b)(2).
``(e) Records.--A local educational agency that consolidates
administrative funds under this section shall not be required to keep
separate records, by individual program, to account for costs relating
to the administration of the programs included in the consolidation.
``SEC. 9204. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR
FUNDS.
``(a) General Authority.--
``(1) Transfer.--The Secretary shall transfer to the Department
of the Interior, as a consolidated amount for covered programs, the
Indian education programs under part A of title VII, and the
education for homeless children and youth program under subtitle B
of title VII of the McKinney-Vento Homeless Assistance Act, the
amounts allotted to the Department of the Interior under those
programs.
``(2) Agreement.--
``(A) In general.--The Secretary and the Secretary of the
Interior shall enter into an agreement, consistent with the
requirements of the programs specified in paragraph (1), for
the distribution and use of those program funds under terms
that the Secretary determines best meet the purposes of those
programs.
``(B) Contents.--The agreement shall--
``(i) set forth the plans of the Secretary of the
Interior for the use of the amount transferred and the
achievement measures to assess program effectiveness,
including measurable goals and objectives; and
``(ii) be developed in consultation with Indian tribes.
``(b) Administration.--The Department of the Interior may use not
more than 1.5 percent of the funds consolidated under this section for
its costs related to the administration of the funds transferred under
this section.
``PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS
AND APPLICATIONS
``SEC. 9301. 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. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.
``(a) General Authority.--
``(1) Simplification.--In order to simplify application
requirements and reduce the burden for State educational agencies
under this Act, the Secretary, in accordance with subsection (b),
shall establish procedures and criteria under which, after
consultation with the Governor, a State educational agency may
submit a consolidated State plan or a consolidated State
application meeting the requirements of this section for--
``(A) each of the covered programs in which the State
participates; and
``(B) such other programs as the Secretary may designate.
``(2) Consolidated applications and plans.--After consultation
with the Governor, a State educational agency that submits a
consolidated State plan or a consolidated State application under
this section shall not be required to submit separate State plans
or applications under any of the programs to which the consolidated
State plan or consolidated State application under this section
applies.
``(b) Collaboration.--
``(1) In general.--In establishing criteria and procedures
under this section, the Secretary shall collaborate with State
educational agencies and, as appropriate, with other State
agencies, local educational agencies, public and private nonprofit
agencies, organizations, and institutions, private schools, and
representatives of parents, students, and teachers.
``(2) Contents.--Through the collaborative process described in
paragraph (1), the Secretary shall establish, for each program
under this Act to which this section applies, the descriptions,
information, assurances, and other material required to be included
in a consolidated State plan or consolidated State application.
``(3) Necessary materials.--The Secretary shall require only
descriptions, information, assurances (including assurances of
compliance with applicable provisions regarding participation by
private school children and teachers), and other materials that are
absolutely necessary for the consideration of the consolidated
State plan or consolidated State application.
``SEC. 9303. CONSOLIDATED REPORTING.
``(a) In general.--In order to simplify reporting requirements and
reduce reporting burdens, the Secretary shall establish procedures and
criteria under which a State educational agency, in consultation with
the Governor of the State, may submit a consolidated State annual
report.
``(b) Contents.--The report shall contain information about the
programs included in the report, including the performance of the State
under those programs, and other matters as the Secretary determines are
necessary, such as monitoring activities.
``(c) Replacement.--The report shall replace separate individual
annual reports for the programs included in the consolidated State
annual report.
``SEC. 9304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY
ASSURANCES.
``(a) Assurances.--A State educational agency, in consultation with
the Governor of the State, that submits a consolidated State plan or
consolidated State application under this Act, whether separately or
under section 9302, shall have on file with the Secretary a single set
of assurances, applicable to each program for which the plan or
application is submitted, that provides that--
``(1) each such program will be administered in accordance with
all applicable statutes, regulations, program plans, and
applications;
``(2)(A) the control of funds provided under each such program
and title to property acquired with program funds will be in a
public agency, a nonprofit private agency, institution, or
organization, or an Indian tribe, if the law authorizing the
program provides for assistance to those entities; and
``(B) the public agency, nonprofit private agency, institution,
or organization, or Indian tribe will administer those funds and
property to the extent required by the authorizing law;
``(3) the State will adopt and use proper methods of
administering each such program, including--
``(A) the enforcement of any obligations imposed by law on
agencies, institutions, organizations, and other recipients
responsible for carrying out each program;
``(B) the correction of deficiencies in program operations
that are identified through audits, monitoring, or evaluation;
and
``(C) the adoption of written procedures for the receipt
and resolution of complaints alleging violations of law in the
administration of the programs;
``(4) the State will cooperate in carrying out any evaluation
of each such program conducted by or for the Secretary or other
Federal officials;
``(5) the State will use such fiscal control and fund
accounting procedures as will ensure proper disbursement of, and
accounting for, Federal funds paid to the State under each such
program;
``(6) the State will--
``(A) make reports to the Secretary as may be necessary to
enable the Secretary to perform the Secretary's duties under
each such program; and
``(B) maintain such records, provide such information to
the Secretary, and afford such access to the records as the
Secretary may find necessary to carry out the Secretary's
duties; and
``(7) before the plan or application was submitted to the
Secretary, the State afforded a reasonable opportunity for public
comment on the plan or application and considered such comment.
``(b) GEPA Provision.--Section 441 of the General Education
Provisions Act shall not apply to programs under this Act.
``SEC. 9305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.
``(a) General Authority.--
``(1) Consolidated plan.--A local educational agency receiving
funds under more than one covered program may submit plans or
applications to the State educational agency under those programs
on a consolidated basis.
``(2) Availability to governor.--The State educational agency
shall make any consolidated local plans and applications available
to the Governor.
``(b) Required Consolidated Plans or Applications.--A State
educational agency that has an approved consolidated State plan or
application under section 9302 may require local educational agencies
in the State receiving funds under more than one program included in
the consolidated State plan or consolidated State application to submit
consolidated local plans or applications under those programs, but may
not require those agencies to submit separate plans.
``(c) Collaboration.--A State educational agency, in consultation
with the Governor, shall collaborate with local educational agencies in
the State in establishing procedures for the submission of the
consolidated State plans or consolidated State applications under this
section.
``(d) Necessary Materials.--The State educational agency shall
require only descriptions, information, assurances, and other material
that are absolutely necessary for the consideration of the local
educational agency plan or application.
``SEC. 9306. OTHER GENERAL ASSURANCES.
``(a) Assurances.--Any applicant, other than a State educational
agency that submits a plan or application under this Act, whether
separately or pursuant to section 9305, shall have on file with the
State educational agency a single set of assurances, applicable to each
program for which a plan or application is submitted, that provides
that--
``(1) each such program will be administered in accordance with
all applicable statutes, regulations, program plans, and
applications;
``(2)(A) the control of funds provided under each such program
and title to property acquired with program funds will be in a
public agency or in a nonprofit private agency, institution,
organization, or Indian tribe, if the law authorizing the program
provides for assistance to those entities; and
``(B) the public agency, nonprofit private agency, institution,
or organization, or Indian tribe will administer the funds and
property to the extent required by the authorizing statutes;
``(3) the applicant will adopt and use proper methods of
administering each such program, including--
``(A) the enforcement of any obligations imposed by law on
agencies, institutions, organizations, and other recipients
responsible for carrying out each program; and
``(B) the correction of deficiencies in program operations
that are identified through audits, monitoring, or evaluation;
``(4) the applicant will cooperate in carrying out any
evaluation of each such program conducted by or for the State
educational agency, the Secretary, or other Federal officials;
``(5) the applicant will use such fiscal control and fund
accounting procedures as will ensure proper disbursement of, and
accounting for, Federal funds paid to the applicant under each such
program;
``(6) the applicant will--
``(A) submit such reports to the State educational agency
(which shall make the reports available to the Governor) and
the Secretary as the State educational agency and Secretary may
require to enable the State educational agency and the
Secretary to perform their duties under each such program; and
``(B) maintain such records, provide such information, and
afford such access to the records as the State educational
agency (after consultation with the Governor) or the Secretary
may reasonably require to carry out the State educational
agency's or the Secretary's duties; and
``(7) before the application was submitted, the applicant
afforded a reasonable opportunity for public comment on the
application and considered such comment.
``(b) GEPA Provision.--Section 442 of the General Education
Provisions Act shall not apply to programs under this Act.
``PART D--WAIVERS
``SEC. 9401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.
``(a) In General.--Except as provided in subsection (c), the
Secretary may waive any statutory or regulatory requirement of this Act
for a State educational agency, local educational agency, Indian tribe,
or school through a local educational agency, that--
``(1) receives funds under a program authorized by this Act;
and
``(2) requests a waiver under subsection (b).
``(b) Request for Waiver.--
``(1) In general.--A State educational agency, local
educational agency, or Indian tribe that desires a waiver shall
submit a waiver request to the Secretary that--
``(A) identifies the Federal programs affected by the
requested waiver;
``(B) describes which Federal statutory or regulatory
requirements are to be waived and how the waiving of those
requirements will--
``(i) increase the quality of instruction for students;
and
``(ii) improve the academic achievement of students;
``(C) describes, for each school year, specific, measurable
educational goals, in accordance with section 1111(b), for the
State educational agency and for each local educational agency,
Indian tribe, or school that would be affected by the waiver
and the methods to be used to measure annually /such progress
for meeting such goals and outcomes;
``(D) explains how the waiver will assist the State
educational agency and each affected local educational agency,
Indian tribe, or school in reaching those goals; and
``(E) describes how schools will continue to provide
assistance to the same populations served by programs for which
waivers are requested.
``(2) Additional information.--Such requests--
``(A) may provide for waivers of requirements applicable to
State educational agencies, local educational agencies, Indian
tribes, and schools; and
``(B) shall be developed and submitted--
``(i)(I) by local educational agencies (on behalf of
those agencies and schools) to State educational agencies;
and
``(II) by State educational agencies (on behalf of, and
based on the requests of, local educational agencies) to
the Secretary; or
``(ii) by Indian tribes (on behalf of schools operated
by the tribes) to the Secretary.
``(3) General requirements.--
``(A) State educational agencies.--In the case of a waiver
request submitted by a State educational agency acting on its
own behalf, the State educational agency shall--
``(i) provide all interested local educational agencies
in the State with notice and a reasonable opportunity to
comment on the request;
``(ii) submit the comments to the Secretary; and
``(iii) provide notice and information to the public
regarding the waiver request in the manner in which the
applying agency customarily provides similar notices and
information to the public.
``(B) Local educational agencies.--In the case of a waiver
request submitted by a local educational agency that receives
funds under this Act--
``(i) the request shall be reviewed by the State
educational agency and be accompanied by the comments, if
any, of the State educational agency; and
``(ii) notice and information regarding the waiver
request shall be provided to the public by the agency
requesting the waiver in the manner in which that agency
customarily provides similar notices and information to the
public.
``(c) Restrictions.--The Secretary shall not waive under this
section any statutory or regulatory requirements relating to--
``(1) the allocation or distribution of funds to States, local
educational agencies, or other recipients of funds under this Act;
``(2) maintenance of effort;
``(3) comparability of services;
``(4) use of Federal funds to supplement, not supplant, non-
Federal funds;
``(5) equitable participation of private school students and
teachers;
``(6) parental participation and involvement;
``(7) applicable civil rights requirements;
``(8) the requirement for a charter school under subpart 1 of
part B of title V;
``(9) the prohibitions regarding--
``(A) State aid in section 9522;
``(B) use of funds for religious worship or instruction in
section 9505; and
``(C) activities in section 9526; or
``(10) the selection of a school attendance area or school
under subsections (a) and (b) of section 1113, except that the
Secretary may grant a waiver to allow a school attendance area or
school to participate in activities under part A of title I if the
percentage of children from low-income families in the school
attendance area or who attend the school is not more than 10
percentage points below the lowest percentage of those children for
any school attendance area or school of the local educational
agency that meets the requirements of subsections (a) and (b) of
section 1113.
``(d) Duration and Extension of Waiver.--
``(1) In general.--Except as provided in paragraph (2), a
waiver approved by the Secretary under this section may be for a
period not to exceed 4 years.
``(2) Extension.--The Secretary may extend the period described
in paragraph (1) if the Secretary determines that--
``(A) the waiver has been effective in enabling the State
or affected recipient to carry out the activities for which the
waiver was requested and the waiver has contributed to improved
student achievement; and
`(B) the extension is in the public interest.
``(e) Reports.--
``(1) Local waiver.--A local educational agency that receives a
waiver under this section shall, at the end of the second year for
which a waiver is received under this section and each subsequent
year, submit a report to the State educational agency that--
``(A) describes the uses of the waiver by the agency or by
schools;
``(B) describes how schools continued to provide assistance
to the same populations served by the programs for which
waivers were granted; and
``(C) evaluates the progress of the agency and of schools
in improving the quality of instruction or the academic
achievement of students.
``(2) State waiver.--A State educational agency that receives
reports required under paragraph (1) shall annually submit a report
to the Secretary that is based on those reports and contains such
information as the Secretary may require.
``(3) Indian tribe waiver.--An Indian tribe that receives a
waiver under this section shall annually submit a report to the
Secretary that--
``(A) describes the uses of the waiver by schools operated
by the tribe; and
``(B) evaluates the progress of those schools in improving
the quality of instruction or the academic achievement of
students.
``(4) Report to congress.--Beginning in fiscal year 2002 and
for each subsequent year, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a report--
``(A) summarizing the uses of waivers by State educational
agencies, local educational agencies, Indian tribes, and
schools; and
``(B) describing whether the waivers--
``(i) increased the quality of instruction to students;
or
``(ii) improved the academic achievement of students.
``(f) Termination of Waivers.--The Secretary shall terminate a
waiver under this section if the Secretary determines, after notice and
an opportunity for a hearing, that the performance of the State or
other recipient affected by the waiver has been inadequate to justify a
continuation of the waiver or if the waiver is no longer necessary to
achieve its original purposes.
``(g) Publication.--A notice of the Secretary's decision to grant
each waiver under subsection (a) shall be published in the Federal
Register and the Secretary shall provide for the dissemination of the
notice to State educational agencies, interested parties, including
educators, parents, students, advocacy and civil rights organizations,
and the public.
``PART E--UNIFORM PROVISIONS
``Subpart 1--Private Schools
``SEC. 9501. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.
``(a) Private School Participation.--
``(1) In general.--Except as otherwise provided in this Act, to
the extent consistent with the number of eligible children in areas
served by a State educational agency, local educational agency,
educational service agency, consortium of those agencies, or
another entity receiving financial assistance under a program
specified in subsection (b), who are enrolled in private elementary
schools and secondary schools in areas served by such agency,
consortium, or entity, the agency, consortium, or entity shall,
after timely and meaningful consultation with appropriate private
school officials provide to those children and their teachers or
other educational personnel, on an equitable basis, special
educational services or other benefits that address their needs
under the program.
``(2) Secular, neutral, and nonideological services or
benefits.--Educational services or other benefits, including
materials and equipment, provided under this section, shall be
secular, neutral, and nonideological.
``(3) Special rule.--Educational services and other benefits
provided under this section for private school children, teachers,
and other educational personnel shall be equitable in comparison to
services and other benefits for public school children, teachers,
and other educational personnel participating in the program and
shall be provided in a timely manner.
``(4) Expenditures.--Expenditures for educational services and
other benefits provided under this section for eligible private
school children, their teachers, and other educational personnel
serving those children shall be equal, taking into account the
number and educational needs of the children to be served, to the
expenditures for participating public school children.
``(5) Provision of services.--An agency, consortium, or entity
described in subsection (a)(1) of this section may provide those
services directly or through contracts with public and private
agencies, organizations, and institutions.
``(b) Applicability.--
``(1) In general.--This section applies to programs under--
``(A) subparts 1 and 3 of part B of title I;
``(B) part C of title I;
``(C) part A of title II, to the extent provided in
paragraph (3);
``(D) part B of title II;
``(E) part D of title II;
``(F) part A of title III;
``(G) part A of title IV; and
``(H) part B of title IV.
``(2) Definition.--For the purpose of this section, the term
`eligible children' means children eligible for services under a
program described in paragraph (1).
``(3) Application.--(A) Except as provided in subparagraph (B),
this subpart, including subsection (a)(4), applies to funds awarded
to a local educational agency under part A of title II only to the
extent that the local educational agency uses funds under that part
to provide professional development to teachers and others.
``(B) Subject to subparagraph (A), the share of the local
educational agency's subgrant under part A of title II that is used
for professional development and subject to a determination of
equitable expenditures under subsection (a)(4) shall not be less
than the aggregate share of that agency's awards that were used for
professional development for fiscal year 2001 under section
2203(1)(B) (as such section was in effect on the day preceding the
date of enactment of the No Child Left Behind Act of 2001) and
section 306 of the Department of Education Appropriations Act,
2001.
``(c) Consultation.--
``(1) In general.--To ensure timely and meaningful
consultation, a State educational agency, local educational agency,
educational service agency, consortium of those agencies, or entity
shall consult with appropriate private school officials during the
design and development of the programs under this Act, on issues
such as--
``(A) how the children's needs will be identified;
``(B) what services will be offered;
``(C) how, where, and by whom the services will be
provided;
``(D) how the services will be assessed and how the results
of the assessment will be used to improve those services;
``(E) the size and scope of the equitable services to be
provided to the eligible private school children, teachers, and
other educational personnel and the amount of funds available
for those services; and
``(F) how and when the agency, consortium, or entity will
make decisions about the delivery of services, including a
thorough consideration and analysis of the views of the private
school officials on the provision of contract services through
potential third-party providers.
``(2) Disagreement.--If the agency, consortium, or entity
disagrees with the views of the private school officials on the
provision of services through a contract, the agency, consortium,
or entity shall provide to the private school officials a written
explanation of the reasons why the local educational agency has
chosen not to use a contractor.
``(3) Timing.--The consultation required by paragraph (1) shall
occur before the agency, consortium, or entity makes any decision
that affects the opportunities of eligible private school children,
teachers, and other educational personnel to participate in
programs under this Act, and shall continue throughout the
implementation and assessment of activities under this section.
``(4) Discussion required.--The consultation required by
paragraph (1) shall include a discussion of service delivery
mechanisms that the agency, consortium, or entity could use to
provide equitable services to eligible private school children,
teachers, administrators, and other staff.
``(d) Public Control of Funds.--
``(1) In general.--The control of funds used to provide
services under this section, and title to materials, equipment, and
property purchased with those funds, shall be in a public agency
for the uses and purposes provided in this Act, and a public agency
shall administer the funds and property.
``(2) Provision of services.--
``(A) In general.--The provision of services under this
section shall be provided--
``(i) by employees of a public agency; or
``(ii) through contract by the public agency with an
individual, association, agency, organization, or other
entity.
``(B) Independence; public agency.--In the provision of
those services, the employee, person, association, agency,
organization, or other entity shall be independent of the
private school and of any religious organization, and the
employment or contract shall be under the control and
supervision of the public agency.
``(C) Commingling of funds prohibited.--Funds used to
provide services under this section shall not be commingled
with non-Federal funds.
``SEC. 9502. STANDARDS FOR BY-PASS.
``(a) In General.--If, by reason of any provision of law, a State
educational agency, local educational agency, educational service
agency, consortium of those agencies, or other entity is prohibited
from providing for the participation in programs of children enrolled
in, or teachers or other educational personnel from, private elementary
schools and secondary schools, on an equitable basis, or if the
Secretary determines that the agency, consortium, or entity has
substantially failed or is unwilling to provide for that participation,
as required by section 9501, the Secretary shall--
``(1) waive the requirements of that section for the agency,
consortium, or entity; and
``(2) arrange for the provision of equitable services to those
children, teachers, or other educational personnel through
arrangements that shall be subject to the requirements of this
section and of sections 9501, 9503, and 9504.
``(b) Determination.--In making the determination under subsection
(a), the Secretary shall consider one or more factors, including the
quality, size, scope, and location of the program, and the opportunity
of private school children, teachers, and other educational personnel
to participate in the program.
``SEC. 9503. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL
CHILDREN.
``(a) Procedures for Complaints.--The Secretary shall develop and
implement written procedures for receiving, investigating, and
resolving complaints from parents, teachers, or other individuals and
organizations concerning violations of section 9501 by a State
educational agency, local educational agency, educational service
agency, consortium of those agencies, or entity. The individual or
organization shall submit the complaint to the State educational agency
for a written resolution by the State educational agency within a
reasonable period of time.
``(b) Appeals to Secretary.--The resolution may be appealed by an
interested party to the Secretary not later than 30 days after the
State educational agency resolves the complaint or fails to resolve the
complaint within a reasonable period of time. The appeal shall be
accompanied by a copy of the State educational agency's resolution, and
a complete statement of the reasons supporting the appeal. The
Secretary shall investigate and resolve the appeal not later than 120
days after receipt of the appeal.
``SEC. 9504. BY-PASS DETERMINATION PROCESS.
``(a) Review.--
``(1) In general.--
``(A) Written objections.--The Secretary shall not take any
final action under section 9502 until the State educational
agency, local educational agency, educational service agency,
consortium of those agencies, or entity affected by the action
has had an opportunity, for not less than 45 days after
receiving written notice thereof, to submit written objections
and to appear before the Secretary to show cause why that
action should not be taken.
``(B) Prior to reduction.--Pending final resolution of any
investigation or complaint that could result in a determination
under this section, the Secretary may withhold from the
allocation of the affected State educational agency or local
educational agency the amount estimated by the Secretary to be
necessary to pay the cost of those services.
``(2) Petition for review.--
``(A) Petition.--If the affected agency, consortium, or
entity is dissatisfied with the Secretary's final action after
a proceeding under paragraph (1), the agency, consortium, or
entity may, within 60 days after notice of that action, file
with the United States court of appeals for the circuit in
which the State is located a petition for review of that
action.
``(B) Transmission.--A copy of the petition shall be
forthwith transmitted by the clerk of the court to the
Secretary.
``(C) Filing.--The Secretary, upon receipt of the copy of
the petition, shall file in the court the record of the
proceedings on which the Secretary based the action, as
provided in section 2112 of title 28, United States Code.
``(3) Findings of fact.--
``(A) In general.--The findings of fact by the Secretary,
if supported by substantial evidence, shall be conclusive, but
the court, for good cause shown, may remand the case to the
Secretary to take further evidence and the Secretary may then
make new or modified findings of fact and may modify the
Secretary's previous action, and shall file in the court the
record of the further proceedings.
``(B) New or modified findings.--Any new or modified
findings of fact shall likewise be conclusive if supported by
substantial evidence.
``(4) Jurisdiction.--
``(A) In general.--Upon the filing of a petition, the court
shall have jurisdiction to affirm the action of the Secretary
or to set the action aside, in whole or in part.
``(B) Judgment.--The judgment of the court shall be subject
to review by the Supreme Court of the United States upon
certiorari or certification as provided in section 1254 of
title 28, United States Code.
``(b) Determination.--Any determination by the Secretary under this
section shall continue in effect until the Secretary determines, in
consultation with that agency, consortium, or entity and
representatives of the affected private school children, teachers, or
other educational personnel, that there will no longer be any failure
or inability on the part of the agency, consortium, or entity to meet
the applicable requirements of section 9501 or any other provision of
this Act.
``(c) Payment From State Allotment.--When the Secretary arranges
for services pursuant to this section, the Secretary shall, after
consultation with the appropriate public and private school officials,
pay the cost of those services, including the administrative costs of
arranging for those services, from the appropriate allocation or
allocations under this Act.
``(d) Prior Determination.--Any by-pass determination by the
Secretary under this Act as in effect on the day preceding the date of
enactment of the No Child Left Behind Act of 2001 shall remain in
effect to the extent the Secretary determines that that determination
is consistent with the purpose of this section.
``SEC. 9505. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR
INSTRUCTION.
``Nothing contained in this Act shall be construed to authorize the
making of any payment under this Act for religious worship or
instruction.
``SEC. 9506. PRIVATE, RELIGIOUS, AND HOME SCHOOLS.
``(a) Applicability to Nonrecipient Private Schools.--Nothing in
this Act shall be construed to affect any private school that does not
receive funds or services under this Act, nor shall any student who
attends a private school that does not receive funds or services under
this Act be required to participate in any assessment referenced in
this Act.
``(b) Applicability to Home Schools.--Nothing in this Act shall be
construed to affect a home school, whether or not a home school is
treated as a home school or a private school under State law, nor shall
any student schooled at home be required to participate in any
assessment referenced in this Act.
``(c) Rule of Construction on Prohibition of Federal Control Over
Nonpublic Schools.--Nothing in this Act shall be construed to permit,
allow, encourage, or authorize any Federal control over any aspect of
any private, religious, or home school, whether or not a home school is
treated as a private school or home school under State law. This
section shall not be construed to bar private, religious, or home
schools from participation in programs or services under this Act.
``(d) Rule of Construction on State and Local Educational Agency
Mandates.--Nothing in this Act shall be construed to require any State
educational agency or local educational agency that receives funds
under this Act to mandate, direct, or control the curriculum of a
private or home school, regardless or whether or not a home school is
treated as a private school under state law, nor shall any funds under
this Act be used for this purpose.
``Subpart 2--Other Provisions
``SEC. 9521. MAINTENANCE OF EFFORT.
``(a) In General.--A local educational agency may receive funds
under a covered program for any fiscal year only if the State
educational agency finds that either the combined fiscal effort per
student or the aggregate expenditures of the agency and the State with
respect to the provision of free public education by the agency for the
preceding fiscal year was not less than 90 percent of the combined
fiscal effort or aggregate expenditures for the second preceding fiscal
year.
``(b) Reduction in Case of Failure To Meet.--
``(1) In general.--The State educational agency shall reduce
the amount of the allocation of funds under a covered program in
any fiscal year in the exact proportion by which a local
educational agency fails to meet the requirement of subsection (a)
of this section by falling below 90 percent of both the combined
fiscal effort per student and aggregate expenditures (using the
measure most favorable to the local agency).
``(2) Special rule.--No such lesser amount shall be used for
computing the effort required under subsection (a) of this section
for subsequent years.
``(c) Waiver.--The Secretary may waive the requirements of this
section if the Secretary determines that a waiver would be equitable
due to--
``(1) exceptional or uncontrollable circumstances, such as a
natural disaster; or
``(2) a precipitous decline in the financial resources of the
local educational agency.
``SEC. 9522. PROHIBITION REGARDING STATE AID.
``A State shall not take into consideration payments under this Act
(other than under title VIII) in determining the eligibility of any
local educational agency in that State for State aid, or the amount of
State aid, with respect to free public education of children.
``SEC. 9523. PRIVACY OF ASSESSMENT RESULTS.
``Any results from an individual assessment referred to in this Act
of a student that become part of the education records of the student
shall have the protections provided in section 444 of the General
Education Provisions Act.
``SEC. 9524. SCHOOL PRAYER.
``(a) Guidance.--The Secretary shall provide and revise guidance,
not later than September 1, 2002, and of every second year thereafter,
to State educational agencies, local educational agencies, and the
public on constitutionally protected prayer in public elementary
schools and secondary schools, including making the guidance available
on the Internet. The guidance shall be reviewed, prior to distribution,
by the Office of Legal Counsel of the Department of Justice for
verification that the guidance represents the current state of the law
concerning constitutionally protected prayer in public elementary
schools and secondary schools.
``(b) Certification.--As a condition of receiving funds under this
Act, a local educational agency shall certify in writing to the State
educational agency involved that no policy of the local educational
agency prevents, or otherwise denies participation in, constitutionally
protected prayer in public elementary schools and secondary schools, as
detailed in the guidance required under subsection (a). The
certification shall be provided by October 1 of each year. The State
educational agency shall report to the Secretary by November 1 of each
year a list of those local educational agencies that have not filed the
certification or against which complaints have been made to the State
educational agency that the local educational agencies are not in
compliance with this section.
``(c) Enforcement.--The Secretary is authorized and directed to
effectuate subsection (b) by issuing, and securing compliance with,
rules or orders with respect to a local educational agency that fails
to certify, or is found to have certified in bad faith, that no policy
of the local educational agency prevents, or otherwise denies
participation in, constitutionally protected prayer in public
elementary schools and secondary schools.
``SEC. 9525. EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.
``(a) Short Title.--This section may be cited as the `Boy Scouts of
America Equal Access Act'.
``(b) In General.--
``(1) Equal access.--Notwithstanding any other provision of
law, no public elementary school, public secondary school, local
educational agency, or State educational agency that has a
designated open forum or a limited public forum and that receives
funds made available through the Department shall deny equal access
or a fair opportunity to meet to, or discriminate against, any
group officially affiliated with the Boy Scouts of America, or any
other youth group listed in title 36 of the United States Code (as
a patriotic society), that wishes to conduct a meeting within that
designated open forum or limited public forum, including denying
such access or opportunity or discriminating for reasons based on
the membership or leadership criteria or oath of allegiance to God
and country of the Boy Scouts of America or of the youth group
listed in title 36 of the United States Code (as a patriotic
society).
``(2) Voluntary sponsorship.--Nothing in this section shall be
construed to require any school, agency, or a school served by an
agency to sponsor any group officially affiliated with the Boy
Scouts of America, or any other youth group listed in title 36 of
the United States Code (as a patriotic society).
``(c) Termination of Assistance and Other Action.--
``(1) Departmental action.--The Secretary is authorized and
directed to effectuate subsection (b) by issuing and securing
compliance with rules or orders with respect to a public elementary
school, public secondary school, local educational agency, or State
educational agency that receives funds made available through the
Department and that denies equal access, or a fair opportunity to
meet, or discriminates, as described in subsection (b).
``(2) Procedure.--The Secretary shall issue and secure
compliance with the rules or orders, under paragraph (1), through
the Office for Civil Rights and in a manner consistent with the
procedure used by a Federal department or agency under section 602
of the Civil Rights Act of 1964. If the public school or agency
does not comply with the rules or orders, then notwithstanding any
other provision of law, no funds made available through the
Department shall be provided to a school that fails to comply with
such rules or orders or to any agency or school served by an agency
that fails to comply with such rules or orders.
``(3) Judicial review.--Any action taken by the Secretary under
paragraph (1) shall be subject to the judicial review described in
section 603 of the Civil Rights Act of 1964. Any person aggrieved
by the action may obtain that judicial review in the manner, and to
the extent, provided in section 603 of such Act.
``(d) Definition and Rule.--
``(1) Definition.--In this section, the term `youth group'
means any group or organization intended to serve young people
under the age of 21.
``(2) Rule.--For the purpose of this section, an elementary
school or secondary school has a limited public forum whenever the
school involved grants an offering to, or opportunity for, one or
more outside youth or community groups to meet on school premises
or in school facilities before or after the hours during which
attendance at the school is compulsory.
``SEC. 9526. GENERAL PROHIBITIONS.
``(a) Prohibition.--None of the funds authorized under this Act
shall be used--
``(1) to develop or distribute materials, or operate programs
or courses of instruction directed at youth, that are designed to
promote or encourage sexual activity, whether homosexual or
heterosexual;
``(2) to distribute or to aid in the distribution by any
organization of legally obscene materials to minors on school
grounds;
``(3) to provide sex education or HIV-prevention education in
schools unless that instruction is age appropriate and includes the
health benefits of abstinence; or
``(4) to operate a program of contraceptive distribution in
schools.
``(b) Local Control.--Nothing in this section shall be construed
to--
``(1) authorize an officer or employee of the Federal
Government to mandate, direct, review, or control a State, local
educational agency, or school's instructional content, curriculum,
and related activities;
``(2) limit the application of the General Education Provisions
Act;
``(3) require the distribution of scientifically or medically
false or inaccurate materials or to prohibit the distribution of
scientifically or medically true or accurate materials; or
``(4) create any legally enforceable right.
``SEC. 9527. PROHIBITIONS ON FEDERAL GOVERNMENT AND USE OF FEDERAL
FUNDS.
``(a) General Prohibition.--Nothing in this Act shall be construed
to authorize an officer or employee of the Federal Government to
mandate, direct, or control a State, local educational agency, or
school's curriculum, program of instruction, or allocation of State or
local resources, or mandate a State or any subdivision thereof to spend
any funds or incur any costs not paid for under this Act.
``(b) Prohibition on Endorsement of Curriculum.--Notwithstanding
any other prohibition of Federal law, no funds provided to the
Department under this Act may be used by the Department to endorse,
approve, or sanction any curriculum designed to be used in an
elementary school or secondary school.
``(c) Prohibition on Requiring Federal Approval or Certification of
Standards.--
``(1) In general.--Notwithstanding any other provision of
Federal law, no State shall be required to have academic content or
student academic achievement standards approved or certified by the
Federal Government, in order to receive assistance under this Act.
``(2) Rule of construction.--Nothing in this subsection shall
be construed to affect requirements under title I or part A of
title VI.
``(d) Rule of Construction on Building Standards.--Nothing in this
Act shall be construed to mandate national school building standards
for a State, local educational agency, or school.
``SEC. 9528. ARMED FORCES RECRUITER ACCESS TO STUDENTS AND STUDENT
RECRUITING INFORMATION.
``(a) Policy.--
``(1) Access to student recruiting information.--
Notwithstanding section 444(a)(5)(B) of the General Education
Provisions Act and except as provided in paragraph (2), each local
educational agency receiving assistance under this Act shall
provide, on a request made by military recruiters or an institution
of higher education, access to secondary school students names,
addresses, and telephone listings.
``(2) Consent.--A secondary school student or the parent of the
student may request that the student's name, address, and telephone
listing described in paragraph (1) not be released without prior
written parental consent, and the local educational agency or
private school shall notify parents of the option to make a request
and shall comply with any request.
``(3) Same access to students.--Each local educational agency
receiving assistance under this Act shall provide military
recruiters the same access to secondary school students as is
provided generally to post secondary educational institutions or to
prospective employers of those students.
``(b) Notification.--The Secretary, in consultation with the
Secretary of Defense, shall, not later than 120 days after the date of
enactment of the No Child Left Behind Act of 2001, notify principals,
school administrators, and other educators about the requirements of
this section.
``(c) Exception.--The requirements of this section do not apply to
a private secondary school that maintains a religious objection to
service in the Armed Forces if the objection is verifiable through the
corporate or other organizational documents or materials of that
school.
``(d) Special Rule.--A local educational agency prohibited by
Connecticut State law (either explicitly by statute or through
statutory interpretation by the State Supreme Court or State Attorney
General) from providing military recruiters with information or access
as required by this section shall have until May 31, 2002, to comply
with that requirement.
``SEC. 9529. PROHIBITION ON FEDERALLY SPONSORED TESTING.
``(a) General Prohibition.--Notwithstanding any other provision of
Federal law and except as provided in subsection (b), no funds provided
under this Act to the Secretary or to the recipient of any award may be
used to develop, pilot test, field test, implement, administer, or
distribute any federally sponsored national test in reading,
mathematics, or any other subject, unless specifically and explicitly
authorized by law.
``(b) Exceptions.--Subsection (a) shall not apply to international
comparative assessments developed under the authority of section
404(a)(6) of the National Education Statistics Act of 1994 and
administered to only a representative sample of pupils in the United
States and in foreign nations.
``SEC. 9530. LIMITATIONS ON NATIONAL TESTING OR CERTIFICATION FOR
TEACHERS.
``(a) Mandatory National Testing or Certification of Teachers.--
Notwithstanding any other provision of this Act or any other provision
of law, no funds available to the Department or otherwise available
under this Act may be used for any purpose relating to a mandatory
nationwide test or certification of teachers or education
paraprofessionals, including any planning, development, implementation,
or administration of such test or certification.
``(b) Prohibition on Withholding Funds.--The Secretary is
prohibited from withholding funds from any State educational agency or
local educational agency if the State educational agency or local
educational agency fails to adopt a specific method of teacher or
paraprofessional certification.
``SEC. 9531. PROHIBITION ON NATIONWIDE DATABASE.
``Nothing in this Act (other than section 1308(b)) shall be
construed to authorize the development of a nationwide database of
personally identifiable information on individuals involved in studies
or other collections of data under this Act.
``SEC. 9532. UNSAFE SCHOOL CHOICE OPTION.
``(a) Unsafe School Choice Policy.--Each State receiving funds
under this Act shall establish and implement a statewide policy
requiring that a student attending a persistently dangerous public
elementary school or secondary school, as determined by the State in
consultation with a representative sample of local educational
agencies, or who becomes a victim of a violent criminal offense, as
determined by State law, while in or on the grounds of a public
elementary school or secondary school that the student attends, be
allowed to attend a safe public elementary school or secondary school
within the local educational agency, including a public charter school.
``(b) Certification.--As a condition of receiving funds under this
Act, a State shall certify in writing to the Secretary that the State
is in compliance with this section.
``SEC. 9533. PROHIBITION ON DISCRIMINATION.
``Nothing in this Act shall be construed to require, authorize, or
permit, the Secretary, or a State educational agency, local educational
agency, or school to grant to a student, or deny or impose upon a
student, any financial or educational benefit or burden, in violation
of the fifth or 14th amendments to the Constitution or other law
relating to discrimination in the provision of federally funded
programs or activities.
``SEC. 9534. CIVIL RIGHTS.
``(a) In General.--Nothing in this Act shall be construed to permit
discrimination on the basis of race, color, religion, sex (except as
otherwise permitted under title IX of the Education Amendments of
1972), national origin, or disability in any program funded under this
Act.
``(b) Rule of Construction.--Nothing in this Act shall be construed
to require the disruption of services to a child or the displacement of
a child enrolled in or participating in a program administered by an
eligible entity, as defined in section 1116 of title I and part B of
title V, at the commencement of the entity's participation in a grant
under section 1116 of title I or part B of title V.
``SEC. 9535. RULEMAKING.
``The Secretary shall issue regulations under this Act only to the
extent that such regulations are necessary to ensure that there is
compliance with the specific requirements and assurances required by
this Act.
``SEC. 9536. SEVERABILITY.
``If any provision of this Act is held invalid, the remainder of
this Act shall be unaffected thereby.
``PART F--EVALUATIONS
``SEC. 9601. EVALUATIONS.
``(a) Reservation of Funds.--Except as provided in subsections (b)
and (c), the Secretary may reserve not more than 0.5 percent of the
amount appropriated to carry out each categorical program and
demonstration project authorized under this Act--
``(1) to conduct--
``(A) comprehensive evaluations of the program or project;
and
``(B) studies of the effectiveness of the program or
project and its administrative impact on schools and local
educational agencies;
``(2) to evaluate the aggregate short- and long-term effects
and cost efficiencies across Federal programs assisted or
authorized under this Act and related Federal preschool,
elementary, and secondary programs under any other Federal law; and
``(3) to increase the usefulness of evaluations of grant
recipients in order to ensure the continuous progress of the
program or project by improving the quality, timeliness,
efficiency, and use of information relating to performance under
the program or project.
``(b) Titles I and III Excluded.--The Secretary may not reserve
under subsection (a) funds appropriated to carry out any program
authorized under title I or title III.
``(c) Evaluation Activities Authorized Elsewhere.--If, under any
other provision of this Act (other than title I), funds are authorized
to be reserved or used for evaluation activities with respect to a
program or project, the Secretary may not reserve additional funds
under this section for the evaluation of that program or project.''.
TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES
PART A--REPEALS
SEC. 1011. REPEALS.
The following provisions of law are repealed:
(1) Part G of title XV of the Higher Education Amendments of
1992 (20 U.S.C. 1070a-11 note), relating to the Advanced Placement
fee payment program.
(2) Part B of title VIII of the Higher Education Amendments of
1998 (20 U.S.C. 1070a-11 note), relating to the Advanced Placement
incentive program.
(3) Part F of the General Education Provisions Act (20 U.S.C.
1235 et seq.), relating to Ready to Learn Television.
(4) The following provisions of the Goals 2000: Educate America
Act (20 U.S.C. 5801 et seq.):
(A) Parts A and C of title II (20 U.S.C. 5821 et seq.,
5871), relating to the National Education Goals Panel.
(B) Title VI (20 U.S.C. 5951), relating to the
International Education Program.
(5) The following provisions of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.):
(A) Titles X through XII (20 U.S.C. 8001 et seq.).
(B) Sections 13001 and 13002 (20 U.S.C. 8601, 8602).
(C) Title XIV (20 U.S.C. 8801 et seq.).
(6) The Troops-to-Teachers Program Act of 1999 (20 U.S.C. 9301
et seq.).
SEC. 1012. CONFORMING CLERICAL AND TECHNICAL AMENDMENTS.
The table of contents in section 1(b) of the Goals 2000: Educate
America Act (20 U.S.C. 5801 note) is amended by striking the items
relating to the following provisions:
(1) Parts A and C of title II (including the items relating to
sections within those parts).
(2) Sections 231, 232, 234, and 235.
(3) Titles III through VI (including the items relating to
sections within those titles).
PART B--REDESIGNATIONS
SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.
(a) In General.--Part A of title XIII of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8621 et seq.) is transferred
to and redesignated as part K of the Educational Research, Development,
Dissemination, and Improvement Act of 1994.
(b) Sections.--Sections 13101 through 13105 of such part are
redesignated as sections 1001 through 1005, respectively.
(c) Defined Terms.--Part K of the Educational Research,
Development, Dissemination, and Improvement Act of 1994 (as transferred
and redesignated by this section) is amended by adding at the end the
following new section:
``SEC. 1006. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1022. NATIONAL DIFFUSION NETWORK.
(a) In General.--Part B of title XIII of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8651 et seq.) is transferred
to and redesignated as part L of the Educational Research, Development,
Dissemination, and Improvement Act of 1994.
(b) Sections.--Sections 13201 and 13102 of such part are
redesignated as sections 1011 and 1012, respectively.
(c) Defined Terms.--Part L of the Educational Research,
Development, Dissemination, and Improvement Act of 1994 (as transferred
and redesignated by this section) is amended by adding at the end the
following new section:
``SEC. 1013. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1023. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION
CONSORTIA.
(a) In General.--Part C of title XIII of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8671 et seq.) is transferred
to and redesignated as part M of the Educational Research, Development,
Dissemination, and Improvement Act of 1994.
(b) Sections.--Sections 13301 through 13108 of such part are
redesignated as sections 1021 through 1028, respectively.
(c) Defined Terms.--Part M of the Educational Research,
Development, Dissemination, and Improvement Act of 1994 (as transferred
and redesignated by this section) is amended by adding at the end the
following new section:
``SEC. 1029. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1024. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.
(a) In General.--Part D of title XIII of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8701) is transferred to and
redesignated as part N of the Educational Research, Development,
Dissemination, and Improvement Act of 1994.
(b) Sections.--Section 13401 of such part is redesignated as
section 1031.
(c) Defined Terms.--Part N of the Educational Research,
Development, Dissemination, and Improvement Act of 1994 (as transferred
and redesignated by this section) is amended by adding at the end the
following new section:
``SEC. 1032. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1025. CONFORMING AMENDMENTS.
(a) Parts K Through M.--Parts K through M of the Educational
Research, Development, Dissemination, and Improvement Act of 1994 (as
transferred and redesignated by sections 1021 through 1024 of this Act)
are amended as follows:
(1) Insert ``of such Act'' in--
(A) section 1002(a)(1)(A), after ``title I''; and
(B) section 1002(a)(1)(B), after ``section 1114''.
(2) Insert ``of the Elementary and Secondary Education Act of
1965 (as such Act was in effect on the day before the date of
enactment of the No Child Left Behind Act of 2001)'' in--
(A) sections 1001(a)(2)(A) and 1011(e)(1), after ``title
I'';
(B) sections 1002(b)(1) and section 1011(g)(3)(A), after
``section 1114''; and
(C) in section 1011(e)(3), after ``title III''.
(3) In section 1011(a)(1), strike ``(hereafter referred to in
this Act as `NDN')''.
(4) In subsections (c) and (g)(1) of section 1011 and in
section 1027(1)(E), strike ``of the Educational Research,
Development, Dissemination, and Improvement Act of 1994''.
(5) In subsections (a)(2)(A) and (d) of section 1011, strike
``part A'' and insert ``part K''.
(6) In sections 1002(a)(4) and 1011(e)(3), strike ``part C''
and insert ``part M''.
(7) In section 1002(a), strike ``section 13101(a)'' and insert
``section 1001(a)''.
(8) In section 1003(b)(1), strike ``section 13102'' and insert
``section 1002''.
(9) In section 1004(b)(1), strike ``section 13105'' and insert
``section 1005''.
(10) In sections 1002(a)(7) and 1003(b)(2), strike ``section
13201'' and insert ``section 1011''.
(11) In section 1022(2) and (3), strike ``section 13301(a)(1)''
and insert ``section 1021(a)(1)''.
(12) In section 1027(4), strike ``section 13301'' and insert
``section 1021''.
(13) In subsections (a) and (b) of section 1025, strike
``section 13303'' and insert ``section 1023''.
(14) In the text preceding paragraph (1) of section 1022,
strike ``section 13304'' and insert ``section 1024''.
(15) In section 1021(a)(3), strike ``section 13308'' and insert
``section 1028''.
(16) In sections 1003(b)(2) and 1011(f)(4), strike ``section
13401'' and insert ``section 1031''.
(17) Strike ``this Act'' and insert ``the Elementary and
Secondary Education Act of 1965 (as such Act was in effect on the
day before the date of enactment of the No Child Left Behind Act of
2001)'' in--
(A) section 1001(a)(1) (the first occurrence only);
(B) paragraphs (1) through (3) of section 1001(c);
(C) paragraphs (1), (2), (6), and (8) of section 1002(a);
(D) section 1011(e); and
(E) section 1031(2).
(18) In paragraphs (1) and (2) of section 1004(b), strike
``this Act'' and insert ``the Elementary and Secondary Education
Act of 1965''.
(19) In section 1001(a)(1) (the second occurrence only) and in
section 1002(a)(1)(C), strike ``this Act'' and insert ``such Act''.
(20) Section 1011 is amended--
(A) in subsection (a)(1), by striking ``In order to
implement the purposes of this title, the'' and inserting
``The''; and
(B) in subsection (f)(5), by striking ``to achieve the
purposes of this title''.
(21) In section 1022(1), strike ``, the Eisenhower National
Clearinghouse for Science and Mathematics Education established
under section 2102(b)''.
(22) In section 1026(a), strike ``section 14701'' and insert
``section 9601''.
(b) Title XIII Heading.--The Elementary and Secondary Education Act
of 1965 is amended by striking the heading of title XIII.
PART C--HOMELESS EDUCATION
SEC. 1031. SHORT TITLE.
This part may be cited as the ``McKinney-Vento Homeless Education
Assistance Improvements Act of 2001''.
SEC. 1032. EDUCATION FOR HOMELESS CHILDREN AND YOUTHS.
Subtitle B of title VII of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11431 et seq.) is amended to read as follows:
``Subtitle B--Education for Homeless Children and Youths
``SEC. 721. STATEMENT OF POLICY.
``The following is the policy of the Congress:
``(1) Each State educational agency shall ensure that each
child of a homeless individual and each homeless youth has equal
access to the same free, appropriate public education, including a
public preschool education, as provided to other children and
youths.
``(2) In any State that has a compulsory residency requirement
as a component of the State's compulsory school attendance laws or
other laws, regulations, practices, or policies that may act as a
barrier to the enrollment, attendance, or success in school of
homeless children and youths, the State will review and undertake
steps to revise such laws, regulations, practices, or policies to
ensure that homeless children and youths are afforded the same
free, appropriate public education as provided to other children
and youths.
``(3) Homelessness alone is not sufficient reason to separate
students from the mainstream school environment.
``(4) Homeless children and youths should have access to the
education and other services that such children and youths need to
ensure that such children and youths have an opportunity to meet
the same challenging State student academic achievement standards
to which all students are held.
``SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE EDUCATION OF
HOMELESS CHILDREN AND YOUTHS.
``(a) General Authority.--The Secretary is authorized to make
grants to States in accordance with the provisions of this section to
enable such States to carry out the activities described in subsections
(d) through (g).
``(b) Application.--No State may receive a grant under this section
unless the State educational agency submits an application to the
Secretary at such time, in such manner, and containing or accompanied
by such information as the Secretary may reasonably require.
``(c) Allocation and Reservations.--
``(1) Allocation.--(A) Subject to subparagraph (B), the
Secretary is authorized to allot to each State an amount that bears
the same ratio to the amount appropriated for such year under
section 726 that remains after the Secretary reserves funds under
paragraph (2) and uses funds to carry out section 724(d) and (h),
as the amount allocated under section 1122 of the Elementary and
Secondary Education Act of 1965 to the State for that year bears to
the total amount allocated under section 1122 of such Act to all
States for that year, except that no State shall receive less than
the greater of--
``(i) $150,000;
``(ii) 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, as determined
under the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450 et seq.), that are consistent with the purposes of
the programs described in this subtitle.
``(ii) The Secretary and the Secretary of the Interior shall
enter into an agreement, consistent with the requirements of this
subtitle, for the distribution and use of the funds described in
clause (i) under terms that the Secretary determines best meet the
purposes of the programs described in this subtitle. Such agreement
shall set forth the plans of the Secretary of the Interior for the
use of the amounts transferred, including appropriate goals,
objectives, and milestones.
``(3) State defined.--For purposes of this subsection, the term
`State' does not include the United States Virgin Islands, Guam,
American Samoa, or the Commonwealth of the Northern Mariana
Islands.
``(d) Activities.--Grants under this section shall be used for the
following:
``(1) To carry out the policies set forth in section 721 in the
State.
``(2) To provide activities for, and services to, homeless
children, including preschool-aged homeless children, and youths
that enable such children and youths to enroll in, attend, and
succeed in school, or, if appropriate, in preschool programs.
``(3) To establish or designate an Office of Coordinator for
Education of Homeless Children and Youths in the State educational
agency in accordance with subsection (f).
``(4) To prepare and carry out the State plan described in
subsection (g).
``(5) To develop and implement professional development
programs for school personnel to heighten their awareness of, and
capacity to respond to, specific problems in the education of
homeless children and youths.
``(e) State and Local Subgrants.--
``(1) Minimum disbursements by states.--From the sums made
available each year to carry out this subtitle, the State
educational agency shall distribute not less than 75 percent in
subgrants to local educational agencies for the purposes of
carrying out section 723, except that States funded at the minimum
level set forth in subsection (c)(1) shall distribute not less than
50 percent in subgrants to local educational agencies for the
purposes of carrying out section 723.
``(2) Use by state educational agency.--A State educational
agency may use funds made available for State use under this
subtitle to conduct activities under subsection (f) directly or
through grants or contracts.
``(3) Prohibition on segregating homeless students.--
``(A) In general.--Except as provided in subparagraph (B)
and section 723(a)(2)(B)(ii), in providing a free public
education to a homeless child or youth, no State receiving
funds under this subtitle shall segregate such child or youth
in a separate school, or in a separate program within a school,
based on such child's or youth's status as homeless.
``(B) Exception.--Notwithstanding subparagraph (A),
paragraphs (1)(J)(i) and (3) of subsection (g), section
723(a)(2), and any other provision of this subtitle relating to
the placement of homeless children or youths in schools, a
State that has a separate school for homeless children or
youths that was operated in fiscal year 2000 in a covered
county shall be eligible to receive funds under this subtitle
for programs carried out in such school if--
``(i) the school meets the requirements of subparagraph
(C);
``(ii) any local educational agency serving a school
that the homeless children and youths enrolled in the
separate school are eligible to attend meets the
requirements of subparagraph (E); and
``(iii) the State is otherwise eligible to receive
funds under this subtitle.
``(C) School requirements.--For the State to be eligible
under subparagraph (B) to receive funds under this subtitle,
the school described in such subparagraph shall--
``(i) provide written notice, at the time any child or
youth seeks enrollment in such school, and at least twice
annually while the child or youth is enrolled in such
school, to the parent or guardian of the child or youth
(or, in the case of an unaccompanied youth, the youth)
that--
``(I) shall be signed by the parent or guardian
(or, in the case of an unaccompanied youth, the youth);
``(II) sets forth the general rights provided under
this subtitle;
``(III) specifically states--
``(aa) the choice of schools homeless children
and youths are eligible to attend, as provided in
subsection (g)(3)(A);
``(bb) that no homeless child or youth is
required to attend a separate school for homeless
children or youths;
``(cc) that homeless children and youths shall
be provided comparable services described in
subsection (g)(4), including transportation
services, educational services, and meals through
school meals programs; and
``(dd) that homeless children and youths should
not be stigmatized by school personnel; and
``(IV) provides contact information for the local
liaison for homeless children and youths and the State
Coordinator for Education of Homeless Children and
Youths;
``(ii)(I) provide assistance to the parent or guardian
of each homeless child or youth (or, in the case of an
unaccompanied youth, the youth) to exercise the right to
attend the parent's or guardian's (or youth's) choice of
schools, as provided in subsection (g)(3)(A); and
``(II) coordinate with the local educational agency
with jurisdiction for the school selected by the parent or
guardian (or youth), to provide transportation and other
necessary services;
``(iii) ensure that the parent or guardian (or, in the
case of an unaccompanied youth, the youth) shall receive
the information required by this subparagraph in a manner
and form understandable to such parent or guardian (or
youth), including, if necessary and to the extent feasible,
in the native language of such parent or guardian (or
youth); and
``(iv) demonstrate in the school's application for
funds under this subtitle that such school--
``(I) is complying with clauses (i) and (ii); and
``(II) is meeting (as of the date of submission of
the application) the same Federal and State standards,
regulations, and mandates as other public schools in
the State (such as complying with sections 1111 and
1116 of the Elementary and Secondary Education Act of
1965 and providing a full range of education and
related services, including services applicable to
students with disabilities).
``(D) School ineligibility.--A separate school described in
subparagraph (B) that fails to meet the standards, regulations,
and mandates described in subparagraph (C)(iv)(II) shall not be
eligible to receive funds under this subtitle for programs
carried out in such school after the first date of such
failure.
``(E) Local educational agency requirements.--For the State
to be eligible to receive the funds described in subparagraph
(B), the local educational agency described in subparagraph
(B)(ii) shall--
``(i) implement a coordinated system for ensuring that
homeless children and youths--
``(I) are advised of the choice of schools provided
in subsection (g)(3)(A);
``(II) are immediately enrolled, in accordance with
subsection (g)(3)(C), in the school selected under
subsection (g)(3)(A); and
``(III) are promptly provided necessary services
described in subsection (g)(4), including
transportation, to allow homeless children and youths
to exercise their choices of schools under subsection
(g)(3)(A);
``(ii) document that written notice has been provided--
``(I) in accordance with subparagraph (C)(i) for
each child or youth enrolled in a separate school under
subparagraph (B); and
``(II) in accordance with subsection (g)(6)(A)(v);
``(iii) prohibit schools within the agency's
jurisdiction from referring homeless children or youths to,
or requiring homeless children and youths to enroll in or
attend, a separate school described in subparagraph (B);
``(iv) identify and remove any barriers that exist in
schools within the agency's jurisdiction that may have
contributed to the creation or existence of separate
schools described in subparagraph (B); and
``(v) not use funds received under this subtitle to
establish--
``(I) new or additional separate schools for
homeless children or youths; or
``(II) new or additional sites for separate schools
for homeless children or youths, other than the sites
occupied by the schools described in subparagraph (B)
in fiscal year 2000.
``(F) Report.--
``(i) Preparation.--The Secretary shall prepare a
report on the separate schools and local educational
agencies described in subparagraph (B) that receive funds
under this subtitle in accordance with this paragraph. The
report shall contain, at a minimum, information on--
``(I) compliance with all requirements of this
paragraph;
``(II) barriers to school access in the school
districts served by the local educational agencies; and
``(III) the progress the separate schools are
making in integrating homeless children and youths into
the mainstream school environment, including the
average length of student enrollment in such schools.
``(ii) Compliance with information requests.--For
purposes of enabling the Secretary to prepare the report,
the separate schools and local educational agencies shall
cooperate with the Secretary and the State Coordinator for
Education of Homeless Children and Youths established in
the State under subsection (d)(3), and shall comply with
any requests for information by the Secretary and State
Coordinator for such State.
``(iii) Submission.--Not later than 2 years after the
date of enactment of the McKinney-Vento Homeless Education
Assistance Improvements Act of 2001, the Secretary shall
submit the report described in clause (i) to--
``(I) the President;
``(II) the Committee on Education and the Workforce
of the House of Representatives; and
``(III) the Committee on Health, Education, Labor,
and Pensions of the Senate.
``(G) Definition.--For purposes of this paragraph, the term
`covered county' means--
``(i) San Joaquin County, California;
``(ii) Orange County, California;
``(iii) San Diego County, California; and
``(iv) Maricopa County, Arizona.
``(f) Functions of the Office of Coordinator.--The Coordinator for
Education of Homeless Children and Youths established in each State
shall--
``(1) gather reliable, valid, and comprehensive information on
the nature and extent of the problems homeless children and youths
have in gaining access to public preschool programs and to public
elementary schools and secondary schools, the difficulties in
identifying the special needs of such children and youths, any
progress made by the State educational agency and local educational
agencies in the State in addressing such problems and difficulties,
and the success of the programs under this subtitle in allowing
homeless children and youths to enroll in, attend, and succeed in,
school;
``(2) develop and carry out the State plan described in
subsection (g);
``(3) collect and transmit to the Secretary, at such time and
in such manner as the Secretary may require, a report containing
such information as the Secretary determines is necessary to assess
the educational needs of homeless children and youths within the
State;
``(4) facilitate coordination between the State educational
agency, the State social services agency, and other agencies
(including agencies providing mental health services) to provide
services to homeless children, including preschool-aged homeless
children, and youths, and to families of such children and youths;
``(5) in order to improve the provision of comprehensive
education and related services to homeless children and youths and
their families, coordinate and collaborate with--
``(A) educators, including child development and preschool
program personnel;
``(B) providers of services to homeless and runaway
children and youths and homeless families (including domestic
violence agencies, shelter operators, transitional housing
facilities, runaway and homeless youth centers, and
transitional living programs for homeless youths);
``(C) local educational agency liaisons designated under
subsection (g)(1)(J)(ii) for homeless children and youths; and
``(D) community organizations and groups representing
homeless children and youths and their families; and
``(6) provide technical assistance to local educational
agencies in coordination with local educational agency liaisons
designated under subsection (g)(1)(J)(ii), to ensure that local
educational agencies comply with the requirements of section
722(e)(3) and paragraphs (3) through (7) of subsection (g).
``(g) State Plan.--
``(1) In general.--Each State shall submit to the Secretary a
plan to provide for the education of homeless children and youths
within the State. Such plan shall include the following:
``(A) A description of how such children and youths are (or
will be) given the opportunity to meet the same challenging
State academic achievement standards all students are expected
to meet.
``(B) A description of the procedures the State educational
agency will use to identify such children and youths in the
State and to assess their special needs.
``(C) A description of procedures for the prompt resolution
of disputes regarding the educational placement of homeless
children and youths.
``(D) A description of programs for school personnel
(including principals, attendance officers, teachers,
enrollment personnel, and pupil services personnel) to heighten
the awareness of such personnel of the specific needs of
runaway and homeless youths.
``(E) A description of procedures that ensure that homeless
children and youths who meet the relevant eligibility criteria
are able to participate in Federal, State, or local food
programs.
``(F) A description of procedures that ensure that--
``(i) homeless children have equal access to the same
public preschool programs, administered by the State
agency, as provided to other children in the State;
``(ii) homeless youths and youths separated from the
public schools are identified and accorded equal access to
appropriate secondary education and support services; and
``(iii) homeless children and youths who meet the
relevant eligibility criteria are able to participate in
Federal, State, or local before- and after-school care
programs.
``(G) Strategies to address problems identified in the
report provided to the Secretary under subsection (f)(3).
``(H) Strategies to address other problems with respect to
the education of homeless children and youths, including
problems resulting from enrollment delays that are caused by--
``(i) immunization and medical records requirements;
``(ii) residency requirements;
``(iii) lack of birth certificates, school records, or
other documentation;
``(iv) guardianship issues; or
``(v) uniform or dress code requirements.
``(I) A demonstration that the State educational agency and
local educational agencies in the State have developed, and
shall review and revise, policies to remove barriers to the
enrollment and retention of homeless children and youths in
schools in the State.
``(J) Assurances that--
``(i) the State educational agency and local
educational agencies in the State will adopt policies and
practices to ensure that homeless children and youths are
not stigmatized or segregated on the basis of their status
as homeless;
``(ii) local educational agencies will designate an
appropriate staff person, who may also be a coordinator for
other Federal programs, as a local educational agency
liaison for homeless children and youths, to carry out the
duties described in paragraph (6)(A); and
``(iii) the State and its local educational agencies
will adopt policies and practices to ensure that
transportation is provided, at the request of the parent or
guardian (or in the case of an unaccompanied youth, the
liaison), to and from the school of origin, as determined
in paragraph (3)(A), in accordance with the following, as
applicable:
``(I) If the homeless child or youth continues to
live in the area served by the local educational agency
in which the school of origin is located, the child's
or youth's transportation to and from the school of
origin shall be provided or arranged by the local
educational agency in which the school of origin is
located.
``(II) If the homeless child's or youth's living
arrangements in the area served by the local
educational agency of origin terminate and the child or
youth, though continuing his or her education in the
school of origin, begins living in an area served by
another local educational agency, the local educational
agency of origin and the local educational agency in
which the homeless child or youth is living shall agree
upon a method to apportion the responsibility and costs
for providing the child with transportation to and from
the school of origin. If the local educational agencies
are unable to agree upon such method, the
responsibility and costs for transportation shall be
shared equally.
``(2) Compliance.--
``(A) In general.--Each plan adopted under this subsection
shall also describe how the State will ensure that local
educational agencies in the State will comply with the
requirements of paragraphs (3) through (7).
``(B) Coordination.--Such plan shall indicate what
technical assistance the State will furnish to local
educational agencies and how compliance efforts will be
coordinated with the local educational agency liaisons
designated under paragraph (1)(J)(ii).
``(3) Local educational agency requirements.--
``(A) In general.--The local educational agency serving
each child or youth to be assisted under this subtitle shall,
according to the child's or youth's best interest--
``(i) continue the child's or youth's education in the
school of origin for the duration of homelessness--
``(I) in any case in which a family becomes
homeless between academic years or during an academic
year; or
``(II) for the remainder of the academic year, if
the child or youth becomes permanently housed during an
academic year; or
``(ii) enroll the child or youth in any public school
that nonhomeless students who live in the attendance area
in which the child or youth is actually living are eligible
to attend.
``(B) Best interest.--In determining the best interest of
the child or youth under subparagraph (A), the local
educational agency shall--
``(i) to the extent feasible, keep a homeless child or
youth in the school of origin, except when doing so is
contrary to the wishes of the child's or youth's parent or
guardian;
``(ii) provide a written explanation, including a
statement regarding the right to appeal under subparagraph
(E), to the homeless child's or youth's parent or guardian,
if the local educational agency sends such child or youth
to a school other than the school of origin or a school
requested by the parent or guardian; and
``(iii) in the case of an unaccompanied youth, ensure
that the homeless liaison designated under paragraph
(1)(J)(ii) assists in placement or enrollment decisions
under this subparagraph, considers the views of such
unaccompanied youth, and provides notice to such youth of
the right to appeal under subparagraph (E).
``(C) Enrollment.--(i) The school selected in accordance
with this paragraph shall immediately enroll the homeless child
or youth, even if the child or youth is unable to produce
records normally required for enrollment, such as previous
academic records, medical records, proof of residency, or other
documentation.
``(ii) The enrolling school shall immediately contact the
school last attended by the child or youth to obtain relevant
academic and other records.
``(iii) If the child or youth needs to obtain
immunizations, or immunization or medical records, the
enrolling school shall immediately refer the parent or guardian
of the child or youth to the local educational agency liaison
designated under paragraph (1)(J)(ii), who shall assist in
obtaining necessary immunizations, or immunization or medical
records, in accordance with subparagraph (D).
``(D) Records.--Any record ordinarily kept by the school,
including immunization or medical records, academic records,
birth certificates, guardianship records, and evaluations for
special services or programs, regarding each homeless child or
youth shall be maintained--
``(i) so that the records are available, in a timely
fashion, when a child or youth enters a new school or
school district; and
``(ii) in a manner consistent with section 444 of the
General Education Provisions Act (20 U.S.C. 1232g).
``(E) Enrollment disputes.--If a dispute arises over school
selection or enrollment in a school--
``(i) the child or youth shall be immediately admitted
to the school in which enrollment is sought, pending
resolution of the dispute;
``(ii) the parent or guardian of the child or youth
shall be provided with a written explanation of the
school's decision regarding school selection or enrollment,
including the rights of the parent, guardian, or youth to
appeal the decision;
``(iii) the child, youth, parent, or guardian shall be
referred to the local educational agency liaison designated
under paragraph (1)(J)(ii), who shall carry out the dispute
resolution process as described in paragraph (1)(C) as
expeditiously as possible after receiving notice of the
dispute; and
``(iv) in the case of an unaccompanied youth, the
homeless liaison shall ensure that the youth is immediately
enrolled in school pending resolution of the dispute.
``(F) Placement choice.--The choice regarding placement
shall be made regardless of whether the child or youth lives
with the homeless parents or has been temporarily placed
elsewhere.
``(G) School of origin defined.--In this paragraph, the
term `school of origin' means the school that the child or
youth attended when permanently housed or the school in which
the child or youth was last enrolled.
``(H) Contact information.--Nothing in this subtitle shall
prohibit a local educational agency from requiring a parent or
guardian of a homeless child to submit contact information.
``(4) Comparable services.--Each homeless child or youth to be
assisted under this subtitle shall be provided services comparable
to services offered to other students in the school selected under
paragraph (3), including the following:
``(A) Transportation services.
``(B) Educational services for which the child or youth
meets the eligibility criteria, such as services provided under
title I of the Elementary and Secondary Education Act of 1965
or similar State or local programs, educational programs for
children with disabilities, and educational programs for
students with limited English proficiency.
``(C) Programs in vocational and technical education.
``(D) Programs for gifted and talented students.
``(E) School nutrition programs.
``(5) Coordination.--
``(A) In general.--Each local educational agency serving
homeless children and youths that receives assistance under
this subtitle shall coordinate--
``(i) the provision of services under this subtitle
with local social services agencies and other agencies or
programs providing services to homeless children and youths
and their families, including services and programs funded
under the Runaway and Homeless Youth Act (42 U.S.C. 5701 et
seq.); and
``(ii) with other local educational agencies on
interdistrict issues, such as transportation or transfer of
school records.
``(B) Housing assistance.--If applicable, each State
educational agency and local educational agency that receives
assistance under this subtitle shall coordinate with State and
local housing agencies responsible for developing the
comprehensive housing affordability strategy described in
section 105 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12705) to minimize educational
disruption for children and youths who become homeless.
``(C) Coordination purpose.--The coordination required
under subparagraphs (A) and (B) shall be designed to--
``(i) ensure that homeless children and youths have
access and reasonable proximity to available education and
related support services; and
``(ii) raise the awareness of school personnel and
service providers of the effects of short-term stays in a
shelter and other challenges associated with homelessness.
``(6) Local educational agency liaison.--
``(A) Duties.--Each local educational agency liaison for
homeless children and youths, designated under paragraph
(1)(J)(ii), shall ensure that--
``(i) homeless children and youths are identified by
school personnel and through coordination activities with
other entities and agencies;
``(ii) homeless children and youths enroll in, and have
a full and equal opportunity to succeed in, schools of that
local educational agency;
``(iii) homeless families, children, and youths receive
educational services for which such families, children, and
youths are eligible, including Head Start and Even Start
programs and preschool programs administered by the local
educational agency, and referrals to health care services,
dental services, mental health services, and other
appropriate services;
``(iv) the parents or guardians of homeless children
and youths are informed of the educational and related
opportunities available to their children and are provided
with meaningful opportunities to participate in the
education of their children;
``(v) public notice of the educational rights of
homeless children and youths is disseminated where such
children and youths receive services under this Act, such
as schools, family shelters, and soup kitchens;
``(vi) enrollment disputes are mediated in accordance
with paragraph (3)(E); and
``(vii) the parent or guardian of a homeless child or
youth, and any unaccompanied youth, is fully informed of
all transportation services, including transportation to
the school of origin, as described in paragraph
(1)(J)(iii), and is assisted in accessing transportation to
the school that is selected under paragraph (3)(A).
``(B) Notice.--State coordinators established under
subsection (d)(3) and local educational agencies shall inform
school personnel, service providers, and advocates working with
homeless families of the duties of the local educational agency
liaisons.
``(C) Local and state coordination.--Local educational
agency liaisons for homeless children and youths shall, as a
part of their duties, coordinate and collaborate with State
coordinators and community and school personnel responsible for
the provision of education and related services to homeless
children and youths.
``(7) Review and revisions.--
``(A) In general.--Each State educational agency and local
educational agency that receives assistance under this subtitle
shall review and revise any policies that may act as barriers
to the enrollment of homeless children and youths in schools
that are selected under paragraph (3).
``(B) Consideration.--In reviewing and revising such
policies, consideration shall be given to issues concerning
transportation, immunization, residency, birth certificates,
school records and other documentation, and guardianship.
``(C) Special attention.--Special attention shall be given
to ensuring the enrollment and attendance of homeless children
and youths who are not currently attending school.
``SEC. 723. LOCAL EDUCATIONAL AGENCY SUBGRANTS FOR THE EDUCATION OF
HOMELESS CHILDREN AND YOUTHS.
``(a) General Authority.--
``(1) In general.--The State educational agency shall, in
accordance with section 722(e), and from amounts made available to
such agency under section 726, make subgrants to local educational
agencies for the purpose of facilitating the enrollment,
attendance, and success in school of homeless children and youths.
``(2) Services.--
``(A) In general.--Services under paragraph (1)--
``(i) may be provided through programs on school
grounds or at other facilities;
``(ii) shall, to the maximum extent practicable, be
provided through existing programs and mechanisms that
integrate homeless children and youths with nonhomeless
children and youths; and
``(iii) shall be designed to expand or improve services
provided as part of a school's regular academic program,
but not to replace such services provided under such
program.
``(B) Services on school grounds.--If services under
paragraph (1) are provided on school grounds, schools--
``(i) may use funds under this subtitle to provide the
same services to other children and youths who are
determined by the local educational agency to be at risk of
failing in, or dropping out of, school, subject to the
requirements of clause (ii); and
``(ii) except as otherwise provided in section
722(e)(3)(B), shall not provide services in settings within
a school that segregate homeless children and youths from
other children and youths, except as necessary for short
periods of time--
``(I) for health and safety emergencies; or
``(II) to provide temporary, special, and
supplementary services to meet the unique needs of
homeless children and youths.
``(3) Requirement.--Services provided under this section shall
not replace the regular academic program and shall be designed to
expand upon or improve services provided as part of the school's
regular academic program.
``(b) Application.--A local educational agency that desires to
receive a subgrant under this section shall submit an application to
the State educational agency at such time, in such manner, and
containing or accompanied by such information as the State educational
agency may reasonably require. Such application shall include the
following:
``(1) An assessment of the educational and related needs of
homeless children and youths in the area served by such agency
(which may be undertaken as part of needs assessments for other
disadvantaged groups).
``(2) A description of the services and programs for which
assistance is sought to address the needs identified in paragraph
(1).
``(3) An assurance that the local educational agency's combined
fiscal effort per student, or the aggregate expenditures of that
agency and the State with respect to the provision of free public
education by such agency for the fiscal year preceding the fiscal
year for which the determination is made, was not less than 90
percent of such combined fiscal effort or aggregate expenditures
for the second fiscal year preceding the fiscal year for which the
determination is made.
``(4) An assurance that the applicant complies with, or will
use requested funds to comply with, paragraphs (3) through (7) of
section 722(g).
``(5) A description of policies and procedures, consistent with
section 722(e)(3), that the agency will implement to ensure that
activities carried out by the agency will not isolate or stigmatize
homeless children and youths.
``(c) Awards.--
``(1) In general.--The State educational agency shall, in
accordance with the requirements of this subtitle and from amounts
made available to it under section 726, make competitive subgrants
to local educational agencies that submit applications under
subsection (b). Such subgrants shall be awarded on the basis of the
need of such agencies for assistance under this subtitle and the
quality of the applications submitted.
``(2) Need.--In determining need under paragraph (1), the State
educational agency may consider the number of homeless children and
youths enrolled in preschool, elementary, and secondary schools
within the area served by the local educational agency, and shall
consider the needs of such children and youths and the ability of
the local educational agency to meet such needs. The State
educational agency may also consider the following:
``(A) The extent to which the proposed use of funds will
facilitate the enrollment, retention, and educational success
of homeless children and youths.
``(B) The extent to which the application--
``(i) reflects coordination with other local and State
agencies that serve homeless children and youths; and
``(ii) describes how the applicant will meet the
requirements of section 722(g)(3).
``(C) The extent to which the applicant exhibits in the
application and in current practice a commitment to education
for all homeless children and youths.
``(D) Such other criteria as the State agency determines
appropriate.
``(3) Quality.--In determining the quality of applications
under paragraph (1), the State educational agency shall consider
the following:
``(A) The applicant's needs assessment under subsection
(b)(1) and the likelihood that the program presented in the
application will meet such needs.
``(B) The types, intensity, and coordination of the
services to be provided under the program.
``(C) The involvement of parents or guardians of homeless
children or youths in the education of their children.
``(D) The extent to which homeless children and youths will
be integrated within the regular education program.
``(E) The quality of the applicant's evaluation plan for
the program.
``(F) The extent to which services provided under this
subtitle will be coordinated with other services available to
homeless children and youths and their families.
``(G) Such other measures as the State educational agency
considers indicative of a high-quality program, such as the
extent to which the local educational agency will provide case
management or related services to unaccompanied youths.
``(4) Duration of grants.--Grants awarded under this section
shall be for terms not to exceed 3 years.
``(d) Authorized Activities.--A local educational agency may use
funds awarded under this section for activities that carry out the
purpose of this subtitle, including the following:
``(1) The provision of tutoring, supplemental instruction, and
enriched educational services that are linked to the achievement of
the same challenging State academic content standards and
challenging State student academic achievement standards the State
establishes for other children and youths.
``(2) The provision of expedited evaluations of the strengths
and needs of homeless children and youths, including needs and
eligibility for programs and services (such as educational programs
for gifted and talented students, children with disabilities, and
students with limited English proficiency, services provided under
title I of the Elementary and Secondary Education Act of 1965 or
similar State or local programs, programs in vocational and
technical education, and school nutrition programs).
``(3) Professional development and other activities for
educators and pupil services personnel that are designed to
heighten the understanding and sensitivity of such personnel to the
needs of homeless children and youths, the rights of such children
and youths under this subtitle, and the specific educational needs
of runaway and homeless youths.
``(4) The provision of referral services to homeless children
and youths for medical, dental, mental, and other health services.
``(5) The provision of assistance to defray the excess cost of
transportation for students under section 722(g)(4)(A), not
otherwise provided through Federal, State, or local funding, where
necessary to enable students to attend the school selected under
section 722(g)(3).
``(6) The provision of developmentally appropriate early
childhood education programs, not otherwise provided through
Federal, State, or local funding, for preschool-aged homeless
children.
``(7) The provision of services and assistance to attract,
engage, and retain homeless children and youths, and unaccompanied
youths, in public school programs and services provided to
nonhomeless children and youths.
``(8) The provision for homeless children and youths of before-
and after-school, mentoring, and summer programs in which a teacher
or other qualified individual provides tutoring, homework
assistance, and supervision of educational activities.
``(9) If necessary, the payment of fees and other costs
associated with tracking, obtaining, and transferring records
necessary to enroll homeless children and youths in school,
including birth certificates, immunization or medical records,
academic records, guardianship records, and evaluations for special
programs or services.
``(10) The provision of education and training to the parents
of homeless children and youths about the rights of, and resources
available to, such children and youths.
``(11) The development of coordination between schools and
agencies providing services to homeless children and youths, as
described in section 722(g)(5).
``(12) The provision of pupil services (including violence
prevention counseling) and referrals for such services.
``(13) Activities to address the particular needs of homeless
children and youths that may arise from domestic violence.
``(14) The adaptation of space and purchase of supplies for any
nonschool facilities made available under subsection (a)(2) to
provide services under this subsection.
``(15) The provision of school supplies, including those
supplies to be distributed at shelters or temporary housing
facilities, or other appropriate locations.
``(16) The provision of other extraordinary or emergency
assistance needed to enable homeless children and youths to attend
school.
``SEC. 724. SECRETARIAL RESPONSIBILITIES.
``(a) Review of State Plans.--In reviewing the State plan submitted
by a State educational agency under section 722(g), the Secretary shall
use a peer review process and shall evaluate whether State laws,
policies, and practices described in such plan adequately address the
problems of homeless children and youths relating to access to
education and placement as described in such plan.
``(b) Technical Assistance.--The Secretary shall provide support
and technical assistance to a State educational agency to assist such
agency in carrying out its responsibilities under this subtitle, if
requested by the State educational agency.
``(c) Notice.--The Secretary shall, before the next school year
that begins after the date of enactment of the McKinney-Vento Homeless
Education Assistance Improvements Act of 2001, create and disseminate
nationwide a public notice of the educational rights of homeless
children and youths and disseminate such notice to other Federal
agencies, programs, and grantees, including Head Start grantees, Health
Care for the Homeless grantees, Emergency Food and Shelter grantees,
and homeless assistance programs administered by the Department of
Housing and Urban Development.
``(d) Evaluation and Dissemination.--The Secretary shall conduct
evaluation and dissemination activities of programs designed to meet
the educational needs of homeless elementary and secondary school
students, and may use funds appropriated under section 726 to conduct
such activities.
``(e) Submission and Distribution.--The Secretary shall require
applications for grants under this subtitle to be submitted to the
Secretary not later than the expiration of the 60-day period beginning
on the date that funds are available for purposes of making such grants
and shall make such grants not later than the expiration of the 120-day
period beginning on such date.
``(f) Determination by Secretary.--The Secretary, based on the
information received from the States and information gathered by the
Secretary under subsection (h), shall determine the extent to which
State educational agencies are ensuring that each homeless child and
homeless youth has access to a free appropriate public education, as
described in section 721(1).
``(g) Guidelines.--The Secretary shall develop, issue, and publish
in the Federal Register, not later than 60 days after the date of
enactment of the McKinney-Vento Homeless Education Assistance
Improvements Act of 2001, school enrollment guidelines for States with
respect to homeless children and youths. The guidelines shall
describe--
``(1) successful ways in which a State may assist local
educational agencies to immediately enroll homeless children and
youths in school; and
``(2) how a State can review the State's requirements regarding
immunization and medical or school records and make such revisions
to the requirements as are appropriate and necessary in order to
enroll homeless children and youths in school immediately.
``(h) Information.--
``(1) In general.--From funds appropriated under section 726,
the Secretary shall, directly or through grants, contracts, or
cooperative agreements, periodically collect and disseminate data
and information regarding--
``(A) the number and location of homeless children and
youths;
``(B) the education and related services such children and
youths receive;
``(C) the extent to which the needs of homeless children
and youths are being met; and
``(D) such other data and information as the Secretary
determines to be necessary and relevant to carry out this
subtitle.
``(2) Coordination.--The Secretary shall coordinate such
collection and dissemination with other agencies and entities that
receive assistance and administer programs under this subtitle.
``(i) Report.--Not later than 4 years after the date of enactment
of the McKinney-Vento Homeless Education Assistance Improvements Act of
2001, the Secretary shall prepare and submit to the President and the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a report on the status of education of homeless
children and youths, which shall include information on--
``(1) the education of homeless children and youths; and
``(2) the actions of the Secretary and the effectiveness of the
programs supported under this subtitle.
``SEC. 725. DEFINITIONS.
``For purposes of this subtitle:
``(1) The terms `enroll' and `enrollment' include attending
classes and participating fully in school activities.
``(2) The term `homeless children and youths'--
``(A) means individuals who lack a fixed, regular, and
adequate nighttime residence (within the meaning of section
103(a)(1)); and
``(B) includes--
``(i) children and youths who are sharing the housing
of other persons due to loss of housing, economic hardship,
or a similar reason; are living in motels, hotels, trailer
parks, or camping grounds due to the lack of alternative
adequate accommodations; are living in emergency or
transitional shelters; are abandoned in hospitals; or are
awaiting foster care placement;
``(ii) children and youths who have a primary nighttime
residence that is a public or private place not designed
for or ordinarily used as a regular sleeping accommodation
for human beings (within the meaning of section
103(a)(2)(C));
``(iii) children and youths who are living in cars,
parks, public spaces, abandoned buildings, substandard
housing, bus or train stations, or similar settings; and
``(iv) migratory children (as such term is defined in
section 1309 of the Elementary and Secondary Education Act
of 1965) who qualify as homeless for the purposes of this
subtitle because the children are living in circumstances
described in clauses (i) through (iii).
``(3) The terms `local educational agency' and `State
educational agency' have the meanings given such terms in section
9101 of the Elementary and Secondary Education Act of 1965.
``(4) The term `Secretary' means the Secretary of Education.
``(5) The term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``(6) The term `unaccompanied youth' includes a youth not in
the physical custody of a parent or guardian.
``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this subtitle, there are
authorized to be appropriated $70,000,000 for fiscal year 2002 and such
sums as may be necessary for each of fiscal years 2003 through 2007.''.
SEC. 1033. CONFORMING AMENDMENT.
The table of contents of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11301 note) is amended so that the items relating to
subtitle B of title VII read as follows:
``Subtitle B--Education for Homeless Children and Youths
``Sec. 721. Statement of policy.
``Sec. 722. Grants for State and local activities for the education of
homeless children and youths.
``Sec. 723. Local educational agency subgrants for the education of
homeless children and youths.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.
SEC. 1034. TECHNICAL AMENDMENT.
(a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 11301)
is amended by striking ``Section 1 of'' and inserting ``Section 101
of''.
(b) Effective Date.--The amendment made by subsection (a) shall be
deemed to be effective on the date of enactment of Public Law 106-400.
PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT
SEC. 1041. SHORT TITLE.
This part may be cited as the ``Native American Education
Improvement Act of 2001''.
SEC. 1042. AMENDMENTS TO THE EDUCATION AMENDMENTS OF 1978.
Part B of title XI of the Education Amendments of 1978 (25 U.S.C.
2001 et seq.) is amended to read as follows:
``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS
``SEC. 1120. DECLARATION OF POLICY.
``Congress declares that the Federal Government has the sole
responsibility for the operation and financial support of the Bureau of
Indian Affairs funded school system that it has established on or near
Indian reservations and Indian trust lands throughout the Nation for
Indian children. It is the policy of the United States to fulfill the
Federal Government's unique and continuing trust relationship with and
responsibility to the Indian people for the education of Indian
children and for the operation and financial support of the Bureau of
Indian Affairs-funded school system to work in full cooperation with
tribes toward the goal of ensuring that the programs of the Bureau of
Indian Affairs-funded school system are of the highest quality and
provide for the basic elementary and secondary educational needs of
Indian children, including meeting the unique educational and cultural
needs of those children.
``SEC. 1121. ACCREDITATION FOR THE BASIC EDUCATION OF INDIAN CHILDREN
IN BUREAU OF INDIAN AFFAIRS SCHOOLS.
``(a) Purpose; Declarations of Purpose.--
``(1) Purpose.--The purpose of the accreditation required under
this section shall be to ensure that Indian students being served
by a school funded by the Bureau of Indian Affairs are provided
with educational opportunities that equal or exceed those for all
other students in the United States.
``(2) Declarations of purpose.--Local school boards for schools
operated by the Bureau of Indian Affairs, in cooperation and
consultation with the appropriate tribal governing bodies and their
communities, are encouraged to adopt declarations of purpose for
education for their communities, taking into account the
implications of such declarations on education in their communities
and for their schools. In adopting such declarations of purpose,
the school boards shall consider the effect the declarations may
have on the motivation of students and faculties.
``(b) Accreditation.--
``(1) Deadline.--
``(A) In general.--Not later than 24 months after the date
of enactment of the Native American Education Improvement Act
of 2001, each Bureau-funded school shall, to the extent that
necessary funds are provided, be a candidate for accreditation
or be accredited--
``(i) by a tribal accrediting body, if the
accreditation standards of the tribal accrediting body have
been accepted by formal action of the tribal governing body
and such accreditation is acknowledged by a generally
recognized State certification or regional accrediting
agency;
``(ii) by a regional accreditation agency;
``(iii) by State accreditation standards for the State
in which the Bureau-funded school is located; or
``(iv) in the case of a Bureau-funded school that is
located on a reservation that is located in more than one
State, in accordance with the State accreditation standards
of one State as selected by the tribal government.
``(B) Feasibility study.--Not later than 12 months after
the date of enactment of the Native American Education
Improvement Act of 2001, the Secretary of the Interior and the
Secretary of Education shall, in consultation with Indian
tribes, Indian education organizations, and accrediting
agencies, develop and submit to the appropriate committees of
Congress a report on the desirability and feasibility of
establishing a tribal accreditation agency that would--
``(i) review and acknowledge the accreditation
standards for Bureau-funded schools; and
``(ii) establish accreditation procedures to facilitate
the application, review of the standards and review
processes, and recognition of qualified and credible tribal
departments of education as accrediting bodies serving
tribal schools.
``(2) Determination of accreditation to be applied.--The
accreditation type applied for each school shall be determined by
the tribal governing body, or the school board, if authorized by
the tribal governing body.
``(3) Assistance to school boards.--
``(A) In general.--The Secretary, through contracts and
grants, shall provide technical and financial assistance to
Bureau-funded schools, to the extent that necessary amounts are
made available, to enable such schools to obtain the
accreditation required under this subsection, if the school
boards request that such assistance, in part or in whole, be
provided.
``(B) Entities through which assistance may be provided.--
The Secretary may provide such assistance directly or through
the Department of Education, an institution of higher
education, a private not-for-profit organization or for-profit
organization, an educational service agency, or another entity
with demonstrated experience in assisting schools in obtaining
accreditation.
``(4) Application of current standards during accreditation.--A
Bureau-funded school that is seeking accreditation shall remain
subject to the standards issued under section 1121 of the Education
Amendments of 1978 and in effect on the day before the date of
enactment of the Native American Education Improvement Act of 2001
until such time as the school is accredited, except that if any of
such standards are in conflict with the standards of the
accrediting agency, the standards of such agency shall apply in
such case.
``(5) Annual report on unaccredited schools.--Not later than 90
days after the end of each school year, the Secretary shall prepare
and submit to the Committee on Appropriations, the Committee on
Education and the Workforce, and the Committee on Resources of the
House of Representatives and the Committee on Appropriations, the
Committee on Indian Affairs, and the Committee on Health,
Education, Labor, and Pensions of the Senate, a report concerning
unaccredited Bureau-funded schools that--
``(A) identifies those Bureau-funded schools that fail to
be accredited or to be candidates for accreditation within the
period provided for in paragraph (1);
``(B) with respect to each Bureau-funded school identified
under subparagraph (A), identifies the reasons that each such
school is not accredited or a candidate for accreditation, as
determined by the appropriate accreditation agency, and a
description of any possible way in which to remedy such
nonaccreditation; and
``(C) with respect to each Bureau-funded school for which
the reported reasons for the lack of accreditation under
subparagraph (B) are a result of the school's inadequate basic
resources, contains information and funding requests for the
full funding needed to provide such schools with accreditation,
such funds if provided shall be applied to such unaccredited
school under this paragraph.
``(6) Opportunity to review and present evidence.--
``(A) In general.--Prior to including a Bureau-funded
school in an annual report required under paragraph (5), the
Secretary shall--
``(i) ensure that the school has exhausted all
administrative remedies provided by the accreditation
agency; and
``(ii) provide the school with an opportunity to review
the data on which such inclusion is based.
``(B) Provision of additional information.--If the school
board of a school that the Secretary has proposed for inclusion
in an annual report under paragraph (5) believes that such
inclusion is in error, the school board may provide to the
Secretary such information as the board believes is in conflict
with the information and conclusions of the Secretary with
respect to the determination to include the school in such
annual report. The Secretary shall consider such information
provided by the school board before making a final
determination concerning the inclusion of the school in any
such report.
``(C) Publication of accreditation status.--Not later than
30 days after making an initial determination to include a
school in an annual report under paragraph (5), the Secretary
shall make public the final determination on the accreditation
status of the school.
``(7) School plan.--
``(A) In general.--Not later than 120 days after the date
on which a school is included in an annual report under
paragraph (5), the school shall develop a school plan, in
consultation with interested parties including parents, school
staff, the school board, and other outside experts (if
appropriate), that shall be submitted to the Secretary for
approval. The school plan shall cover a 3-year period and
shall--
``(i) incorporate strategies that address the specific
issues that caused the school to fail to be accredited or
fail to be a candidate for accreditation;
``(ii) incorporate policies and practices concerning
the school that have the greatest likelihood of ensuring
that the school will obtain accreditation during the 3-year
period beginning on the date on which the plan is
implemented;
``(iii) contain an assurance that the school will
reserve the necessary funds, from the funds described in
paragraph (3), for each fiscal year for the purpose of
obtaining accreditation;
``(iv) specify how the funds described in clause (iii)
will be used to obtain accreditation;
``(v) establish specific annual, objective goals for
measuring continuous and significant progress made by the
school in a manner that will ensure the accreditation of
the school within the 3-year period described in clause
(ii);
``(vi) identify how the school will provide written
notification about the lack of accreditation to the parents
of each student enrolled in such school, in a format and,
to the extent practicable, in a language the parents can
understand; and
``(vii) specify the responsibilities of the school
board and any assistance to be provided by the Secretary
under paragraph (3).
``(B) Implementation.--A school shall implement the school
plan under subparagraph (A) expeditiously, but in no event
later than the beginning of the school year following the
school year in which the school was included in the annual
report under paragraph (5) so long as the necessary resources
have been provided to the school.
``(C) Review of plan.--Not later than 45 days after
receiving a school plan, the Secretary shall--
``(i) establish a peer-review process to assist with
the review of the plan; and
``(ii) promptly review the school plan, work with the
school as necessary, and approve the school plan if the
plan meets the requirements of this paragraph.
``(8) Corrective action.--
``(A) Definition.--In this subsection, the term `corrective
action' means any action that--
``(i) substantially and directly responds to--
``(I) the failure of a school to achieve
accreditation; and
``(II) any underlying staffing, curriculum, or
other programmatic problem in the school that
contributed to the lack of accreditation; and
``(ii) is designed to increase substantially the
likelihood that the school will be accredited.
``(B) Waiver.--The Secretary shall grant a waiver which
shall exempt a school from any or all of the requirements of
this paragraph and paragraph (7) (though such school shall be
required to comply with the standards contained in part 36 of
title 25, Code of Federal Register, as in effect on the date of
enactment of the Native American Education Improvement Act of
2001) if the school--
``(i) is identified in the report described in
paragraph (5)(C); and
``(ii) fails to be accredited for reasons that are
beyond the control of the school board, as determined by
the Secretary, including, but not limited to--
``(I) a significant decline in financial resources;
``(II) the poor condition of facilities, vehicles,
or other property; and
``(III) a natural disaster.
``(C) Duties of secretary.--After providing assistance to a
school under paragraph (3), the Secretary shall--
``(i) annually review the progress of the school under
the applicable school plan to determine whether the school
is meeting, or making adequate progress 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.
``(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 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. The Secretary shall reach agreement
with the tribal governing body on the proposal and any such
amendments to the plan not later than 30 days after the
expiration of the 60-day period described in the preceding
sentence. After the approval of the proposal and any
amendments, the Secretary, with continuing consultation
with such tribal governing body, shall implement the
proposal.
``(iv) Accreditation.--Upon accreditation of the
school, the tribe shall have the option to assume the
operation and administration of the school as a contract
school after complying with the Indian Self-Determination
Act, or as a grant school, after complying with the
Tribally Controlled Schools Act of 1988, at the beginning
of the school year following the year in which the school
obtains accreditation.
``(v) Retrocede.--Nothing in this subparagraph shall
limit a tribe's right to retrocede operation of a school to
the Secretary pursuant to section 105(e) of the Indian
Self-Determination Act (with respect to a contract school)
or section 5204(f) of the Tribally Controlled Schools Act
of 1988 (with respect to a grant school).
``(vi) Consistent.--The provisions of this subparagraph
shall be construed to be consistent with the provisions of
the Tribally Controlled Schools Act of 1988 and the Indian
Self-Determination Act as in effect on the day before the
date of enactment of the Native American Education
Improvement Act of 2001, and shall not be construed as
expanding the authority of the Secretary under any other
law.
``(F) Hearing.--With respect to a school that is operated
pursuant to a grant, or a school that is operated under a
contract under the Indian Self-Determination Act, prior to
implementing any corrective action under this paragraph, the
Secretary shall provide notice and an opportunity for a hearing
to the affected school pursuant to section 5207 of the Tribally
Controlled Schools Act of 1988.
``(9) Statutory construction.--Nothing in this section shall be
construed to alter or otherwise affect the rights, remedies, and
procedures afforded to school employees under applicable law
(including applicable regulations or court orders) or under the
terms of any collective bargaining agreement, memorandum of
understanding, or other agreement between such employees and their
employers.
``(10) Fiscal control and fund accounting standards.--The
Bureau shall, either directly or through contract with an Indian
organization, establish a consistent system of reporting standards
for fiscal control and fund accounting for all contract and grant
schools. Such standards shall provide data comparable to those used
by Bureau-operated schools.
``(c) Annual Plan.--
``(1) In general.--Except as provided in subsection (b), the
Secretary shall implement the standards in effect under this
section on the day before the date of enactment of the Native
American Education Improvement Act of 2001.
``(2) Plan.--On an annual basis, the Secretary shall submit to
the appropriate committees of Congress, all Bureau-funded schools,
and the tribal governing bodies of such schools a detailed plan to
ensure that all Bureau-funded schools are accredited, or if such
schools are in the process of obtaining accreditation that such
schools meet the Bureau standards in effect on the day before the
date of enactment of the Native American Education Improvement Act
of 2001 to the extent that such standards do not conflict with the
standards of the accrediting agency. Such plan shall include
detailed information on the status of each school's educational
program in relation to the applicable standards, specific cost
estimates for meeting such standards at each school, and specific
timelines for bringing each school up to the level required by such
standards.
``(d) Closure or Consolidation of Schools.--
``(1) In general.--Except as specifically required by law--
``(A) no Bureau-funded school or dormitory operated on or
after January 1, 1992, may be closed, consolidated, or
transferred to another authority; and
``(B) no program of such a school may be substantially
curtailed except in accordance with the requirements of this
subsection.
``(2) Exceptions.--This subsection (other than this paragraph)
shall not apply--
``(A) in those cases in which the tribal governing body for
a school, or the local school board concerned (if designated by
the tribal governing body to act under this paragraph),
requests the closure, consolidation, or substantial
curtailment; or
``(B) if a temporary closure, consolidation, or substantial
curtailment is required by facility conditions that constitute
an immediate hazard to health and safety.
``(3) Regulations.--The Secretary shall, by regulation,
promulgate standards and procedures for the closure, transfer to
another authority, consolidation, or substantial curtailment of
Bureau schools, in accordance with the requirements of this
subsection.
``(4) Notice.--
``(A) In general.--In a case in which closure, transfer to
another authority, consolidation, or substantial curtailment of
a school is under active consideration or review by any
division of the Bureau or the Department of the Interior, the
affected tribe, tribal governing body, and designated local
school board will be notified immediately in writing, kept
fully and currently informed, and afforded an opportunity to
comment with respect to such consideration or review.
``(B) Decision to close.--If a formal decision is made to
close, transfer to another authority, consolidate, or
substantially curtail a school, the affected tribe, tribal
governing body, and designated school board shall be notified
not later than 180 days before the end of the school year
preceding the proposed closure date.
``(C) Copies.--Copies of any such notices and information
shall be--
``(i) submitted promptly to the appropriate committees
of Congress; and
``(ii) published in the Federal Register.
``(5) Report.--The Secretary shall submit to the appropriate
committees of Congress, the affected tribe, and the designated
school board, a report describing the process of the active
consideration or review referred to in paragraph (4) that
includes--
``(A) a study of the impact of such action on the student
population;
``(B) a description of those students with particular
educational and social needs;
``(C) recommendations to ensure that alternative services
are available to such students; and
``(D) a description of the consultation conducted between
the potential service provider, current service provider,
parents, tribal representatives and the tribe or tribes
involved, and the Director of the Office of Indian Education
Programs within the Bureau regarding such students.
``(6) Limitation on certain actions.--No irrevocable action may
be taken in furtherance of any such proposed school closure,
transfer to another authority, consolidation, or substantial
curtailment (including any action which would prejudice the
personnel or programs of such school) prior to the end of the first
full academic year after such report is made.
``(7) Tribal governing body approval required for certain
actions.--The Secretary may, with the approval of the tribal
governing body, terminate, contract, transfer to any other
authority, consolidate, or substantially curtail the operation or
facilities of--
``(A) any Bureau-funded school that is operated on or after
January 1, 1999;
``(B) any program of such a school that is operated on or
after January 1, 1999; or
``(C) any school board of a school operated under a grant
under the Tribally Controlled Schools Act of 1988.
``(e) Application for Contracts or Grants for Non-Bureau-Funded
Schools or Expansion of Bureau-Funded Schools.--
``(1) Review by secretary.--
``(A) Consideration of factors.--
``(i) In general.--The Secretary shall consider only
the factors described in subparagraph (B) in reviewing--
``(I) applications from any tribe for the awarding
of a contract or grant for a school that is not a
Bureau-funded school; and
``(II) applications from any tribe or school board
of any Bureau-funded school for--
``(aa) a school which is not a Bureau-funded
school; or
``(bb) the expansion of a Bureau-funded school
which would increase the amount of funds received
by the Indian tribe or school board under section
1127.
``(ii) No denial based on geographic proximity.--With
respect to applications described in this subparagraph, the
Secretary shall give consideration to all factors described
in subparagraph (B), but no such application shall be
denied based primarily upon the geographic proximity of
comparable public education.
``(B) Factors.--With respect to applications described in
subparagraph (A), the Secretary shall consider the following
factors relating to the program and services that are the
subject of the application:
``(i) The adequacy of the facilities or the potential
to obtain or provide adequate facilities.
``(ii) Geographic and demographic factors in the
affected areas.
``(iii) The adequacy of the applicant's program plans
or, in the case of a Bureau-funded school, of projected
needs analysis done either by the tribe or the Bureau.
``(iv) Geographic proximity of comparable public
education.
``(v) The stated needs of all affected parties,
including students, families, tribal governments at both
the central and local levels, and school organizations.
``(vi) Adequacy and comparability of programs already
available.
``(vii) Consistency of available programs with tribal
educational codes or tribal legislation on education.
``(viii) The history and success of those services for
the proposed population to be served, as determined from
all factors, including standardized examination
performance.
``(2) Determination on application.--
``(A) In general.--Not later than 180 days after the date
on which an application described in paragraph (1)(A) is
submitted to the Secretary, the Secretary shall make a
determination of whether to approve the application.
``(B) Failure to make determination.--If the Secretary
fails to make a determination with respect to an application by
the date described in subparagraph (A), the application shall
be deemed to have been approved by the Secretary.
``(3) Requirements for applications.--
``(A) In general.--Notwithstanding paragraph (2)(B), an
application described in paragraph (1)(A) may be approved by
the Secretary only if--
``(i) the application has been approved by the tribal
governing body of the students served by (or to be served
by) the school or program that is the subject of the
application; and
``(ii) written evidence of such approval is submitted
with the application.
``(B) Included information.--Each application described in
paragraph (1)(A) shall include information concerning each of
the factors described in paragraph (1)(B).
``(4) Denial of applications.--If the Secretary denies an
application described in paragraph (1)(A), the Secretary shall--
``(A) state the objections to the application in writing to
the applicant not later than 180 days after the date the
application is submitted to the Secretary;
``(B) provide assistance to the applicant to overcome the
stated objections;
``(C) provide to the applicant a hearing on the record
regarding the denial, under the same rules and regulations as
apply under the Indian Self-Determination and Education
Assistance Act; and
``(D) provide to the applicant a notice of the applicant's
appeals rights and an opportunity to appeal the decision
resulting from the hearing under subparagraph (D).
``(5) Effective date of a subject application.--
``(A) In general.--Except as otherwise provided in this
paragraph, an action that is the subject of any application
described in paragraph (1)(A) that is approved by the Secretary
shall become effective--
``(i) at the beginning of the academic year following
the fiscal year in which the application is approved; or
``(ii) at an earlier date determined by the Secretary.
``(B) Applications deemed approved.--If an application is
deemed to have been approved by the Secretary under paragraph
(2)(B), the action that is the subject of the application shall
become effective--
``(i) on the date that is 18 months after the date on
which the application is submitted to the Secretary; or
``(ii) at an earlier date determined by the Secretary.
``(6) Statutory construction.--Nothing in this section or any
other provision of law, shall be construed to preclude the
expansion of grades and related facilities at a Bureau-funded
school, if such expansion is paid for with non-Bureau funds.
Subject to the availability of appropriated funds the Secretary is
authorized to provide the necessary funds needed to supplement the
cost of operations and maintenance of such expansion.
``(f) Joint Administration.--Administrative, transportation, and
program cost funds received by Bureau-funded schools, and any program
from the Department of Education or any other Federal agency for the
purpose of providing education or related services, and other funds
received for such education and related services from nonfederally
funded programs, shall be apportioned and the funds shall be retained
at the school.
``(g) General Use of Funds.--Funds received by Bureau-funded
schools from the Bureau of Indian Affairs, and under any program from
the Department of Education or any other Federal agency, for the
purpose of providing education or related services may be used for
schoolwide projects to improve the educational program for all Indian
students.
``(h) Study on Adequacy of Funds and Formulas.--
``(1) Study.--The Comptroller General of the United States
shall conduct a study to determine the adequacy of funding, and
formulas used by the Bureau to determine funding, for programs
operated by Bureau-funded schools, taking into account unique
circumstances applicable to Bureau-funded schools. The study shall
analyze existing information gathered and contained in germane
studies that have been conducted or are currently being conducted
with regard to Bureau-funded schools.
``(2) Action.--Upon completion of the study, the Secretary of
the Interior shall take such action as necessary to ensure
distribution of the findings of the study to all affected Indian
tribes, local school boards, and associations of local school
boards.
``SEC. 1122. NATIONAL CRITERIA FOR HOME-LIVING SITUATIONS.
``(a) Revision of Standards.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Education, Indian organizations and tribes, and
Bureau-funded schools, shall revise the national standards for
home-living (dormitory) situations to include such factors as
heating, lighting, cooling, adult-child ratios, needs for
counselors (including special needs related to off-reservation
home-living (dormitory) situations), therapeutic programs, space,
and privacy.
``(2) Implementation.--Such standards shall be implemented in
Bureau-operated schools, and shall serve as minimum standards for
contract or grant schools.
``(3) Revision after establishment.--Once established, any
revisions of such standards shall be developed according to the
requirements established under section 1137.
``(b) Implementation.--The Secretary shall implement the revised
standards established under this section immediately upon completion of
the standards.
``(c) Plan.--
``(1) In general.--The Secretary shall submit to the
appropriate committees of Congress, the tribes, and the affected
schools, and publish in the Federal Register, a detailed plan to
bring all Bureau-funded schools that provide home-living
(dormitory) situations up to the standards established under this
section.
``(2) Components of plan.--The plan described in paragraph (1)
shall include--
``(A) a statement of the relative needs of each Bureau-
funded home-living (dormitory) school;
``(B) projected future needs of each Bureau-funded home-
living (dormitory) school;
``(C) detailed information on the status of each school in
relation to the standards established under this section;
``(D) specific cost estimates for meeting each standard for
each such school;
``(E) aggregate cost estimates for bringing all such
schools into compliance with the criteria established under
this section; and
``(F) specific timelines for bringing each school into
compliance with such standards.
``(d) Waiver.--
``(1) In general.--A tribal governing body or local school
board may, in accordance with this subsection, waive the standards
established under this section for a school described in subsection
(a).
``(2) Inappropriate standards.--
``(A) In general.--A tribal governing body, or the local
school board so designated by the tribal governing body, may
waive, in whole or in part, the standards established under
this section if such standards are determined by such body or
board to be inappropriate for the needs of students from that
tribe.
``(B) Alternative standards.--The tribal governing body or
school board involved shall, not later than 60 days after
providing a waiver under subparagraph (A) for a school, submit
to the Director a proposal for alternative standards that take
into account the specific needs of the tribe's children. Such
alternative standards shall be established by the Director for
the school involved unless specifically rejected by the
Director for good cause and in writing provided to the affected
tribes or local school board.
``(e) Closure for Failure To Meet Standards Prohibited.--No school
in operation on or before July 1, 1999 (regardless of compliance or
noncompliance with the standards established under this section), may
be closed, transferred to another authority, or consolidated, and no
program of such a school may be substantially curtailed, because the
school failed to meet such standards.
``SEC. 1123. CODIFICATION OF REGULATIONS.
``(a) Part 32 of Title 25, Code of Federal Regulations.--The
provisions of part 32 of title 25, Code of Federal Regulations, as in
effect on January 1, 1987, are incorporated into this Act and shall be
treated as though such provisions are set forth in this subsection.
Such provisions may be altered only by means of an Act of Congress. To
the extent that such provisions of part 32 do not conform with this Act
or any statutory provision of law enacted before November 1, 1978, the
provisions of this Act and the provisions of such other statutory law
shall govern.
``(b) Definition of Regulation.--In this section, the term
`regulation' means any rule, regulation, guideline, interpretation,
order, or requirement of general applicability prescribed by any
officer or employee of the executive branch.
``SEC. 1124. SCHOOL BOUNDARIES.
``(a) Establishment by Secretary.--The Secretary shall establish,
by regulation, separate geographical attendance areas for each Bureau-
funded school.
``(b) Establishment by Tribal Body.--In any case where there is
more than one Bureau-funded school located on an Indian reservation, at
the direction of the tribal governing body, the relevant school boards
of the Bureau-funded schools on the reservation may, by mutual consent,
establish the relevant attendance areas for such schools, subject to
the approval of the tribal governing body. Any such boundaries so
established shall be accepted by the Secretary.
``(c) Boundary Revisions.--
``(1) Notice.--On or after July 1, 2001, no geographical
attendance area shall be revised or established with respect to any
Bureau-funded school unless the tribal governing body or the local
school board concerned (if so designated by the tribal governing
body) has been afforded--
``(A) at least 6 months notice of the intention of the
Bureau to revise or establish such attendance area; and
``(B) the opportunity to propose alternative boundaries.
``(2) Revision process.--Any tribe may petition the Secretary
for revision of existing attendance area boundaries. The Secretary
shall accept such proposed alternative or revised boundaries unless
the Secretary finds, after consultation with the affected tribe or
tribes, that such revised boundaries do not reflect the needs of
the Indian students to be served or do not provide adequate
stability to all of the affected programs. The Secretary shall
cause such revisions to be published in the Federal Register.
``(3) Tribal resolution determination.--Nothing in this section
shall deny a tribal governing body the authority, on a continuing
basis, to adopt a tribal resolution allowing parents the choice of
the Bureau-funded school their children may attend, regardless of
the attendance boundaries established under this section.
``(d) Funding Restrictions.--
``(1) In general.--The Secretary shall not deny funding to a
Bureau-funded school for any eligible Indian student attending the
school solely because that student's home or domicile is outside of
the geographical attendance area established for that school under
this section.
``(2) Transportation.--No funding shall be made available
without tribal authorization to enable a school to provide
transportation for any student to or from the school and a location
outside the approved attendance area of the school.
``(e) Reservation as Boundary.--When there is only 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.
``SEC. 1125. FACILITIES CONSTRUCTION.
``(a) National Survey of Facilities Conditions.--
``(1) In general.--Not later than 12 months after the date of
enactment of the Native American Education Improvement Act of 2001,
the General Accounting Office shall compile, collect, and secure
the data that are needed to prepare a national survey of the
physical conditions of all Bureau-funded school facilities.
``(2) Data and methodologies.--In preparing the national survey
required under paragraph (1), the General Accounting Office shall
use the following data and methodologies:
``(A) The existing Department of Defense formula for
determining the condition and adequacy of Department of Defense
facilities.
``(B) Data related to conditions of Bureau-funded schools
that has previously been compiled, collected, or secured from
whatever source derived so long as the data are accurate,
relevant, timely, and necessary to the survey.
``(C) The methodologies of the American Institute of
Architects, or other accredited and reputable architecture or
engineering associations.
``(3) Consultations.--
``(A) In general.--In carrying out the survey required
under paragraph (1), the General Accounting Office shall, to
the maximum extent practicable, consult (and if necessary
contract) with national, regional, and tribal Indian education
organizations to ensure that a complete and accurate national
survey is achieved.
``(B) Requests for information.--All Bureau-funded schools
shall comply with reasonable requests for information by the
General Accounting Office and shall respond to such requests in
a timely fashion.
``(4) Submission.--Not later than 2 years after the date of
enactment of the Native American Education Improvement Act of 2001,
the General Accounting Office shall submit the results of the
national survey conducted under paragraph (1) to the Committee on
Indian Affairs, the Committee on Health, Education, Labor, and
Pensions, and the Committee on Appropriations of the Senate and the
Committee on Resources, the Committee on Education and the
Workforce, and the Committee on Appropriations of the House of
Representatives and to the Secretary. The Secretary shall submit
the results of the national survey to school boards of Bureau-
funded schools and their respective tribes.
``(5) Negotiated rulemaking committee.--
``(A) In general.--Not later than 6 months after the date
on which the submission is made under paragraph (4), the
Secretary shall establish a negotiated rulemaking committee
pursuant to section 1138(b)(3). The negotiated rulemaking
committee shall prepare and submit to the Secretary the
following:
``(i) A catalog of the condition of school facilities
at all Bureau-funded schools that--
``(I) incorporates the findings from the General
Accounting Office study evaluating and comparing school
systems of the Department of Defense and the Bureau of
Indian Affairs;
``(II) rates such facilities with respect to the
rate of deterioration and useful life of structures and
major systems;
``(III) establishes a routine maintenance schedule
for each facility;
``(IV) identifies the complementary educational
facilities that do not exist but that are needed; and
``(V) makes projections on the amount of funds
needed to keep each school viable, consistent with the
accreditation standards required pursuant to this Act.
``(ii) A school replacement and new construction report
that determines replacement and new construction need, and
a formula for the equitable distribution of funds to
address such need, for Bureau-funded schools. Such formula
shall utilize necessary factors in determining an equitable
distribution of funds, including--
``(I) the size of school;
``(II) school enrollment;
``(III) the age of the school;
``(IV) the condition of the school;
``(V) environmental factors at the school; and
``(VI) school isolation.
``(iii) A renovation repairs report that determines
renovation need (major and minor), and a formula for the
equitable distribution of funds to address such need, for
Bureau-funded schools. Such report shall identify needed
repairs or renovations with respect to a facility, or a
part of a facility, or the grounds of the facility, to
remedy a need based on disabilities access or health and
safety changes to a facility. The formula developed shall
utilize necessary factors in determining an equitable
distribution of funds, including the factors described in
clause (ii).
``(B) Submission of reports.--Not later than 24 months
after the negotiated rulemaking committee is established under
subparagraph (A), the reports described in clauses (ii) and
(iii) of subparagraph (A) shall be submitted to the committees
of Congress referred to in paragraph (4), the national and
regional Indian education organizations, and to all school
boards of Bureau-funded schools and their respective tribes.
``(6) Facilities information systems support database.--The
Secretary shall develop a Facilities Information Systems Support
Database to maintain and update the information contained in the
reports under clauses (ii) and (iii) of paragraph (5)(A) and the
information contained in the survey conducted under paragraph (1).
The system shall be updated every 3 years by the Bureau of Indian
Affairs and monitored by General Accounting Office, and shall be
made available to school boards of Bureau-funded schools and their
respective tribes, and Congress.
``(b) Compliance With Health and Safety Standards.--
``(1) In general.--The Secretary shall immediately begin to
bring all schools, dormitories, and other Indian education-related
facilities operated by the Bureau or under contract or grant with
the Bureau, into compliance with--
``(A) all applicable tribal, Federal, or State health and
safety standards, whichever provides greater protection (except
that the tribal standards to be applied shall be no greater
than any otherwise applicable Federal or State standards);
``(B) section 504 of the Rehabilitation Act of 1973; and
``(C) the Americans with Disabilities Act of 1990.
``(2) No termination required.--Nothing in this subsection
requires termination of the operations of any facility that--
``(A) does not comply with the provisions and standards
described in paragraph (1); and
``(B) is in use on the date of enactment of the Native
American Education Improvement Act of 2001.
``(c) Compliance Plan.--At the time that the annual budget request
for Bureau educational services is presented, the Secretary shall
submit to the appropriate committees of Congress a detailed plan to
bring all facilities covered under subsection (a) into compliance with
the standards referred to in that subsection that includes--
``(1) detailed information on the status of each facility's
compliance with such standards;
``(2) specific cost estimates for meeting such standards at
each school; and
``(3) specific timelines for bringing each school into
compliance with such standards.
``(d) Construction Priorities.--
``(1) System to establish priorities.--On an annual basis, the
Secretary shall submit to the appropriate committees of Congress
and cause to be published in the Federal Register, the system used
to establish priorities for replacement and construction projects
for Bureau-funded schools and home-living schools, including
boarding schools and dormitories. At the time any budget request
for education is presented, the Secretary shall publish in the
Federal Register and submit with the budget request the current
list of all Bureau-funded school construction priorities.
``(2) Long-term construction and replacement list.--In addition
to the plan submitted under subsection (c), the Secretary shall--
``(A) not later than 18 months after the date of enactment
of the Native American Education Improvement Act of 2001,
establish a long-term construction and replacement list for all
Bureau-funded schools;
``(B) using the list prepared under subparagraph (A),
propose a list for the orderly replacement of all Bureau-funded
education-related facilities over a period of 40 years to
enable planning and scheduling of budget requests;
``(C) cause the list prepared under 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
``(E) cause the final list to be published in the Federal
Register.
``(3) Effect on other list.--Nothing in this section shall
interfere with or change in any way the construction priority list
as it existed on the day before the date of enactment of the Native
American Education Improvement Act of 2001.
``(e) Hazardous Condition at Bureau-Funded School.--
``(1) Closure, consolidation, or curtailment.--
``(A) In general.--A Bureau-funded school may be closed or
consolidated, or the programs of a Bureau-funded school may be
substantially curtailed, by reason of facility conditions that
constitute an immediate hazard to health and safety only if a
health and safety officer of the Bureau and an individual
designated at the beginning of the school year by the tribe
involved under subparagraph (B) determine that such conditions
exist at a facility of the Bureau-funded school.
``(B) Designation of individual by tribe.--To be designated
by a tribe for purposes of subparagraph (A), an individual
shall--
``(i) be a licensed or certified facilities safety
inspector;
``(ii) have demonstrated experience in the inspection
of facilities for health and safety purposes with respect
to occupancy; or
``(iii) have a significant educational background in
the health and safety of facilities with respect to
occupancy.
``(C) Inspection.--After making a determination described
in subparagraph (A), the Bureau health and safety officer and
the individual designated by the tribe shall conduct an
inspection of the conditions of such facility in order to
determine whether conditions at such facility constitute an
immediate hazard to health and safety. Such inspection shall be
completed as expeditiously as practicable, but not later than
20 days after the date on which the action described in
subparagraph (A) is taken.
``(D) Failure to concur.--If the Bureau health and safety
officer, and the individual designated by the tribe, conducting
the inspection of a facility required under subparagraph (C) do
not concur that conditions at the facility constitute an
immediate hazard to health and safety, such officer and
individual shall immediately notify the tribal governing body
and provide written information related to their
determinations.
``(E) Consideration by tribal governing body.--Not later
than 10 days after a tribal governing body receives notice
under subparagraph (D), the tribal governing body shall
consider all information relating to the determinations of the
Bureau health and safety officer and the individual designated
by the tribe and make a determination regarding the closure,
consolidation, or curtailment involved.
``(F) Agreement to close, consolidate, or curtail.--
``(i) In general.--If the Bureau health and safety
officer and the individual designated by the tribe
conducting the inspection of a facility required under
subparagraph (C), concur that conditions at the facility
constitute an immediate hazard to health and safety, or if
the tribal governing body makes such a determination under
subparagraph (E), the facility involved shall be closed
immediately.
``(ii) Reopening of facility if no immediate hazard
found to exist.--If the Bureau health and safety officer or
the individual designated by the tribe conducting the
inspection of a facility required under subparagraph (C)
determines that conditions at the facility do not
constitute an immediate hazard to health and safety, any
consolidation or curtailment that was made under this
paragraph shall immediately cease and any school closed by
reason of conditions at the facility shall be reopened
immediately.
``(G) General closure report.--If a Bureau-funded school is
temporarily closed or consolidated or the programs of a Bureau-
funded school are temporarily substantially curtailed under
this subsection and the Secretary determines that the closure,
consolidation, or curtailment will exceed 1 year, the Secretary
shall submit to the appropriate committees of Congress, the
affected tribe, and the local school board, not later than 90
days after the date on which the closure, consolidation, or
curtailment was initiated, a report that specifies--
``(i) the reasons for such temporary action;
``(ii) the actions the Secretary is taking to eliminate
the conditions that constitute the hazard;
``(iii) an estimated date by which the actions
described in clause (ii) will be concluded; and
``(iv) a plan for providing alternate education
services for students enrolled at the school that is to be
closed.
``(2) Nonapplication of certain standards for temporary
facility use.--
``(A) Classroom activities.--The Secretary shall permit the
local school board to temporarily utilize facilities adjacent
to the school, or satellite facilities, if such facilities are
suitable for conducting classroom activities. In permitting the
use of facilities under the preceding sentence, the Secretary
may waive applicable minor standards under section 1121
relating to such facilities (such as the required number of
exit lights or configuration of restrooms) so long as such
waivers do not result in the creation of an environment that
constitutes an immediate and substantial threat to the health,
safety, and life of students and staff.
``(B) Administrative activities.--The provisions of
subparagraph (A) shall apply with respect to administrative
personnel if the facilities involved are suitable for
activities performed by such personnel.
``(C) Temporary.--In this paragraph, the term `temporary'
means--
``(i) with respect to a school that is to be closed for
not more than 1 year, 3 months or less; and
``(ii) with respect to a school that is to be closed
for not less than 1 year, a time period determined
appropriate by the Bureau.
``(3) Treatment of closure.--Any closure of a Bureau-funded
school under this subsection for a period that exceeds 30 days but
is less than 1 year, shall be treated by the Bureau as an emergency
facility improvement and repair project.
``(4) Use of funds.--With respect to a Bureau-funded school
that is closed under this subsection, the tribal governing body, or
the designated local school board of each Bureau-funded school,
involved may authorize the use of funds allocated pursuant to
section 1127, to abate the hazardous conditions without further
action by Congress.
``(f) Funding Requirement.--
``(1) Distribution of funds.--Beginning with the first fiscal
year following the date of enactment of the Native American
Education Improvement Act of 2001, all funds appropriated to the
budget accounts for the operations and maintenance of Bureau-funded
schools shall be distributed by formula to the schools. No funds
from these accounts may be retained or segregated by the Bureau to
pay for administrative or other costs of any facilities branch or
office, at any level of the Bureau.
``(2) Requirements for certain uses.--No funds shall be
withheld from the distribution to the budget of any school operated
under contract or grant by the Bureau for maintenance or any other
facilities or road-related purpose, unless such school has
consented, as a modification to the contract or in writing for
grants schools, to the withholding of such funds, including the
amount thereof, the purpose for which the funds will be used, and
the timeline for the services to be provided. The school may, at
the end of any fiscal year, cancel an agreement under this
paragraph upon giving the Bureau 30 days notice of its intent to do
so.
``(g) No Reduction in Federal Funding.--Nothing in this section
shall diminish any Federal funding due to the receipt by the school of
funding for facilities improvement or construction from a State or any
other source.
``SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.
``(a) Formulation and Establishment of Policy and Procedure;
Supervision of Programs and Expenditures.--The Secretary shall vest in
the Assistant Secretary for Indian Affairs all functions with respect
to formulation and establishment of policy and procedure and
supervision of programs and expenditures of Federal funds for the
purpose of Indian education administered by the Bureau. The Assistant
Secretary shall carry out such functions through the Director of the
Office of Indian Education Programs.
``(b) Direction and Supervision of Personnel Operations.--
``(1) In general.--Not later than 180 days after the date of
enactment of the Native American Education Improvement Act of 2001,
the Director of the Office shall direct and supervise the
operations of all personnel directly and substantially involved in
the provision of education program services by the Bureau,
including school or institution custodial or maintenance personnel,
and personnel responsible for contracting, procurement, and finance
functions connected with school operation programs.
``(2) Transfers.--The Assistant Secretary for Indian Affairs
shall, not later than 180 days after the date of enactment of the
Native American Education Improvement Act of 2001, coordinate the
transfer of functions relating to procurements for, contracts of,
operation of, and maintenance of schools and other support
functions to the Director.
``(c) Inherent Federal Function.--For purposes of this Act, all
functions relating to education that are located at the Area or Agency
level and performed by an education line officer shall be subject to
contract under the Indian Self-Determination and Education Assistance
Act, unless determined by the Secretary to be inherently Federal
functions as defined in section 1141(12).
``(d) Evaluation of Programs; Services and Support Functions;
Technical and Coordinating Assistance.--Education personnel who are
under the direction and supervision of the Director of the Office of
Indian Education Programs in accordance with subsection (b)(1) shall--
``(1) monitor and evaluate Bureau education programs;
``(2) provide all services and support functions for education
programs with respect to personnel matters involving staffing
actions and functions; and
``(3) provide technical and coordinating assistance in areas
such as procurement, contracting, budgeting, personnel, curriculum,
and operation and maintenance of school facilities.
``(e) Construction, Improvement, Operation, and Maintenance of
Facilities.--
``(1) Plan for construction.--The Assistant Secretary shall
submit as part of the annual budget a plan--
``(A) for school facilities to be constructed under section
1125(c);
``(B) for establishing priorities among projects and for
the improvement and repair of educational facilities, which
together shall form the basis for the distribution of
appropriated funds; and
``(C) for capital improvements to be made over the 5
succeeding years.
``(2) Program for operation and maintenance.--
``(A) Establishment.--The Assistant Secretary shall
establish a program, including the distribution of appropriated
funds, for the operation and maintenance of education
facilities. Such program shall include--
``(i) a method of computing the amount necessary for
each educational facility;
``(ii) similar treatment of all Bureau-funded schools;
``(iii) a notice of an allocation of appropriated funds
from the Director of the Office of Indian Education
Programs directly to the education line officers and
appropriate school officials;
``(iv) a method for determining the need for, and
priority of, facilities repair and maintenance projects,
both major and minor (to be determined, through the conduct
by the Assistant Secretary, of a series of meetings at the
agency and area level with representatives of the Bureau-
funded schools in those areas and agencies to receive
comment on the lists and prioritization of such projects);
and
``(v) a system for the conduct of routine preventive
maintenance.
``(B) Local supervisors.--The appropriate education line
officers shall make arrangements for the maintenance of
education facilities with the local supervisors of the Bureau
maintenance personnel. The local supervisors of Bureau
maintenance personnel shall take appropriate action to
implement the decisions made by the appropriate education line
officers, except that no funds under this chapter may be
authorized for expenditure unless such appropriate education
line officer is assured that the necessary maintenance has
been, or will be, provided in a reasonable manner.
``(3) Implementation.--This subsection shall be implemented as
soon as practicable after the date of enactment of the Native
American Education Improvement Act of 2001.
``(f) Acceptance of Gifts and Bequests.--
``(1) Guidelines.--Notwithstanding any other provision of law,
the Director of the Office shall promulgate guidelines for the
establishment and administration of mechanisms for the acceptance
of gifts and bequests for the use and benefit of particular schools
or designated Bureau-operated education programs, including, in
appropriate cases, the establishment and administration of trust
funds.
``(2) Monitoring and reports.--Except as provided in paragraph
(3), in a case in which a Bureau-operated education program is the
beneficiary of such a gift or bequest, the Director shall--
``(A) make provisions for monitoring use of the gift or
bequest; and
``(B) submit a report to the appropriate committees of
Congress that describes the amount and terms of such gift or
bequest, the manner in which such gift or bequest shall be
used, and any results achieved by such use.
``(3) Exception.--The requirements of paragraph (2) shall not
apply in the case of a gift or bequest that is valued at $5,000 or
less.
``(g) Definition of Functions.--For the purpose of this section,
the term `functions' includes powers and duties.
``SEC. 1127. ALLOTMENT FORMULA.
``(a) Factors Considered; Revision To Reflect Standards.--
``(1) Formula.--The Secretary shall establish, by regulation
adopted in accordance with section 1137, a formula for determining
the minimum annual amount of funds necessary to sustain each
Bureau-funded school. In establishing such formula, the Secretary
shall consider--
``(A) the number of eligible Indian students served and
total student population of the school;
``(B) special cost factors, such as--
``(i) the isolation of the school;
``(ii) the need for special staffing, transportation,
or educational programs;
``(iii) food and housing costs;
``(iv) maintenance and repair costs associated with the
physical condition of the educational facilities;
``(v) special transportation and other costs of
isolated and small schools;
``(vi) the costs of home-living (dormitory)
arrangements, where determined necessary by a tribal
governing body or designated school board;
``(vii) costs associated with greater lengths of
service by education personnel;
``(viii) the costs of therapeutic programs for students
requiring such programs; and
``(ix) special costs for gifted and talented students;
``(C) the cost of providing academic services which are at
least equivalent to those provided by public schools in the
State in which the school is located;
``(D) whether the available funding will enable the school
involved to comply with the accreditation standards applicable
to the school under section 1121; and
``(E) such other relevant factors as the Secretary
determines are appropriate.
``(2) Revision of formula.--
``(A) In general.--Upon the establishment of the standards
required in section 1122, the Secretary shall revise the
formula established under this subsection to reflect the cost
of funding such standards.
``(B) Review of formula.--Not later than January 1, 2003,
the Secretary shall review the formula established under this
section and shall take such steps as are necessary to increase
the availability of counseling and therapeutic programs for
students in off-reservation home-living (dormitory) schools and
other Bureau-operated residential facilities.
``(C) Review of standards.--Concurrent with such action,
the Secretary shall review the standards established under
section 1122 to be certain that adequate provision is made for
parental notification regarding, and consent for, such
counseling and therapeutic programs.
``(b) Pro Rata Allotment.--Notwithstanding any other provision of
law, Federal funds appropriated for the general local operation of
Bureau-funded schools shall be allotted pro rata in accordance with the
formula established under subsection (a).
``(c) Annual Adjustment; Reservation of Amount for School Board
Activities.--
``(1) Annual adjustment.--For fiscal year 2003, and for each
subsequent fiscal year, the Secretary shall adjust the formula
established under subsection (a) to ensure that the formula does
the following:
``(A) Uses a weighted unit of 1.2 for each eligible Indian
student enrolled in the seventh and eighth grades of the school
in considering the number of eligible Indian students served by
the school.
``(B) Considers a school with an enrollment of less than 50
eligible Indian students as having an average daily attendance
of 50 eligible Indian students for purposes of implementing the
adjustment factor for small schools.
``(C) Takes into account the provision of residential
services on less than a 9-month basis at a school when the
school board and supervisor of the school determine that a less
than 9-month basis will be implemented for the school year
involved.
``(D) Uses a weighted unit of 2.0 for each eligible Indian
student that--
``(i) is gifted and talented; and
``(ii) is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by
the school.
``(E) Uses a weighted unit of 0.25 for each eligible Indian
student who is enrolled in a year-long credit course in an
Indian or Native language as part of the regular curriculum of
a school, in considering the number of eligible Indian students
served by such school. The adjustment required under this
subparagraph shall be used for such school after--
``(i) the certification of the Indian or Native
language curriculum by the school board of such school to
the Secretary, together with an estimate of the number of
full-time students expected to be enrolled in the
curriculum in the second school year for which the
certification is made; and
(ii) the funds appropriated for allotment under this
section are designated by the appropriations Act
appropriating such funds as the amount necessary to
implement such adjustment at such school without reducing
allotments made under this section to any school by virtue
of such adjustment.
``(2) Reservation of amount.--
``(A) In general.--From the funds allotted in accordance
with the formula established under subsection (a) for each
Bureau school, the local school board of such school may
reserve an amount which does not exceed the greater of--
``(i) $8,000; or
``(ii) the lesser of--
``(I) $15,000; or
``(II) 1 percent of such allotted funds,
for school board activities for such school, including
(notwithstanding any other provision of law) meeting expenses
and the cost of membership in, and support of, organizations
engaged in activities on behalf of Indian education.
``(B) Training.--
``(i) In general.--Each local school board, and any
agency school board that serves as a local school board for
any grant or contract school, shall ensure that each
individual who is a new member of the school board
receives, within 1 year after the individual becomes a
member of the school board, 40 hours of training relevant
to that individual's service on the board.
``(ii) Types of training.--Such training may include
training concerning legal issues pertaining to Bureau-
funded schools, legal issues pertaining to school boards,
ethics, and other topics determined to be appropriate by
the school board.
``(iii) Recommendation.--The training described in this
subparagraph shall not be required, but is recommended, for
a tribal governing body that serves in the capacity of a
school board.
``(d) Reservation of Amount for Emergencies.--
``(1) In general.--The Secretary shall reserve from the funds
available for distribution for each fiscal year under this section
an amount that, in the aggregate, equals 1 percent of the funds
available for such purpose for that fiscal year, to be used, at the
discretion of the Director of the Office of Indian Education
Programs, to meet emergencies and unforeseen contingencies
affecting the education programs funded under this section.
``(2) Use of funds.--Funds reserved under this subsection may
be expended only for education services or programs, including
emergency repairs of educational facilities, at a schoolsite (as
defined by section 5204(c)(2) of the Tribally Controlled Schools
Act of 1988).
``(3) Availability of funds.--Funds reserved under this
subsection shall remain available without fiscal year limitation
until expended. However, the aggregate amount available from all
fiscal years may not exceed 1 percent of the current year funds.
``(4) Report.--When the Secretary makes funds available under
this subsection, the Secretary shall report such action to the
appropriate committees of Congress within the annual budget
submission.
``(e) Supplemental Appropriations.--Supplemental appropriations
enacted to meet increased pay costs attributable to school level
personnel shall be distributed under this section.
``(f) Eligible Indian Student Defined.--In this section, the term
`eligible Indian student' means a student who--
``(1) is a member of, or is at least 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;
``(C) the student is a dependent of a Bureau, Indian Health
Service, or tribal government employee who lives on or near the
school site; or
``(D) tuition is paid for the student that is not more than
the tuition charged by the nearest public school district for
out-of-district students and shall be in addition to the
school's allocation under this section.
``(3) Attendance of non-indian students at contract and grant
schools.--The school board of a contract or grant school may permit
students who are not eligible Indian students under this subsection
to attend its contract school or grant school. Any tuition
collected for those students shall be in addition to funding
received under this section.
``(h) Funds Available Without Fiscal Year Limitation.--
Notwithstanding any other provision of law, at the election of the
school board of a Bureau school made at any time during the fiscal
year, a portion equal to not more than 15 percent of the funds
allocated with respect to a school under this section for any fiscal
year shall remain available to the school for expenditure without
fiscal year limitation. The Assistant Secretary shall take such steps
as are necessary to implement this subsection.
``(i) Students at Richfield Dormitory, Richfield, Utah.--
``(1) In general.--Tuition for the instruction of each out-of-
State Indian student in a home-living situation at the Richfield
dormitory in Richfield, Utah, who attends Sevier County high
schools in Richfield, Utah, for an academic year, shall be paid
from Indian school equalization program funds authorized in this
section and section 1129, at a rate not to exceed the weighted
amount provided for under subsection (b) for a student for that
year.
``(2) No administrative cost funds.--No additional
administrative cost funds shall be provided under this part to pay
for administrative costs relating to the instruction of the
students.
``SEC. 1128. ADMINISTRATIVE COST GRANTS.
``(a) Definitions.--In this section:
``(1) Administrative cost.--
``(A) In general.--The term `administrative cost' means the
cost of necessary administrative functions which--
``(i) the tribe or tribal organization incurs as a
result of operating a tribal elementary or secondary
educational program;
``(ii) are not customarily paid by comparable Bureau-
operated programs out of direct program funds; and
``(iii) are either--
``(I) normally provided for comparable Bureau
programs by Federal officials using resources other
than Bureau direct program funds; or
``(II) are otherwise required of tribal self-
determination program operators by law or prudent
management practice.
``(B) Inclusions.--The term `administrative cost' may
include--
``(i) contract or grant (or other agreement)
administration;
``(ii) executive, policy, and corporate leadership and
decisionmaking;
``(iii) program planning, development, and management;
``(iv) fiscal, personnel, property, and procurement
management;
``(v) related office services and record keeping; and
``(vi) costs of necessary insurance, auditing, legal,
safety and security services.
``(2) Bureau elementary and secondary functions.--The term
`Bureau elementary and secondary functions' means--
``(A) all functions funded at Bureau schools by the Office;
``(B) all programs--
``(i) funds for which are appropriated to other
agencies of the Federal Government; and
``(ii) which are administered for the benefit of
Indians through Bureau schools; and
``(C) all operation, maintenance, and repair funds for
facilities and Government quarters used in the operation or
support of elementary and secondary education functions for the
benefit of Indians, from whatever source derived.
``(3) Direct cost base.--
``(A) In general.--Except as otherwise provided in
subparagraph (B), the direct cost base of a tribe or tribal
organization for the fiscal year is the aggregate direct cost
program funding for all tribal elementary or secondary
educational programs operated by the tribe or tribal
organization during--
``(i) the second fiscal year preceding such fiscal
year; or
``(ii) if such programs have not been operated by the
tribe or tribal organization during the 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 of programs (excluding funds for
social services that are appropriated to agencies other than the
Bureau and are funded through the Bureau, funds for major
subcontracts, construction, and other major capital expenditures,
and unexpended funds carried over from prior years) which share
common administrative cost functions, that are operated directly by
a tribe or tribal organization under a contract, grant, or
agreement with the Bureau.
``(b) Grants; Effect Upon Appropriated Amounts.--
``(1) Grants.--Subject to the availability of funds, the
Secretary shall provide grants to each tribe or tribal organization
operating a contract school or grant school in the amount
determined under this section with respect to the tribe or tribal
organization for the purpose of paying the administrative and
indirect costs incurred in operating contract or grant schools,
provided that no school operated as a stand-alone institution shall
receive less than $200,000 per year for these purposes, in order
to--
``(A) enable tribes and tribal organizations operating such
schools, without reducing direct program services to the
beneficiaries of the program, to provide all related
administrative overhead services and operations necessary to
meet the requirements of law and prudent management practice;
and
``(B) carry out other necessary support functions which
would otherwise be provided by the Secretary or other Federal
officers or employees, from resources other than direct program
funds, in support of comparable Bureau-operated programs.
``(2) Effect upon appropriated amounts.--Amounts appropriated
to fund the grants provided under this section shall be in addition
to, and shall not reduce, the amounts appropriated for the program
being administered by the contract or grant school.
``(c) Determination of Grant Amount.--
``(1) In general.--The amount of the grant provided to each
tribe or tribal organization under this section for each fiscal
year shall be determined by applying the administrative cost
percentage rate of the tribe or tribal organization to the
aggregate of the Bureau elementary and secondary functions operated
by the tribe or tribal organization for which funds are received
from or through the Bureau.
``(2) Direct cost base funds.--The Secretary shall--
``(A) reduce the amount of the grant determined under
paragraph (1) to the extent that payments for administrative
costs are actually received by an Indian tribe or tribal
organization under any Federal education program included in
the direct cost base of the tribe or tribal organization; and
``(B) take such actions as may be necessary to be
reimbursed by any other department or agency of the Federal
Government for the portion of grants made under this section
for the costs of administering any program for Indians that is
funded by appropriations made to such other department or
agency.
``(d) Administrative Cost Percentage Rate.--
``(1) In general.--For purposes of this section, the
administrative cost percentage rate for a contract or grant school
for a fiscal year is equal to the percentage determined by
dividing--
``(A) the sum of--
``(i) the amount equal to--
``(I) the direct cost base of the tribe or tribal
organization for the fiscal year, multiplied by
``(II) the minimum base rate; plus
``(ii) the amount equal to--
``(I) the standard direct cost base; multiplied by
``(II) the maximum base rate; by
``(B) the sum of--
``(i) the direct cost base of the tribe or tribal
organization for the fiscal year; plus
``(ii) the standard direct cost base.
``(2) Rounding.--The administrative cost percentage rate shall
be determined to the \1/100\ of a decimal point.
``(3) Applicability.--The administrative cost percentage rate
determined under this subsection shall not apply to other programs
operated by the tribe or tribal organization.
``(e) Combining Funds.--
``(1) In general.--Funds received by a tribe or contract or
grant school as grants under this section for tribal elementary or
secondary educational programs may be combined by the tribe or
contract or grant school into a single administrative cost account
without the necessity of maintaining separate funding source
accounting.
``(2) Indirect cost funds.--Indirect cost funds for programs at
the school which share common administrative services with tribal
elementary or secondary educational programs may be included in the
administrative cost account described in paragraph (1).
``(f) Availability of Funds.--Funds received as grants under this
section with respect to tribal elementary or secondary education
programs shall remain available to the contract or grant school without
fiscal year limitation and without diminishing the amount of any grants
otherwise payable to the school under this section for any fiscal year
beginning after the fiscal year for which the grant is provided.
``(g) Treatment of Funds.--Funds received as grants under this
section for Bureau-funded programs operated by a tribe or tribal
organization under a contract or agreement shall not be taken into
consideration for purposes of indirect cost underrecovery and
overrecovery determinations by any Federal agency for any other funds,
from whatever source derived.
``(h) Treatment of Entity Operating Other Programs.--In applying
this section and section 106 of the Indian Self-Determination and
Education Assistance Act with respect to an Indian tribe or tribal
organization that--
``(1) receives funds under this section for administrative
costs incurred in operating a contract or grant school or a school
operated under the Tribally Controlled Schools Act of 1988; and
``(2) operates one or more other programs under a contract or
grant provided under the Indian Self-Determination and Education
Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal organization
is provided with the full amount of the administrative costs that are
associated with operating the contract or grant school, and of the
indirect costs, that are associated with all of such other programs,
except that funds appropriated for implementation of this section shall
be used only to supply the amount of the grant required to be provided
by this section.
``(i) Studies for Determination of Factors Affecting Costs; Base
Rates Limits; Standard Direct Cost Base; Report to Congress.--
``(1) Studies.--Not later than 120 days after the date of
enactment of the Native American Education Improvement Act of 2001,
the Director of the Office of Indian Education Programs shall--
``(A) conduct such studies as may be needed to establish an
empirical basis for determining relevant factors substantially
affecting required administrative costs of tribal elementary
and secondary education programs, using the formula set forth
in subsection (c); and
``(B) conduct a study to determine--
``(i) a maximum base rate which ensures that the amount of
the grants provided under this section will provide adequate
(but not excessive) funding of the administrative costs of the
smallest tribal elementary or secondary educational programs;
``(ii) a minimum base rate which ensures that the amount of
the grants provided under this section will provide adequate
(but not excessive) funding of the administrative costs of the
largest tribal elementary or secondary educational programs;
and
``(iii) a standard direct cost base which is the aggregate
direct cost funding level for which the percentage determined
under subsection (d) will--
``(I) be equal to the median between the maximum base
rate and the minimum base rate; and
``(II) ensure that the amount of the grants provided
under this section will provide adequate (but not
excessive) funding of the administrative costs of tribal
elementary or secondary educational programs closest to the
size of the program.
``(2) Guidelines.--The studies required under paragraph (1)
shall--
``(A) be conducted in full consultation (in accordance with
section 1131) with--
``(i) the tribes and tribal organizations that are
affected by the application of the formula set forth in
subsection (c); and
``(ii) all national and regional Indian organizations
of which such tribes and tribal organizations are typically
members;
``(B) be conducted onsite with a representative statistical
sample of the tribal elementary or secondary educational
programs under a contract entered into with a nationally
reputable public accounting and business consulting firm;
``(C) take into account the availability of skilled labor
commodities, business and automatic data processing services,
related Indian preference and Indian control of education
requirements, and any other market factors found to
substantially affect the administrative costs and efficiency of
each such tribal elementary or secondary educational program
studied in order to ensure that all required administrative
activities can reasonably be delivered in a cost effective
manner for each such program, given an administrative cost
allowance generated by the values, percentages, or other
factors found in the studies to be relevant in such formula;
``(D) identify, and quantify in terms of percentages of
direct program costs, any general factors arising from
geographic isolation, or numbers of programs administered,
independent of program size factors used to compute a base
administrative cost percentage in such formula; and
``(E) identify any other incremental cost factors
substantially affecting the costs of required administrative
cost functions at any of the tribal elementary or secondary
educational programs studied and determine whether the factors
are of general applicability to other such programs, and (if
so) how the factors may effectively be incorporated into such
formula.
``(3) Consultation with inspector general.--In carrying out the
studies required under this subsection, the Director shall obtain
the input of, and afford an opportunity to participate to, the
Inspector General of the Department of the Interior.
``(4) Consideration of delivery of administrative services.--
Determinations described in paragraph (2)(C) shall be based on what
is practicable at each location studied, given prudent management
practice, irrespective of whether required administrative services
were actually or fully delivered at these sites, or whether other
services were delivered instead, during the period of the study.
``(5) Report.--Upon completion of the studies conducted under
paragraph (1), the Director shall submit to Congress a report on
the findings of the studies, together with determinations based
upon such studies that would affect the definitions set forth under
subsection (e) that are used in the formula set forth in subsection
(c).
``(6) Projection of costs.--The Secretary shall include in the
Bureau's justification for each appropriations request beginning in
the first fiscal year after the completion of the studies conducted
under paragraph (1), a projection of the overall costs associated
with the formula set forth in subsection (c) for all tribal
elementary or secondary education programs which the Secretary
expects to be funded in the fiscal year for which the
appropriations are sought.
``(7) Determination of program size.--For purposes of this
subsection, the size of tribal elementary or secondary educational
programs is determined by the aggregate direct cost program funding
level for all Bureau-funded programs which share common
administrative cost functions.
``(j) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
carry out this section such sums as may be necessary.
``(2) Reductions.--If the total amount of funds necessary to
provide grants to tribes and tribal organizations in the amounts
determined under subsection (c) for a fiscal year exceeds the
amount of funds appropriated to carry out this section for such
fiscal year, the Secretary shall reduce the amount of each grant
determined under subsection (c) for such fiscal year by an amount
that bears the same relationship to such excess as the amount of
such grants determined under subsection (c) bears to the total of
all grants determined under subsection (c) section for all tribes
and tribal organizations for such fiscal year.
``(k) Applicability to Schools Operating Under Tribally Controlled
Schools Act of 1988.--The provisions of this section shall apply to
schools operating under the Tribally Controlled Schools Act of 1988.
``(l) Administrative Cost Grant Budget Requests.--
``(1) In general.--Beginning with President's annual budget
request under section 1105 of title 31, United States Code for
fiscal year 2002, and with respect to each succeeding budget
request, at the discretion of the Secretary, the Secretary shall
submit to the appropriate committees of Congress information and
funding requests for the full funding of administrative costs
grants required to be paid under this section.
``(2) Requirements.--
``(A) Funding for new conversions to contract or grant
school operations.--With respect to a budget request under
paragraph (1), the amount required to provide full funding for
an administrative cost grant for each tribe or tribal
organization expected to begin operation of a Bureau-funded
school as contract or grant school in the academic year funded
by such annual budget request, the amount so required shall not
be less than 10 percent of the amount required for subparagraph
(B).
``(B) Funding for continuing contract and grant school
operations.--With respect to a budget request under paragraph
(1), the amount required to provide full funding for an
administrative cost grant for each tribe or tribal organization
operating a contract or grant school at the time the annual
budget request is submitted, which amount shall include the
amount of funds required to provide full funding for an
administrative cost grant for each tribe or tribal organization
which began operation of a contract or grant school with
administrative cost grant funds supplied from the amount
described in subparagraph (A).
``SEC. 1129. DIVISION OF BUDGET ANALYSIS.
``(a) Establishment.--Not later than 1 year after the date of
enactment of the Native American Education Improvement Act of 2001, the
Secretary shall establish within the Office of Indian Education
Programs a Division of Budget Analysis (hereafter in this section
referred to as the `Division'). Such Division shall be under the direct
supervision and control of the Director of the Office.
``(b) Functions.--In consultation with the tribal governing bodies
and tribal school boards, the Director of the Office, through the
Division, shall conduct studies, surveys, or other activities to gather
demographic information on Bureau-funded schools and project the amount
necessary to provide Indian students in such schools the educational
program set forth in this part.
``(c) Annual Reports.--Not later than the date on which the
Assistant Secretary for Indian Affairs makes the annual budget
submission, for each fiscal year after the date of enactment of the
Native American Education Improvement Act of 2001, the Director of the
Office shall submit to the appropriate committees of Congress
(including the Appropriations committees), all Bureau-funded schools,
and the tribal governing bodies of such schools, a report that
contains--
``(1) projections, based upon the information gathered pursuant
to subsection (b) and any other relevant information, of amounts
necessary to provide Indian students in Bureau-funded schools the
educational program set forth in this part;
``(2) a description of the methods and formulas used to
calculate the amounts projected pursuant to paragraph (1); and
``(3) such other information as the Director of the Office
considers appropriate.
``(d) Use of Reports.--The Director of the Office and the Assistant
Secretary for Indian Affairs shall use the annual report required by
subsection (c) when preparing annual budget submissions.
``SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.
``(a) Establishment of System and Forward Funding.--
``(1) In general.--The Secretary shall establish, by regulation
adopted in accordance with section 1136, a system for the direct
funding and support of all Bureau-funded schools. Such system shall
allot funds in accordance with section 1127. All amounts
appropriated for distribution in accordance with this section shall
be made available in accordance with paragraph (2).
``(2) Timing for use of funds.--
``(A) Availability.--For the purposes of affording adequate
notice of funding available pursuant to the allotments made
under section 1127 and the allotments of funds for operation
and maintenance of facilities, amounts appropriated in an
appropriations Act for any fiscal year for such allotments--
``(i) shall become available for obligation by the
affected schools on July 1 of the fiscal year for which
such allotments are appropriated without further action by
the Secretary; and
``(ii) shall remain available for obligation through
the succeeding fiscal year.
``(B) Publications.--The Secretary shall, on the basis of
the amounts appropriated as described in this paragraph--
``(i) publish, not later than July 1 of the fiscal year
for which the amounts are appropriated, information
indicating the amount of the allotments to be made to each
affected school under section 1127, of 80 percent of such
appropriated amounts; and
``(ii) publish, not later than September 30 of such
fiscal year, information indicating the amount of the
allotments to be made under section 1127, from the
remaining 20 percent of such appropriated amounts, adjusted
to reflect the actual student attendance.
``(C) Overpayments.--Any overpayments made to tribal
schools shall be returned to the Secretary not later than 30
days after the final determination that the school was overpaid
pursuant to this section.
``(3) Limitation.--
``(A) Expenditures.--Notwithstanding any other provision of
law (including a regulation), the supervisor of a Bureau-
operated school may expend an aggregate of not more than
$50,000 of the amount allotted to the school under section 1127
to acquire materials, supplies, equipment, operation services,
maintenance services, and other services for the school, and
amounts received as operations and maintenance funds, funds
received from the Department of Education, or funds received
from other Federal sources, without competitive bidding if--
``(i) the cost for any single item acquired does not
exceed $15,000;
``(ii) the school board approves the acquisition;
``(iii) the supervisor certifies that the cost is fair
and reasonable;
``(iv) the documents relating to the acquisition
executed by the supervisor of the school or other school
staff cite this paragraph as authority for the acquisition;
and
``(v) the acquisition transaction is documented in a
journal maintained at the school that clearly identifies
when the transaction occurred, the item that was acquired
and from whom, the price paid, the quantities acquired, and
any other information the supervisor or the school board
considers to be relevant.
``(B) Notice.--Not later than 6 months after the date of
enactment of the Native American Education Improvement Act of
2001, the Secretary shall send notice of the provisions of this
paragraph to each supervisor of a Bureau school and associated
school board chairperson, the education line officer of each
agency and area, and the Bureau division in charge of
procurement, at both the local and national levels.
``(C) Application and guidelines.--The Director of the
Office shall be responsible for--
``(i) determining the application of this paragraph,
including the authorization of specific individuals to
carry out this paragraph;
``(ii) ensuring that there is at least 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 than 7 percent of the
amount of funds available for allotment under such section during
the preceding fiscal year--
``(A) to fund allotments under section 1127, the Secretary,
notwithstanding any other law, may use--
``(i) funds appropriated for the operation of any
Bureau-funded school that is closed or consolidated; and
``(ii) funds appropriated for any program that has been
curtailed at any Bureau school; and
``(B) the Secretary may waive the application of the
provisions of section 1121(h) with respect to the closure or
consolidation of a school, or the curtailment of a program at a
school, during such fiscal year if the funds described in
clauses (i) and (ii) of subparagraph (A) with respect to such
school are used to fund allotments made under section 1127 for
such fiscal year.
``(b) Local Financial Plans for Expenditure of Funds.--
``(1) Plan required.--Each Bureau-operated school that receives
an allotment under section 1127 shall prepare a local financial
plan that specifies the manner in which the school will expend the
funds made available under the allotment and ensures that the
school will meet the accreditation requirements or standards for
the school pursuant to section 1121.
``(2) Requirement.--A local financial plan under paragraph (1)
shall comply with all applicable Federal and tribal laws.
``(3) Preparation and revision.--
``(A) In general.--The financial plan for a school under
subparagraph (A) shall be prepared by the supervisor of the
school in active consultation with the local school board for
the school.
``(B) Authority of school board.--The local school board
for each school shall have the authority to ratify, reject, or
amend such financial plan and, at the initiative of the local
school board or in response to the supervisor of the school, to
revise such financial plan to meet needs not foreseen at the
time of preparation of the financial plan.
``(4) Role of supervisor.--The supervisor of the school--
``(A) shall implement the decisions of the school board
relating to the financial plan under paragraph (1);
``(B) shall provide the appropriate local union
representative of the education employees of the school with
copies of proposed financial plans relating to the school and
all modifications and proposed modifications to the plans, and
at the same time submit such copies to the local school board;
and
``(C) may appeal any such action of the local school board
to the appropriate education line officer of the Bureau agency
by filing a written statement describing the action and the
reasons the supervisor believes such action should be
overturned.
``(5) Statements.--
``(A) In general.--A copy of each statement filed under
paragraph (4)(C) shall be submitted to the local school board
and such board shall be afforded an opportunity to respond, in
writing, to such appeal.
``(B) Overturned actions.--After reviewing such written
appeal and response, the appropriate education line officer
may, for good cause, overturn the action of the local school
board.
``(C) Transmission of determination.--The appropriate
education line officer shall transmit the determination of such
appeal in the form of a written opinion to such board and to
such supervisor identifying the reasons for overturning such
action.
``(c) Tribal Division of Education, Self-Determination Grant and
Contract Funds.--The Secretary may approve applications for funding
tribal divisions of education and developing tribal codes of education,
from funds made available pursuant to section 103(a) of the Indian
Self-Determination and Education Assistance Act.
``(d) Technical Assistance and Training.--In carrying out this
section, a local school board may request technical assistance and
training from the Secretary, and the Secretary shall, to the maximum
extent practicable, provide those services and make appropriate
provisions in the budget of the Office for the provision of those
services.
``(e) Summer Program of Academic and Support Services.--
``(1) Plan.--
``(A) In general.--A financial plan under subsection (b)
for a school may include, at the discretion of the local
administrator and the school board of such school, a provision
for a summer program of academic and support services for
students of the school.
``(B) Prevention activities.--Any such program may include
activities related to the prevention of alcohol and substance
abuse.
``(C) Summer use.--The Assistant Secretary for Indian
Affairs shall provide for the use of any such school facility
during any summer in which such use is requested.
``(2) Use of other funds.--Notwithstanding any other provision
of law, funds authorized under the Act of April 16, 1934, and this
Act may be used to augment the services provided in each summer
program at the option, and under the control, of the tribe or
Indian controlled school receiving such funds.
``(3) Technical assistance and program coordination.--The
Assistant Secretary for Indian Affairs, acting through the Director
of the Office, shall--
``(A) provide technical assistance and coordination for any
program described in paragraph (1); and
``(B) to the extent practicable, encourage the coordination
of such programs with any other summer programs that might
benefit Indian youth, regardless of the funding source or
administrative entity of any such program.
``(f) Cooperative Agreements.--
``(1) Implementation.--
``(A) In general.--From funds allotted to a Bureau school
under section 1127, the Secretary shall, if specifically
requested by the appropriate tribal governing body, implement a
cooperative agreement that is entered into between the tribe,
the Bureau, the local school board, and a local public school
district that meets the requirements of paragraph (2) and
involves the school.
``(B) Terms.--The tribe, the Bureau, the school board, and
the local public school district shall determine the terms of
an agreement entered into under subparagraph (A).
``(2) Coordination provisions.--An agreement under paragraph
(1) may, with respect to the Bureau school and schools in the
school district involved, encompass coordination of all or any part
of the following:
``(A) The academic program and curriculum, unless the
Bureau school is accredited by a State or regional accrediting
entity and would not continue to be so accredited if the
agreement encompassed the program and curriculum.
``(B) Support services, including procurement and
facilities maintenance.
``(C) Transportation.
``(3) Equal benefit and burden.--
``(A) In general.--Each agreement entered into under
paragraph (1) shall confer a benefit upon the Bureau school
commensurate with the burden assumed by the school.
``(B) Limitation.--Subparagraph (A) shall not be construed
to require equal expenditures, or an exchange of similar
services, by the Bureau school and schools in the school
district.
``(g) Product or Result of Student Projects.--Notwithstanding any
other provision of law, in a case in which there is agreement on action
between the superintendent and the school board of a Bureau-funded
school, the product or result of a project conducted in whole or in
major part by a student may be given to that student upon the
completion of such project.
``(h) Matching Fund Requirements.--
``(1) Not considered federal funds.--Notwithstanding any other
provision of law, funds received by a Bureau-funded school under
this title for education-related activities (not including funds
for construction, maintenance, and facilities improvement or
repair) shall not be considered Federal funds for the purposes of a
matching funds requirement for any Federal program.
``(2) Limitation.--In considering an application from a Bureau-
funded school for participation in a program or project that
requires matching funds, the entity administering such program or
project or awarding such grant shall not give positive or negative
weight to such application based solely on the provisions of
paragraph (1).
``SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.
``(a) Facilitation of Indian Control.--It shall be the policy of
the United States acting through the Secretary, in carrying out the
functions of the Bureau, to facilitate Indian control of Indian affairs
in all matters relating to education.
``(b) Consultation With Tribes.--
``(1) In general.--All actions under this Act shall be done
with active consultation with tribes. The United States acting
through the Secretary and tribes shall work in a government-to-
government relationship to ensure quality education for all tribal
members.
``(2) Requirements.--
``(A) Definition of consultation.--In this subsection, the
term `consultation' means a process involving the open
discussion and joint deliberation of all options with respect
to potential issues or changes between the Bureau and all
interested parties.
``(B) Discussion and joint deliberation.--During
discussions and joint deliberations, interested parties
(including tribes and school officials) shall be given an
opportunity--
``(i) to present issues (including proposals regarding
changes in current practices or programs) that will be
considered for future action by the Secretary; and
``(ii) to participate and discuss the options
presented, or to present alternatives, with the views and
concerns of the interested parties given effect unless the
Secretary determines, from information available from or
presented by the interested parties during 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. INDIAN EDUCATION PERSONNEL.
``(a) In General.--Chapter 51, subchapter III of chapter 53, and
chapter 63 of title 5, United States Code, relating to classification,
pay and leave, respectively, and the sections of such title relating to
the appointment, promotion, hours of work, and removal of civil service
employees, shall not apply to educators or to education positions (as
defined in subsection (p)).
``(b) Regulations.--Not later than 60 days after the date of
enactment of the Native American Education Improvement Act of 2001, the
Secretary shall prescribe regulations to carry out this section. Such
regulations shall provide for--
``(1) the establishment of education positions;
``(2) the establishment of qualifications for educators and
education personnel;
``(3) the fixing of basic compensation for educators and
education positions;
``(4) the appointment of educators;
``(5) the discharge of educators;
``(6) the entitlement of educators to compensation;
``(7) the payment of compensation to educators;
``(8) the conditions of employment of educators;
``(9) the leave system for educators;
``(10) the annual leave and sick leave for educators;
``(11) the length of the school year applicable to education
positions described in subsection (a); and
``(12) such additional matters as may be appropriate.
``(c) Qualifications of Educators.--
``(1) Requirements.--In prescribing regulations to govern the
qualifications of educators, the Secretary shall require that--
``(A) lists of qualified and interviewed applicants for
education positions be maintained in each agency and area
office of the Bureau from among individuals who have applied at
the agency or area level for an education position or who have
applied at the national level and have indicated in such
application an interest in working in certain areas or
agencies;
``(B) a local school board shall have the authority to
waive on a case-by-case basis, any formal education or degree
qualifications established by regulation pursuant to subsection
(b)(2), in order for a tribal member to be hired in an
education position to teach courses on tribal culture and
language and that subject to subsection (e)(2), a determination
by a school board that such a person be hired shall be
instituted by the supervisor of the school involved; and
``(C) that it shall not be a prerequisite to the employment
of an individual in an education position at the local level
that--
``(i) such individual's name appear on a list
maintained pursuant to subparagraph (A); or
``(ii) such individual have applied at the national
level for an education position.
``(2) Exception for certain temporary employment.--The
Secretary may authorize the temporary employment in an education
position of an individual who has not met the certification
standards established pursuant to regulations if the Secretary
determines that failure to do so would result in that position
remaining vacant.
``(d) Hiring of Educators.--
``(1) Requirements.--In prescribing regulations to govern the
appointment of educators, the Secretary shall require--
``(A)(i)(I) that educators employed in a Bureau school
(other than the supervisor of the school) shall be hired by the
supervisor of the school; and
``(II) in a case in which there are no qualified applicants
available to fill a vacancy at a Bureau school, the supervisor
may consult a list maintained pursuant to subsection (c)(1)(A);
``(ii) each supervisor of a Bureau school shall be hired by
the education line officer of the agency office of the Bureau
for the jurisdiction in which the school is located;
``(iii) each educator employed in an agency office of the
Bureau shall be hired by the superintendent for education of
the agency office; and
``(iv) each education line officer and educator employed in
the office of the Director of the Office shall be hired by the
Director;
``(B)(i) before an individual is employed in an education
position in a Bureau school by the supervisor of the school
(or, with respect to the position of supervisor, by the
appropriate agency education line officer), the local school
board for the school shall be consulted; and
``(ii) that a determination by such school board, as
evidenced by school board records, that such individual should
or should not be so employed shall be instituted by the
supervisor (or with respect to the position of supervisor, by
the superintendent for education of the agency office);
``(C)(i) before an individual is employed in an education
position in an agency or area office of the Bureau, the
appropriate agency school board shall be consulted; and
``(ii) a determination by such school board, as evidenced
by school board records, that such individual should or should
not be employed shall be instituted by the superintendent for
education of the agency office; and
``(D) all employment decisions or actions be in compliance
with all applicable Federal, State, and tribal laws.
``(2) Information regarding application at national level.--
``(A) In general.--Any individual who applies at the local
level for an education position shall state on such
individual's application whether or not such individual has
applied at the national level for an education position in the
Bureau.
``(B) Determination of accuracy.--If such individual is
employed at the local level, such individual's name shall be
immediately forwarded to the Secretary, who shall, as soon as
practicable but in no event in more than 30 days, ascertain the
accuracy of the statement made by such individual pursuant to
subparagraph (A).
``(C) False statements.--Notwithstanding subsection (e), if
the individual's statement is found to have been false, such
individual, at the Secretary's discretion, may be disciplined
or discharged.
``(D) Conditional appointment for national provision.--If
the individual has applied at the national level for an
education position in the Bureau, the appointment of such
individual at the local level shall be conditional for a period
of 90 days, during which period the Secretary may appoint a
more qualified individual (as determined by the Secretary) from
the list maintained at the national level pursuant to
subsection (c)(1)(A)(ii) to the position to which such
individual was appointed.
``(3) Statutory construction.--Except as expressly provided,
nothing in this section shall be construed as conferring upon local
school boards authority over, or control of, educators at Bureau-
funded schools or the authority to issue management decisions.
``(4) Appeals.--
``(A) By supervisor.--
``(i) In general.--The supervisor of a school may
appeal to the appropriate agency education line officer any
determination by the local school board for the school that
an individual be employed, or not be employed, in an
education position in the school (other than that of
supervisor) by filing a written statement describing the
determination and the reasons the supervisor believes such
determination should be overturned.
``(ii) Action by board.--A copy of such statement shall
be submitted to the local school board and such board shall
be afforded an opportunity to respond, in writing, to such
appeal.
``(iii) Overturning of determination.--After reviewing
such written appeal and response, the education line
officer may, for good cause, overturn the determination of
the local school board.
``(iv) Transmission of determination.--The education
line officer shall transmit the determination of such
appeal in the form of a written opinion to such board and
to such supervisor identifying the reasons for overturning
such determination.
``(B) By education line officer.--
``(i) In general.--The education line officer of an
agency office of the Bureau may appeal to the Director of
the Office any determination by the local school board for
the school that an individual be employed, or not be
employed, as the supervisor of a school by filing a written
statement describing the determination and the reasons the
supervisor believes such determination should be
overturned.
``(ii) Action by board.--A copy of such statement shall
be submitted to the local school board and such board shall
be afforded an opportunity to respond, in writing, to such
appeal.
``(iii) Overturning of determination.--After reviewing
such written appeal and response, the Director may, for
good cause, overturn the determination of the local school
board.
``(iv) Transmission of determination.--The Director
shall transmit the determination of such appeal in the form
of a written opinion to such board and to such education
line officer identifying the reasons for overturning such
determination.
``(5) Other appeals.--
``(A) In general.--The education line officer of an agency
office of the Bureau may appeal to the Director of the Office
any determination by the agency school board that an individual
be employed, or not be employed, in an education position in
such agency office by filing a written statement describing the
determination and the reasons the supervisor believes such
determination should be overturned.
``(B) Action by board.--A copy of such statement shall be
submitted to the agency school board and such board shall be
afforded an opportunity to respond, in writing, to such appeal.
``(C) Overturning of determination.--After reviewing such
written appeal and response, the Director may, for good cause,
overturn the determination of the agency school board.
``(D) Transmission of determination.--The Director shall
transmit the determination of such appeal in the form of a
written opinion to such board and to such education line
officer identifying the reasons for overturning such
determination.
``(e) Discharge and Conditions of Employment of Educators.--
``(1) Regulations.--In promulgating regulations to govern the
discharge and conditions of employment of educators, the Secretary
shall require--
``(A) that procedures shall be established for the rapid
and equitable resolution of grievances of educators;
``(B) that no educator may be discharged without notice of
the reasons for the discharge and an opportunity for a hearing
under procedures that comport with the requirements of due
process; and
``(C) that each educator employed in a Bureau school shall
be notified 30 days prior to the end of an academic year
whether the employment contract of the individual will be
renewed for the following year.
``(2) Procedures for discharge.--
``(A) Determinations.--
``(i) In general.--Except as provided in clause (iii),
the supervisor of a Bureau school may discharge (subject to
procedures established under paragraph (1)(B)) for cause
(as determined under regulations prescribed by the
Secretary) any educator employed in such school.
``(ii) Notification of board.--On giving notice to an
educator of the supervisor's intention to discharge the
educator, the supervisor shall immediately notify the local
school board of the proposed discharge.
``(iii) Determination by board.--If the local school
board determines that such educator shall not be
discharged, that determination shall be followed by the
supervisor.
``(B) Appeals.--
``(i) In general.--The supervisor shall have the right
to appeal to the education line officer of the appropriate
agency office of the Bureau a determination by a local
school board under subparagraph (A)(iii), as evidenced by
school board records, not to discharge an educator.
``(ii) Decision of agency education line officer.--Upon
hearing such an appeal, the agency education line officer
may, for good cause, issue a decision overturning the
determination of the local school board with respect to the
employment of such individual.
``(iii) Form of decision.--The education line officer
shall make the decision in writing and submit the decision
to the local school board.
``(3) Recommendations of school boards for discharge.--Each
local school board for a Bureau school shall have the right--
``(A) to recommend to the supervisor that an educator
employed in the school be discharged; and
``(B) to recommend to the education line officer of the
appropriate agency office of the Bureau and to the Director of
the Office, that the supervisor of the school be discharged.
``(f) Applicability of Indian Preference Laws.--
``(1) Applicability.--
``(A) In general.--Notwithstanding any provision of the
Indian preference laws, such laws shall not apply in the case
of any personnel action carried out under this section with
respect to an applicant or employee not entitled to an Indian
preference if each tribal organization concerned--
``(i) grants a written waiver of the application of
those laws with respect to the personnel action; and
``(ii) states that the waiver is necessary.
``(B) No effect on responsibility of bureau.--This
paragraph shall not be construed to relieve the responsibility
of the Bureau to issue timely and adequate announcements and
advertisements concerning any such personnel action if such
action is intended to fill a vacancy (no matter how such
vacancy is created).
``(2) Definitions.--In this subsection:
``(A) Indian preference laws.--
``(i) In general.--The term `Indian preference laws'
means section 12 of the Act of June 18, 1934 (48 Stat. 986,
chapter 576) or any other provision of law granting a
preference to Indians in promotions and other personnel
actions.
``(ii) Exclusion.--The term `Indian preference laws'
does not include section 7(b) of the Indian Self-
Determination and Education Assistance Act.
``(B) Tribal organization.--The term `tribal organization'
means--
``(i) the recognized governing body of any Indian
tribe, band, nation, pueblo, or other organized community,
including a Native village (as defined in section 3(c) of
the Alaska Native Claims Settlement Act); or
``(ii) in connection with any personnel action referred
to in this subsection, any local school board to which the
governing body has delegated the authority to grant a
waiver under this subsection with respect to a personnel
action.
``(g) Compensation or Annual Salary.--
``(1) In general.--
``(A) Compensation for educators and education positions.--
Except as otherwise provided in this section, the Secretary
shall establish the compensation or annual salary rate for
educators and education positions--
``(i) at rates in effect under the General Schedule for
individuals with comparable qualifications, and holding
comparable positions, to whom chapter 51 of title 5, United
States Code, is applicable; or
``(ii) on the basis of the Federal Wage System schedule
in effect for the locality involved, and for the comparable
positions, at the rates of compensation in effect for the
senior executive service.
``(B) Compensation or salary for teachers and counselors.--
``(i) In general.--The Secretary shall establish the
rate of compensation, or annual salary rate, for the
positions of teachers and counselors (including dormitory
counselors and home-living counselors) at the rate of
compensation applicable (on the date of enactment of the
Native American Education Improvement Act of 2001 and
thereafter) for comparable positions in the overseas
schools under the Defense Department Overseas Teachers Pay
and Personnel Practices Act.
``(ii) Essential provisions.--The Secretary shall allow
the local school boards involved authority to implement
only the aspects of the Defense Department Overseas
Teachers Pay and Personnel Practices Act pay provisions
that are considered essential for recruitment and retention
of teachers and counselors. Implementation of such
provisions shall not be construed to require the
implementation of that entire Act.
``(C) Rates for new hires.--
``(i) In general.--Beginning with the first fiscal year
following the date of enactment of the Native American
Education Improvement Act of 2001, each local school board
of a Bureau school may establish a rate of compensation or
annual salary rate described in clause (ii) for teachers
and counselors (including academic counselors) who are new
hires at the school and who had not worked at the school,
as of the first day of such fiscal year.
``(ii) Consistent rates.--The rates established under
clause (i) shall be consistent with the rates paid for
individuals in the same positions, with the same tenure and
training, as the teachers and counselors, in any other
school within whose boundaries the Bureau school is
located.
``(iii) Decreases.--In a case in which the
establishment of rates under clause (i) causes a reduction
in compensation at a school from the rate of compensation
that was in effect for the first fiscal year following the
date of enactment of the Native American Education
Improvement Act of 2001, the new rates of compensation may
be applied to the compensation of employees of the school
who worked at the school as of such date of enactment by
applying those rates at each contract renewal for the
employees so that the reduction takes effect in 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
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.
``(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.--
``(1) Election of employee.--
``(A) In general.--Notwithstanding any other provision of
law, including laws relating to dual compensation, the
Secretary, at the election of the employee, shall prorate the
salary of an employee employed in an education position for the
academic school year over the entire 12-month period.
``(B) Election.--Each educator employed for the academic
school year shall annually elect to be paid on a 12-month basis
or for those months while school is in session.
``(C) No loss of pay or benefits.--No educator shall suffer
a loss of pay or benefits, including benefits under
unemployment or other Federal or federally assisted programs,
because of such election.
``(2) Change of election.--During the course of such year the
employee may change election once.
``(3) Lump sum payment.--That portion of the employee's pay
which would be paid between academic school years may be paid in a
lump sum at the election of the employee.
``(4) Nonapplicability.--This subsection applies to those
individuals employed under the provisions of section 1132 of this
title or title 5, United States Code.
``(5) Definitions.--For purposes of this subsection, the terms
`educator' and `education position' have the meanings contained in
paragraphs (1) and (2) of subsection (o).
``(n) Extracurricular Activities.--
``(1) Stipend.--
``(A) In general.--Notwithstanding any other provision of
law, the Secretary may provide, for each Bureau area, a stipend
in lieu of overtime premium pay or compensatory time off.
``(B) Provision to employees.--Any employee of the Bureau
who performs additional activities to provide services to
students or otherwise support the school's academic and social
programs may elect to be compensated for all such work on the
basis of the stipend.
``(C) Nature of stipend.--Such stipend shall be paid as a
supplement to the employee's base pay.
``(2) Election not to receive stipend.--If an employee elects
not to be compensated through the stipend established by this
subsection, the appropriate provisions of title 5, United States
Code, shall apply.
``(3) Applicability of subsection.--This subsection applies to
all Bureau employees, regardless of whether the employee is
employed under section 1132 of this title or title 5, United States
Code.
``(o) Definitions.--In this section:
``(1) Education position.--The term `education position' means
a position in the Bureau the duties and responsibilities of which--
``(A)(i) are performed on a school year basis principally
in a Bureau school; and
``(ii) involve--
``(I) classroom or other instruction or the supervision
or direction of classroom or other instruction;
``(II) any activity (other than teaching) which
requires academic credits in educational theory and
practice equal to the academic credits in educational
theory and practice required for a bachelor's degree in
education from an accredited institution of higher
education;
``(III) any activity in or related to the field of
education notwithstanding that academic credits in
educational theory and practice are not a formal
requirement for the conduct of such activity; or
``(IV) support services at, or associated with, the
site of the school; or
``(B) are performed at the agency level of the Bureau and
involve the implementation of education-related programs other
than the position for agency superintendent for education.
``(2) Educator.--The term `educator' means an individual whose
services are required, or who is employed, in an education
position.
``(p) Covered Individuals; Election.--This section shall apply with
respect to any educator hired after November 1, 1979 (and to any
educator who elected for coverage under that provision after November
1, 1979) and to the position in which such individual is employed. The
enactment of this section shall not affect the continued employment of
an individual employed on October 31, 1979, in an education position,
or such person's right to receive the compensation attached to such
position.
``(q) Furlough Without Consent.--
``(1) In general.--An educator who was employed in an education
position on October 31, 1979, who was eligible to make an election
under subsection (p) at that time, and who did not make the
election under such subsection, may not be placed on furlough
(within the meaning of section 7511(a)(5) of title 5, United States
Code, without the consent of such educator for an aggregate of more
than 4 weeks within the same calendar year, unless--
``(A) the supervisor, with the approval of the local school
board (or of the education line officer upon appeal under
paragraph (2)), of the Bureau school at which such educator
provides services determines that a longer period of furlough
is necessary due to an insufficient amount of funds available
for personnel compensation at such school, as determined under
the financial plan process as determined under section 1129(b);
and
``(B) all educators (other than principals and clerical
employees) providing services at such Bureau school are placed
on furloughs of equal length, except that the supervisor, with
the approval of the local school board (or of the agency
education line officer upon appeal under paragraph (2)), may
continue 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
``(ii) such educators are selected based upon such
educator's qualifications after public notice of the
minimum qualifications reasonably necessary and without
discrimination as to supervisory, nonsupervisory, or other
status of the educators who apply.
``(2) Appeals.--The supervisor of a Bureau school may appeal to
the appropriate agency education line officer any refusal by the
local school board to approve any determination of the supervisor
that is described in paragraph (1)(A) by filing a written statement
describing the determination and the reasons the supervisor
believes such determination should be approved. A copy of such
statement shall be submitted to the local school board and such
board shall be afforded an opportunity to respond, in writing, to
such appeal. After reviewing such written appeal and response, the
education line officer may, for good cause, approve the
determination of the supervisor. The educational line officer shall
transmit the determination of such appeal in the form of a written
opinion to such local school board and to the supervisor
identifying the reasons for approving such determination.
``(r) Stipends.--The Secretary is authorized to provide annual
stipends to teachers who become certified by the National Board of
Professional Teaching Standards, the National Council on Teacher
Quality, or other nationally recognized certification or credentialing
organizations.
``SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.
``(a) In General.--Not later than 12 months after the date of
enactment of the Native American Education Improvement Act of 2001, the
Secretary shall update the computerized management information system
within the Office. The information to be updated shall include
information regarding--
``(1) student enrollment;
``(2) curricula;
``(3) staffing;
``(4) facilities;
``(5) community demographics;
``(6) student assessment information;
``(7) information on the administrative and program costs
attributable to each Bureau program, divided into discrete
elements;
``(8) relevant reports;
``(9) personnel records;
``(10) finance and payroll; and
``(11) such other items as the Secretary determines to be
appropriate.
``(b) Implementation of System.--Not later than July 1, 2003, the
Secretary shall complete the implementation of the updated computerized
management information system at each Bureau field office and Bureau-
funded school.
``SEC. 1134. RECRUITMENT OF INDIAN EDUCATORS.
``The Secretary shall institute a policy for the recruitment of
qualified Indian educators and a detailed plan to promote employees
from within the Bureau. Such plan shall include opportunities for
acquiring work experience prior to actual work assignment.
``SEC. 1135. ANNUAL REPORT; AUDITS.
``(a) Annual Reports.--The Secretary shall submit to each
appropriate committee of Congress, all Bureau-funded schools, and the
tribal governing bodies of such schools, a detailed annual report on
the state of education within the Bureau, and any problems encountered
in Indian education during the period covered by the report, that
includes--
``(1) suggestions for the improvement of the Bureau educational
system and for increasing tribal or local Indian control of such
system; and
``(2) information on the status of tribally controlled
community colleges.
``(b) Budget Request.--The annual budget request for the education
programs of the Bureau, as submitted as part of the President's next
annual budget request under section 1105 of title 31, United States
Code, shall include the plans required by sections 1121(c), 1122(c),
and 1124(c).
``(c) Financial and Compliance Audits.--The Inspector General of
the Department of the Interior shall establish a system to ensure that
financial and compliance audits, based upon the extent to which a
school described in subsection (a) has complied with the local
financial plan under section 1130, are conducted of each Bureau-
operated school at least once every 3 years.
``(d) Administrative Evaluation of Schools.--The Director shall, at
least once every 3 to 5 years, conduct a comprehensive evaluation of
Bureau-operated schools. Such evaluation shall be in addition to any
other program review or evaluation that may be required under Federal
law.
``SEC. 1136. RIGHTS OF INDIAN STUDENTS.
``The Secretary shall prescribe such rules and regulations as are
necessary to ensure the constitutional and civil rights of Indian
students attending Bureau-funded schools, including such students'
rights to--
``(1) privacy under the laws of the United States;
``(2) freedom of religion and expression; and
``(3) due process in connection with disciplinary actions,
suspensions, and expulsions.
``SEC. 1137. REGULATIONS.
``(a) Promulgation.--
``(1) In general.--The Secretary may promulgate only such
regulations--
``(A) as are necessary to ensure compliance with the
specific provisions of this part; and
``(B) as the Secretary is authorized to promulgate pursuant
to section 5211 of the Tribally Controlled Schools Act of 1988
(25 U.S.C. 2510).
``(2) Publication.--In promulgating the regulations, the
Secretary shall--
``(A) publish proposed regulations in the Federal Register;
and
``(B) provide a period of not less than 120 days for public
comment and consultation on the regulations.
``(3) Citation.--The regulations shall contain, immediately
following each regulatory section, a citation to any statutory
provision providing authority to promulgate such regulatory
section.
``(b) Miscellaneous.--The provisions of this Act shall supersede
any conflicting provisions of law (including any conflicting
regulations) in effect on the day before the date of enactment of this
Act and the Secretary is authorized to repeal any regulation
inconsistent with the provisions of this Act.
``SEC. 1138. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
``(a) Regional Meetings.--Prior to publishing any proposed
regulations under subsection (b)(1), and prior to establishing the
negotiated rulemaking committee under subsection (b)(3), the Secretary
shall convene regional meetings to consult with personnel of the Office
of Indian Education Programs, educators at Bureau schools, and tribal
officials, parents, teachers, administrators, and school board members
of tribes served by Bureau-funded schools to provide guidance to the
Secretary on the content of regulations authorized to be promulgated
under this part and the Tribally Controlled Schools Act of 1988.
``(b) Negotiated Rulemaking.--
``(1) In general.--Notwithstanding sections 563(a) and 565(a)
of title 5, United States Code, the Secretary shall promulgate
regulations authorized under subsection (a) and under the Tribally
Controlled Schools Act of 1988, in accordance with the negotiated
rulemaking procedures provided for under subchapter III of chapter
5 of title 5, United States Code, and shall publish final
regulations in the Federal Register.
``(2) Notification to congress.--If draft regulations
implementing this part and the Tribally Controlled Schools Act of
1988 are not promulgated in final form within 18 months after the
date of enactment of the Native American Education Improvement Act
of 2001, the Secretary shall notify the appropriate committees of
Congress of which draft regulations were not promulgated in final
form by the deadline and the reason such final regulations were not
promulgated.
``(3) Rulemaking committee.--The Secretary shall establish a
negotiated rulemaking committee to carry out this subsection. In
establishing such committee, the Secretary shall--
``(A) apply the procedures provided for under subchapter
III of chapter 5 of title 5, United States Code, in a manner
that reflects the unique government-to-government relationship
between Indian tribes and the United States;
``(B) ensure that the membership of the committee includes
only representatives of the Federal Government and of tribes
served by Bureau-funded schools;
``(C) select the tribal representatives of the committee
from among individuals nominated by the representatives of the
tribal and tribally operated schools;
``(D) ensure, to the maximum extent possible, that the
tribal representative membership on the committee reflects the
proportionate share of students from tribes served by the
Bureau-funded school system; and
``(E) comply with the Federal Advisory Committee Act (5
U.S.C. App.).
``(4) Special rule.--The Secretary shall carry out this section
using the general administrative funds of the Department of the
Interior. In accordance with subchapter III of chapter 5 of title
5, United States Code, and section 7(d) of the Federal Advisory
Committee Act, payment of costs associated with negotiated
rulemaking shall include the reasonable expenses of committee
members.
``(c) Application of Section.--
``(1) Supremacy of provisions.--The provisions of this section
shall supersede any conflicting regulations in effect on the day
before the date of enactment of this part, and the Secretary may
repeal any regulation that is inconsistent with the provisions of
this part.
``(2) Modifications.--The Secretary may modify regulations
promulgated under this section or the Tribally Controlled Schools
Act of 1988, only in accordance with this section.
``SEC. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.
``(a) In General.--The Secretary shall provide grants to tribes,
tribal organizations, and consortia of tribes and tribal organizations
to fund early childhood development programs that are operated by such
tribes, organizations, or consortia.
``(b) Amount of Grants.--
``(1) In general.--The total amount of the grants provided
under subsection (a) with respect to each tribe, tribal
organization, or consortium of tribes or tribal organizations for
each fiscal year shall be equal to the amount which bears the same
relationship to the total amount appropriated under the authority
of subsection (g) for such fiscal year (less amounts provided under
subsection (f)) as--
``(A) the total number of children under 6 years of age who
are members of--
``(i) such tribe;
``(ii) the tribe that authorized such tribal
organization; or
``(iii) any tribe that--
``(I) is a member of such consortium; or
``(II) authorizes any tribal organization that is a
member of such consortium; bears to
``(B) the total number of all children under 6 years of age
who are members of any tribe that--
``(i) is eligible to receive funds under subsection
(a);
``(ii) is a member of a consortium that is eligible to
receive such funds; or
``(iii) authorizes a tribal organization that is
eligible to receive such funds.
``(2) Limitation.--No grant may be provided under subsection
(a)--
``(A) to any tribe that has less than 500 members;
``(B) to any tribal organization which is authorized--
``(i) by only one tribe that has less than 500 members;
or
``(ii) by one or more tribes that have a combined total
membership of less than 500 members; or
``(C) to any consortium composed of tribes, or tribal
organizations authorized by tribes, that have a combined total
tribal membership of less than 500 members.
``(c) Application.--
``(1) In general.--A grant may be provided under subsection (a)
to a tribe, tribal organization, or consortium of tribes and tribal
organizations only if the tribe, organization, or consortium
submits to the Secretary an application for the grant at such time
and in such form as the Secretary shall prescribe.
``(2) Contents.--Applications submitted under paragraph (1)
shall set forth the early childhood development program that the
applicant desires to operate.
``(d) Requirement of Programs Funded.--The early childhood
development programs that are funded by grants provided under
subsection (a)--
``(1) shall coordinate existing programs and may provide
services that meet identified needs of parents and children under 6
years of age which are not being met by existing programs,
including--
``(A) prenatal care;
``(B) nutrition education;
``(C) health education and screening;
``(D) family literacy services;
``(E) educational testing; and
``(F) other educational services;
``(2) may include instruction in the language, art, and culture
of the tribe; and
``(3) shall provide for periodic assessment of the program.
``(e) Coordination of Family Literacy Programs.--Family literacy
programs operated under this section and other family literacy programs
operated by the Bureau of Indian Affairs shall be coordinated with
family literacy programs for Indian children under part B of title I of
the Elementary and Secondary Education Act of 1965 in order to avoid
duplication and to encourage the dissemination of information on
quality family literacy programs serving Indians.
``(f) Administrative Costs.--The Secretary shall, out of funds
appropriated under subsection (g), include in the grants provided under
subsection (a) amounts for administrative costs incurred by the tribe,
tribal organization, or consortium of tribes in establishing and
maintaining the early childhood development program.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary.
``SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.
``(a) In General.--Subject to the availability of appropriations,
the Secretary shall make grants and provide technical assistance to
tribes for the development and operation of tribal departments or
divisions of education for the purpose of planning and coordinating all
educational programs of the tribe.
``(b) Applications.--For a tribe to be eligible to receive a grant
under this section, the governing body of the tribe shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
``(c) Diversity.--The Secretary shall award grants under this
section in a manner that fosters geographic and population diversity.
``(d) Use.--Tribes that receive grants under this section shall use
the funds made available through the grants--
``(1) to facilitate tribal control in all matters relating to
the education of Indian children on reservations (and on former
Indian reservations in Oklahoma);
``(2) to provide for the development of coordinated educational
programs (including all preschool, elementary, secondary, and
higher or vocational educational programs funded by tribal,
Federal, or other sources) on reservations (and on former Indian
reservations in Oklahoma) by encouraging tribal administrative
support of all Bureau-funded educational programs as well as
encouraging tribal cooperation and coordination with entities
carrying out all educational programs receiving financial support
from other Federal agencies, State agencies, or private entities;
and
``(3) to provide for the development and enforcement of tribal
educational codes, including tribal educational policies and tribal
standards applicable to curriculum, personnel, students,
facilities, and support programs.
``(e) Priorities.--In making grants under this section, the
Secretary shall give priority to any application that--
``(1) includes--
``(A) assurances that the applicant serves 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 relating to
grants made under section 103(a) of the Indian Self-Determination and
Education Assistance Act that are in effect on the date that the tribal
governing body submits the application for the grant under subsection
(b). The Secretary shall not impose any terms, conditions, or
requirements on the provision of grants under this section that are not
specified in this section.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $2,000,000.
``SEC. 1141. DEFINITIONS.
``For the purposes of this part, unless otherwise specified:
``(1) Agency school board.--The term `agency school board'
means a body--
``(A) the members of which are appointed by all of the
school boards of the schools located within an agency,
including schools operated under contract or grant; and
``(B) the number of such members is determined by the
Secretary, in consultation with the affected tribes;
except that, in agencies serving a single school, the school board
of such school shall fulfill these duties, and in agencies having
schools or a school operated under contract or grant, 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.
``(11) Indian organization.--The term `Indian organization'
means any group, association, partnership, corporation, or other
legal entity owned or controlled by a federally recognized Indian
tribe or tribes, or a majority of whose members are members of
federally recognized tribes.
``(12) Inherently federal functions.--The term `inherently
Federal functions' means functions and responsibilities which,
under section 1126(c), are noncontractable, including--
``(A) the allocation and obligation of Federal funds and
determinations as to the amounts of expenditures;
``(B) the administration of Federal personnel laws for
Federal employees;
``(C) the administration of Federal contracting and grant
laws, including the monitoring and auditing of contracts and
grants in order to maintain the continuing trust, programmatic,
and fiscal responsibilities of the Secretary;
``(D) the conducting of administrative hearings and
deciding of administrative appeals;
``(E) the determination of the Secretary's views and
recommendations concerning administrative appeals or litigation
and the representation of the Secretary in administrative
appeals and litigation;
``(F) the issuance of Federal regulations and policies as
well as any documents published in the Federal Register;
``(G) reporting to Congress and the President;
``(H) the formulation of the Secretary's and the
President's policies and their budgetary and legislative
recommendations and views; and
``(I) the nondelegable statutory duties of the Secretary
relating to trust resources.
``(13) Local educational agency.--The term `local educational
agency' means a board of education or other legally constituted
local school authority having administrative control and direction
of free public education in a county, township, or independent or
other school district located within a State, and includes any
State agency that directly operates and maintains facilities for
providing free public education.
``(14) Local school board.--The term `local school board', when
used with respect to a Bureau school, means a body chosen in
accordance with the laws of the tribe to be served or, in the
absence of such laws, elected by the parents of the Indian children
attending the school, except that, for a school serving a
substantial number of students from different tribes--
``(A) the members of the body shall be appointed by the
tribal governing bodies of the tribes affected; and
``(B) the number of such members shall be determined by the
Secretary in consultation with the affected tribes.
``(15) Office.--The term `Office' means the Office of Indian
Education Programs within the Bureau.
``(16) Regulation.--
``(A) In general.--The term `regulation' means any part of
a statement of general or particular applicability of the
Secretary designed to carry out, interpret, or prescribe law or
policy in carrying out this Act.
``(B) Rule of construction.--Nothing in subparagraph (A) or
any other provision of this title shall be construed to
prohibit the Secretary from issuing guidance, internal
directives, or other documents similar to the documents found
in the Indian Affairs Manual of the Bureau of Indian Affairs.
``(17) Secretary.--The term `Secretary' means the Secretary of
the Interior.
``(18) Supervisor.--The term `supervisor' means the individual
in the position of ultimate authority at a Bureau school.
``(19) Tribal governing body.--The term `tribal governing body'
means, with respect to any school, the tribal governing body, or
tribal governing bodies, that represent at least 90 percent of the
students served by such school.
``(20) Tribe.--The term `tribe' means any Indian tribe, band,
nation, or other organized group or community, including an Alaska
Native Regional Corporation or Village Corporation (as defined in
or established pursuant to the Alaska Native Claims Settlement
Act), which is recognized as eligible for the special programs and
services provided by the United States to Indians because of their
status as Indians.''.
SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.
The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et
seq.) is amended by striking sections 5202 through 5212 and inserting
the following new sections:
``SEC. 5202. DECLARATION OF POLICY.
``(a) Recognition.--Congress recognizes that the Indian Self-
Determination and Education Assistance Act, which was a product of the
legitimate aspirations and a recognition of the inherent authority of
Indian nations, was and is a crucial positive step 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
``(3) that those needs may best be met through a grant process.
``(e) Federal Relations.--Congress declares a commitment to the
policies described in this section and support, to the full extent of
congressional responsibility, for Federal relations with the Indian
nations.
``(f) Termination.--Congress repudiates and rejects House
Concurrent Resolution 108 of the 83d Congress and any policy of
unilateral termination of Federal relations with any Indian nation.
``SEC. 5203. GRANTS AUTHORIZED.
``(a) In General.--
``(1) Eligibility.--The Secretary shall provide grants to
Indian tribes, and tribal organizations that--
``(A) operate contract schools under title XI of the
Education Amendments of 1978 and notify the Secretary of their
election to operate the schools with assistance under this part
rather than continuing the schools as contract schools;
``(B) operate other tribally controlled schools eligible
for assistance under this part and submit applications (which
are approved by their tribal governing bodies) to the Secretary
for such grants; or
``(C) elect to assume operation of Bureau-funded schools
with the assistance under this part and submit applications
(which are approved by their tribal governing bodies) to the
Secretary for such grants.
``(2) Deposit of funds.--Grants provided under this part shall
be deposited into the general operating fund of the tribally
controlled school with respect to which the grant is made.
``(3) Use of funds.--
``(A) In general.--Except as otherwise provided in this
paragraph, grants provided under this part shall be used to
defray, at the discretion of the school board of the tribally
controlled school with respect to which the grant is provided,
any expenditures for education related activities for which any
funds that compose the grant may be used under the laws
described in section 5205(a), including expenditures for--
``(i) school operations, academic, educational,
residential, guidance and counseling, and administrative
purposes; and
``(ii) support services for the school, including
transportation.
``(B) Exception.--Grants provided under this part may, at
the discretion of the school board of the tribally controlled
school with respect to which such grant is provided, be used to
defray operations and maintenance expenditures for the school
if any funds for the operation and maintenance of the school
are allocated to the school under the provisions of any of the
laws described in section 5205(a).
``(b) Limitations.--
``(1) One grant per tribe or organization per fiscal year.--Not
more than one grant may be provided under this part with respect to
any Indian tribe or tribal organization for any fiscal year.
``(2) Nonsectarian use.--Funds provided under any grant made
under this part may not be used in connection with religious
worship or sectarian instruction.
``(3) Administrative costs limitation.--Funds provided under
any grant under this part may not be expended for administrative
costs (as defined in section 1128(h)(1) of the Education Amendments
of 1978) in excess of the amount generated for such costs under
section 1128 of such Act.
``(c) Limitation on Transfer of Funds Among 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 as
a Bureau-operated school or as a school operated under contract
under the Indian Self-Determination and Education Assistance Act.
``(3) Transfer of equipment and materials.--Except as otherwise
determined by the Secretary, the tribe or tribal organization
operating the program to be retroceded must transfer to the
Secretary (or to the tribe or tribal organization which will
operate the program as a contract school) the existing equipment
and materials which were acquired--
``(A) with assistance under this part; or
``(B) upon assumption of operation of the program under
this part, if the school was a Bureau-funded school under title
XI of the Education Amendments of 1978 before receiving
assistance under this part.
``(g) Prohibition of Termination for Administrative Convenience.--
Grants provided under this part may not be terminated, modified,
suspended, or reduced solely for the convenience of the administering
agency.
``SEC. 5204. COMPOSITION OF GRANTS.
``(a) In General.--The grant provided under this part to an Indian
tribe or tribal organization for any fiscal year shall consist of--
``(1) the total amount of funds allocated for such fiscal year
under sections 1127 and 1128 of the Education Amendments of 1978
with respect to the tribally controlled schools eligible for
assistance under this part which are operated by such Indian tribe
or tribal organization, including, but not limited to, funds
provided under such sections, or under any other provision of law,
for transportation costs;
``(2) to the extent requested by such Indian tribe or tribal
organization, the total amount of funds provided from operations
and maintenance accounts and, notwithstanding section 105 of the
Indian Self-Determination Act, or any other provision of law, other
facilities accounts for such schools for such fiscal year
(including but not limited to those referenced under section
1126(d) of the Education Amendments of 1978 or any other law); and
``(3) the total amount of funds that are allocated to such
schools for such fiscal year under--
``(A) title I of the Elementary and Secondary Education Act
of 1965;
``(B) the Individuals with Disabilities Education Act; and
``(C) any other Federal education law, that are allocated
to such schools for such fiscal year.
``(b) Special Rules.--
``(1) In general.--
``(A) Applicability of certain laws.--Funds allocated to a
tribally controlled school by reason of paragraph (1) or (2) of
subsection (a) shall be subject to the provisions of this part
and shall not be subject to any additional restriction,
priority, or limitation that is imposed by the Bureau with
respect to funds provided under--
``(i) title I of the Elementary and Secondary Education
Act of 1965;
``(ii) the Individuals with Disabilities Education Act;
or
``(iii) any Federal education law other than title XI
of the Education Amendments of 1978.
``(B) Applicability of bureau provisions.--Indian tribes
and tribal organizations to which grants are provided under
this part, and tribally controlled schools for which such
grants are provided, shall not be subject to any requirements,
obligations, restrictions, or limitations imposed by the Bureau
that would otherwise apply solely by reason of the receipt of
funds provided under any law referred to in clause (i), (ii),
or (iii) of subparagraph (A).
``(2) Schools considered contract schools.--Tribally controlled
schools for which grants are provided under this part shall be
treated as contract schools for the purposes of allocation of funds
under sections 1126(e), 1127, and 1128 of the Education Amendments
of 1978.
``(3) Schools considered bureau schools.--Tribally controlled
schools for which grants are provided under this chapter shall be
treated as Bureau schools for the purposes of allocation of funds
provided under--
``(A) title I of the Elementary and Secondary Education Act
of 1965;
``(B) the Individuals with Disabilities Education Act; and
``(C) any other Federal education law, that are distributed
through the Bureau.
``(4) Accounts; use of certain funds.--
``(A) Separate account.--
``(i) In general.--Notwithstanding section 5204(a)(2),
with respect to funds from facilities improvement and
repair, alteration and renovation (major or minor), health
and safety, or new construction accounts included in the
grant provided under section 5204(a), the grant recipient
shall maintain a separate account for such funds.
``(ii) Submission of accounting.--At the end of the
period designated for the work covered by the funds
received, the grant recipient shall submit to the Secretary
a separate accounting of the work done and the funds
expended.
``(iii) Use of funds.--Funds received from those
accounts may only be used for the purpose for which the
funds were appropriated and for the work encompassed by the
application or submission for which the funds were
received.
``(iv) Completion of project.--Upon completion of a
project for which a separate account is established under
this paragraph, the portion of the grant related to such
project may be closed out upon agreement by the grantee and
the Secretary.
``(B) Requirements for projects.--
``(i) Regulatory requirements.--With respect to a grant
to a tribally controlled school under this part for new
construction or facilities improvements and repair in
excess of $100,000, such grant shall be subject to the
Administrative and Audit Requirements and Cost Principles
for Assistance Programs contained in part 12 of title 43,
Code of Federal Regulations.
``(ii) Exception.--Notwithstanding clause (i), grants
described in such clause shall not be subject to section
12.61 of title 43, Code of Federal Regulations. The
Secretary and the grantee shall negotiate and determine a
schedule of payments for the work to be performed.
``(iii) Applications.--In considering applications for
a grant described in clause (i), the Secretary shall
consider whether the Indian tribe or tribal organization
involved would be deficient in ensuring that the
construction projects under the proposed grant conform to
applicable building standards and codes and Federal,
tribal, or State health and safety standards as required
under section 1124 of the Education Amendments of 1978 (25
U.S.C. 2005(a)) with respect to organizational and
financial management capabilities.
``(iv) Disputes.--Any disputes between the Secretary
and any grantee concerning a grant described in clause (i)
shall be subject to the dispute provisions contained in
section 5209(e).
``(C) New construction.--Notwithstanding subparagraph (A),
a school receiving a grant under this part for facilities
improvement and repair may use such grant funds for new
construction if the tribal governing body or tribal
organization that submits the application for the grant
provides funding for the new construction equal to at least 25
percent of the total cost of such new construction.
``(D) Period.--In a case in which the appropriations
measure under which the funds described in subparagraph (A) are
made available or the application submitted for the funds does
not stipulate a period for the work covered by the funds, the
Secretary and the grant recipient shall consult and determine
such a period prior to the transfer of the funds. A period so
determined may be extended upon mutual agreement of the
Secretary and the grant recipient.
``(5) Enforcement of request to include funds.--
``(A) In general.--If the Secretary fails to carry out a
request filed by an Indian tribe or tribal organization to
include in such tribe or organization's grant under this part
the funds described in subsection (a)(2) within 180 days after
the filing of the request, the Secretary shall--
``(i) be deemed to have approved such request; and
``(ii) immediately upon the expiration of such 180-day
period amend the grant accordingly.
``(B) Rights.--A tribe or organization described in
subparagraph (A) may enforce its rights under subsection (a)(2)
and this paragraph, including rights relating to any denial or
failure to act on such tribe's or organization's request,
pursuant to the dispute authority described in section 5209(e).
``SEC. 5205. ELIGIBILITY FOR GRANTS.
``(a) Rules.--
``(1) In general.--A tribally controlled school is eligible for
assistance under this part if the school--
``(A) on April 28, 1988, was a contract school under title
XI of the Education Amendments of 1978 and the tribe or tribal
organization operating the school submits to the Secretary a
written notice of election to receive a grant under this part;
``(B) was a Bureau-operated school under title XI of the
Education Amendments of 1978 and has met the requirements of
subsection (b);
``(C) is a school for which the Bureau has not provided
funds, but which has met the requirements of subsection (c); or
``(D) is a school with respect to which an election has
been made under paragraph (2) and which has met the
requirements of subsection (b).
``(2) New schools.--Any application which has been submitted
under the Indian Self-Determination and Education Assistance Act by
an Indian tribe for a school which is not in operation on the date
of enactment of the Native American Education Improvement Act of
2001 shall be reviewed under the guidelines and regulations for
applications submitted under the Indian Self-Determination and
Education Assistance Act that were in effect at the time the
application was submitted, unless the Indian tribe or tribal
organization elects to have the application reviewed under the
provisions of subsection (b).
``(b) Additional Requirements for Bureau-Funded Schools and Certain
Electing Schools.--
``(1) Bureau-funded schools.--A school that was a Bureau-funded
school under title XI of the Education Amendments of 1978 on the
date of enactment of the Native American Education Improvement Act
of 2001 and any school with respect to which an election is made
under subsection (a)(2), meets the requirements of this subsection
if--
``(A) the Indian tribe or tribal organization that
operates, or desires to operate, the school submits to the
Secretary an application requesting that the Secretary--
``(i) transfer operation of the school to the Indian
tribe or tribal organization, if the Indian tribe or tribal
organization is not already operating the school; and
``(ii) make a determination as to whether the school is
eligible for assistance under this part; and
``(B) the Secretary makes a determination that the school
is eligible for assistance under this part.
``(2) Certain electing schools.--
``(A) In general.--By not later than the date that is 120
days after the date on which an application is submitted to the
Secretary under paragraph (1)(A), the Secretary shall
determine--
``(i) in the case of a school which is not being
operated by the Indian tribe or tribal organization,
whether to transfer operation of the school to the Indian
tribe or tribal organization; and
``(ii) whether the school is eligible for assistance
under this part.
``(B) Other determinations.--In considering applications
submitted under paragraph (1)(A), the Secretary--
``(i) shall transfer operation of the school to the
Indian tribe or tribal organization, if the tribe or tribal
organization is not already operating the school; and
``(ii) shall determine that the school is eligible for
assistance under this part, unless the Secretary finds by
clear and convincing evidence that the services to be
provided by the Indian tribe or tribal organization will be
deleterious to the welfare of the Indians served by the
school.
``(C) Considerations.--In considering applications
submitted under paragraph (1)(A), the Secretary shall consider
whether the Indian tribe or tribal organization would be
deficient in operating the school with respect to--
``(i) equipment;
``(ii) bookkeeping and accounting procedures;
``(iii) ability to adequately manage a school; or
``(iv) adequately trained personnel.
``(c) Additional Requirements for a School Which Is Not a Bureau-
Funded School.--
``(1) In general.--A school which is not a Bureau-funded school
under title XI of the Education Amendments of 1978 meets the
requirements of this subsection if--
``(A) the Indian tribe or tribal organization that
operates, or desires to operate, the school submits to the
Secretary an application requesting a determination by the
Secretary as to whether the school is eligible for assistance
under this part; and
``(B) the Secretary makes a determination that a school is
eligible for assistance under this part.
``(2) Deadline for determination by secretary.--
``(A) In general.--By not later than the date that is 180
days after the date on which an application is submitted to the
Secretary under paragraph (1)(A), the Secretary shall determine
whether the school is eligible for assistance under this part.
``(B) Considerations.--In making the determination under
subparagraph (A), the Secretary shall give equal consideration
to each of the following factors:
``(i) With respect to the applicant's proposal--
``(I) the adequacy of facilities or the potential
to obtain or provide adequate facilities;
``(II) geographic and demographic factors in the
affected areas;
``(III) adequacy of the applicant's program plans;
``(IV) geographic proximity of comparable public
education; and
``(V) the needs as expressed by all affected
parties, including but not limited to students,
families, tribal governments at both the central and
local levels, and school organizations.
``(ii) With respect to all education services already
available--
``(I) geographic and demographic factors in the
affected areas;
``(II) adequacy and comparability of programs
already available;
``(III) consistency of available programs with
tribal education codes or tribal legislation on
education; and
``(IV) the history and success of these services
for the proposed population to be served, as determined
from all factors including, if relevant, standardized
examination performance.
``(C) Geographic proximity.--The Secretary may not make a
determination under this paragraph that is primarily based upon
the geographic proximity of comparable public education.
``(D) Other information.--Applications submitted under
paragraph (1)(A) shall include information on the factors
described in subparagraph (B)(i), but the applicant may also
provide the Secretary such information relative to the factors
described in subparagraph (B)(ii) as the applicant considers
appropriate.
``(E) Deadline.--If the Secretary fails to make a
determination under subparagraph (A) with respect to an
application within 180 days after the date on which the
Secretary received the application, the Secretary shall be
treated as having made a determination that the tribally
controlled school is eligible for assistance under the title
and the grant shall become effective 18 months after the date
on which the Secretary received the application, or on an
earlier date, at the Secretary's discretion.
``(d) Filing of Applications and Reports.--
``(1) In general.--All applications and reports submitted to
the Secretary under this part, and any amendments to such
applications or reports, shall be filed with the education line
officer designated by the Director of the Office of Indian
Education Programs of the Bureau of Indian Affairs. The date on
which such filing occurs shall, for purposes of this part, be
treated as the date on which the application or amendment was
submitted to the Secretary.
``(2) Supporting documentation.--Any application that is
submitted under this chapter shall be accompanied by a document
indicating the action taken by the tribal governing body in
authorizing such application.
``(e) Effective Date for Approved Applications.--Except as provided
by subsection (c)(2)(E), a grant provided under this part, and any
transfer of the operation of a Bureau school made under subsection (b),
shall become effective beginning the academic year succeeding the
fiscal year in which the application for the grant or transfer is made,
or at an earlier date determined by the Secretary.
``(f) Denial of Applications.--
``(1) In general.--Whenever the Secretary refuses to approve a
grant under this chapter, to transfer operation of a Bureau school
under subsection (b), or determines that a school is not eligible
for assistance under this part, the Secretary shall--
``(A) state the objections in writing to the tribe or
tribal organization within the allotted time;
``(B) provide assistance to the tribe or tribal
organization to overcome all stated objections;
``(C) at the request of the tribe or tribal organization,
provide the tribe or tribal organization a hearing on the
record under the same rules and regulations that apply under
the Indian Self-Determination and Education Assistance Act; and
``(D) provide an opportunity to appeal the objection
raised.
``(2) Timeline for reconsideration of amended applications.--
The Secretary shall reconsider any amended application submitted
under this part within 60 days after the amended application is
submitted to the Secretary.
``(g) Report.--The Bureau shall submit an annual report to the
Congress on all applications received, and actions taken (including the
costs associated with such actions), under this section at the same
time that the President is required to submit to Congress the budget
under section 1105 of title 31, United States Code.
``SEC. 5206. DURATION OF ELIGIBILITY DETERMINATION.
``(a) In General.--If the Secretary determines that a tribally
controlled school is eligible for assistance under this part, the
eligibility determination shall remain in effect until the
determination is revoked by the Secretary, and the requirements of
subsection (b) or (c) of section 5205, if applicable, shall be
considered to have been met with respect to such school until the
eligibility determination is revoked by the Secretary.
``(b) Annual Reports.--
``(1) In general.--Each recipient of a grant provided under
this part shall complete an annual report which shall be limited
to--
``(A) an annual financial statement reporting revenue and
expenditures as defined by the cost accounting established by
the grantee;
``(B) an annual financial audit conducted pursuant to the
standards of the Single Audit Act of 1984;
``(C) a biennial compliance audit of the procurement of
personal property during the period for which the report is
being prepared that shall be in compliance with written
procurement standards that are developed by the local school
board;
``(D) an annual submission to the Secretary of the number
of students served and a brief description of programs offered
under the grant; and
``(E) a program evaluation conducted by an impartial
evaluation review team, to be based on the standards
established for purposes of subsection (c)(1)(A)(ii).
``(2) Evaluation review teams.--Where appropriate, other
tribally controlled schools and representatives of tribally
controlled community colleges shall make up members of the
evaluation review teams.
``(3) Evaluations.--In the case of a school which is
accredited, evaluations will be conducted at intervals under the
terms of accreditation.
``(4) Submission of report.--
``(A) To tribal governing body.--Upon completion of the
report required under paragraph (1), the recipient of the grant
shall send (via first class mail, return receipt requested) a
copy of such annual report to the tribal governing body (as
defined in section 1132(f) of the Education Amendments of 1978)
of the tribally controlled school.
``(B) To secretary.--Not later than 30 days after receiving
written confirmation that the tribal governing body has
received the report sent pursuant to subparagraph (A), the
recipient of the grant shall send a copy of the report to the
Secretary.
``(c) Revocation of Eligibility.--
``(1) Determination of eligibility for assistance.--The
Secretary shall not revoke a determination that a school is
eligible for assistance under this part if--
``(A) the Indian tribe or tribal organization submits the
reports required under subsection (b) with respect to the
school; and
``(B) at least 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 grant recipient) prior
to the date of enactment of the Native American Education
Improvement Act of 2001.
``(II) If the Secretary and a grant recipient other
than a tribal governing body fail to agree on such an
evaluator, the tribal governing body shall choose the
evaluator or perform the evaluation. If the Secretary and a
grant recipient that is a tribal governing body fail to
agree on such an evaluator, subclause (I) shall not apply.
``(III) A positive assessment by an impartial evaluator
under this clause shall not affect the revocation of a
determination of eligibility by the Secretary where such
revocation is based on circumstances that were within the
control of the school board.
``(2) Notice requirements for revocation.--The Secretary shall
not revoke a determination that a school is eligible for assistance
under this part, or reassume control of a school that was a Bureau
school prior to approval of an application submitted under section
5206(b)(1)(A) until the Secretary--
``(A) provides notice to the tribally controlled school and
the tribal governing body (within the meaning of section 1141
of the Education Amendments of 1978) of the tribally controlled
school which states--
``(i) the specific deficiencies that led to the
revocation or resumption determination; and
``(ii) the actions that are needed to remedy such
deficiencies; and
``(B) affords such authority an opportunity to effect the
remedial actions.
``(3) Technical assistance.--The Secretary shall provide such
technical assistance to enable the school and governing body to
carry out such remedial actions.
``(4) Hearing and appeal.--In addition to notice and technical
assistance under this subsection, the Secretary shall provide to
the school and governing body--
``(A) at the request of the school or governing body, a
hearing on the record regarding the revocation or reassumption
determination, to be conducted under the rules and regulations
described in section 5206(f)(1)(C); and
``(B) an opportunity to appeal the decision resulting from
the hearing.
``(d) Applicability of Section Pursuant to Election Under Section
5208(b).--With respect to a tribally controlled school that receives
assistance under this part pursuant to an election made under section
5208(b)--
``(1) subsection (b) of this section shall apply; and
``(2) the Secretary may not revoke eligibility for assistance
under this part except in conformance with subsection (c) of this
section.
``SEC. 5207. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.
``(a) Payments.--
``(1) In general.--Except as otherwise provided in this
subsection, the Secretary shall make payments to grantees under
this part in 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 of the amount
which the grantee was entitled to receive during the preceding
academic year; and
``(B) the second payment, consisting of the remainder to
which the grantee is entitled for the academic year, shall be
made not later than December 1 of each year.
``(2) Excess funding.--In a case in which the amount provided
to a grant recipient under paragraph (1)(A) is in excess of the
amount that the recipient is entitled to receive for the academic
year involved, the recipient shall return to the Secretary such
excess amount not later than 30 days after the final determination
that the school was overpaid pursuant to this section. The amount
returned to the Secretary under this paragraph shall be distributed
equally to all schools in the system.
``(3) Newly funded schools.--For any school for which no
payment under this part was made from Bureau funds in the preceding
academic year, full payment of the amount computed for the first
academic year of eligibility under this part shall be made not
later than December 1 of the academic year.
``(4) Late funding.--With regard to funds for grantees that
become available for obligation on October 1 of the fiscal year for
which such funds are appropriated, the Secretary shall make
payments to grantees not later than December 1 of the fiscal year.
``(5) Applicability of certain title 31 provisions.--The
provisions of chapter 39 of title 31, United States Code, shall
apply to the payments required to be made by paragraphs (1), (3),
and (4).
``(6) Restrictions.--Paragraphs (1), (3), and (4) shall be
subject to any restriction on amounts of payments under this part
that are imposed by a continuing resolution or other Act
appropriating the funds involved.
``(b) Investment of Funds.--
``(1) Treatment of interest and investment income.--
Notwithstanding any other provision of law, any interest or
investment income that accrues to any funds provided under this
part after such funds are paid to the Indian tribe or tribal
organization and before such funds are expended for the purpose for
which such funds were provided under this part shall be the
property of the Indian tribe or tribal organization and shall not
be taken into account by any officer or employee of the Federal
Government in determining whether to provide assistance, or the
amount of assistance, under any provision of Federal law. Such
interest income shall be spent on behalf of the school.
``(2) Permissible investments.--Funds provided under this part
may be invested by the Indian tribe or tribal organization before
such funds are expended for the purposes of this part so long as
such funds are--
``(A) invested by the Indian tribe or tribal organization
only in obligations of the United States, or in obligations or
securities that are guaranteed or insured by the United States,
or mutual (or other) funds registered with the Securities and
Exchange Commission and which only invest in obligations of the
United States, or securities that are guaranteed or insured by
the United States; or
``(B) deposited only into accounts that are insure by and
agency or instrumentality of the United States, or are fully
collateralized to ensure protection of the funds, even in the
event of a bank failure.
``(c) Recoveries.--For the purposes of underrecovery and
overrecovery determinations by any Federal agency for any other funds,
from whatever source derived, funds received under this part shall not
be taken into consideration.
``SEC. 5208. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINATION AND
EDUCATION ASSISTANCE ACT.
``(a) Certain Provisions To Apply to Grants.--The following
provisions of the Indian Self-Determination and Education Assistance
Act (and any subsequent revisions thereto or renumbering thereof),
shall apply to grants provided under this part:
``(1) Section 5(f) (relating to single agency audit).
``(2) Section 6 (relating to criminal activities; penalties).
``(3) Section 7 (relating to wage and labor standards).
``(4) Section 104 (relating to retention of Federal employee
coverage).
``(5) Section 105(f) (relating to Federal property).
``(6) Section 105(k) (relating to access to Federal sources of
supply).
``(7) Section 105(l) (relating to lease of facility used for
administration and delivery of services).
``(8) Section 106(f) (relating to limitation on remedies
relating to cost allowances).
``(9) Section 106(j) (relating to use of funds for matching or
cost participation requirements).
``(10) Section 106(k) (relating to allowable uses of funds).
``(11) Section 108(c) (Model Agreements provisions (1)(a)(5)
(relating to limitations of costs), (1)(a)(7) (relating to records
and monitoring), (1)(a)(8) (relating to property), and (a)(1)(9)
(relating to availability of funds).
``(12) Section 109 (relating to reassumption).
``(13) Section 111 (relating to sovereign immunity and
trusteeship rights unaffected).
``(b) Election for Grant in Lieu of Contract.--
``(1) In general.--Contractors for activities to which this
part applies who have entered into a contract under the Indian
Self-Determination and Education Assistance Act that is in effect
on the date of enactment of the Native American Education
Improvement Act of 2001 may, by giving notice to the Secretary,
elect to have the provisions of this part apply to such activity in
lieu of such contract.
``(2) Effective date of election.--Any election made under
paragraph (1) shall take effect on the first day of July
immediately following the date of such election.
``(3) Exception.--In any case in which the first day of July
immediately following the date of an election under paragraph (1)
is less than 60 days after such election, such election shall not
take effect until the first day of July of year following the year
in which the election is made.
``(c) No Duplication.--No funds may be provided under any contract
entered into under the Indian Self-Determination and Education
Assistance Act to pay any expenses incurred in providing any program or
services if a grant has been made under this part to pay such expenses.
``(d) Transfers and Carryovers.--
``(1) Buildings, equipment, supplies, materials.--A tribe or
tribal organization assuming the operation of--
``(A) a Bureau school with assistance under this part shall
be entitled to the transfer or use of buildings, equipment,
supplies, and materials to the same extent as if it were
contracting under the Indian Self-Determination and Education
Assistance Act; or
``(B) a contract school with assistance under this part
shall be entitled to the transfer or use of buildings,
equipment, supplies, and materials that were used in the
operation of the contract school to the same extent as if it
were contracting under the Indian Self-Determination and
Education Assistance Act.
``(2) Funds.--Any tribe or tribal organization which assumes
operation of a Bureau school with assistance under this part and
any tribe or tribal organization which elects to operate a school
with assistance under this part rather that to continue as a
contract school shall be entitled to any funds which would
carryover from the previous fiscal year as if such school were
operated as a contract school.
``(3) Funding for school improvement.--Any tribe or tribal
organization that assumes operation of a Bureau school or a
contract school with assistance under this part shall be eligible
for funding for the improvement, alteration, replacement, and
repair of facilities to the same extent as a Bureau school.
``(e) Exceptions, Problems, and Disputes.--Any exception or problem
cited in an audit conducted pursuant to section 5206(b)(1), any dispute
regarding a grant authorized to be made pursuant to this part or any
amendment to such grant, and any dispute involving an administrative
cost grant under section 1128 of the Education Amendments of 1978 shall
be administered under the provisions governing such exceptions,
problems, or disputes in the case of contracts under the Indian Self-
Determination and Education Assistance Act. The Equal Access to Justice
Act shall apply to administrative appeals filed after September 8,
1988, by grantees regarding a grant under this part, including an
administrative cost grant.
``SEC. 5209. ROLE OF THE DIRECTOR.
``Applications for grants under this part, and all application
modifications, shall be reviewed and approved by personnel under the
direction and control of the Director of the Office of Indian Education
Programs. Required reports shall be submitted to education personnel
under the direction and control of the Director of such Office.
``SEC. 5210. REGULATIONS.
``The Secretary is authorized to issue regulations relating to the
discharge of duties specifically assigned to the Secretary in this
part. For all other matters relating to the details of planning,
developing, implementing, and evaluating grants under this part, the
Secretary shall not issue regulations.
``SEC. 5211. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT PROGRAM.
``(a) In General.--
``(1) Establishment.--Each school receiving a grant under this
part may establish, at a federally insured financial institution, a
trust fund for the purposes of this section.
``(2) Deposits and use.--The school may provide--
``(A) for deposit into the trust fund, only funds from non-
Federal sources, except that the interest on funds received
from grants provided under this part may be used for that
purpose;
``(B) for deposit into the trust fund, any earnings on
funds deposited in the fund; and
``(C) for the sole use of the school any noncash, in-kind
contributions of real or personal property, which may at any
time be used, sold, or otherwise disposed of.
``(b) Interest.--Interest from the fund established under
subsection (a) may periodically be withdrawn and used, at the
discretion of the school, to defray any expenses associated with the
operation of the school consistent with the purposes of this Act.
``SEC. 5212. DEFINITIONS.
``In this part:
``(1) Bureau.--The term `Bureau' means the Bureau of Indian
Affairs of the Department of the Interior.
``(2) Eligible indian student.--The term `eligible Indian
student' has the meaning given such term in section 1127(f) of the
Education Amendments of 1978.
``(3) Indian.--The term `Indian' means a member of an Indian
tribe, and includes individuals who are eligible for membership in
a tribe, and the child or grandchild of such an individual.
``(4) Indian tribe.--The term `Indian tribe' means any Indian
tribe, band, nation, or other organized group or community,
including an Alaska Native Village Corporation or Regional
Corporation (as defined in or established pursuant to the Alaska
Native Claims Settlement Act), which is recognized as eligible for
the special programs and services provided by the United States to
Indians because of their status as Indians.
``(5) Local educational agency.--The term `local educational
agency' means a public board of education or other public authority
legally constituted within a State for either administrative
control or direction of, or to perform a service function for,
public elementary schools or secondary schools in a city, county,
township, school district, or other political subdivision of a
State or such combination of school districts or counties as are
recognized in a State as an administrative agency for the State's
public elementary schools or secondary schools. Such term includes
any other public institution or agency having administrative
control and direction of a public elementary school or secondary
school.
``(6) Secretary.--The term `Secretary' means the Secretary of
the Interior.
``(7) Tribal governing body.--The term `tribal governing body'
means, with respect to any school that receives assistance under
this Act, the recognized governing body of the Indian tribe
involved.
``(8) Tribal organization.--
``(A) In general.--The term `tribal organization' means--
``(i) the recognized governing body of any Indian
tribe; or
``(ii) any legally established organization of Indians
that--
``(I) is controlled, sanctioned, or chartered by
such governing body or is democratically elected by the
adult members of the Indian community to be served by
such organization; and
``(II) includes the maximum participation of
Indians in all phases of the organization's activities.
``(B) Authorization.--In any case in which a grant is
provided under this part to an organization to provide services
through a tribally controlled school benefiting more than 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, the Turtle
Mountain Band of Chippewa, or the Federal Government for the
recovery of any amounts remaining unpaid under leases entered into
prior to the date of enactment of this Act.
(c) Method of Funding.--Amounts shall be made available by the
Bureau of Indian Affairs to make lease payments under this section in
the same manner as amounts are made available to make payments under
leases entered into by Indian schools under the Indian Self-
Determination and Education Assistance Act (Public Law 93-638).
(d) Operation and Maintenance Funding.--The Bureau of Indian
Affairs shall provide funding for the operation and maintenance of the
facilities and property used by the Ojibwa Indian School under the
lease entered into under subsection (a) so long as such facilities and
property are being used by the School for educational purposes.
SEC. 1045. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.
Section 5404(a) of the Augustus F. Hawkins-Robert T. Stafford
Elementary and Secondary School Improvement Amendments of 1988 (25
U.S.C. 13d-2(a)) is amended--
(1) by striking the matter preceding paragraph (1) and
inserting the following:
``(a) In General.--The Secretary of the Interior shall not
disqualify from continued receipt of general assistance payments from
the Bureau of Indian Affairs an otherwise eligible Indian for whom the
Bureau is making or may make general assistance payments (or exclude
such an individual from continued consideration in determining the
amount of general assistance payments for a household) because the
individual is enrolled (and is making satisfactory progress toward
completion of a program or training that can reasonably be expected to
lead to gainful employment) for at least half-time study or training
in--''; and
(2) by striking paragraph (4), and inserting the following:
``(4) other programs or training approved by the Secretary or
by tribal education, employment or training programs.''.
PART E--HIGHER EDUCATION ACT OF 1965
SEC. 1051. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.
Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et
seq.) is amended--
(1) by striking the title heading and inserting the following:
``TITLE II--TEACHER QUALITY ENHANCEMENT
``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
PARTNERSHIPS'';
(2) by striking ``this title'' each place it appears and
inserting ``this part''; and
(3) by adding at the end the following:
``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY
``SEC. 221. PURPOSE AND PROGRAM AUTHORITY.
``(a) Purpose.--It is the purpose of this part to assist consortia
of public and private entities--
``(1) to carry out programs that prepare prospective teachers
to use advanced technology to prepare all students to meet
challenging State and local academic content and student academic
achievement standards; and
``(2) to improve the ability of institutions of higher
education to carry out such programs.
``(b) Program Authority.--
``(1) In general.--The Secretary is authorized to award grants
to eligible applicants, or enter into contracts or cooperative
agreements with eligible applicants, on a competitive basis in
order to pay for the Federal share of the cost of projects to
develop or redesign teacher preparation programs to enable
prospective teachers to use advanced technology effectively in
their classrooms.
``(2) Period of awards.--The Secretary may award grants, or
enter into contracts or cooperative agreements, under this part for
periods that are not more than 5 years in duration.
``SEC. 222. ELIGIBILITY.
``(a) Eligible Applicants.--In order to receive a grant or enter
into a contract or cooperative agreement under this part, an applicant
shall be a consortium that includes the following:
``(1) At least one institution of higher education that awards
baccalaureate degrees and prepares teachers for their initial entry
into teaching.
``(2) At least one State educational agency or local
educational agency.
``(3) One or more of the following entities:
``(A) An institution of higher education (other than the
institution described in paragraph (1)).
``(B) A school or department of education at an institution
of higher education.
``(C) A school or college of arts and sciences (as defined
in section 201(b)) at an institution of higher education.
``(D) A professional association, foundation, museum,
library, for-profit business, public or private nonprofit
organization, community-based organization, or other entity,
with the capacity to contribute to the technology-related
reform of teacher preparation programs.
``(b) Application Requirements.--In order to receive a grant or
enter into a contract or cooperative agreement under this part, an
eligible applicant shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require. Such application shall include the following:
``(1) A description of the proposed project, including how the
project would--
``(A) ensure that individuals participating in the project
would be prepared to use advanced technology to prepare all
students, including groups of students who are underrepresented
in technology-related fields and groups of students who are
economically disadvantaged, to meet challenging State and local
academic content and student academic achievement standards;
and
``(B) improve the ability of at least one participating
institution of higher education described in section 222(a)(1)
to ensure such preparation.
``(2) A demonstration of--
``(A) the commitment, including the financial commitment,
of each of the members of the consortium for the proposed
project; and
``(B) the active support of the leadership of each
organization that is a member of the consortium for the
proposed project.
``(3) A description of how each member of the consortium will
participate in project activities.
``(4) A description of how the proposed project will be
continued after Federal funds are no longer awarded under this part
for the project.
``(5) A plan for the evaluation of the project, which shall
include benchmarks to monitor progress toward specific project
objectives.
``(c) Matching Requirements.--
``(1) In general.--The Federal share of the cost of any project
funded under this part shall not exceed 50 percent. Except as
provided in paragraph (2), the non-Federal share of the cost of
such project may be provided in cash or in kind, fairly evaluated,
including services.
``(2) Acquisition of equipment.--Not more than 10 percent of
the funds awarded for a project under this part may be used to
acquire equipment, networking capabilities, or infrastructure, and
the non-Federal share of the cost of any such acquisition shall be
provided in cash.
``SEC. 223. USE OF FUNDS.
``(a) Required Uses.--A consortium that receives a grant or enters
into a contract or cooperative agreement under this part shall use
funds made available under this part for--
``(1) a project creating one or more programs that prepare
prospective teachers to use advanced technology to prepare all
students, including groups of students who are underrepresented in
technology-related fields and groups of students who are
economically disadvantaged, to meet challenging State and local
academic content and student academic achievement standards; and
``(2) evaluating the effectiveness of the project.
``(b) Permissible Uses.--The consortium may use funds made
available under this part for a project, described in the application
submitted by the consortium under this part, that carries out the
purpose of this part, such as the following:
``(1) Developing and implementing high-quality teacher
preparation programs that enable educators--
``(A) to learn the full range of resources that can be
accessed through the use of technology;
``(B) to integrate a variety of technologies into curricula
and instruction in order to expand students' knowledge;
``(C) to evaluate educational technologies and their
potential for use in instruction;
``(D) to help students develop their technical skills; and
``(E) to use technology to collect, manage, and analyze
data to improve teaching and decisionmaking.
``(2) Developing alternative teacher development paths that
provide elementary schools and secondary schools with well-
prepared, technology-proficient educators.
``(3) Developing achievement-based standards and assessments
aligned with the standards to measure the capacity of prospective
teachers to use technology effectively in their classrooms.
``(4) Providing technical assistance to entities carrying out
other teacher preparation programs.
``(5) Developing and disseminating resources and information in
order to assist institutions of higher education to prepare
teachers to use technology effectively in their classrooms.
``(6) Subject to section 222(c)(2), acquiring technology
equipment, networking capabilities, infrastructure, software, and
digital curricula to carry out the project.
``SEC. 224. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
such sums as may be necessary for each of fiscal years 2002 and
2003.''.
SEC. 1052. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act or the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), in the
case of a person or entity that was awarded a grant, relating to
preparing tomorrow's teachers to use technology, that was made pursuant
to section 3122 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6832) prior to the date of enactment of this Act, the
Secretary of Education shall continue to provide funds in accordance
with the terms of such award until the date on which the award period
terminates.
PART F--GENERAL EDUCATION PROVISIONS ACT
SEC. 1061. STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, AND
ADMINISTRATION OF CERTAIN PHYSICAL EXAMINATIONS TO
MINORS.
Section 445(b) of the General Education Provisions Act (20 U.S.C.
1232h(b)) is amended--
(1) by striking paragraphs (1) through (7) and inserting the
following new paragraphs:
``(1) political affiliations or beliefs of the student or the
student's parent;
``(2) mental or psychological problems of the student or the
student's family;
``(3) sex behavior or attitudes;
``(4) illegal, anti-social, self-incriminating, or demeaning
behavior;
``(5) critical appraisals of other individuals with whom
respondents have close family relationships;
``(6) legally recognized privileged or analogous relationships,
such as those of lawyers, physicians, and ministers;
``(7) religious practices, affiliations, or beliefs of the
student or student's parent; or
``(8) income (other than that required by law to determine
eligibility for participation in a program or for receiving
financial assistance under such program),'';
(2) by redesignating subsections (c) through (e) as subsections
(d) through (f), respectively; and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Development of Local Policies Concerning Student Privacy,
Parental Access to Information, and Administration of Certain Physical
Examinations to Minors.--
``(1) Development and Adoption of Local Policies.--Except as
provided in subsections (a) and (b), a local educational agency
that receives funds under any applicable program shall develop and
adopt policies, in consultation with parents, regarding the
following:
``(A)(i) The right of a parent of a student to inspect,
upon the request of the parent, a survey created by a third
party before the survey is administered or distributed by a
school to a student; and
``(ii) any applicable procedures for granting a request by
a parent for reasonable access to such survey within a
reasonable period of time after the request is received.
``(B) Arrangements to protect student privacy that are
provided by the agency in the event of the administration or
distribution of a survey to a student containing one or more of
the following items (including the right of a parent of a
student to inspect, upon the request of the parent, any survey
containing one or more of such items):
``(i) Political affiliations or beliefs of the student
or the student's parent.
``(ii) Mental or psychological problems of the student
or the student's family.
``(iii) Sex behavior or attitudes.
``(iv) Illegal, anti-social, self-incriminating, or
demeaning behavior.
``(v) Critical appraisals of other individuals with
whom respondents have close family relationships.
``(vi) Legally recognized privileged or analogous
relationships, such as those of lawyers, physicians, and
ministers.
``(vii) Religious practices, affiliations, or beliefs
of the student or the student's parent.
``(viii) Income (other than that required by law to
determine eligibility for participation in a program or for
receiving financial assistance under such program).
``(C)(i) The right of a parent of a student to inspect,
upon the request of the parent, any instructional material used
as part of the educational curriculum for the student; and
``(ii) any applicable procedures for granting a request by
a parent for reasonable access to instructional material within
a reasonable period of time after the request is received.
``(D) The administration of physical examinations or
screenings that the school or agency may administer to a
student.
``(E) The collection, disclosure, or use of personal
information collected from students for the purpose of
marketing or for selling that information (or otherwise
providing that information to others for that purpose),
including arrangements to protect student privacy that are
provided by the agency in the event of such collection,
disclosure, or use.
``(F)(i) The right of a parent of a student to inspect,
upon the request of the parent, any instrument used in the
collection of personal information under subparagraph (E)
before the instrument is administered or distributed to a
student; and
``(ii) any applicable procedures for granting a request by
a parent for reasonable access to such instrument within a
reasonable period of time after the request is received.
``(2) Parental notification.--
``(A) Notification of policies.--The policies developed by
a local educational agency under paragraph (1) shall provide
for reasonable notice of the adoption or continued use of such
policies directly to the parents of students enrolled in
schools served by that agency. At a minimum, the agency shall--
``(i) provide such notice at least annually, at the
beginning of the school year, and within a reasonable
period of time after any substantive change in such
policies; and
``(ii) offer an opportunity for the parent (and for
purposes of an activity described in subparagraph (C)(i),
in the case of a student of an appropriate age, the
student) to opt the student out of participation in an
activity described in subparagraph (C).
``(B) Notification of specific events.--The local
educational agency shall directly notify the parent of a
student, at least annually at the beginning of the school year,
of the specific or approximate dates during the school year
when activities described in subparagraph (C) are scheduled, or
expected to be scheduled.
``(C) Activities requiring notification.--The following
activities require notification under this paragraph:
``(i) Activities involving the collection, disclosure,
or use of personal information collected from students for
the purpose of marketing or for selling that information
(or otherwise providing that information to others for that
purpose).
``(ii) The administration of any survey containing one
or more items described in clauses (i) through (viii) of
paragraph (1)(B).
``(iii) Any nonemergency, invasive physical examination
or screening that is--
``(I) required as a condition of attendance;
``(II) administered by the school and scheduled by
the school in advance; and
``(III) not necessary to protect the immediate
health and safety of the student, or of other students.
``(3) Existing policies.--A local educational agency need not
develop and adopt new policies if the State educational agency or
local educational agency has in place, on the date of enactment of
the No Child Left Behind Act of 2001, policies covering the
requirements of paragraph (1). The agency shall provide reasonable
notice of such existing policies to parents and guardians of
students, in accordance with paragraph (2).
``(4) Exceptions.--
``(A) Educational products or services.--Paragraph (1)(E)
does not apply to the collection, disclosure, or use of
personal information collected from students for the exclusive
purpose of developing, evaluating, or providing educational
products or services for, or to, students or educational
institutions, such as the following:
``(i) College or other postsecondary education
recruitment, or military recruitment.
``(ii) Book clubs, magazines, and programs providing
access to low-cost literary products.
``(iii) Curriculum and instructional materials used by
elementary schools and secondary schools.
``(iv) Tests and assessments used by elementary schools
and secondary schools to provide cognitive, evaluative,
diagnostic, clinical, aptitude, or achievement information
about students (or to generate other statistically useful
data for the purpose of securing such tests and
assessments) and the subsequent analysis and public release
of the aggregate data from such tests and assessments.
``(v) The sale by students of products or services to
raise funds for school-related or education-related
activities.
``(vi) Student recognition programs.
``(B) State law exception.--The provisions of this
subsection--
``(i) shall not be construed to preempt applicable
provisions of State law that require parental notification;
and
``(ii) do not apply to any physical examination or
screening that is permitted or required by an applicable
State law, including physical examinations or screenings
that are permitted without parental notification.
``(5) General provisions.--
``(A) Rules of construction.--
``(i) This section does not supersede section 444.
``(ii) Paragraph (1)(D) does not apply to a survey
administered to a student in accordance with the
Individuals with Disabilities Education Act (20 U.S.C. 1400
et seq.).
``(B) Student rights.--The rights provided to parents under
this section transfer to the student when the student turns 18
years old, or is an emancipated minor (under an applicable
State law) at any age.
``(C) Information activities.--The Secretary shall annually
inform each State educational agency and each local educational
agency of the educational agency's obligations under this
section and section 444.
``(D) Funding.--A State educational agency or local
educational agency may use funds provided under part A of title
V of the Elementary and Secondary Education Act of 1965 to
enhance parental involvement in areas affecting the in-school
privacy of students.
``(6) Definitions.--As used in this subsection:
``(A) Instructional material.--The term `instructional
material' means instructional content that is provided to a
student, regardless of its format, including printed or
representational materials, audio-visual materials, and
materials in electronic or digital formats (such as materials
accessible through the Internet). The term does not include
academic tests or academic assessments.
``(B) Invasive physical examination.--The term `invasive
physical examination' means any medical examination that
involves the exposure of private body parts, or any act during
such examination that includes incision, insertion, or
injection into the body, but does not include a hearing,
vision, or scoliosis screening.
``(C) Local educational agency.--The term `local
educational agency' means an elementary school, secondary
school, school district, or local board of education that is
the recipient of funds under an applicable program, but does
not include a postsecondary institution.
``(D) Parent.--The term `parent' includes a legal guardian
or other person standing in loco parentis (such as a
grandparent or stepparent with whom the child lives, or a
person who is legally responsible for the welfare of the
child).
``(E) Personal information.--The term `personal
information' means individually identifiable information
including--
``(i) a student or parent's first and last name;
``(ii) a home or other physical address (including
street name and the name of the city or town);
``(iii) a telephone number; or
``(iv) a Social Security identification number.
``(F) Student.--The term `student' means any elementary
school or secondary school student.
``(G) Survey.--The term `survey' includes an evaluation.''.
SEC. 1062. TECHNICAL CORRECTIONS.
The General Education Provisions Act (20 U.S.C. 1221 et seq.) is
amended as follows:
(1) Section 431.--Section 422 (the second place it appears) (20
U.S.C. 1231a), relating to collection and dissemination of
information, is redesignated as section 431.
(2) Section 441.--Section 3501(c) of the Augustus F. Hawkins-
Robert T. Stafford Elementary and Secondary School Improvement
Amendments of 1988 (102 Stat. 357) is amended by striking ``through
`such Act)''' and inserting ``through `Act of 1965''', effective as
of the date of enactment of that law.
(3) Section 444.--Section 444 (20 U.S.C. 1232g) is amended--
(A) in subsection (a)(1), by moving subparagraph (B) four
ems to the left;
(B) in subsection (b)(1)(J), by moving subparagraph (J)(i)
and clause (ii) of subparagraph (J) each two ems to the left;
(C) in the undesignated text following subsection
(b)(1)(J)(ii), by striking ``clause (E)'' and inserting
``subparagraph (E)''; and
(D) in subsection (b), by moving paragraph (7)(A) and
subparagraph (B) of paragraph (7) each two ems to the left.
(4) Section 447.--Section 447(b) (20 U.S.C. 1232j(b)) is
amended by striking ``et seq.''.
(5) Section 475.--Section 475(b)(2) (20 U.S.C. 1235d) is
amended by striking ``section 4703(3)'' and inserting ``section
473(3)''.
(6) Section 477.--Section 477 (20 U.S.C. 1235f) is amended by
striking ``section 4702'' and inserting ``472''.
PART G--MISCELLANEOUS OTHER STATUTES
SEC. 1071. TITLE 5 OF THE UNITED STATES CODE.
(a) Compensation.--Section 5314 of title 5, United States Code, is
amended by adding at the end the following:
``Under Secretary of Education''.
(b) Effective Date.--This section shall take effect on the first
day of the first pay period on or after the date of enactment of this
Act.
SEC. 1072. DEPARTMENT OF EDUCATION ORGANIZATION ACT.
(a) Coordinator for the Outlying Areas.--Title II of the Department
of Education Organization Act (20 U.S.C. 3411 et seq.) is amended by
adding at the end the following new section:
``coordinator for the outlying areas
``Sec. 220. (a) Establishment.--The Secretary shall designate an
office of the Department to coordinate the activities of the Department
as they relate to the outlying areas.
``(b) Appointment.--Not later than 90 days after the date of
enactment of the No Child Left Behind Act of 2001, the head of the
office designated under subsection (a) shall appoint a coordinator for
the outlying areas, who shall be a person with substantial experience
in the operation of Federal programs in the outlying areas.
``(c) Duties.--The coordinator for the outlying areas shall--
``(1) serve as the principal advisor to the Department on
Federal matters affecting the outlying areas;
``(2) evaluate, on a periodic basis, the needs of education
programs in the outlying areas;
``(3) assist with the coordination of programs that serve the
outlying areas; and
``(4) provide guidance to programs within the Department that
serve the outlying areas.
``(d) Outlying Areas Defined.--As used in this section, the term
`outlying areas' includes Guam, the Virgin Islands, American Samoa, and
the Commonwealth of the Northern Marianas Islands, but does not include
the freely associated states of the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau.''.
(b) Renaming of Office.--The Department of Education Organization
Act (20 U.S.C. 3401 et seq.) is amended by striking ``Office of
Bilingual Education and Minority Languages Affairs'' and ``Office of
Bilingual Education'' each place either such term appears and inserting
``Office of English Language Acquisition, Language Enhancement, and
Academic Achievement for Limited English Proficient Students''.
(c) Clerical Amendments.--The Department of Education Organization
Act (20 U.S.C. 3401 et seq.) is amended as follows:
(1) Table of contents.--The table of contents in section 1 (20
U.S.C. 3401 note) is amended--
(A) by amending the item relating to section 209 to read as
follows:
``Sec. 209. Office of English Language Acquisition, Language
Enhancement, and Academic Achievement for Limited English
Proficient Students.'';
(B) by amending the item relating to section 216 to read as
follows:
``Sec. 216. Office of English Language Acquisition, Language
Enhancement, and Academic Achievement for Limited English
Proficient Students.''; and
(C) by inserting after the item relating to section 217 the
following new items:
``Sec. 218. Office of Educational Technology.
``Sec. 219. Liaison for Proprietary Institutions of Higher Education.
``Sec. 220. Coordinator for the Outlying Areas.''.
(2) Section headings.--
(A) Section 209.--The section heading for section 209 of
the Department of Education Organization Act (20 U.S.C. 3420)
is amended to read as follows:
``office of english language acquisition, language enhancement, and
academic achievement for limited english proficient students''.
(B) Section 216.--The section heading for section 216 of
the Department of Education Organization Act (20 U.S.C. 3423d)
is amended to read as follows:
``SEC. 216. OFFICE OF ENGLISH LANGUAGE ACQUISITION, LANGUAGE
ENHANCEMENT, AND ACADEMIC ACHIEVEMENT FOR LIMITED ENGLISH
PROFICIENT STUDENTS.''.
(d) Conforming amendments.--Sections 209 and 216 of the Department
of Education Organization Act (20 U.S.C. 3420, 3423d) are amended by
striking ``Director of Bilingual Education and Minority Languages
Affairs'' each place such term appears and inserting ``Director of
English Language Acquisition, Language Enhancement, and Academic
Achievement for Limited English Proficient Students''.
(e) Technical Corrections.--
(2) Section 202.--Paragraph (3) of section 202(b) (20 U.S.C.
3412(b)(3)), relating to the Assistant Secretary for Educational
Research and Improvement (as added by section 913(2) of the Goals
2000: Educate America Act (108 Stat. 223)), is redesignated as
paragraph (4).
(3) Section 218.--Section 216 (the second place it appears) (20
U.S.C. 3425), relating to the Office of Educational Technology (as
added by section 233(a) 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. CONTINUATION OF AWARDS.
``(a) In General.--Notwithstanding any other provision of law, from
funds appropriated under subsection (b), the Secretary--
``(1) shall continue to fund any multiyear grant or contract
awarded under section 3141 and parts A and C of title XIII of the
Elementary and Secondary Education Act of 1965 (as such provisions
were in effect on the day preceding the date of enactment of the No
Child Left Behind Act of 2001), for the duration of that multiyear
award in accordance with its terms; and
``(2) may extend, on a year-to-year basis, any multiyear grant
or contract awarded under an authority described in paragraph (1)
that expires after the enactment of the No Child Left Behind Act of
2001, but before the enactment of successor authority to this Act.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year such sums as may be necessary to
carry out subsection (a).''.
SEC. 1075. NATIONAL CHILD PROTECTION ACT OF 1993.
Section 5(9) of the National Child Protection Act of 1993 (42
U.S.C. 5119c(9)) is amended--
(1) in subparagraph (A)(i), by inserting ``(including an
individual who is employed by a school in any capacity, including
as a child care provider, a teacher, or another member of school
personnel)'' before the semicolon at the end; and
(2) in subparagraph (B)(i), by inserting ``(including an
individual who seeks to be employed by a school in any capacity,
including as a child care provider, a teacher, or another member of
school personnel)'' before the semicolon at the end.
SEC. 1076. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Legislative Branch Appropriations Act, 1997.--Section 5(d)(1)
of the Legislative Branch Appropriations Act, 1997 (2 U.S.C. 117b-
2(d)(1)) is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(b) Legislative Branch Appropriations Act, 1987.--Section
104(3)(B)(ii) of the Legislative Branch Appropriations Act, 1987 (as
incorporated by reference in section 101(j) of Public Law 99-500 and
Public Law 99-591) (2 U.S.C. 117e(3)(B)(ii)) is amended by striking
``14101'' and inserting ``9101''.
(c) National Agricultural Research, Extension, and Teaching Policy
Act of 1977.--Section 1417(j)(1)(B) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(j)(1)(B)) is amended--
(1) by striking ``14101(25)'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801(25))''.
(d) Refugee Education Assistance Act of 1980.--Section 101(1) of
the Refugee Education Assistance Act of 1980 (8 U.S.C. 1522 note) is
amended by striking ``14101'' and inserting ``9101''.
(e) Title 10, United States Code.--Section 2194(e)(2) of title 10,
United States Code, is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(f) Toxic Substances Control Act.--
(1) Asbestos.--Paragraphs (7), (9) and (12) of section 202 of
the Toxic Substances Control Act (15 U.S.C. 2642) are amended by
striking ``14101'' and inserting ``9101''.
(2) Radon.--Section 302(1)(A) of the Toxic Substances Control
Act (15 U.S.C. 2662(1)(A)) is amended by striking ``14101'' and
inserting ``9101''.
(g) Higher Education Act of 1965.--Paragraphs (4), (5), (6), (10),
and (14) of section 103 of the Higher Education Act of 1965 (20 U.S.C.
1003) are amended by striking ``14101'' and inserting ``9101''.
(h) General Education Provisions Act.--Section 425(6) of the
General Education Provisions Act (20 U.S.C. 1226c(6)) is amended by
striking ``14701'' and inserting ``9601''.
(i) Individuals with Disabilities Education Act.--Section 613(f) of
the Individuals with Disabilities Education Act (20 U.S.C. 1413(f)) is
amended by striking paragraph (3).
(j) Education Amendments of 1972.--Section 908(2)(B) of the
Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is amended by
striking ``14101'' and inserting ``9101''.
(k) Carl D. Perkins Vocational and Technical Education Act of
1998.--Section 3 of the Carl D. Perkins Vocational and Technical
Education Act of 1998 (20 U.S.C. 2302) is amended--
(1) in paragraph (5)--
(A) by striking ``10306'' and inserting ``5206''; and
(B) by striking ``(20 U.S.C. 8066)'';
(2) in paragraph (8), by striking ``14101'' and inserting
``9101''; and
(3) in paragraphs (16) and (21)--
(A) by striking ``14101'' and inserting ``9101''; and
(B) by striking ``(20 U.S.C. 8801)''.
(l) Education for Economic Security Act.--
(1) Economic security.--Section 3(3) of the Education for
Economic Security Act (20 U.S.C. 3902) is amended--
(A) in paragraph (3), 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) Internal Revenue Code of 1986.--Section 1397E(d)(4)(B) of the
Internal Revenue Code of 1986 is amended by striking ``14101'' and
inserting ``9101''.
(u) Rehabilitation Act of 1973.--
(1) Research.--Section 202(b)(4)(A)(i) of the Rehabilitation
Act of 1973 (29 U.S.C. 762(b)(4)(A)(i)) is amended by striking
``14101'' and inserting ``9101''.
(2) Nondiscrimination.--Section 504(b)(2)(B) of the
Rehabilitation Act of 1973 (29 U.S.C. 794(b)(2)(B)) is amended by
striking ``14101'' and inserting ``9101''.
(v) Family and Medical Leave Act of 1993.--Section 108(a)(1)(A) of
the Family and Medical Leave Act of 1993 (29 U.S.C. 2618(a)(1)(A)) is
amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 2891(12))''.
(w) Workforce Investment Act of 1998.--Paragraphs (23) and (40) of
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)
are amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(x) Safe Drinking Water Act.--Paragraphs (3)(A) and (6) of section
1461 of the Safe Drinking Water Act (42 U.S.C. 300j-21) are amended by
striking ``14101'' and inserting ``9101''.
(y) Civil Rights Act of 1964.--Section 606(2)(B) of the Civil
Rights Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is amended by striking
``14101'' and inserting ``9101''.
(z) Age Discrimination Act of 1975.--Section 309(4)(B)(ii) of the
Age Discrimination Act of 1975 (42 U.S.C. 6107(4)(B)(ii)) is amended by
striking ``14101'' and inserting ``9101''.
(aa) Hazardous and Solid Waste Amendments of 1989.--Section
221(f)(3)(B)(i) of the Hazardous and Solid Waste Amendments of 1984 (42
U.S.C. 6921 note) is amended by striking ``198(a)(7)'' and inserting
``9101''.
(bb) Albert Einstein Distinguished Educator Fellowship Act of
1994.--Paragraphs (1), (2), and (3) of section 514 of the Albert
Einstein Distinguished Educator Fellowship Act of 1994 (42 U.S.C.
7382b) are amended by striking ``14101'' and inserting ``9101''.
(cc) Earthquake Hazards.--Section 2(c)(1)(A) of the Act entitled
``An Act to authorize appropriations for carrying out the Earthquake
Hazards Reduction Act of 1977 for fiscal years 1998 and 1999, and for
other purposes'', approved October 1, 1997 (42 U.S.C. 7704 note) is
amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(dd) State Dependent Care Development Grants Act.--Paragraphs (6)
and (11) of section 670G of the State Dependent Care Development Grants
Act (42 U.S.C. 9877) are amended by striking ``14101'' and inserting
``9101''.
(ee) Community Services Block Grant Act.--Section 682(b)(4) of the
Community Services Block Grant Act (42 U.S.C. 9923(b)(4)) is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(ff) National and Community Service Act of 1990.--Paragraphs (8),
(14), (22), and (28) of section 101 of the National and Community
Service Act of 1990 (42 U.S.C. 12511) are amended by striking ``14101''
and inserting ``9101''.
(gg) Telecommunications Act of 1996.--Section 706(c)(2) of the
Telecommunications Act of 1996 (47 U.S.C. 157 note) is amended--
(1) by striking ``paragraphs (14) and (25), respectively, of
section 14101'' and inserting ``section 9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(hh) Communications Act of 1934.--Section 254(h)(7)(A) of the
Communications Act of 1934 (47 U.S.C. 254(h)(7)(A)) is amended--
(1) by striking ``paragraphs (14) and (25), respectively, of
section 14101'' and inserting ``section 9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(ii) Transportation Equity Act for the 21st Century.--Section 4024
of the Transportation Equity Act for the 21st Century (49 U.S.C. 31136
note) is amended by striking ``14101'' and inserting ``9101''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.